Asheville's FLS Energy pioneers new business model for solar projects
By Jonathan Walczak • May 20, 2010
By Jonathan Walczak • May 20, 2010
ASHEVILLE — A company based here is helping uild the largest solar thermal-powered housing development in the continental United States.
LS Energy is spending $6 million to install solar technology that will heat water in 900 homes at Camp Lejeune, a large Marine Corps base in Eastern orth Carolina.
“The system can generate hot water when the sun is hining, but you can use it whenever you need it,” aid Brownie Newman, a director with the company and vice mayor.
The company has pioneered a new business model hat may make it easier to finance future renewable nergy projects across the country, Newman said. We refer to it as a solar-power purchase greement,” he said.
FLS is fronting most of the project’s initial nvestment, with the rest of the tab picked up by
several
partners. Typically companies hope to make a profit at the front end of
a renewable energy project by charging to install equipment. But FLS
has a more sustainable, and potentially more profitable, long-term plan,
ewman said.
“We will actually own and operate the system over he lifetime of the system,” Newman said. A 40-square-foot solar panel will be placed on the roof of each home, at a cost of about $7,000. Using complex but readily available technology, the sun’s energy will be used to heat water, which will then be moved to storage tanks.
“It’s like a hose in summertime,” said Joanna Malcolm, an FLS spokeswoman. “The first water that
comes out is always warm. It’s using that same idea to heat the water.”
Camp
Lejeune has agreed to purchase energy from the system for at least 12
years, with an option to renew the contract after that, Newman said. So
the company plans to turn a profit by selling energy to the base rather
than charging a premium to install
the technology.
They’re getting the same energy at a price below what they’d pay for fossil fuel-generated electricity from the local company,” Newman said. “This model basically makes renewable energy cost competitive with fossil-fuel sources.”
Company officials will join Gov. Bev Perdue today at
Camp Lejeune for a press conference and tour of the project.
Construction began last year and is expected to wrap up in December.
“It’s an exciting business model for FLS, and we worked hard to pioneer that business model,” Newman said.
