Sunterra Solar Inc. of Novato, CA today announced that they have been awarded the DVBE (Disabled Veteran Business Enterprise) Certification by the California Department of General Services. The certification is awarded to California business enterprises that are at least 51% owned by service connected disabled veterans. Sunterra owner, Chris Bunas is a veteran of the United States Marine Corp during Operation Desert Storm in the early 90′s. “I am thrilled to have served our great country in time of need, and I sincerely appreciate the honor of the DVBE award.” reports Mr Bunas. Bunas adds “we look forward to building more solar power projects for both the federal government and the State of California.”

The DVBE, along with the SBA Small Business and the Federal Government SDVOSB (Service Disabled Veteran Owned Small Business) certifications will provide another opportunity for growth for the 2 year old company that is owned and run by a solar industry veteran.

About Sunterra Solar

Sunterra Solar Inc. is one of North America’s premier commercial solar power contractors. Sunterra designs and constructs turn-key grid-connected solar photovoltaic power systems and structures for commercial, agricultural and government customers. We have a decade of experience in the solar industry building large scale systems. Sunterra designs and builds the system that matches your organization’s needs both technically and financially, and guaranteed to exceed your expectations in long term performance.

In addition to turn-key solar power systems we also design and install automated monitoring and control systems and building energy efficiency measures. Our creative design team has experience engineering difficult builds and has proven ability to design outside of the box.

Sunterra Solar Inc. was founded by solar industry veteran Chris Bunas, who also holds a Solar PV Installers Certification from the North American Board of Certified Energy Practitioners or NABCEP.

After approximately a decade of experience developing grid-tied solar power projects at another organization, Mr. Bunas felt it was the appropriate time to launch his own solar company to focus on commercial solar power projects with a more direct and efficient business model.

Mr. Bunas was the key factor in the creation, development and operation of the Solar Electric Division as Vice-President at another very well known northern California solar integrator, where he excelled for 7 years building that company’s brand and services. Aside from virtually building the solar electric division from scratch at this company, Mr. Bunas personally designed, developed and managed or oversaw construction of many well known solar plants such as Paramount Farms 1.1MW solar plant, Cline Cellars Winery 412KW solar power plant, Merryvale Vineyards – Starmont 277KW solar power plant, and many others. During his employment, Mr. Bunas designed, developed and managed many great solar installations throughout California.

Over his entire industry tenure, Mr. Bunas has been very involved with local building departments, utility companies and industry associations and assisted in developing regulations for rebates and interconnection of solar power systems. In one case, along with assistance from an environmental consultant, Mr. Bunas helped change a 40 year old law and regulation for some central Ca counties so that large scale solar projects could get built without have to wait for years of red tape.

Prior to landing in the solar power industry in 2000 Mr Bunas, a California native, worked in technology at the VP and Director Level for various fortune 500 companies where he successfully delivered many large scale technical IT solutions.

Mr. Bunas is a proud military veteran of the US Marines during Operation Desert Storm. Mr. Bunas brings all of the leadership experience and core values, like loyalty, honesty and integrity, along with attention to detail and “Outside the Box” can-do attitude taken from the military into Sunterra’s business practices used today.

Sunterra Solar Completes Innovative Solar Carport
May 2010, Novato, CA

Sunterra Solar Inc. of Novato, CA has completed the design and construction of their latest solar innovation – a 30 KW modular T-cantilevered Solar CarShade Structure. The project includes a free standing T-Cantilever Parking CarShade with an integrated 30KW solar power system designed to power the office complex’s common area and outdoor lighting of the Palm & Herndon office complex in Fresno, Ca. The project was completed in Feb 2011.

One of the greatest benefits of the system design is the improved aesthetics over a typical parking lot solar structure. The design of the structure “roof” remains level, but still incorporates a 15 degree tilt in the solar panels, which greatly increases the energy output of the system. This, of course, significantly increases the project Return On Investment (ROI). Because the entire structure’s roof remains level, the overall height of the structure is approximately half of what typical solar parking structures are, and the minimum clearance underneath can still accommodate even the largest of vehicles.

Speaking of vehicles, remember the fact that a solar carport is in a parking lot or located on top of a parking garage. The possibility of 2 ton+ vehicles speeding through the parking lot created a challenge to ensure that no vehicles could impact and damage the structure. To accomplish this, Sunterra designed the structure with a T-cantilever design that if viewed from the end looks like a giant “T”. The columns run in a single row down the middle of the structure and not at the outside corners or side where vehicles drive. This design, combined with the use of normal concrete parking blocks, virtually eliminates the possibility for cars connecting with the structure. Additionally, there is a very low parts count due to the integration of the panel fixed tilt mechanism which reduces the overall cost of the system, again improving ROI.

The structure’s simplistic and aesthetic design and has been highly admired by everyone from the owner, general contractor, installers and building department officials as an improvement over other solar structures they have seen..

The structure itself was completed from footings to roof in approximately 3 days and the PV system installed in about two weeks with a limited crew. The system’s design is amazingly modular. It can be installed with as little as 30kW up to multi-megawatt sizes without any additional engineering.

The 29KW system will eliminate approximately 30% of the estimated usage from the complex’s common area meter based upon similar new construction projects. The system is estimated to produce approximately 50,000 kWh of clean, green, renewable electricity from a single solar power array that holds approximately 2700 sq. ft. of solar panels on top of a custom engineered free-standing 4500 sq. ft. T-cantilever parking shade. The electricity produced from the system eliminates the production of similar amounts of fossil fuel electricity that would normally be produced with a bi-product of greenhouse gases such as 64,000 lbs. of CO2 and 21 lbs. of deadly NOx. This is also similar to removing 7 full sized automobiles from the road and planting 9 acres of trees.

There system consists of 192 ET Solar 180 watt mono-crystalline solar panels mounted on a 15 degree tilt to the south on top of the parking shade, along with 4 additional “filler” panels. When the sun is shining the panels produce DC electricity, similar to a car battery but much larger, which is fed through an underground electrical system into the SMA SunnyTower 36KW inverter located in the protected area below the CarShade where it converts the DC electricity into AC electricity at the same voltage as the buildings electrical system. From there the electricity is fed into the building’s main electrical switchboard where it is used instantaneously by the building or sold back to the utility company for a credit.

The system includes a state of the art Online Monitoring System so that the systems operation can be observed by Sunterra 24/7.

The system will save the owner approximately $14,000 annually and with the generous rebates, grants and tax incentives will pay for itself in less than 5 years when considering the typical average energy cost increase of 6.7% per year.

DOWNLOAD THE PDF CASE STUDY

About Sunterra Solar

Sunterra Solar Inc. is one of North America’s premier commercial solar power contractors. Sunterra designs and constructs turn-key grid-connected solar power systems and structures for commercial, agricultural and government customers. We have a decade of experience in the solar industry building large scale systems. Sunterra designs and builds the system that matches your organization’s needs both technically and financially, and guaranteed to exceed your expectations in long term performance.

In addition to turn-key solar power systems we also design and install automated monitoring and control systems and building energy efficiency measures. Our creative design team has experience engineering difficult builds and has proven ability to design outside of the box.

Sunterra Solar Inc. was founded by solar industry veteran Chris Bunas, who also holds a Solar PV Installers Certification from the North American Board of Certified Energy Practitioners or NABCEP.

After approximately a decade of experience developing grid-tied solar power projects at another organization, Mr. Bunas felt it was the appropriate time to launch his own solar company to focus on commercial solar power projects with a more direct and efficient business model.

Mr. Bunas was the key factor in the creation, development and operation of the Solar Electric Division as Vice-President at another very well known northern California solar integrator, where he excelled for 7 years building that company’s brand and services. Aside from virtually building the solar electric division from scratch at this company, Mr. Bunas personally designed, developed and managed or oversaw construction of many well known solar plants such as Paramount Farms 1.1MW solar plant, Cline Cellars Winery 412KW solar power plant, Merryvale Vineyards – Starmont 277KW solar power plant, and many others. During his employment, Mr. Bunas designed, developed and managed many great solar installations throughout California.

Over his entire industry tenure, Mr. Bunas has been very involved with local building departments, utility companies and industry associations and assisted in developing regulations for rebates and interconnection of solar power systems. In one case, along with assistance from an environmental consultant, Mr. Bunas helped change a 40 year old law and regulation for some central Ca counties so that large scale solar projects could get built without have to wait for years of red tape.

Prior to landing in the solar power industry in 2000 Mr Bunas, a California native, worked in technology at the VP and Director Level for various fortune 500 companies where he successfully delivered many large scale technical IT solutions.

Mr. Bunas is a proud military veteran of the US Marines during Operation Desert Storm. Mr. Bunas brings all of the leadership experience and core values, like loyalty, honesty and integrity, along with attention to detail and “Outside the Box” can-do attitude taken from the military into Sunterra’s business practices used today.

For Immediate Release

November 16, 2010

[Novato, CA]— Sunterra Solar Inc. today announced that President and CEO Chris Bunas has earned the industry’s leading recognition of expertise as a certified installer of solar electric systems (aka “photovoltaic” or “PV” systems) from the North American Board of Certified Energy Practitioners (NABCEP).

NABCEP is the most respected and well-established national certification organization for renewable energy professionals. Nicknamed by some to be the Master PV Solar Certification, designation as a NABCEP certified solar PV installer is widely recognized to be the most important and meaningful certification of its kind in the renewable energy industry.

“Receiving NABCEP’s Certified Installer status is personally very satisfying,” said Bunas. “The importance of having the certification was elevated to a greater level once I actually began preparing for, and taking the exam. The process showed me where I was strong and where I needed to brush up on technical knowledge. This greater awareness means we can offer our customers the added confidence of knowing their installation will be performed to the highest standards in the solar industry.”

To earn his NABCEP certification, Bunas was required to demonstrate his competence as a solar PV installer by passing a rigorous exam that covers the multi-craft aspects of being a professional PV installer. He needed to demonstrate knowledge on subjects as diverse as system design, electrical and job safety, the National Electrical Code, roofing and construction techniques, system commissioning, and troubleshooting. “Add an emphasis on system design and job safety. Both are very important points that PV company owners should be particularly familiar with, “said Bunas. “In my humble opinion, this is as much a PV Company Owner’s Certification as it is a PV Installer’s Certification. It seems less important if the company owner is not certified since it is the owner that creates the company culture and enforcement of the practices outlined in the certification.”

“It didn’t help that the exam had a reputation of extreme difficulty,” added Bunas. “It is not the type of test that you can pass just by memorizing the content or being a great tester.” Also added Bunas, “It has been a great year for certifications and licensing for Sunterra. Not only have we added this certification, but have also added our California C46 Solar contractor’s license classification along with our Veteran Owned Business and SBE certifications.”

In addition to passing the exam all certified NABCEP installers are required to show that they have real-world experience as a senior person on the installation crew as well as a minimum number of hours of advanced training.

“One thing you can be assured of with NABCEP Certified Installers is that your job won’t be their first,” said Ezra Auerbach, executive director of NABCEP. “Anyone who makes the considerable effort required to earn NABCEP Installer Certification has been required to document their experience and education as part of the eligibility process. They have also made a very real commitment to upholding high standards of ethical and professional practice. We are delighted to welcome Chris Bunas, President of Sunterra Solar to the ranks of the industry’s leading solar installers.”

For more information, email Sunterra Solar, at info@sunterrasolar.com or call (415) 883-6800.

About Sunterra Solar Inc.

Sunterra Solar Inc was founded by solar industry veteran Chris Bunas. After approximately a decade of experience as Vice-President developing grid-tied solar power projects at another organization, Mr. Bunas felt it was the appropriate time to launch his own solar company to focus on commercial solar power projects with a more direct and efficient business model. Sunterra is a fully licensed and insured CA Contractor with a B General and C46 Solar License (940158). Sunterra president, Chris Bunas is a NABCEP Certified Solar PV Installer™. Sunterra is a 100% Service Disabled Veteran Owned Small Business and a registered SBE organization.

About NABCEP

NABCEP is a non-profit organization governed by a board of directors consisting of volunteer representatives of the solar industry, NABCEP certificants, renewable energy organizations, state policy makers, educational institutions, and the trades. NABCEP’s mission is to develop and implement quality credentialing and certification programs for practitioners by supporting and working closely with professionals and stakeholders in the renewable energy and energy efficiency industries. To learn more visit www.nabcep.org.

By Michael Balchunas (Sunpluggers.com)

Published July 29, 2010
A nationwide campaign to muster political support for stalled financing programs that help homeowners and businesses save money with solar electric systems is gaining traction, proponents say.
“We’re not there yet, but we’ve made a good bit of progress,” said Jeffrey Tannenbaum, founder of an advocacy group called PACENow.org, in a conference call Thursday to supporters around the country.
Local officials from cities, counties and states, as well as ordinary voters, have flooded their U.S. senators and representatives with letters and emails proclaiming support for a financing method commonly called Property Assessed Clean Energy, or PACE.

These programs allow property owners to install solar photovoltaic systems or other energy improvements – such as insulation, new windows or new air conditioners – with little or no up-front cost. The owners pay an increased tax bill, but the higher tax is expected to be offset by savings on energy costs. The special tax payment can last as long as 20 years. If a home or business is sold, the solar system or other improvement stays with the property, and the new owner takes over the payments.

After expressing concerns about these programs for months, the government-sponsored mortgage enterprises known as Fannie Mae and Freddie Mac issued warning letters to lending authorities last spring that effectively put a halt to most PACE programs.

A common aspect of tax-assessed energy programs is that the debt becomes senior to other liens on a property in the event of a payment default by the owner.

The Federal National Mortgage Association and the Federal Home Loan Mortgage Corp., the formal names for Fannie Mae and Freddie Mac, said in letters to lenders in May that these energy liens could not be made superior to mortgage debt for mortgages that they would accept. Between them, the two government-supervised agencies recently owned 56 percent of U.S. mortgages.

The Federal Housing Finance Agency, which oversees the mortgage entities, and the Office of the Comptroller of the Currency, which regulates banks, have put PACE programs in limbo with guidance letters to banks and other lenders that caution them about tax-assessed energy financing.

Although this funding approach for energy projects so far has been a minuscule part of home-related lending in the United States, the agencies have concluded that it is risky and unsound.

“Homeowners should not be placed at risk by programs that alter lien priorities and fail to operate with sound underwriting guidelines and consumer protections,” said Edward J. DeMarco, acting director of the Federal Housing Finance Agency, in a recent statement defending the agency against an onslaught of criticism.

PACE proponents are fighting to restore the programs by stirring up public opinion, filing lawsuits and seeking legislative remedies.

“The outreach by the PACE network has been extraordinary,” Mr. Tannenbaum told supporters by telephone and the Internet. “Thousands of letters went out to House members and senators,” after activists began raising a hue and cry about the federal regulators’ actions.

“The White House is very engaged in this,” said Mr. Tannenbaum, but so far, President Obama has not commented or publicly acted on the stalemate. Mr. DeMarco, acting head of the Federal Housing Finance Agency, was appointed by Mr. Obama; John C. Dugan, comptroller of the currency, who is due to step down Aug. 14, was appointed by President George W. Bush.

Mr. Tannenbaum said the impending congressional recess will likely delay any action on the PACE issue until September or later. Although “Progress has been very strong,” he said, “It will take more time to build the bipartisan movement” in support of restoring tax-assessed energy financing.

The PACE debate, like the rapid development of the solar electricity industry, is causing political representatives to keep a close watch on attitudes and actions within their constituencies. More than 40 solar-related companies in the past year have announced plans to build new factories or expand existing ones in a variety of states; electric vehicle and battery manufacturers are ramping up; and many related industries are expected to be hiring in the coming years if these manufacturing enterprises continue to grow.

Support in Congress for restoring PACE programs has so far come mostly from Democratic lawmakers, 44 of whom signed a recent letter to the president asking him to intervene.

“Many Americans, states, and municipalities are counting on this program to be restored,” the letter said.

However, PACE supporters have been seeking to enlist Republican backing as well. In California, many political observers are just learning that solar electric systems are proving popular among conservative constituencies in places such as the San Diego area, where military families are aware that all branches of the U.S. military have strongly embraced solar for both financial and national security reasons, and in the sunny Central Valley.

The rapidly evolving political landscape has required some nimble footwork from representatives.

In San Diego, GOP Mayor Jerry Sanders has strongly endorsed a lawsuit filed by California Attorney General Edmund G. Brown Jr., a Democrat, to attempt to break the PACE gridlock.

U.S. Rep. Duncan Hunter, a conservative Republican and U.S. Marine Corps veteran of the wars in Iraq and Afghanistan, who represents a San Diego-area district, also is a PACE supporter.

In a recent letter to Mr. DeMarco, the appointee of Mr. Obama who has criticized PACE financing, Mr. Hunter said, “many within the San Diego community have invested a significant amount of time and financial resources in the municipal solar financing programs involved with PACE.”

“These efforts have helped strengthen the local economy by creating and sustaining jobs and saving taxpayer dollars.”
U.S. Rep. Duncan Hunter
San Diego Republican

“These efforts have helped strengthen the local economy by creating and sustaining jobs and saving taxpayer dollars, both critical efforts as our region struggles along with the rest of the nation to meet the challenges of the current economic environment. San Diego uses the PACE initiative as a means of utilizing one of our most reliable natural resources, solar energy, while at the same time helping achieve many stated national goals pertaining to unemployment, environmental conservation and reducing America’s dependence on foreign oil. This decision by the FHFA adversely affects all the progress that has been made in these areas and has the potential to thwart future property and renewable energy investment, not only in San Diego but throughout California.”

Less than a month earlier, Mr. Hunter had written a lengthy letter of opposition to a controversial plan by San Diego Gas and Electric Co. to build a new high-voltage transmission line called the Sunrise Powerlink, which the company says is needed to carry solar electricity from planned outlying solar power plants into the San Diego metropolitan area. Mr. Hunter’s letter said studies show San Diego could support 5,000 megawatts of solar electricity generation from rooftops and parking lots, without the need for the new power line.

The congressman’s letter on the PACE issue said, “Director DeMarco, I hope you would agree that public policy decisions should reinforce national goals rather than create obstacles that prevent them from reaching their potential … I respectfully request that you take the appropriate action to rescind this decision and allow the San Diego region to continue to demonstrate to the nation how a community responds to adversity.”

In Thursday’s conference call and webinar, PACE supporters said that Mr. DeMarco and other federal financial regulators have overstated the risk of tax-assessed financing for energy projects.

“The senior lien risk is small,” Mr. Tannenbaum said, because if the owner of a $15,000 PACE-financed project were to default and enter foreclosure, only the delinquent tax amount would be subject to priority collection, not the entire $15,000, for which payments would be spread over many years and would transfer to a new property owner. Solar electric systems are typically warranted for 20 to 30 years of power production, and may last even longer, retaining calculable value far into the future.

The money for PACE projects comes from bonds issued by public or private entities. In a typical bonding portfolio of PACE loans, spread over many participants, the default risk per household amounts to perhaps $75, Mr. Tannenbaum said.

“We have had huge community support and huge business support. ”
Rod Dole
Sonoma County
(Calif.) Official

Rod Dole, auditor, controller, treasurer and tax collector for Sonoma County, Calif., whose Energy Independence Program has been the most successful in the country so far, said during the webinar that “we have had huge community support and huge business support.” Sonoma County’s Board of Supervisors voted recently to continue its tax-assessed energy program in spite of the regulators’ warnings. Applicants are informed of the potential for mortgage issues to arise.

With more than 1,000 energy projects financed, the county has had “no defaults or foreclosures among SCEIP participants,” Mr. Dole said. He said 3 percent of county taxpayers are behind in their payments, but only 1.2 percent of participants in the energy program have overdue accounts. Many of those are likely people who forgot to make payments before going on vacation, he said.

Dorian Dale, energy director for the town of Babylon, N.Y., on Long Island, mentioned during the electronic conference that his town is preparing a lawsuit over the issue of tax-assessed energy financing, which will focus on the 10th Amendment rights allotted to states.

“We’re dealing with an intransigent opposition here,” he said of the federal regulators, and states’ rights supporters represent “a constituency that should be concerned about this edict from FHFA.” He told the audience that the opposition to PACE arises “from the folks who brought us the trillion-dollar subprime tsunami.”

Cisco DeVries, president of the company Renewable Funding, which has been involved in establishing more than 200 PACE programs, said, “The support has been remarkable” for restoring the financing method, and “has been understood loud and clear” by political representatives as diverse as Mr. Hunter and Democratic Speaker of the House Nancy Pelosi.

“We need to make this a shining example of bipartisanship” in Congress, he told supporters, adding, “This has not gone unnoticed by the most powerful people in the U.S. government.”

San Francisco City Hall
Only a few weeks before Fannie Mae and Freddie Mac took aim at the PACE solar financing mechanism in May, San Francisco launched its own version of the program, called GreenFinanceSF. Like many other sponsors, the city has temporarily suspended its program because of federal agencies’ objections. Above, San Francisco City Hall.

By Michael Balchunas

Published July 15, 2010

Supporters of community programs that use special tax assessments to help people install solar electric systems are mobilizing for a battle.

More than 600 of them took part in a conference call Wednesday to learn what they can do to help overturn federal directives that caused many such programs to grind to a halt just as an unprecedented wave of residential and business solar photovoltaic installations was getting under way last spring. With consumers scooping up bargain rates for solar electricity in state after state, some property owners who want to own a system but are unable to pay cash up front have been shut out.

“Let’s be
clear. They
are trying
to kill
PACE.
That is
their
intent.”
Cisco DeVries
Creator of the PACE
solar financing concept

The federal action “has really gotten folks outraged,” said Jeffrey Tannenbaum, founder of a group called PACEnow.org, during the conference call, which it organized with the Natural Resources Defense Council and the Vote Solar Initiative. “The next three weeks are the most critical.”

Shortly after the conference call ended, California’s attorney general, Edmund G. Brown Jr., announced that the state had filed a lawsuit against the mortgage financing enterprises known as Fannie Mae and Freddie Mac, which issued advisory letters May 5 that have put Property Assessed Clean Energy programs, as they are commonly called, in limbo.

“Let’s be clear. They are trying to kill PACE. That is their intent,” said Cisco DeVries, the creator of the PACE financing concept, during the telephone discussion directed at supporters.

PACE financing plans, adopted in varying forms in more than 20 states, allow property owners to buy and install solar PV systems or make other energy improvements with little or no money up front. A typical 5-kilowatt residential solar PV system may cost $25,000 or more out-of-pocket, although incentives can reduce the cost.

Tax-assessed financing allows owners to pay for the systems over periods as long as 20 years through special assessments added to property-tax bills. The approach is not for everyone; those able to wrap a solar PV purchase into a mortgage refinancing may obtain lower rates at present, but the fall in housing prices has left huge numbers of homeowners with much-reduced equity, or none at all. A cash purchase offers the cheapest long-term solar electricity price, but the initial outlay can be daunting or impossible. Leases or power-purchase agreements, some with zero-down options, have surged in popularity recently, perhaps boosted in part by the stall affecting PACE programs.

However, for some property owners, PACE financing is not only attractive, it may be their only option if they wish to own a solar electric system. One example of a PACE participant may be a retiree on a fixed income who is unable to pay cash for a solar array, but who can use tax-assessed financing to lock in an electricity price for 20 years or more, providing security against rising energy costs.

A key rationale behind tax-assessed financing is that the saving on electricity bills creates free cash flow that can be used to cover the owner’s higher taxes. Whatever way a solar PV system is acquired, the long-term predictability of a properly sited array’s electricity output makes it an investment with a value that can be calculated with an unusually high degree of confidence.

“In one fell
swoop these
entities have
issued a
death knell
to PACE,
thrown people
out of work,
and frozen
tens of millions
in private
capital that
can help
speed our
economic
recovery.”
Edmund G. Brown Jr.
California state attorney general

One common feature of tax-assessed financing has been that the solar array and the special tax assessment stay with the property if the owner should move. Solar modules are typically warranted for 20 to 30 years of power production, and may last even longer.

PACE programs are usually sponsored and overseen by local or regional governments such as cities or counties. Special tax assessments have long been a common way to finance community improvement projects, and provide the legal framework under which many of the programs have operated.

Like some other special tax assessments, PACE projects in some jurisdictions have been given senior lien status in the event of a mortgage default on a property. This position of superiority to a mortgage, with its assurance of repayment, has helped PACE program organizers obtain funding, allowing them to provide consumers financing at interest rates competitive with or better than home equity loans or lines of credit. In today’s real estate lending market, large numbers of homeowners whose property values have dropped have been unable to qualify for equity financing.

Many PACE programs have not required credit checks, but organizers have not reported high rates of tax delinquency – the largest PACE program has experienced a lower-than-average rate of overdue payments – and the mortgage enterprises have not cited data to indicate that PACE users are at higher risk of mortgage defaults.

After expressing concerns about tax-assessed energy improvements over a period of months, the Federal National Mortgage Association and the Federal Home Loan Mortgage Corp., the formal names for Fannie Mae and Freddie Mac, said in their May letters to lenders that these energy liens could not be made superior to mortgage debt for mortgages that they would accept.

Because the two government-sponsored enterprises between them own about 56 percent of U.S. home mortgages, meaning many participating homeowners with mortgages could be affected, the letters brought PACE programs across the country to a standstill. Mortgage officials have suggested in their communications that they interpret the financial disbursements to participants as loans, not as traditional special tax assessments.

The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, issued a longer, more detailed directive July 6 on PACE financing, citing a number of objections in addition to the senior lien status. Among other things, it expressed concerns about loan-to-value ratios and about consumer lending protections.

The federal Office of the Comptroller of the Currency also weighed in July 6 with similar concerns in a bulletin to banks. “The OCC supports commercial and residential energy lending when such lending programs observe existing lien preference, ensure prudent underwriting, and comply with appropriate consumer protections,” the bulletin said. “Programs that fail to comply with these expectations pose significant regulatory and safety and soundness concerns.”

Mr. DeVries, who had helped San Francisco Mayor Gavin Newsom launch that city’s tax-assessed energy program a few weeks before Fannie Mae and Freddie Mac took aim at the financing mechanism in their May 5 letters, said in the telephone conference that the federal officials’ concerns are unfounded.

“Over the last few months these regulators have raised a number of concerns. Every one of those issues was raised, and in every one of those cases the issue was resolved,” he said.

San Francisco, like many other sponsors, has suspended its tax-assessed financing program, called GreenFinanceSF.

“The City and County of San Francisco deeply regrets this development and has joined with other local governments to urge Fannie Mae, Freddie Mac and FHFA to reconsider their position and allow local governments to bring the benefits of energy conservation and job creation to communities across the country,” the program’s website advises residents interested in participating.

Although Mr. DeVries developed the concept of PACE financing while working as an aide to the mayor of Berkeley, Calif., the first city to actually begin authorizing tax-assessed financing for energy projects was Palm Desert, Calif., in August 2008.

Berkeley formally began its special energy assessments about a month after Palm Desert’s Energy Independence Program got under way. The plan was slow to gain adherents in Berkeley, but in Palm Desert, a golf-resort community packed with retirees, it took off. Palm Desert, with about half the population of Berkeley, had almost 10 times as many participants in the first year of operation.

Palm Desert, too, has suspended its residential program because of the mortgage issue.

“In an effort to protect our participants, the Palm Desert Energy Independence Program is temporarily suspending the processing of all residential applications and will not be accepting new residential applications or signing new contracts pending direction from the City Council. Businesses are still eligible to apply,” the city’s website advises prospective applicants. “We remain hopeful and will continue our endeavors toward a positive resolution that will allow the EIP to again offer financing to all segments of the community.”

PACE supporters have been joined by members of Congress in urging Fannie Mae, Freddie Mac and the Federal Housing Finance Agency to loosen the strictures that have choked off PACE financing. Most of the political support in Washington has come from Democrats so far. Mr. Tannenbaum told PACE program organizers and other supporters in the telephone conference that the real issue is, “The federal government has infringed on states’ rights” by denying them the opportunity to use local tax assessments for energy projects. He urged supporters to pay heed to Republicans’ concerns, because “we need Republican leadership” to help overcome the federal blockage.

Although on a national basis Democrats have been more closely associated with the promotion of solar energy, in California, the leading solar state, this form of electricity generation has been at least as popular among Republican property owners and officials, if not more so. Palm Desert and Berkeley are poles apart in a political sense. San Diego, a city with a significant population of military families and retirees that is led by a Republican mayor, Jerry Sanders, has more rooftop solar PV installations than either Los Angeles or San Francisco. Solar electricity also has been popular throughout the politically conservative farmlands of Central California, while some politically liberal coastal cities have lagged in adopting it.

Republican Gov. Arnold Schwarzenegger has been the most prominent single supporter of solar adoption in California, crisscrossing the state himself or sending other administration officials out to commemorate major solar installations and announcements of new factories and other projects. Lancaster Mayor R. Rex Parris, a staunchly conservative Republican, has been positioning his Mojave Desert city of about 150,000 people to become a solar powerhouse and a world model for cleaner energy production, while solar development has largely been stymied thus far 75 miles away in sprawling Los Angeles, which relies on out-of-state coal power plants for the largest proportion of its electrical generation.

“It is really
shortsighted
of one federal
agency to
not understand
the benefits of
PACE programs.”
Valerie Brown
Sonoma County, Calif.,Board of Supervisors

Not all PACE programs have shut down.

The Sonoma County, Calif., Board of Supervisors voted Tuesday to keep open its Sonoma County Energy Independence Program, the single most successful such effort in the nation, with more than 1,000 projects undertaken.

“It is really shortsighted of one federal agency to not understand the benefits of PACE programs, especially the SCEIP,” board Chairwoman Valerie Brown said in a news release. “Our program reflects investment in clean energy, local job creation and fiscal prudence. We know hampering consumers’ use of these voluntary assessments is a bad call. Our board’s action will ensure people are fully informed of the options, risks and opportunities that exist when they work with SCEIP.”

While PACE organizers on the conference call were urging supporters to pursue both political and public-opinion support, staff members for Mr. Brown, the California attorney general, were filing a lawsuit electronically with the U.S. District Court for Northern California.

“Fannie Mae and Freddie Mac received enormous federal bailouts” as a result of the housing crisis, Mr. Brown said, “but now they’re throwing up impermeable barriers to bank lending that creates jobs, stimulates the economy and boosts clean energy.”

A news release issued by Mr. Brown’s staff noted that San Diego has suspended its planned PACE program, leaving trained installers jobless.

San Diego’s mayor, Mr. Sanders, said in the release issued by the attorney general, “I believe that the PACE program is critical to stimulating our local and statewide economy. I’m glad to see this lawsuit filed so that this novel program can continue.”

Mr. Brown also wrote to President Obama on Wednesday, requesting his intercession.

He said in the letter that Fannie Mae, Freddie Mac and the FHFA “have been deaf to the repeated entreaties of dozens of cities and states” as well as the U.S. Department of Energy, and “in one fell swoop these entities have issued a death knell to PACE, thrown people out of work, and frozen tens of millions in private capital that can help speed our economic recovery.”

“Earlier today I reluctantly filed a lawsuit against these federal entities, but it would be much better to solve this problem without litigation,” the letter said, adding, “We need to solve this problem.”

Sunterra Completes Solar Project at Valley Wide Beverage Company

March 2010, Novato, CA
Sunterra Solar Inc of Novato, CA has completed construction of a 381KW roof mounted solar power system at Valley Wide Beverage Company in Fresno, CA.

The 381KW solar power system will eliminate approximately 100% of the estimated usage from the facility meter. The system is estimated to produce approximately 530,000 kwh of clean, green, renewable electricity from a single solar power array that holds approximately 30,000 sq ft of solar panels. The electricity produced from the system eliminates the production of similar amounts of fossil fuel electricity that would normally be produced with a bi-product of greenhouse gases such as 720,000 lbs of CO2 and 231 lbs of deadly NOx. This is also similar to removing 73 full sized automobiles from the road and planting 102 acres of trees.

There system consists of 1905 Suntech 200 watt solar panels mounted on a low profile mounting system on the buildings south facing roof. When the sun is shining the panels produce DC electricity, similar to a car battery but much larger. That electricity is fed through an new dedicated electrical system into the Satcon 375KW inverter located in the building’s environmentally controlled electrical room where it converts the DC electricity into AC electricity at the same voltage as the buildings electrical system. From there the electricity is fed into the building’s main electrical switchboard where it is used instantaneously by the building or sold back to the utility company for a credit.

The system will save the owner approximately $90,000 annually, and with the generous rebates, grants and tax incentives will pay for itself in less than 6 years when considering the typical average energy cost increase of 6.7% per year.

An additional foam roof coating was applied over the existing foam to seal and insulate any penetrations in the roof. The project was designed, developed, and closely managed by Sunterra Solar Inc, along with the supply of materials.

Note:
Customer also performed energy efficient lighting and HVAC upgrades

Completed March 2010 – 381KW DC – Fresno, CA
Solar Panels: Suntech 200 watt
Inverter: Satcon 375KW
Mounting System: Professional Solar Products
Est Annual KWH Production: 530,000
Est Annual Bill Savings: $90,000

Download the PDF Case Study

Click Here to view the live system monitoring.

About Sunterra Solar

Sunterra Solar Inc. is one of North America’s premier commercial solar power contractors. Sunterra designs and constructs turn-key grid-connected solar power systems and structures for commercial, agricultural and government customers. We have a decade of experience in the solar industry building large scale systems. Sunterra designs and builds the system that matches your organization’s needs both technically and financially, and guaranteed to exceed your expectations in long term performance.

In addition to turn-key solar power systems we also design and install automated monitoring and control systems and building energy efficiency measures. Our creative design team has experience engineering difficult builds and has proven ability to design outside of the box.

Sunterra Solar Inc. was founded by solar industry veteran Chris Bunas, who also holds a Solar PV Installers Certification from the North American Board of Certified Energy Practitioners or NABCEP.

After approximately a decade of experience developing grid-tied solar power projects at another organization, Mr. Bunas felt it was the appropriate time to launch his own solar company to focus on commercial solar power projects with a more direct and efficient business model.

Mr. Bunas was the key factor in the creation, development and operation of the Solar Electric Division as Vice-President at another very well known northern California solar integrator, where he excelled for 7 years building that company’s brand and services. Aside from virtually building the solar electric division from scratch at this company, Mr. Bunas personally designed, developed and managed or oversaw construction of many well known solar plants such as Paramount Farms 1.1MW solar plant, Cline Cellars Winery 412KW solar power plant, Merryvale Vineyards – Starmont 277KW solar power plant, and many others. During his employment, Mr. Bunas designed, developed and managed many great solar installations throughout California.

Over his entire industry tenure, Mr. Bunas has been very involved with local building departments, utility companies and industry associations and assisted in developing regulations for rebates and interconnection of solar power systems. In one case, along with assistance from an environmental consultant, Mr. Bunas helped change a 40 year old law and regulation for some central Ca counties so that large scale solar projects could get built without have to wait for years of red tape.

Prior to landing in the solar power industry in 2000 Mr Bunas, a California native, worked in technology at the VP and Director Level for various fortune 500 companies where he successfully delivered many large scale technical IT solutions.

Mr. Bunas is a proud military veteran of the US Marines during Operation Desert Storm. Mr. Bunas brings all of the leadership experience and core values, like loyalty, honesty and integrity, along with attention to detail and “Outside the Box” can-do attitude taken from the military into Sunterra’s business practices used today.

Mitsubishi will join other panel manufactures such as Suntech and Sharp USA as the mainstay products offered by Sunterra.