From: Essential Information <ei@igc.apc.org>
Newsgroups: sci.energy
Date: 31 Dec 92 12:38 PST
Subject: Re: Energy Ideas -- Solar Power
Nf-ID: #R:cdp:1466300121:cdp:1466300124:000:4198
Nf-From: cdp.UUCP!ei    Dec 31 12:38:00 1992


FINANCING SOLAR ENERGY PROJECTS

The greatest obstacle to the use of solar power is the lack of
capital to purchase the systems.  As discussed in our last issue
("Opportunities Abound for Financing Lighting Retrofits"), a number
of financing options exist which can cover some or all of the
initial purchase price.  For some time, the federal government has
been the primary source of funding for solar projects.  However,
lower costs for solar systems, as well as higher environmental
standards, inefficiencies and expenses in constructing central
power plants and a growing awareness of environmental problems,
have brought about a variety of options for funding solar projects.

Federal Funding

The Department of Energy's Institutional Conservation Program (ICP)
provides 50 percent matching funds for energy conservation projects
in schools and hospitals.  Since 1979, the program has allocated
$860 million, with resulting cumulative savings of $2.8 billion. 
An area of focus for ICP is energy used to heat swimming pools,
which can be provided by solar thermal energy.

Demand-Side Management Programs

Some utilities are experimenting with solar power to manage their
electric demand.  New buildings and equipment may include
photovoltaic systems to offset the amount of electricity required
from the utility.  Utilities might begin to generate electricity
on-site, charging for the equipment, at each building rather than
provide central power.  For example, as mentioned earlier, the New
York Power Authority installed a PV-powered lighting system at the
Ally Pond Environmental Center.  In addition, Niagara-Mohawk
installed a PV system on the roof of the Naval Building in Latham,
New York.  Contact your local utility to determine whether they
will assist you in using solar energy.

Multi-State Purchasing

According to John Dunlop of the Interstate Solar Coordinating
Committee, states can significantly reduce their purchasing costs
through economies of scale.  If a few jurisdictions or states
jointly purchase the same equipment, such as flashing arrow boards,
they will obtain lower prices for high-volume orders. Oil
Overcharge Funds

Oil overcharge funds are monetary settlements returned to the
states as a result of litigation by the U.S. Department of Energy
against certain oil companies for alleged violations of price
controls in effect between 1973 and 1981.  The courts returned
these funds to the states for use in certain energy programs deemed
to provide restitution to citizens aggrieved by the overcharges. 
Some states, such as Texas, have used these funds for solar
projects.  Among the projects to receive funding were a PV lighting
system for a park, a system to provide power to a nature center,
and a facility for solar detoxification of industrial waste water.
Contact your state energy office (or secretary of state) to
determine whether these funds are available for solar power
projects.

State Energy Office Funds

Some state energy offices have provided funding for some solar
projects.  Contact your state energy office to determine whether
you may qualify for funding.

Leasing Equipment

Another possibility is leasing photovoltaic equipment.  As
mentioned on p. 8, the Illinois Department of Transportation is
renting flashing arrow boards from a company and is paying for them
with the money formerly used for operating and maintaining the
diesel equipment.

Leasing Contracts

In a leasing contract, a vendor will install solar equipment and
then charge a rate for the electricity provided, thereby repaying
their investment in the equipment.  For example, the Department of
Defense (DOD) wants to replace the diesel generators which supply
energy to island bases, such as Guam or San Clemente, with PV
systems.  The cost of their diesel generators now ranges between
20 to $1.00 per kilowatt-hour.  Solar energy contractors state
that a PV system would cost between 20 to 35 per kilowatt hour. 
DOD could have a contractor install PV systems to power their
island bases and pay the rate charged by the solar companies.  Upon
completion of the project, this yields a savings of up to 65
percent in electricity costs for the entire base.