By Glenn Hasek
03/05/2009

NATIONAL REPORT—Historically, owners of lodging establishments throughout the United States and Canada have ignored the sun as a source of potential energy to heat water.Whether because of concerns about cost ormisperceptions about how solar thermal technology works, solar hot water heating systems are rare. That is all beginning to change, however, thanks to improving technologies, tax incentives and rebates, creative financing, better education about solar thermal heating, an increase in the number of developers interested in building to Leadership in Energy and Environmental Design (LEED) standards, and an increase in the number of qualified vendors that sell and install solar hot water heating systems.

How does solar thermal energy work? If you have returned to your car and opened the door after the car has been sitting in the sun for an hour, you have experienced solar thermal energy. According to the website www.solar-is-future.com, in a typical solar hot water heating system, solar collectors absorb the sun’s rays, convert themto heat and then transfer that heat to a heat-transfer fluid. The heat-transfer fluid is typically a glycol and watermixture in regions where seasonal freezing is a
concern.

“The heat-transfer fluid is then pumped into a heat exchanger located inside the water storage tank where it heats the water,” the website says. “After releasing its heat via the heat exchanger, the heat-transfer fluid flows back to the collectors to be reheated. The controller keeps the heat-transfer fluid circulating whenever there is heat available in the solar collectors. In the winter, a boiler serves as an alternate heat source. Solar thermal systems can be integrated into existing hot water systems with relative ease.”

Appropriate for Any Location
One might conclude that solar hot water heating is only an option for properties in southern locations but that is not the case. The sun generates enough energy even in northern locations to make solar thermal systems feasible. For example, the Confederation Place Hotel in Kingston, Ont., has a 20-panel rooftop solar hot water heating systemand the BestWestern-Kelowna in Kelowna, B.C., has a 102-panel system.

“It pretty much works anywhere, fromboth a technological and financial standpoint,” says Kirk Norlin, vice presidentmarketing for Novan Solar Inc., Golden, Colo. “New England, for example, may get less direct sunlight but those living there pay more for their energy, so itmakes sense.” Norlin says 90 percent of the time roofs can bear the weight of a solar thermal structure. Adequate roof space is important and of course access to sunlight is key. A building rooftop cannot be shaded for a good portion of the day.

Other properties that have installed solar thermal systems include the Proximity Hotel in Greensboro,N.C., the new Andaluz hotel in downtown Albuquerque, N.M. (not yet open), the Park Place Hotel in Ocean City,Md., the Hyatt Regency Scottsdale Resort and Spa at Gainey Ranch in Scottsdale, Ariz., the Lodge at Sun Ranch in Cameron,Montana, and the Kanuga Lake Inn in Hendersonville, N.C. A
large-scale solar water heating systemis being installed at the Hilton Asheville in Biltmore Park Town Square in Ashevelle, N.C. That property, which is seeking LEED certification, is expected to open this summer.

Proximity’s System is a Success
The solar thermal systemthat has perhaps gotten the most buzz is the 100-panel installation at the Proximity Hotel. The panels cover 4,000 square feet on the roof of that LEED Platinumcertified hotel. The water heated by the Proximity’s system—approximately 5,000 gallons a day—is saving the property about $16,000 in water heating-related costs per year, according to Dennis Quaintance, CEO and CDO (Chief Design Officer) of Quaintance-Weaver Restaurants andHotels, the company that owns the property. The systemcost Quaintance-Weaver Restaurants andHotels about $400,000,more than a typical systemfor a property the Proximity’s size, primarily because the owners chose to build a concrete structure and extra floor to support it. Even with the extra costs, however, the company should recover its investment in four to five years. Annual energy savings, having the ability to sell renewable energy credits (RECs) for $20,000 a year for the first five years, a 30 percent federal tax credit, 35 percent state tax credit, and being able to take advantage of a provision for accelerated depreciation of $84,000 are all shortening the time needed to recover the initial investment. The solar hot water heating system has been meeting 60 percent of the hotel’s domestic hot water needs—the equivalent of the amount of water needed for 100 houses for one year. The solar systemis backed up by natural gas for those days when supplemental energy is needed.

“Each panel in the Proximity’s installation is like amini greenhouse,” saysMichael Shore, president of FLS Energy, the company that installed the Proximity’s system.

“I keep askingmyself, ‘Why didn’t we do this before?’” Quaintance adds. “Itmakes so much sense to do solar thermal.”

The Largest Hotel Installation
A systemthatmay get even more publicity than the Proximity’s is the one installed on the Hyatt Regency Scottsdale Resort and Spa. The 66-panel, $575,000 installation is helping to heat hot water for use in the resort’s 490 guestrooms. It was installed by Novan Solar and includes a 0,000-gallon water tank. Novan Solar’s Kirk Norlin says the hotel’s owners should get a return on their $550,000 investment in less than three ears. Sixty percent of the system’s cost is being paid for by Arizona Public Service through its purchase of RECs fromthe Global Hyatt Corp., the wner of the property. Plans are underway for a possible additional 212 panels, which would bring the system’s size to 378 panels, making it the argest solar thermal installation on any hotel in the United States. The phase two installation will carry a cost similar to phase one and be eligible or the same type of financial assistance. The heated water from phase two will be used for the resort’s restaurants, laundry and pool. Because so uch water is used for these, payback time on phase two will be just sixmonths.

Jennifer Schaff, director of engineering at the Hyatt Regency Scottsdale Resort and Spa, says phase one of the roject is working very well. Hot water heated during the day is stored in the storage tank for use at night. The 66-panel systemcan heat 100,000 gallons of water daily.

“The hotel’s owner decided we would use this hotel as beta site,” Schaff says, adding thatHyatt already has plans for an additional solar installation in Aruba at the Hyatt Regency Aruba Resort & Casino. Bill Allinson, managing director of the Confederation Place Hotel, says the $52,000 rooftop solar water heating systeminstalled on that 95-room property in November 2005 is now paid for and netting the owners $11,000 a year—30 percent to 40 percent of the property’s annual water heating-related energy costs. The solar system is providing hot water for the hotel’s kitchen and laundry facilities.
“The more you we use it, the more efficient it gets,” Allinson says. Options that require a hotel owner to put no money down and to not own a systemat all are now being offered by different vendors. In this arrangement, the systeminstaller owns the systemand then bills the hotel for the cost of heating the water—at an amount lower than what the utility company would charge for the same heating. Be sure to ask about financing options, including rebates and tax credits, before finalizing any purchasing decision. (See www.dsireusa.org for local, state and national incentive information.) Thanks to the United States’ recently passed stimulus package, any for-profit company can qualify for a 30 percent rebate on a solar hot water system.

Feasible for Most Hotels
“Most hotels have solar potential,” FLS Energy’s Shore says. “The technology has gotten to the point where it is cookie cutter. It is a little bit easier
to do for new construction but quite feasible formost hotels.” When asked what advice they would give to those considering solar hot water heating systems, Novan Solar’s Norlin and FLS Energy’s Shore had this to say: "Have a company come out to do a feasibility study,”Norlin says. “Get a good handle on what your rates are, and your laundry and domestic hot water needs.”

“Work with a vendor experienced in doing large commercial systems,” Shore adds.

With typical installations reducing the amount of energy needed to heat hot water by two-thirds, solar thermal systems are becoming a much more sensible solution for new and existing hotels. In fact, Norlin says, they are five times more efficient at producing energy when compared to solar photovoltaic systems.

Also be sure to check out these vendors: EnerWorks, SMA America, Inc., Heat Transfer Products,Menova Energy Inc., Sol Verde Renewable Energy Solutions, Nexus Solar Corp., Vaillant Solar Systems, and Eco Hybrid Solar.

Glenn Hasek can be reached at editor@greenlodgingnews.com.

By Matt Leclercq and Rebecca Logan
Staff writers

Does "Executive Order 13514" mean anything to you? It's not a catchy name for something that could have significant, lucrative amifications for North Carolina's businesses. f your company does business with the military or federal government - or you ant to - you should familiarize yourself with the order.

It's the mandate signed by President Obama in October ("Federal Leadership in Environmental, Energy, and Economic Performance") that, in most basic terms, sets out a strategy for government to go "greener." Among the goals are a 30 percent reduction in vehicle fleet petroleum use and 26 percent improvement in water efficiency by 2020; 50 percent recycling and waste diversion by 2015; and 95 percent of applicable contracts to meet sustainability requirements.

(Homework assignment: edocket.access.gpo.gov/2009/pdf/ E9-24518.pdf)
On Friday, the N.C. Military Business Center held a symposium in Raleigh that brought together industry with key military government players. The idea was to discuss what the government is already doing at installations and agencies, and what it still needs to do, and for industry to offer ideas and ask questions. Scott Dorney, executive director of the center, said the government "knows what their requirements are, and already have undertaken some initiatives, but they're also looking for the next great idea."

Usually, government knows what it needs and shops around for it. As we venture into new territory with sustainability, it sounds as if a smart business person can help come up with solutions. Beyond government contracts, the "next great idea" probably will be marketable in the private sector, Dorney said. "The requirement on the federal agencies is really a jumpstart for these technologies."

About 225 people registered for the symposium, which included discussions of infrastructure, "green" products, sustainable construction and water management. One company that participated was Asheville-based FLS Energy, which in May announced a partnership to develop solar-powered water heating for 900 homes at Camp Lejeune.

The company is interested in doing business at Fort Bragg, too, said Tyler Johnson, who works with military and federal government business for FLS.
"FLS Energy's main mission is to help make solar mainstream, and one way to do that is to invest in and support organizations like the Military Business Center as they foster dialogue between the military and industry on how to move forward." No doubt a topic we'll be hearing much more about.
Boss alert Heads up, Smithfield workers in Tar Heel. The big boss may pop by soon to pump you up.

"I'm going to be leaving the offices on a frequent basis visiting our customers ... as well as spending a great deal of time inside our plants with our people, recharging this organization to go forward," CEO C. Larry Pope told analysts last week. The Virginia-based company returned to profit in the first quarter, though it's still looking for efficiencies to face economic challenges. "I am excited for the first time in a good while about what I see (for) this business," Pope said. "The rough road appears to be behind us, the nice smooth road looks to be in front of us. And the
sun is shining."

Got a tip for Biz Buzz? Send e-mail to business@fayobserver.com or call 486-3551.

By SINDYA N. BHANOO

The military will have solar panels for hot water installed in 900 homes at Camp Lejeune in North Carolina, making the base one of the largest residential producers of solar thermal power. Each house on the base will have one panel on its roof that will cover 75 percent of its hot water needs.

The project will be funded partly through subsidies provided under the American Recovery and Reinvestment Act of 2009, which made more than $16
billion available for energy efficiency and renewable energy projects through the Energy Department.

“A lot of this is possible through federal and state tax investment credits,” said Matt Lynn, a project leader at Actus Lend Lease, a real estate developer that is coordinating the project on behalf of the military. “We can make this a financially viable deal.”

Actus negotiated a deal with FLS Energy, a solar energy company that is selling the panels to the base at a reduced cost. The agreement calls for the military to repay FLS for the panels over 12 years. Once the panels are paid off, the energy will essentially be free.

The average lifetime of such panels is estimated at 20 to 25 years, Mr. Lynn said.

He declined to give the price, but said that it was about 20 percent lower than the cost of purchasing the electricity off the grid.

The move is one of several initiatives by the military to embrace renewable energy. Last year, The Times took note of a project to install solar walls to improve heating efficiency at Fort Drum in upstate New York.

The installations are under way and will be completed by December.