In Santa Cruz County, green companies are poised for growth


Dec 22 - McClatchy-Tribune Regional News - Jondi Gumz Santa Cruz Sentinel, Calif.


Green jobs, which represent a sliver of employment in California, offer the potential for building a more sustainable economy, according to a new report from Next 10, an independent Silicon Valley think tank.

The report considers Santa Cruz County as part of the San Francisco Bay Area, which had 41,674 green jobs in 2008, a 51 percent increase since 1995.

Statewide, 159,000 green jobs were counted in 15 categories ranging from environmental consulting services and solar energy installations to electric vehicles and research into alternative fuels. They comprise not quite 1 percent of the state's 18 million jobs in 2008.

Next 10 founder F. Noel Perry noted green jobs grew 5 percent from 2007 to 2008 as the recession set in, while overall jobs shrank 1 percent.

Dean Chuang of Collaborative Economics of Mountain View, which prepared the report, singled out four green companies in Santa Cruz County. All are small. Only one was in existence in 1995. Not all have been immune from the downturn.

Electro Automotive

Electro Automotive touts itself as the oldest supplier of electric vehicle components. It was founded in 1979 by Michael Brown and Roger Denault, who later sold his interest and moved into solar energy. Shari Prange, Brown's wife, has been a partner since 1983.

The company arranges with specialty subcontract fabricators to make the components and has grown from four to eight employees.

"We see the

market expanding in 2010," said company spokesman Bill Lentfer.

The company plans a seminar on battery technology Jan. 30 at the University Inn and Conference Center in Santa Cruz. Cost is $100.

A six-day workshop is planned in the spring or summer to guide students through the process of converting a vehicle to electric power. The cost is $1,250. Lentfer is looking for Volkswagen Rabbit sedan or convertible model years 1981 to 1984 or 1983 to 1985 Cabriolet for the workshop. Donors will get an $8,000 installation for free.

Real Goods Solar

Real Goods Solar, which started as Independent Energy Systems in 2001, expanded to 25 employees during the boom. At the end of 2008, the recession was declared, and the employee count dropped by about five.

"Investing in solar is an investment that starts paying you back the minute your system is installed," said accounting specialist Roseanne Prevost-Morgan. "It's not like remodeling your kitchen and putting in new windows, which doesn't pay back immediately."

Many people have asked about a solar initiative under review by the city and the county. Local officials have been seeking state and federal grants to fund start-up expenses and lower the interest rate on loans to buy a solar system that could cost $25,000.

Santa Cruz Community Credit Union has had no takers for 9 percent loans for solar energy systems at homes and rental properties.

Allterra Environmental

Founded in 2004 by brothers James and Nathaniel Allen, Allterra Environmental focused on remediation of contaminated groundwater sites. It manages 15 sites from San Jose to Livermore and Nevada City, including the former Beach City Gas on Ocean Street in Santa Cruz.

Now it's expanding into installation of solar, water and sustainable landscape systems, creating potential to grow from seven employees to 12 to 15 employees.

Allterra's chief financial officer, Micah Breeden, acknowledges the upfront costs of solar energy are a challenge.

"We're waiting for people to come around and realize they have to do this," he said, predicting "2010 will see some growth, but the big leap is still a few years out."

LED Green Power

Electrical contractor Tom McClellan founded LED Green Power in 2005 to take advantage of new technology to reduce the overall cost of lighting.

LED advocates point out that LED lights conserve energy but initial costs are higher. LED bulbs for the home can cost $11 to $95 each, but last up to 50,000 hours compared to an incandescent bulb that lasts 1,000 hours and costs $1.50.

"As volume picks up, the cost is expected to drop," said John Regan, chairman of the board, noting users will get a return on investment in nine months to three years compared to nine years with solar power.

LED Green Power, which has five employees, has sales of less than $500,000.

"The likelihood is next year we will be hiring," Regan said.

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