Friday, March 18th 2011, The Arizona Republic published two front page articles featuring a photograph of Governor Jan Brewer meeting with both the President and CEO of First Solar, the nation’s largest photovoltaic module manufacturer. The three review a pair of photovoltaic-panels before a press conference announcing that First Solar will build a solar-panel factory in Mesa, AZ.
First Solar has purchased the old GM facility near Signal Butte and Elliot, where they have an option on an additional 100 acres of the former General Motors Proving Grounds. Their intent is to transform the facility into a solar module processing plant, which will create hundreds of jobs for Arizonans and produce around 250 Megawatts of panels every year, easily doubling the company’s annual capacity.
Unfortunately, as far as growth is concerned for Arizona, it stops at more employed Arizonans. Perhaps solar installers may be able to procure modules at a slightly reduced prices due to shipping reductions, but the presence of this plant and the jobs it creates will have little to no effect on the continued integration of solar energy into Arizona.
The fact that more solar industry players are focusing their attention on Arizona is great. However, it is clear to most solar professionals in Arizona that current legislation, incentives and overall policy is lacking. Nobody is arguing that Arizona should be the leader in solar, as Arizona is uniquely equipped with the right conditions for optimal testing, research etc. However, it has been noted in studies by SmartPower and the Clean Energy Group that COST is the single largest obstacle in purchasing solar and the best known way to combat that obstacle is with government incentives and better financial mechanisms. Despite press reports and media gatherings, the incentives to develop even small solar arrays are less than generous for many solar enthusiasts and businesses who want to go green but lack the time or financials to make it a reality.
We can learn a lesson from the car industry by understanding the value of promoting products by highlighting affordable monthly installments; be it through leasing arrangements or purchase. Businesses and consumers cant afford millions but they can work with a payment schedule. More importantly, these financial mechanisms should be promoted to all Arizonans and not just well informed solar enthusiasts. In many cases current programs are promoted through press releases and on the program websites only. Today, this method is NOT WORKING and a shift will need to be made by state program marketers and influential leaders like Jan Brewer to create and market these campaigns like the car industry, because solar financing programs should be promoted to more than just existing customers & experts.
It’s quite apparent that the Arizona government is not keeping a keen eye on renewable activity, let alone solar activity. In fact when you visit the Arizona Department of Commerce website, you must squint and look to the left to find the eighth option down “ENERGY PROGRAMS” then select the fourth option down “RENEWABLE ENERGY” to finally navigate to reports like Solar Installation Data (Updated 2008), Solar Electric Roadmap for Arizona (Updated January of 2007), Arizona Renewable Atlas Reports (Updated 2006). At this point you will understand that there is not a lot effort in making Arizona the standard for a statewide campaign to promote solar energy, when these reports are rarely updated.
More importantly, when navigating to the state & federal incentives page I was redirected from the Arizona site and forwarded to the DSIRE (Database of State Incentives for Renewable & Efficiency). This is a notably accurate source; however the Arizona Department of Commerce should have created a webpage to promote what Arizona has to offer in terms of incentives. In fact this seems objectionable, considering that in 2010 Arizona received $335,000 towards State Energy Program Grants and is requesting $422,000 in 2012 (DEPARTMENT OF ENERGY FY 2012 Congressional Budget, State Table). Additionally, no satisfactory amount of funding has been dedicated to updating & enhancing Arizona’s grid to handle future energy increases by new solar arrays that will eventually come online. This can be considered a problem as power consumption in Arizona grows 4.1% every year, twice the national average (US department of Energy EERE State Activities).
It is clear that while Arizona should be the leader in solar, other states like California, New Jersey, Colorado & Pennsylvania are taking the lead due to better state programs, better promotion of those programs and a focus on the success of solar suppliers. In reality both the solar supplier and the state solar programs have the same goal: a large customer base for solar power in the region.
So while it is great for Jan Brewer to give thanks for more jobs in Arizona, energy might be better spent creating new programs with incentives to expand the reach of solar in Arizona. This is how other states are quickly growing their solar market. One great example is a program in San Francisco elegantly named “The Mayor’s Solar Founder’s Circle” with the intention of encouraging solar on top of the city’s largest buildings. This program like others target specific types of structures inside metropolitan business areas and offer special financial incentives for those who install solar. Arizona can also learn a lesson from New York which provides a website (http://www.nyserda.org/) with almost everything you could want to know about the New York solar market. Furthermore, this site features a map of New York cities and if you click on any of the cities it takes you to a listing of organizations that help finance solar projects in that area. Sites like these that advertise programs and financing options empower businesses and consumers to invest in a solar future.
Yet it must also be said that the only way programs like these can work is through the correct marketing by city and state agencies along with face to face visits, technical site visits and actual advertising. It’s very important and we hope that in the future Arizona won’t be identified with just cactus, cowboy hats and desert but with solar.
Incentives are a crutch. Until 2015--when the decreasing price of solar pv meets the rising cost of traditional energy generation--you have to sell solar panels to those for who price is no object. These include new home buyers and other green-minded families with income to afford it. Look in their garage...if they're driving a hybrid car they're not worried about ROI.
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