A safe investment in 2010: Hot water

Though written in 2007, an analysis by RENEW's executive director Michael Vickerman may be even truer today an a few years ago, given the risk involved in "traditional" investments. The analysis shows that an investmnet in a solar hot water system generates a better rate of return than putting money in the bank:

I wrote a column which was highly critical of using payback analysis to figure out whether installing a solar hot water system on one’s house makes economic sense. In almost every example you can imagine, the payback period for today’s solar installations ranges between long and forever. For my system, which started operating in January 2006, payback will be achieved in a mere 19 years using today’s energy prices, though by the time 2025 rolls around, half of Florida might be under water and the rest of the country out of natural gas.

But there’s no reason to let payback length rule one’s ability to invest in sustainable energy for the home or business, especially if there are other approaches to valuing important economic decisions. One way to sidestep the gloomy verdicts of payback analysis is to do what most companies do when contemplating a long-term investment like solar energy -- calculate the internal rate of return (IRR) on the invested capital. The definition of IRR is the annualized effective compounded return rate which can be earned on the invested capital, i.e. the yield on the investment.

By using this familiar capital budgeting method, I’m able to calculate an IRR of 6.1%for my solar water heater if natural gas prices rise a measly 3% per annum. That yield exceeds anything that a bank will offer you today. It will likely outperform the stock market this year, which is due for a substantial downward adjustment to reflect the slow-motion implosion of the housing market now underway. And, unless you live in a gold-rush community like Fort McMurray, Alberta, your house will do well just to hold onto its current valuation, let alone appreciate by six percent.

While all investments pose some degree of risk, the return on a solar energy system is about as safe and predictable as, well, the rising sun. Fortunately for the Earth and its varied inhabitants, the center of our solar system is situated well beyond the reach of humanity’s capacity to tamper with a good thing.

Make a green promise or maybe several promises.

From The GreenLaCrosse.com Promise:

Every little bit together - can make a big difference. We encourage everyone to do whatever they can to make their own green choices.

My GreenLaCrosse.com Promise:
1. I will reduce my fuel consumption by carpooling, riding a bike, using public transportation, walking etc.
2. I will use more green cleaning products.
3. I will eat more local and organic foods.
4. I will write a letter to my Representatives and Senators to express my green ideas
5. I will buy more local products within a 150-mile radius from my home to support the local economy and reduce transportation overhead.
6. I will dispose of my yard waste in accordance with the law. I promise to never burn my yard waste and to compost or re-use it whenever possible.
7. I will purchase and install a programmable thermostat to save money and energy on heating and cooling.
8. I will pick up litter when I see it and dispose of it properly.
9. I will recycle as many types of materials as possible including paper, aluminum, plastic and cardboard.
10. I will dispose of hazardous wastes in accordance with the law. This includes paints, household chemicals, electronics, fluorescent light bulbs and NiCd and Li-Ion batteries.

Warming to climate action: Xcel web site promotes green power initiatives, cap-and-trade support

From an article by Bob Geiger, staff writer for Finance & Commerce:

Last week, there was a minor change to the web site of Xcel Energy – an unobtrusive box picturing a wind turbine along with the words, "Learn more about Xcel Energy’s climate action."

But the minor graphic signals a major effort at the Minneapolis-based utility – to promote its renewable energy efforts, as well as its support for a proposed federal policy aimed at limiting greenhouse gases.

The site lays out Xcel Energy’s game plan for dealing with climate change, and includes an endorsement of a uniform federal policy for a cap-and-trade system that is intended to reduce emissions of carbon dioxide.

The U.S. Environmental Protection Agency (EPA) has started the process to cap carbon dioxide emissions as a pollutant under the Clean Air Act, established more than 30 years ago to deal with local and regional pollution.

In posting its support of a cap and trade system that charges polluters for emissions of greenhouse gases, Xcel Energy is taking the corporate position that such a system encourages technological change to lower such emissions.

In the meantime, Xcel itself is "looking to reduce our carbon dioxide emissions in Minnesota by 22 percent from 2005 levels" by 2020, said Betsy Engelking, director of resource planning for the utility.

Residents have new tool to "Live Efficiently with Focus"

From Focus on Energy:

Wisconsin residents who would like to learn how energy efficient their home is compared to similar homes in their area - and what they can do to increase that efficiency - now have a new online resource to help them do just that. By visiting LiveEfficientlyWithFocus.com, residents can walk through a simple assessment of their home's current energy use, receive a ranking of its efficiency, get energy saving tips, and even create an account if they'd like to email results to their Home Performance consultant or log in at another time to change responses after improvements have been made.

Grumpy Troll brew pub will generate solar power

From an article by Gena Kittner in the Wisconsin State Journal:

Photovoltaic panels installed last week on the roof of Mount Horeb's Grumpy Troll will soon enable the bar and restaurant to harness solar power to fuel everything from beer-brewing to pizza-making.

"A lot of the energy will be used for the brewery, as well as everything else that we do," said owner Doug Welshinger, adding the beer mash itself will still be boiled using natural gas.

Once the switch is flipped , probably by the end of the month, Welshinger said the business will use about 95 percent of the electricity generated by the solar panels. "We do consume a lot of energy, there's no question about it," he said.

The Mount Horeb Utilities will purchase all of the energy generated by the 38 solar electric panels - most at 30 cents a kilowatt hour - about three times the rate that a business customer would pay for the same electricity.

The Grumpy Troll, at 105 S. Second St., will continue to purchase all of its electricity from the local utility at the normal rate, but will receive a monthly bill credit for the green power generated by the panels, helping to offset its total energy costs.

The higher rate for sending electricity to the utility is part of an incentive program offered by Sun Prairie-based WPPI Energy, which includes Mount Horeb Utilities as a member. The higher rate will last about 10 years, said Ann Rodriguez, spokeswoman with WPPI Energy.

Brewery digester powers healthcare network

An article by Diane Greer in BioCycle gives a detailed description of the biodigester at Gunderson Lutheran:

Gundersen Lutheran Health Systems and City Brewing Company, both based in La Crosse, Wisconsin, are partnering on an innovative cogeneration project fueled by biogas from the brewery’s waste treatment process. The system, which started operating in October, is expected to generate 3 million kilowatt hours (kWh) per year of electricity, equivalent to 8 to 10 percent of the power used on Gundersen Lutheran’s La Crosse and Onlaska campuses. City Brewing will employ waste heat from the system, estimated at 17,000 mmBtus/year, to warm its anaerobic digesters producing the biogas. . . .

Angelo dam could produce power again

From an article in The Tomah Journal:

SPARTA - A dam that hasn’t produced power in about 40 years could be fired up again to provide alternative electricity and education for Western Technical College.

“It is a diamond in the rough that has been overlooked for a long time,” said Stephen Doret, a hydroelectric consultant and chief engineer for Mill Road Engineering in Westborough, Mass.

Doret detailed plans for the Angelo Pond dam on the La Crosse River at a public hearing Monday at Western’s Sparta campus.

The dam would generate electricity for the Sparta campus and help train students about emerging technology fields, said Mike Pieper, Western’s vice president of finance and operations.

The re-powered dam is expected to crank out about 1 million kilowatt hours a year, far more than the 250,000 kilowatt hours the Sparta campus annually uses, said Doret.

Join lobby effort at Conservation Lobby Day, January 26

Each year citizens from across Wisconsin descend on the Capitol to share their conservation values with their Legislators. Since the first Conservation Lobby Day in 2005, it has grown from just 100 citizens to more than 600! As we head into the 6th annual Conservation Lobby Day, there is one thing we can guarantee-when citizens come together to make their conservation values known, legislators listen, and conservation victories soon follow!

The reauthorization of the Knowles-Nelson Stewardship Fund and the passage of the Strong Great Lakes Compact are two great examples of how citizen lobbying resulted in ground-breaking conservation laws.

Conservation Lobby Day is a unique opportunity to share your conservation stories and experiences with legislators and have a huge impact on conservation policies affecting all of Wisconsin.

This Conservation Lobby Day, you can help to:

* Preserve Groundwater: Wisconsin's Buried Treasure: manage Wisconsin's groundwater resources to preserve lakes, streams, wetlands and drinking water supplies.
* Stop Global Warming in Wisconsin: address the threats of global warming in Wisconsin through clean, renewable energy jobs and energy conservation.
* Restore Conservation Integrity: return Wisconsin to an Independent DNR Secretary and a timely appointment of Natural Resource Board members.
* Protect Wisconsin's Drinking Water: protect Wisconsin's drinking water supplies by making sure we safely spread agricultural, municipal, and industrial waste.

For a 1-page brief on each of these issues and more information about Conservation Lobby Day 2010, go to: http://www.conservationvoters.org/Public/index.php?custID=110

Registration starts at 9:00am on the day of the event, but you MUST REGISTER BEFORE JANUARY 19th by visiting http://www.conservationvoters.org/Public/index.php?custID=110 and signing up. There you can learn more about the issues in order to better prepare you for the day's events.

Rebates still available to Alliant customers

From an article in the Fond du Lac Reporter:

MADISON, WI – December 16, 2009 – If you are considering replacing the older appliances in your home, 2010 may be the year to do it. Alliant Energy is encouraging its Wisconsin customers to take advantage of the new State Energy Efficient Appliance Rebate Program (SEEARP) next year to receive Cash-Back Rewards to purchase new ENERGY STAR® qualified or high efficiency appliances and equipment when they replace their used ones.

Starting January 1, 2010, as part of funding awarded to the state under the American Recovery and Reinvestment Act – widely known as the federal stimulus package - all Wisconsin residents will have the opportunity to become more energy efficient while saving money through the State Energy Efficient Appliance Rebate Program. The initiative is being administered by Focus on Energy, Wisconsin’s statewide resource for energy efficiency and renewable energy.

“If homeowners have been considering purchasing new appliances at some point, it’s an ideal time to do so in 2010 under this program,” said Linda Mattes, Alliant Energy Director of Energy Efficiency and Renewables. “Appliances, water heaters, and heating and cooling equipment are among the largest energy users in a home and replacing them with newer, more efficient models will save families money in the long run.”

Burnstad’s Tomah European Market certified as a ‘Green Grocer’

From a news release issued by Better Environmental Solutions and the Wisconsin Grocers Association:

Tomah, WI – With state and world leaders gathered in Copenhagen to talk about climate change, Burnstad’s European Market is one of the first grocery stores in the state to achieve the ‘Green Grocer’ certification, which assists grocery stores in achieving energy savings, sustainability and environmental standards.

“Burnstad’s Tomah European Market and the WGA’s Green Grocer Program show that businesses can reduce their costs, emissions and improve service with energy efficiency,” said Governor Jim Doyle. “This shows one concrete way for Wisconsin to be a leader to create green jobs and a green economy.”

The WGA Green Grocer Program recently won the Governor’s Award for Excellence in Energy Efficiency.

Burnstad’s Market upgraded their lighting and refrigerator compressor efficiency saving $17,703 and 228,446 kilowatt hours of electricity annually. This is enough electricity to power 21 homes and the equivalent to taking 31 cars off the road. They will reduce CO2 emissions by 408,795 pounds of greenhouse gas emissions next year. Burnstad’s received a DOE Rebuild Grant to help upgrade food service equipment with Energy Star appliances.

“We are pleased to be one of the first grocery stores in the Wisconsin to be Green Grocer certified,” said Kent Burnstad, chair of Burnstad’s Markets. “We took many steps like more efficient refrigerators, lights, and motors to save energy and reduce our energy bills and carbon emissions. We save money that we can pass onto our customers and pass a better community onto our children.”

Offered by the Wisconsin Grocers Association (WGA) to its members, the program is administered by Better Environmental Solutions, a Madison, Wisconsin-based environmental consulting firm. ‘Green Grocers’ also received energy efficiency and conservation programming support from Wisconsin Power and Light (WPL), an Alliant Energy company. The seven Green Grocer stores taking action will reduce 3,986,000 pounds of CO2 emissions and save 2,389,010 kilowatt hours of electricity next year, equal to taking 328 cars off the road.

Report: Wind Turbines Cause No Human Harm

From a news release issued by RENEW Wisconsin:

IMMEDIATE RELEASE
December 15, 2009

MORE INFORMATION
Michael Vickerman
RENEW Wisconsin
608.255.4044
mvickerman@renewwisconsin.org

Report: Wind Turbines Cause No Human Harm
Consistent with 10-plus years of commercial wind generation operations in Wisconsin, a national report issued today concluded that the sounds produced by wind turbines are not harmful to human health, according to the state’s leading renewable energy advocacy group.

Comprised of medical doctors, audiologists, and acoustical professionals from the United States, Canada, Denmark, and the United Kingdom, the panel of reviewers undertook extensive analysis and discussion of the large body of peer-reviewed literature, specifically with regard to sound coming from wind turbines.

The panel was established by the American Wind Energy Association and the Canadian Wind Energy Association (CanWEA).

“This report corroborates testimony that RENEW presented in the ongoing Glacier Hills Wind Park hearings at the Wisconsin Public Service Commission,” according to Michael Vickerman, executive director of RENEW Wisconsin. In that proceeding, We Energies is seeking approval to construct a 90-turbine 162 megawatt wind park in northeast Columbia County.

State gets $5 million toward appliance rebates

From an article by Mary Spicuzza in the Wisconsin State Journal:

For months, people have been asking store manager Rick Simler of Grand Appliance and TV about a new stimulus program that will provide rebates for energy-efficient appliances.

And for months, Simler has been hoping to get answers from state officials so he knows what to tell his customers.

"Almost everybody knows it's coming, and people are asking," Simler said, standing near a row of energy-efficient dishwashers. "And a lot of people are reluctant to make their purchases now because they're waiting for the rebate to come out."

But the wait for answers may be over soon. On Tuesday, Wisconsin was awarded $5.4 million through a federal stimulus program overseen by the U.S. Department of Energy.

Wisconsin's program is expected to start in early January and will offer mail-in rebates ranging from $25 to $200 on some energy-efficient appliances bought by residential customers. Select energy-saving, or "Energy Star," appliances would qualify for rebates. Oil and gas furnaces, boilers, water heaters, air conditioners, clothes washers, dishwashers, refrigerators, freezers and heat pumps likely will be included in the program.

Solar panels rise to Capitol heights

Governor Jim Doyle signals a crane operator to lift the first pallet of solar panels (below) for installation on the West Wing of the State Capitol. Madison Gas and Electric (MGE) President Gary (middle) and Chris Collins (right), a representative of the installer H&H Solar, joined in the liftoff.


The 48 solar panels in the final installation will cover 9,600 square feet on the Capitol roof and produce about 11,700 kilowatt hours of electricity a year, slightly more than a typical Wisconsin home would use annually.The system will be owned and maintained by MGE, which is fully funding the $78,000 project.

The staggering cost of new nuclear power

From an article by Joseph Room on Center for American Progress:

A new study puts the generation costs for power from new nuclear plants at 25 to 30 cents per kilowatt-hour—triple current U.S. electricity rates!

This staggering price is far higher than the cost of a variety of carbon-free renewable power sources available today—and 10 times the cost of energy efficiency (see “Is 450 ppm possible? Part 5: Old coal’s out, can’t wait for new nukes, so what do we do NOW?”

The new study, “Business Risks and Costs of New Nuclear Power,” is one of the most detailed cost analyses publically available on the current generation of nuclear power plants being considered in this country. It is by a leading expert in power plant costs, Craig A. Severance. A practicing CPA, Severance is co-author of The Economics of Nuclear and Coal Power (Praeger 1976), and former assistant to the chairman and to commerce counsel, Iowa State Commerce Commission.

This important new analysis is being published by Climate Progress because it fills a critical gap in the current debate over nuclear power—transparency. Severance explains:

All assumptions, and methods of calculation are clearly stated. The piece is a deliberate effort to demystify the entire process, so that anyone reading it (including non-technical readers) can develop a clear understanding of how total generation costs per kWh come together.

As stunning as this new, detailed cost estimate is, it should not come as a total surprise. I detailed the escalating capital costs of nuclear power in my May 2008 report, “The Self-Limiting Future of Nuclear Power.” And in a story last week on nuclear power’s supposed comeback, Time magazine notes that nuclear plants’ capital costs are “out of control,” concluding:

Most efficiency improvements have been priced at 1¢ to 3¢ per kilowatt-hour, while new nuclear energy is on track to cost 15¢ to 20¢ per kilowatt-hour. And no nuclear plant has ever been completed on budget.

Time buried that in the penultimate paragraph of the story!

Sun Harvest Farm's renewable energy projects

The Koerner's installed the domestic hot water system (right)in March 2006. It also provides a portion of the heat for the house.

Sun Harvest Farm, owned by Jerry and Penny Kroener, Ridgeway, WI
Renewable Energy Projects
September 2009 Update

General:
In 2005 we embarked on major renovations and additions to our old farmhouse. This included working with Focus on Energy to have site assessments performed for Solar Photovoltaic, Solar Thermal and Wind Turbine Systems. We also investigated wood burning systems because we have substantial quantities of firewood on our property. Our decisions included the following:
1. Add additional insulation, all new windows and new doors.
2. Replace our old oil burning furnace with a high efficiency propane boiler (our little Munchkin).
3. Install a Solar Photovoltaic grid-connected system to produce electricity.
4. Install a Solar Thermal (hot water) system to preheat domestic hot water and provide some house heat.
5. Install a counter-flow masonry heater fireplace using our own limestone for the masonry cladding.
6. In 2008 we built and installed a hot air collector to provide some heat in our barn workshop.
7. In 2009 we installed our 2nd Photovoltaic grid-connected system.
8. In 2009 we also upgraded our solar hot water storage tank.

Continued

Study: Wind farms have no effect on property values

From a news release issued by the Lawrence Berkeley National Laboratory:

Home sales prices are very sensitive to the overall quality of the scenic vista from a property, but a view of a wind energy facility does not demonstrably impact sales prices.Over 30,000 megawatts of wind energy capacity are installed across the United States and an increasing number of communities are considering new wind power facilities. Given these developments, there is an urgent need to empirically investigate typical community concerns about wind energy and thereby provide stakeholders involved in the wind project siting process a common base of knowledge. A major new report released today by the U.S. Department of Energy’s (DOE) Lawrence Berkeley National Laboratory evaluates one of those concerns, and finds that proximity to wind energy facilities does not have a pervasive or widespread adverse effect on the property values of nearby homes.

The new report, funded by the DOE, is based on site visits, data collection, and analysis of almost 7,500 single-family home sales, making it the most comprehensive and data-rich analysis to date on the potential impact of U.S. wind projects on residential property values.

“Neither the view of wind energy facilities nor the distance of the home to those facilities was found to have any consistent, measurable, and significant effect on the selling prices of nearby homes,” says report author Ben Hoen, a consultant to Berkeley Lab. “No matter how we looked at the data, the same result kept coming back - no evidence of widespread impacts.”

An expert witness on real estate voiced the same conclusion during hearings on We Energies proposed Glacier Hills Wind Park.

Handbook on financing community wind projects

From the newly released handbook on "Community Wind Financing," published by the Environmental Law & Policy Center:

. . . community wind [i]s any project up to 20 MW which was “initiated and (at least partially) owned locally.”

Community wind power projects represent a relatively small, but growing, share of the wind energy market. As of July 2008, community wind projects accounted for at least 736 MW of the total installed wind energy projects in the United States, primarily in the Midwest, and more have been developed in the last year. These projects are largely owned by farmers and other local investors, schools, tribes and municipal utilities and rural electric cooperatives. Such local ownership generates powerful economic and social benefits for rural areas. . . .

This updated Handbook provides the latest information on financing community wind projects, including ownership structures, roles of financial intermediaries, and sources of federal and state financial support. Although building these projects has become easier over time as landowners have benefited from the experiences of the community wind pioneers, understanding and accessing financing opportunities remains perhaps the most important requirement for a successful project.

Alliant Energy Foundation offering community service scholarships

From a news release issued by Alliant Energy:

December 1, 2009 – The Alliant Energy Foundation is offering scholarships to recognize outstanding community leadership in young people and help first-time college students attain their academic goals. Up to 25 $1,000 scholarships will be awarded in the fall of 2010 through the Alliant Energy Foundation Community Service Scholarship Program.

“We believe in supporting education throughout our Iowa, Minnesota and Wisconsin communities and one of many ways we can do that is through awarding scholarships to deserving young adults,” said Julie Bauer, Alliant Energy Foundation Executive Director. “We are proud to offer these scholarships to benefit talented students and their families.”

To be eligible, scholarship applicants must have participated in a leadership role in community service work or volunteer activities. They must also meet the following criteria:

+ Be age 24 or under;
+ Be a dependent child of a current customer, or be a current customer, of one of Alliant Energy’s utility subsidiaries (Interstate Power and Light or Wisconsin Power and Light);
+ Reside within the Alliant Energy service territory at the time of application; and
+ Plan to enroll in, for the first time, beginning in the fall of 2010, a full-time undergraduate course of study at an accredited two- or four-year college or university, or vocational-technical school located within Iowa, Minnesota or Wisconsin.