THE POWER OF SUN
hospital alliance aims to control care costs
As energy prices climb, the solar industry is propelled by incentives By Evan Marczynski evan@bbjtoday.com olar-power systems have been seen as the future of alternative energy for decades. But price tags on solar panels—which can range from $30,000 to more than $90,000 for a building array—have often left them in the exclusive domain of property owners with plenty of spare cash. Yet in Whatcom County, with state and federal incentives, lowinterest loans and other initiatives, local proponents, manufacturers and installers are starting to say going solar can be affordable for just about anyone. “You don’t even need to worry about whether it’s good for the environment or not,” said Alex Ramel, a policy and energy manager with the nonprofit Sustainable Connections. “It’s just a good financial decision.” Along with the rosier economic outlook, nationwide solar production is growing. In 1990, there were 19 U.S. companies making solar panels—but by 2009, there were 101, according to the U.S. Energy Information Administration. In Washington state, government officials and lawmakers plan a new push for clean energy jobs and the use of renewable power sources, according to the Department of Commerce’s 2012 State Energy Strategy. By initially focusing on the state’s transportation sector, commerce officials hope to cut statewide spending on energy, which when adjusted for inflation has increased 70 percent over the past two decades. Washington spends more than $20 billion annually on energy, according to the commerce
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The Bellingham Business Journal
September 2012
BBJToday
Q&A | ALEX RAMEL, P.10
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With new partner, PeaceHealth adjusts to changes in the health care world By Evan Marczynski evan@bbjtoday.com
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Adam Butler, lead carpenter at Chuckanut Builders, measures a piece of metal siding for a roof-access hatch next to the solar installation (right) at the City Gate Apartments in Bellingham. EVAN MARCZYNSKI PHOTOS
department, most of which is sent out-of-state to pay for power generated from fossil fuels. In recent years, state lawmakers have initiated a series of incentives for residents to use renewable energy sources such as solar, wind and anaerobic digesters. When it comes to the incentives, solar users have a slew to pick from.
For one, the Washington State Department of Revenue offers a complete exemption on salesand-use taxes for equipment and labor needed to install solar systems that produce 10 kilowatts of power or less. It offers a 75 percent exemption for larger systems. On the federal level, part of the 2009 stimulus package included a 30 percent tax credit for owners
of solar panel installations. With panel installs requiring large chunks of money upfront, having the ability to recoup an initial investment is key to making solar financially viable, said Joshua Miller, manager of Western Solar Inc., a Bellinghambased solar installer. “To make the economics of solar pencil out, you really need to take advantage of the incentives,” he said. Miller said solar-panel installations have grown in Whatcom County over the past couple of years, in part from financial incentives, but also due to wordof-mouth popularity. He added that Western Solar encourages building owners to make other energy-efficient retrofits before
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s details fell into place in an agreement that would create a new health care system spanning the Pacific Northwest, executives from both organizations said it is clear their industry is transforming. “Health care economics aren’t sustainable in their current forms,” said John DiCola, Catholic Health Initiatives’ senior vice president of strategy and business development, of his organization’s agreement with PeaceHealth. “I think provider systems have recognized that they need to change.” The two nonprofit, Catholic systems signed a nonbinding letter of intent in August to form the new system by June 2013. Both hope the effort would cut costs with an approach to medical care that DiCola said would empha-
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