Category: renewable energy

  • EV v ICE, What’s the Price?

    EV v ICE, What’s the Price?

     Every couple months something pops into my news feed or email about how bad or expensive Electric Vehicles (EVs) are compared to the olde Internal Combustion Engine (ICE machines).  (See cartoon from Yale Climate Connection Don’t be fooled: Electric vehicles really are better for the climate.)

    One that popped up was from a very biased web site (can’t call it a magazine or journal). The cost for EVs to operate were $17 per gallon, equivalent. It relied on an actual study, and then changed out all the facts.

    First, it assumed that you only charge away from home, never at home where it’s much cheaper. Some 99% of EVs are charged at home or (free? at the office) almost all the time. By this assumption, it would assume that the home did not use solar panels which would make the home charging costs even cheaper. Then, they added in all possible externalities for EVs including government subsidies. Wah-la, the magical cost per gallon for EVs is 5 to 8 times ICE machines. (non-news site intentionally not cited)

    Why then, wouldn’t the ICE machine side of the equation include government subsidies to oil and gas. Several studies show that coal, oil & gas get at least $1T in subsidies every year, and the equivalent of about $15T including indirect subsidies and extenalities. 

    If you really want to know the comparison between EVs & ICE vehicles, look at  SkepticalScience: https://skepticalscience.com/evs-really-better-climate.html  … they provide some of the best sources and best analysis. Because of the cost of production (an EV can weigh twice an ICE because of the batteries), it takes about 22 months before breakeven — emissions-wise. But after that the emissions are massively less for the EV. Figure about $1 per gallon equivalent.

    If you want to do an analysis of an EV and an ICE machine, consider how you will use the vehicle and check out these sources. 

    Total Cost of Ownership is a big question as well. The raw materials to make each type of car, where it is made, shipping, etc. There are a few sources that work on this. (Sites/sources on lifetime costs tend to be overly simplified or overly complicated.)

    Dealers don’t like EVs because there’s not really any maintenance. No urgent need to see the customer every 6 months to 1 year. No oil to change, no belts to replace. Only fill the windshield washer tank. The brakes have low usage because of regenerative power is used to slow the vehicle by generating power back to the batteries. The dealers will continue to lose touch with their customers, and the trade-in that comes with it.

    But the big reason for going EV is making a conscious and continuous effort to move away from fossil fuels. Fossil fuels are not sustainable. The air pollution from burning coal, oil and gas causes health issues and premature deaths of millions of people worldwide every year.  To move toward sustainable solutions, we have to move away from those that aren’t. 

    Two points that often come up is: 1) Renewable Energy (RE); and, 2) electric mix for the power grid and sources of materials like lithium & cobalt for EV. Renewable energy is growing at crazy rates and it is consistently far cheaper (even with battery augmentation) than coal, oil or nuclear. Battery technology (and such) will continue to improve, much like computer chips and hard drives. Products continue to be built with full life cycle designs so the materials in EVs will (soon) be completely recycled. 

    We need to electrify everything to reduce pollution and greenhouse gases. It took 120 years to build a world economy powered by coal, oil, gas, nuclear and hydro. Over time we need to completely replace fossil fuels. Many people thought we could simply wait until we started to exhaust the (readily available) supplies of fossil fuels and high prices would recalibrate the economy toward more sustainable methods of power and transportation. Waiting another 20, or even 5 years, to act is no longer an option.

    #EV #BreakingTheICE #Renewables #RE100 #CarbonEmmissions #CarbonFootprint

  • Renewable Energy and IRA 2022

    Quick take for Inflation Reduction Act 2022

    The Inflation Reduction Act is a huge
    legislation act passed in 2022. It includes increases in taxes (mostly
    corporate related), limits to some spending (like drugs), and a lot toward
    energy efficiency and renewable energy. See the overview on Wikipedia: https://en.wikipedia.org/wiki/Inflation_Reduction_Act_of_2022

    Renewable Energy Incentives. The IRA has raised and extended the
    30% investment tax credit to qualified renewable energy investments. There are
    many limitations and additions. Look for updated blogs here and get informed
    from the IRS and Treasury. 

    The 30% ITC for 10 Years. The 30% Investment Tax Credit was being
    reduced over time. The rate had dropped to 26% but was held at 26% through the pandemic.
    Now 30% is held through 2032 before phasing down. In 2033 and 2034, the ITC
    rates will be 26% and 22% respectively. If no further legislation is passed the
    ITC would phase out after 2034.

    Certainty. These 14 years of Investment Tax
    Credit provides an amazing amount of certainty to businesses and residential
    customers as well as the whole solar manufacturing and installation complex.

    Something for Nonprofits and Governments. Note that the ITC applies to more
    than solar. It applies to qualified batteries, wind and more. One big complaint
    with the Investment Tax Credit of the past is that it only applies to residents
    and businesses that pay taxes. Nothing for low-income who pay no income tax,
    nothing for nonprofits, nothing for government. The IRA law provides for
    rebates to nonprofits and governments that install renewable energy systems. This
    is a 30% rebate. The details of this aspect of the law are still being refined
    as of November 2022, it would appear. So, check with your favorite tax advisor
    on how to apply for the rebate before jumping into the investment.

    Strategic Business Planning Company
    (and SustainZine) developed a calculator and produced blogs and videos in 2020
    related to solar for residential and commercial. That means that when you work
    through the numbers using 26% ITC, you should come up with a much more
    profitable investment. The ITC is 30% and power inflation is wicked high, maybe
    4% or 5% forecasted. The residential calculator will now work for nonprofits
    and governments at 30% rebate (not ITC)! This is a game changer. Without any tax incentives, a solar or wind installation is just a good thing to do, and an okay investment. Now it will be a good investment as well as (still) being a good thing to do for the future and for the planet.

    Sometime soon we at SBP will revisit the
    articles and calculators for the new tax laws under the IRA. For now, enjoy the
    options that are provided for us all to be much more self sufficient and reduce
    our energy bills.

    For anyone (or nonprofit) considering
    renewable energy, it is probably a good investment. For most businesses, it is
    a crazy good investment, that just got a little bit better.

     

    The US Treasury Department offers a Fact Sheet on IRA Clean
    Energy Incentives: https://home.treasury.gov/system/files/136/FactSheet-Implementing-IRA-Climate-CleanEnergy-TaxIncentives.pdf

    Here’s a pretty good overview of the law: https://www.mofo.com/resources/insights/220810-369bn-climate-deal-americas-path-to-climate-resilience

    #SustainZine #Solar #RenewableEnergy #SBPlan #IRA2022 #InflationReductionAct

  • The EV Hurricane Disaster: a 1-sided scenario, part 2

    The EV Hurricane Disaster: a 1-sided scenario, part 2

    Read  The EV Hurricane Disaster: a 1-sided scenario, Part 1 on ScenarioPlans.com (also DelphiPlan.com). The EV disaster article analyzes a viral email that talks about how horrible it will be when a hurricane is storming into a population center and the electric vehicles are all stuck on the road with no possibility for charging.

    PART 2 of this discussion is from SustainZine: The EV Hurricane Disaster: a 1-sided scenario, part 2. (Repeated here for convenience.)

    (more…)
  • Solar Prices Dropped off a Cliff and Into the Ocean

    Here’s a great article in Clean Technica by   on the falling prices of solar (PV). The cost per watt is the key measure to follow. Basically a rule of thumb is that $3 per Watt installed should be profitable, before any tax credit considerations. In 2006 the cost was $3.50 per watt for the panels. Now prices have dropped below $0.50 and would be lower if there wasn’t a trade tiff going on with China.  Even with $1 to $2 per watt installed, the prices are getting to be crazy low. The Investment Tax Credit dropped to 26% percent in 2020 and will drop to 22% in 2021, but the installed costs after tax benefits should be less than $2 per watt. That’s a crazy profitable investment, especially for businesses. (See our discussion and  Solar Calculator on the residential and business PV investments.)

    We’ve been wrong several times in the last couple years. We’ve said that the real breakthrough in the home solar system will be the battery technology. Well, that is true. But we have underestimated the cost curve drop with PV. True, it is not breakthrough technologies, it is learning curve of production and economies of scale.

    When we talk about the drop of costs in PV we still think that the amount of power that can be squeezed out of a square inch of solar exposed roof is probably not going to significantly improve for several years. Don’t delay your solar investment decision for a breakthrough.

    At this point our assessment of batteries is that the technology and the prices are converging to make batteries a better investment. Depending on your need to be always powered, batteries are probably worth waiting. Probably 3 to 5 years. Maybe design the system with batteries in mind. Maybe design the system for expansion. Expect that you will charge your electric vehicles, for example. If you have extra roof space, expect that you will power your neighbors house.

    Just a reminder, not all photovoltaic (PV) is created equal. Check the warranties and the depletion rates of your panels. 

    #Solar #RE #RenewableEnergy #RE100 #SolarInvestCalc

    SolarInvest2020 Profit Calc

  • Solar Investment is Crazy Profitable for Businesses and Good for Homeowners

    [Update. The Inflation Reduction Act 2022 has raised and extended the 30% investment tax credit to qualified investments. There are many limitations and additions. See our Blog post here. This makes all the financial discussions below much more profitable. Also, higher inflation and higher power inflation. The below Article was originally published in Summer of 2020.]
     
    SBP has done several detailed financial calculators for analyzing both residential and commercials solar projects. SustainZine has a main web page on Solar Profitability where
    we discuss examples from our Solar Profitability Calculators: https://www.sustainzine.com/p/solarinvest.html
    Here are articles – and YouTube videos – discussing
    both:
    1. Quick Take on 
      Residential Solar
      Solar
      Invest 2020: Do Good and Save Money Too
      … See the video related to
      Residential here:
      Solar Residential: Good Investment & Doing Good
    2. Full Financial AnalysisSolarInvest2020:
      Residential Solar is Good, but Commercial Solar can be Crazy Profitable!

      See the video related to Commercial/Business here:
      Solar for a Business can be Crazy Profitable: Do
      Good by Doing Well
    YouTube Video on Residential: Solar Residential: Good Investment & Doing Good https://youtu.be/p0pqg4ZeTjY
    Dr Elmer Hall talks about the doing good and making money at
    residential Solar. He discusses that subtilties of the financial analysis for a
    homeowner, and why it typically is a far better decision than a typical profit
    analysis would suggest. #SustainZine #Solar #RenewableEnergy #SBPLan
    YouTube Video on Commercial Business: Solar for a
    Business can be Crazy Profitable: Do Good by Doing Well 
    https://youtu.be/ulryBkhsKWg

    Dr Elmer Hall talks
    about the doing good and making money by a business installing Solar. He
    discusses the financial analysis for a business and why it probably is such a
    great investment. The investment for businesses has huge tax savings. Plus, the
    money to pay for power to operate the business is already committed if the
    building is used. This is Part 2: See part 1 related to Residential as well.
    #SustainZine #Solar #RenewableEnergy #SBPLan #Profitability #CrazyProfitable