Demandbase Connect

December 1, 2008

Top Plants: Far West Rice Mill with solar electric system, Nelson, California

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Pages: 1234

Owner: Far West Solar LLC Operator: Pacific Power Management

Many companies are finding that with solar energy, the sky’s the limit. As costs fall and mandates for renewable energy rise, solar energy is becoming an increasingly competitive source of power generation. Far West Rice Mill is a forward-thinking business that is taking advantage of this economic opportunity by powering its operations with a 1-MW photovoltaic system.

Solar power is a shining example of an abundant renewable and pollution-free energy source. More important to businesses and individual consumers wanting to take advantage of it is the reality that today’s rapidly evolving technology provides flexible ways to employ both the heat and light of the sun. Another plus for this energy source is that the U.S. has some of the richest solar resources in the world, according to the Solar Energy Industries Association (SEIA).

The Far West Rice Mill, which produces organic rice, is one of a growing number of U.S. businesses turning to solar power because they seek a nonpolluting energy source that also provides predictable costs (Figure 1).

1. Here comes the sun. This aerial view shows the 1-MW photovoltaic system installed at Far West Rice Mill on four acres of land. The system will meet 70% to 80% of the facility's annual electrical needs. Courtesy: Pacific Power Management

Overview of U.S. solar energy market

Because photovoltaic (PV) systems use solar cells to convert sunlight directly into electricity, they can be installed in close quarters to energy use, which gives this technology the ability to alter the model of how and where energy is produced.

PV modules consist of semiconducting material, such as silicon, that absorbs sunlight in a way that frees electrons from atoms. Electricity is produced as the electrons flow through the semiconducting material. Metal contacts on the top and bottom of the PV cell allow the current to be drawn off for external use. Groups of PV modules are typically combined in an array to generate electricity for a single structure. Large numbers can be combined to form a power plant.

Mark Frederick, managing partner for Pacific Power Management (PPM), said his company installed the PV panels at the Far West Rice Mill. "The U.S. uses an estimated 3,816,000,000 MWh of electricity, and the percentage of solar electricity is very small," he said. "However, the amount of electricity that is generated through solar is increasing significantly as production has been doubling every two years."

In its recent report, U.S. Solar Market Trends in 2007, the Interstate Renewable Energy Council describes how solar markets are booming in the U.S. due to rising energy prices, strong consumer demand, and financial incentives from the federal government and many states and utilities. More than 80,000 installations were completed in 2007, but the majority of market share for each solar technology is concentrated in a few states. The capacity of PV installations completed in 2007 grew by 48% compared with 2006, and the average size of PV systems is growing. The two largest U.S. installations, one in Nevada and one in Colorado, were completed in 2007.

The PV market is expanding to more states, though California remains the dominant market.

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