The Energy Show

How Do Solar Companies Find Their Customers? by Barry Cinnamon 366248

We've made great progress with renewable energy -- but from an almost zero base we still have a long way to go. Fortunately, the path is clear. California is already over 12% with a combination of hydroelectric, wind and solar (unfortunately not much hydro this year). Getting to 50% only requires the deployment of existing technology. But can we get to 100%? It depends on whom you ask. Our society has made these transitions before, with new energy technologies disrupting the incumbents. 200 years ago 95% of our energy came from wood; by 1900 it was 50% coal; and by 2000 it was a mix of coal, nuclear, oil and gas. The Union of Concerned Scientists have published a plan for renewable energy to provide 80% of our electricity by 2050. Why stop there? Solar enthusiasts like me want to go for 100%. This goal is possible: there is a recent Stanford paper entitled “100% Wind, Water, Sunlight (WWS) All Sector Energy Plan for the 50 U.S. States.” This plan is surprisingly realistic when one considers the rapid rate of solar deployment coupled with storage and new energy control technologies such as demand response and dynamic energy pricing. Costs are not the problem because these these technologies are being deployed now. The real issue is political will -- and incumbent energy supplier resistance. Listen up to this weeks Solar Energy Show as we talk about the practical steps we need to take to get to a society powered 100% by renewable energy.

Electric vehicles are great: they’re affordable, great for the environment and low maintenance. And where electric rates are low — or if you have rooftop solar power -- EVs are cheaper to drive per mile than gas-powered cars. But you have to think about how you will charge your EV: there are only a few thousand public charging locations in the U.S. — compared to 100,000 gas stations. When you buy an EV it comes with a 120 volt charger that you can plug into just about any outlet. These 120 volt chargers are convenient, but can take awhile to completely charge your battery — about 12 hours for a Chevy Volt, 17 hours for a Nissan Leaf and 59 hours for a Tesla. So if you drive a lot you will definitely need a higher capacity charger, either at home or at work. There are three choices for EV chargers: Level 1 chargers (120 volts), Level 2 chargers (240 volts) and Level 3 chargers (480 volts). Level 1 chargers are cheap and work just about everywhere, whereas Level 3 chargers are fast, but expensive and only work on certain EVs. Level 2 chargers are probably your best bet for home charging, but generally still require an electrician (and possibly utility permission) to install. Please Listen Up to this week’s Solar Energy Show for the limitations and practical advice about charging up your electric vehicle.

It’s the environmentalist’s third rail question: “Should we promote nuclear power as an expedient way to reduce CO2 emissions?” On the one hand, nuclear power generates electricity with almost negligible CO2 emissions — potentially a good way for our society to reverse the current global warming trends. On the other hand, nuclear power is…well…nuclear. Problems related to waste disposal, proliferation and high costs have not been solved, and we still have the occasional disaster. Nuclear technology continues to improve. Today we have more efficient reactors, lower cost modular designs, safer fuel cycles, better materials and control systems, and a heightened awareness of reliability and safety issues. We also have a determined and well-funded nuclear industry pushing the “restart” button. But alternative sources of electricity — particularly solar and wind — also continue to improve. Moreover, developments in more cost-effective storage are starting to negate nuclear’s biggest base load generating benefits. The nuclear question is not only about costs and technology, it’s also about anticipated trends in our electrical distribution system — particularly what types of companies will be around a dozen years from now installing power plants of all sizes. The surging solar industry is probably the biggest long term threat to a nuclear renaissance. Please listen to this week’s Energy Show for my perspective on the future of nuclear power, especially in light of practical and cost-effective solar power and battery storage.

Most of my rooftop solar customers express a preference for buying "Made in the U.S.A.” solar panels. And they were willing to pay a premium for domestically manufactured panels. But because there were very few U.S. manufacturers -- and hundreds of overseas companies manufacturing panels at lower prices -- the prices for U.S. made panels were always significantly higher. For a variety of reasons, the price gap between U.S. made solar panels and overseas made solar panels has been narrowing. Tariffs on certain manufacturers has been a factor; unfortunately, these tariffs have been one of the most contentious and divisive issues in the solar industry over the past three years. But a bigger factor has been the gradual resurgence of U.S. manufacturing of all types — capitalizing on automation, low overhead operations and shorter supply chains. My guest on this week’s Solar Energy Show is Mamun Rashid, Chief Operating Officer of Auxin Solar. Auxin began contract manufacturing of solar panels in the U.S. in 2008, and now they are finding success with their own brand of crystalline panels. Please Listen Up as Mamun explains how a California-based company can compete on both quality and price with overseas manufacturing by keeping their overhead low and leveraging the latest in automated production equipment. Full disclosure, we use Auxin solar panels at Cinnamon Solar for many of our projects, and have successfully partnered with them for Spice Solar integrated racking.

I bet you don’t know that there is a home improvement investment that you can make that will increase the value of your house more than the investment cost. It’s not remodeling your bathroom (2% return). It’s not landscaping with a designer (break even). It’s not remodeling your kitchen (2% loss). It’s rooftop solar (43% return). Surprise! A recent study by Lawrence Berkeley Labs clearly shows that your home's value will increase much more than a rooftop system costs. “Selling into the Sun: Price Premium Analysis of a Multi-State Dataset of Solar Homes” found that a home’s value will increase based on the size of the rooftop solar system at the rate of $4/watt. So for a typical 5,000 watt system that costs $14,000 after the 30% Investment Tax Credit, a home’s value would go up by $20,000. This is a big deal for anyone considering solar as an investment. But there is one catch: that $4/watt increase in value only applies if the system is owned by the homeowner (unsecured and secured loans, as well as PACE loans, also apply). However, if there is a third party who owns the system (the case with leases and PPAs), the $4/watt valuation metric does not apply. Whether new home buyers want solar because of its “green cachet,” monthly energy savings, environmental benefits, or just poking their local utility in the eye — it is now clear that rooftop solar is a good home investment. So please Listen Up to this week’s Solar Energy Show for more about LBL’s groundbreaking solar real estate study.

For a homeowner, it’s a simple question. But in order to answer the question accurately, solar installers need to make a number of assumptions -- as well as gather some pretty detailed information from a homeowner. Often, by the time these data gathering questions are answered, the homeowner is even more confused. The ideal system size that a homeowner really needs is bounded by two parameters. First, the number of panels that will physically fit on the roof -- taking into account applicable setbacks, wiring issues, shading, structural requirements and aesthetics. And second, the size of the current (or projected) electric bill (only the utility will benefit if the resulting electric bill is negative). Naturally, a third parameter — the homeowner’s budget — is almost always a factor. Of course, a lot of number crunching goes on behind the scenes as a good installer determines the energy output, annual savings, and financing options for the customer. And tradeoffs are usually offered between higher efficiency/more expensive panels and inverters, and lower efficiency more affordable equipment. Please Listen Up to this week's Solar Energy Show as we go through a simple three step process to determine how many solar panels a homeowner needs: first, determine how many panels fit on the roof; second, determine how many panels it will take to zero out the electric bill; and third, find a trustworthy solar contractor with fair pricing.

Every residential solar contractor's website talks about their experience, knowledge of rooftop solar products, and happy customers (full disclosure: including mine). Although many states have licensing requirements for contractors, some of these requirements are not specific to rooftop solar work. So how can you find out if a solar contractor really has the right training for the surgery necessary on your roof? To address this training and certification need, the North American Board of Certified Energy Practioners, or NABCEP, was founded in 2002. Since then they have certified thousands of solar PV and solar thermal installers, as well as solar PV salespeople. In order to become certified, a solar installer or salesperson must document the experience they have, and then must pass a rigorous examination specific to their certification category. As a result of these requirements -- and the reputation that NABCEP has built over the past dozen years -- NABCEP Certification is now considered the "gold standard" for solar training. My guest on this week's Energy Show on Renewable Energy World is Richard Lawrence, Executive Director of NABCEP. With the rapid growth in the U.S. solar industry, Richard has been quite busy keeping up with the training needs that individuals and companies require -- and homeowners often demand. Please Listen Up as Richard explains how new entrants into the solar industry can become certified by NABCEP, and how NABCEP is keeping up with new solar technologies, building codes and safety requirements.

Solar panels have been on the market in the U.S. for over 25 years. Without exception, all of the manufacturers of panels on the market today tout their reliability, quality and long term durability. Nevertheless, on a per watt basis, these panels generate almost exactly the same amount of energy over a 25 year period. Manufacturers conduct reliability tests, certify their panels, and conduct bankability studies. But even with these tests, industry experts cannot distinguish significant long term performance differences among solar panels. Being among the Top Ten worldwide manufacturers should imply a certain degree of stability and bankability. Surprisingly, looking back to 2001, fewer than 50% of the Top Ten manufacturers are still in business. To an ordinary consumer, distinguishing among different solar panels is almost impossible, and the mumbo-jumbo language that solar salespeople use just confuses consumers more. On this week's Energy Show we take a consumer's perspective regarding their choices among different solar panels. Listen Up to hear Barry's advice to homeowners on selecting solar panels for their rooftop installation.

If you live in a location with high electric rates and local incentives, it's very likely that the economics for a rooftop solar system are favorable. But many people don't have the $20-25k cash that these systems typically cost. Fortunately, over the past few years a range of new residential solar financing options have been developed. These new financing options have spurred the growth of rooftop solar throughout the U.S. In addition to a cash purchase, solar financing options also include a home equity loan (secured) or ordinary bank loan (unsecured), lease or Power Purchase Agreement (PPA), and Property Assessed Clean Energy (PACE) loan. Although the details of these financing options can get pretty complex, with some "back of the envelope" calculations you can figure out the economics for yourself. First, add up your total electric bill for the next 25 years, then subtract out the cost of the system (either up-front cost or periodic payments) to get the total lifetime benefit of the system. You will also need to consider what happens when you sell your house, and any special contractual terms (such as escalation rates or warranty provisions). Because most solar equipment is reliable and guaranteed for 25 years, maintenance (except periodic washing) is usually not an issue. In general, up-front cash purchases offer the best Return on Investment (ROI). Home equity loans (now that the real estate market has recovered) and PACE loans (if they are available in your location) offer the next best ROI option. Lease/PPA purchases are a great "no money down" alternative if you don't have available cash or don't qualify for a bank loan. Listen up to this week's Energy Show for a practical and candid overview of your residential solar financing options.

Homes are billed for electricity based on the amount of energy they consume (measured in kwh). But commercial facilities often get an additional charge for the peak amount of power they consume during each month (measured in kw). These demand charges are designed to compensate the utility for the peak generating capacity that they must provide when large motors, air conditioners and other commercial processes are started up (power draw from motors is highest when the motors start). For example, a medium commercial customer may pay a demand charge of $20 per kw based on the peak usage in any given 15 minute period during a month. So if they had several large industrial processes start while their air conditioning and lighting was also operating, they could experience a peak power draw of 200 kw -- and they would be billed for a $4,000 demand charge that month. These demand charges can be dramatically reduced if large equipment is not started within the same 15 minute time period, and if other loads (such as air conditioning and EV charging) are temporarily shed (turned off). Demand charges can also be reduced if there is battery storage that can be quickly activated so that the spike of power is provided locally (by the customer's batteries) -- instead of by the utility. Surprisingly, the fastest growing market for battery storage systems is for applications that reduce demand charges or provide other grid power support -- NOT to store daytime solar energy for night time use. My guest on this week's Energy Show is Vic Shao, CEO of Green Charge Networks. They have developed software and control systems that sense when demand charges are reaching a peak (by measuring current draw on large circuits), and then activate a battery storage system to provide an alternative source of power so that the extra kw demand is not supplied (and billed) by the utility. Please Listen Up as Vic explains how commercial customers can reduce their electricity costs by combining battery storage and control systems to reduce demand charges.

It's getting to be that time of the year again -- tax time, that is. As all new rooftop solar homeowners should know who purchased a system in 2014, they are eligible for a Federal Investment Tax Credit of 30% of the cost of their system. This tax credit is good for both solar PV and solar thermal (hot water) systems. The solar ITC applies to the owner of the system, which is the homeowner for purchased systems or the leasing/PPA company for systems that are owned by third parties. The solar ITC is arguably the most important incentive to solar customers, but it goes to zero on January 1, 2017. Claiming the credit on your tax return is surprisingly easy. All you need is the complete set of invoices from your installer that summarizes your qualified costs for your system -- then you can reduce your 2014 tax bill by 30% of those total costs. For example, if your purchase price for the system installed in 2014 was $20,000, you get to reduce your 2014 tax bill by $6,000. So Listen Up to this week's Energy Show on Renewable Energy World as we go over the rules that apply to this tax credit, and fill out IRS Form #5695. And finally, although solar guys like me understand the basics of the 30% Solar ITC, please remember to get advice from your tax professional before filing.

The worldwide demand for energy is almost inexhaustible. Couple that demand with the need for clean energy -- and energy we can afford -- and the picture gets a lot more complicated. Fortunately, good market research helps us to get some perspective of the potential for PV to meet these energy demands. There are two types of market research available in the solar industry: primary research and secondary research. Secondary market research related to the solar industry is relatively easy to find on the internet. This information is based on studies that were conducted by industry groups, government agencies, or extracted from other publicly available sources. This secondary information is often generalized and not targeted towards addressing a specific business need. On the other hand, primary market research studies are more specific, particularly useful in the solar industry to answer a specific question. For example, one can find secondary research on the percentage of homeowners who lease a rooftop system as opposed to buy a system. But it takes a more specific series of questions -- often as part of a survey or focus group -- to determine how satisfied homeowners are with their lease or purchase of a solar system. Paula Mints has specialized in primary research in the solar industry since 1997 -- most recently as the Chief Market Research Analyst with SPV Market Research. Please join me on this week's Energy Show on Renewable Energy World as Paula talks about her experiences in the "solar coaster," and talks about some primary market research insights that come directly from manufacturers, developers, installers and customers.

With energy prices changing so quickly -- and new technologies ramping up into the marketplace -- the "conventional wisdom" about energy is often wrong. I've been as guilty as other people when it comes to trusting emotions and public opinion about energy, as opposed to real math and science. See if you can guess the answer to these ten simple questions: Are electric cars cheaper than gas cars? Is rooftop solar expensive? Will you save money if you buy new energy saving appliances? Will gas prices stay low? Is solar for no money down a good investment? Are LED bulbs expensive? Do electric utilities like customer energy efficiency? Is clean coal cost effective? Is nuclear power the best baseload power source? Has energy efficiency reduced our per capita energy usage? If you answered "yes" to ANY of these questions, I suggest you listen up to this week's Energy Show. The conventional wisdom is wrong -- and all of these energy saving ideas are myths.

When someone gets a new rooftop solar installation, the second question they always ask is "how often do I need to clean my solar panels." We'll answer that question on today's show -- taking into account the different effects of rain, dust and electric rates (BTW, the first question people always ask is "how do I read my electric bill;" but that's a topic for another show). Rooftop solar panels get dirty primarily from wind-blown dust and pollen. Birds are usually not a problem unless your last name is Hitchcock and you live in Bodega Bay. As panels get dirtier, their output declines. A small amount of soiling -- say a light dusty film -- may only cause a 5% output decline. However, when panels get very dirty -- perhaps in an agricultural area or location that does not get regular rainfall -- the output decline can be greater than 20%. A good heavy rainstorm will usually wash away most of the accumulated soiling. I use the term "usually" because on panels that are tilted at about 5 degrees or less, the rain may leave a puddle of muddy debris along the lower edge of the panel. When this puddle dries, sometimes a thick layer of dirt accumulates along the lower row of cells (sometimes moss and weeds may even grow in these areas). Depending on the design of the system, this small accumulation of dirt can cause a very significant decrease in output. So the answer to the question: "how often should I clean my solar panels" really depends on five factors: your location (does it rain regularly or only during certain months), the tilt angle of your panels (steeply tilted panels tend to stay much cleaner than panels that are close to horizontal), the amount of wind blown dust, your electric rate (if your electric rate is high then it is more worthwhile to clean your panels), and the cost to clean your panels. Please listen to this week's Energy Show on Renewable Energy World to get a better understand of how often -- if ever -- you need to clean your rooftop solar panels.