Professional Documents
Culture Documents
Colliers Solar Energy Network AZ
Colliers Solar Energy Network AZ
NETWORK
PA RT N E R S F O R C H A N G E
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Contents
1 Solar Energy Network
2 Arizona Governor Jan Brewer
3 A Solar City - A Green City | Mayor Phil Gordon - City of Phoenix
4 Solar Power: A Chance to Shine on Arizona’s Economy | GPEC
5 Senate Bill 1403
6 Arizona Corporation Commission
7 Adding Roof-Top Solar Energy is Becoming More Affordable | APS
8 The Future of Solar Looks Bright | SRP
10 Solar Energy on the Rise | TEP
11 Arizona Solar Projects
12 Entrepreneurship Driven Innovation | Science Foundation of Arizona
14 Arizona Economic Resource Organization
15 The University of Arizona
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16 Arizona is Poised to Become the Global Leader in Solar Energy | ASU
18
17 Northern Arizona University
18 Solar Research at Arizona State University
20 Arizona Institute for Renewable Energy | ASU
21 TÜV Rheinland Photovoltaic Testing Laboratory
22 Arizona Solar Energy Association is on the Move
24 Why We Need to Support the Creation of a Viable
Commercial Solar Energy Sector in Arizona | CarbonFree
26 Solon Corporation
27 Partnering for a Bright Future | BrightSource Energy
28 Economic Impact on Arizona | Global Solar Energy
30 Solar Energy Collaboration | SolFocus
31 REC Solar - Shining into Arizona
32 About SolarCity
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33 Wilson Electric
34 Arizona Solar Network | Greater Phoenix Map
36 Thank You | Our Contributing External & Internal Experts
Today’s changing
energy needs
require diverse
solutions We are pleased to present Colliers International’s
Solar Energy Network—Partners for Change – a
comprehensive examination of the solar energy
industry by the experts and visionaries who are
playing a critical role in creating a renewable
energy future.
Colliers
International Colliers International would like to extend its
appreciation to our valued partners in both the
Solar Energy public and private sectors who contributed their
expertise to this visionary report.
Network
Matt Fitz-Gerald
TEAM LEADER Colliers International Solar Energy Network
Senior Associate | Office Properties is a highly qualified team of professionals who
specialize in commercial real estate for the
602.222.5178
renewable energy industry.
matt.fitz-gerald@colliers.com
Solar Energy Network provides integrated real
estate solutions, including the sale and leasing of
industrial and office properties, land acquisition,
Tom Knaub, SIOR, CCIM property management, mortgage banking, market
Senior Vice President | Industrial Properties research, valuation and appraisal.
602.222.5036
tom.knaub@colliers.com Our experts assist solar energy companies in
navigating through the complexities of solar
initiatives, policies, regulations and real estate
John Finnegan transactions in the state of Arizona. With our
Senior Vice President | LandSource Group in-depth knowledge of federal, state and local
602.222.5152 incentives, legislation, market conditions and
renewable energy industry requirements, we are
john.finnegan@colliers.com
well positioned to help you achieve your strategic
real estate objectives.
Kevin Lange
Senior Associate | Office Properties Colliers International’s global platform allows us
602.222.5160 to assist you with multiple locations or multi-
national projects through full service solutions
kevin.lange@colliers.com
offered in more than 60 countries.
Arizona has a long history
Governor Jan Brewer
of providing a balanced
set of traditional resources to procure and deploy one megawatt of new solar
to generate electricity installations on our state’s public buildings by 2010. The
including nuclear, coal, first system to be installed will be a photovoltaic (solar
natural gas and hydro. We have the largest nuclear electric) system on the south wing of the Executive
power plant in the United States. Our tribal nations Tower at 1700 West Washington Street in Phoenix.
have large coal reserves, and our hydroelectric dams are This system will symbolize that Arizona means business
the foundation upon which our state was built. However, when it comes to solar energy.
over the past several years we have seen prices for our
traditional fuel resources grow more volatile. I am also directing the Department of Commerce to use
American Recovery and Reinvestment Act funding to
Since before statehood, Arizona has provided leadership establish a grant program to demonstrate commercially
in fostering solar energy research, development, viable renewable energy and energy efficient products
manufacturing and deployment for the benefit not only manufactured in Arizona. We will also establish a
of the people and the economy of Arizona, but the Revolving Energy Loan Fund to provide low-interest
nation and the world. Since the 1800s, Arizona has loans for commercial businesses, farmers and ranchers
utilized solar for heating and pumping water, and tested who wish to become more energy efficient or utilize
and certified solar products and new solar technologies. renewable energy systems.
In 1990, Arizona created a statewide energy policy that
led to the establishment of a utility portfolio standard at By focusing these monies on renewable energy
the Arizona Corporation Commission. More recently, innovation, solar installation, and energy efficiency,
Arizona enacted numerous solar tax incentive programs Arizona will continue to lead the nation in the
for both business owners and residents. development and implementation of products that
move the State of Arizona toward energy independence.
Arizona has many unique renewable energy attributes, By continuing to foster a solar industry that will someday
with solar energy being our most abundant. Arizona’s become an economic force of great significance, Arizona
solar resource not only has the potential to help us will diversify its economy, grow green jobs, and better
become more energy independent, but it also has the the environment for the citizens of this great State.
potential to provide enormous opportunity for economic
growth. As we enter a new era in energy, Arizona is I am an early adopter of solar energy – energizing my
working toward developing a strong solar energy industry home with Arizona’s sun since the 1970s. I know our
and infrastructure. State’s potential with renewable energies is great.
In support of this new course, I have directed my Engage in this statewide effort through my
Director of the Arizona Department of Commerce, Arizona Department of Commerce. Please visit
Donald E. Cardon, to focus on growing green jobs in www.azcommerce.com.
Arizona and demonstrating the usefulness of renewable
energies, like solar and wind, in diversifying and
strengthening our state economy. New incentives I have Donald E. Cardon
signed into law allow Arizona to compete globally, be Director of the Arizona Department
more aggressive in attracting foreign direct investment, of Commerce
and secure quality jobs for Arizonans.
I recently traveled to Washington -- and had a face- Convention Center has a 100kW solar photovoltaic
to-face meeting with Energy Secretary Steven Chu. system installed on its roof. The system provides
We talked about the importance of renewable energy power directly into the facility and is designed to
sources -- the importance of freeing ourselves from offset power purchased from the utility.
our dependency on foreign oil – and the jobs that will
come to the city that leads on this issue. 100kW of Soar or photovoltaic power is being
generated through panels on top of two parking shade
I told him that Phoenix would lead – and we’ll do it canopies and the security building of our Pecos Park
with “Green Phoenix” – a 17-point plan which, in & Ride facility. The energy generated for use in the
short, is designed to make Phoenix, America’s first public grid is enough energy for 13-15 Valley homes
Carbon-Neutral City – America’s Greenest City. It is on an annual basis.
a plan that already has the Secretary’s endorsement.
Our Pecos Community Center has a 30kW solar
So what is “Green Phoenix”? It’s comprehensive. It’s photovoltaic system installed on the roof of the
training unemployed workers to rehabilitate distressed gymnasium designed to feed power to the facility and
homes for water and energy efficiency. It’s converting offset utility-purchased power at the site.
public outside illumination to very high-efficiency,
dark skies compliant lighting. The North Gateway Transfer Station has a 7kW
photovoltaic system on the room of the transfer station
It’s expanding our creative recycling private-public and 32 photovoltaic powered lights in the employee
partnership to every residence and business in the City. and visitor parking lot. The system provides power
It’s developing our canal system for recreation and directly into the system.
non-motorized transportation. It’s painting Phoenix
rooftops white, to better reflect the sun and reduce the Soon, we will start powering Phoenix homes and
urban heat-island effect -- and bringing all our public buildings with solar technology from solar power
buildings up to new LEED® retrofit standards. plants and from rooftops. Under this plan, no
homeowner will have to advance a single dime for
The Phoenix City Council adopoted a policy that solar installations.
all new buildings built with bond funds must be built
to basic LEED standards. Our city code has been Further, Phoenix recently issued an RFP to build the
modified to require all new city buildings to realize very first solar power plant in the Valley – on up to
a 50 percent reduction in water use in landscaping, a 1,200 acres of a city landfill.
20 percent reduction in water use in interiors and a 30
percent reduction in overall energy use. Finally, our Green Rail Corridor Demonstration
Project, developed in partnership with Arizona
And “Green Phoenix” is about turning Phoenix into State University’s Institute of Global Sustainability,
a “Solar City.” In the middle of what has always will take a 10-mile stretch of light rail corridor
been known as the Valley of the Sun -- Phoenix will through the heart of the city, a half-mile wide, and
become the City of the Sun. accomplish actual reductions in energy usage and
carbon emissions over time, even while dramatically
Already, the West Building of the Phoenix increasing residential and commercial density.
- Arizona State University is home to the world’s first Facts show the renewable energy field is flourishing.
school of sustainability, as well as renowned solar power Revenues in the worldwide photovoltaic industry
and photovoltaic testing laboratories. surpassed $20 billion in 2008. The current U.S.
administration has identified $43 billion for
“For over 25 years ASU has been a leader in solar energy investment in the American Recovery and
energy, a position we plan to leverage in helping to Reinvestment Act. Navigant Consulting reports that
make Arizona a national leader in the production and one in four U.S. workers will be employed in the
distribution of solar energy in the years ahead,” said Todd renewable energy / energy efficiency industries by
Hardy, the University’s associate
vice president for economic affairs.
reening Greater Phoenix powered by SolarCity encourages re-
Hardy also chairs GPEC’s newable energy companies to expand operations in Greater Phoenix and
positions the region as a hub for “green” industries. Greening Greater Phoe-
Techonomy Leadership Council,
nix powered by SolarCity, launched last year, has already garnered media
a collaborative group that
attention from around the nation and amplified the region’s reputation as
promotes technological
an ideal location for renewable energy companies. For more information:
advances that drive economic
www.greeninggreaterphoenix.org and www.solarcity.com
development in innovation-based
markets. Comprised of GPEC
board directors, industry experts
and regional leaders, Techonomy doggedly looks for 2030. The potential for solar is obvious; Arizona’s
opportunities to thrust Greater Phoenix ahead of the involvement in the industry is just beginning.
competition for solar and renewable energy companies.
In November 2008, German-owned Solon
“ASU has been extremely engaged in deploying a Corporation opened Arizona’s first factory for
full spectrum of academic programs, public private manufacturing photovoltaic equipment. The opening
partnerships, and use-inspired research in all areas of of the 105,000-square-foot facility in Tucson is
sustainability. Given the immense potential that expected to create 200 new jobs by the end of 2009.
COLLIERS INTERNATIONAL | 4
Barry G. Broome
President and CEO
Greater Phoenix Economic Council
SolarCity, a California-based solar design and Arizona is clearly destined to be the nation’s future
installation company, expanded its operations to leader in solar consumption, and GPEC is working
Phoenix—a reflection of consumer demand for solar with its partners statewide to capture the opportunities
in Greater Phoenix. Meanwhile, plans for a wind farm in innovation and manufacturing to ensure the entire
and what would be the world’s largest utility-scale supply chain develops within the state.
concentrated solar plant, are in the works. The first
phase of the wind farm will open by 2010 northwest
Barry G. Broome
of Snowflake with about 30 wind turbines – enough
Greater Phoenix Economic Council
to power nearly 16,000 homes. Two years later Solana
President & CEO
Generating Station, Arizona’s largest solar generation
station, is scheduled for completion. Located in Gila
Bend, Solana will serve up to 70,000 Arizona homes.
Both Solana and the wind farm are financed by
Spanish companies, demonstrating Arizona’s strong
pull in the international market and potential for
additional foreign investment.
OVERVIEW
The Quality Jobs Through Renewable Industries program is designed to stimulate new investments in manufacturing
and headquarter operations of in-state and out-of-state renewable energy companies, including solar, wind, geothermal
and other renewable technologies. It is designed to generate net new revenue to the state. The benefits include:
1. Refundable income tax credit
2. Real and personal property tax reclassification
REQUIREMENTS
Businesses making new investments in manufacturing and/or headquarter operations in Arizona in renewable energy
industries are eligible for the program if they meet the following requirements:
- 51% of new jobs must pay a wage that is equal to or exceeds 125% of the state’s median wage as
determined by the Arizona Department of Commerce.
- Firm must offer health coverage for which the firm pays 80% or more of the premium for the employee
or equivalent for alternative models.
BENEFITS
• Income tax credit up to 10% of qualified capital investment based on job creation to capital investment ratio.
• Tax credit to be taken in equal installments over five years
• Class 6 property tax reclassification, effectively constituting a 70-80% reduction. Period of reclassification
is based on the following:
-If company pays 51% of employees between 125% and 199% of the median state wage on
average, the reclassification would exist for 10 years.
-If company pays 51% of employees at least 200% of the median state wage on average, the
reclassification would exist for 15 years.
Arizona is clearly destined to be the future of the nation’s leader in solar consumption, and GPEC is working with its
partners statewide to capture the opportunities in innovation and manufacturing to ensure the entire supply chain
develops within the state.
Source: GPEC
Since the implementation of the RES, Arizona has In January of 2009, three new Commissioners were
experienced a dramatic upswing in renewable energy welcomed to the Arizona Corporation Commission.
interest and planning for both utility-scale and These Commissioners have publicly recognized the
distributed projects. Notably, in the two years since importance of solar power, Arizona’s tremendous potential
the inception of the RES, Arizona Public Service and the necessity of its continued promotion. Under the
Company has increased its renewable portfolio by Commission’s leadership, solar power will continue to
650 percent and will have over 500 megawatts of play an important role in Arizona’s energy future.
renewable energy serving its customers by 2012.
Similarly, Tucson Electric Power has continued Kristin K. Mayes
to pursue distributed generation opportunities, Chairman of Arizona
announcing a deal with Sun Edison to finance, build, Corporation Commission
install and maintain 15 megawatts of distributed solar
generation over the next five years.
COLLIERS INTERNATIONAL | 6
Barbara D. Lockwood, P.E.
Adding Roof-Top Solar Energy Director of Renewable Energy
Arizona Public Service
Is Becoming More Affordable
With today’s focus on renewable, sustainable incentives (PBI). These PBI contracts can be set for
technologies, the immense potential of solar energy 10, 15 or 20 years.
is (literally) a hot topic, especially here in Arizona
where we enjoy more than 300 days of sunshine each Because of the varied costs, possible energy savings and
year. Converting the sun’s heat and light into energy products available, those interested in adding roof-top
continues to make more sense every day. solar systems are encouraged to do appropriate due-
diligence. Not only should they go to aps.com but
Small solar energy systems—roof-top photovoltaic
systems and solar water heaters—have long been
Businesses can receive a one-time incentive
known as an excellent, environmentally-friendly
way for businesses to help contribute to meeting the check for adding a system or receive yearly
growing energy needs of the state. However, in the production-based incentives (PBI).
past, high up-front installation costs have kept many
from adding one of these systems. also should consider visiting the Arizona Solar Center,
located on the web at www.azsolarcenter.com.
This is changing. Between federal and state tax rebates
and cash incentives from local utilities like APS, roof- It is also important for consumers to understand the
top solar systems are becoming more affordable. The process for receiving cash incentives from their utility.
savings can be as high as 80 percent. (The actual cost Each month APS customers pay a renewable tariff. The
and subsequent discount varies based on the size and first step is to receive a bid from a qualified installer. It
type of system installed.) is recommended that consumers acquire at least three
bids. After receiving the bid, an application is submitted
Currently, APS has more than 10 megawatts of electric to APS. The application reserves funds from the pool of
capacity available from roof-top solar across the state. money collected by APS and must be completed before
Who is producing this solar energy? Along with installing the system. The form must be accompanied
individual residences, the list includes a who’s who of by an itemized estimate of the installation from an
Arizona businesses. Luke Air Force Base, Arizona State Arizona licensed contractor. Installation should not
University and Frito-Lay have all added roof-top solar be performed until written confirmation approving the
to their facilities in the past few years. Another high- request is provided by APS.
profile organization, the Phoenix Suns, announced last
year that they will install their own system.
Barbara Lockwood, P.E.
These companies take part in APS’ Renewable Director of Renewable Energy
Energy Incentive Program. The program offers cash Arizona Public Service
incentives to grid-tied customers who currently receive
electricity from APS. It is approved by the Arizona
Corporation Commission and funded by rate payers.
Businesses can receive a one-time incentive check for
adding a system or receive yearly production-based
SOLAR ENERGY NETWORK 2009 | 7
Lori Singleton
The Future of Solar Looks Bright Manager of Sustainable Initiatives and Technologies
Salt River Project
COLLIERS INTERNATIONAL | 8
importance of clean energy and as they have gained
experience with system design and installations, they
are working to reduce permit fees, fast track solar
permitting, and streamline the process.
Arizona 1 2
Solar
Projects
3 4
COLLIERS INTERNATIONAL | 12
well as resolving the downstream technical and
policy barriers provided an excellent foundation for
shaping this research plan. Five research university
/ industry partnership projects were selected for the
first research plan.
They are:
1. Establish Arizona as the most comprehensive
solar testing and analysis center in the world.
2. Create a process that defines solar’s growing role
in an Arizona electricity grid infrastructure at the
Gigawatt scale.
3. Develop an innovative and cost effective
concentrator photovoltaic system.
4. Design a new generation of thin-film solar cells.
5. Define short-term and long-term Arizona based
storage options.
Bud Annan
Co-Director
Solar Technology Institute
Science Foundation of Arizona
Our nation’s growing dependence on fossil fuels leaves have the potential to generate and store enough
us vulnerable to factors beyond our control, and solar-based energy to power the entire state and
intensifies the greenhouse effect. export enough energy to power the entire country.
The possibilities are astounding.
With more than 300 days a year of sunshine,
everyone knows Arizona is perfectly positioned to There are technological problems that must be solved
take advantage of advances in the development and and economic and policy decisions that must be made
use of solar energy. But our challenge has been to to move forward. Critical technological advances
energize the industry to catch, convert and work with are required to improve solar conversion devices and
our most accessible source of renewable energy. demonstrate storage methods.
The University of Arizona is positioned to be a catalyst As part of the effort with AzRISE to develop pilot-
in this effort. The Arizona Board of Regents, which plant like demonstration projects, we are testing the
oversees all three state universities, has acted with integration of solar energy generation systems with
great foresight in supporting its own Solar Energy adequate energy storage methods. Systems analyses
Initiative. That, in turn, led to the Arizona Research will be developed to design optimized systems that
Institute for Solar Energy (AzRISE) at The University operate at low cost yet produce electricity reliably and
of Arizona and the Solar Power Institute at meet the demand curve. The demonstration projects
Arizona State University. will also examine integrated beneficial land use and
will include agriculture and biofuels fields with solar
These programs are forming public- powered energy efficient buildings.
private partnerships to not only
look at research and development The great value of these demonstration sites comes
but also economic analysis and from many directions including the ability to do real
public policy studies and economics and test predictive economic models for
education for the next generation an integrated generation/storage facility for a central
solar workforce. power plant or for a distributed system, the ability to
examine the actual operation of the integrated systems
The University of Arizona and to test the inter-relationships between generation
began on this path to be the most and storage capacities and learn how this changes with
environmentally sensitive public university in the various weather patterns. The demonstration sites will
nation by embracing the goals of sustainability and be operated by a non-profit consortium directed by The
a clean environment. University of Phoenix, Southwest Solar Technologies
and AzRISE. Partners will be sought among the
The UA started plans with the University of Phoenix utilities, other universities, solar industrial partners
and Southwest Solar Technologies for two demonstration and community partners. A location is being considered
sites for solar energy generation. We have an active in Phoenix and one in Tucson.
Campus Sustainability Program and outstanding
programs in environmental engineering. Our Institute The University of Arizona must lead by example to
for the Study of Planet Earth is unequaled in the increase energy efficiency, adopt renewable energy
nation in its study of climate change. supplies, and explore ways to better utilize solar energy.
Further, the geology of Arizona lends itself to development We are ready to move forward and help propel the
of solar energy far beyond the superior climate. In State of Arizona into the Solar Age.
addition to having almost twice the solar irradiance
level than that of the East Coast, we also have large President Robert N. Shelton
underground salt deposits and regions where large The University of Arizona
differences in elevation exist. The salt basins allow
the formation of large, sealed underground caverns for
the storage of compressed air produced with solar or
wind energy and released at night.
COLLIERS INTERNATIONAL | 20
TÜV Rheinland Photovoltaic Richard Bozicevich
Vice President of Business Development
Testing Laboratory TÜV Rheinland PTL
Solar energy is the cleanest, most abundant, renewable Denny’s restaurant in Tempe, Arizona and agreed to
energy source available. Arizona is leading the way establish a “Photovoltaic Testing Laboratory” (PTL)
to develop this resource to its fullest potential as both at Arizona State University (ASU) with a start date
a key to a sustainable energy future, and an economic of January 1, 1992. The original directions included:
driver for the region. providing a state-of-the-art laboratory equipped
with faculty, staff, and students who could perform
Arizona is now home to the premier performance research related to Photovoltaic (PV) module reliability,
testing and safety certification organization globally durability, and performance and establish the capability
for photovoltaic technology, TÜV Rheinland to perform qualification testing per all relevant
Photovoltaic Testing Laboratory. The TÜV-PTL is national and international standards. This industry and
a collaborative effort from TÜV Rheinland of North academic partnership is a very key part of our strategy
America Holding, and Arizona State University. going forward. Not only do these ties link TÜV
Rheinland to the formation of the solar market in
TÜV Rheinland group, founded in 1872, is a global the United States, but we also truly envision that
provider of safety testing and quality assessment this type of collaborative effort with Arizona State
services for a variety of manufacturing based industries. University will allow our TÜV Rheinland group the
TÜV Rheinland group currently operates in over 60 ability to stay ahead of the technology changes and
counties with more than 13,000 employees. TÜV shifts in a quickly growing energy marketplace.
Rheinland has a long history with photovoltaic
testing and currently operates photovoltaic testing Today, under TÜV Rheinland, the vision of the
laboratories in five major regions across the globe. laboratory is growing to encompass an entire range
of testing for many segments of the energy
Locating to Arizona was an easy choice for TÜV marketplace. As the industry grows, an evolution
Rheinland. We look at three primary elements when of products is taking take place from smart grid and
establishing our business operating units. Business distributed grid controllers, to micro power inverters
to a range of wireless controlled electronics. These
products all support implementation of solar and
alternative power into our everyday lives. In our view,
consistent with TÜV Rheinland philosophy, we feel
it is highly important to service the entire supply value
chain of the energy technology marketplace. In this
fashion we provide the most beneficial service to our
clients while performing our role as a safety and
certification body for the consumers. As we continue
to expand our base of business, we see Arizona as one
of the prime regions to help foster our growth.
he Arizona Solar Energy Association is Our Solar Home Tours have also been strong. We either
alive and well! We’ve accomplished many sponsored or co-sponsored solar home tours in seven different
things in 2008 and 2009, and we have Arizona communities last October and November, and we
great opportunities and are making plans for estimate that over 5,000 people attended. We’re now in the
the future. As a non-profit chapter of the process of planning our fall, 2009 Solar Home Tours.
American Solar Energy Society, our mission
is to educate the public and advocate for We provided information to a large number of people on
solar energy. many fronts. We sent out quarterly newsletters to our
members, which included statewide news on solar as well
Let me give you an overview of what’s been happening as information on jobs in the solar industry and a calendar
recently. Our longstanding seminar series in Scottsdale of events around Arizona. We also e-mailed numerous
and Fountain Hills has continued and is attracting more Solar Flares to our members with up-to-date information
people. They recently covered such topics as installing on solar issues. We had several articles in newspapers,
photovoltaics and energy efficiency in buildings. Tucson such as the Arizona Daily Star and the Green Times. In
has started a new series, with its initial seminar being addition, we appeared on radio and television shows to
an in-depth look at the usefulness and cost of spread the word about solar energy.
photovoltaics. Seminars so far this year have been on
water heating, pool heating and solar cooling. We created one-page double-sided brochures to give to the
COLLIERS INTERNATIONAL | 22
On May 18-22, 2010, the American Solar Energy Society
will be holding its national solar conference and trade
show at the Phoenix Convention Center. ASEA has
coordinated members of the community to serve on the
Local Organizing Committee. Our job will be to set up
workshops and tours for the public as well as host an
outdoor solar demonstration area.
Have the installer visit the site to size the system and
3
give you an estimate.
On March 21, 2009, we hosted our Annual Membership 8 Inspection by the City or County.
Meeting at ASU’s Global Institute of Sustainability.
George Maracas, the Chief Operating Officer of the Solar 9 Inspection by the utility company.
Power Laboratory in GIOS, was our speaker. You can
view his PowerPoint presentation at our webpage listed in Apply for state and federal tax credits after your system
10
the previous paragraph. is operational.
Solar Energy Sector in Arizona PBI rates by as little as $0.03 or $0.04 per kWh will
have the added impact of closing the
CarbonFree Technology is a commercial solar energy project developer, gap, and contributing towards the
whose accomplishments include developing the largest non-utility owned solar development of a viable commercial
PV por tfolio in Arizona (1.7MW at ASU’s Tempe Campus). In 2008, solar sector in Arizona. If the concern
is that utility rates will continue to
CarbonFree was involved with the development of 13 solar projects (totaling rise and eventually create a situation
~ 6 MW) in CA, NJ and AZ having a value of over $40 million. where solar system owners are mak-
ing “excess profits” when the PBI
Background payments are factored in, a simple
formula can be applied whereby the PBI payment
In November 2006, the Arizona Corporation Com- decreases proportionally, for every increase in the cost
mission (ACC) adopted rules to expand the state’s of electricity from the affected utilities.
Renewable Energy Standard (RES) to 15 percent by
2025 with 30 percent of that amount to be derived By incentivizing a solar system owner based on the
from distributed energy (DE) technologies. The DE number of kilowatt-hours a system produces over the
requirement must be derived equally from residential long run, this also encour-
and non-residential sources. To date, most of the ages good system design and
growth in Arizona’s solar energy industry comes insures that the objectives
from residential projects, with some utility-scale of the utility seeking the
(non-distributed) projects being contemplated. One Renewable Energy Certifi-
major difference between residential and commercial cates (RECs) and the solar
(non-residential) solar PV incentives in areas fall- system owner are aligned.
ing under the ACC’s jurisdiction is that residential
systems are given a one-time cash rebate equal to $3 Point #2
per Watt (covering ~40 percent of the system cost) Renewable Energy is the
while large commercial systems receive a Performance new Real Estate.
Based Incentive (PBI) which rewards the solar system
owner with $0.25 per kWh produced by the system The problem: Historically, Lee Feliciano
over a 10-year period, or $0.18 per kWh produced by Arizona has relied on the Executive Vice President
the system over a 20-year period. real estate and construction Lee CarbonFree Technology
Feliciano BIO
industries to drive much of Corporation
Point #1 the state’s economic growth. Lee Feliciano is Executive Vice-Presiden
Increasing the volume of Commercial PV installed in Many of us recognize how project developer with offices in the U.S
Arizona benefits the entire industry. this has exacerbated our called SolEquity, Inc and was responsibl
current situation, and that commercial scale solar installations in th
The problem: In terms of compliance with the tar- many of the unemployed Agreement (SSA). This arrangement all
gets set by the RES, Arizona falls significantly short. workers are skilled trades- power without incurring any up front cap
While residential installations are growing at a healthy expenses.
people who have run out of projects to build.
pace, it is unlikely that we will ever achieve the RES
targets without a viable commercial DE sector. The fix: It is important toSolEquity
understand and CarbonFree merged their
that solar
project development utilizes Since
many2004,
of those resources
Lee has worked in the solar
The fix: A single commercial DE project can be the and can create jobs without marketing roles. He is the
having to subject a regular lecturer
equivalent of hundreds of residential installations. labor force to significant retraining.
Community State andand
College, mu-at Green Build
However, at their current levels, PBI rates are not nicipal policies that affect solar
the installations (includ-
City of Scottsdale Green Building Ad
high enough to encourage large-scale adoption of so- ing permit fees, application reviews, etc.)
Arizona Solar Energy should
Industries Associa
lar energy in the commercial sector. This is due in be revisited to insure that they facilitate rather than
part to the fact that rates for large commercial users discourage the development of Lee is anprojects.
solar alumnus of Solar Energy Intern
can be significantly lower (as much as half, or even and has a BAA in Applied Geography fr
Kellogg
Case in point: When CarbonFree Technology Graduate School
andof Managemen
less) than for residential customers.
its partners developed the largest solar power plant
While the gap between commercial electricity rates and in Arizona which is not utility owned, the project
the cost of electricity from solar is narrowing, raising the utilized the services of structural and electrical engi-
COLLIERS INTERNATIONAL | 24
The photo is of CarbonFree Technology’s first AZ project and the first com-
mercial solar project developed under a Solar Services Agreement in the state
(SSAs are also know as PPAs).It is on top of the Stadium Parking Structure
(aka Parking Structure 5) at ASU, directly south of Sun Devil Stadium.
The array has 731 kiloWatts DC peak generating capacity and features an
elevated single-axis tracker configuration using polycrystalline modules
neers, electricians and steelworkers as well as structuring electricity rates is commonplace in states
ancillary services (e.g., security, equipment rentals, like California, which happens to be the largest solar
etc.), all sourced locally. PV market in the U.S.
Point #3 Keeping the first price tier for both residential and
Our electricity rate structures encourage waste. commercial electricity rates low also addresses the ar-
gument that raising rates will hurt low-income/fixed-
The problem: In Arizona, some large users of income households and/or small businesses. On the
electricity are given little incentive to reduce their large commercial side, this will also encourage utility
consumption. In fact, some large users intentionally customers to view solar as a way to eliminate the most
use more electricity during certain months of the year expensive part of their electric bill, not necessarily
in order to bring their consumption levels to a point 100 percent.
where they get a “volume discount” (i.e., pay a lower
price per kWh once consumption level passes a cer- The above solutions will not cost taxpayers any addi-
tain threshold). tional funds (even the increased PBI rates which would
tap into existing set asides) and will serve to advance
The fix: Rate de-coupling – the concept of separat- the development of the solar energy market (particular-
ing a utility’s revenues from its volume of energy sales ly the commercial sector) in Arizona. This will allow
addresses the conflict that presently exists whereby us to tap into our state’s greatest resource: sunshine.
utilities are asked to promote energy conservation
and renewable energy without any compensation for
lost revenue. This is a concept that has been around
for some time and should probably be revisited.
Arizona possesses the right mix of bountiful As a provider of utility-scale solar power plants,
sun, progressive political leadership, BrightSource Energy is committed to helping
world-class research universities, and Arizona achieve its renewable, environmental and
location to become the hub of the economic goals. In 2008, we opened an office in
nation’s solar industry. Phoenix with the objective of growing Arizona’s
solar economy by providing its citizens with green
Under the guidance of pragmatic yet jobs and clean energy.
visionary political leadership, Arizona
has set an achievable Renewable Energy Many members of the
Standard goal of producing 15 percent of the state’s BrightSource Energy team
energy from renewable sources by 2025. have been pioneering
solar energy for nearly
Solar energy will play a vital role in meeting this three decades. The team
renewable goal. According to a recent report by the combines the technical
Western Governor’s Association, Arizona’s peak and operating leadership
electricity demand could grow by more than 25 from Luz International,
percent by 2015. Solar energy is ideally suited to meet Ltd. -- the first company
this demand because it generates electricity during in the world to build
hours that correlate perfectly with peak usage. commercially viable solar
thermal plants -- with a first
Arizona’s location at the center of the southwest class project development
provides an opportunity to support other growing team that has designed, Brian Rasmussen
solar markets in the region as well. For example, developed, and managed Director of Development
Arizona can be a solar manufacturing center, which more than 20GW of power BrightSource Energy
exports solar products to other states. In addition, projects globally.
its proximity to other states with similar renewable
Building on this heritage,
goals allows for the export and import of solar energy
we have designed our
through planned transmission. The state is blessed
proprietary Luz Power
with the right mix of available land and sun to develop
Tower concentrated solar
enough solar energy to help meet this growing local
thermal system to offer the industry’s highest levels of
and regional demand.
operating efficiencies with the lowest operating costs.
This technology represents a significant evolution
Growth in Arizona’s solar industry will provide its in solar thermal technology and is ideally suited for
citizens with cleaner energy and air quality, thousands meeting Arizona’s clean energy needs.
of new jobs, and billions of dollars in direct investment.
A recent study by Navigant Consulting found that the On behalf of the entire BrightSource Energy team, we
state could be home to more than 15,000 solar industry very much look forward to working with the state’s
jobs by 2016 and reduce cumulative greenhouse gas citizens, regulators, and business and political leaders
emissions by 400,000 tons by 2020. to make Arizona the United States’ solar capital.
(NREL) in Golden, CO. This thin-film technology In addition to the 12 year, $150+
has advantages over competing photovoltaic materials. million investment that GSE
Cost to manufacture thin-film cells can be very has already made in Tucson, the
inexpensive since they require few raw materials and can company currently operates a new
be made with an efficient, scalable roll-to-roll process. 110,000 square-foot manufacturing
CIGS has been established as the most efficient thin facility at 8500 S. Rita Road,
film technology in converting sunlight into electricity. Tucson, employs 180 people in
GSE’s choice of a flexible substrate will enable high technology jobs, and has
applications where more rigid, heavier, or less efficient installed a 750 kilowatt solar field
products cannot compete. This Arizona-based company on six acres adjacent to the plant
currently leads the world in flexible CIGS thin-film – this is the largest CIGS solar
production. field in the world. The presence of
GSE in Tucson has also attracted
GSE came to Tucson in 1996 when Tucson Electric other solar industry companies to
Power founded the company based on the licensed Tucson to efficiently partner with
NREL technology and an initial investment of GSE in their supply chains. Solon
$5 million. Over the next 10 years, TEP and parent America established a 100,000+
company UniSource Energy Corp. invested square foot facility in Tucson,
$80 million on research and development to where it produces high efficiency
commercialize the technology. During this time, GSE solar modules and provides design
COLLIERS INTERNATIONAL | 28
Global Solar Energy is host to one of the largest CIGS Power Fields in the world at its Tucson, AZ facility. This 750
kW DC field contains 6600 CIGS modules and has been in operation since November 2008. The installation has been
estimated to generate 1.1 million kWh of electricity for Global Solar Energy’s manufacturing plant. Over the first months
of operation, the actual field output has exceeded this rate by almost 25%. The Tucson field demonstrates the viability and
availability of CIGS-based utility-scale power generation. The technology required for deployment of the CIGS panels is
now commercially available and consistent with industry standards.
GSE believes that the solar industry belongs in Arizona and can provide
benefits ranging from jobs and economic stimulus to clean energy
generation and energy independence. Just as early pioneers came to
Arizona to mine the natural resources of the state, Arizonans have an
opportunity to build upon the abundant energy resources of the sun.
About CPV
The SolFocus CPV design employs a system of reflective
optics to concentrate sunlight 650 times onto small,
highly efficient solar cells. The SolFocus 1100S uses
approximately 1/1,000th of the active, expensive solar
cell material compared to traditional photovoltaic
panels. In addition, the cells used in SolFocus CPV
systems have over twice the efficiency of traditional
silicon cells. In a solar-rich country like Greece, such
efficiency can accelerate the trajectory for solar energy
to reach cost parity with fossil fuels.
ilson Electric is the largest Arizona efficiencies from advancements in the industry will
based electrical contractor with make solar a standard feature in many buildings.
offices in Tempe, Tucson, Sierra New projects will routinely be designed to take full
Vista and Prescott Valley. advantage of potential areas exposed to the sun, with
the tallest objects moved to the north side of property
The Arizona commercial solar market is and shorter varieties of trees commonly selected for
poised for rapid growth. Political strategic placement. Solar carports will be common
leaders at the Arizona Corporation Commission, sights in parking lots and will likely offer charging
federal government and state government boosted points for electric vehicles. Many tenants will expect
incentive funding for these systems, including the office space with a strong measure of sustainability,
eight year extension of the 30 percent federal solar such as the U.S. Green Building Council’s LEED®
tax credit as a part of the “Bailout Bill” in the fall of Rating System. This need will be increasingly related
2008. Property owners are finding that solar electric to the presence of solar electric systems. Solar electric
systems powered by photovoltaic technology are systems will be an integral component of Arizona’s
financially attractive, with returns twice the cost of growth, helping ensure we have adequate power,
borrowed money. The systems may be installed on independent of foreign nations and harmonious with
rooftops, carports or on excess land. Rooftop systems our environment.
include free-standing and adhered systems, reducing
the risk of roof leaks. Solar carports are particularly Mark Holohan
attractive in deserts climates, especially if parking Solar Division Manager
revenues are added to the savings. Ground based Wilson Electric
systems that track the sun’s movements produce the
most power and boost the returns. Each of these
applications provides tax and utility bill savings, acts
as a hedge against future electric price hikes, and is a
strong symbol of the owner’s commitment to reduce
pollution and conserve fuels.
Wilson Electric is the largest Arizona based electrical contractor
Peering ahead to 2020, declining prices and higher
with offices in Tempe, Tucson, Sierra Vista and Prescott Valley.
?
Airports
Semi Conductor Company
Youngtown
Harquahala Valley:
.?
.
Defense Contractor Lockheed Martin
has partnered with Starwood Energy $
$ Honeywell
202 S 27th St? ?
?
Group Global to create a new solar energy Phoenix, AZ 85034 ?
utility farm.
Litchfield Park Phoenix
?
The farm will sell power to APS.
The project costs $1.5 Billion and will produce
?
290 MW
?
. ?
?
(
Tolleson
?
?
$
$
Port of Los Angeles: 385 Miles ?
? (
7500 Acres
43 Miles of Waterfront Goo
odyear
27 Cargo Terminals Avondale
These terminals handle
Buckeye
190 million metric revenue
tons of cargo annually
COLLIERS INTERNATIONAL | 34
Carefree
ARIZONA SOLAR
Arrizona Solar NETWORK
Network
Alternate Energy Shop
6403 E.
E Dove Valley Rd.
Desert Sun Solar
Cave Creek,
C AZ 85331
111 W. Renee Dr
Phoenix, AZ 85027
Rio Verde
"
Scottsdale, AZ 85250 Miles
ON Semiconductor
? ?
5005 E McDowell
?
0 1 2 3 4 5
?
?
? Phoenix, AZ 85008
?? Paradise Valley
? APS Solar Testing & Research Facility - Star Center
???
1500 E. University Dr., Tempe, AZ
???? . ?
. Technologies under evalution are:
?( .( ?
((
( ((( (((
? 111 S. Main St
?( Florence, AZ 85232
y: ? ( $
($ Gilbert
( ( ?. GreenSun Energy Solutions, LLC
(??
( (( (( ( ( ¿
1000 E. Water Street #7
ege
(( . Tucson, AZ 85719
Phocos USA
y.
? 742 E 46th Street
Tucson, AZ 85713
(
( Global Solar Energy
8500 S. Rita Rd.
( Tucson, AZ 85747 Solon
6950 S. Country Club Rd
Queen Creek
Chandler Tucson, AZ 85756
?
ersity Collaboration:
mance testing & safety
The Solar Store, LLC SunPumps, Inc.
voltaic testing laboratory.
2833 N Country Club Rd 325 E Main Street
TÜV Rheinland of
Tucson, AZ 85716 Safford, AZ 85546
University.
Santan
2390 East Camelback Road, Suite 100 • Phoenix, AZ 85016 - P 602.222.5000 | F 602.222.5001 | www.colliers.com/phoenix
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to our contributors
Governor Jan Brewer of the State of Arizona | Kristin K. Mayes of Arizona Corporation Commission
Barbara D. Lockwood, P.E., of Arizona Public Service | Lori Singleton of Salt River Project
Denise Smith of Tucson Electric Power | Barry G. Broome of GPEC | Bud Annan of Science Foundation of Arizona
Sal Rivera of Arizona Economic Resource Organization | President Robert N. Shelton of The University of Arizona
President Michael M. Crow of Arizona State University | Richard Bozicevich of TÜV Rheinland PTL
George Maracas, Ph.D., of Arizona State University | Stephen Goodnick of Arizona State University
President John D. Haeger of Northern Arizona University | Rob Wanless of Solon Corporation
Brian Rasmussen of BrightSource Energy | Tim Teich of Global Solar Energy | Nancy Hartsoch of SolFocus
Kate Haughey of REC Solar | John Lefebvre of SolarCity | Mark Holohan of Wilson Electric
Emily Bennion of A&R Edleman | Joey Marquart of A&R Edleman | Mary Anne Madge of Gatorade
Rais Ahmed of Gatorade | Kelly Dalton of the Mayor’s Office | Scott Phelps of the Mayor’s Office
Mayor Phil Gordon of the City of Phoenix | Andrea Katsenas of Cox | Greg Lindner of REC Solar, Inc.
Lee Feliciano of CarbonFree Technology | Vivian Harte of ASEA | Patsy Regalado of Finnemore & Craig, P.C.
Chris Camacho of GPEC | Scarlett Spring of GPEC | Rodrick Miller of GPEC | Janet LaBar of GPEC
Judy Bernas of The University of Arizona | Todd Hardy of Arizona State University | Bob Davis of Grubb & Ellis
Birgitte Santaella of Arizona State University | Richard Bowen of Northern Arizona University
Michael Fitz-Gerald of Lender Investor Advisory Network | Jim Beard of SolarCity | Keely Wachs of BrightSource Energy
Mark McIntyre of Global Solar Energy | Giancarlo G. Estrada of Arizona Corporation Commission
Sheila Stoeller of Arizona Corporation Commission | Art McDonald of Tucson Electric Power | Chico Hunter of Salt River Project
Kim Sabow of the Governer’s Office | Sheila Maddox of University of Arizona | Kevin Tyne of the Governor’s Office
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