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Thursday, January 5, 2012

Learning From Failure: What Happened to Solar Highways and What’s Next

In early December 2011, I began work on a new project called “Simply Solar.”  This is the project will be part of SMUD’s Community Renewable Energy Deployment (CRED) program, funded in part by the US Department of Energy and the California Energy Commission. 

To the disappointment of many, the previous project, Solar Highways, was cancelled because it became economically infeasible. Let’s face it:   Solar Highways captured peoples’ imaginations and grabbed every headline written about the CRED program.  It could have been a great way to avoid the productive farmland for solar (which requires a lot of land), to utilize highway corridors with no other commercial use, and to therefore potentially lower the cost of solar power. The project was successfully certified via California’s rigorous environmental review process (CEQA).  Governor Brown even listed Solar Highways as one of his priorities during his campaign, and continued to support it during the planning process.  But in the end, there was a lack of private funding to drive the project to completion. 
So what did we learn?
We learned that the perceived risks associated with building in the highway outnumber the benefits.  There were fencing restrictions that would leave the systems vulnerable to vandalism and  Caltrans reserved the right to remove the arrays without reimbursement to the developer. These combined made it a risky investment for any developer.   The Department of Energy (DOE) grant money also had restrictions that made complicated the situation.  In a nutshell, the development and financial logistics of leveraging highways made the project infeasilbe at this time. We learned to take the benefits of the program and apply then to more neutral territory.

What's next?
“Simply Solar” project is an attempt to meet many of the objectives Solar Highways, without the pesky highway part!  Proposals are due December 30th and, judging from the number of phone calls and emails I’m getting about it, interest is high.  I’ll write about this new program and the response we receive to it in a future post.

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