Suntech Hawaii is helping businesses like yours convert from petroleum-derived electricity to clean, economically-feasible solar electricity. Our success is based on our ability to manage each project from start to finish, providing complete control and accountability over each stage of the process, from analysis and design to installation and beyond. If solar is right for you, Suntech Hawaii will use our knowledge of the solar energy industry to help you select the system that delivers the best value for your particular circumstances. And, we’ll help you secure the appropriate financing option for your firm’s goals, needs, and constraints. For businesses that prefer to purchase systems outright, we can install solar systems that eliminate much or all of your electricity bill with equipment that has a functional life of 25 years, and provides generous tax incentives along the way. For those who want to avoid capital expenditures entirely, we offer power purchase agreements (PPAs) that allow users to simply purchase electricity produced on-site for a fixed period of time at a guaranteed rate. In between these extremes, an array of debt, lease, and lease purchase options are also available. All of these solutions share several important benefits. First, they lower energy costs now and provide a hedge against future price increases from grid power. Second, they provide the stability of self-generated electricity without giving up access to the grid as a backup power source. Finally, they yield timely marketing opportunities for businesses like yours to take advantage of the pro-environment shift in consumer consciousness. At Suntech Hawaii, we stand behind the quality of our work. We provide reliable solar technology, economically feasible systems and financing, and renewable, non-polluting electricity that helps your business—and our state—become more energy independent. Let us help you initiate change. oil prices are chipping away your profits Nowhere in the country are business profits so closely tied to electricity rates. According to the Department of Energy, Hawaii’s commercial electricity rates are the highest in the country and more than double the national average (Fig. 1a). Neighbor island rates are especially high (Figure 1b). Statewide, retail electricity rates rose 130 percent from 1991 to 2006. Whereas the rest of the country gets just 3 percent of its electricity from petroleum, Hawaii gets 78 percent (Fig. 2). This imbalance leaves electricity rates unusually vulnerable to the future oil price increases predicted by leading investment firms and energy industry groups. Looking further ahead, the National Petroleum Council predicts that—due to population increases and improving living standards—global demand for oil will substantially exceed supply for the next 25 years. i In addition to market-driven price growth, Hawaii’s electricity costs are also vulnerable to regulatory changes such as the imposition of carbon taxes intended to shift the country’s energy supply away from fossil fuels. Such taxes are gaining momentum internationally, and one U.S. city, Boulder, Colorado, imposed such a tax in 2006. Another recent report by Goldman Sachs argues that regulatory risk associated with greenhouse gas emissions is a “significant investment risk.” ii is solar right for your business? electricity costs and Hawaii’s business community petroleum 3% coal 49% other 29% natural gas 29% petroleum 78% coal 14% other 7% natural gas 1% Source: U.S. Dept. of Energy EIA. Fig. 2: Petroleum Dominates Electricity Production U.S. HAWAII Fig. 1a 0 5 10 15 20 25 U.S. Commercial California Hawaii Residential Fig. 1b Maui Big Island Kauai Molokai Average Business Rate 34 36 38 40 28 30 32 Source: Fig. 1a: U.S. Dept. of Energy, Energy Information Administration, data for 2006. Fig. 1b: HECO, KIVC, schedule J, general service demand January 2008 Hawaii’s Electric Rates by island (cents/kWh) Hawaii Electric Rates vs. U.S. Mainland/California power your business with solar
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Suntech Hawaii is helping businesses like yours convert from
petroleum-derived electricity to clean, economically-feasible
solar electricity. Our success is based on our ability to manage
each project from start to finish, providing complete control and
accountability over each stage of the process, from analysis and
design to installation and beyond.
If solar is right for you, Suntech Hawaii
will use our knowledge of the solar
energy industry to help you select the
system that delivers the best value for
your particular circumstances. And,
we’ll help you secure the appropriate
financing option for your firm’s goals,
needs, and constraints.
For businesses that prefer to purchase
systems outright, we can install solar
systems that eliminate much or all of
your electricity bill with equipment that
has a functional life of 25 years, and
provides generous tax incentives along
the way. For those who want to avoid
capital expenditures entirely, we offer
power purchase agreements (PPAs) that
allow users to simply purchase electricity
produced on-site for a fixed period of
time at a guaranteed rate. In between
these extremes, an array of debt, lease,
and lease purchase options are also available.
All of these solutions share several important benefits. First, they
lower energy costs now and provide a hedge against future price
increases from grid power. Second, they provide the stability of
self-generated electricity without giving up access to the grid
as a backup power source. Finally, they yield timely marketing
opportunities for businesses like yours to take advantage of the
pro-environment shift in consumer consciousness.
At Suntech Hawaii, we stand behind the quality of our work.
We provide reliable solar technology, economically feasible
systems and financing, and renewable, non-polluting electricity
that helps your business—and our state—become more energy
independent. Let us help you initiate change.
oil prices are chipping away your profits
Nowhere in the country are business profits so closely tied to
electricity rates. According to the Department of Energy, Hawaii’s
commercial electricity rates are the highest in the country and
more than double the national average (Fig. 1a).
Neighbor island rates are especially high (Figure
1b). Statewide, retail electricity rates rose 130
percent from 1991 to 2006.
Whereas the rest of the country gets just 3 percent
of its electricity from petroleum, Hawaii gets 78
percent (Fig. 2). This imbalance leaves electricity
rates unusually vulnerable to the future oil price
increases predicted by leading investment firms
and energy industry groups. Looking further ahead,
the National Petroleum Council predicts that—due
to population increases and improving living
standards—global demand for oil will substantially
exceed supply for the next 25 years.i
In addition to market-driven price growth, Hawaii’s
electricity costs are also vulnerable to regulatory
changes such as the imposition of carbon taxes
intended to shift the country’s energy supply
away from fossil fuels. Such taxes are gaining
momentum internationally, and one U.S. city,
Boulder, Colorado, imposed such a tax in 2006.
Another recent report by Goldman Sachs argues that regulatory
risk associated with greenhouse gas emissions is a “significant
investment risk.”ii
is solar right for your business?
electricity costs and Hawaii’sbusiness community
0
5
10
15
20
25
U.S. Maui Big Island Kauai Molokai
Commercial
California Hawaii
ResidentialAverage Business Rate
We need more laws to enforce energy efficiency
The environment in the U.S. is getting worse
Would consider buying and alternative fuel vehicle
Global warming is a “serious problem”
It is a “good idea” to build more solar power facilities
Dependence on foreign oil is a “serious problem”
percent of respondents
34
36
38
40
28
30
32
petroleum78%
coal14%
other7%
naturalgas1%
petroleum3%
coal49%
other29%
naturalgas
29%
0
5
10
15
20
25
U.S. Maui Big Island Kauai Molokai
Commercial
California Hawaii
ResidentialAverage Business Rate
We need more laws to enforce energy efficiency
The environment in the U.S. is getting worse
Would consider buying and alternative fuel vehicle
Global warming is a “serious problem”
It is a “good idea” to build more solar power facilities
Dependence on foreign oil is a “serious problem”
percent of respondents
34
36
38
40
28
30
32
petroleum78%
coal14%
other7%
naturalgas1%
petroleum3%
coal49%
other29%
naturalgas
29%
Source: U.S. Dept. of Energy EIA.
Fig. 2: Petroleum Dominates Electricity Production
U.S. HAWAII
Fig. 1a
0
5
10
15
20
25
U.S. Maui Big Island Kauai Molokai
Commercial
California Hawaii
ResidentialAverage Business Rate
We need more laws to enforce energy efficiency
The environment in the U.S. is getting worse
Would consider buying and alternative fuel vehicle
Global warming is a “serious problem”
It is a “good idea” to build more solar power facilities
Dependence on foreign oil is a “serious problem”
percent of respondents
34
36
38
40
28
30
32
petroleum78%
coal14%
other7%
naturalgas1%
petroleum3%
coal49%
other29%
naturalgas
29%
Fig. 1b
0
5
10
15
20
25
U.S. Maui Big Island Kauai Molokai
Commercial
California Hawaii
ResidentialAverage Business Rate
We need more laws to enforce energy efficiency
The environment in the U.S. is getting worse
Would consider buying and alternative fuel vehicle
Global warming is a “serious problem”
It is a “good idea” to build more solar power facilities
Dependence on foreign oil is a “serious problem”
percent of respondents
34
36
38
40
28
30
32
petroleum78%
coal14%
other7%
naturalgas1%
petroleum3%
coal49%
other29%
naturalgas
29%
Source: Fig. 1a: U.S. Dept. of Energy, Energy Information Administration, data for 2006. Fig. 1b: HECO, KIVC, schedule J, general service demand January 2008
Hawaii’s Electric Rates by island (cents/kWh)
Hawaii Electric Rates vs. U.S. Mainland/California
power your business with solar
An equally important challenge facing Hawaii businesses is
the need to keep up with changing cultural attitudes favoring
greener, lower-impact lifestyles and an evolving mandate that
business activities be “socially responsible.” A recent Yale
University study found that 83 percent of Americans consider
global warming a “serious” problem and that 63 percent think
the country is in as much danger from environmental hazards
as from terrorists (Fig. 3). Fully 96 percent of the study’s
respondents also said that dependence on Middle East oil
is a “serious problem.” The director of the study concludes
that “the U.S. is in the midst of a revolution” and that a public
“frustrated with the limits of government action increasingly
wants business to solve environmental problems.”iii
social responsibility brings a greener bottom line
Solar energy has finally come of age
and is now a proven technology.
This, together with a multitude
of financing options, generous
tax incentives and a change in
consumer consciousness, are
compelling many businesses to make the shift.
At Suntech Hawaii, we can help you seamlessly convert to solar
power. For a free on-site cost and benefit analysis, contact us
Taken together, Hawaii’s high and unstable electricity prices pose a
variety of challenges to the state’s business community. High rates
severely undermine the competitiveness of those firms that compete
nationally and internationally. And, the inability to control or anticipate
costs makes formulating and implementing long range strategies
extremely difficult for businesses with significant power demands.
In this context, alternative energy offers a hedge against future price
fluctuations and can make business planning much more manageable
for Hawaii firms.
predictability to anunpredictable world
National Petroleum Council. Facing the Hard Truths about Energy. July 2007. http://www.npc.org/Facing_Hard_Truths-summary.pdf. Cohen, Abby. Goldman Sachs and Co. Portfolio Strategy. Capital Markets at the Crossroads: Sustainable Investing: Environmental Focus. September 2006. http://www2.goldmansachs.com/insight/research/reports/report40.html. Quote from Dan Esty, Director of Yale University’s Center for Environmental Law and Policy regarding results from the Center’s poll of environmental attitudes and behavior. The poll was conducted in February 2007 and released in March.
Source: Yale University Center for Environmental Law and Policy, 2007.
0
5
10
15
20
25
U.S. Maui Big Island Kauai Molokai
Commercial
California Hawaii
ResidentialAverage Business Rate
We need more laws to enforce energy efficiency
The environment in the U.S. is getting worse
Would consider buying and alternative fuel vehicle
Global warming is a “serious problem”
It is a “good idea” to build more solar power facilities
Dependence on foreign oil is a “serious problem”
percent of respondents
34
36
38
40
28
30
32
petroleum78%
coal14%
other7%
naturalgas1%
petroleum3%
coal49%
other29%
naturalgas
29%
Fig. 3: Changing Environmental Attitudes Research by Goldman Sachs argues that issues related to climate change pose risks
Project ContextActus Lend Lease holds 50-year contracts to own, manage and maintain 3,500 housing units on five Army and Air Force installations on Oahu. They approached Suntech Hawaii for solar solutions to significantly lower operating costs by converting from grid power to solar electricity, maximize tax benefits and inspire their tenants to conserve energy through individualized billing—all while maintaining the aesthetic integrity of the neighborhoods.
Our SolutionSolar power holds many advantages for Actus Lend Lease. Because of their long-term ownership of the individual housing units there was a natural match between the long life of solar power systems and the company’s ability to capture the full value of its investment. Suntech therefore focused on two issues - 1) achieving the necessary electricity production capacity with minimal aesthetic intrusions; and 2) designing the systems to take maximum advantage of available tax incentives.
In order to preserve the aesthetic vision of the original architectural plans, we recommended building-integrated PV laminates which adhere directly to the standing seam metal roofing. This decision saved Actus the cost of installing conventional mounting hardware. Each of the 3,500 homes included in the project will produce roughly 65 percent of its own electricity, yet appear indistinguishable from those in adjacent neighborhoods.
Our plan addressed the tax issue by phasing the project over seven years (2006-2014) so that Actus could maximize their state and federal tax incentives. We were also able to meet their need for individualized billing by metering each home/system and allowing both power generation and power consumption to be measured individually.
By converting to solar electricity, Actus will reduce their carbon footprint by about 381 billion tons and enjoy bottom line savings expected to exceed $150 million over the project’s life. Now that’sa lot of green goodwill.
Residential PV on New ConstructionSchofield Barracks, Fort Shafter, Hickam Air Force Base,Bellows Air Force Station, Aliamanu Military Reservation
Project ContextHonda Windward approached Suntech Hawaii about powering its new Auto Spa and Truck Wash using solar electricity. Honda Windward’s goal was twofold: to reduce their combined monthly electricity bill of $5,000, and increase “green” awareness of their new auto spa. Both facilities are located on Oahu’s Windward Coast in an area with persistent cloud cover.
Our SolutionFrom the start, our goal was to maximize energy production due to the customer’s high power demand and the intermittent generating capacity due to the weather. This meant covering a variety of small roof surfaces with photovoltaic panels in addition to the main roof planes. The result is a 106 kW array that not only identifies Honda Windward as an environmental leader among its fellow auto retailers, but is the largest commercial rooftop solar facility on the island.
The total system contains 20 sub arrays. Panels are mounted to the roof via stand off mounts in order to provide sufficient wind flow to keep the panels cool and running efficiently while keeping wind loads manageable. Because it covers more than 85 percent of the roof surface it also reduces the structure’s cooling load substantially by eliminating heat gain through the roof. The installation is fully leak-proof. And, in keeping with Honda Windward’s good neighbor policy, we selected non-reflective panels, eliminating concerns from neighboring homes and business, property owners in the hills above the site and low-flying aircraft—a concern especially for tourist helicopter flights on the scenic Windward Coast.
The power produced on its roof eliminates over 40 percent of Windward Auto Spa’s power bill—saving approximately $2,000 per month—even after a significant expansion in operations following the project’s completion. It’s equivalent to removing about 18 cars from the road each year.