The holy grail for solar power is to match the cost of power from coal-fired power plants or other traditional fuel.

That goal is still on the horizon. But researchers at the Lawrence Berkeley National Lab say the industry is getting closer as the cost of going solar in the United States saw a pivotal year in 2008.

In a new report, the researchers found that the cost of going solar fell by more than 30 percent from 1998 to 2008. The installation costs — before taking into account any incentives –  dropped from $10.80 per watt to $7.50 per watt during that period.

Costs like labor, marketing and overhead drove much of that decline. But the fall in panel prices, which tumbled from 2007 to 2008, helped push the total cost down in recent years.

Photo: Thousands of solar panels are shown that generate electricity used at Nellis Air Force Base in Las Vegas. Photo credit: REUTERS

Utilities across the United States are rushing to a federal stimulus program that is doling out money to create a “smart grid” — systems that will upgrade the electricity grid.

In this story, Reuters correspondent Eileen O’Grady looks at the tough job facing the U.S. Department of Energy: They have to divvy up $4.5 billion in smart-grid money among some 565 applications.

Smart grid technology measures and modifies power usage in homes and businesses and improves grid reliability. Experts envision that it will open the door to a new era with “smart” appliances that turn themselves on and off, electric cars, more renewable energy and more efficiency on power lines.

San Diego Gas & Electric is one of the utilities hoping to launch a smart grid through the federal program and has applied for $100 million in stimulus funds.

Their plan would build micro smart grids at the University of California, San Diego and a residential community in San Diego County. They would work with companies like IBM, Cisco and Itron on the system technologies, software and hardware.

“They not only have to talk with each other but we have to make sure the entire network is secure. So from an intellectual security standpoint, we’ll ensure that we have that set-up, that we have the ability to communicate from one device and we make it seamless for the customer,” said Michael Niggli, chief operations officer at San Diego Gas & Electric.

Another major issue the utility hopes to solve is what happens when energy from renewable resources is intermittent, with its power generated fading or spiking.

“If the wind stops blowing or if the sun has clouds that intervene, so you can be in a situation where the power supply is affected,” Niggli said in a phone interview with Reuters.

“That’s a lot different than what we have today … where it’s like driving a car. If you want to go faster, you push the accelerator.”

Niggli envisions a system where customers can control their home energy use remotely, turning on the air-conditioning from a computer through the Internet or even on  their handset.

Some companies that are partnering with utilities are not putting all their eggs in one basket in the race for the smart-grid stimulus funds.

IBM is working as a vendor with a dozen utilities that have applied for money.

If the smart grid is done right, then customers won’t even notice a difference, said IBM’s Stephen Callahan, who leads the company’s Intelligent Utility Network unit for the Americas.

“Those customers shouldn’t see anything but improvement in cost, reliability, all those things,” Callahan said.

We wanted to know what readers think about the federal program to jump-start smart grid projects. What should the DOE prioritize? What kind of projects would you like to see?

(Photo: The sun is shown as it rises between power transmission lines in Burbank, California. Photo credit: Fred Prouser/Reuters)

California may be the Golden State, but it’s New Jersey where U.S. residents get the best deal on their solar power systems, new research shows.

A survey by Global Solar Centertried to give an “apples to apples” comparison for the cost of solar power in all 50 states, the center’s chairman Jack Hidary told Reuters.

The common denominator turned out to be the cash payback, or how many years it would take a residential or commercial customer to recoup their investment and start seeing real savings, Hidary said.
“That takes into account the cost of the system, the sun at that spot, the incentives of that region, utility rates. It blends in everything all together,” Hidary said.

The center analyzed the date using new software and found that New Jersey had the fastest payback — 1.5 years — for residential systems, followed by New York and Delaware with paybacks of three and six years, respectively. California tied for fourth place with Maryland, Massachusetts and Wisconsin, all with payback hitting seven years.

Rankings changed when the center looked at commercial solar power systems.

For commercial projects, Colorado, Wisconsin, Hawaii, Ohio and Oregon all share the top spot, with a 1.5 year payback time, according to the survey.

The center also found that solar hot water systems have a one-year payback in sourthern Texas and Florida.

“To put this all in context, five years ago you couldn’t find a state with less than a 10 or 15 year payback,” said Hidary, who also is a board member of the National Renewable Energy Laboratory. He said the steep fall in solar panel prices and more government incentives have helped speed up the return on investing in a solar power system.

U.S. President Barack Obama has made climate change legislation one of his top goals and has pushed for more clean, renewable energy like solar and wind power.

But back in 1979, when another Democrat was in the White House, 32 solar panels graced the roof above the Oval Office.

Part of an initiative called “Solar America,” the panels turned sunlight into electricity that heated water in the staff kitchen — which President Jimmy Carter often used. They were removed during Ronald Reagan’s administration in 1986.

Now, one of those presidential solar panels has joined the Smithsonian’s National Museum of American History in Washington, DC.

“The White House solar panel is evidence of an American president leading by example to promote his administration’s agenda,” Harry Rubenstein, chair of the museum’s division of politics and reform, said in a statement. “It displays how President Carter reinforced his policies through a personal gesture taking place in his own home.”

Unity College donated the panel to the museum this summer. The college in rural Maine got the panels in 1991. It refurbished some of them and installed them on top of the college cafeteria, and the panels heated water there until they maxed out their life span in 2005.

We were wondering if readers would like to see Obama install solar panels on top of the White House again?
It would certainly send a message — similar to the example set by First Lady Michelle Obama when she planted a vegetable garden on the White House lawn to promote healthy eating.

– Writing and reporting by Laura Isensee

(Photo Credit: United College and GreenBang/President Jimmy Carter inspects solar panels installed on top of the White House on June 30, 1979)

CARBON, Wyoming - They used to mine coal in the abandoned town of Carbon. Now this patch of southern Wyoming is a battleground in the debate over what many hope will be the clean energy source of the future: wind power.

At the heart of the dispute are plans to build a network of wind farms in the American West that conservationists fear could disrupt threatened habitat such as sage brush, a dwindling piece of the region’s fragile ecosystem.

This has made the greater sage grouse — which as its name suggests is totally dependent on sage brush — an unlikely poster child for some U.S. environmentalists, in much the same way that the rare spotted owl became a symbol in the 1980s of pitched battles with the logging industry.

Wyoming is home to 54 percent of the greater sage grouse population in North America. The bird’s status is being evaluated for inclusion on the U.S. government’s threatened or endangered species list, which would give it more protection.

The problem: The chicken-sized bird lives in the vast tracts of wind-whipped open spaces that make Wyoming highly attractive to the wind industry.

Near Carbon, the focus is on a 198-turbine, $600 million wind farm proposed by Horizon Wind Energy.

“They want to build it around here but we need to be thinking truly green. It is not just about our carbon footprint,” said Alison Holloran of the National Audubon Society in Wyoming, as she pointed to clumps of grayish sage brush along a dirt road.

(see video below for more from Holloran’s comments)

Wind power will play a huge role in any move by the United States to reduce its emissions of the greenhouse gases that most scientists believe are the main causes of rapid climate change. The burning of coal and the use of other fossil fuels such as oil are the largest single source of carbon emissions, so the race is on for “clean energy” alternatives.

SHADES OF BROWN

In the public mind, wind is regarded as about as “green” an energy source as you can get. But some environmentalists see shades of brown in the industry.

They say the wind turbines and the development that goes with them, including roads and transmission lines, will further fragment critical sage habitat and disturb the grouse and other wildlife.

Horizon says the grouse issue requires more study.

“There is no peer-reviewed research on how sage grouse respond to turbines,” said Arlo Corwin, Horizon’s development director for the western region. “We believe that obtaining this research is essential to see if wind turbines and sage grouse are going to be able to coexist.”

There have been several wind power skirmishes in the United States. Off Cape Cod in Massachusetts, there is a battle over plans for an offshore wind farm that opponents say will disrupt navigation and shipping. There have also been concerns about bird/turbine collisions in some places.

Wind now delivers about 1.25 percent of the United States’ electricity supply, but the industry is growing fast, according to the American Wind Energy Association. It says wind power generation now offsets about 54 million tons of carbon a year.

In Wyoming, there are about 20 wind farms and four additional projects under construction, the association says. It ranks the state 12th in U.S. wind production but seventh in potential generation — meaning a lot of untapped capacity.

Wind turbines already spin in Carbon County not far from Horizon’s proposed development area, where the treeless countryside looks stark. The town of Carbon was abandoned over a century ago and only a few brick foundations remain.

HARSH LANDSCAPE

In this harsh landscape, sage sustains life. The greater sage grouse and around 20 other bird species depend on it for survival, and the sturdy plant also sustains big game species such as elk and mule deer during the cold Wyoming winter.

Corwin said Horizon’s planned wind development, known as the Simpson Ridge project, would make use of existing transmission lines that run through the area, removing at least one concern.

Horizon is evaluating when to apply for a permit to develop the site, which is also attractive because landowners have agreed to host the turbines on their property.

Last year, Wyoming said it would restrict development on greater sage grouse habitats it has designated “core population areas.”

U.S. government wildlife officials say that other kinds of development have not been favorable for the grouse.

“The impact of fragmentation is very, very clear. We know that they won’t occupy habitat close to an interstate for example. They are a landscape species and need big open intact habitats,” said Brian Kelly, a field supervisor for the U.S. Fish and Wildlife Service in Wyoming.

Kelly said such concerns applied to all developments, including gas, oil and even housing — not just wind.

About 20 percent of the state is regarded as “core” for the bird.

“If we conserve that 20 percent we effectively conserve 40 percent of the birds in North America. That’s why it is significant,” Kelly said.

The state government estimates that only about 14 percent of Wyoming’s “economically viable wind areas” — which is based on factors like wind strength, speed and duration — is within core sage and grouse grounds while 86 percent is outside.

“We don’t need to pick one or the other, grouse or wind. We can have robust sage grouse populations and robust wind development in Wyoming — no problem,” said Aaron Clark, an energy advisor to the governor of Wyoming.

The wind industry has disputed these figures and some of the definitions used by wildlife and state officials.

Horizon’s Corwin noted that sage, which has lost about half of its historic range by some estimates, is also under threat from climate change. And reducing greenhouse gas emissions by harnessing energy sources such as wind is seen as the best way to slow or stop global warming.

More:

Facts about wind power in the United States

(Photos: REUTERS/Ed Stoddard)

After nearly 25 years in the computer science and aerospace industries, including a stint at NASA’s Jet Propulsion Laboratory, Doug Caldwell decided to pursue a career-long dream of putting his engineering skills to use for the environment. So the Southern California native left his own start-up, a company that builds cameras for spacecraft launch systems, to explore his options.

He didn’t have to look far, or for very long. Within months Caldwell had landed work on a solar power development project, recruited by an old buddy from his days launching model rockets in the desert. Perhaps more ironic is the company he ended up working for — Boeing Co.

Two years later, Caldwell, 47, is chief engineer of the project, which employs about 60 people in a $45 million endeavor to design a new type of photovoltaic solar technology for what would be a 20-megawatt power plant.

One thing he has learned from the experience is that renewable energy development is more of a dollars-and-cents proposition than building rockets. “It’s not about engineering. It’s about business and finance,” Caldwell says.

While space science is largely mission-driven, albeit within the confines of a budget, the paramount concern for clean energy is making it cost-effective and achieving a reasonable return on one’s investment. Moreover, he says, the history of U.S. energy development, and how closely it’s tied to the economy, will make the nation’s transition to cleaner energy especially tough.

Americans, he says, are “spoiled” by cheap energy prices that fail to account for the true costs of environmental damage wrought by extracting and burning fossil fuels, or the national security implications of maintaining access to foreign oil.

“Everybody wants to be green, but no one wants to pay for it,” he says. With sizable investments required to transform the energy sector, the development of low-carbon alternatives is going to be “very dependent on public sector incentives.”

Boeing’s solar project is a case in point; the aerospace giant dipped its toe into energy with the help of a matching grant from the U.S. Energy Department. But Caldwell says the company already is looking for an exit, deciding when the economy faltered to concentrate on its core business. He says Boeing executives now see little point investing in a power plant that will take a year or two to build, then generate in one year the amount of revenue, about $100 million, that an aircraft product line can churn out in less than a day.

That means Caldwell will soon be looking for another job. But that’s OK with him. He’s more interested in “smart” power grid technology and developing small-scale photovoltaic cells for urban rooftops, rather than sprawling solar farms that “require despoilment of large tracts of the desert.”

“I have a real problem with the idea that we’re going to save the planet by scraping large tracts of pristine land. I see that as fundamentally no different than lopping off a mountaintop for extracting coal.”

Caldwell also says the nation stands to gain more bang for its buck by investing in greater energy conservation, such as home weatherization and retrofits. But he acknowledges that solar power, while costly to produce and install, still has a special appeal.

“It’s very visible. If I put solar on my rooftop, I get to point at it and say, ‘Look what I did.’ And solar panels have that patina of being high tech,” he said. “If I insulate the roof or the attic, I don’t get to point to it, and it looks dreadfully low tech… It’s nothing more than a guy with a big hose blowing stuff in your attic.”

Spoken like a true rocket man.

Photo credit: REUTERS/Ho New ( An array of solar panels at Nellis Air Force Base in Nevada)

Unfairly or not, any discussion of the Republican party’s environmental record by clean energy advocates often includes a mention of the White House solar panels ditched under Ronald Reagan. Green-minded members of the Grand Old Party, on the other hand, would rather point to the birth of the Environmental Protection Agency under Richard Nixon. Either way, in what’s clearly a sign of the times, renewables featured high on the minds of three former GOP secretaries of state who popped up at various energy conferences in the San Francisco Bay Area this past week (One can only assume the timing was a coincidence).

George Schultz, who served under Reagan, probably surprised at least a few people when he counted himself as among those EV1 owners still regretting GM’s controversial scrapping of the electric car earlier this decade.  A Stanford professor and Hoover Institution fellow for the past two decades, Schultz had enjoyed driving it around campus. “I could even drive it up to San Francisco. I couldn’t go too many other places, but it’s a very useful car,” he said. “I was sorry to see that car taken off the market, it worked just fine.” Speaking at a meeting of energy economists last week alongside Chevron’s David O’Reilly, Schultz went on to join the oil company CEO in endorsing a carbon tax as more efficient than the cap-and-trade system favored by Congress.

On Monday, Condoleezza Rice also favored a carbon tax when she addressed the Silicon Valley Energy Summit at Stanford, where she too is a professor and Hoover fellow, while stressing the importance of not picking winners in the push for greener energy. “At this stage, we need to have an open field for all renewable alternatives to change the energy mix,” she said.

Just down the road in Palo Alto the next day, the secretary of state under George Bush Sr., James Baker, ranked climate change alongside nuclear proliferation, the economy and wars as a leading global threat. “I’m not going to talk about the science of it, ’cause I don’t understand it,” he told a meeting on clean energy arranged by law firm Baker Botts. Yet he felt, as an outdoorsman, that good stewardship of the planet was vital, even if he saw the current climate change bill in Congress as flawed. He suggested it should be passed, but left unsigned by the president until big developing countries like China and India made similar moves against carbon, holding the bill back as a bargaining chip. “That’s Negotiation 101,” he later told Reuters.

Photo credits: Above: General Motors publicity photo of the EV1 passenger car. Below: REUTERS/Ron Sachs/Handout (Former U.S. Secretary of State Condoleezza Rice speaks to supporters of the Jewish Primary Day School of the Nation’s Capital in Washington, in this handout image from May 3, 2009)

A “gold-rush-like” buzz has spread across Germany in the last week over tentative plans to invest the staggering sum of 400 billion euros to harvest solar power in the Sahara for energy users across Europe and northern Africa. Even though European and Mediterranean Union leaders have been exploring and studying for several years the idea of using concentrated solar power (CSP), the Desertec proposition suddenly captivated the public’s attention a week ago when German reinsurer Munich Re announced it had invited blue chip German companies such as Deutsche Bank, Siemens and several major utilities to a July 13 meeting on the project. The 20 companies aim to sign a memorandum of understanding to found the Desertec Industrial Initiative that could be supplying 15 percent of Europe’s electricity in the decades ahead.

Germany’s deputy foreign minister, Guenter Gloser, has been the government’s point man for the project. I had the chance to talk to him about it.

Question: How did this project to turn the sun in the Sahara into electricity for Europe and north African countries get started?
Guenter Gloser: About 15 months ago Germany and France proposed including the solar plan into the list of projects for the Union for the Mediterranean. There were institutions that had already done research and we thought: ‘Why don’t we use this sun belt where there is such an abundance of sunshine as a source of renewable energy?’ Together Germany, France and Egypt put forth this solar plan as one of the six projects for the Euro-Mediterranean Partnership and underscored the fact that it could benefit both sides. It was not an idea where just countries north of the Mediterranean will benefit but rather those countries south of it as well as across the EU would also benefit.

Question: What is the current status of the project?
Gloser: We agreed to move forward with the project and want to go forward step-by-step towards its implementation. But obviously neither the EU nor the Arab League will be the principal players but rather private investors. Our task for this project is to create the political framework — for example with setting up of the feed-in tariffs, ensuring the infrastructure is built and ensuring that the renewable energy can be transported to Europe. The political framework can also make it possible to expedite the approvals process. But what is also very important is that the energy produced is also available for countries in the region. For example, Morocco can take advantage of its solar and wind conditions on the Atlantic coast to build solar power plants or wind energy parks to provide energy for its domestic market and to sell energy abroad as well. Even countries such as Algeria, which has fossil fuel reserves, could also use the sun belt for solar thermal power for some of their energy needs — and prolong their fossil fuel reserves.

Question: Is there not risk involved in such large-scale investment in a region with a potential for political instability?
Gloser: It’s a cooperation that will contribute towards diversifying energy sources, geographically and in terms of energy sources. It’s a truly fascinating project because it’s a win-win for everyone. And the third winner will be the people and institutions that finance this project. Neither the EU nor the countries in the south are capable of financing this on their own. So the question is: can third-parties bringing financing be involved. Energy security is an important issue everywhere. There are energy sources we have today that at times have been somewhat at risk. There’s no contradiction in saying that it’s important to diversify a country’s energy source as well as diversifying the types of energy it receives. It’s not that there is no risk whatsoever but it’s important to keep in mind that there are also some risk factors for other sources of energy that we are now importing.

Question: What impact do you think a project like this could have in the Mediterranean Union?
Gloser: I think the partnership approach that we have taken could well have a positive influence of stability for the countries taking part as well as the neighbouring nations. The EU has been enlarged and come closer together in the past decades but there hasn’t been as much of that among Arab countries. Perhaps it would be possible through certain projects, such as this solar energy project or water projects or transportation routes, to increase the cooperation among those countries.

Question: There have been fears expressed that Europe would be exploiting natural resources in Africa, raising fears of a new sort of ‘colonisation’. What would you say to those fears?
Gloser: It is not in any way an issue of the north dominating the south. It is not only the north that is interested in acquiring renewable energy but rather other users are interested. And if that mutual need for energy leads to a project that satisfies all sides then that is in my view a good route to take. I don’t think there’s any justification for the notion of this being an ‘energy colonisation’ or anything like that at all. It’s a mutually beneficial project.”

Question: How high is the interest in other countries? Some cynics would say Germany’s expertise in renewable energies gives it a big advantage.
Gloser: So far the countries in the south and north have been in agreement about the project. Now the task is to identify the next steps. There are countries in both the south and north that are more interested in the project than others — because, for example, they already have had positive experiences with renewable energy. That is not only Germany but also Spain and other countries. And on the other side of the Mediterranean there are countries that will have more interest at first than others.

Question: Some might see this project somewhat cynically as a vehicle to help German companies that already have such a considerable head start in know-how with renewable energy. What would you say to them?
Gloser: Obviously there are some important players (in Germany). But they are not only in Germany. Certainly we have built up a renewable energy sector in Germany, thanks to the right political framework a decade ago, that has created an enormous number of jobs. But Spain has also had an enormous development in recent years and in Denmark the wind energy sector has reached a large dimension with considerable know-how. But beyond those countries there are many other countries with companies and suppliers for the industry.

Question: Are there problems on the horizon being overlooked?
Gloser: In my eyes the biggest problem right now is that the expectations have possibly been raised too high. I’m someone who’s thought: that’s a great idea and why don’t we take advantage of all these things at hand: know-how, sun belt, political cooperation, development, stability, security, partnership. There are so many positive aspects that come together. Now it’s time to come up with some realistic timetables and see how we can move forward step-by-step to make this project a reality.

PHOTO: Mirrors are seen channelling sunlight onto a tube filled with oil during the dedication of Acciona’s Nevada Solar One power plant in Boulder City, southeast of Las Vegas February 22, 2008. The 400-acre, 64-megawatt, concentrating solar power (CSP) plant is the third largest in the world, according to Acciona. The plant produces energy to power about 14,000 homes. REUTERS/Las Vegas Sun/Steve Marcus

Yikes. Seems it ain’t easy, or at least ain’t cheap, being green.

It will cost California some $115 billion for (pretty much) hitting 33 percent renewable energy by 2020. That’s more than twice the price tag of sticking with a goal of 20 percent. The difference, according to a long-delayed report issued today by the state’s Public Utilities Commission is due to the speed of building fast. There are all sorts of other problems outlined in exquisite detail. It’s all quite handy for those trying to get a sense of just what needs to be done to go green. A lot, it seems.

When Kennedy announced the moon shot, was there this type of gnashing of teeth? Maybe no one ran the numbers ahead of time!

Pic of Mr. It’s Not Easy Being Green by Mike Segar/Reuters

Google Green Energy Czar (real title) Bill Weihl sat down with Reuters to talk about Renewable Energy Less Than Coal - the company’s plan to make affordable clean energy. Google started off trying to green up its own computer operations and then launched this save-the-world effort, which includes some investment in renewable energy startups and the work by a Google team.

Weihl describes that work in the video below, saying that the chances of successfully creating clean energy at less than coal prices - or about 3 cents per kilowatt — had risen from long shot to roughly even odds in about three years’ time.

This is an overview of Google efforts (that’s me asking questions):

And here is Weihl giving a bit more detail of solar thermal work for you wonks (like me):

Video by Peter Henderson/Reuters