Monday, June 20, 2011

Solar Leasing In The Solar Industry Part I

SOLAR LEASING CONSIDERATIONS


When is a solar lease a very good investment for consumers? The answer is when the consumer can own it in a very short time frame and if there is a specific and affordable buyout amount at the end of the lease.

Current leases and PPA’s (Power Purchase Agreements) are offered from several different solar companies in the central valley. There are differences between the two.

A lease give consumers a solar system with a very low down payment and lease payments that are a little lower than current electric rates from the utility company. A “left over” payment will be due to the utility provider every year too. Ownership is usually not an option.

A PPA sells energy to the consumer that has been generated by the new solar system. The price for the energy is a little less than what the same costs would have been from the utility. Left over payments to the utility company is part of the equation. Ownership is not an option.

To help break down leases and PPA’s, the following comparisons may help in evaluating these investment tools to determine which if any would work better than financing a solar system.

Solar City Lease

Solar City was the first to enter the market with a solar lease. Their lease has been evolving but some of the basic facts are:

1. Down payments can vary from 0 down to well into the thousands of dollars. The difference in the down payment is reflected in the monthly payments.
2. The term of the lease can vary from 15 to 20 years.
3. It is uncommon for them to lease a system that off sets 100% of your bill. A left over payment to the utility at the true up time (1 yr from interconnection) can be expected.
4. The quality of the equipment can be debated. However, if a consumer were to actually purchase the same equipment from a distributor, the cost of the solar panels and inverters would be some of the least expensive equipment available!
5. Efficiency of the equipment is definitely not the top of the industry.
6. Some of the equipment used is manufactured by First Solar. First Solar uses cadmium-telluride in the manufacturing of their panels.
7. The inflation or escalation rate increase per year is a solar leasing high of 3.9%.
8. Renegotiating a lease in 15-20 years may be more difficult to negotiate than now.

Some of the obvious questions then should be:

1. How much is a large down payment actually costing you. You are in effect pre paying the lease in exchange for lower monthly payments. What could your money do for you now?
2. Do you want to lease for up to 20 years and own nothing?
3. Does the left over payment to the utility company concern you knowing that our electric rates have been doubling every 10 years since 1970? You may also want to consider the degredation rate of solar panels. They will produce up to 20% less energy at 20-25 years as when they were brand new.
4. Will potential recycling costs of First Solar panels undermine the net savings to you down the road? Because of it’s hazardous waste rating with the US government, recycling of cadmium-telluride needs to be researched and considered in either selling your home with current hazardous waste disclosure forms and the eventual cost of recycling of this product. Currently it is approximately 20 times more expensive to recycle hazardous waste versus normal landfill accepted waste.
5. Is ownership of your energy important to you?
6. Consideration needs to be given to when the lease expires. There are so many potential disadvantages to the consumers, that multiple states will not allow leasing companies to lease a solar system unless there is a buyout option at the end of the lease.

Our next blog will be The Solar Leasing of California advantages over every other lease or PPA available today.

Pools, Spas, Pumps and Solar

How to Save Energy & Money on Your Pool

Pools are a major investment, not only in the initial expense involved, but also the ongoing maintenance and energy expenses. Maintenance and energy savings will directly affect how much solar you need to have installed or how much "extra" energy you can direct elsewhere.

Algae is a living aquatic creature that multiplies rapidly on warm, sunny days. Containing chlorophyll, algae utilizes photosynthesis to grow. That is, they take in carbon dioxide and expend oxygen as a byproduct

Algae is a problem that plaques pool owners sooner or later. In order to "kill" or eliminate algae it is necessary to monitor conditions that are primary causes of algae. They include water balance, warm temperatures, sunlight and the presence or nitrates or carbon dioxide.

Algae also cloggs up sanitation pathways in the water, as well as the pores in a filter, decreasing filter effectiveness and requiring more backwashing or medium replacement. Algae creates a chlorine demand in the water for itself, actually consuming chlorine that should be working on other contaminants. Algae are kind of like weeds in your garden. Unsightly, unwanted space takers that create more work for the gardener, and sap up nutrients and resources from the flora we wish to grow.

Additional hours of pool pump usage is a must as well as increased chlorine to treat the water.
Products such as "Phosfree" offer savings on energy, equipment, and pool chemical expenses.

Here is how it works.

Algae feeds off of phosphates. Phosfree eliminates phosphates in your pool. By eliminating phospates, algae has nothing to survive on. This in effect has major savings to pool owners.

The first savings in Chlorine. Although chlorine is not expensive, having it installed can add up quickly.

The second is in maintenance on filters. Algae plugs up or restricts water flow through the filter.

The third is electricity. Due to filters Not being clogged up. This unrestricted flow as well as no algae means you can normally cut back pool pump times in half! Being these pump use a lot of energy, this an important aspect to utilizing this product.

The fourth is pool equipment maintenance and equipment replacement expenses.

Other benefits that are realized by this product are not needing chlorine, not having burning eyes from the excess chlorine treatments in the summer months, and a soft smooth feeling to your skin and hair after swimming.

Another big savings on energy is upgrading to more efficient pumps and filters. Growing up on the Ranch in Nebraska, Dad always preached "If it isn't broken, Don't replace it" This is great advise, but sooner or later replacement is needed. And when it comes to building a larger solar system or conserving energy, we should at least take a look at pool efficiency.

New pool pumps are offered with "variable speed" motors. This means that the motor will be operating at certain times at a "lower speed" which utilizes less electricity.

New pool filters allow more water to flow through them while doing the same or better filtering job than the old filters. This means the pool pumps do not need to run as often.

Being pool equipment can be ran during the evening hours, the time of use rate should be incorporated into your solar investment. Please read our article on Time of Use "TOU" to see how attractive the rates would be for you. Time of Use will preform like another "rebate" for solar only it is ongoing. Knowing how to utilize this option is very important when going solar.

Sunday, June 12, 2011

Utilities to Pay for Solar Generation

Gary Fairhead
Dec 2010

California passed a law in 2010 that will require Public Utilities to pay for excess solar generation. The bill, AB 920, sponsored by Jared Huffman (D-San Rafael), was signed into law by Governor Arnold Schwarzenegger.

Currently, if you generate more electricity than you use in a year, the excess simply goes to the Utility for free. This bill is the equivalent of a feed in tariff. However, briefly reading through the bill, we didn’t see at what rate the electricity would be reimbursed. It may end up being a feed in tariff that doesn’t have much value.

Pacific Gas and Electric, (PGE) is claiming that the electricity will be paid for by people who don’t have the resources to purchase solar for themselves. This is just ridiculous. If you look at the tiered rate schedule, people with larger homes and pools pay a substantial percentage more for their electricity, and in some cases are being crushed by the size of their electric bills. For these people, who are already subsidizing the solar rebates, it makes sense to buy solar. The only reason a person with resources or not would generate more energy than they need would be because the feed in tariff makes good economic sense.

Saturday, June 11, 2011

Where to Conserve Energy

Where to Start Conserving Energy in Your Home

People are always asking what energy conservation items should be addressed first when wanting to conserve energy.

This is important because just by conserving energy, we can build consumers a smaller solar system. Usually the cost of solar is more than conserving your existing energy consumption.

The first items on the list should be the least expensive. Upgrading your lighting to the newer high efficient flourescent and LED lighting should be high on the list. Flourescent is now available in may light colors that are very easy on your eyes.

Weatherstripping doors and windows should be next.

This should be followed by replacing or unhooking extra deep freezers and refridgerators. These appliances are fairly inexpensive to change out. Many people see there bills drop by over $40 per month when the new appliance is purchased. This is based on the applicance being old. Pre 1990. The electric bills can be determind by the energy star rating on the appliance. It is not unusual for the new electric bill to run $5 per month on the new appliance. A small gaget called "kill-o-watt" can be purchased on Amazon. Just unplug your appliance and plug the kill o watt into the outlet. The applicance then plugs into the kill o watt. The kill o watt then measures the kilowatt hour usage. This can then be translated into overall savings per month.

Hot and cold air follow the least resistance when trying to escape our homes. The first way to exit or enter is the attic. Next the walls, and following that the floors.

Attic insulation should be fourth. Attics should be brought up to R-38 if they have less than R24 existing.

Being walls acount for 60% of a homes entire wall area, they should be addressed next.

Most older windows allow for air infultration due to the poor or lacking weather stripping. Windows are also a poor insulator. One pane of glass carries a whopping .67 R-Rating. Compared to the R-38 in attics, it is not very much. Now, all windows are manufactured not only dual pane glass, but with Low Emissitivity (low e) coatings. These coatings have increased in their efficiency in the last few years. Low e glass allows sunlight into a home but reflect 95% of the heat. This works both in the summer to help restrict heat gain but also in the window to contain heat with the same reflective properties.

Next should be floor insulation followed by air conditioning replacement. Please discuss this with your air conditioning contractor as there are some homes that replacement is not as high a priority.

Appliance replacement is next. Although most people have a natural gas or propane hot water heaters, these items will not be affected by solar. However, if a consumer has a conventional electric (storage tank) hot water heater, they should replace it with a gas heater immediately.
Gas is four times cheaper than electricity.

The same holds true of electric clothes dryers. Switching to gas is a definate money saver.

These are the basics of where and when to address energy conservation in your home.