Evaluating solar options? The Model T days are over; four key considerations.

You've decided it's time to (re)-investigate installing solar. Your hesitancy may be logical: You do not need to go solar, and you’re unsure how to assess and assemble the pieces, let alone compare offerings. It can be puzzling. Your caution (and even procrastination) actually positions you well. The solar industry has improved dramatically from the Model T days.

Early car buyers had similar concerns: Do I buy internal combustion engine, electric, or steam? What starter makes sense? What about the brakes, or the dashboard, or the tire lifetime? Do I need a car? If so, who can I trust and will it work/be dependable?

Homeowners who went solar in the early days had to consider panel composition, wiring, inverter design, roof attachments, warranties, and even potential fire hazards. Fortunately, solar equipment is now similar to automotive offers from the early ‘80s. We no longer need to ask about where the engine was made, the engine compression, the electrical system, etc. For cars, we now shop for benefits and outcomes, and we have specific metrics to help gauge alternatives: fuel efficiency, acceleration (zero-to-60), safety test results, stopping distance plus all the new features and benefits available.

For solar, here's what matters most on the equipment front (i.e., questions you should engage and pose to your solar provider):

1. What is the likelihood the system will generate the annual energy forecasted? Thereby, can the solar company point to a significant group of local, monitored homes and compare forecast to actual generation? A simple metric to calculate system productivity: total annual electricity (kWh)/system size (kW-DC). For south-facing systems with no shade, this number should be about 1,500 kWh/kW. East- and west-facing systems produce ~8% less. (The likelihood of actually generating the energy promised falls dramatically as the actual productivity value increases above this threshold.) And, don’t get confused by panel efficiency: It simply reduces the area required for a system, and has a modest impact on the system’s production.
2. Does the equipment come from Tier-1, investment-grade suppliers? For solar panels: Canadian Solar, SunPower, LG and a handful of others qualify. For inverters: SMA, SolarEdge, and ABB.
3. What is the likelihood my product warranties will be valid? Amplifying the above point, the current and future financial stability of the manufacturer is imperative. A 25-year warranty is only as good as the company behind it; do your homework (or, better yet, press your solar provider to evidence the manufacturers’ solvency).
4. How do I know I’m getting a fair price? One way to standardize pricing for an apples-to-apples assessment: Divide system cost by the the system size (watts), so you have the cost per watt. The gross investment (pre-tax credit) for most home systems today should be $3.50 per watt or less for a Tier-1 system installed by a first-rate contractor.

Solar is transitioning from an art form to science. In so doing, your task is simplified as you endeavor to generate your own power. (And, solar, in our opinion, is the only investment in your home that generates a reliable return.)

Thinking about going solar? Five key considerations

There’s a lot of sunshine being monetized by our community. In Davis alone, one in four single family residences have solar PV systems (versus approximately 5% in PG&E territory). Such rapid adoption is driven by four factors: PG&E’s ever-escalating electricity rates, a sharp decline in the cost of solar systems, the 30% federal tax credit, and (increasingly) grand concerns about our climate and planet.

The formative stage of the Repower program involved extensive research. We assessed the quality, reliability and pricing of solar equipment; the efficacy of solar installation contractors; the pricing (through a group purchase program) of solar; the most viable financing options; and, the most systematic installation methodology. Since pulling the pieces together and enabling the Repower program, we have had the fortune of helping more homeowners in our community invest in solar than any other solar provider.

If you are pondering going solar, here are five key considerations:

1. How long do you intend to reside in your home? If your horizon is less than five years, think twice; if more than five (and given you have a de facto agreement with PG&E to purchase electricity), dig deep.

2. What is the condition (and remaining life) of your roof? Solar systems have a 25-year production warranty. Though it is possible (and common) to replace a roof with an existing solar system, if your roof’s remaining life is less than 10 years, you should consider replacing all or part (i.e., the portion under the solar panels) of your roof.

3. What are the installation contractor’s qualifications? Thereby, it’s critical to speak with local homeowners who have worked with the contractor. Furthermore, you should seek a 10-year workmanship warranty and ensure the installation contractor is financially solvent. Finally, the contractor’s experience with your type of roof is paramount.

4. Who manufacturers the solar panels and inverter(s)? The assessment herein is twofold: What is the efficacy and reliability of the products, and what is the financial solvency (i.e., strength of balance sheet) of the manufacturer, and thus the validity of their performance warranty. Bloomberg qualifies a dozen or so solar panel manufacturers as “Tier 1” or “investment grade” … make sure you’re purchasing a product from this class.

5. Who will own the system and/or how will you pay for it? Frankly, leasing a solar system — whereby your solar panels are owned by a third-party, tax equity fund — is a raw deal for homeowners. You should own your system. Many homeowners employ a home equity line of credit (HELOC) or credit union financing (Yolo Federal Credit Union) to finance their solar system. (Contact us if you would like to learn more about Property Assessed Clean Energy [PACE] financing … we helped developed the first PACE programs in Sacramento and Yolo counties.)

At the end of the day, you'd like to know the likelihood your solar system will meet or exceed its energy forecast. Most solar companies use the same forecasting tools. It's the assumptions that feed these models that vary. You should feel confident the forecast presented is reasonable and not some pie-in-the-sky result. Hence, ask solar companies the proportion of systems installed that meet or exceed the originally forecast energy generation. (You should also ask the number of systems monitored to ensure it's a meaningful proportion.)

We do not have all the answers — there is no surefire, perfect solar solution — but we do have strong opinions and extensive experience in our community. Nobody wants to get a bad deal or make a short-sighted decision; filtering through the noise of pesky solar solicitations can be migraine-inducing. To wit, feel free to contact us if you need a hand.

The oh-so-beautiful Tesla solar roof: Trophy wife or trusted companion?

I want a Tesla solar roof.

There, I said it. And I admit I’m under the spell of Elon (with a capital E). He’s enchanting and innovative, a visionary with extraordinary aesthetic taste. He is hell-bent on building THE sustainable energy company of the future. Elon rocks.

I spent 15 minutes Friday night fixated on Tesla’s solar roof (and Powerwall) announcement. Set at Universal Studios, it was like a scene out of Truman Show: Was it real? Time will tell. Here's the video.

Enchantment to the side, I have a few questions for Elon prior to pulling the trigger on a Tesla solar roof (in addition to recommending the solution for friends and neighbors). Elon, I will buy and recommend your roof if:

1. As you stated, the cost is the same or less than installing a new roof and traditional solar PV system.

2. The solar shingles’ electricity generation capacity is proven and backed by a 25-year, third-party warranty.

3. The quality of the roof is the same or superior to traditional roofs, both its insulating capacity and protection versus leaks.

4. It’s easy to install and replace the singles (versus Dow’s recently-killed Powerhouse solar shingle).

5. The roof can endure standard stomping and pounding, be it a person walking or a tree limb tumbling.

6. My local jurisdiction will permit its installation.

7. It can be installed by a reputable, third-party contractor; as you know, Elon, SolarCity is not known for their quality workmanship.

8. It qualifies for the 30% federal tax credit.

9. I can insure it.

Elon, if you nail the above you will be well along your way in building a sustainable and profitable, end-to-end clean energy juggernaut. Until then, please focus on ramping production of the Model 3 ... my $1,000 deposit is burning a mini hole in your pocket!

RepowerYolo siting (in Morocco!)

We believe an unofficial world record was set this weekend: The farthest distance -- 5,990 miles -- traveled by a RepowerYolo t-shirt! Our colleague, friend, fellow sustainability advocate, Davis resident, and (hah!) international correspondent Yvonne Hunter reported in from Ourazette, Morocco.

Greetings from Morocco. My Repower tee shirt went along on the trip and was worn today in the city of Ourazette - in the Sahara.  

Lots and lots of solar PV all over Morocco and imagine my surprise at seeing that a solar festival is here now.  No chance to attend but the poster and outside signs were nifty.  In French and Arabic!

Many thanks to Yvonne for sharing the solar love in the Sahara! (And, hopefully, she did not hug a solar panel.) 

CoolDavis Profiles RepowerYolo Homeowner Mike Hart

Thanks to our friends and colleagues at CoolDavis for featuring Repower homeowner, and Sierra Energy Founder and CEO, Mike Hart in their July/August newsletter. Here's a link to the article on CoolDavis' site, and below is the profile in full. Thanks, Mike, for making our community and this planet a more sustainable, vibrant place to call home.

Local Businessman Saves Money by Installing Rooftop Solar

Mike Hart's 4 kilowatt solar system returns ten percent on invesment

July 1, 2016

By Carla Arango

Mike Hart, CEO and Founder of Sierra Energy, is saving thousands of dollars every year since he installed solar panels. His desire to reduce his carbon footprint encouraged him to go solar, but that’s not the only thing he has managed to decrease.

“When my energy bill comes, instead of a few hundred dollars a month, it’s now three bucks,” Hart said.

Davis-based business manages the process

Hart consulted with RepowerYolo for his rooftop solar system. “They did a great job. They came out, they oversaw everything. Certainly the most difficult part was getting connections with PG&E, and they handled all of that so I thought that was fantastic,” Hart said.

Hart explains how RepowerYolo took care of everything leaving him worry free.

“I thought going with RepowerYolo was a smart move because they’re local, and they worked with us, they worked with the contractor, they made sure that everything was done right the first time, and they’ve done a very good job just setting this up and making sure our system worked well.”

Ten percent return on investment

Hart installed a 4 kilowatt solar system (sic: it's a 7.95kW system) and paid for it in full. He explains he has received a bigger return on investment than if he had invested his money in a bank.

“If you put money, which I had, in a savings account in the bank, you get about half a percent, less than one percent interest on savings, but if you put that money in your roof instead of the bank you get about ten percent. So you make about 20 times the return on your money.”

“Anyone who doesn’t have rooftop solar, but has money in their bank is making a mistake.”

Hart emphasizes that investing in solar is better than putting money in the bank and said that from a financial perspective, he can’t think of a reason not to have rooftop solar.

An extra layer of insulation

Since installing rooftop solar, Hart and his family have maintained their energy use the same but said their comfort level has increased while their energy bill has decreased.

“We’re saving several hundred dollars a month. When the solar panels are creating the greatest amount of energy, that’s typically when most homes use the greatest amount of power for air conditioning, so it has effectively eliminated those bills for us,” Hart said.

In addition to saving money, the extra layer of all that solar covering part of the roof has made his house cooler, decreasing his need for air conditioning.

“If anything we have an extra layer of insulation on our roof now,” Hart said.

Telling friends

Hart has shown his system to friends and neighbors saying how installing rooftop solar has been a good financial decision for him.

Hart encourages people who are interested in going solar to talk to RepowerYolo.

It’s simple

“I have a hard time understanding why anybody wouldn’t have solar on their roof. It can be done with no cost to you, and if you have the money it’s a great way to make a profit,” Hart said.

“It lowers your carbon footprint, gives you a great financial return, and makes your house cooler, so it’s a pretty easy decision. You don’t have to do anything extra. Once it’s done, it’s done. It’s simple,” Hart said.

There is no urgency to go solar, except …

It happens too many times each week: Homeowners relay stories about aggravating and misleading solar sales tactics. Three common examples:

1. I was told I have to go solar now because the tax credit’s gonna expire.

Erroneous. Next time you flip on the radio, there’s a good chance you’ll hear an ad exerting that Uncle Sam’s gonna stop giving away free money. First, not true. Second, nothing’s free. Importantly, the 30% solar tax credit was extended through 2021. The tax credit’s not going away.

2. Sam the solar sales guy said PG&E’s net-metering program is about to go away.

Rubbish. As we’ve shared, on January 28, 2016, the California Public Utilities Commission — against the wish of PG&E — expanded the solar net-metering program. The cap was doubled from 5% (of PG&E’s peak demand energy coming from net-metered solar) to 10%. Net metering is not going away.

3. If I go solar by (fill in the blank with a date), I will get a (fill in the blank with a dollar amount) discount.

Insulting. The money has to come from somewhere — the customer, ya think? — and it’s a common psychological sales tactic to employ discounts (buried in the price you pay) to create urgency. Don’t buy in to it.

RepowerYolo has had the fortune of helping more homeowners in our community invest in solar than any other solar company over the past few years. In so doing, we have not spent a dime on sales, marketing, advertising, etcetera … instead, the savings are passed on to homeowners via our group buy program.

So, there’s no urgency — i.e., soon-to-perish financial incentives -- to go solar? Not necessarily. The urgency we see is very straightforward: Once a homeowner is comfortable with the efficacy and reliability of the solar system, the quality of the installation contractor and their workmanship warranty, and the economics (investment and future energy savings), they proceed. After all — to quote many Repower homeowners — why continue writing checks to PG&E when solar is the right and prudent thing to do?

YoloShines: Progress Ranch

Want to learn more about your community? Look beyond the obvious and tangible roadside attractions; look inside. Sharpen your lens on the myriad behind-the-scenes, little-engines-that-could nonprofit organizations that weave the fabric of our community. We are who we are because of these groups.

And, we all have favorites: Some care about the environment or economic justice; others lean toward education and athletics; the arts and combatting hunger strike emotive strings; healthcare, childcare and animal welfare do it for others. Regardless of our individual ability to give — personally and financially — we all care.

Since 1976, Progress Ranch has provided an East Davis home to a half-dozen six-to-15-year old boys. Beyond sharing a roof, Progress Ranch helps kids build a life. Here’s their mission:

We strive for the following outcomes for our boys:

- Health and well-being

- Confidence and social skills

- An optimistic and hopeful outlook

- A capacity for meaningful relationships

We work to achieve these outcomes by:

- Providing a nurturing home environment

- Being involved in a supportive community

- Emphasizing education

- Offering individual and family therapy

We visited Progress Ranch’s home last week. Amazing. On behalf of Repower homeowners Jonathan and Jeanette Lewis, we are pleased to donate $500 to Progress Ranch. Thank you to Jonathan and Jeanette for the suggestion and introduction.

Please join us in supporting Progress Ranch. If you can’t donate money, they can always use household staples and volunteer services. Or, if golf’s your fancy, join us July 23 for the 18th Annual Villanueva Memorial Golf Tournament benefiting Progress Ranch. Your contribution will make a difference in the lives of young boys.