Corporate awareness of sustainable-development issues, combined with government action, has caused a spike in recent public and private commitments to renewable-energy, says an energy industry consultant.

Looking Up. Solar photovoltaic panels are most economical when built into new houses.(Photo courtesy of Powerlight Corp.)

A $3.2-billion California state program to promote solar energy and a Fortune 500 company’s commitment to use wind energy for all of its electricity demand are among the most prominent examples of a trend to an energy type once seen as a pricey boutique alternative to the local gas-turbine powerplant.

On Jan. 12, the California Public Utilities Commission adopted the California Solar Initiative, a program that will raise $3.2 billion by 2017 for incentives for builders to install 3,000 MW of solar energy—6% of the state’s peak demand. A surcharge on investor-owned utility bills will allow customers who install photovoltaic panels to get a rebate of $2.80 per watt. CPUC plans to reduce the rebate an average of about 10% annually. The agency will set incentive levels for solar thermal electric projects and solar heating and cooling in 2006.

Natural-foods retailer Whole Foods Market, Deerfield, Ill., claims to be the first big company to buy wind-energy credits for all of its electricity demand in the U.S. and Canada. Whole Foods is purchasing more than 458 million kilowatt-hours of credits. “The credit system is a guarantee that wind producers will put wind-energy power onto the grid to replace the energy that Whole Foods uses,” explains Quayle Hodek, CEO of Boulder, Colo.-based Renewable Choice Energy, Whole Foods’ energy credit supplier.

The declining price differential between green energy and conventional power is one factor behind the growing interest in wind energy, says Hodek. A typical residential customer pays between 8¢ and 10¢ per kWh for electricity generated from conventional fuel sources. Wind tax credits add only about 2¢ per kWh, he says. He would not provide the specifics of the deal with Whole Foods.

Some construction and design firms also are making the switch to green power. On Jan. 1, architecture, interiors and planning firm Perkins & Will, began purchasing wind energy credits to supply all 18 of its North American office locations. The firm uses about 800,000 kWh per quarter and management expects to pay about a 10% premium for green power, according to Atlanta-based Phil Harrison, CEO.

In October, engineering firm David Evans and Associates Inc., Portland, Ore., launched itself on a phased path to 100% use of renewable-energy credits by 2009, for a total purchase of 7 million kWh annually for its 19 offices, all in western states. In 2002, DEA defined its core purpose as improving the quality of life while demonstrating stewardship of the built and natural environments. “We needed to walk the talk,” says Tanya Boyer, marketing director.

For the U.S. Army in Hawaii, Memphis-based developer Actus Lend Lease is building what it says will be the world’s largest residential solar-powered community in Oahu. Seven MW of photovoltaic panels integrated into the roofs of the development’s 8,000 homes will feed an autonomous “micro grid” and generate about 30% of electricity needs, says Chris Sherwood, Actus Lend Lease executive vice president for development. Actus’ $2.2-billion contract includes building, owning and operating the community for 50 years.

“A lot of companies are trying to make their operations environmentally friendly and adopt sustainable principles,” says Philip Mihlman, senior vice president of ICF Consulting, Fairfax, Va. Supporting the trend, the Energy Policy Act of 2005 extended wind energy’s production tax credit through 2007 and 18 states have adopted renewable-portfolio standards requiring their load-serving utilities to meet demand with a specified percentage of renewable energy. Acknowledging that there has been “a spurt of activity” in renewable energy recently, he adds, “We do see additional penetration of renewables” in the future.