Guest column

Now is the time for Houstonians to invest in solar energy, says expert

With stay-at-home mandates across the state, renewable energy helps reduce the strain of the grid. Photo courtesy of Freedom Solar

Largely due to the growing popularity and falling prices of solar energy in Texas, including incentives at the federal, state, and local level, the number of solar panel installations continues to trend upward throughout the state and especially in Houston.

For the third year in a row, Houston was named the top municipal user of green energy in the nation by the United States EPA, using more than 1 billion kilowatt hours (kWh) of solar and wind power. With 92 percent of the city of Houston's energy coming from green power, solar has solidified its place in the Houston energy market.

With solar panel system prices dropping 38 percent over the past five years, solar power is also growing in popularity among individual homeowners and business owners who want to take control of their energy costs and become more self-sufficient.

As the recent COVID-19 pandemic continues to shake industries across the nation, Freedom Solar is working tirelessly to keep our team safe, healthy, and employed. Solar installers provide critical electric generation infrastructure that helps us reduce the strain on the ERCOT grid, especially with higher electricity usage as people stay at home under local shelter in place orders and as we head into the warmer spring and summer months.

The health and safety of our customers and employees is our top priority, and as an essential business we are following strict operating protocols that are in line with the guidance provided by local, state, and federal authorities. Although these challenging times often result in a pause in investments, I argue that for customers who have been considering investing in solar, now is still the time to do so.

During these tumultuous times, for many home and business owners, investing in solar energy remains appealing as a smart and stable financial decision. A solar power system is an income-producing asset that will generate a stable return for 25 or more years. The ability to finance that investment without putting cash down upfront allows customers to get the financial benefits of solar now while keeping their money in the securities markets until they recover from the current economic downturn.

Due to the COVID-19 pandemic, overseas manufacturing has been disrupted for months, resulting in shortages in the global supply chain across many industries. These shortages could increase the price of solar panels, inverters and related equipment if US warehouses run low on inventory. For customers who have long been on the fence about investing in solar, I would urge them to reevaluate the numbers now in anticipation of potential price increases in the coming months in the wake of COVID-19.

Additional macro trends and current events continue to demonstrate the value of home solar power. According to a 2020 study by the financial institution Fundera, the number of regular telecommuting employees has grown by 115% since 2005. As more and more people are required to work remotely, especially during the current and indefinite "Stay in Place" orders, electricity usage and utilities have inevitably increased for many households.

Investing in solar for your home can help offset increased utility costs, especially while working remotely and in the rapidly approaching summer months. Current events may be accelerating the long-term trend, and even when the immediate crisis is over, the way many people work could be transformed.

As the energy industry continues to evolve, the reasons why Houston customers choose to invest in solar power evolve and grow. Going solar is no longer solely a testament to your sustainability practices but also a sound long-term investment. The federal solar tax credit — also known as the investment tax credit (ITC) — allows homeowners and businesses to deduct a significant percentage of the cost of installing solar from their federal income taxes.

The credit remains at 26 percent for the remainder of 2020 but will decrease to 22 percent in 2021 and then in 2022 will drop to 10 percent for businesses and will go away entirely for homeowners. With more than 90 percent of Houston's energy consumption deriving from green power, it is clear that solar is here to stay.

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Bret Biggart is the CEO of Texas-based Freedom Solar.

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Building Houston

 
 

Adrianne Stone has joined Capital Factory's Houston operations as the company prioritizes digital startup interaction. Photo courtesy of Capital Factory

For years, Capital Factory has existed to promote innovation and grow startups across Texas and has expanded from its headquarters in Austin to Dallas, Houston, and beyond. In light of COVID-19, the organization has pivoted to make sure it can work with startups remotely and online.

"I think Capital Factory has successfully embraced virtual first," says Bryan Chambers, vice president of the accelerator and fund at Capital Factory. "I think it's gone well and it feels like we're just hitting our stride."

Chambers admits that the onset of the coronavirus had a great effect on Capital Factory — SXSW being canceled did its damage on the organization, which has a huge presence every year. However, cross-state startup collaboration is the driving force behind Capital Factory's Texas Manifesto.

"We're one big state, and we're one big startup ecosystem," Chambers says. "The resources across Dallas, Houston, Austin, North Texas, and San Antonio are available for everybody. Candidly, COVID aligns with that. There's no better time — COVID is erasing the boundaries in a virtual world."

In addition to navigating the transition to virtual operations, Capital Factory has also introduced its newest Houston staff member, as Adrianne Stone has started this week as venture associate for the organization. Stone received her Ph.D in Translational Biology and Molecular Medicine from Baylor College of Medicine before heading out to the West Coast and working at 23andme. She brings both her experience with health tech and Silicon Valley to her position.

"The mindset in Silicon Valley is different from how it is here in Texas — in good ways and bad ways. It was interesting to be exposed to a very potent startup vibe," Stone tells InnovationMap. "I'm looking forward to being able to meet all the cool companies, founders, and investors we have here in the Houston area."

Stone replaces Brittany Barreto, who helped in coordinating her replacement and is staying on part-time for the rest of August to help with training and immersion into the ecosystem. Barreto, who is one of the founders of the recently launched startup masterclass Founder's Compass, has also introduced a new brand called Femtech Focus, that includes a podcast where she talks to innovators in the women's health and wellness space.

"I'm ready to get back into the founder's saddle," Barreto says, adding that there's more to come for Femtech Focus.

Throughout her tenure, Barreto has overseen Capital Factory's Houston portfolio companies — both identifying potential investment opportunities and connecting startups to resources and mentors. She passes the torch to her former BCM classmate, and says she's excited to do so to a fellow Ph.D.

"The last year and a half, I've working really hard on laying this foundation. I don't want all that hard work to go away, so I cared a lot about who was going to take my position," she says. "I wanted to make sure that all my founders had someone who cared about them as much as I do."

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