There are new economic incentives available through Massachusetts utilities companies for businesses who upgrade industrial equipment to achieve better energy efficiency. Mass Save has organized resources outlining the different incentives offered by utilities companies and incentives for new constructions and retrofits for industrial customers. Mass Save has also helped stimulate the energy rebate program by partnering with NSTAR to increase incentives by up to 50% to help reach the governor’s goals by the end of 2010. NSTAR is just one of several Massachusetts utilities companies which offer rebates for adding energy efficient equipment to your manufacturing facility.

 

Using NSTAR as an example, they offer rebates for companies purchasing new energy-efficient equipment or retrofitting existing equipment to be more energy efficient. NSTAR distinguishes new construction projects and retrofits with different incentives for each, as well as different requirements to be eligible for rebates. When planning to build a new industrial process or improve your existing industrial process, check the different rebate structures listed below for both new construction and retrofits to maximize your company’s eligibility for rebates.

 

To be eligible for rebates, retrofit projects need to be completed within 6 months of the application, while new construction projects have up to 1.5 years to finish. Custom projects need to have detailed plans (such as Capital Cost Plans) calculating the amount of energy that will be saved, the load profile, materials and equipment estimates, and the types of equipment being used. To obtain the rebates for capital costs and installation, use an NSTAR approved contractor. 2-4 weeks after final sign off on post-inspection, the rebate goes to the client or vendor as a check, or shows up in the utility bill. Once pre-approval is given, money is held in escrow. All of the rebates can cover as much as 50% of the cost of equipment and construction, depending on how much energy is saved.

 

Below are the different rebates and application forms available from NSTAR for New Construction Projects and Retrofit Projects:

 

New Construction Projects

 

Retrofit Projects

 

Always make sure to check with your local utility when expanding your facility or buying new equipment so that you can take advantage of any available incentives. Taking these incentives into account in your cost to savings ratio will likely affect how you decide to approach your project.

The Obama administration has recently been strengthening efforts to establish the US as a leader in alternative energy, particularly solar power. In a recent statement after a $1.45 billion dollar conditional commitment to Abengoa Solar to build a solar field in Arizona, Energy Secretary Steven Chu said, “supporting this type of innovative renewable energy project is part of our commitment to creating a clean energy future while significantly reducing green house gases”. The US government has also provided other financial support, like a $400 million loan to Abound Solar Manufacturing LLC, to manufacture state-of-the-art thin-film solar panels.

 

With the recent activity in public and private funding (for instance, Konica Minolta’s $20M investment in Konarka in March), the industry is experiencing significant growth that will create thousands of jobs for Americans, not the least of which will come from increased manufacturing capacity for new thin-film photovoltaic panels.

 

While the government is pushing money towards solar panel manufacturers and other solar industry related companies, government support isn’t enough to make them successful. One recent example from the New York Times Energy Blog is San Francisco’s Solyndra, which received over $500 million in a federal loan guarantee, yet has been “hemorrhaging cash” and has recently retreated from an IPO to raise funds from additional private investors. Solyndra, while having unique and innovative shaped solar panels, has been challenged to find a solution which can be both profitable for them and affordable for their customers.

 

Many solar technology companies are still struggling to find the right mix of innovative technology, manufacturing capacity, and price point that will allow them to be successful without outside funding sources. One example is Solasta, even after receiving venture capital and a $2.7 million DOE grant, the Cambridge-based company recently shut down and its equipment and intellectual property has been sold to a Chinese academic institution. With far cheaper production costs, China is emerging as a leader in thin-film technologies. US companies need to move from pilot to commercial production faster to take advantage of this growth and compete on a range of economic and technological factors with offshore companies.

 

Industry growth in the US can be seen with other US companies operating in related fields moving into solar cell development. For example, Varian Semiconductor is launching a silicon solar cell manufacturing division financed by the already $204 million in revenue earned last quarter from their semiconductor equipment manufacturing business. With the solar industry growing nearly 60% in 2008, and doubling in 2009, demand for affordable and innovative solar panels is growing at a substantial rate. US solar companies need to find ways to become cost competitive with China, not only to stay in the market but to start to approach “grid parity”, the point at which solar generated electricity is as cheap as electricity from the power grid, which usually comes from fossil fuels. Achieving grid parity will be one of the key steps to making solar energy a main stream power source in the US.

Crystalline silicon has historically been the favorite material for solar cells, even though it’s not a great light absorber, and it needs to be several hundred microns thick to work properly (which creates high materials costs). Crystalline silicon is not only expensive but also very delicate, so solar panels made of this material can’t endure rough handling or environments. It continues to be the predominant type of semiconductor in solar cells because there is a large amount of existing process manufacturing knowledge for this technology; plus, it is highly efficient.

 

These thin film technologies are better light absorbers and require only one micron or so of thickness, making them significantly less expensive than 1^st generation technology. They are also generally more resilient and weather-proof than crystalline silicon panels. Solar panels with thin solar cells use semiconductors made from amorphous silicon or other polycrystalline materials, such as cadmium telluride, copper indium, and diselenide. This technology, however, is newer and more complex than crystalline silicon (i.e. harder to manufacture because of the lack of existing technology and experience in manufacturing), so it’s still the secondary player in the solar cell industry.

 

Prism Solar, Konarka, Sunworks Solar, and Petra Solar are all solar cell companies that have received government/state funding for their development of advanced photovoltaic technologies for wide commercial and residential use. Konarka, a SPEC client, was awarded $5 million in funding for the development of their new photovoltaic manufacturing plant in New Bedford, MA.

Konarka is one of the many companies using thin, plastic materials as substrates for semiconductors, making solar panel technology affordable and (more readily) available for government, consumer, and commercial use. Their company frequently partners with manufacturing companies to integrate their solar cell technology into existing products, making products that are usually powered by stored energy, solar-powered.

 

For example, Konarka worked with Arch Aluminum and Glass Co., Inc. to develop the first solar panel installed in the wall of their facility in Tamarak, Florida. These solar panels will use sunlight as a source of clean energy to power their facility. 

 

Konarka has also worked with a German company, Neuber, to produce “Energy Sun Bags,” a solar powered bag for charging electronics, using their lightweight, plastic photovoltaic technology.

The U.S. Department of Energy (DOE), this summer, awarded 2.4 billion dollars in stimulus money from the American Recovery and Reinvestment Act to, “accelerate the manufacturing and deployment of the next generation of U.S. batteries and electric vehicles”. The goal of the stimulus money was to promote and support three initiatives

One of the award winners, who received the 2^nd largest grant of 249 million dollars, was A123 Systems headquartered in Watertown, MA. A123 Systems is working on a new class of Automotive Lithium Ion cells that deliver a new combination of power and safety, enabling design flexibility in transportation applications and vehicle platform electrification. The grant is a part of the DOE’s Electric Drive Vehicle Battery and Component Manufacturing Initiative, and will assist with A123‘s objective of building a world-class lithium ion battery manufacturing facility in the U.S.

 

A123 Systems uses Nanophosphate chemistry to develop several electrode technologies. The M1 cells found in A123’s batteries provide, “high power with excellent durability. M1Ultra cells offer leading power to energy ratios and are optimized for HEV and Heavy Duty applications... M1HD cells are designed to deliver both high power and high energy density required for use in PHEV, ReEV and EV applications.”

 

The batteries produced by A123 Systems allow for increased energy ratios, expanded longevity during application use, and increased cost effectiveness.