Solar explosion - Demand for alternative energy flares in Valley, state

The Fresno Bee

(Updated Monday, May 5, 2003, 3:23 AM)

After nearly 20 years of championing solar energy to a lukewarm public, a frustrated Tommie Nellon of Fresno was getting ready to change careers.

He's lucky he didn't.

After California's 2001 energy crisis, Nellon and other solar energy providers are more popular than a Hollywood heartthrob. His company has grown from two to 10 employees, and his revenue increased from about $70,000 to more than $1 million.

"And to think I was going to get out of the business and repair computers," says Nellon of Unlimited Energy.

Nellon's rapid business growth surprises few in California's $300-million-a-year solar-energy business, an industry that's on a wildfirelike pace since the state's summer of blackouts and soaring utility rates in 2001.

Nationwide, solar is a $500-million-a-year business that grew by 60% last year thanks largely to California's robust market, says Glenn Hamer, executive director of the Solar Energy Industries Association in Washington, D.C.

With enticements such as rebates and tax credits, solar power is being embraced by major corporations, family-run businesses, governments and farmers searching to lower their utility costs and increase their energy independence.

"People used to think about solar power as something the guy who lived in the hills might use," Nellon says. "Now it's your neighbor. It's the investor or the banker. It is somebody who is looking at the future."

Pacific Gas & Electric Co. spokesman Paul Moreno says the number of photovoltaic solar systems in its service area jumped from 182 in 2000 to 2,043 last year. Those systems produce power for their owners and feed electricity back to the power grid.

For many, harvesting the sun's rays to produce electricity has long made sense. Environmentalists like the system because it produces zero emissions and uses a renewable source. But business owners generally viewed solar as an unnecessary expense. Buying a system didn't pencil out when power from the utility company was relatively cheap and reliable.

That all changed during the summer of 2001.

A pinch in California's energy supply triggered rolling blackouts on seven days that left thousands of homes and businesses without power for several hours. The cost of electricity rose as fast as people's frustration.

After the situation stabilized, solar energy and other renewable energy sources gained greater attention. Last September, California pushed the issue further by requiring the state's utility companies to provide 20% of electricity from wind, solar, and other alternative-energy sources by 2017.

About 10% of California's electricity generation comes from those sources today.

To help spur interest, utility companies along with the state and federal governments created rebate programs and tax credits that can slash the cost of a system by 50%. Since June 2002, PG&E has paid $10.3 million in rebates.

"There is nothing like the stress of not having the lights on to cause people to change. And that's what we are seeing now, from farming to manufacturing," says David Zoldoske, director of the Center for Irrigation Technology at California State University, Fresno. "No one wants to be in the same position again."

Zoldoske says the International Center for Water Technology at Fresno State will play a leading role in spreading the word about solar power to agriculture.

The Center for Water Technology recently joined with New Jersey-based WorldWater Corp. to build a 100-kilowatt solar-powered system on campus for use as a research and training facility.

The center estimates that 37,866 irrigation pumps statewide are candidates for solar energy. Converting diesel pumps to solar could improve air quality and save farmers money, Zoldoske says.

Hooking farmers up to solar also has advantages for the utility companies. Excess power generated by a farmer's solar system can be fed back to the state's power grid. The farmer gets credit for the extra electricity, and the utility has more power available, especially during peak hours.

"Even if we are completely wrong about this, what have we done?" Zoldoske asks. "We've improved the air quality and created another source of energy. I don't see the downside."

Farmer Gary Martin, manager of D.T. Locke Ranch in Mendota, is among the solar power believers.

Last month, the Locke family became the first farmers in California to install a solar panel system capable of producing enough electricity to run a 50-horsepower irrigation pump, and supply a nearby farmhouse, workshop and water well.

Martin sees solar power as another tool to help the fourth-generation family farm cut its expenses.

The Locke family farms 1,250 acres of cotton on the west side of the San Joaquin Valley, one of the most productive farm areas in the world. But like other farmers, the Lockes struggle with low prices and rising costs including labor, workers' compensation insurance and utilities.

The Lockes estimate it may take about five years to recoup the investment of $145,000. The system, built by WorldWater Corp., cost about $290,000. State grants paid for half.

Martin estimates the ranch may save $18,000 to $20,000 annually by using solar.

"Instead of paying the power company each month, we are paying for the project," Martin says. "This just makes a lot of sense."

Since the project was unveiled, several curious farmers have visited Martin.

Fellow west-side grower John Diener has moved beyond the curious stage. He plans to power two 50-horsepower irrigation pumps by solar. The project also is being designed by WorldWater.

For his part, Diener likes the idea of not being completely dependent on the utility company.

"It is anybody's guess what will happen," Diener says. "We have already seen how the system can be manipulated. The question becomes what will we be paying in rates. For some farmers, the power bills are what killed them."

WorldWater, which designs irrigation systems worldwide, has actively been pursuing the California market.

Along with helping farmers, the company is installing a system to power four large-scale irrigation pumps for the Joshua Tree Municipal Water District.

The company also is completing a system for the Lehr Bros. Packing House in Kern County.

"There was nothing like this going on two years ago," says Thomas O'Brien, regional sales manager for WorldWater.

But farmers aren't the only ones turning to solar power.

Last month on Earth Day, PowerLight Solar Electric Systems of Berkeley unveiled a massive system at Toyota Motor Sale's 624,000-square-foot plant in Torrance. The solar-powered system produces enough electricity to light more than 500 homes.

PowerLight also designed a system that is powering the OK Produce plant in downtown Fresno. The system carpets 35,000 square feet of the company's roof and produces enough power during the daytime to supply 230 homes. OK Produce, whose monthly utility bill tops $25,000 during peak summer usage, expects to shave at least 25% off its bill.

Brady Matoian, who heads the company's food-service sales division, understands the reluctance of some companies to invest in solar.

"People still don't really have a good concept of how this actually works," Matoian says. "But we invite anyone to come down and see for themselves."

Once people have a better grasp of the concept and the costs, Matoian predicts, more businesses will turn to solar.

Industry advocates agree that for the near future, demand will continue.

Kari Smith, manager of regulatory affairs for PowerLight, says an important element of the solar industry's growth has been the financial support of legislators and the utility companies.

But those subsidies are expected to diminish as more consumers buy solar systems and the price for the product begins to drop.

"We are in a good place right now for lots of things to happen," Smith says.

Nellon of Unlimited Energy doesn't expect his business to slow anytime soon.

He recently finished installing a system that covers nearly 4,000 square feet of the roof at the Medical-Dental Pharmacy in northeast Fresno.

Barry Smith, president of the company, expects to slice his $2,500 monthly utility bill by 40%.

"I don't know anyone who feels comfortable about the rates we pay; that's why we are hoping this is going to save us money in the long run," Barry Smith says.

After Nellon wraps up work on the medical building, he will turn his attention to a much larger project that he's keeping under wraps for now. It could be one of the largest systems in the area.

"It's going to be big."

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