Colliers Solar Energy Network Az

Solar Energy

NETWORK

PA RT N E R S F O R C H A N G E

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Solar Energy Network

2 Arizona Governor Jan Brewer 3 A Solar City - A Green City | Mayor Phil Gordon - City of Phoenix 4 Solar Power: A Chance to Shine on Arizona’s Economy | GPEC 5 Senate Bill 1403 6 Arizona Corporation Commission 7 Adding Roof-Top Solar Energy is Becoming More Affordable | APS 8 The Future of Solar Looks Bright | SRP 10 Solar Energy on the Rise | TEP 11 Arizona Solar Projects 12 Entrepreneurship Driven Innovation | Science Foundation of Arizona 14 Arizona Economic Resource Organization 15 The University of Arizona

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16 Arizona is Poised to Become the Global Leader in Solar Energy | ASU 17 Northern Arizona University 18 Solar Research at Arizona State University 20 Arizona Institute for Renewable Energy | ASU 21 TÜV Rheinland Photovoltaic Testing Laboratory 22 Arizona Solar Energy Association is on the Move

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24 Why We Need to Support the Creation of a Viable Commercial Solar Energy Sector in Arizona | CarbonFree 26 Solon Corporation 27 Partnering for a Bright Future | BrightSource Energy 28 Economic Impact on Arizona | Global Solar Energy 30 Solar Energy Collaboration | SolFocus 31 REC Solar - Shining into Arizona 32 About SolarCity 33 Wilson Electric 34

Arizona Solar Network | Greater Phoenix Map

36 Thank You | Our Contributing External & Internal Experts

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Today’s changing energy needs require diverse solutions Colliers International Solar Energy Network

We are pleased to present Colliers International’s Solar Energy Network—Partners for Change – a comprehensive examination of the solar energy industry by the experts and visionaries who are playing a critical role in creating a renewable energy future. Colliers International would like to extend its appreciation to our valued partners in both the public and private sectors who contributed their expertise to this visionary report.

Matt Fitz-Gerald TEAM LEADER Senior Associate | Office Properties 602.222.5178 [email protected]

Tom Knaub, SIOR, CCIM Senior Vice President | Industrial Properties

Colliers International Solar Energy Network is a highly qualified team of professionals who specialize in commercial real estate for the renewable energy industry. Solar Energy Network provides integrated real estate solutions, including the sale and leasing of industrial and office properties, land acquisition, property management, mortgage banking, market research, valuation and appraisal.

602.222.5036

[email protected]

John Finnegan Senior Vice President | LandSource Group 602.222.5152

[email protected]

Kevin Lange Senior Associate | Office Properties 602.222.5160

[email protected]

Our experts assist solar energy companies in navigating through the complexities of solar initiatives, policies, regulations and real estate transactions in the state of Arizona. With our in-depth knowledge of federal, state and local incentives, legislation, market conditions and renewable energy industry requirements, we are well positioned to help you achieve your strategic real estate objectives. Colliers International’s global platform allows us to assist you with multiple locations or multinational projects through full service solutions offered in more than 60 countries.

Arizona has a long history of providing a balanced set of traditional resources to generate electricity including nuclear, coal, natural gas and hydro. We have the largest nuclear power plant in the United States. Our tribal nations have large coal reserves, and our hydroelectric dams are the foundation upon which our state was built. However, over the past several years we have seen prices for our traditional fuel resources grow more volatile. Since before statehood, Arizona has provided leadership in fostering solar energy research, development, manufacturing and deployment for the benefit not only of the people and the economy of Arizona, but the nation and the world. Since the 1800s, Arizona has utilized solar for heating and pumping water, and tested and certified solar products and new solar technologies. In 1990, Arizona created a statewide energy policy that led to the establishment of a utility portfolio standard at the Arizona Corporation Commission. More recently, Arizona enacted numerous solar tax incentive programs for both business owners and residents. Arizona has many unique renewable energy attributes, with solar energy being our most abundant. Arizona’s solar resource not only has the potential to help us become more energy independent, but it also has the potential to provide enormous opportunity for economic growth. As we enter a new era in energy, Arizona is working toward developing a strong solar energy industry and infrastructure. In support of this new course, I have directed my Director of the Arizona Department of Commerce, Donald E. Cardon, to focus on growing green jobs in Arizona and demonstrating the usefulness of renewable energies, like solar and wind, in diversifying and strengthening our state economy. New incentives I have signed into law allow Arizona to compete globally, be more aggressive in attracting foreign direct investment, and secure quality jobs for Arizonans. In addition, the Arizona Department of Commerce Energy Office will utilize a portion of the American Recovery and Reinvestment Act energy funding to launch a public buildings solar initiative with a goal COLLIERS INTERNATIONAL | 2

Governor Jan Brewer to procure and deploy one megawatt of new solar installations on our state’s public buildings by 2010. The first system to be installed will be a photovoltaic (solar electric) system on the south wing of the Executive Tower at 1700 West Washington Street in Phoenix. This system will symbolize that Arizona means business when it comes to solar energy. I am also directing the Department of Commerce to use American Recovery and Reinvestment Act funding to establish a grant program to demonstrate commercially viable renewable energy and energy efficient products manufactured in Arizona. We will also establish a Revolving Energy Loan Fund to provide low-interest loans for commercial businesses, farmers and ranchers who wish to become more energy efficient or utilize renewable energy systems. By focusing these monies on renewable energy innovation, solar installation, and energy efficiency, Arizona will continue to lead the nation in the development and implementation of products that move the State of Arizona toward energy independence. By continuing to foster a solar industry that will someday become an economic force of great significance, Arizona will diversify its economy, grow green jobs, and better the environment for the citizens of this great State. I am an early adopter of solar energy – energizing my home with Arizona’s sun since the 1970s. I know our State’s potential with renewable energies is great. Engage in this statewide effort through my Arizona Department of Commerce. Please visit www.azcommerce.com. Donald E. Cardon Director of the Arizona Department of Commerce

A Solar City: A Green City I recently traveled to Washington -- and had a faceto-face meeting with Energy Secretary Steven Chu. We talked about the importance of renewable energy sources -- the importance of freeing ourselves from our dependency on foreign oil – and the jobs that will come to the city that leads on this issue. I told him that Phoenix would lead – and we’ll do it with “Green Phoenix” – a 17-point plan which, in short, is designed to make Phoenix, America’s first Carbon-Neutral City – America’s Greenest City. It is a plan that already has the Secretary’s endorsement. So what is “Green Phoenix”? It’s comprehensive. It’s training unemployed workers to rehabilitate distressed homes for water and energy efficiency. It’s converting public outside illumination to very high-efficiency, dark skies compliant lighting. It’s expanding our creative recycling private-public partnership to every residence and business in the City. It’s developing our canal system for recreation and non-motorized transportation. It’s painting Phoenix rooftops white, to better reflect the sun and reduce the urban heat-island effect -- and bringing all our public buildings up to new LEED® retrofit standards. The Phoenix City Council adopoted a policy that all new buildings built with bond funds must be built to basic LEED standards. Our city code has been modified to require all new city buildings to realize a 50 percent reduction in water use in landscaping, a 20 percent reduction in water use in interiors and a 30 percent reduction in overall energy use. And “Green Phoenix” is about turning Phoenix into a “Solar City.” In the middle of what has always been known as the Valley of the Sun -- Phoenix will become the City of the Sun. Already, the West Building of the Phoenix

Mayor Phil Gordon

City of Phoenix

Convention Center has a 100kW solar photovoltaic system installed on its roof. The system provides power directly into the facility and is designed to offset power purchased from the utility. 100kW of Soar or photovoltaic power is being generated through panels on top of two parking shade canopies and the security building of our Pecos Park & Ride facility. The energy generated for use in the public grid is enough energy for 13-15 Valley homes on an annual basis. Our Pecos Community Center has a 30kW solar photovoltaic system installed on the roof of the gymnasium designed to feed power to the facility and offset utility-purchased power at the site. The North Gateway Transfer Station has a 7kW photovoltaic system on the room of the transfer station and 32 photovoltaic powered lights in the employee and visitor parking lot. The system provides power directly into the system. Soon, we will start powering Phoenix homes and buildings with solar technology from solar power plants and from rooftops. Under this plan, no homeowner will have to advance a single dime for solar installations. Further, Phoenix recently issued an RFP to build the very first solar power plant in the Valley – on up to 1,200 acres of a city landfill. Finally, our Green Rail Corridor Demonstration Project, developed in partnership with Arizona State University’s Institute of Global Sustainability, will take a 10-mile stretch of light rail corridor through the heart of the city, a half-mile wide, and accomplish actual reductions in energy usage and carbon emissions over time, even while dramatically increasing residential and commercial density. For reasons that should be obvious to everyone -- if there’s going to be a Solar City – like there’s a Silicon Valley – it shouldn’t be in Atlanta or Portland. It should be in Phoenix. And it will be in Phoenix. The benefits will be many. We’ll reduce our carbon footprint. We’ll create jobs immediately. We’ll all reduce our utility bills. We’ll reduce our consumption of fossil fuels – and best of all, we’ll create a demand for technology that will attract the high-tech solar manufacturers that are looking for a place to build their next plant. SOLAR ENERGY NETWORK 2009 | 3

Solar Power: A Chance to Shine on Arizona’s Economy rizona is poised to become the solar energy capital of the nation. With an average of 321 days of sunshine each year, Arizona receives the country’s highest concentration of sun. Beyond that, Arizona has excellent traits that solidify why the state should be a premier solar location: - One of the most aggressive renewable energy standards (RES) in the U.S., requiring Arizona’s electric utilities to produce 15% of their energy from renewable sources like the sun and wind by 2025. Of this, 30% of the RES must be distributed generation (think powering homes), which means Arizona will be among the top two states in the country for the number of installed solar rooftop systems on a per capita basis. - Proximity to California—the world’s 4th largest solar market—and Mexico enables broad distribution capabilities to transport manufactured solar goods and allow for the import and export of renewable energy through transmission. - Arizona State University is home to the world’s first school of sustainability, as well as renowned solar power and photovoltaic testing laboratories. “For over 25 years ASU has been a leader in solar energy, a position we plan to leverage in helping to make Arizona a national leader in the production and distribution of solar energy in the years ahead,” said Todd Hardy, the University’s associate vice president for economic affairs.

renewable energy technologies present, Arizona should now make use of its natural environmental assets, commercial focus, and academic leadership to advance its local, regional and statewide economies.” Facts show the renewable energy field is flourishing. Revenues in the worldwide photovoltaic industry surpassed $20 billion in 2008. The current U.S. administration has identified $43 billion for energy investment in the American Recovery and Reinvestment Act. Navigant Consulting reports that one in four U.S. workers will be employed in the renewable energy / energy efficiency industries by

reening Greater Phoenix powered by SolarCity encourages renewable energy companies to expand operations in Greater Phoenix and positions the region as a hub for “green” industries. Greening Greater Phoenix powered by SolarCity, launched last year, has already garnered media attention from around the nation and amplified the region’s reputation as an ideal location for renewable energy companies. For more information: www.greeninggreaterphoenix.org and www.solarcity.com

Hardy also chairs GPEC’s Techonomy Leadership Council, a collaborative group that promotes technological advances that drive economic development in innovation-based markets. Comprised of GPEC board directors, industry experts and regional leaders, Techonomy doggedly looks for opportunities to thrust Greater Phoenix ahead of the competition for solar and renewable energy companies.

“ASU has been extremely engaged in deploying a full spectrum of academic programs, public private partnerships, and use-inspired research in all areas of sustainability. Given the immense potential that COLLIERS INTERNATIONAL | 4

2030. The potential for solar is obvious; Arizona’s involvement in the industry is just beginning. In November 2008, German-owned Solon Corporation opened Arizona’s first factory for manufacturing photovoltaic equipment. The opening of the 105,000-square-foot facility in Tucson is expected to create 200 new jobs by the end of 2009.

Barry G. Broome

President and CEO Greater Phoenix Economic Council

SolarCity, a California-based solar design and installation company, expanded its operations to Phoenix—a reflection of consumer demand for solar in Greater Phoenix. Meanwhile, plans for a wind farm and what would be the world’s largest utility-scale concentrated solar plant, are in the works. The first phase of the wind farm will open by 2010 northwest of Snowflake with about 30 wind turbines – enough to power nearly 16,000 homes. Two years later Solana Generating Station, Arizona’s largest solar generation station, is scheduled for completion. Located in Gila Bend, Solana will serve up to 70,000 Arizona homes. Both Solana and the wind farm are financed by Spanish companies, demonstrating Arizona’s strong pull in the international market and potential for additional foreign investment.

Arizona is clearly destined to be the nation’s future leader in solar consumption, and GPEC is working with its partners statewide to capture the opportunities in innovation and manufacturing to ensure the entire supply chain develops within the state. Barry G. Broome Greater Phoenix Economic Council President & CEO

SENATE BILL 1403 Senate Bill 1403 or the Renewable Industries Bill is explained in detail below. SB1403 was the vision of Senator Barbara Leff and has been supported by the Greater Phoenix Economic Council to encourage investment by renewable energy companies in Arizona. Signed by Governor Brewer in July 2009, the program will provide qualified companies with a refundable income tax credit and a reduction in property taxes - making Arizona a favorable choice for renewable energy projects. OVERVIEW The Quality Jobs Through Renewable Industries program is designed to stimulate new investments in manufacturing and headquarter operations of in-state and out-of-state renewable energy companies, including solar, wind, geothermal and other renewable technologies. It is designed to generate net new revenue to the state. The benefits include: 1. Refundable income tax credit 2. Real and personal property tax reclassification REQUIREMENTS Businesses making new investments in manufacturing and/or headquarter operations in Arizona in renewable energy industries are eligible for the program if they meet the following requirements: - 51% of new jobs must pay a wage that is equal to or exceeds 125% of the state’s median wage as determined by the Arizona Department of Commerce. - Firm must offer health coverage for which the firm pays 80% or more of the premium for the employee or equivalent for alternative models. BENEFITS • Income tax credit up to 10% of qualified capital investment based on job creation to capital investment ratio. • Tax credit to be taken in equal installments over five years • Class 6 property tax reclassification, effectively constituting a 70-80% reduction. Period of reclassification is based on the following: -If company pays 51% of employees between 125% and 199% of the median state wage on average, the reclassification would exist for 10 years. -If company pays 51% of employees at least 200% of the median state wage on average, the reclassification would exist for 15 years. Arizona is clearly destined to be the future of the nation’s leader in solar consumption, and GPEC is working with its partners statewide to capture the opportunities in innovation and manufacturing to ensure the entire supply chain develops within the state. Source: GPEC

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AZ Corporation Commission ince 2001, Arizona and the Arizona Corporation Commission have aggressively pursued the development of solar resources. With over 300 sunny days each year, Arizona is uniquely positioned to capitalize on this energy resource through both distributed and utility-scale projects. In 2006, the Arizona Corporation Commission adopted the Renewable Energy Standard Rules and Tariff (RES) which require that 15 percent of regulated utilities’ retail sales come from renewable resources by 2025. Additionally, the RES provides that 30 percent of the renewable energy requirement in years 2011 and beyond be met by distributed generation projects installed on homes and businesses. This specific distributed generation requirement makes Arizona’s renewable standard unique across the country and is the singularly most aggressive standard of its kind. In addition to establishing annual renewable requirements, the RES has laid out a mechanism for paying for renewable energy. Under the RES, the above market costs for renewable energy are paid through a renewable surcharge, which is annually reviewed by the ACC. Each impacted utility files an annual implementation plan, which outlines their prior year results, proposed incentives and planned programs for the forthcoming year. Since the implementation of the RES, Arizona has experienced a dramatic upswing in renewable energy interest and planning for both utility-scale and distributed projects. Notably, in the two years since the inception of the RES, Arizona Public Service Company has increased its renewable portfolio by 650 percent and will have over 500 megawatts of renewable energy serving its customers by 2012. Similarly, Tucson Electric Power has continued to pursue distributed generation opportunities, announcing a deal with Sun Edison to finance, build, install and maintain 15 megawatts of distributed solar generation over the next five years. Upon full implementation, in 2025 the RES rules will power 500,000 homes and result in 2,500 MW COLLIERS INTERNATIONAL | 6

Kristin K. Mayes

Chairman Arizona Corporation Commission

of renewable energy generation. Additionally, the rules will prevent the emission of 93 billion pounds of carbon dioxide, 186 million pounds of nitrogen oxide, 129 million pounds of sulfur dioxide and 1,277 pounds of mercury. The ongoing efforts and successes to date by Arizona’s customers and utility companies reflect recognition of our solar present and future. A recent study conducted at the behest of the ACC conservatively estimated Arizona’s commercial solar potential at 10,000 megawatts, illustrating the depth of opportunity available. While the study noted the vastness of Arizona’s solar resources, the Commission recognizes that utilization of renewable potential will necessarily require new transmission lines. In short, transmission planning is a critical corollary in order to fully develop Arizona’s solar future. To that end, as part of the study, the Commission specifically asked parties to identify solar regions and the transmission resources which would be needed to bring the energy to load markets. Through these processes, the ACC intends to push efforts to harness solar market opportunities and develop needed transmission. As Arizona grows and transmission is developed, our position as a growth state adjacent to other growth markets leaves us poised to capitalize on solar energy. A recent report by the Arizona Economic Resource Organization highlights the attention and interest in developing Arizona’s solar market. Separately, the Bureau of Land Management anticipates that over forty applications for solar plant permits will be received within the next twelve months. In January of 2009, three new Commissioners were welcomed to the Arizona Corporation Commission. These Commissioners have publicly recognized the importance of solar power, Arizona’s tremendous potential and the necessity of its continued promotion. Under the Commission’s leadership, solar power will continue to play an important role in Arizona’s energy future. Kristin K. Mayes Chairman of Arizona Corporation Commission

Adding Roof-Top Solar Energy Is Becoming More Affordable

With today’s focus on renewable, sustainable technologies, the immense potential of solar energy is (literally) a hot topic, especially here in Arizona where we enjoy more than 300 days of sunshine each year. Converting the sun’s heat and light into energy continues to make more sense every day. Small solar energy systems—roof-top photovoltaic systems and solar water heaters—have long been known as an excellent, environmentally-friendly way for businesses to help contribute to meeting the growing energy needs of the state. However, in the past, high up-front installation costs have kept many from adding one of these systems. This is changing. Between federal and state tax rebates and cash incentives from local utilities like APS, rooftop solar systems are becoming more affordable. The savings can be as high as 80 percent. (The actual cost and subsequent discount varies based on the size and type of system installed.) Currently, APS has more than 10 megawatts of electric capacity available from roof-top solar across the state. Who is producing this solar energy? Along with individual residences, the list includes a who’s who of Arizona businesses. Luke Air Force Base, Arizona State University and Frito-Lay have all added roof-top solar to their facilities in the past few years. Another highprofile organization, the Phoenix Suns, announced last year that they will install their own system. These companies take part in APS’ Renewable Energy Incentive Program. The program offers cash incentives to grid-tied customers who currently receive electricity from APS. It is approved by the Arizona Corporation Commission and funded by rate payers. Businesses can receive a one-time incentive check for adding a system or receive yearly production-based

Barbara D. Lockwood, P.E. Director of Renewable Energy Arizona Public Service

incentives (PBI). These PBI contracts can be set for 10, 15 or 20 years. Because of the varied costs, possible energy savings and products available, those interested in adding roof-top solar systems are encouraged to do appropriate duediligence. Not only should they go to aps.com but

Businesses can receive a one-time incentive check for adding a system or receive yearly production-based incentives (PBI). also should consider visiting the Arizona Solar Center, located on the web at www.azsolarcenter.com. It is also important for consumers to understand the process for receiving cash incentives from their utility. Each month APS customers pay a renewable tariff. The first step is to receive a bid from a qualified installer. It is recommended that consumers acquire at least three bids. After receiving the bid, an application is submitted to APS. The application reserves funds from the pool of money collected by APS and must be completed before installing the system. The form must be accompanied by an itemized estimate of the installation from an Arizona licensed contractor. Installation should not be performed until written confirmation approving the request is provided by APS. Barbara Lockwood, P.E. Director of Renewable Energy Arizona Public Service

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The Future of Solar Looks Bright

Lori Singleton

Manager of Sustainable Initiatives and Technologies Salt River Project

needed to power about 50 households per calendar year – and will result in an estimated carbon dioxide (CO2) reduction of about 400 metric tons per year.

lthough you won’t notice it when you drive by, if you were to step onto the roof of the Gatorade distribution center in Tolleson, Arizona, you would see solar panels covering an area nearly the size of two football fields. 2,448 panels capture the sun’s energy and provide for about 40 percent of the building’s energy needs. As an SRP EarthWise Solar customer, Gatorade is just one of our commercial customers that is reducing its carbon footprint and investing in renewable energy. The EarthWise Solar program, which provides incentives for commercial and residential customers to install solar along with federal and state tax incentives, helps businesses defray the costs. The Gatorade system, which contains 2,448 solar panels spanning 68,000 square feet, produces more than 780,000 kilowatt hours per year – the amount

Today is a great time to look into solar electricity. State and federal tax credits, combined with utility rebates, make solar more affordable. In late 2008, Congress extended the federal tax credit for eight years, which gives customers and installers confidence in investing in solar energy. In today’s uncertain times related to fuel prices, knowing that your fuel source, the sun, is actually free is an added bonus. Solar’s future is brighter for a variety of reasons. Prices are expected to decrease. Solar panels, while having been in short supply over the past few years due to an unprecedented worldwide demand, are becoming more available. Solar manufacturing companies are opening new plants throughout the world. The first solar manufacturing plant in Arizona, Solon, recently began operation in Tucson with an annual production capacity of 60 megawatts. Solon plans to produce crystalline and thin-film solar modules as well as photovoltaic systems for the North American market. Improvements in technology are ahead. Newer thin-film technologies often use non-silicon semiconductor materials to convert sunlight into electricity, are much quicker to produce and can be printed on flexible or light substances. And better yet, this technology can be built right into roofing shingles. In addition, new integrated solar systems that will combine solar electricity and solar heating in one system are being explored. Using solar to run air conditioners is also important as it accounts for about 60 percent of our summer electricity bill in the desert. We’ve partnered with the Arizona Department of Emergency and Military Affairs to install a solar air conditioner on their ECO building at the Papago Park National Guard campus. In addition, research is being done on photovoltaic paint – imagine painting solar cells on new buildings throughout Arizona. Municipalities are helping to make installing solar easier. Applying for a permit to install a solar system used to be long and arduous. Today, cities recognize the

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importance of clean energy and as they have gained experience with system design and installations, they are working to reduce permit fees, fast track solar permitting, and streamline the process. At SRP, we’ve seen an increase in commercial customer interest and participation, which will likely continue in 2009. Other SRP business customers that have taken the step to invest in solar energy range from a rock crushing company to an equestrian center to a plastic surgeon’s office. SRP also offers a solar water heating incentive program for commercial customers which can be beneficial to customers who heat water for their manufacturing process or for pool heating. Gatorade is installing solar to preheat water in their manufacturing process and 10 Valley resorts are heating pools with solar systems. For solar photovoltaic systems, SRP will help defray the cost for commercial customers with an incentive of $2.25 per watt, up to $450,000. SRP commercial customers who install a solar water heating system qualify for a one-time incentive of $0.50 per kilowatt hour of metered first-year energy savings, up to $250,000. Today, because traditional sources of energy remain less expensive, the solar industry relies on companies that place a high value on sustainability and ensuring a clean energy supply for the future. Through increased competition in the solar manufacturing industry and with advances in technology, it is my hope that one day solar will be a viable and important resource for every Arizona business.

Lori Singleton SRP Manager of Sustainable Initiatives and Technologies

For information about the SRP EarthWise Solar program, log onto www.srpnet.com/solarbiz.

SOLAR ENERGY NETWORK 2009 | 9

Solar Energy on the Rise at TEP

Denise Smith

Director of Renewable and Conservation Programs Tucson Electric Power

At Tucson Electric Power, we’re looking forward to a time when most people aren’t very excited about solar energy. By 2020 – or hopefully even sooner – solar power systems and other renewable energy resources will be considered just another part of a responsible utility’s generation portfolio. The “green power” systems we promote today as signs of progress will, at some point, be considered routine. Arizona residents will simply assume that their local electric utility is generating power from our state’s abundant sunshine. We’ll know we’ve achieved our renewable energy goals when the debut of a new photovoltaic array or concentrating solar plant is received with about as much fanfare as a substation upgrade. Of course, many of us at TEP still get pretty excited about substation upgrades. And our zeal for renewable energy, which took root more than a decade ago, will endure long past the time our customers begin to lose interest. So for now, while energy from the sun is still considered “hot,” TEP is offering a number of programs to help our customers transform their enthusiasm for green power into the installed systems that will become an integral part of our local energy infrastructure. TEP is already recognized as a solar energy leader for its company-owned systems and residential programs, and we’re looking to build new partnerships with commercial customers to help us meet our renewable energy goals. That’s why we have an impressive variety of incentives and programs designed to help commercial, governmental and nonprofit organizations adopt solar technology. For customers seeking to install systems of 20 kilowatts (kW) or larger, TEP offers production-based incentives with payment for each kilowatt hour (kWh) produced and revenue streams lasting between 10 and 20 years. When combined with tax benefits provided by the state and federal governments, these incentives can cover up to 85 percent of total project costs. For commercial customers considering smaller systems, up-front SunShare rebates of up to $2,500 per kW of manufacturer’s-rated DC capacity can reduce the amount of time it takes to recoup initial investment costs through energy savings. These incentives appeal to entities both large and small. The Pima County Board of Supervisors, for example, is taking advantage of SunShare incentives to install a 1-megawatt (MW) solar energy system at a facility in northwest Tucson. This new photovoltaic COLLIERS INTERNATIONAL | 10

array will provide clean, green energy for county operations while helping TEP achieve its renewable energy goals. Tucson’s Brooklyn Pizza Company, meanwhile, recently unveiled its own 14,600-watt solar array. The rooftop system generates 24,500 kWh of electric power every year, allowing the restaurant to boast of producing “Solar Powered Pizza” for its customers in the University of Arizona neighborhood. Financial incentives totaling more than $77,000, including a $36,000 SunShare rebate, covered more than 75 percent of the installation costs. TEP is also encouraging the development of larger systems by contracting to purchase the renewable energy credits (RECs) they generate. In this way, TEP enabled construction of a 750-kW array at the headquarters of Global Solar, a Tucson-based manufacturer of flexible photovoltaic material. The 6,600-module array, installed in cooperation with Municipal Mortgage & Equity and Solon Corporation, will generate about 1.2 million kilowatt-hours of power each year. UniSource Energy Corporation, TEP’s parent company, also has signed an agreement with Marylandbased SunEdison LLC to purchase the RECs from up to 15 MW of distributed solar power systems built over the next five years. SunEdison is expected to develop ground-mounted systems for commercial customers in areas served by TEP and its sister company, UniSource Energy Services (UES). While our customers typically favor photovoltaic systems, TEP also offers incentives for other kinds of solar technology. Rebates are available for solar pool heating systems, solar water heaters and even solar space heating or cooling systems. All these solar energy projects will help TEP pursue goals set by Arizona’s ambitious Renewable Energy Standard. The rules adopted by the Arizona Corporation Commission call on state utilities to increase the percentage of power they generate from renewable resources until that share reaches 15 percent by 2025. A rising portion of that power must come

from distributed systems, so TEP will continue to seek new solar energy partnerships with its customers. We’ve long recognized that meeting our renewable energy goals will require a team effort. For nearly a decade, our GreenWatts program has offered customers an opportunity to invest in our community’s solar energy assets by adding a donation to their monthly electric bill for as little as $2 per month. Commercial customers can call (520) 623-7711 to sign up and help Tucson become more green. To date, supporters have contributed more than $1.4 million to the program, supporting the development of more than 220 kW of solar power systems at schools, parks and other public places.

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Support for solar power has never been stronger, and TEP stands ready to help our customers share the benefits of this promising energy technology. For more information, just visit us online at www.TEP.com. Denise Smith Director of Renewable and Conservation Programs TEP

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Solar Projects

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1 - COX Cox has completed its 150kw solar energy project – a multimillion dollar solar canopy atop the Cox Deer Valley location parking garage. This project will produce 150 kw of power per year, equivalent to the fuel it takes to power more than 20 homes for a year. Cox Arizona will save 392,081 lbs of carbon dioxide each year. 3 - MERCEDES-BENZ OF ARROWHEAD A 50-kilowatt solar power system was installed for the dealership. The solar system generates 35 percent of the retail center’s power during off-peak hours and will reduce greenhouse gas emissions by an estimated 1,180 metric tons over the next 20 years. MercedesBenz of Arrowhead is the first luxury dealership in the world to have earned the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED®) Silver Certification.

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2 - PHOENIX CONVENTION CENTER A solar panel system was installed that covers approximately onethird of the two-acre roof atop the center’s west building. The solar panels are expected to produce 150,000 kilowatt hours of electricity per year. The project cost $850,000.

4 - TOLLESON GATORADE PLANT Gatorade has both a PV system, which is on the distribution center, and a thermal system on the manufacturing plant. - PV System: 500-kilowatt system that produces 780,000 kWh of energy per year–enough electricity to power 50 Arizona houses for a year. - Solar Thermal: Estimated to reduce CO 2 emissions by approximately 370 metric tons per year. Heats enough water to provide for 279 Arizona homes.INTERNATIONAL | 7 COLLIERS SOLAR ENERGY NETWORK 2009 | 11

Entrepreneurship Driven Innovation

Bud Annan

Co-Director - Solar Technology Institute Science Foundation of Arizona

management structure that assesses performance, probability of success, and transition capabilities linking technology development to industry acceptance requirements and to state energy goals. The STI approach would not be possible without extensive collaboration with the U. S. based solar energy industry, Arizona’s electric service providers and state policy makers. These collaborations offer the most effective way to solve the simultaneous, complex, and daunting set of technology barriers limiting the scale of solar energy in Arizona. For STI, collaborations also offer a way to provide a ‘feedback platform’ among users, industry, and policy organizations that will accelerate the pace of technology innovation.

Arizona’s solar energy boom that is expected to play out over the next decade is being driven by public energy security and environmental policies led by a year-to-year consumer funded clean energy portfolio requirement as well as technology advances that promise a new generation of more cost effective and reliable solutions. The SFAz Solar Technology Institute (STI), a special initiative of Science Foundation Arizona (SFAz), is participating in this exciting endeavor by providing a pipeline of innovation coupled with a spirit of entrepreneurship—a spirit that arises from close cooperation with universities and U.S. based energy industry to help lower the technology risks and build a viable Arizona solar energy supply chain industrial base. SFAz STI’s approach to innovation is to support the best of the many solid ideas and to do them well. It provides a managed research discipline designed to enhance the flow of new ideas for continued industry development. It is an approach that is well understood by both STI and its sponsored university teams because it is a requirement needed for our organizations to grow and to gain credibility with our customers. The new disciplined innovation approach includes an emphasis on linked university multidisciplinary teams partnered with industry, an understanding of the energy industry, and a welldefined industry-backed technology roadmap. Our university teams have also made it a priority that regional needs shape and inform the research projects that they carry out. During the three-year period of performance, STI will apply a common user-oriented COLLIERS INTERNATIONAL | 12

In order to develop its collaboration work plan, STI undertook a process to identify specific technology development and deployment problems and formed research teams to identify the research capability to attack these problems. Meetings were held at each of the state universities, the utility companies, and the solar industry companies in Arizona to inventory the state’s current assets and research strengths relevant to solar energy. Recent studies, reports and analyses of solar energy status and potential in Arizona were reviewed. The recent studies and reports outlining actions needed to cover upstream technology opportunities as

well as resolving the downstream technical and policy barriers provided an excellent foundation for shaping this research plan. Five research university / industry partnership projects were selected for the first research plan. They are: 1. Establish Arizona as the most comprehensive solar testing and analysis center in the world. 2. Create a process that defines solar’s growing role in an Arizona electricity grid infrastructure at the Gigawatt scale. 3. Develop an innovative and cost effective concentrator photovoltaic system. 4. Design a new generation of thin-film solar cells. 5. Define short-term and long-term Arizona based storage options.

SFAz STI’s plan also includes the creation of a working collaborative - an innovative effort that spans the boundaries between researchers and practitioners. It works with local and state policy makers, resource managers, and industry leaders to help Arizona plan for a solar energy based economy. With applied projects and regular dialogue, the Collaborative will seek to understand the interplay of energy, economic development and quality of life. It offers technical assistance, produces planning studies, policy analyses, and scientific reports, and facilitates applied research to aid decision-making. Finally, STI seeks to train a new cadre of graduates who are not only highly competent in disciplines related to renewable energy, but also informed about national science and technology policy, and sensitive to the social context of their work. This is the trained workforce needed by all levels of the economy for sustained growth. Our university partners, as they carry out their research projects, will design and implement a coordinated and comprehensive renewable energy education initiative.

Bud Annan Co-Director Solar Technology Institute Science Foundation of Arizona

SOLAR ENERGY NETWORK 2009 | 13

Arizona Economic Resource Organization The Arizona Economic Resource Organization (AERO) is a private/ non-profit corporation created to diversify and transform Arizona’s economic development activities, and expand Arizona’s globally competitive, knowledge-based economy. AERO is an actionoriented, private-public partnership driven by private sector and market-based principles. One of AERO’s most significant initiatives is the work of its Solar Task Force. This Task Force was formed to develop a strategic framework to guide Arizona’s efforts to become a world leader in the solar power industry. Specifically, AERO asked the Task Force to (i) clarify the vision for Arizona as a global leader in the solar industry, (ii) describe the strategies through which Arizona can achieve this vision, (iii) recommend major initiatives required to execute the strategies that are outlined and (iv) suggest next steps to begin implementation. Arizona possesses a unique advantage when it comes to solar power – an abundance of sunshine found in very few parts of the world. All things being equal, Arizona can generate solar electricity at a lower cost than regions with less sunshine. The market for solar power can be enormous and Arizona, with its favorable solar resource, land availability, large and growing domestic demand and proximity to California and other western states in need of clean power, is well positioned to develop the world’s leading market for centrally generated solar power. The Southwestern United States has relied heavily upon coal and natural gas for generating fuels, and is now launching aggressive renewable energy programs. The change is timely, as the cost of these conventional fuels has risen dramatically in recent years. A shift from natural gas to solar power will reduce generation cost uncertainty, reduce dependence on fossil fuel r e sources, and reduce greenhouse ga s a n d pollutant emissions. The fundamental opportunity for Arizona is to be the first to achieve a sustainable market without the excessive use of the types of subsidies that traditionally have characterized the solar industry – a feat we believe is feasible with a focused effort and broad community support. Although market incentives and other subsidies can play transitioning roles, the COLLIERS INTERNATIONAL | 14

Sal Rivera

Executive Director Arizona Economic Resource Organization

Arizona will become a global leader in incorporating solar power into its energy mix and in exporting high value solar technologies, products and services to global markets.

fundamental requirement for success is the creation of the technical, market and policy infrastructures that are needed to support a sustainable solar market and a leading industrial base. In achieving preeminence within the global solar industry, Arizona would necessarily develop a number of enabling technologies and capabilities - ranging from innovations in material sciences and biosciences to novel approaches to policy development and financial engineering that could be leveraged to form market-leading capabilities across a broader set of industries. The development of a world leading solar industry therefore should be viewed as a key step toward Arizona’s larger quest for leadership in the global information-driven societies and economies of the 21st Century. AERO’s Solar Task Force is working to implement a set of recommendations that will enable Arizona to move quickly, but thoughtfully, toward global leadership and toward achieving the following vision: Arizona will become a global leader in incorporating solar power into its energy mix and in exporting high value solar technologies, products and services to global markets. By leveraging its preeminence in the solar power industry, Arizona also will become a global leader in a broad set of industries that characterize the information-based societies and economies of the 21st Century.

Sal Rivera Executive Director Arizona Economic Resource Organization

The University of Arizona Our nation’s growing dependence on fossil fuels leaves us vulnerable to factors beyond our control, and intensifies the greenhouse effect. With more than 300 days a year of sunshine, everyone knows Arizona is perfectly positioned to take advantage of advances in the development and use of solar energy. But our challenge has been to energize the industry to catch, convert and work with our most accessible source of renewable energy. The University of Arizona is positioned to be a catalyst in this effort. The Arizona Board of Regents, which oversees all three state universities, has acted with great foresight in supporting its own Solar Energy Initiative. That, in turn, led to the Arizona Research Institute for Solar Energy (AzRISE) at The University of Arizona and the Solar Power Institute at Arizona State University. These programs are forming publicprivate partnerships to not only look at research and development but also economic analysis and public policy studies and education for the next generation solar workforce. The University of Arizona began on this path to be the most environmentally sensitive public university in the nation by embracing the goals of sustainability and a clean environment. The UA started plans with the University of Phoenix and Southwest Solar Technologies for two demonstration sites for solar energy generation. We have an active Campus Sustainability Program and outstanding programs in environmental engineering. Our Institute for the Study of Planet Earth is unequaled in the nation in its study of climate change. Further, the geology of Arizona lends itself to development of solar energy far beyond the superior climate. In addition to having almost twice the solar irradiance level than that of the East Coast, we also have large underground salt deposits and regions where large differences in elevation exist. The salt basins allow the formation of large, sealed underground caverns for the storage of compressed air produced with solar or wind energy and released at night.

President Robert N. Shelton The University of Arizona

have the potential to generate and store enough solar-based energy to power the entire state and export enough energy to power the entire country. The possibilities are astounding. There are technological problems that must be solved and economic and policy decisions that must be made to move forward. Critical technological advances are required to improve solar conversion devices and demonstrate storage methods. As part of the effort with AzRISE to develop pilotplant like demonstration projects, we are testing the integration of solar energy generation systems with adequate energy storage methods. Systems analyses will be developed to design optimized systems that operate at low cost yet produce electricity reliably and meet the demand curve. The demonstration projects will also examine integrated beneficial land use and will include agriculture and biofuels fields with solar powered energy efficient buildings. The great value of these demonstration sites comes from many directions including the ability to do real economics and test predictive economic models for an integrated generation/storage facility for a central power plant or for a distributed system, the ability to examine the actual operation of the integrated systems and to test the inter-relationships between generation and storage capacities and learn how this changes with various weather patterns. The demonstration sites will be operated by a non-profit consortium directed by The University of Phoenix, Southwest Solar Technologies and AzRISE. Partners will be sought among the utilities, other universities, solar industrial partners and community partners. A location is being considered in Phoenix and one in Tucson. The University of Arizona must lead by example to increase energy efficiency, adopt renewable energy supplies, and explore ways to better utilize solar energy. We are ready to move forward and help propel the State of Arizona into the Solar Age. President Robert N. Shelton The University of Arizona

By pairing solar irradiance and Arizona geology, we SOLAR ENERGY NETWORK 2009 | 15

Arizona is Poised to Become the Global Leader in Solar Energy Arizona has the potential to become the unrivaled global leader in solar energy—the leading center for the development, manufacture, use, distribution, and control of solar-based energy systems on the planet. But in order to become the Silicon Valley of the solar power industry, Arizonans will have to embrace an ambitious new mindset matched with commensurately robust public engagement. Our success will require a hybrid public-private partnership model and a policy-driven market approach. Comprehensive regional planning must dovetail with sound fiscal policies and strategic investment in infrastructure all focused on one common objective: positioning Arizona as the epicenter of the solar industry. It is a commitment that promises abundant economic and social returns. Fortunately, a strategic framework to guide Arizona toward global preeminence in solar power is already being developed. The Arizona Economic Resource Organization (AERO), a public-private-nonprofit collaboration dedicated to providing guidance for public policy issues related to statewide economic development, released its Solar Task Force Report in November. Not only has this coordinating board articulated a vision for Arizona to leverage its potential in this critically important renewable source of energy, it also describes strategies and recommends the major initiatives that will be required to succeed. The task force further underscores the potential for Arizona to leverage its competitiveness in solar to other innovative technologies. With projections suggesting the likelihood that within the next quarter-century more than 10 million Americans will call our state home, Arizona must confront a host of challenges as it matures and in terms of population becomes one of the ten largest states in the Union. At its heart, an emerging “megapolitan” region comprised of multiple interdependent jurisdictions—the Sun Corridor— will stretch from the Prescott region of Yavapai County south to the border with Mexico. Eight of 10 million Arizonans will call the Sun Corridor home. This vast urban agglomeration promises to power our creativity and innovation and foster socioeconomic gains as we engage competition from throughout the global knowledge economy. Such rapid urbanization in a fragile semi-arid ecosystem brings with it unprecedented demands for new sources of renewable energy. The advancement of solar energy in Arizona is thus intrinsically interrelated with concerns about the sustainability of COLLIERS INTERNATIONAL | 16

President Michael M. Crow Arizona State University

our region. Sustainability represents an opportunity rather than a sacrifice, offering the prospect of new industries, new markets, new and better paying jobs, healthier communities, as well as a better environment. Business and industry need not fear a negative tradeoff between acting sustainably and making profits. With more than 300 days of sunshine every year, Arizona has the largest solar energy generating capacity in the nation, and Arizona State University has reaffirmed its commitment to renewable energy through what will be the largest deployment of solar power infrastructure by any American university. Our transformative and transdisciplinary Biodesign Institute has a number of projects exploring various aspects of solar energy, including a joint project with petroleum giant BP to harvest photosynthetic bacteria to produce renewable liquid fuels, such as biodiesel, and another project to use advanced bacteria to produce biohydrogen. Our researchers are also using nanotechnology to break through the current technological hurdles of solar energy, making the next generation of solar cells more efficient and cheaper to produce. Multiplying these types of academicgovernment-industry partnerships throughout the leading institutions in America will drive the innovation that will be required to sustain our planet. As we engage competition from across the globe, the path forward will require both strategic collaboration and perpetual innovation, and in both contexts ASU represents a new paradigm for the solution-focused research university of the future. President Michael M. Crow Arizona State University

Northern Arizona University Northern Arizona University (NAU) is located in Flagstaff and offers tremendous resources to the renewable energy industry. Serving as the hub for the entire northern half of the state, NAU offers a centralized location for intellectual capital, business incubation, and closeknit governmental ties. The area has a rich tradition of respecting the environment, and is home to one of the seven natural wonders of the world – the Grand Canyon. As a Doctoral HighResearch Activity university, NAU receives more than $50 million in externally funded research and service activities each year. Sustainability – of natural and built environments – is one of the core research strengths of the institution, with active funding each year from the National Science Foundation, the US Department of Energy, the Environmental Protection Agency, and state and federal land management agencies. Solar With terrain that varies from 3,000 to 12,000 feet in elevation, cooler temperatures, and 300 sunny days per year, Northern Arizona offers ideal conditions for solar research and development. University researchers are active in investigating high-performance materials for the capture and storage of solar energy. The Applied Research & Development (ARD) building, located on the NAU campus, is the “greenest building in academia” per The Chronicle of Higher Education. This LEED® Platinum facility uses natural day lighting for 75 percent of the interior, solar thermal panels for heat, a 156 KW photovoltaic array, and computerized venting windows and roller shades. This building has received national and international recognition and is a living laboratory for our students, faculty, and the green building community. Wind The high flat plains of northeastern Arizona provide the strongest and most reliable wind in the state. The university’s Sustainable Energy Solutions group is a world leader in mapping and analyzing wind resources. Southwest Windpower, the largest manufacturer of small wind turbines in the world, is headquartered in Flagstaff. Their products are used in remote villages, at sea, and anywhere off-grid electricity is needed. The area also houses Foresight Wind Energy, a developer of wind parks throughout the Southwest.

President John D. Haeger Northern Arizona University

Bio-Mass Flagstaff is in the center of the largest stand of ponderosa pine in the world, a resource for the biomass industry. Years of fire suppression have provided for several decades of wood waste supply that is currently being cleared through forest thinning operations in the adjacent Coconino and Kaibab National forests. NAU is in discussion with the Department of Energy to build an oncampus bio-mass plant that would use a new patented technology to transform the wood waste into a viable liquid transportation fuel.

Organizations

Northern Arizona also offers a close-knit community of academic and government organizations that focus on action and quick decision making. Some of these organizations include: Sustainable Economic Development Initiative (SEDI) creates sustainable economic development by bringing together higher education, business, and the non-profit sector. Northern Arizona Renewable Energy Group (NAREG) is a public/private cooperative with Arizona Public Service committed to purchasing significant portions of their electricity from renewable sources. Sustainable Energy Solutions (SES) led by Dr. Tom Acker and NAU’s engineering and business faculty, has long-standing support from the National Renewable Energy Laboratory (USDOE), Arizona’s electric utility industry, and the Arizona Department of Commerce. The biennial Southwest Renewable Energy Conference, held at NAU, assembles technical and policy leaders from throughout the West. NAU’s Office of Sustainability creates renewable energy strategies and business development outreach for the region. John D. Haeger President of Northern Arizona University

SOLAR ENERGY NETWORK 2009 | 17

Solar Research at ASU ong ago Phoenix was named “Valley of the Sun” primarily to attract tourists seeking recreational or leisure destinations. This image is changing as we realize that Arizona’s highly abundant natural resource, sunlight, can be harnessed to produce large quantities of electricity. This has formed a new a t t r a c t o r to solar energy companies and is forming a significant industry here. ASU is a major force in Arizona’s solar transformation with its leading research, educational programs and industry interactions that accelerate the adoption of solar power into the State. ASU’s Solar Energy research programs span the entire solar “supply chain” with its activities in basic science, engineering, innovation, technology prototyping, transitioning technology and industry support. Technology activities are closely tied to programs in economics, business, government policy and the environment. ASU is unique in that it coordinates these interdisciplinary strengths toward addressing the major global goal of realizing a sustainable society. There are leading research areas in basic science, materials, energy conversion, electric grid design and analysis, prototyping, economics, construction, environment and policy. Solar Energy research spans the Colleges of Engineering, Liberal Arts and Sciences, Design W.P. Carey School of Business Supply Chain Management, Decision Theater and the Biodesign Institute. Within these Colleges there are several Centers which have major solar research efforts.

ASU researchers are leaders in using nanotechnology and applying their knowledge to understand and overcome the current technological hurdles of solar energy, making the next generation of solar cells more efficient and cheaper to produce. The Solar Power Laboratory builds and studies very high efficiency solar cells and the theoretical limits to their performance. Research on high efficiency silicon and thin-film solar cells is done in close collaboration with industry. The Advanced Photovoltaics Center focuses on low cost, very large area organic solar cells that could be manufactured by conventional printing techniques. The world-renown Photovoltaic Testing Lab has recently merged with TÜV Rheinland to provide solar module testing and certification services to the solar industry. It is one of three such labs in the world and has started a major effort in PV module reliability testing. ASU is among the top four universities in the United States in the number of Solar America Initiative R&D Grants won for photovoltaics module testing, advanced solar cell materials and next generation photovoltaic devices. Science Foundation Arizona George Maracas, Ph.D. is heavily committed to ASU Professor, Solar and Solar Energy and provides Technology Consultant significant matching funds www.NanArc.com to these efforts. Solar and renewable power sources produce unique challenges as they become adopted on the large scale. PSERC (Power Systems Energy Research Center) are leaders in the area of power systems simulation, modeling and design of the electric grid and how to do this with solar power. The engineering efforts are coupled with economic, land use, policy and economic models to track and predict the factors that govern societal adoption of solar and renewable energy. Integration of these is performed in the Decision Theater which enables visualization of the intricate interdependencies of these models. ASU has one of the country’s largest university enrollments and is committed to education at all levels. Renewable Energy curricula are being formed at technical, undergraduate and graduate levels. ASU Polytechnic recently received a $1M National Science Foundation grant to develop curricula for the high tech work force. Students can pursue Certifi-

COLLIERS INTERNATIONAL | 18

George Maracas, Ph.D.

ASU Professor, Solar and Technology Consultant www.NanArc.com

cate Degrees in Solar Power and Renewables showing ASU’s awareness and commitment to train skilled workforce in these quickly growing industries. ASU also realizes the importance of industry input into the students’ development and actively pursues internship programs at companies. Adjunct Faculty positions can be used for a company partner to develop courses (and curricula) tailored to the particular industry’s needs. ASU has the first School of Sustainability and Global Institute of Sustainability. SoS curricula offer students the opportunity to take courses in cross-disciplinary areas such as technology and business. Community outreach activities accelerate adoption of new technologies by educating the public that adopting renewable energy and sustainability concepts is economically beneficial to them.

to industry and forming spin-off companies. As a result, many industry partnerships have been formed augmenting the efforts of both the companies and university. Working closely with municipalities and economic development organizations produces a

Arizona CAN become the Solar Capital of the World!

ASU has adopted the model of “use-inspired research” which facilitates transitioning innovative technologies cohesive, comprehensive view of what talent and incentives companies will have if they relocate to Arizona. This has a major impact on producing new jobs. Leadership in sustainability is shown in one way by ASU’s commitment to the environment and adoption of solar energy. ASU presently has 1.85MW of installed solar panels which provides the Tempe campus with electricity, lowers carbon emissions and saves money. This is the largest single-campus installation and a model for other universities. Plans are to increase this to over 10MW over all its campuses. ASU received the highest possible Green Rating (99%) by Princeton Reviews for its environmentallyfriendly policies, practices and curricula. The President’s American Recovery and Reinvestment Act of 2009 will have a transformational effect on our society. Such legislation will provide the framework for transforming our energy system to make our economy less carbon-intensive, and less dependent on foreign oil. ASU is uniquely poised to support the multi-billion dollar investment in clean energy R&D. This is an exciting time for US Renewable Energy, Solar and especially Solar in Arizona U.S. Secretary of Energy, Steven Chu, issued groundbreaking testimony about President Obama’s energy plan and what’s needed to confront climate change. He ended the testimony by saying: “Ultimately, solar will be the answer.” The opportunity is before us to become global leaders in Solar, create or save thousands of jobs, save the environment and produce a sustainable society. Arizona CAN become the Solar Capital of the World! SOLAR ENERGY NETWORK 2009 | 19

Arizona Institute for Renewable Energy

Stephen Goodnick

Director of the Arizona Institute for Renewable Energy Arizona State University

Stephen M. Goodnick (M’88-SM’91-F’04) received the B.S. degree science from Trinity University, San Antonio, TX, in 1977, and the M degrees in electrical engineering from Colorado State University, Fort Coll 1983, respectively. transdisciplinary research He was an Alexander von Humboldt Fellow with the Technical Unive in different fields of Munich, Germany, and the University of Modena, Modena, Italy, in 1 renewable energy including solar 1986 energy (photovoltaics respectively. He was a faculty member from to 1997 with the and thermal), biofuels, Corval Electrical and Computer Engineering at Oregon State University, fuel cells and batteries, energy generation and It is estimated that served as Chair and Professor of Electrical Engineering with Arizona S transmission, energy efficiency, and energy economics over the next decades, Tempe, fromStates 1996willto 2005. served DeputybaseDean forcenter the Ira A. F and He policy. The as knowledge of the Stephen M. Goodnick the United is formed ASU’s cutting edge research Director of the Arizona exhaust most of as its Associate Engineering during 2005-2006, served Vicefrom President for Research for Arizona e x p e r i e n c e i n t h e s e a r e a s c o m bined with Institute for Renewable Energy reserves of domestic fossil from 2006-2008, and currently is Director of collective the Arizona Institute for Nanoelectronics and knowledge in nanotechnology, biosciences, fuels. The depletion of Arizona Institutethese for resources Renewable coauthored over and 180development. journal articles, materials research Researchbooks, an has ledEnergy. to increasedHe hasand centers currently within Dr. AIREGoodnick include the was Center related to transport in semiconductor devices and nanostructures. President reliance on foreign supplies, for Bioenergy in and2003-2004, Photosynthesis, Co-Chair the Solar Power which not Department only weighs heavily on Computer Engineering Heads Association of the IEE Laboratory, the Advanced Photovoltaics Center, the the American economy, but may Microwave Symposium in Phoenix, 2001, andCenter was for theNanophotonics, Program Chair the Fourth IEEE and for the Center for potentially pose increased risks to national security. Nanotechnology in climate Munich in August 2004, andRenewable July 2009. Energy Electrochemistry. This, combined with change and the obvious consequences of the environmentally destructive processes through which we obtain and refine fossil energy, has produced a critical need for alternative, sustainable energy sources. Arizona State University has made a major commitment to sustainability, and one of the major initiatives within this effort is that of renewable energy. The Arizona Institute for Renewable Energy (AIRE) was established in 2006 through support provided by the Technology Research Infrastructure Fund (TRIF) to accelerate ASU’s research capability in renewable energy, to foster innovation and commercialization of renewable energy technologies in the Southwest, and to greatly enhance ASU’s visibility nationally and internationally as a renewable energy leader. AIRE forms a broad umbrella encompassing a number of centers across the university, with a mandate of bringing together the research efforts at the university (individual researchers, groups and institutes) with the purpose of conducting coordinated COLLIERS INTERNATIONAL | 20

Besides a focus on cutting edge renewable energy research, AIRE has a mission to provide outreach and support to the public through talks, seminars, workshops and general information on various aspects of renewable energy. AIRE is engaged with the renewable energy industry as well as working with state and local government in their efforts at expanding solar energy in the region. AIRE is also supporting renewable energy education through the development of a renewable energy curriculum, short courses and training, as well as research experiences for undergraduates and graduates in renewable energy research programs. Solar energy is the cleanest, most abundant, renewable energy source available. Arizona is leading the way to develop this resource to its fullest potential as both a key to a sustainable energy future, and an economic driver for the region, and AIRE is working with industry, government and universities to achieve this goal. For more information please see aire.asu.edu

TÜV Rheinland Photovoltaic Testing Laboratory Solar energy is the cleanest, most abundant, renewable energy source available. Arizona is leading the way to develop this resource to its fullest potential as both a key to a sustainable energy future, and an economic driver for the region. Arizona is now home to the premier performance testing and safety certification organization globally for photovoltaic technology, TÜV Rheinland Photovoltaic Testing Laboratory. The TÜV-PTL is a collaborative effort from TÜV Rheinland of North America Holding, and Arizona State University. TÜV Rheinland group, founded in 1872, is a global provider of safety testing and quality assessment services for a variety of manufacturing based industries. TÜV Rheinland group currently operates in over 60 counties with more than 13,000 employees. TÜV Rheinland has a long history with photovoltaic testing and currently operates photovoltaic testing laboratories in five major regions across the globe. Locating to Arizona was an easy choice for TÜV Rheinland. We look at three primary elements when establishing our business operating units. Business

infrastructure, workforce availability, and the business climate—in all three, Arizona excelled. When you couple these three factors with abundance of natural sunshine, the choice was overwhelmingly in Arizona’s favor. An additional key element for TÜV Rheinland to relocate to Arizona was the relationship with Arizona State University. The original formation of the laboratory was a university operation and dates back to the early 1990s as part of a joint United States Department of Energy and Arizona State University project. In November 25, 1991, Dr. Charles Backus, Dr. Byard Wood, and Mr. Bob Hammond met at

Richard Bozicevich

Vice President of Business Development TÜV Rheinland PTL

Denny’s restaurant in Tempe, Arizona and agreed to establish a “Photovoltaic Testing Laboratory” (PTL) at Arizona State University (ASU) with a start date of January 1, 1992. The original directions included: providing a state-of-the-art laboratory equipped with faculty, staff, and students who could perform research related to Photovoltaic (PV) module reliability, durability, and performance and establish the capability to perform qualification testing per all relevant national and international standards. This industry and academic partnership is a very key part of our strategy going forward. Not only do these ties link TÜV Rheinland to the formation of the solar market in the United States, but we also truly envision that this type of collaborative effort with Arizona State University will allow our TÜV Rheinland group the ability to stay ahead of the technology changes and shifts in a quickly growing energy marketplace. Today, under TÜV Rheinland, the vision of the laboratory is growing to encompass an entire range of testing for many segments of the energy marketplace. As the industry grows, an evolution of products is taking take place from smart grid and distributed grid controllers, to micro power inverters to a range of wireless controlled electronics. These products all support implementation of solar and alternative power into our everyday lives. In our view, consistent with TÜV Rheinland philosophy, we feel it is highly important to service the entire supply value chain of the energy technology marketplace. In this fashion we provide the most beneficial service to our clients while performing our role as a safety and certification body for the consumers. As we continue to expand our base of business, we see Arizona as one of the prime regions to help foster our growth. Since 1872 TÜV Rheinland has a tradition of fostering harmony between man, technology, and the environment. With the addition of the TÜV Rheinland Photovoltaic Testing Laboratory, we continue that tradition. For more information please see www.tuvptl.com Richard Bozicevich Vice President of Business Development TÜV Rheinland PTL

SOLAR ENERGY NETWORK 2009 | 21

ASEA is on the Move

he Arizona Solar Energy Association is alive and well! We’ve accomplished many things in 2008 and 2009, and we have great opportunities and are making plans for the future. As a non-profit chapter of the American Solar Energy Society, our mission is to educate the public and advocate for solar energy. Let me give you an overview of what’s been happening recently. Our longstanding seminar series in Scottsdale and Fountain Hills has continued and is attracting more people. They recently covered such topics as installing photovoltaics and energy efficiency in buildings. Tucson has started a new series, with its initial seminar being an in-depth look at the usefulness and cost of photovoltaics. Seminars so far this year have been on water heating, pool heating and solar cooling. COLLIERS INTERNATIONAL | 22

Vivian Harte

Chair Arizona Solar Energy Association

Our Solar Home Tours have also been strong. We either sponsored or co-sponsored solar home tours in seven different Arizona communities last October and November, and we estimate that over 5,000 people attended. We’re now in the process of planning our fall, 2009 Solar Home Tours. We provided information to a large number of people on many fronts. We sent out quarterly newsletters to our members, which included statewide news on solar as well as information on jobs in the solar industry and a calendar of events around Arizona. We also e-mailed numerous Solar Flares to our members with up-to-date information on solar issues. We had several articles in newspapers, such as the Arizona Daily Star and the Green Times. In addition, we appeared on radio and television shows to spread the word about solar energy. We created one-page double-sided brochures to give to the

On May 18-22, 2010, the American Solar Energy Society will be holding its national solar conference and trade show at the Phoenix Convention Center. ASEA has coordinated members of the community to serve on the Local Organizing Committee. Our job will be to set up workshops and tours for the public as well as host an outdoor solar demonstration area. I’d like to leave you with some important information. Many people have asked what steps to take to buy a solar product in Arizona. Here they are:

general public at events. These brochures are on gridtie photovoltaics, solar ovens, solar water heaters, and passive solar principles. You can download them from our website at arizonasolarenergy.org/pubs.html. We’ve taken tables to numerous events around the state in the past few months and given away over 3,000 brochures. On March 21, 2009, we hosted our Annual Membership Meeting at ASU’s Global Institute of Sustainability. George Maracas, the Chief Operating Officer of the Solar Power Laboratory in GIOS, was our speaker. You can view his PowerPoint presentation at our webpage listed in the previous paragraph. And don’t forget advocacy. We spoke before the U.S. Bureau of Land Management and Department of Energy in favor of using BLM land for large solar arrays for utilities. We also have been involved in the Solar Partnership in Tucson, which is creating a plan for solar energy in southern Arizona. So what do we have in store? Many new things. At our meeting in January, 2009, Board members and ASEA members discussed several new programs and fundraising opportunities: doing energy assessments, offering ½-day and 1-day in-depth workshops on solar topics to homeowners who are getting ready to install solar, and holding specialized seminars for solar professionals. Not all of these will get off the drawing board right away, but the Board is excited about generating more ways to educate Arizonans.

1

Do all energy conservation and efficiency steps first.

2

Find a good installer (visit www.arizonasolarcenter.com, Products/Services Directory, Solar Water Heating).

3

Have the installer visit the site to size the system and give you an estimate.

4

Sign an Interconnection Agreement with the utility company (photovoltaics only).

5

Apply for the utility rebate with the utility company.

6

Get a permit from the City or County.

7

Have the installation completed.

8

Inspection by the City or County.

9

Inspection by the utility company.

10

Apply for state and federal tax credits after your system is operational.

2009 and 2010 promise to be great years for solar energy, and ASEA is right in the thick of things!

Vivian Harte Chair, Arizona Solar Energy Association

SOLAR ENERGY NETWORK 2009 | 23

Why We Need to Support the Creation of a Viable Commercial Solar Energy Sector in Arizona

Lee Feliciano

Executive Vice President CarbonFree Technology Corporation

PBI rates by as little as $0.03 or $0.04 per kWh will have the added impact of closing the CarbonFree Technology is a commercial solar energy project developer, gap, and contributing towards the whose accomplishments include developing the largest non-utility owned solar development of a viable commercial PV por tfolio in Arizona (1.7MW at ASU’s Tempe Campus). In 2008, solar sector in Arizona. If the concern is that utility rates will continue to CarbonFree was involved with the development of 13 solar projects (totaling rise and eventually create a situation where solar system owners are mak~ 6 MW) in CA, NJ and AZ having a value of over $40 million. ing “excess profits” when the PBI payments are factored in, a simple Background formula can be applied whereby the PBI payment In November 2006, the Arizona Corporation Comdecreases proportionally, for every increase in the cost mission (ACC) adopted rules to expand the state’s of electricity from the affected utilities. Renewable Energy Standard (RES) to 15 percent by 2025 with 30 percent of that amount to be derived By incentivizing a solar system owner based on the from distributed energy (DE) technologies. The DE number of kilowatt-hours a system produces over the requirement must be derived equally from residential long run, this also encourand non-residential sources. To date, most of the ages good system design and growth in Arizona’s solar energy industry comes insures that the objectives from residential projects, with some utility-scale of the utility seeking the (non-distributed) projects being contemplated. One Renewable Energy Certificates (RECs) and the solar major difference between residential and commercial system owner are aligned. (non-residential) solar PV incentives in areas falling under the ACC’s jurisdiction is that residential Point #2 systems are given a one-time cash rebate equal to $3 Renewable Energy is the per Watt (covering ~40 percent of the system cost) new Real Estate. while large commercial systems receive a Performance Based Incentive (PBI) which rewards the solar system The problem: Historically, Lee Feliciano owner with $0.25 per kWh produced by the system Arizona has relied on the Executive Vice President over a 10-year period, or $0.18 per kWh produced by CarbonFree Technology real estate and construction Lee the system over a 20-year period. Feliciano BIO industries to drive much of Corporation Point #1 the state’s economic growth. Lee Feliciano is Executive Vice-Presiden Many of us recognize how project developer with offices in the U.S Increasing the volume of Commercial PV installed in this has exacerbated our called SolEquity, Inc and was responsibl Arizona benefits the entire industry. current situation, and that commercial scale solar installations in th many of the unemployed Agreement (SSA). This arrangement all The problem: In terms of compliance with the tarworkers are skilled trades- power without incurring any up front cap gets set by the RES, Arizona falls significantly short. expenses. people who have run out of projects to build. While residential installations are growing at a healthy pace, it is unlikely that we will ever achieve the RES and CarbonFree merged their The fix: It is important toSolEquity understand that solar targets without a viable commercial DE sector. project development utilizes Since many2004, of those resources Lee has worked in the solar and can create jobs without having to subject The fix: A single commercial DE project can be the marketing roles. He is the a regular lecturer labor force to significant retraining. State andand mu-at Green Build equivalent of hundreds of residential installations. Community College, nicipal policies that affect solar (includHowever, at their current levels, PBI rates are not the installations City of Scottsdale Green Building Ad ing permit fees, application reviews, etc.) should Arizona Solar Energy Industries Associa high enough to encourage large-scale adoption of sobe revisited to insure that they facilitate rather than lar energy in the commercial sector. This is due in Lee is anprojects. alumnus of Solar Energy Intern discourage the development of solar part to the fact that rates for large commercial users and has a BAA in Applied Geography fr can be significantly lower (as much as half, or even Kellogg Graduate School Case in point: When CarbonFree Technology andof Managemen less) than for residential customers. its partners developed the largest solar power plant in Arizona which is not utility owned, the project While the gap between commercial electricity rates and utilized the services of structural and electrical engithe cost of electricity from solar is narrowing, raising the COLLIERS INTERNATIONAL | 24

The photo is of CarbonFree Technology’s first AZ project and the first commercial solar project developed under a Solar Services Agreement in the state (SSAs are also know as PPAs).It is on top of the Stadium Parking Structure (aka Parking Structure 5) at ASU, directly south of Sun Devil Stadium. The array has 731 kiloWatts DC peak generating capacity and features an elevated single-axis tracker configuration using polycrystalline modules

neers, electricians and steelworkers as well as ancillary services (e.g., security, equipment rentals, etc.), all sourced locally.

Point #3 Our electricity rate structures encourage waste.

The problem: In Arizona, some large users of

electricity are given little incentive to reduce their consumption. In fact, some large users intentionally use more electricity during certain months of the year in order to bring their consumption levels to a point where they get a “volume discount” (i.e., pay a lower price per kWh once consumption level passes a certain threshold).

The fix: Rate de-coupling – the concept of separating a utility’s revenues from its volume of energy sales addresses the conflict that presently exists whereby utilities are asked to promote energy conservation and renewable energy without any compensation for lost revenue. This is a concept that has been around for some time and should probably be revisited.

A more specific example would involve a progressive stepped rate structure whereby the first XX kilowatt-hours of electricity are priced at a very reasonable rate, but higher consumption levels result in a steep price increase per kWh. This general approach towards

structuring electricity rates is commonplace in states like California, which happens to be the largest solar PV market in the U.S. Keeping the first price tier for both residential and commercial electricity rates low also addresses the argument that raising rates will hurt low-income/fixedincome households and/or small businesses. On the large commercial side, this will also encourage utility customers to view solar as a way to eliminate the most expensive part of their electric bill, not necessarily 100 percent. The above solutions will not cost taxpayers any additional funds (even the increased PBI rates which would tap into existing set asides) and will serve to advance the development of the solar energy market (particularly the commercial sector) in Arizona. This will allow us to tap into our state’s greatest resource: sunshine.

In both cases, the utility gets to keep the Renewable Energy Certificates or Credits (RECs) for a 20-year period. Copyright 2009 Lee Feliciano SOLAR ENERGY NETWORK 2009 | 25

Solon Corporation

Rob Wanless

Business Development Manager Solon Corporation

Headquartered in Berlin, SOLON SE is one of the largest photovoltaic (PV) module manufacturers in the world with over 500 megawatts (MW) of annual manufacturing capacity. As the first stock-marketlisted solar technology company in Germany, SOLON SE has more than 12 years experience in PV. The SOLON Group employs 1,000 people worldwide and has five module production sites in Germany, Austria, Italy, and the United States. SOLON Corporation (SOLON), a wholly-owned subsidiary of publicly traded SOLON SE, is located in Tucson, AZ. SOLON is a PV module manufacturing and integrated solar system company. Our mission is to provide turnkey solar systems ensuring that the engineering, procurement, and construction (EPC) phases of our projects adhere to the highest standards. SOLON’s 100MW PV module factory in Tucson is one of the few U.S.-based module manufacturing facilities. This facility is located in a 105,000 square foot assembly plant and provides 150 manufacturing and engineering jobs. Since 2005, SOLON SE has installed over 250 Megawatts (MW) of integrated solar systems throughout the world. In the U.S., SOLON has commissioned approximately 10MW of solar power plants for five regulated public utilities including Tucson Electric Power (TEP), Xcel Energy, Salt River Project, Navopache Electric, and Springs Valley Cooperative, Inc. COLLIERS INTERNATIONAL | 26

SOLON Corporation has established a photovoltaic solar panel manufacturing facility in Tucson, AZ. This plant develops highly efficient panels using crystalline-based cell technology. The annual capacity of this facility is 100MWs. Currently this facility employs 150 staff in such fields as assembly, engineering, program management, research and development, and new project development. This factory occupies a 105,000 square foot manufacturing plant in southern Tucson.

Rob Wanless Business Development Manager Solon Corporation

Brian Rasmussen

Partnering for a Bright Future Arizona possesses the right mix of bountiful sun, progressive political leadership, world-class research universities, and location to become the hub of the nation’s solar industry. Under the guidance of pragmatic yet visionary political leadership, Arizona has set an achievable Renewable Energy Standard goal of producing 15 percent of the state’s energy from renewable sources by 2025. Solar energy will play a vital role in meeting this renewable goal. According to a recent report by the Western Governor’s Association, Arizona’s peak electricity demand could grow by more than 25 percent by 2015. Solar energy is ideally suited to meet this demand because it generates electricity during hours that correlate perfectly with peak usage. Arizona’s location at the center of the southwest provides an opportunity to support other growing solar markets in the region as well. For example, Arizona can be a solar manufacturing center, which exports solar products to other states. In addition, its proximity to other states with similar renewable goals allows for the export and import of solar energy through planned transmission. The state is blessed with the right mix of available land and sun to develop enough solar energy to help meet this growing local and regional demand. Growth in Arizona’s solar industry will provide its citizens with cleaner energy and air quality, thousands of new jobs, and billions of dollars in direct investment. A recent study by Navigant Consulting found that the state could be home to more than 15,000 solar industry jobs by 2016 and reduce cumulative greenhouse gas emissions by 400,000 tons by 2020.

Director of Development BrightSource Energy

As a provider of utility-scale solar power plants, BrightSource Energy is committed to helping Arizona achieve its renewable, environmental and economic goals. In 2008, we opened an office in Phoenix with the objective of growing Arizona’s solar economy by providing its citizens with green jobs and clean energy. Many members of the BrightSource Energy team have been pioneering solar energy for nearly three decades. The team combines the technical and operating leadership from Luz International, Ltd. -- the first company in the world to build commercially viable solar thermal plants -- with a first class project development team that has designed, developed, and managed more than 20GW of power projects globally.

Brian Rasmussen Director of Development BrightSource Energy

Building on this heritage, we have designed our proprietary Luz Power Tower concentrated solar thermal system to offer the industry’s highest levels of operating efficiencies with the lowest operating costs. This technology represents a significant evolution in solar thermal technology and is ideally suited for meeting Arizona’s clean energy needs. On behalf of the entire BrightSource Energy team, we very much look forward to working with the state’s citizens, regulators, and business and political leaders to make Arizona the United States’ solar capital.

SOLAR ENERGY NETWORK 2009 | 27

Tim Teich

Economic Impact on Arizona Global Solar Energy (GSE) is a manufacturer of thinfilm photovoltaic (PV) products. The core technology is high volume manufacturing of Copper Indium Gallium Di-Selenide (CIGS) on a flexible stainless steel substrate. GSE has manufacturing facilities in Tucson, Arizona and Berlin, Germany, with capacity to produce “strings” of CIGS solar cells that can replace traditional Si cells. This product is being sold to module manufacturers who encapsulate the strings in glass modules for use in solar power fields. GSE also produces foldable portable solar modules for military and outdoor applications. GSE’s basic semiconductor CIGS technology is licensed from the National Renewable Energy Laboratory

Solar Energy Generated YEAR

MONTH

ENERGY

2009

January

110 MWh

2009

February

109.01 MWh

2009

March

124.37 MWh

2009

April

126.5 MWh

(NREL) in Golden, CO. This thin-film technology has advantages over competing photovoltaic materials. Cost to manufacture thin-film cells can be very inexpensive since they require few raw materials and can be made with an efficient, scalable roll-to-roll process. CIGS has been established as the most efficient thin film technology in converting sunlight into electricity. GSE’s choice of a flexible substrate will enable applications where more rigid, heavier, or less efficient products cannot compete. This Arizona-based company currently leads the world in flexible CIGS thin-film production. GSE came to Tucson in 1996 when Tucson Electric Power founded the company based on the licensed NREL technology and an initial investment of $5 million. Over the next 10 years, TEP and parent company UniSource Energy Corp. invested $80 million on research and development to commercialize the technology. During this time, GSE COLLIERS INTERNATIONAL | 28

Vice President Global Solar Energy

developed the proprietary high volume manufacturing processes that now set it apart from recently established entrants to the photovoltaic business. The company was sold for $16 million in 2006 to Solon AG, a German solar module manufacturer, and I-Sol Ventures GmbH, a European investment company. “We took the technology as far as we could. I wish we could have stayed with it,” UniSource CEO James S. Pignatelli says, “but it was getting too expensive. We’re pleased they are going to make it commercially and keep jobs in Tucson.” Within two weeks of the sale, the new owners were reviewing plans to expand the operation. A $100 million investment by the new owners funded the new Tucson manufacturing plant, faster, more efficient production tools and a sister manufacturing plant in Berlin. The first growth phase (2008-2009) will see production capacity of 40 megawatts in Tucson, and another 35 megawatts (MW) coming on line in Germany. Phase 2 will bring an additional 100MW of production to Tucson, bringing the firm’s local total capacity to 140MW. Phase 3 will be to identify a site for a third manufacturing plant of 100MW. To provide perspective, 5 megawatts will power about 1,000 typical Tucson homes. In addition to the 12 year, $150+ million investment that GSE has already made in Tucson, the company currently operates a new 110,000 square-foot manufacturing facility at 8500 S. Rita Road, Tucson, employs 180 people in high technology jobs, and has installed a 750 kilowatt solar field on six acres adjacent to the plant – this is the largest CIGS solar field in the world. The presence of GSE in Tucson has also attracted other solar industry companies to Tucson to efficiently partner with GSE in their supply chains. Solon America established a 100,000+ square foot facility in Tucson, where it produces high efficiency solar modules and provides design

Global Solar Energy is host to one of the largest CIGS Power Fields in the world at its Tucson, AZ facility. This 750 kW DC field contains 6600 CIGS modules and has been in operation since November 2008. The installation has been estimated to generate 1.1 million kWh of electricity for Global Solar Energy’s manufacturing plant. Over the first months of operation, the actual field output has exceeded this rate by almost 25%. The Tucson field demonstrates the viability and availability of CIGS-based utility-scale power generation. The technology required for deployment of the CIGS panels is now commercially available and consistent with industry standards.

and installation services to large-scale commercial, municipal and utility customers throughout the United States. Schletter Inc., a manufacturer and distributor of solar mounting systems based in Germany, has also chosen Tucson for its first U.S.-based operations center – a new 22,000 square foot facility. As GSE implements its aggressive business model, it is confronted with many factors in deciding how to allocate additional investment and resources. Its investment and presence in Tucson can be traced to the vision of its local founders. The decision to build the new plant in Tucson was directly related to the core technical and management personnel already being in place. No financial incentives have been realized from or were offered by local and state authorities to support GSE’s investment in Arizona. As for GSE’s location in Arizona providing an advantage to win business opportunities for solar power fields, limited available incentives, regulatory obstacles, and utility disincentives have directed GSE’s expansion and sales efforts elsewhere.

Tim Teich Vice President Global Solar Energy

GSE believes that the solar industry belongs in Arizona and can provide benefits ranging from jobs and economic stimulus to clean energy generation and energy independence. Just as early pioneers came to Arizona to mine the natural resources of the state, Arizonans have an opportunity to build upon the abundant energy resources of the sun. SOLAR ENERGY NETWORK 2009 | 29

Solar Energy Collaboration SolFocus, the leading developer of Concentrator Photovoltaic (CPV) systems, recently announced the completion of its expanded solar glass reflector manufacturing factory in Mesa, Arizona. The facility makes the city of Mesa one of the first municipal examples in the U.S. of the “new energy economy” as envisioned by the American Recovery and Reinvestment Act (ARRA). With a projected growth to over 150 full-time employees by the end of 2009 – a 200 percent increase over 2008 – the expansion demonstrates the combined value of local economic development and global investment in sustainable energy. As an advanced energy technology producer, SolFocus plans to utilize the 30 percent manufacturing investment tax credit, as set forth in ARRA. From a demand perspective, ARRA provides the municipality of Mesa access to funds for investment in innovative solar energy generation technology, which will create even more jobs and economic benefit to the city. About SolFocus SolFocus is a leading supplier of solar energy solutions for power plant developers, municipalities, industrial sites, and utilities. The company’s mission is to enable solar energy generation at a Levelized Cost of Energy (LCOE) competitive with traditional fossil fuel sources. To achieve this goal, SolFocus has developed leading concentrator photovoltaic (CPV) technology which combines high-efficiency solar cells (approaching 40 percent) and advanced optics to provide solar energy solutions which are scalable, dependable, and capable of delivering on the promise of clean, lowcost, renewable energy.

Nancy Hartsoch

Vice President of Marketing SolFocus

SolFocus has expanded rapidly since its founding in 2005, and today the company’s technical expertise embodies a diverse base of disciplines including materials, packaging, device, optical sciences, engineering, and manufacturing. With a focus on achieving the lowest LCOE through design for manufacturability, the company has developed extensive experience in optical, electromechanical, and mechanical design, coupled with leading global supply chain operations and manufacturing technology. SolFocus expands its internal capabilities through strategic partnerships and collaboration with research groups, institutes, universities, and commercial partners including University of California at Merced, the U.S. National Renewable Energy Laboratory, Polytechnic University of Nancy Hartsoch Madrid, Palo Alto Research Vice President of Marketing Center, United Technology SolFocus Research Center and others. The company’s worldrenowned Technical Advisory Panel (TAP) is chaired by Nobel Laureate in Physics Dr. Arno Penzias, and includes the original creator of our enabling technologies Dr. Roland Winston (University of California, Merced), inventor of non-imaging optics and a pioneer in solar concentration. SolFocus, Inc. is headquartered in Mountain View, California with European headquarters in Madrid, Spain. In addition, the company has built its Glass Works operations in Mesa, Arizona, where its pilot-line manufacturing is also located. The company is privately held and has raised over $100 million in venture funding since its founding in 2005. About CPV The SolFocus CPV design employs a system of reflective optics to concentrate sunlight 650 times onto small, highly efficient solar cells. The SolFocus 1100S uses approximately 1/1,000th of the active, expensive solar cell material compared to traditional photovoltaic panels. In addition, the cells used in SolFocus CPV systems have over twice the efficiency of traditional silicon cells. In a solar-rich country like Greece, such efficiency can accelerate the trajectory for solar energy to reach cost parity with fossil fuels. SolFocus integrates its CPV panels with its advanced tracking system that continuously aligns the solar array with direct sunlight throughout the day as the

COLLIERS INTERNATIONAL | 30

sun moves across the sky. The tracking capability of the SolFocus 1100S results in energy generation ideally matched to peak demand periods. CPV Systems SolFocus CPV systems have been designed specifically to overcome the safety, reliability, cost and manufacturability barriers of earlier concentrator solar approaches. The company’s technology combines its patent-pending highconcentration, compound reflective optical design with the record-setting efficiency of multi-junction solar cells. SolFocus CPV technology requires a solar tracker to precisely point the CPV panels towards the sun throughout the day. Unlike the more common solar trackers for traditional PV solar panels, CPV trackers need to meet a

REC Solar, Shining into Arizona

challenging set of requirements. Accuracy of tracking is paramount. The effective telescope that is used to focus the sun’s energy onto a high efficiency solar cell must be pointed at the sun within a few tenths of degree accuracy. SolFocus’ control system is the most accurate in the market and includes proprietary technology which, in combination with the complexity of the software, creates a significant barrier-to-entry. The control system uses the CPV system itself to account for mechanical imprecision that occurs during the installation of the CPV system. In addition to industry leading pointing accuracy, the entire aperture plane has been designed to minimize flexure and weight. The control system is also designed to collect and communicate telemetry data to a central server for analysis and predictive maintenance.

Kate Haughey

Field Marketing Specialist REC Solar

It’s no secret that Arizona is an ideal state for solar electricity with an abundance of sun and a culture of environmental awareness. That culture is prevalent throughout the state with Arizona having one of the most aggressive renewable energy standards goals in the country. Add to that consumer-friendly utility-based incentives and generous tax benefits, Arizona is fast becoming a leading player on the national solar stage. REC Solar is proud to have operations in the state, offering residents and businesses the opportunity to work with one of the nation’s leading solar integrators. REC Solar was founded in 1997 by two Cal Poly graduates, Judy Ledford and Fred Sisson, and has grown to become one of the most successful solar integration firms in the nation. REC Solar specializes in grid-tied solar electric design and installation, offering turn-key solar solutions, state of the art equipment, and financing opportunities to commercial and residential customers. REC Solar has significant experience designing and installing systems of all sizes. The company has even earned a national reputation for excellence in large-scale commercial installations for companies such as Costco, Safeway, DuPont, and Nestle Purina. REC Solar prides itself on the professionalism of its employees and the high quality of its products and services. While headquartered in San Luis Obispo, California, REC Solar takes a local approach in each market, hiring local employees whenever possible. With over 350 full-time employees and operations in Arizona, California, Colorado, Hawaii, and Oregon, REC Solar is one of the fastest growing and largest solar power system providers in the nation.

The vision of REC Solar is to contribute to a more secure and sustainable world by making solar electricity an affordable part of the mainstream energy supply. The company strives to encourage local and national legislation to make solar a practical investment in every state. REC Solar also encourages the education of consumers regarding the benefits of solar electricity by making it widely known that solar electricity is not just a positive solution for the environment, but that it is also a financially stable and money-saving investment. For more information, visit www.recsolar.com. Kate Haughey Field Marketing Specialist REC Solar

SOLAR ENERGY NETWORK 2009 | 31

About SolarCity SolarCity is a leading, full-service integrator of residential and commercial photovoltaic (PV) solar systems in the U.S. The company offers turnkey services to our solar energy system host customers, including design, financing, rebate application, permitting, installation, grid connection, system production and electricity usage monitoring, maintenance and customer service. SolarCity has employed unique operational, technical and financial innovations to reduce the cost of solar power. As a result of these innovations, SolarCity became the largest residential solar power provider in California in 2007, its first full year of operation, and one of the nation’s largest such providers in 2008, based on data kept by the California Public Utilities Commission. SolarCity now serves the residential, commercial and government segments in hundreds of communities in three states. Arizona Operations SolarCity opened its Arizona regional office and warehouse in Phoenix near the Sky Harbor Airport in June 2008 to serve the residential and commercial PV markets in the greater Phoenix Metropolitan Area. SolarCity is also the only residential installer of modules from Tempe, Arizona-based First Solar, the world’s leading photovoltaic module manufacturer. First Solar modules are some of the most cost-effective in the John Lefebvre industry on a cost-per-kWh Vice President of Sales & produced basis, perform better Business Development in ambient light and high temperatures than other PV technologies, and their sleek, black aesthetic is prized by customers. Commercial solar has never been more affordable in Arizona, and SolarCity started ramping up its commercial operations during the fourth quarter of 2008. The extension of the Federal Investment Tax Credit last year, continued strong rebates from the major utilities, accelerated depreciation, and energy cost savings make solar energy a cost-effective, environmentally-sound solution to meeting commercial energy needs. Experience, Expertise and Innovation SolarCity has assembled one of the most experienced solar design and installation teams in the U.S., COLLIERS INTERNATIONAL | 32

John Lefebvre

Vice President of Sales & Business Development SolarCity

including NABCEP-certified electricians, experienced roofers and integrators for large-scale projects. SolarCity’s commercial customers include high schools and universities, state, local and federal government agencies such as the U.S. General Services Administration (GSA) and Department of Homeland Security, national landmarks such as San Francisco’s Grace Cathedral, and well-known corporate clients, including Intel, British Motors and eBay. SolarCity has developed proprietary software applications for sales, customer management and performance monitoring and analysis that continue to reduce the costs and improve the customer experience of installing a PV system. SolarCity’s SolarWorks™ customer management software unifies inventory and project management and is designed to scale to manage millions of simultaneous records. SolarCity’s SolarBid™ sales management platform incorporates specific rate information by utility, weather and sun exposure by location, roof orientation and a variety of other factors to generate a detailed and accurate analysis of each customer’s return on their solar investment. The software also includes a Web interface that allows customers to generate their own solar system cost estimates. SolarCity’s SolarGuard gives SolarCity customers a real-time view of their net energy consumption and carbon footprint. Through an easyto-read graphical display, SolarGuard collects, monitors and displays critical performance data from SolarCity solar energy systems, including production levels, local weather, electricity usage and environmental impacts such as carbon offset and pollution reduction. The platform also gives SolarCity the ability to monitor the operation of each customer’s system, and the company uses this data to verify the production guarantees it extends to customers. John Lefebvre—Vice President of Sales & Business Development John is responsible for SolarCity’s sales, market development, and partner relationships. Prior to SolarCity, John held management positions at Lam Research Corporation, Mattson Technology and General Electric, where he grew product divisions into multi-million dollar organizations. John is committed to the advancement of renewable energy technologies and has spent countless hours advising renewable technology startups, consulting for venture capital firms and volunteering with GRID alternatives, a non-profit solar provider to low income families. John holds a BS in Electrical Engineering from Clarkson University, a MS in Electrical Engineering from Syracuse University and a MBA from the University of British Columbia and ESADE.

Wilson Electric

ilson Electric is the largest Arizona based electrical contractor with offices in Tempe, Tucson, Sierra Vista and Prescott Valley. The Arizona commercial solar market is poised for rapid growth. Political leaders at the Arizona Corporation Commission, federal government and state government boosted incentive funding for these systems, including the eight year extension of the 30 percent federal solar tax credit as a part of the “Bailout Bill” in the fall of 2008. Property owners are finding that solar electric systems powered by photovoltaic technology are financially attractive, with returns twice the cost of borrowed money. The systems may be installed on rooftops, carports or on excess land. Rooftop systems include free-standing and adhered systems, reducing the risk of roof leaks. Solar carports are particularly attractive in deserts climates, especially if parking revenues are added to the savings. Ground based systems that track the sun’s movements produce the most power and boost the returns. Each of these applications provides tax and utility bill savings, acts as a hedge against future electric price hikes, and is a strong symbol of the owner’s commitment to reduce pollution and conserve fuels. Peering ahead to 2020, declining prices and higher

Mark Holohan

Solar Division Manager Wilson Electric

efficiencies from advancements in the industry will make solar a standard feature in many buildings. New projects will routinely be designed to take full advantage of potential areas exposed to the sun, with the tallest objects moved to the north side of property and shorter varieties of trees commonly selected for strategic placement. Solar carports will be common sights in parking lots and will likely offer charging points for electric vehicles. Many tenants will expect office space with a strong measure of sustainability, such as the U.S. Green Building Council’s LEED® Rating System. This need will be increasingly related to the presence of solar electric systems. Solar electric systems will be an integral component of Arizona’s growth, helping ensure we have adequate power, independent of foreign nations and harmonious with our environment. Mark Holohan Solar Division Manager Wilson Electric

Wilson Electric is the largest Arizona based electrical contractor with offices in Tempe, Tucson, Sierra Vista and Prescott Valley. SOLAR ENERGY NETWORK 2009 | 33

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On a typical day at Sky Harbor International Airport: 1,477 aircraft arrive and depart 115,570 passengers arrive and depart

APS Solana Solar Generating Station: Gila Bend, AZ 280 MW solar-thermal plant Could Power up to 70,000 homes

COLLIERS INTERNATIONAL | 34

760 tons of air cargo is handled $90 million daily economic impact Metro area is served by Sky Harbor International Airport Other Metro Phoenix Airports: Phoenix-Mesa Gateway, Chandler Regional, Scottsdale Municipal, Deer Valley, Glendale, Falcon Field, Goodyear, Buckeye

TÜV Rheinland R PTL and Arizona State Unive Arizona is now home to the premier perform certifiication organization globally for photov The TÜV T PTL is a collaborative effort from T Northh America Holding, and Arizona State U

Desert Sun Solar 111 W. Renee Dr Phoenix, AZ 85027

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Alternate Energy Shop 6403 E. E Dove Valley Rd. Cave Creek, C AZ 85331

Rio Verde Southwest Windpower 1801 W Route 66 Ste 100 Flagstaff, AZ 86001

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Hitney Solar Products 2655 N. US Highway 89 Chino Valley, AZ 86323

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GreenSun Energy Solutions, LLC 1000 E. Water Street #7 Tucson, AZ 85719

Global Solar Energy 8500 S. Rita Rd. Tucson, AZ 85747

Queen Creek

The Solar Store, LLC 2833 N Country Club Rd Tucson, AZ 85716

Phocos USA 742 E 46th Street Tucson, AZ 85713

Solon 6950 S. Country Club Rd Tucson, AZ 85756

SunPumps, Inc. 325 E Main Street Safford, AZ 85546

SOLAR ENERGY NETWORK 2009 | 35

our contributing experts Melanie Kosach

Andrew Weflen

Matt DePinto

Creative Director Greater Phoenix

GIS Specialist United States

Research Manager Greater Phoenix

[email protected]

[email protected]

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to our contributors Governor Jan Brewer of the State of Arizona | Kristin K. Mayes of Arizona Corporation Commission Barbara D. Lockwood, P.E., of Arizona Public Service | Lori Singleton of Salt River Project Denise Smith of Tucson Electric Power | Barry G. Broome of GPEC | Bud Annan of Science Foundation of Arizona Sal Rivera of Arizona Economic Resource Organization | President Robert N. Shelton of The University of Arizona President Michael M. Crow of Arizona State University | Richard Bozicevich of TÜV Rheinland PTL George Maracas, Ph.D., of Arizona State University | Stephen Goodnick of Arizona State University President John D. Haeger of Northern Arizona University | Rob Wanless of Solon Corporation Brian Rasmussen of BrightSource Energy | Tim Teich of Global Solar Energy | Nancy Hartsoch of SolFocus Kate Haughey of REC Solar | John Lefebvre of SolarCity | Mark Holohan of Wilson Electric Emily Bennion of A&R Edleman | Joey Marquart of A&R Edleman | Mary Anne Madge of Gatorade Rais Ahmed of Gatorade | Kelly Dalton of the Mayor’s Office | Scott Phelps of the Mayor’s Office Mayor Phil Gordon of the City of Phoenix | Andrea Katsenas of Cox | Greg Lindner of REC Solar, Inc. Lee Feliciano of CarbonFree Technology | Vivian Harte of ASEA | Patsy Regalado of Finnemore & Craig, P.C. Chris Camacho of GPEC | Scarlett Spring of GPEC | Rodrick Miller of GPEC | Janet LaBar of GPEC Judy Bernas of The University of Arizona | Todd Hardy of Arizona State University | Bob Davis of Grubb & Ellis Birgitte Santaella of Arizona State University | Richard Bowen of Northern Arizona University Michael Fitz-Gerald of Lender Investor Advisory Network | Jim Beard of SolarCity | Keely Wachs of BrightSource Energy Mark McIntyre of Global Solar Energy | Giancarlo G. Estrada of Arizona Corporation Commission Sheila Stoeller of Arizona Corporation Commission | Art McDonald of Tucson Electric Power | Chico Hunter of Salt River Project Kim Sabow of the Governer’s Office | Sheila Maddox of University of Arizona | Kevin Tyne of the Governor’s Office

For many companies, green real estate strategies are uncharted waters. Let us help you navigate. Colliers and its partner companies are committed to being the knowledge leader of environmental sustainability in real estate and related practices. Our experience has shown that high performance, environmentally responsible buildings can be cost effective, increase employee comfort, enhance employee retention and recruitment, and attract new business. Our leadership in sustainability provides our clients with the resources they need to be competitive, productive and profitable while promoting corporate social responsibility and reducing the negative impact of buildings on the planet. Go green. It’s good for business.

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