YoloShines: Repowering community organizations

When we conceived RepowerYolo, we made two conscious commitments:

1. We will not solicit homeowners. No advertising, cold calls, direct mail or commission sales people.

2. We will reinvest in and support local nonprofit organizations; in other words (excuse the trite phase), repower our community.

The obvious residue of not knocking on doors, cold-calling homeowners, or peppering mail boxes with sales collateral is that we will sell less solar. We can live with that, because we strongly believe markets are conversations and nobody likes to be solicited (sans their permission). And, by eliminating sales/marketing/advertising costs, we significantly reduce the cost of going solar for friends and neighbors.

Furthermore, many an eye has been rolled at our community fundraising efforts: Why are you donating large amounts of money to nonprofits (when you could/should be pocketing the money to send your kids to college)? In simple terms, we believe RepowerYolo is a community program and our commitment to — and support of — local nonprofit organizations is a community dividend.

This community dividend is growing. To date, we have donated upwards of $23,000 to more than 25 local causes on behalf of RepowerYolo homeowners. And, in 2016, we created YoloShines: Every time a homeowner goes solar, we donate $500 in their name to their favorite Yolo County nonprofit.

The first four recipients of YoloShines donations in 2016 are Progress Ranch, Yolo Crisis Nursery, Davis Schools Foundation, and River City Rowing Club. 2016 is off to a great start … the future is bright for both homeowners who go solar and nonprofit organizations that stitch the fabric of our community.

Community Choice Energy: Coming to Yolo County?

I’ve had the — sometimes frustrating, but ultimately rewarding — pleasure of working with a team of Davis residents to evaluate Community Choice Energy (CCE) for the city and county. Over the past year, our Community Choice Energy Advisory Committee has taken a deep dive into CCE: Does it make sense for our community and, if so, what’s the best approach? Last night we had a productive discussion with the Davis Chamber of Commerce's Government Relations Committee, and our committee is nearing a recommendation to the City Council.

In simple terms, CCE provides PG&E ratepayers with a second option for their electricity source. Competition — providing customers with options — is, of course, good for a market, particularly when the sole provider is a regulated, investor-owned monopoly. Under CCE programs, PG&E continues to manage the grid and deliver customer service. Status quo. Except, CCE (it’s happening in Marin and Sonoma Counties) reduces electricity costs for ratepayers while delivering cleaner energy.

CCE is not a slam dunk, here or elsewhere. Utilities will continue to fight to protect their entrenched monopolies. Ultimately, consumer choice is good … let the market work. And, if we can develop additional renewable energy resources locally (and keep the dollars here, versus filling PG&E’s pockets), our local economy will benefit.

You can learn more about the City’s CCE assessment here.

And, on Feb. 11 (6:30 at the Vet’s) we are facilitating a public forum to elaborate CCE and engage community input. Please join.

Or, of course, feel free to give us a call if you'd like to learn more.

Lions and tigers and bears, oh solar!

Over the past month or so, three regulatory and financial developments have strengthened the investment viability for homeowners who go solar. I love lions, tigers and bears ... let's review the three solar life springs.

1. The 30% Federal Investment Tax Credit was, surprisingly, extended for four years. Originally set to expire at the end of 2016, the tax credit was extended thanks to a bit of horse-trading between  Dems and Republicans in Congress. Via the Omnibus spending bill, Republicans were granted removal of the 40-year ban on exportation of domestic oil. Democrats received an extension of the solar tax credit. An all-of-the-above energy approach? Yes, but to the benefit of homeowners who repower with solar.

2. Today, the California Public Utilities Commission extended solar net-metering for PG&E (and the other two investor-owned utilities') ratepayers. This comes on the heels of the PUC grandfathering -- for 20 years -- net-metering for existing solar customers. Big deal? Yes. It is a continuation of compensating PG&E solar customers at the full retail rate. Doesn't get better. Here's a good overview of the PUC's decision.

3. Commencing January 1, 2016, PG&E raised residential electricity rates 8.7%. Across the board. Predictable but painful (for homeowners who do not have solar). But, higher rates increase the avoided cost -- what you would pay PG&E -- for solar homeowners, thus boosting their investment returns.

Importantly, extensions of the tax credit and net-metering programs temper the urgency to go solar. Homeowners we work with obviously want to monetize the tax credit and receive full value for their solar-generated electricity. They're locked. That said, the primary urgency in their decision is twofold: Do the right thing (for environmental reasons) and stop paying PG&E.

Please contact us if you would like to elaborate any or all of the above. Quite a trifecta in the solar world, and a great month for Yolo County homeowners.

Sacramento Business Journal profiles Chris Soderquist

[Originally published September 9, 2015]

THE GREAT Ed Goldman -- one of our favorite, iconic regional treasures -- recently sat down with Repower Cofounder Chris Soderquist. Here's his story:

Ed Goldman: Chris Soderquist’s newest (ad)venture: Sharing the sunshine

When scientists get around to studying the biological basis of entrepreneurship, Chris Soderquist will make a splendid case study: He seems to prove that it runs in families.

At 46, Soderquist is a former venture capitalist and a serial entrepreneur. He calculates he’s created “about a dozen” businesses and has been an investor or board member of “another 30 or so.” Restlessly intelligent (maybe even antsy), he appears to have settled into a single company that he loves: Repower Yolo, a Davis-based solar energy firm that in the past year-and-a-half has installed “more than 2,500 solar panels on 60 homes and 10 commercial projects,” he says, adding, “all in Yolo County.”

Soderquist is pursuing the venture with business partner and operations manager John Walter. Repower Yolo doesn't install solar systems. Rather, “I consult with the clients and tell them what will work for them and what won’t. Sometimes I talk myself out of a sale, but that’s a small price to pay for integrity.”

There’s a circular perfection to Soderquist’s latest passion. His dad, Charles Soderquist, was also an entrepreneur and venture capitalist who started amassing his wealth building and installing solar-powered hot tubs in Davis. Soderquist the elder, who died 11 years ago of an aneurysm, was also a philanthropist: he left the bulk of his estate to UC Davis.

I had interviewed Charlie Soderquist for my Working Lunch column in Comstock’s Business Magazine two years before his passing. He was a fascinating guy and Chris reminds me of him save for one attribute: while warm and soft-spoken, the dad had a somewhat dour, dark-ish aspect to him (possibly only with columnists) whereas Chris, despite being a serious man, has a lighthearted, almost impish quality.

He’s also, like his dad, a philanthropist, who donates money from every sale to one of 18 Yolo County nonprofits. While he says the principal motivation for doing so is “helping out,” Soderquist says, “There’s a kind of a domino effect at play. If we can re-power homes” — convert them from running solely on gas and electricity, “people will save money and will have more to spend in the community. There’s a lot of sunshine out there.”

And that, he says, “is the only positive thing about climate change I can think of. The less rain, the more sunshine, the more electricity we can generate. But I’d prefer it rained.”

Soderquist and his wife Karen, a manager at a medical software company, have two sons: Scott, who’s 16, and 13-year-old Ty. Perhaps because he majored in journalism at Cal Poly San Luis Obispo — he also has an MBA from UC Davis — he elects to help out his interviewer. “I’m pretty easy to summarize,” he says. “I’m a father, a husband, a Little League coach and the son of amazing parents. I got my work ethic from my dad and my loving side from my mom.” Yes, but that sunshine is all his own.

Ed Goldman’s newest book, “And Now, With Further Ado: More Gravitas-Defying Profiles and Punditry from the Sacramento Business Journal,” is available at Amazon.com.

PG&E’s Net Energy Metering (NEM) is Wonderfully Simple

[Originally posted September 1, 2015]

PG&E’s accounting methodology for solar homeowners (aka, Net Energy Metering) is wonderfully simple. It’s the bill credit mechanism that makes solar lucrative for Yolo County homeowners. Unfortunately, many solar homeowners we speak with are caught off guard when they receive their annual “true up” bill from PG&E. In all of these cases, the homeowners have leased their solar system from a national company and said that the company's salesperson did not explain the process.

To wit, when you have solar, here’s how it works:

1. You are enrolled in PG&E’s Net Energy Metering program, and you have a 20-year contract with PG&E whereby they are required to credit you for the solar electricity you generate.

2. When you generate electricity, you are credited at the full retail price (per kilowatt hour), the same rate you pay when you use electricity.

3. As a solar homeowner, you only pay your PG&E electricity bill once a year. Every month, PG&E sends you a Net Energy Metering statement, quantifying and valuing your net electricity use. Some months, you are a net generator (you make more electricity than you use) and PG&E owes you money; conversely, there are months where you use more electricity than you generate and you owe PG&E money.

4. At the end of your 12-month solar year with PG&E, you receive an annual true-up, reconciling each month’s net electricity use. Thereby, if you were a net user, you pay PG&E; if you were a net generator, PG&E pays you.

It’s that simple. Please feel free to contact us — whether you already have solar or are considering it — if you have any questions.

One Year After Going Solar: PG&E True-Up

[Originally posted July 2, 2015]

Happy Repower homeowner Fred Lee went solar a year ago. Yesterday, he emailed us the numbers on his ROI in Solar. Here is what he wrote:

Subject: PGE True-up on our one year of solar cells

PGE has just released the "true-up" on our one year of our solar cells use. 

Last year, before installation of the solar cells, we paid PGE over $5550 for use of electricity. 

The True Up total electric use was $452.20, i.e., our total electric use cost during the past year compared to solar cell generation was a negative $452.20. Therefore we have saved about $6,000 last year as a result of solar cell generation and our reduced rate of electricity use. 

During the past year, we paid $210/month on the Yolo Federal [Credit Union] loan that enabled us to purchase the solar cells. We also saved about $11,000 in our 2014 federal tax credit due to the solar cell purchase.

Thanks for all your help in obtaining our solar cells.  

Fred

We Can Lead by Example, Right Here and Right Now, in Yolo

[Originally published June 25, 2015]

All right. Pope Francis's call for swift action on climate change got me to thinking about leadership toward sustainability. Other world leaders, too, are stepping up to the plate. But it occurred to me that there is a lot that each one of us can do to lead on the very real and mighty micro-levels of our families, neighborhoods, and communities. In other words, I realized that we don't need to be world leaders to benefit the world. But we do need to be leaders and we need to lead by our example ... right here in Yolo County.

The Most Popular Guy at the Party

I then remembered  an article I read a while back about the most popular person at a party. The writer asked, "Who do you think the most popular guy at the party is? The one telling tons of jokes? The handsomest? The richest?" No. The most popular guy at the party is the one who listens well to what others are saying...who shows a genuine interest in others. So doesn't it play out that to lead by example requires us also to be genuinely interested in others? 

The Invitation

Humans are insatiably curious about and aware of one another. They are interested in other humans. Large hotel chains experimented with signs that asked their guests to reuse their towels to help reduce water usage and wastewater output. One type of sign provided facts about water usage and towels, assuming that the facts alone were enough to compel people to change their behaviors and reuse their towels. The other type of messaging invited the guests to join all the other people who are already helping to save the environment by reusing their towels. Which type of messaging was most effective? The invitation to join the others at the party! 

Primary Reasons People Go Solar

For most, economics are the primary motivating force behind the decision to go solar. Freedom from PG&E rate hikes. Greatly reduced or Net Zero energy usage.  The fact that solar is clean and green is a great "added benefit." While the economic rationale of going solar is important, there is something more serious at stake here than mere dollars. 

What We Do and Don't Do

It's interesting that, when people see their friends and neighbors going solar, they become interested in going solar, too. What we do and don't do influences the people around us. Not doing whatever we can to mitigate climate change runs counter to the environmental and economic intelligence we need to exercise to get out of this Climate Change Pickle. 

The Biggest Yes

Yes, going solar usually a sound economic decision. And, yes, it increases the value of your home. And, yes, it frees you from PG&E's ambiguity and rate hikes. But it's bigger than all this. The biggest "yes" is that going solar feels so good because we're taking action to mitigate the damage we've done to the environment, so that Earth can begin to heal. And, by doing so, you invite others to the party. What we do has a big impact. Can you feel the (re)power?

Frequently Asked Questions About Solar

[Originally posted February 26, 2015]

How much does a solar system cost?

In the first nine months of 2013, the average per-watt cost of residential solar systems installed in Yolo County was $4.90. Through RepowerYolo’s group purchase program, you will receive the same or higher-quality system at a significant discount, generally 15-25% less than average market prices. For example, a typical home will have a 6 kW (DC) system with a turnkey investment of $24,000 (or less). Your system’s size and cost will depend on your home’s energy use and how much of your PG&E bill you would like to offset.

We are able to offer you a significant discount by aggregating the purchasing power of Yolo County residents and, frankly, by significantly reducing sales and marketing expenses (and the profit we generate).

Are PG&E’s rates going to increase?

Over the past 30 years, PG&E’s electricity rates have increased an average of 5.7%; individual years were highly unpredictable, ranging from -3% to more than 8%. PG&E recently requested, in its California Public Utilities Commission rate case, an increase of $5.33 billion in rates over the next three years. If PG&E’s request is approved, electricity rates will, on average, increase 18.8% in 2014, and 6% per year in 2015 and 2016. To be conservative, our analysis for your solar system assumes only 3% annual PG&E cost increases.

PG&E puts you in a tough position: They operate a regulated monopoly (as the only provider of electricity), and you have no say over rate increases. Your bill simply increases. However, with solar you will benefit from PG&E rate increases. Generating your own power locks in the rate you pay for the next 25 years … as PG&E increases its rates, your savings magnify.

Will solar increase the value of my home?

Yes, if you own (versus lease) your solar system. The National Bureau of Economic Research (NBER) recently released an analysis that found solar panels add between 3 percent and 4 percent to the value of a home. Their conclusion is consistent with a 2013 Lawrence Berkeley National Laboratory study that found solar panels have a “sizeable effect” on home prices.

Can I finance my solar system?

Yes. We work with a number of community banks that provide competitive financing alternatives, and we can help you obtain and assess such options. Furthermore, your home may qualify for financing through Clean Energy Yolo PACE financing program. Clean Energy Yolo funds 100% of the solar system costs, with payments collected through your property taxes over a 20-year period. If you sell your home, the benefit of the solar system (along with the responsibility to make property tax payments) transfers to the new owner.

What rebates and incentives are available?

You will receive a Federal Investment Tax Credit of 30% of your total system cost – in essence, a 30% discount (since it’s a dollar-for-dollar tax credit) incentive to go solar. The Investment Tax Credit is available through the end of 2016 and may be carried back one year or forward for 20 years.

What are the warranties?

The solar panels and power inverter have standard, 10-year warranties. The panels have a 25-year production warranty, guaranteeing power generation.

How long will my solar system last?

Most solar systems outlast their 25-year production warranties; many of the first solar systems installed more than 30 years ago are still going strong. 

Is it difficult to switch to solar power?

No. Repowering your home with solar is simple and hassle free. We will get your solar system up and running as quickly and smoothly as possible so that you can start saving money and using clean energy. You won't experience any changes or disruptions inside your home. 

What determines how well my system generates electricity?

The efficiency of generating electricity is primarily governed by the amount of light (photons) striking your solar panels. Panels facing south and tilted at an angle equal to your latitude yield the best yields. Shade from trees, other obstructions, or even clouds reduce – but do not eliminate – electricity generation. Other factors influencing generation are related to the efficiency of panels, the inverter, and the quality of the installation (wiring, connections, heat-reducing construction). Optimally oriented, high quality, stationary panels and inverters installed with best practices convert 13-18% of sunlight into electricity.

How do I benefit from electricity generated but not used immediately, and do I need batteries?

PG&E’s grid acts as your battery. When you produce more than you use, you generate credits that are applied against what you use. You only pay for the power you use.

What happens when it’s cloudy, raining or at night?

Under PG&E’s Net Energy Metering program, you receive a credit for every kilowatt hour of electricity your solar system generates. You will maintain connection to PG&E’s grid and will thus continue to draw power from PG&E (regardless of whether your solar system is generating electricity).

How long does it take to install my solar system?

From start to finish, the process will take less than one month – our goal is to get your system up and running as quickly as possible. The length of installation depends on the complexity of your roof, the permitting process, and PG&E interconnection.

How am I credited for the electricity my system makes?

PG&E’s net-meter, replacing your current meter, will track the power moving both directions – that is, the electricity produced by the system and sent onto the grid and the power drawn from the grid. Every six months, PG&E will “true-up” your electricity use and solar electricity generation. With solar, there is no disruption to your electrical service. The only change is a reduction in your PG&E bill.

Should I wait for new technology?

No, now is really the best time to invest in a solar system with the combination of proven technology, reduced solar system costs, ever-increasing PG&E rates, and Federal tax incentives. The underling benefit of turning sunlight into electricity will not change for as long as we still use electricity to power our homes.

What about maintenance?

Your solar energy system requires very little maintenance, largely because it has no moving parts. There is no need to wash or dust photovoltaic panels, but it is important to keep them clear of shade and debris to maximize power generation. We suggest you keep an eye on trees that may shade your system and keep them trimmed. Fortunately, the rain serves as a natural cleaning agent, and occasionally you may want to hose down your panels during dry seasons. When you repower your home, you receive one year of free monitoring and maintenance to ensure your solar system is operating at peak efficiency.