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Don't Miss The Great Solar Debate: Where Does the Global Solar Industry Stand? Click Here to Register! ×

DOE Regains Its Clean Energy Chops

Steve Leone
October 03, 2011  |  15 Comments

WASHINGTON — Throughout September, Energy Secretary Steven Chu heard the jeers. They came from Republican legislators who used the Solyndra bankruptcy for political fodder. They came from taxpayers who wanted him to halt the loan guarantee program ahead of the Sept. 30 deadline. And they came from Beltway pundits clamoring for a clean energy scandal. Mostly, he sat silent.

But it was on a rain-soaked first day of October when the clouds finally lifted. Fresh off a flurry of nearly $5 billion in loan guarantees closed the night before, Chu allowed himself to listen to the cheers. They came from hundreds of students from universities across the country in an event that also included some of the best young talent from four continents.

This was the awards ceremony for the fifth Solar Decathlon, an event put on by the Energy Department. Chu had the stage on the National Mall, and he had something to say.

Of course, he was up there to commend the students for another highly successful event that served to educate and inspire those who built the solar-powered homes and the tens of thousands who toured them. He was also there to crown the University of Maryland, winners of the 20-team competition.

Perhaps unexpectedly, Chu was also there to set the record straight. He’s been awfully quiet over the past month in regards to Solyndra and the deal that went bad. But on Saturday, Chu reaffirmed his stance on clean energy, and he signaled how the Obama administration views the challenge.

Consider some of his key points from his speech:

On Asian dominance: “China gave $30 billion in government financing to solar last year. These countries have studied our playbook, and they want to beat us at our own game.”

On American ingenuity: “We invented solar cells, wind turbines and the lithium-ion battery, but we no longer lead in manufacturing. We’re working to recapture the lead.”

On historic achievement: “The question we now face is ‘Where do we go from here?’ In past times of national stress, we took the long view.” Chu spoke about endeavors launched during difficult periods. The groundwork for the first transcontinental railroad, the creation of the National Academy of Sciences and the foundation for land grant schools, which eventually led to places like UC-Berkeley and MIT, all came during the Civil War.

On making an investment: “Did we say then that we could not afford to do these things, that government intervention wasn’t needed, that the free market will solve all our problems?”

On retaking the lead: “It’s not enough for our country to invent clean energy technologies. We have to make them and we have to use them, and they have to be sold around the world.”

This speaks loudly against the growing chorus that American manufacturing can’t compete with the lower-cost options in China. Under the current scenario, it may be true. But that’s largely because the deck has been stacked against America’s favor at exactly the moment when the solar industry and other renewable industries started their march toward achieving scale.

The question now is how does the U.S. catch up? Yes, it’s through innovation and, yes, it’s by fusing solar into the building process as the homes on display at the Solar Decathlon show. More than anything, though, it’s about our federal commitment to making it happen. It’s also about our leaders’ ability to explain that to a public that may be skeptical about new solutions to old problems, and the larger bill that may come at the outset.

This past weekend’s final loan approvals also set up an interesting autumn on Capitol Hill. Chu is scheduled to testify before the House energy committee within the next few weeks. The Congressional Super-Committee will also continue to meet as it searches for ways to drastically cut federal spending. A key Republican member of that group, Rep. Fred Upton, is a strong critic of the Energy Department loan program and has shown scant support of federally backed clean energy programs. We’ll also start to see some of the groundwork being laid for many of these large-scale renewable energy projects that once installed would significantly boost clean power capacity.

Maybe Secretary Chu said it best on Saturday when he told the young crowd — the ones he called the next generation of leaders in the clean energy race — that we’re at a crossroads. Which direction we take will be defined by the resolve of those in charge.

If last Friday and Saturday are any indication, things may bode well.

The information and views expressed in this blog post are solely those of the author and not necessarily those of RenewableEnergyWorld.com or the companies that advertise on this Web site and other publications. This blog was posted directly by the author and was not reviewed for accuracy, spelling or grammar.

15 Comments

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ANONYMOUS
October 30, 2012
On solar please use OHMs law and make sure you change DC solar panels to Arun AC appliances

good luck
ANONYMOUS
October 30, 2012
Today 10-30-2012 in the Northeast there is no solar and the battery back up are dead most are good for 6-12 hours a veteran of Katrinia

We can not send our natural gas north due to salt water intrusion

Love Louisiana
Bob Hostetter
Bob Hostetter
October 6, 2011
Please sign this petition directed to Dr. Steven Chu:

http://www.change.org/petitions/secretary-of-energy-dr-steven-chu-cover-50-of-cost-for-residential-photovoltaic-system-installations

Dirty Energy subsidies should be reappropriated for purposes such as this.
Rich Barbarics
Rich Barbarics
October 5, 2011
Govt support was needed to jumpstart the industry to address global warming and it has succeeded to some extent. But the market growth enabled by subsidies caused predictable experience curve price reductions commoditizing certain products like solar panels. Not much can be done about that at this point. However, there are many, many new market segments and opportunities that can be developed but the industry needs to stop emphasizing tired strategies based on finance and size.
John Wabel
John Wabel
October 5, 2011
Trust me this actual does tie together.

The first Star Trek I ever saw was the one about the Zorn. A Zorn is a big lizard/man and it was pitted against Kirk in a fight to the death staged by superior beings. It was a winner- take-all match. The catch was that the combatants came to a planet to fight without weapons. But the planet on which they were deposited had all the necessary resources to secure each combatant's victory if they were only able to discover the individual elements of their weapon and then put them together. Kirk found the elements of gunpowder and used a diamond to blast the Zorn into submission. He found what was hiding directly in front of him.

Solar energy is heat first. We need to heat our buildings. Non-conductive transpired solar collectors were invented and patented by NREL. These inexpensive collectors can be made locally in every town in America and installed with low skilled labor on every flat roof north of the Mason-Dixson line. The volume of jobs associated with NCTSC across the country are in the 10,000. 15%-20% reduction in annual energy savings per building would also add up quite quickly.

The Secretary called for:

On retaking the lead: "It's not enough for our country to invent clean energy technologies. We have to make them and we have to use them, and they have to be sold around the world."

Are we Kirk or are we the muscular Zorn? Do we use what is right under our noses or do we stay the course of muscling our way through problems or do we picking the low fruit that benefits us all?
jo palumbo
jo palumbo
October 5, 2011
Solar electricity is the best available energy source to control a home owners' long term energy bill. That is what really sells it. You can never get charged more each year for a solar array or it's production. Yes the upfront costs give consumers pause but once you map out inflation of the consumer's electric bill over the life (25 yrs.) of an array vs. without the array, the case is so obvious anyone can see it's merits. Understanding photovoltaics, carbon savings, benefits to the grid overall are great pieces of education but will not get many people to sign that contract.
Gregory L Smith
Gregory L Smith
October 4, 2011
We know that solar works, but who has the capital to start a company in new territories surrounded by cheap fossil fuel sources? If government is willing to support novices as sales centers in new areas, such as Oklahoma, you get the benefit of new clients and you can easily show how over time, they gain enormously over their neighbors, since energy is a lifelong liability for the homeowner. FEW homeowners realize just how dependent they are on energy for heating and cooling and for communication and living comfortably. Solar resolves these issues with constant cost/expense planning, and it offers a future savings of each raise in margin, competitors enact, which in Oklahoma is not less than 10% each year. So even if a system costs so much you have to have a 10 year loan, you gain more than the interest costs for every year it is producing. After the ten years, you have saved 100% over your fossil fuel using neighbors! Then, the surprise is that you now have free energy, subject to maintenance and replacement of less effective equipment, that will be significantly less expensive and more productive in the future. The Department of Energy also should seek out Not for Profit Organizations that want to educate the public, on a steady basis, on the uses and benefits of all renewable energy sources, especially those that offer independence from Utilities and rental businesses, in addition to the rental fuel system of fossil fuels. If you rent it, you can't own it, and you also pollute, so why not just own Solar?
We have seen efficiencies rise o=ver the years, but with the Dept. of Energy setting standards for Solar Quality, Longevity, and Efficiencies, we could take the low cost of foreign panels out of the American market, as standards make everyone have a better and safer product that is reliable and insurance qualifying, as well as American made and tested. That is the best strategy for DOE and for American Solar!
kane hoffman
kane hoffman
October 4, 2011
What happenned to Solyndra and Evergreen.
I am a solar installer and owner.
I have seen it happen first hand.
I have a good relationship with the largest manufacturer of solar panels in the world.
We have been buying their panels because they give us great pricing and I liked their representatives.
The cost of panels dropped 20% in about 8 months!
Think about this. Solyndra probably set their business plan with about a 20% profit margin. They were a little more expensive in the first place but had a good niche product.
I was looking into using Solyndra on a job but called my Rep for the Chinese panels and his price was so much better that I did the extra work to put silicone panels on this roof.
When Solyndra went down, I thought immediately I knew exactly what had happened.
Their business plan to make 20% was shot. The largest Chinese Solar producer had cut prices so much that they had no potential to make profit and they quit.
It happened to another great American company, Evergreen, also. They quit this year although they made a high quality innovative product.
I realized that this is a systematic plan to put other manufacturers out of business and take over worldwide, maybe with the help of the Chinese Government(?)
I am presently buying American made and paying a little more to those willing to hang on and compete. It means a little less profit and a little higher cost. Worth it to do a small part to help save our country instead of sell it to China.
JOHN MONTE
JOHN MONTE
October 4, 2011
FOR A SMALL 300W 3HP 110 VOLT AC INVERTER PRICE S OVER $1000 RETAIL CHANGE DC TO AC APPROX $1500.

YOU AHVE TOW DIFFERENT TPES OF SOLOR MARKETS INDUSTRIAL AND COMMERCIAL AND RESIDENTIAL
ANONYMOUS
October 4, 2011
WE ARE NOT IN A RACE lithium comes from China plus solar and wind combine will only account for 20% of alternative energy in the future. The equipment being used for energy production today are jsut more efficient from previous versions.
Keep in mind the earth's environmental system is not uniform including wind and solar and man adds to the out of balance system with man made equipment
Thomas Palmer
Thomas Palmer
October 4, 2011
Right now, the biggest problem I see is manufacturers of panels and inverters, and even installers, charging "by the watt" for the solar array. This is just not honest, and it is not affordable to the average American homeowner. THIS NEEDS TO CHANGE. If our PC computer manufacturers charged by the megabyte back in the 80's, and continued charging by the megabyte, computers would cost in the area of $200,000 each by now, and nobody would have computers.

An inverter should cost no more than about $500 up to a couple gigawatts. A 300W panel should cost approximately the same as a $100W panel. The material cost is the same regardless, yet the price is jacked up without logic or reason. Edison company charges by the watt because we purchase a service from them. Electricity has no mass folks. We should be buying the parts, and not purchasing the electricity that we will be producing ourselves. It's just plain nuts, and this is why we're losing the battle.

Probably 2% of the folks here can actually budget in the array, while probably more than 80% of us would like to. So, stop suppressing us and get real. China is NOT kicking our butts.... We're kicking our own butts.
John Blittersdorf
John Blittersdorf
October 4, 2011
Joel,
You described our national situation perfectly. We need to do it and buy local. Best thing we can do for our economy. I work in Rutland, Vermont and there is talk of it being the "solar city". My solar installation company has been located in the city for 15 years and I only have 3 installations within the city limits! It is long overdue that we walk the talk and get going.
Joel Fairstein
Joel Fairstein
October 4, 2011
OP, can you reveal your sources of renewable campaign kickbacks to the Obama administration? If I recall correctly, he was elected largely on populist appeal.

What separates his administration from his predecessors is independence from the big oil lobby.
Joel Fairstein
Joel Fairstein
October 4, 2011
We've been scapegoating China long enough for our problems. In the US, we have become risk-averse and just plain lazy while other cultures have gladly leapt into the technological void we've left open. Except for a small minority, our population no longer has the critical thinking skills to understand renewable energy, its efficiencies, and its deployment. What happened to us?

Let's stop blaming others for our myopia.
John Bronson
John Bronson
October 3, 2011
The OP wrote:

"This speaks loudly against the growing chorus that American manufacturing can't compete with the lower-cost options in China. Under the current scenario, it may be true. But that's largely because the deck has been stacked against America's favor at exactly the moment when the solar industry and other renewable industries started their march toward achieving scale."

The stacked deck is China's currency manipulation. Until that issue is resolved, money given to US solar manufacturer's will continue to go down the drain.

The Obama admin is smart enough to realize this, but they don't care. As long as they get some of that money kicked back as campaign donations they're happy.

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Steve Leone

Steve Leone

Steve Leone has been a journalist for more than 15 years and has worked for news organizations in Rhode Island, Maine, New Hampshire, Virginia and California.
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