Joe wanted to take a minute to reinforce some great best practices for password creation and management to keep your online information safe and secure. Check them out on last week’s office hours! As always, you can watch Office Hours Live by going to our Facebook Page at 3PM Eastern every Friday. See you next week!
NAR/CRT Labs is proud to sponsor our first Hyperledger Hackathon at mHub here in Chicago in September. Hyperledger Hackathons are events where software developers get together and share ideas about a topic – in this case, blockchain – in order to strengthen the community around the topic and move forward with projects that will innovate within the space. NAR’s recent investigations into blockchain have lead us to partner with multiple groups, and together we hope to innovate within the blockchain and Hyperledger communities. If you’re interested in finding out more about these technologies, and are in the Chicago area, this event is for you! Hackathons are for all levels of skill and participation, so you don’t need to be a whiz programmer to be involved. We hope to see you on September 21st for this event!
The Illinois Blockchain Initiative, Chicago Blockchain Center, National Association of Realtors and mHub are proud to partner with Linux Foundation and Hyperledger to host Hyperledger Hackfest on September 21 & 22nd in Chicago.
What is Hyperledger Hackfest?
Hyperledger Hackfests are regular gatherings for developers working on the different projects hosted at Hyperledger.
What are the goals of Hyperledger Hackfest?
The primary goal for a Hackfest is to facilitate software development collaboration and knowledge sharing between participants, with an eye towards reflecting all ideas and conclusions back outward to the public open source community afterwards. A secondary goal is to bring new contributors and passive observers up the learning curve on the different technology platforms, and the cross-cutting issues affecting multiple projects (such as identity, security, development process, etc).
Who is eligible to participate?
Hackfests are public meetings, anyone is welcome to attend and participate no matter what their skill level, though the discussions will presume a significant familiarity with blockchain technologies and software development concepts on the Hyperledger protocol.
September 21 and 22, 9a-5p
mHub: Chicago’s innovation center for physical product development and manufacturing
965 W Chicago Ave, Chicago, IL 60642
What is the cost?
This event is free of charge
How do I register?
Yep, I’m going to cover the Tesla SolarCity panels. I left this one to last because unlike the “roof plus array”, Tesla offers shingles that turn the entire roof into a collector. Aesthetically, they look like metal or stone coasted shingles. Price wise, they are much more expensive. The interesting part is that with design, not only does the entire roof become an array, but all costs are subject to ITC, not just the array portion of “roof plus array”. They use HIT technology (from Part 2) and have plants in Fremont, CA and Buffalo, NY. Both cities utilized tax policy to land the plants which generated a couple of thousand jobs. Someday I’ll write something on the symbiotic relationship between government and technology in the sustainability area.
This series has covered a lot of ground including a roof primer, engineering background and governmental perspectives. This installment will finally get around to addressing my original reason for posting; the Tesla SolarCity pricing announcement. I wanted to explore the economic viability of the roofing system. Would this be a practical alternative today, or something to wait for?
SolarCity tiles are more attractive than solar panels. There are four styles planned, two of which are already being produced:
- Smooth (planned)
- Textured (planned)
Production is currently being handled by a facility in Fremont, CA, but a new facility in Buffalo, NY should come online soon. I grew up in Buffalo and returned for a visit last month. I saw the SolarCity plant and it is indeed impressive. In my opinion, it is a good example of government and industry working together because it is not based on tax incentives alone. The state owns the facility and equipment. Tesla will use the facility and hire the workers. Jobs and innovation; a developing relationship.
Since this series began a couple of weeks ago, Tesla has installed its first SolarCity roofing system. Bloomberg reports that the cost of SolarCity tiles are $420 per square and they compared this cost to standard roofing with a separate solar array, the common configuration. They also identified three target markets:
- Terra Cotta (or Tile)
They used the same comparison approach we used in this series; roof and array versus SolarCity.
There is no methodology information provided in the Bloomberg article, but they came up with the same conclusion. Using the cost figures from our first post and adding in the effect of the 30% ITC program, it is clear that one of the economic advantages of SolarCity is the entire roof is subject to ITC. ITC has a big effect on the economics as shown by the red line on the following chart.
Our analysis shows the competitive market for SolarCity to be:
- Copper or Zinc
- Tile (Terra Cotta)
- Metal Seam
It is difficult to predict the effect that high volume production and sponsored incentives will have on the consumer costs. On the performance side, we will know very shortly how these tiles perform. The move to Panasonic HIT technology may have delayed production in Buffalo, but is clearly a shift that will benefit consumers.
Before I end, please checkout the excellent work being done by Google’s Sunroof project. You should lookup your address to ensure that the property you are considering for solar can be positioned in a way to take advantage of sunlight. It can even help you locate the sunniest places on your roof! And stay tuned for more solar news, as the field is innovating all the time.
This piece and thoughts around it were inspired by my hometown of Muscatine, Iowa. It’s a town of 20,000 that’s relied on manufacturing labor for decades. It also has a mall that was a fixture of my formative years and was my town square. It’s where you went to see and be seen. Movies, music and books, a connection to the outside world. My internet before the internet. The problem today, however, is malls like the one I grew up with are experiencing hard times. As an example, Muscatine Mall, had 30+ stores in its heyday. Today, that’s been reduced exponentially. I asked my dad to document it and below are photos from a Saturday a couple weeks back.
Honestly, it is tough to see a place I used to frequent look so underutilized. Understand, I’m not critiquing the owners of the mall. They are interested in seeing this space succeed. It’s not their faults. Retail is taking a hit and small markets like Muscatine are suffering. The New York Times recently had a feature on a man who’s documenting the demise of malls. So what to do with the space?
A recent article of On Common Ground from our Smart Growth group at NAR points out various efforts around the US to repurpose malls. It’s a great piece. From community colleges to transitional housing, there are some really innovative efforts taking shape. But I’ve had an idea that I am certain someone is attempting and I just haven’t heard about it. What if malls became maker spaces?
What is a Maker Space?
By now, you may know that CRT is building our own environmental quality sensor for members to use as closing gifts. We were able to get this project started at our offices in Chicago. We have a 3D printer, equipment for soldering and building sensor boards. But then, we started to hit the limits of our equipment and space. Rather than asking our Budget Committee for hundreds of thousands of dollars of equipment we may only use a few times, we decided to look for a space we could work on this type of thing in. We were lucky to find a space called mHUB.
mHUB is 63,000 square feet, and over two million dollars worth of light manufacturing equipment. It’s a non-profit that was launched out of public and private partnerships with the City of Chicago through an organization called World Business Chicago and an awesome 8,000 square foot maker space called Catalyze Chicago. They joined forces with a number of businesses and created an amazing space.
In mHUB, we have access to a Woodworking Shop, a Metals shop, a 3D print lab, electronics lab, laser cutting machines and several other types of equipment. Things as simple as hammers, screwdrivers and wrenches. Not only that, we have access to the mindshare of mHUB members. Engineers, industrial designers, software developers, and hobbyists with an amazing idea. It’s a village of great innovation.
We pay a monthly membership and it allows us to access any of that equipment. It also gives us access to others working on projects that could overlap with our work or who could help inform what we’re doing and learn from them. We can prototype rapidly without incurring the traditional costs of manufacturing. mHUB consists of groups, like NAR, people who are trying out a new idea with no previous manufacturing experience, industrial engineers, artists and large companies, like GE.
Now imagine if cities like my hometown Muscatine, could use this to revitalize its industry and help workers who may be out of work, or people with an idea without a lot of capital, find a new way to make a living. It makes sense to me when I think about towns like Muscatine because of the workers’ skill sets.
Malls as Maker Spaces
In taking our experiences at mHUB, I see hope for the malls like the one in Muscatine. They can become communities of industry and innovation. Here are some potential uses for the space:
- The former shoe store becoming a woodworking shop
- The bookstore a 3D print lab
- The music store a tool library
- The cinemaplex of 4 theaters a space to hold presentations and meetups
- Job training could happen in the larger anchor stores and could be sponsored by the local companies
- The food court becomes a place to restaurants in the city to have pop ups or a cheap kiosk to sell lunch to the workers at the space
- Another storefront could become a server room and a local ‘cloud’ created for participants in the space
- Yet another space becomes a place to grow food
It could become a place to attract new business, a place to let the local business and manufacturing companies sponsor, and let the makers sell their wares.
My statement above about growing food is not a crazy one. Recently, a company called Plenty received a $200 million dollar investment from Jeff Bezos of Amazon fame, and other investors. Plenty creates systems for growing food indoors. Imagine if the food court became the place to grow food. Fresh food could be harvested and sold in an indoor farmers market.
So rather than going to the mall to buy manufactured goods, they become places to manufacture.
Revitalizing spaces in Muscatine is not a new idea, or for other communities for that matter. I’m very aware of the impact malls had on downtowns. In fact, in Muscatine, our downtown was decimated by the mall. But today, there are efforts to revitalize. One building in particular now has a great coffee shop and other specialty shops and is a destination for community members. Muscatine is not unique for this. Groups like Recast City are helping local governments think about how to do this type of thing.
The Challenges of this Idea (To Be Continued)
This is a long piece, so I’ll end with the presentation of the premise and say that I see challenges. I’m also looking for your ideas around what the challenges would be. Here is what I see as some immediate challenges:
- Community buy-in
- Business buy-in
- Building Infrastructure
- Space utilization
- Does it all need to be filled at once?
- Does it all need to be a maker space?
- Covering ongoing costs
- Who owns it?
So, what do you think? Does it sound feasible? Definitely submit ideas and thoughts in the comments below. Thanks!
This is the third post in a series on rooftop solar technology. This post will discuss some of the key legislative and regulatory efforts that are driving this technology and helping homeowners save energy and money on their utility bills. There are several key initiatives – both legislative and regulatory – currently in effect that will assist in the deployment of rooftop photovoltaics: the solar investment tax credit, the U.S. Department of Energy’s Sunshot program and a variety of other innovative, market-driven mortgage products offered by the Federal Housing Administration and Fannie Mae.
Solar Investment Tax Credit
The solar Investment Tax Credit (ITC) is one of the most important federal policy mechanisms to support the deployment of solar energy in the United States. The ITC was extended by Congress through 2021, which will provide business certainty to project developers and investors. The ITC continues to drive growth in the industry and job creation across the country.
- The ITC is a 30 percent tax credit for solar systems on residential (under Section 25D) and commercial (under Section 48) properties.
- The residential and commercial solar ITC has helped annual solar installation grow by over 1,600 percent since the ITC was implemented in 2006 – a compound annual growth rate of 76 percent.
- The existence of the ITC through 2021 provides market certainty for companies to develop long-term investments that drive competition and technological innovation, which in turn, lowers costs for consumers.
- The Section 25D residential ITC allows the homeowner to apply the credit to his/her personal income taxes. This credit is used when homeowners purchase solar systems outright and have them installed on their homes.
The ITC has proven to be one of the most important federal policy mechanisms to incentivize the deployment of both rooftop and utility-scale solar energy in the United States. As a result of the multi-year extension of the credit enacted in late-2015, solar prices are expected to continue to fall while installation rates and technological efficiencies will continue to climb. The solar industry is predicting that nearly 100 Gigawatts will be installed by the end of 2020. Moreover, the roughly 210,000 Americans currently employed in solar is expected to double to 420,000 in the same time period – all this while spurring roughly $140 billion in economic activity.
Department of Energy Sunshot Program
The U.S. Department of Energy (DOE) Sunshot Initiative is a national effort to support solar energy adoption by making solar energy affordable through research and development efforts in collaboration with public and private partners. SunShot funds cooperative research, development, demonstration, and deployment projects by private companies, universities, state and local governments, nonprofit organizations, and national laboratories to drive down the cost of solar electricity. When SunShot was launched in 2011, it set a goal for solar energy to become cost-competitive with traditional forms of electricity by 2020 without subsidies. This goal set cost targets at $0.09 per kilowatt hour for residential photovoltaics (PV), $0.07 per kilowatt hour for commercial PV, and $0.06 per kilowatt hour for utility-scale PV. According to recent DOE research, the solar industry had achieved 70% of the progress toward the 2020 goals, spurring the department to determine new targets beyond 2020. As the cost of solar comes down, more Americans can take advantage of the clean, affordable power that solar provides.
Aside from these two efforts, there are other national programs and mortgage products that help consumers acquire and finance energy efficiency upgrades, including solar panels, to reduce utility costs:
- Energy Efficient Mortgage – This is a Federal Housing Administration (FHA) loan program that allows borrowers to finance cost-effective energy-saving improvements as part of a single mortgage. These mortgages make it possible for property owners to borrow above the appraised value and stretch debt-to-income qualifying ratios.
- PowerSaver Home Energy Upgrades – This is another FHA program available to homeowners with manageable debt and a credit score of 660 or higher. These loans do not require a home appraisal or lien on the property.
- HomeStyle Energy Mortgage – This is a Fannie Mae program that allows borrowers to make energy-efficient or utility-cost-reducing upgrades within the mortgage when purchasing or refinancing a home.
- Property Assessed Clean Energy Programs (PACE) – These programs allow local or state governments to fund the up-front cost of energy improvements on commercial and residential properties, such as heating and cooling systems, solar panels or dual-pane windows. Property owners pay back those loans through a line item on the homeowners’ property tax bill.
While fossil fuels still dominate energy production overall in the U.S., solar and wind production are on a growth trajectory. According to the U.S. Energy Information Administration, the country set a renewable energy milestone in March of 2017. For the first time, wind and solar accounted for 10 percent of all electricity generation, with wind comprising 8 percent and solar coming in at 2 percent. The private sector is increasingly driving a global push for renewables as solar and wind become increasingly competitive. Solar panels are becoming cheaper, meaning investor interest may spur continued growth in the future. In combination with the energy of the market, the programs and efforts described above will continue to make inroads in the consumer marketplace, making solar a viable alternative for homeowners and businesses who choose to invest in these systems.
Tune in later this week for part four of this series, where Mark Lesswing will be looking into Tesla’s innovations into the solar roofing space.