Pennsylvania Passes $100 Million Sunshine Bill!

Published on April 23, 2009 by Dan Hahn.
Categories: Solar Legistlation, Solar Politics.

Gov. Rendell Praising the Sun (image courtesy heudnsk.com)

Great news for Pennsylvanians, and thanks to Gov. Ed Rendell and the full support of the Pennsylvania solar community to get this important legislation unanimously passed.  For more details, check out our Pennsylvania page, updated today!

Happy Earth Day 2009! Win a free t-shirt!

Published on April 22, 2009 by Dan Hahn.
Categories: free stuff.

help protect what’s ours

Chances are, you’re here on the site because you’re curious about solar energy. That’s what led us to create this site in 2007 – we were curious about it too. More than ever though, the time is now to explore possibilities for solar in your state. The first step towards a healthier planet is simply to use less energy. The second step is to consider where your electricity comes from and explore options to create some of it yourself. Why buy all of it from someone else who has the rights to dig up and burn toxic materials?

There’s over a 92 in 100 chance the electricity you use – the hair dryer in the morning, to your washing machine during the evening – come from non-renewable resources. Go ahead, find your state on the right side of this page, check out what is going on in the state to spur on solar. If there isn’t enough activity on the legislative front, contact your state representative to get things going!

Take that second step with us, and we’ll throw some cotton on your back. Simply request to connect with a solar expert in your area, and you’ll be entered into our earth day drawing to win a free t-shirt. Our logo is cool, so we put it on a shirt. Your submission needs to be received by midnight tonight to qualify.

Good luck, and thanks for being interested in solar energy!

- Dan and Dave

What's an "inverter?"

Published on by Tor a.k.a. "Solar Fred".
Categories: Buying Solar, Solar Components, energy efficiency.

Dear Solar Fred,

I’m confused. Someone told me solar is expensive because you don’t just have to buy the panels, but also get an inverter, and then you have to replace it. What’s an inverter, and should I really care?

Solar Sally (maybe)

Dearest Maybe Solar Sally,

All you really need to know about an inverter is that it converts the electricity received into the solar panels into the electricity you receive through your electric outlets.

To be slightly more technical, an inverter changes direct current “DC” energy that solar panels produce into alternating current or “AC” energy that your t.v. and computer uses. In fact, unless you’re out in the middle of nowhere and off the grid, anything you plug is going to require AC energy. So the inverter is necessary for solar.

As to cost, inverters don’t last as long as solar panels. Panels last 25-30 years, some even longer. Inverters generally conk out in 12-15 years. A solar installer should tell you about this. These days, inverters cost around $1200-2000, which is included in your initial solar system price.

However, in 15 years when your inverter goes bust, that price may be significantly lower…or the same. It’s unlikely to be more. So, worst case, be prepared to replace the inverter 10-15 years from now. A good solar company will be showing you this info in the sales proposal and/or presentation. If they don’t ever mention it …. that’s not a good policy, in my opinion.  Add that aspect to your selection process.

The good news is that by the time your inverter needs replacing, your system has usually paid for itself. Even better, for the next 10 to 15 years of your solar panel life, the further energy savings should more than offset this expense….by a lot.

An installer might also suggest a new kind of inverter, called “micro inverters.” Instead wiring all the panels together and hooking it up to the big box on the wall, the DC to AC conversion takes in a little box installed with each solar panel. These new inverters are also supposed to last the same amount of time as traditional inverters.

The main advantage to these new micro inverters has to do with keeping more of your solar panels working when a cloud passes or there’s some kind of temporary shading. With micro inverters, only the panel that is shaded will stop producing energy while the cloud passes. With the traditional inverter, the ENTIRE row of solar panels will stop working until the cloud passes. This is because of the way solar panels are typically wired in “parallel.” It also makes the solar panel design more flexible, allowing solar to be more customized to your home.

See this video about these micro inverters, below:

Bottom line, inverters are needed, they die after 10 years, but your solar savings eventually pay for their replacement.

To get anything of substance done, you gotta set goals

Published on April 21, 2009 by Dan Hahn.
Categories: solar sales.

50 small rocks waiting patiently to be placed in glass #2

Selling commercial solar energy systems is not easy. I’ve been at it for 4 months now and have had to deal with several competing time sinks: I’ve moved into a new house, had relationship issues, wrangled with the graduate studies department at Portland State to finally get my Master’s degree paperwork all approved, and only as of 2 days ago have a reasonable home office to work from.

Knowing sales really is a numbers game, I am in need of a routine to keep it going strong – something tangible to keep myself on target and accountable.

So, I decided on rocks. Pure coincidence our website is called “Solar Power Rocks!”, though I think this system will really work well for me.

I’ve got two glasses on my window sill. Each morning, I’ll place 50 rocks in the glass on the left. With each outbound call I make, I place one of those rocks in the other glass, until all those rocks are in glass #2.

Wish me luck, and go solar!

Collective Bargaining: 1BOG

Published on April 20, 2009 by Tor a.k.a. "Solar Fred".
Categories: Affordable Solar, Buying Solar, Los Angeles Solar.

Dear Solar Fred,

I’m one of those guys that actually don’t like to shop or go to the car dealership and haggle. Can’t I just go to some solar broker who will find me the best price?

Sincerely, Rob

My good man, Rob:

Kick back, relax, and see what I’ve found for you. It’s a no-haggle, no shopping, no-price comparison solar organization that negotiates volume discounts for you–and your neighbors.

It’s called 1BOG. “1BOG stands for “1 Block Off the Grid.” The upside is pretty good all around:

• 1BOG negotiates group discounts for solar.
• There’s no cost to you for their services.
• All you have to do is live in one of their many cities and sign up before the solar company closes its offer.
• For example. A typical solar system right now, no matter where you live, is about $8-$10 per watt (before incentives). 1BOG just negotiated a price for people in the San Fran area for as little as $7.25/watt. That may seem like 75 cents. But if you need a 4000 watt (4KW) system, 1BOG just saved you $3000 before rebates and incentives. With that extra 3000 bucks, you could go on vacation or stock up on a whole lot of beer. Whatever.
• 1BOG also negotiates for some other freebies on your behalf that you might have to pay extra for, such as maintenance and monitoring. (However, there’s really very little maintenance or monitoring needed for solar. But what the heck. It’s free.) See this youtube video. Couldn’t hurt:
  

In the L.A. area, I also know of a similar program from the city of Santa Monica, California. For Santa Monica residents or businesses only, the city will evaluate your home or business for solar and solicit 3 bids from registered installers and help you compare.

Have any questions Rob, please feel free to comment below or write to solarfred25@gmail.com

Iowa Solar Incentives Updated

Published on by Dan Hahn.
Categories: iowa.

Roseman Bridge – Madison County, Iowa

Iowa just notched 2 more suns next to its name for implementing a 1.5 cent per kilowatt hour production tax credit for anyone installing solar in the state for the next 10 years. For more details on how the incentives to go solar work in the Hawkeye state, check out the Iowa State page updated today!

Cash Poor Financing: 0 Down

Published on April 18, 2009 by Tor a.k.a. "Solar Fred".
Categories: Affordable Solar, Buying Solar, Los Angeles Solar.

In Part One of Cash Poor Richard, I told you about a solar lease program that’s similar to a car lease, with no money to pay upfront, and an option to buy after 15 years. Combined payments targeted to be cheaper than your current electric bill.

In Part Two , I told you about Power Purchase Agreements (PPA’s), where you don’t actually own the solar panels on your roof. Instead, you pay a small upfront fee and then pay the PPA company a fixed electric rate that hedges you against rising electric rates for the next 15 to 20 years.

Part Three: $0 Down Financing through a bank.

I have to say that this is probably the best options of the three outlined so far. Several solar companies have this program, offered through Clean Power Finance. The biggest installer offering this deal is Akeena Solar, a California company. But I don’t see why you couldn’t contact Clean Power and get the same with another installer. (You could also try a traditional second mortgage through your bank or an energy efficiency mortgage.)

Here’s the deal, and it’s really spectacular, as far as I can see:

• Fixed rate loan, right now from 6.74% to 7.24% fixed. Not bad. Better than a credit card.
• No income verification for loans up to $40,000.
• Bank pays all loan fees.
• You can pay it off any time.
• Bank takes second lien position on your home (i.e., a second mortgage).
• For some applicants, you can also get an unsecured loan, but then you don’t get the tax write off of the mortgage.
• Terms up to 20 years.
• Did I mention that it was no money down?
• Of course, you have to have good credit.
• Got to live in California or Texas.
• Have to have at least 10% equity in your home and a decent debt to income ratio.
• I’ll say it again: No moula down. Lower than your current electric bill. No brainer. Did I say that out loud?

The great thing about this financing is that YOU get the benefit of the full rebate, the tax credits, and the “green tags/RECs,” (sort of like carbon credits, which may be valuable some day.)

In addition, the solar installer should be able to show you how your loan payment will be less than your current electric bill (only a little more, and then lower as electric rates rise–and they will.) That means you’re saving money close to day 1. And after you’ve paid it back in around 12 years, heck, you’re making money, compared to what you would have been paying to elctric company. Keep in mind that solar panels are generally warrantied for 25 years, but usually go for 30 years or more.

There is one more option that may be even better than this one. You have to live in Berkley, California or Palm Springs, CA. But that may be changing very soon… See Part 4.

Cash Poor Fianancing: PPAs

Published on April 16, 2009 by Tor a.k.a. "Solar Fred".
Categories: Affordable Solar, Buying Solar, Los Angeles Solar, Solar PPA.

For those of you catching up:

• Richard wants solar for his family, but doesn’t have the upfront cash or home equity to finance $10 to $15,000 worth of solar panels.
• I told him about no money down leasing options, such as the one offered through Solar City.

Another similar option to leasing is what’s called a Power Purchase Agreement or “PPA.” These are usually better for large factories and businesses, but there is at least one residential company doing PPA’s called SunRun Solar.

PPA agreemens can be variable, so you may want to compare providers. That being said, here are the basics:

• PPAs give you your solar panels for little or no money down, depending on the system size that you need. SunRun says it can be low as $1,000 down. Some systems could be more, however…. More like 2 to $3,000, fyi.
• The PPA company actually owns the panels. You pay for the power that the solar panels generate. So, it’s sort of like your new electric utility, only here it’s clean power.

Pros:

• You get locked into a set electric rate (with periodic rate increases). that is hedged againt the rising cost of electricity. So, you’re getting power at a green discount.
• The PPA pays and takes care of maintenance (It’s not that much except for around year 12 when they have to replace your inverter. Otherwise, need to keep it clean.).
• You’re still tied to the grid, so even if the system breaks down, you’ve got electricity.
• There’s typically some option to buy.

Cons:

• There’s that grand or two or three upfront cost.
• You’re locked in to this thing for 15 or 20 years. (SunRun is 18.)
• If you move, you’ve got to take the panels and the agreement with you or transfer it to the new home owner.
• You’re financially MUCH better off in the long run by buying, not through the PPA or leasing. That said, you’re getting solar power for just a little down with better rates than you get from your coal utility.

As always, Richard, best to shop around. In Part 3, I’ll tell you about another no money down option that’s probably the best deal.

Cash Poor Financing: Solar Lease

Published on April 15, 2009 by Tor a.k.a. "Solar Fred".
Categories: Affordable Solar, Buying Solar, Los Angeles Solar, Solar Lease.

Dear Solar Fred,

I want to go solar, but thanks to the housing bubble, I have no home equity. What little cash I save through my job is being stuffed into a secret 401k mattress that my wife says I can’t touch until she divorces me or until our kids think we’re old and penniless, whichever comes first.

Tell me how I can go solar without upfront costs.

Sincerely,

For Richard or Poorer (mostly poorer).

Dear Rich,

Hey, man, I may be single, but I feel your pain. (Not really.) But don’t worry. I have several solutions that I will outline for you over several posts.

First, you can lease instead of buy. It’s the same concept as leasing a car with an option to buy. The biggest outfit doing this right now is called Solar City (www.solarcity.com). They’ll give you the solar panels up front. Sweet. You pay a monthly leasing fee plus what’s left of your electric bill. Awesome. Between the leasing bill and the lower electric bill, Solar City says you’ll be paying about 10%-20% less than your usual electric bill and the solar panels cost you nothing upfront. Wha-hoo! Don’t tell the wife and sign me up, says Richard!

Not so fast.

• You’ve got to have a 720 credit rating or better.
• You’ve got to live in California, Oregon, or Arizona.
• You’re locked into those panel leasing payments for 15 years, so plan to stay where you are.
• If you do move and sell your house, the new owners could take over your lease or you could move your system to your new house and hope that you’ve got the same sun exposure and usage. There’s also the option to buy or upgrade to better panels.

In part two of Cash Poor Financing, I’ll fill you in on another low upfront cost buying option. It’s called a Power Purchase Agreement or (PPA).

How Much, Solar Fred?

Published on April 13, 2009 by Tor a.k.a. "Solar Fred".
Categories: Affordable Solar, Buying Solar, Los Angeles Solar.

Dear Solar Fred,

Dude, I want to have solar panels, but I also want to make sure I can feed and clothe my kids. Give me a straight answer: How much for my 1800 sq ft home in Los Angeles?

Just the Facts Jim

Dear JTF Jim,

Dude, the short answer is about $5.75 to $7.50/watt. Happy? …. I didn’t think so.

I get this question all the time, and I wish I could give you a straight quote, but the truth is that solar is not a one-size-fits-all item that you can buy at the corner solar store. Not yet, anyway. A true, upstanding, no-B.S., solar installer can’t give you a really accurate or even a ballpark quote without knowing:

• Where you live (or at least your zip code)
• Which direction your roof is facing (preferably toward the South)
• The amount of shade on the roof (preferably next to none)
• The type of roof you have (standard asphalt shingles are easiest and cheapest)
• And especially your electric bills for the last 12 months

So, let’s say I got all that info from you. You have an average $100/month bill and I sized your system to a 4000 watt or “4.0 kw DC” worth of solar panels. In terms of cost, that equals:

4000 watts x $7/watt (towards the middle of installed cost.) That’s $28,000. You’re saying, “Holy crap. 28,000 g’s? No way, Solar Fred!” But wait.

That’s before the California/LADWP rebate (subtract $16,138) and your 30% Federal Tax Credit applied after rebate (subtract $3,559). So bottom line, after I calculate the California rebate through the LADWP formula and the Federal Tax Rebate, what does this imaginary average system cost?

Around $8,303

Solar Fred Caution: Remember that a Federal tax credit is like a gift card for IRS. If you owe 5 bucks in taxes and have a 5 buck tax credit through solar, you only owe zilch to the IRS. If you owe nothing this year, you can’t get a refund, but you’ve still got a 5 buck tax gift card to use for the the following year(s).

In any case, $8,303 is better than 28 grand, for sure. That also doesn’t include the $922 bucks a year you’ll save in lower electric bills. (Could be more if rates rise faster.) Did I mention that the system pays for itself in about 9 years or how much it will increase the resale value of your home compared to other homes that don’t have solar? Do you like clean air? You’ll save a lot of it in addition to the cash.

See my archives and links about 0 down financing options, but my sincere advice is for you to find a solar installer and get a free quote. What can it hurt? It’s free. Now, go feed those kids.