Clean Energy Future by Arno Harris

Who Wants to Be America's Least Green REIT?

OK, we're there. For property owners, the question is no longer "are you green," but rather, "how green are you." And, if you aren't getting greener, "why not?" 

After all, "green" has saturated every sector of the real estate market.  Perhaps we also note with a bit of trepidation that "green" has begun to hit the pinnacle of success as a favorite buzz term if not a general conversation topic.  "Green" was even featured in a recent Sears commercial. 
 
I came to this realization after reading a recent article headlined, "NVR named one of the least green homebuilders in country." 
 
The article, which stemmed from a recent study called "Greener Pastures for America’s Homebuilders; A Survey of Sustainable Practices" by the Homebuilding Industry, took an in-depth look at the sustainable policies, programs and performance among thirteen of the nation's largest publicly traded homebuilders.
 
The point here is that I think we all can assume that similar studies on sustainable practices surrounding commercial property owners/developers are right around the corner.  What's more, I'm confident in saying that no self-respecting commercial real estate owner or investor wants to wake up to a headline reading "[insert company] named least green commercial property owner/developer in the country."
 
The message is pretty simple:  It's no longer those who are green, but rather those who aren't green that are going to make the dubious headlines to come.

ITC Expiration Cost = 39K Jobs & $8.1B Economic Loss

As we approach the mid-year mark, the push to renew the solar Investment Tax Credit (ITC) is reaching a critical moment. Most developers, construction lenders, and banks are beginning to put the brakes on new projects. That's because the ITC can only be claimed on systems that are in commercial operation before the expiration date of December 31.

As soon as next month, the solar industry will begin the slow and painful process of winding down--an inevitable result if the ITC is not renewed soon.

The solar industry has been pushing for an 8-year extension of the ITC. What's odd is that the proposal enjoys broad bipartisan support--renewable energy is a "cross the aisle" issue now, after all. Yet bill after bill this year (so many in fact that I've even lost track of them all) has failed to pass both the House and the Senate.

I've heard a hundred explanations for why this is the case. But frankly none of them make much sense. If you haven't read Tom Friedman's recent column about the issue called Dumb as We Wanna Be, I encourage you to read it now.

If you want some sharp insights on the hard costs of letting the ITC expire, take a look at the report prepared by Navigant on the Economic Impacts of the Tax Credit Expiration. The report explains in painstaking detail what will be lost if Washington just lets the ITC go: 39,400 solar jobs and $8.1B in economic activity.

As painful as those numbers are, they're not what worries me most. It's the damage such a slowdown will do to the progress we've made over the last 7 years in US solar. It's the damage to Wall Street's confidence that we and our industry colleagues have spent years helping to build. It's the damage that will be done to the already tattered reputation of our country in the eyes of the world in terms of environmental leadership.

If we can't do something as simple as this--how can we possibly hope to help the world address climate change where the issues and politics are far more complex and embedded?

A 6-year ITC extension bill (HR6049) just recently passed the House. If you want to do something, VoteSolar has set up a simple online tool that enables you to easily contact your Senator to show your support. Take a moment and let them know this is important.

SFPUC Awards 5MW Project to Recurrent Energy

San Francisco's covered reservoirs have long been eyed by the local solar community as a perfect site for a massive solar array. So we were pretty excited when the SFPUC invited us to participate in a competitive bid to develop and operate a  5MW solar project on the Sunset Reservoir and Pier 96 supplying electicity to the City via a power purchase agreement (PPA).

The Mayor's office announced the project recently and revealed the news that the project had been awarded to Recurrent Energy. We're thrilled to be a part of such a milestone solar project. When completed in mid-2009 it will be the third largest solar power system in the US overall, the largest system in California, and the largest municipal solar power system in the country. The completed array will use nearly 30,000 solar panels and will cover roughly 15 acres--increasing the city's solar generation by 300%.

Because of its scale, the announcement has been getting some pickup in the press. Until now, we have been keeping relatively quiet about the project as we're still negotiating the final agreements with the city following the bid award. And, the agreements will utlimately have to be approved by the Board of Supervisors.

PS: For those who are interested, here's a link to a satellite image of the Sunset Reservoir.