Solyndra bankruptcy is aberration, solar power executives say

National media "chatter" surrounding the much-publicized bankruptcy of Fremont, Calif., solar panel producer Solyndra Inc. and the loss of $535 million in federal loan guarantees is hurting more successful renewable energy companies and obscuring the new industry's success, solar executives said.

In a conference call Thursday, members of Californians for Clean Energy & Jobs, a coalition of green businesses and environmentalists, said they wanted to put the Solyndra scandal into context. The controversy led to high-profile hearings in Congress and widespread Republican party criticism of the Obama administration.

The solar executives stressed that solar panel costs have plummeted, fueling increased residential and commercial demand for renewable energy. Additionally, the solar industry has come up with creative financing programs that allow homeowners to get off the utility electric grid without having to invest large amounts of money in buying rooftop solar systems.

"Solar power is becoming more affordable every day," with costs down 30% in the last year, said Arno Harris, chief executive of Recurrent Energy in San Francisco, a large developer of solar photovoltaic panel projects. "We need to look beyond the failure of one company and see the tremendous success."

Solyndra, whose high-tech plant was visited by President Obama, Vice President Joe Biden and former California Gov. Arnold Schwarzenegger, made less than two-tenths of 1% of solar panels on the market, said David Hochschild, vice president of Solaria Corp. in Fremont, which makes photovoltaic modules. The solar industry, he said, has grown by an average of 65% per year the last decade.

Sungevity Solar Home Specialists of Oakland has tripled the number of employees to 300 this year, said President Danny Kennedy. The company puts solar systems on homes without requiring any upfront payments from customers. It then leases the equipment, usually at far less cost than the electric bills they used to get, Kennedy said.

"This is a very affordable way for consumers to control costs at home, particularly in this uncertain environment," said Lynn Jurich, president of SunRun Inc. of San Francisco, which also installs and leases home solar systems.

Despite its growth and success, the solar industry still needs support from government in the form of tax credits, loan guarantees and subsidies, the executives said.

"Those programs are critical in generating success," said Hochschild. "Solar is on the cusp of playing a large role in mainstream markets."

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Photo: Solar panel construction at the Sacramento Municipal Utility District in 2009. Credit: Rich Pedroncelli / Associated Press.

 

Gov. Jerry Brown asks PUC to pass electric bill surcharge

 

Gov. Jerry Brown is asking his appointed members of the California Public Utilities Commission to come up with a way to continue tacking a surcharge on residential and commercial electric bills to pay for an energy efficiency program that did not get renewed by the Legislature last month.

The $400-million-a-year program is set to expire at the end of the year.

"We cannot afford to let any of these job-creating programs lapse," Brown said in a letter to PUC President Michael Peevey. The surcharges -- $1 to $2 a month on a typical residential bill -- pay for a 14-year-old levy called the Public Goods Charge. It pays for retrofitting structures to make them use less energy, for renewable energy subsidies and for research.

"I request that you take action under the commission's authority to ensure that programs like those supported by the Public Goods Charge are instituted -- and hopefully at their current levels," Brown wrote to Peevey.

The PUC will consider opening a legal and administrative proceeding on Brown's request at its Oct. 6 meeting in San Francisco, said spokeswoman Terrie D. Prosper.

"We're pursuing the fastest path to consider maintain funding levels for these programs and policies already underway," Prosper said.

Some environmentalists said they're supporting the governor's effort to revive the Public Goods Charge.

However, Sierra Club lobbyist Jim Metropulos lamented that Brown did not push earlier and more energetically to get enough bipartisan legislative support to pass the bill.

"We were disappointed that the governor put [his bill] out late, if it was one of his priorities," he said.

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Photo: A man looks at energy efficient washing machines at a mall in Baldwin Hills. Credit: Katie Falkenberg / For The Times

Solyndra execs won't answer questions during hearing [Updated]

 
Solyndra Inc.'s chief executive and chief financial officer will invoke their 5th Amendment rights and not answer questions during a Friday hearing before a House investigative committee, their attorneys said.

Attorneys for Solyndra CEO Brian Harrison and W.G. “Bill” Stover, the company’s chief financial officer, sent letters to the House Energy and Commerce Committee’s investigative subcommittee Tuesday saying the two executives would not answer any questions during the hearing.

“I have advised Mr. Harrison that he should decline to answer questions put to him by this subcommittee based on his rights under the Fifth Amendment,” Harrison’s attorney, Walter F. Brown Jr., said in a letter to Rep. Clifford B. Stearns (R-Fla.), the committee’s chairman, and Rep. Diane DeGette (D-Colo.).

“This is not a decision arrived at lightly, but it is a decision dictated by current circumstances,” Brown said in the letter.

Agents with the FBI and Energy Department’s inspector general executed a search warrant at Solyndra’s Fremont headquarters on Sept. 8, two days after the company declared bankruptcy despite receiving $528 million in federal loans. The FBI and Energy Department have declined to say what prompted the investigation or who it is targeting.

Stover's attorney, Jan Nielsen Little, said in a letter to the committee that the criminal investigations prompted the decision for Stover to decline to testify. Stover still intends to appear at the hearing, Little said.

"Under these circumstances, Mr. Stover must invoke his rights under the Fifth Amendment of the U.S. Constitution," Little wrote. "It would be irresponsible for anyone in his position not to do so."

Solyndra was the first recipient of Energy Department loans under the Obama administration intended to spur economic growth and create jobs through investments in green technology. To date it is the only Energy Department loan recipient to cease operations.

[Updated at 2:37 p.m. Solyndra released a statement that acknowledged the executives' plans to take the Fifth, but said the company "is not aware of any wrongdoing by Solyndra officers, directors or employees in conjunction with the DOE loan guarantee or otherwise, and the company is cooperating fully with the office of the United States Attorney for the Northern District of California in its investigation." The company also said it "believes that the record will establish that Solyndra carefully followed the rules of the competitive application process, starting in December 2006 under the Bush administration and continuing under the Obama administration."]

[Updated at 4:09 p.m. Stearns and Rep. Fred Upton (R-Mich.), chair of the House Energy and Commerce Committee, released a joint statement criticizing the executives for choosing not to answer their questions. "Who exactly are Solyndra's executives trying to protect and what are they trying to hide?" the statement said. The Solyndra executives will still be asked to attend the meeting and will be sworn as witnesses, despite the announcement that they won't answer questions, the statement said. "We would encourage Mr. Harrison and Mr. Stover to reconsider this effort to dodge questions under oath and hide the truth from those American taxpayers who are now on the hook for their $500 million bust," Stearns and Upton said.]

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Photo: FBI agents leave Solyndra with boxes of records during a Sept. 8 search. Credit: Associated Press

Renewables are the world's fastest-growing energy source

The good news: renewable energy -- in the form of solar power, wind, hydroelectric and other types -- is the world's fastest-growing energy resource. That's according to the U.S. Energy Department's International Energy Outlook 2011, released this week.

The not-so-good news: World dependence on fossil fuels will remain, largely because of tremendous leaps in demand from China, India and other emerging economies. That increase in demand will be so great, Energy Department analysts say, that renewable energy will see only a slight increase in its share of the world's energy sources, rising from the current 10% to 14% in 2035.

Global use of petroleum and other liquids is expected to soar from 85.7 million barrels a day in 2008 to 112.2 million barrels a day in 2035. The energy outlook report said that increase will primarily come in transportation, "where, in the absence of significant technological advances, liquids continue to provide much of the energy consumed."

Linda Doman, international energy analyst for the Energy Department, said that the outlook is not so much a prediction of where energy use will really be by 2035, but a projection of where it could be if current technology and governmental policies remain unchanged over the next 25 years.

Doman added that, despite the relatively small increase in the share of renewables in the outlook report, her agency still considered the development of alternative energy as second in significance only to the ravenous growth in energy demand from China and India and other countries.

Still, Doman said, "you won't get something like 50% of your energy from renewable sources unless something big changes, unless there is a technological epiphany."

-- Ronald D. White

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Caption: Mirrors reflect the sun, concentrating its energy into a transom of pipes, at Ausra Inc.'s Kimberlina Solar Thermal Energy Plant in Bakersfield. Credit: Robert Gauthier / Los Angeles Times

California approves pay-as-you-drive 'green' insurance program

State regulators have approved an auto insurance policy that rewards car owners for driving less and potentially emitting fewer pollutants into the atmosphere.

The new program, called SAVE, will go on sale in January by CSE Safeguard Insurance Co. Motorists will be charged only for the number of miles they drive.

"This is a true pay-by-the-mile program, where our customers pay for the miles they drive," said CSE President Pierre Bize. "Not only are drivers reporting their actual mileage, they are reimbursed for the difference between their estimated and actual annual mileage."

CSE is the fourth California auto insurer to offer some version of a pay-as-you-drive policy since the state Department of Insurance approved the concept in 2008.

Other companies offering such policies include the Automobile Club of Southern California, State Farm and Sequoia Insurance Co. of Marin. Their policies base rates on bands of miles driven, not the exact number of miles a car travels.

"This environmentally conscious program unites economic savings with emissions reduction in an effort to reduce traffic congestion and greenhouse gases," said California Insurance Commissioner Dave Jones. "I encourage more insurance companies to start offering pay-drive options to policyholders."

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Photo: California Insurance Commissioner Dave Jones. Credit: Katie Falkenberg / For The Times 

FBI, Energy Department raid offices of solar-panel maker Solyndra

The FBI and the Energy Department's inspector general's office are executing a search warrant at the Fremont, Calif., headquarters of solar panel maker Solyndra. The raid came just two days after the company declared Chapter 11 bankruptcy, a move that raised serious concerns about the Obama administration's granting of a $500-million-plus federal loan guarantee to Solyndra in the fall of 2009.

FBI Public Affairs Specialist Peter D. Lee confirmed that the company's headquarters had been targeted, adding that the raid was still underway late Thursday morning. Lee said he was unable to disclose further details about what the FBI and the Energy Department was hoping to find.

Lee said that the raid documents were under seal.

Solyndra is a manufacturer of solar power systems for rooftop applications on commercial buildings. Earlier this week, the company said in a press release that "global economic and solar industry market conditions" had forced it to suspend its manufacturing operations. The company has laid off its 1,100 full-time and temporary employees.

"Despite strong growth in the first half of 2011 and traction in North America with a number of orders for very large commercial rooftops, Solyndra could not achieve full-scale operations rapidly enough to compete in the near term with the resources of larger foreign manufacturers," the company said.

Solyndra was one of about 40 alternative energy projects funded over the last two years through an Energy Department loan program that helped companies involved with major wind, solar, nuclear and ethanol projects. At the time, the Energy Department said that it expected the combined projects to create about 60,000 jobs.

President Obama had visited Solyndra for a tour of the factor in May 2010, even as outside observers, such as PricewaterhouseCoopers, were already raising doubts about the company's ability to survive.

Solyndra had another Obama connection in that it was backed by Tulsa billionaire George Kaiser, a key supporter of the president.

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-- Ronald D. White

Photo: FBI agent guards the Fremont, Calif., offices of Solyndra. Credit: Associated Press

SolarCity to install solar on military homes, doubling residential solar

SolarCity, one of the country’s largest residential solar panel installers, plans to double the amount of rooftop solar systems across the country by setting them up on 160,000 private military homes and other buildings.

The $1-billion SolarStrong program announced Wednesday would span facilities at 124 military bases across 33 states. SolarCity has already lined up a conditional commitment for a $344-million loan guarantee from the federal government to execute the plan.

The multi-year effort would eventually leave 371 megawatts of photovoltaic systems atop family homes, community centers, administrative offices, maintenance buildings and storage warehouses, SolarCity said.

The first SolarStrong project is in full swing at Hickam Communities at the Joint Base Pearl Harbor-Hickam in Hawaii, set to provide electricity to 2,000 military homes, the company said.

SolarCity said it hopes to hire and train veterans and military family members to install and maintain the systems, boosting domestic jobs.

The San Mateo, Calif., company has had several ambitious moves this year, including getting involved in electric vehicle charging technology and expanding to the East Coast.

In June, Google Inc., in its largest green investment yet, created a $280-million fund to help SolarCity pay for installations and maintenance costs in exchange for a cut of customer payments.

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Photo: SolarCity workers install solar panels on rooftops at Hickam Communities at Joint Base Pearl Harbor-Hickam, where developer Lend Lease and SolarCity have partnered on the first SolarStrong-eligible project. Credit: Business Wire

California solar panel manufacturer ceases operations

The California solar panel manufacturer that received a high profile $535 million Energy Department loan guarantee announced today that it was ceasing operations, laying off 1,100 workers and will file for bankruptcy in the coming days.

Fremont-based Solyndra said that it had been rocked by stifling global economic conditions and a slow recovery from the great recession. It had also faced heavy competition from Chinese firms that were undercutting it on costs.

The company's website had not been updated to reflect the development. A terse voice mail announcement on one of Solyndra's contact information telephones said only the following: "Solyndra announced today in a press release that it has ceased operations and intends to file for chapter 11 bankruptcy protection," advising customers on how to contact the company for further information.

It was quite a fall from late May 2010, when the company hosted the president on a factory tour. Company officials announced then that they expected to be adding new employees. But in July of this year, the company was being grilled on Capitol Hill by House Republicans who said that there were indications that the company was in a weak financial condition and wasn't a good choice for the loan program.

Solyndra would become the third such company to file for bankruptcy in recent days. Spectrawatt Inc. of Hopewell Junction, N.Y., filed for Chapter 11 bankruptcy on Aug. 19. Evergreen Solar Inc. of Marlboro, Mass., filed for Chapter 11 bankruptcy on Aug. 15.

UC Davis to offer 'green' agriculture degree

 
With rising public interest in where our food comes from -– as well as in "green" living –- it makes sense that higher education would be eager to attract students who want to tap into the intersection between these two fields.

So UC Davis – that bastion of all things agricultural – is launching an undergraduate major focused on agricultural sustainability.

The degree, a bachelor of science in sustainable agriculture and food systems, aims to give students a deep understanding of the "many issues facing modern farming and food systems, including production, processing, distribution, consumption and waste management," according to an announcement by the university.

School officials added that "students will focus on the social, economic and environmental aspects of agriculture and food – from farm to table and beyond. The program is designed to help students obtain a diversity of knowledge and skills, both in the classroom and through personal experiences on and off campus."

Some UC Davis students have already begun transferring into the new major, the school said. UC Davis will start taking applications for the major from freshmen and transfer students later this year.

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Photo: Bees on a flower in a field near Dixon, Calif. Credit: Associated Press

Geothermal-heated hotel planned for Mammoth Lakes

An eco-friendly hotel and housing complex heated by geothermal water will be built in Mammoth Lakes, a London-based developer said.

Public officials have approved construction of the 5.5-acre Handmade Hotel Mammoth View, developer Britannia Pacific Properties said. Britannia will now put together architectural plans with the intention of breaking ground by 2013.

The boutique hotel would have 54 rooms. The project would also have 28 cabins and 24 lofts, all for sale at prices ranging from $500,000 to $1 million. Radiant heating for the buildings and some surface areas of the complex would come from a well 1,500 feet deep that would pump and circulate hot water. After circulating, the water would be pumped back into the ground through a second well.

Other planned green features include capturing rain and snowmelt for irrigation and using timber cut at the site.

“Mammoth’s amazing natural resources, particularly the hot springs, inspired us to research ways to utilize them for the good of the environment.” said Britannia Pacific President Eva Hill.

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Photo: Hot springs near Mammoth Lakes. Credit: Los Angeles Times

 

Coca-Cola beefs up green fleet

The world's largest soft-drink maker, Atlanta-based Coca-Cola Co., wants you to know that your beverages may be delivered by a new hybrid or electric truck.

Coca-Cola has nearly doubled the size of its greener fleet of trucks since 2010, company officials said, and they are making the claim of having the nation's largest low-emissions bottling fleet at a 1 p.m. event in downtown Los Angeles today.

The event will be held at Coca-Cola Refreshments of Southern California at 12th and Birch streets in downtown Los Angeles.

"We as a company are working very hard to get sustainability into our business practices, so we are transforming a good portion of our fleet with green technology with the intent to push our carbon footprint down and get better fuel efficiencies," said Tim Heinen, vice president of field operations for Coca-Cola's western region.

"By the end of the year, we will have more than 740 alternative-fuel vehicles operating throughout North America, and about 40% of them will be right here in California," Heinen said.

The Coca-Cola fleet currently has 691 hybrid electric medium-duty trucks, for example, with 43 more on order, he said

The total Coca-Cola fleet has about 10,000 trucks, Heinen said.

Ron Stassi, fleet manager for the company's western region, added that Coca-Cola hopes to be rolling out other new technologies, such as forklifts powered by hydrogen fuel cells for use in its warehouse in San Leandro.

He said the newer trucks have helped the company reduce its fuel costs by 22%.

Heinen said that more customers care about sustainability practices and are making purchases based on the efforts that businesses put into reducing their emissions footprint.

"We know that it does matter to people, and we want to show that we are trying to make a difference. We are committed to it," Heinen said.

-- Ronald D. White

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