Design and Conquer: BIPV is here
August 12, 2013 - Brokerage
It has been said that ten years from now, any real estate developer who does not employ solar power, and alternative energy technology into the design of their buildings, will be considered environmentally, and fiscally irresponsible. I think that is brilliantly accurate because I'm the one who said it. The only thing that may be off is the time frame. It will probably be a lot sooner. One reason is because of some of the players getting involved. Guardian Industries is on the Forbes Top 100 Private Companies list. They have annual revenue around 5 billion USD with 19,000 employees worldwide, and locations in 21 countries on 5 continents. "...When Guardian takes notice of a market like solar and makes a variety of glasses for a range of solar sub-sectors, it's a good sign that solar has hit a respectable size," said Eris Wesoff of Greentech Solar. This is a company that has set manufacturing processes for large, stable industrial clients, and they are investing in new equipment for the solar industry. Do you have any idea how expensive it is to change the machinery to make new products in manufacturing? Neither do I, but I bet it's big. And I bet when they do it, they have a pretty good sense that it is going to be worth their while.
The solar and real estate industries are moving inexorably toward one another and the results will be amazing. Leading this part of the design build component of solar technologies will be the intelligent application of Building Integrated Photo Voltaics (BIPV). This of course is the part where we define this term. Ok, here you go, BIPV is solar power sources that are an integral, structural part of the building envelope or façade. These most commonly take the form of the building's curtain wall. A curtain wall is a modular, pre-assembled window unit for commercial buildings. For this reason it is extremely important to have a developer experienced in the ways of solar, designing the building. No kidding Mike, you need a developer early on even if you DON'T use BIPV. I said one with solar experience, for things such as consulting on matters as crucial as the compass orientation of the building. That building better be facing the right way, with the correct panel angle if you want maximum energy production. BIPV can be seamlessly integrated into the building envelope much to the delight of architects, designers, builders and property owners. Now add into the equation that many companies have sustainability requirements, energy reduction mandates, and an appetite to market themselves with a green halo, and you have a very real market to explore. Call me Magellan.
However, there's a catch. Yes, it is more expensive than traditional building materials used for these purposes. About 20% or more, depending on customization of panel size and other factors. But, being an intelligent reader you are thinking, "Wait, these panels generate electricity and reduce the operating costs of the building by offsetting the electricity consumption, right?" Right. " They can also provide shading at the same time, thereby further reducing the internal heat gain of the space cutting down on the cooling too, right?" Right! Keep going you're doing great! "And aren't there incentives for the solar panels from the federal government?" Yes! "Isn't it an Investment Tax Credit of 30%?" Yes! Yes! "Doesn't that, plus the energy savings, and the reduction in cooling make it a very smart choice for building developers?" I couldn't be more proud.
Don't get me wrong we have quite a ways to go before these materials are commonplace. For one thing, the simple issue of architects and building designers having strong artistic tendencies. These professionals will not permit standard sized solar panel dimensions to dictate the size of their windows. No chance. Customized panels are something the solar industry is not quite ready to deliver. And if each customized panel requires a separate UL approval, then you had better break out the industrial strength migraine meds. But with all the positive impact BIPV is presenting today, and the attention it is receiving from some very serious players, I have no problem with my ten year prediction.
Michael Licata is director, business development, TM Montante Development Corp., Buffalo, NY