Crowdfunding Helps Military Conversion to Solar Energy

U.S. Army's solar array at White Sands, New Mexico

      The U.S. military has ambitious plans ($7 billion worth) to install renewable energy at bases and other facilities across the nation. American taxpayers, of course, are footing the bill. But now they can choose to put their money into a military solar project and make a return, thanks to the crowdfunding craze.
      Mosaic, a California startup that earlier this year began letting ordinary investors put in as little as $25 to help finance commercial rooftop photovoltaic arrays, today announced its first military-related project, a 12.3-megawatt installation that will put 55,189 panels on housing at Joint Base McGuire-Dix-Lakehurst in New Jersey. The panels will be installed on 547 homes and are expected to supply 30% of their electricity demand.
     The deal is significant on two fronts. Military bases represent a huge market that will help drive down the cost of solar energy through economies of scale. Silicon Valley's SolarCity, for instance, scored a $1 billion deal in 2011 to finance and install 371 megawatts of photovoltaic panels on military housing in 30 states. Second, the deal marks a new way to finance solar energy. As lucrative U.S. tax breaks for solar and wind projects fall from 30% to 10% at the end of 2016, they will become less attractive to big banks and corporate investors currently bankrolling commercial and residential solar projects. Enter the ordinary investors, not the high-roller ones but the ordinary ones.

Solar Mosaic Raising Crowdfunding for Solar Panels on Military Base

         Solar Mosaic, a solar crowdfunding service, has announced that they have a project on its site that offers to fund solar energy for the U.S. Military Housing in Fort Dix, New Jersey. The project, which calls for 12,270 kilowatts, is said to be more substantial than the others currently listed. Most projects usually range from 1.5 kilowatts to 662 kilowatts. Therefore, Solar Mosaic is seeking to raise $500,000 to invest in this large project, which is being financed in partnership with CIT Group, Inc. In effect, Solar Mosaic and its investors will be funding a small portion of the $35 million project. 

         According to Mosaic's site: "The project will be installed across 547 homes, providing approximately 30% of the electricity needs to military service members and their families." This includes 55,189 solar panels. 

         The Department of Defense is actually the largest consumer of energy in the world, with an annual energy budget of $20 billion. Whether it is experimenting with renewable fuel for jets, or powering bases with solar energy, they are constantly looking for new ways to reduce fossil use. 

          In November 2011, SolarCity has created a project known as SolarStrong, which hopes to supply solar power to 120,000 military homes. Earlier this summer as well, SolarCity had announced plans to put solar panels on 7,500 military homes in Hawaii. 

          By participating in these efforts, the military is currently helping to build a market for solar power. In a May report, the Solar Energy Industries Association (SEIA) called the U.S. Department of Defense "the world's largest energy consumer and one of the greatest catalysts of technological innovation." The trade association went on to note the efficiency of renewable energy for the military: "In most cases, the military can sign on long-term contracts for solar energy that are below local retail rates for electricity." 

Solar Energy Helps Power 4th Grade Classrooms

           In Durham, North Carolina, a classroom of fourth graders have been learning upon the subject of solar energy and other energy sources from their teacher, Aaron Sebens, and have came up with the idea of having their own classrooms powered by solar power energy. The video below features the journey they came across from arising to the idea to making it a reality, where it ends in having a celebratory party, whereas Aaron and his students officially "flips the switch."
           To fund the project, Aaron and his class has launched a crowd-funding campaign that asked for support throughout America and around the world. The students had originally hoped to raise $800 but significantly, beat their expectations by raising to more than $5000.

 

Closer Details of Mosaic's Crowdfunding Projects

       Mosaic, a solar crowdfunding service, had announced on Monday that it had received permission from California securities regulators to offer $100 million in new investment opportunities in the state. Therefore, on Tuesday, the first of the projects Mosaic had to offer, which was a 114-kilowatt array on the roof of the Ronald McDonald House in San Diego, was quickly fully subscribed. It only took Californians simply 6 hours to invest $157,750 in the project, which happened to offer a 4.5% annual return.

2012 Mosaic-financed project in Oakland

"The future is distributed clean energy, funded by the people. These are investments in infrastructure and they offer competitive returns," Mosaic President and Founder Billy Parish said. "More projects will be coming online soon."
        The public is already prepared for such projects to be offered for Mosaic had originally launched in January with four projects totaling to an amount of $313,000 and had sold out in less than 24 hours. More than 400 investors had invested between the amounts of $25 and $30,000, with the average investment being approximately $700.
        Solar financing in the United States is said to be held mainly in the province of Wall Street, with the likes of big corporations as Citi, Credit Suisse and U.S. Bancorp reaping the returns from the steadily growing industry. By Mosaic existing, it is trying to overturn the way things are (especially the way solar financing is done) at a very small scale to start.
        However, questions are arising as to whether crowdfunding solar might put inexperienced investors at risk. A recent analysis by Rocky Mountain Institute consultant Jessie Morris largely put those fears to rest, while recognizing that returns never came without risks. Not only this but Mosaic has moved to backing up its claim to offer "high-quality projects" by backing truSolar, an effort to develop standards for rating solar projects by risk. Founding members of truSolar include Mosaic, DuPont, PricewaterhouseCoopers, the Rocky Mountain Institute, Booz Allen Hamilton, the National Renewable Energy Laboratory and Assurant.