Will the Central Valley become the next leader in alternative energy innovation? |
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By Adrian Rodriguez The Business Journal- originally published 4/28/06
"The plan is to do a comprehensive approach," Weber said. "It takes into account our geographical limitations, and it is building in incentives to accelerate adoption." Weber, who also is the co-chair of the Regional Jobs Initiative, said that an alternative energy cluster will soon start to focus on ways to attract an entirely new industry to the Valley. Pacific Ethanol, a Madera plant being built that will meet the fast-growing demand for fuel extracted from plants such as corn, is the first company of potentially many that would come to this area, he said. In the short term, the state funding from the partnership could speed the rate at which older trucks that travel through the Valley are replaced, which reduces emissions. But in the long term, programs like the recently adopted "1 million solar roof tops" initiative instituted by the California Public Utilities Commission - which provides $3.2 billion to promote solar energy, making it the largest solar program in U.S. history - would provide rebates for businesses and consumers purchasing solar equipment. The 11-year plan is designed for the state to produce 3,000 megawatts of solar energy. These statewide efforts are what makes California more attractive to a company like Ovonic, one of the world's leaders in forward-thinking technology, said Stephen Heckeroth, director of Building Integrated Photovoltaic Products for ECD Ovonics, an arm of Michigan-based Ovonic. Ovonics recently announced that it intends to expand its production of solar products from the equivalent of 30 megawatts per year to 3,000 per year by 2025. Heckeroth, who represents the California market for Ovonics, said that the announcement means that the company is likely to build more facilities - and Fresno has a good chance of snagging some of that growth. Heckeroth said he reports directly to Ovonics founder Stan Ovshinsky. "There is some interest that was stated in the California option, because it's the third largest PV market in the world," Heckeroth said. "80 to 85 percent of PV installations are in California. And Fresno is very centrally located. I've been up and down the state, looking for the best place, and there are number of reasons to look at Fresno." But Fresno has to step up to the plate, he said, and a recent visit to the Ovonics plant is a good step in that direction. Last week, a group of business and political leaders from the Valley took a trip to Michigan to visit Ovonics. Their wholly-owned subsidiary, Uni-Solar, produces flexible solar panels that could be used as roof tiles themselves - as opposed to installing solar panels on top of roof shingles, Heckeroth said. Robert Stempel, Ovonics current CEO and former CEO of GM, was very impressed with the meeting with Fresno leaders that included Mayor Alan Autry via telephone and Dave Spaur of the Economic Development Corporation serving Fresno County. "[Stempel] said he would make a proposal to Fresno. I don't know what the timeline is for Fresno, and he didn't want to speculate until he had a chance to go back to the board. I would have the people in Fresno keep the pressure on, because there are definitely richer areas of California that could probably make a sweeter proposal." No immediate decisions were expected as a result of the trip. Ovonics already has announced plans to expand in Michigan until 2010, Heckeroth said, a move that will create a total of 1,200 jobs for the state. But that plant is focused on international sales. After 2010, plans are for Ovonics to focus on the United States, and Fresno's central location and access to enterprise, empowerment and free-trade zones makes the area attractive to Ovonics, Heckeroth said. And because California is the largest market in the United States, Ovonics is considering developing products specifically for the state. But he also said it would be important for Fresno to build a customer base for solar products, which could be done now. Solar power in the Valley residential housing is becoming more commonplace because rebates offered at the state and federal level subsidize as much as half the cost of installing a system, said Mark Stout, account representative at Unlimited Energy. "I'm busy," he said. "I'm selling a lot of contracts." As the largest Valley-based installer, Unlimited Energy has done 250 installations from San Diego to Sonoma. And because state rebates amount to about $4.50 per watt - install costs being $8 a watt - Stout said the choice to use solar power is becoming more economical. With Unlimited Energy, customers can be cash neutral for 10 years as they pay off the system while simultaneously saving on electricity costs. After its paid off, the equipment can last 20 or more years. Customers can also pay off the installation during a longer time period and have some extra cash. The California energy crisis in 2000 sparked a shift in attitudes about solar powered products, he said. "That totally jump started the industry," Stout said. And he says because rates are steadily increasing, the gradual increase is having a similar effect as the rapid increase in 2000. And in Visalia, a new 48-home development for fixed-income adults over 55 years of age is being built that comes with solar power as a standard feature. Erin Clark of Regrid Power, which installed the panels at Sundowner Homes in Visalia, said the 150-square-foot installations mean that electricity will save the new homeowners 15 to 25 percent in electricity charges. |
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