Where I Stand:

Solar power’s time has come in Nevada

Robert Boehm

Friday, Aug. 28, 2009 | 2:02 a.m.

We have heard so much about the potential of solar energy, but other than a few notable projects, not much is happening.

One fact is certain: Mother Nature has endowed us with enough sunshine that it gives us a lot of energy to use. Another fact: Nevada has a great deal of land that could be used to harvest this resource.

We even have a good array of tax and rebate benefits. Solar equipment, although not cheap, is coming down in price — in fact, it is one of the few sources of power exhibiting this characteristic.

Then why isn’t development taking place at a faster pace?

Over the past decades, government-subsidized prices at the gas pump and the coal mine have been (deceptively) low. It has been interesting to observe the thirst for renewable energy when these prices rise and then see how we put it out of our minds when the prices go down.

The recession has greatly affected the ability of companies and individuals to garner loans to install systems, just as it has affected virtually all other aspects of business. This is one of the harder problems to solve, and it has a chilling effect on solar power development.

The federal government owns most of the land in Nevada. This could facilitate or hinder the building of plants. The jury is still out on this.

Another issue of concern for Nevada solar plants of large scale is water availability. Certain kinds of plants require water both for their cooling systems and for cleaning the collectors. By developing appropriate technology, we can minimize this water use.

One element of the solar industry includes the installation and operation of systems on individual homes. We will see this market continue to grow in Nevada.

Installing a solar system on your house is investing in something that will furnish energy for the house’s lifetime. You will save as the price of power goes up.

Putting these devices on homes is difficult for most people in the current economic situation. However, what about putting them on new homes?

If every home in a new development had them, two benefits would result. First, the installation cost would be less for each system. Second, and this is extremely important, the cost of the system could be wrapped into the mortgage. Energy savings would outweigh the increased mortgage payments.

One big problem is having appraisers incorporate these features into estimated home values. Without that, homebuilders will not be eager to build with these features.

Another focus should be making Nevada the home for companies that design and manufacture solar equipment for plants. Ausra, for example, has a manufacturing facility here.

We will have a more difficult time encouraging many businesses of this type to relocate to Nevada. State incentives, a track record in technology and manufacturing, and other aspects play heavily in the decisions about where companies locate.

Our economy, based almost totally on gaming and tourism, puts us a little behind some of our neighboring states.

Public education, with its high dropout rates, is not enticing to companies locating here. Higher education has suffered significant cuts, but with sufficient state and federal leadership, we can offer an inviting development climate.

Community colleges could emphasize manufacturing and installation trades. At the university level, NV Energy has given both UNR and UNLV money to develop educational programs in renewable energy.

If it is difficult to entice companies to locate here, an alternative is to grow our own companies. How can we assist in bringing this about? Some states have organizations that help companies develop products in their earliest stages in exchange for a piece of the action from successful concepts.

With proper support, Nevada’s universities could perform this function. We have organizations at the universities that can assist owners with business operations.

Solar’s detractors say the sun shines only part of the time, but we have a comprehensive solution to this problem in energy storage. Large solar thermal plants will be the first to benefit from this as the technology exists but hasn’t been widely applied. With it, energy could be provided by these plants 24 hours a day. Photovoltaic plants and systems on houses will be able use storage batteries.

Throughout history, Nevadans have proven their ability to harness the earth’s bounty. Now is the time to look to the future: the sun.

Discussion: 5 comments so far…

By billsail

8/28/09 at 7:10 a.m.

Suggest removal

The problem with solar is that it is not price competitive with other forms of generated electricity, without government subsidy. Unless you drastically raise the price of all other forms of generated electricity which would hurt the economy. If we allowed the free market to work we would understand this.. very sad
By mikegino

8/28/09 at 8:23 a.m.

Suggest removal

Keep dreaming!
By Socrates

8/28/09 at 10:34 a.m.

Suggest removal

Dr. Boehm is correct. As one of Nevada's foremost experts on the topic, his comments are welcome.

The cost of solar is falling fast as manufacturing techniques and material costs plummet. Over the last 20 years, manufacturing output has grown by a factor of 200.

PV power will be cost competitive with natural gas plants within a few years, with no incentives at all. With the current federal tax credits, it is already competitive. (BTW, ALL forms of energy are subsidized in various ways in the U.S., ESPECIALLY fossil fuels and nuclear!) If one is honest about the true cost of using non-renewable energy (climate change, security, scarcity), PV is already a clear winner.

Many utilities are now building PV generation into their energy portfolio. With no fuel costs, little water use and zero carbon emissions, it is a wise choice. Plus PV power can come online quickly. 2 GW of PV was installed in Spain in 2008 alone. Conventional plants would take 10-15 years.

The system on my roof produces power at $.05/kwh and will do so for about thirty years at least. The return on my investment is around 18%.

Notice that this was an investment, not a financed purchase. No one in their right mind expects to make a profit by borrowing money to invest in stocks (though PV is practically risk-free). Save up and spend wisely. Use all available financial incentives (just like well-run businesses do). The rewards are significant.

Dr. Boehm is correct that installing PV on every new home makes good sense. Let's hope that appraisers, realtors and underwriters learn to properly value these systems (and the energy efficiency that goes along with them) so an honest market can develop. Builders are ready and so are their customers.
By gimpyguy

8/28/09 at 10:59 a.m.

Suggest removal

Thank you Socrates! We should all be considering a future with no oil or natural gas energy sources, because these things are indeed running out quickly. And, as they do run out, their costs will rise steeply. Should we wait until then to start considering the use of renewable forms of energy? Or should we be preparing now, so the adjustment will be far less painful and expensive? The time for action for use of PV and other renewables in Nevada and elsewhere (where feasible) is right now.
By brucestrav

9/1/09 at 7:52 a.m.

Suggest removal

And somebody want to tell us exactly how much per-Kw/hr this brilliant solar technology is going to cost us as utility clients? It's not like we get to have competition in utilities. We are captives of a monopoly dictated by the State of NV and subject to bribery of various members of our now entire business-knowledge-less Clark County Commission and State Legislature and Governor.

There is NO SHORTAGE OF OIL, NATURAL GAS, COAL or any other physical resource. The US could go the next 100 years on OUR OWN ENERGY if only our politicians weren't all in the same religion of Global Warming (gee, we live in the desert and it's hot. duh.)

We are we being forced to pay higher and higher prices for utilities AND losing the ability to create jobs and income from building power plants along the CA border to sell THOSE idiots energy instead of letting the next Enron fleece them. The Sierra Club basically runs Nevada now. Congrats folks, you no longer get to vote to determine our states policy via elected officials since the people elected won't listen and the courts override anything we actually want since we're stuck in the 9th Circus Court of Appeals along with CA, OR, WA and HI who have just SOOOO much in common with us.

You show me a solar plant which produces energy as cheaply as nuclear, natural gas or coal and I'll happily vote to change over (and you can just run those other plants at night when there is no sun...) but we get lied to over and over again about what the real costs are. No country in the world (including Saudi Arabia who keeps trying to pull this off) can produce solar power anywhere near the cost of nuclear or nat gas. But we're supposed to believe its already happened because the Church of Global Warming tells us it has.

And isn't it nice that we no longer have a public advocate? Remember when we had a guy who used to challenge utility companies on behalf of the ratepayers? It was only as far back as the 1990s. But apparently the person representing us has been issued to us by the Church right next to our new rate hikes.

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