Oregon Solar Case Study and Interview: Jim Houser, Owner, Hawthorne Auto Clinic

This morning, I had the pleasure of speaking with Jim Houser (above center), owner of Hawthorne Auto Clinic in Portland Oregon. Late last year, Jim and his business took the solar plunge. Here’s a transcript of our conversation (audio links coming soon). These wonderful photos of Jim and the crew were taken by solar energy ninja Peter Chee, who is also a professional photographer. He’s one hell of an artist, check more of his work on his website, PeterCheePhotography.com. Enjoy!

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Dan: Thanks for taking the time to do this by the way.

Jim: Sure.

D: So, first off, before the solar decision came to pass, was there anything else you’ve done to conserve energy?

J: Let’s see, since we’ve opened the business we’ve been pretty focused on environmental social responsibility. That’s one of the reasons we decided to do this.

We used to share our building with Sunflower Recycling company. I’ve never met a more dedicated group of environmental activists. I think that rubbed off to a pretty strong degree. We learned a lot from those folks.

D: No kidding. Like what?

J: They were very “Reduce, Re-use, Recycle” and so we had the opportunity to learn how to break down boxes and separate materials so they could be useful for recycling.

It was a big old State of Oregon fleet building so we had lots of room . At that point it was primarily recycling, but there was a certain… ethos that goes along with that so we looked for ways that as materials became available, we used less hazardous chemicals, our practices improved, we didn’t wash the floors and flush it into the sewers, we used a damp mop, things like that. We used a lot of trays and tubs to catch things that didn’t end up on the floor.

D: So did they work with you to help improve your processes?

J: We maintained their equipment and they watched very closely how we did things. It was a very close relationship, I mean, we shared the same bathroom. We were in constant daily contact. So, there were lots of opportunities for deep philosophical conversations as well as, practical “Gee how do we handle this problem? How do you handle your used oil, antifreeze, and brake fluid?”… All of that sort of stuff.

Because it was easy for us to be very proud of their philosophy in the way they were doing their work, we had a lot of respect for them…they sure weren’t making any money at it . I mean they had routes set up, the first in the city to do curbside recycling pickup. They had vehicles that had to be maintained, and so we had lots of conversations about that as well, in terms of “what’s it mean to be driving around picking up trash?”

But it seemed more efficient than having you know a hundred people each drive their vehicle to the recycling center than have one person pick up everyone’s recycling. And then eventually of course it spread to the rest of the city, they proved it could be done and essentially created the model for what is now commonplace. Everybody does it. But this was in the mid 70s. Pretty forward thinking then.

D: How did the discussion around solar start?

J: When we started it was just the two of us, and now there’s fifteen of us here. So, we’ve got this nice big huge roof which was due to be re-roofed and there are incentives currently in the state of Oregon, so it all seemed to come together very nicely that we could afford to do it, and it was going to make a very nice impact on our electrical usage- reverse the direction we were taking in terms of more electrical usage.

D: Were you actually using less, or just starting to generate some of your own power?

J: Yes, right. There was no way we were gonna stop washing car parts, we’re not gonna stop using computers, and we’re not gonna lay anybody off, so it was our way to lessen what was going to have to be generated for us externally.

D: So, if you could break down some of the financial reasons to do this, we’ve been through a lot of the environmental type of stuff, but you just mentioned the importance of the incentives in Oregon. Could you talk a little about what that meant to your business and your ability to pull the trigger on this decision?

J: Well, we were going to be able to reduce our electric bill by about 40%. So, that was a big one. We can do that, but how long was it gonna take us at that rate (for the system to pay for itself)? Last year our electric bill was $500 a month. This year it’s going down, down, down. I think it was $200 last month. So, we got together with Andy (Oregon’s REC Solar Guru) and our accountant to look at our tax liability.

Liz and I own the building, so we’re the ones who receive the tax benefits on this. So after talking with them, it figured that based on the various incentives it was going to be paid off in about five and a half years. I mean, there are lots of pieces of equipment that don’t return in that amount of time, and that seemed like a very reasonable return on our investment.

D: Yeah, that’s one of the things we harp on, you’re looking at about a 4 to 5 and a half year payback, and the system is guaranteed out to 25 years and will probably last a lot longer than that.

J: Yep.

D: Is there anything that you’d recommend to any other businesses in terms of working with a solar installer?

J: There are a couple of things, because we had four different people provide us bids. Four different companies. I can tell you that the initial cost of the installation was all fairly close, there was one company that was a little less expensive, but they were not providing a turnkey situation. We were going to have to get the permits, we were going to have to get the engineering studies done. They were just doing the panel installation and the electrical portion, and not a whole lot else of what needed to be done. That’s something to consider. It may be that if somebody is retired and they got lots of time on their hands and want to do that, there may be some value to them in that sort of “do it yourself” approach. That was not my goal . I didn’t find that appealing at all.

As far as the other three installers, one was a small subsidiary of a large electrical construction company, which was ok because they probably were going to know their electrics, though it seemed like they had just gotten started and solar was an afterthought. I was looking for someone with a background and a track record. The other company was very small, just two people and they just picked up help as they needed it, and I thought, “What if one of them gets hurt or gets sick, or if they get in an argument with each other?” They had mostly done residential, which isn’t really a big deal, since in some ways this project looked easier.

But again, the main thing was the installation warranty. Everybody else was two years, but you guys were quite a bit longer than that (10 years). I brought that up with everybody else when they said, “Why didn’t you choose us?”…and I said, “Well, I have to say that the warranty was a pretty strong consideration.” They countered back and said, “Well once it’s in, nothing really can go wrong with it.” Then I said, “Well why don’t you put on a warranty if there’s no risk?!” Cause you know, you might be accurate, I don’t know.

D: One less thing to have to worry about.

J: Yeah, so piece of mind stuff. A lot of it was piece of mind, you know. How long has the company been doing business? What kind of interaction are we going to have with them during construction? All of those sorts of things become important because you have to think that all of these things are going to be happening while your business is going to be in operation and you have to think about how is this going to affect my overall business activity.

D: Sure. How did the installation actually go?

J: It was absolutely great. Your guys were just great. We had huge snowstorms during the middle of all this which made it a little slippery and people had to be careful. There were some days where installation couldn’t go on, plus at the end there was that huge storm and we needed to get installed before December 31st. PGE who was responsible for hooking the thing up by then had pulled a lot of their crews to go take care of downed power lines and we were concerned they weren’t going to have a crew left to hook us up. But they called us and assured us that we were a high priority and they want these things to work. They came out and we were knocking snow off panels and hooking us up!

D: That’s great!

J: Yeah. So everybody worked really well, there were no hiccups, no surprises it all went really really well. It was great fun. We did learn when there was 3 inches of snow on the panels they don’t generate any electricity!

D: That was one hell of a storm this past winter. I’m from Chicago and it actually brought back some warm fuzzy feelings. Yeah, definitely need to get the snow off the panels to make them work. One last question before we go, is there anything that has happened in the past 3, 4, or 5 years that has forced you to change the way you do business?

J: The electric motor/generator technology. That’s fun, something exciting to me and especially our younger techs. It’s fascinating, just fascinating. That, and I believe people are gonna buy fewer cars. I think the whole model of buy a new car every 4 or 5 years is going to go away, not totally, but even when the economy evens out, people are going to want cars that are more durable, last longer, more fuel efficient and economical. All of the manufacturers, now that Toyota has proven they can get 50 miles per gallon from a midsize car, not a little rinky dinky econobox. A car that comfortably seats 5 people and you can get 50 miles to the gallon in that. That’s huge, and it has very low emissions, low CO2.

D: Do you feel like by embracing and adapting to new technology in this way, that this has become a strength of your business, something you do better than others out there?

J: I think there are a few of us who have stayed ahead of the curve, who have adopted the training, tooling, and proper mindset. There’s a handful of shops in Portland who have done that. A lot of the rest of them have their heads in the sand.

D: On the technology front you were talking about more durable cars, if people are not bringing their cars in as much, does that present kind of an issue for you?

J: Well actually, because they aren’t buying new cars, they are bringing their cars in because they don’t have those durable cars yet . So, right now we’re doing just fine. Actually, it’s kind of crazy. I will say that up through last year until the economy went to hell, we were doing more kind of maintenance stuff, now a lot of people are not doing the kind of long term maintenance they’re keeping more cash in reserve but lots and lots of people are fixing their cars instead of buying new ones. So we have more cars per day, but they aren’t spending as much per day—Which means we’re a little more hectic.

D: Thanks so much Jim. Would you mind if I put some of our conversation online?

J: No not at all! I think it’s good you’re doing this.

D: I think so too, thanks again!

J: Yep! Thank you!

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If you’re in Oregon and know someone who would be interested in receiving more info about solar energy for Oregon businesses, simply connect with me here, or fill out the form below!

Cheers!

- Dan

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Zero Dollar Power Bills in Roswell, GA

Last month, Roswell residents Ron Mulgrew and Dr. Chainarong Tunyaplin received an exciting piece of mail —
their power bill. Not only was their electric bill $0, Georgia Power also granted them a sum of credit.

“Going in, I expected the power bill would be hovering around $0 or a little bit above that in the Spring and Fall months when our electricity consumption is the lowest. When I saw the bill that said the power company owed us credit, I was delighted,” said Dr. Tunyaplin.

Apart from installing solar, Tunyaplin and Mulgrew have other methods of reducing their carbon footprint. “We reduced our power usage gradually over a year before we started thinking about solar cells seriously,” said Dr. Tunyaplin. “We adjust thermostat to 79 in the summer and 68 in the winter. We open windows when possible. We unplug all electronics when they’re not in use.”

“We wanted to do everything we can to bring our home to net zero,” explained Mr. Mulgrew on installing solar and reducing energy consumption. In addition to lowering power usage, “We try to use tote bags when we go grocery shopping and have to remember to take the bags with us,” said Tunyaplin. “This one is surprisingly difficult to do.”

When the couple began the process of installing solar, they were confronted with bigger difficulties than remembering tote bags. Location is a keyword in installing solar—for solar panels to reach their full potential, an array must be situated on a roof with a southern exposure.

For Tunyaplin and Mulgrew, the panels needed to be placed on the front of their home. In the average solar installation, merely choosing an inconspicuous panel is fine when installing on the back of a home. However, as the pair resides in a modern part of Roswell’s Historic District, and their southern exposure was on the front of their house, this meant presenting their case to the Roswell Historic Commission.
Alpharetta-based United Renewable Energy worked with Mulgrew and Tunyaplin to ensure everything was aligned with the regulations of the Historic Commission.

URE helped Tunyaplin and Mulgrew to choose panels that would look the least conspicuous and make the best use of space—black Sanyo HIT panels. The Historic Commission viewed another URE installation of the panels while deliberating whether or not to allow Mulgrew and Tunyaplin to install the panels.

Fortunately, the Historic Commission allowed Mulgrew and Tunyaplin to proceed installing their array—just in time for them to be top of the list for the Georgia Renewable Tax Credit, limited annually to $2.5M for all renewables in the state. “We were concerned over the availability of the credit, but thanks to the swift work of the Historic Association and United Renewable Energy, we were in a good position to be able to take advantage of it,” said Mr. Mulgrew.

The decision to install solar is not one that should be taken lightly. While there are financial incentives, they are limited, and payoff for a residential array can take up to 20 years in Georgia.

However, as Tunyaplin, Mulgrew, and their power bill can attest, there are short-term benefits. “The performance of our solar cells certainly exceeds my expectations”.

Have a solar story to share? Email Dan, and we’ll get the word out.

Welcome to the Revolution

When I purchased my solar system in 2007, I never imagined the impact that decision would have on my life. My $80 annual electric bill was just the start of my love affair with solar. Within weeks, I found myself selling the stuff.

Of course, way back in 2007 the idea of going solar was a foreign concept for most consumers who were put off by the high upfront cost; the promise of ever improving technology; and a culture of consumption about to meet its untimely demise.

I remember how my friends and family questioned both my initial purchase and my surprising career move that soon followed. “Solar is the future. In a couple of years solar will be ubiquitous. Just wait until electric cars make a comeback” I argued. “It’s too expensive. It’s too new. It’ll take forever to pay back,” they countered, “Future solar technology will be better, more efficient, and cheaper. Electric cars are for dreamers.”

In 2008, the non believers seemed to hold the cards. A global economic meltdown hurt business across the board as financing ground to a standstill and many that wanted to go solar couldn’t obtain credit. The solar tax credit was set to expire on 12/31/2008 and modules were in short supply causing upward pricing pressure. It was a perfect storm threatening to swamp our nascent industry and left me questioning my departure from the software world.

Enter 2009, and everything changed. Solar module prices are plummeting as European subsidies dry up and manufacturers race to capture U.S. market share. Increased competition among solar integrators continues to drive down installation costs; and a renewed ‘cap free’ solar tax credit has pushed investment returns on solar systems into double digits for many customers. Most interestingly, I now hear daily from customers they are making the choice to forgo a new car this year and go solar instead. Why? Many declare their next car will be electric and they “want to be ready for it.”

This cultural sea change is incredibly gratifying to see. What existed on the bleeding edge in 2007 is becoming mainstream in 2009. I believe in certain markets (like California), we are 12-18 months away from a true tipping point.

With my Aptera 2e pre-ordered; a solar system chugging away on my roof; and a promising career ahead of me, the prospects for solar have never been brighter. For those readers ready to embrace a renewable future, know that your decision will influence others and that is where you’ll make the biggest impact. You must lead so others can follow. Welcome to the revolution!

A Healthy Graph, Spending on Daily Lattes vs. Solar Energy Costs and Savings

Even in this dicey economy, the rule of marketing put forth by Seth Godin in his simple but important book, Purple Cow, holds as true as ever: Be Remarkable. Though pocketbooks across the country are tightening, people still ache for stories they can tell their friends, new experiences full of memories that are easy, even fun to spread.

Take this example: I love sushi. A lot. There’s something about the freshness of the fish, the warm texture of the sticky rice, how well the ginger pairs with salmon, and the feeling as though you are partaking in a cultural ritual centuries old, yet as thriving as ever.

Two small sticks, fresh fish, rice, and soy sauce. Awesome.

As it turns out, I’m not alone in my love of sushi… especially in Portland. There are dozens of sushi restaurants here. However, some flounder even though they don’t serve that type of fish, whereas others are talked about from here to the other side of town. Why?

The good ones are remarkable.

One restaurant I like quite a bit for lunch is called SushiLand. This is your typical sushi track type of place, lots of variety, fresh fish, and very reasonable prices. You can have 8-10 plates of excellent rolls and nigiri for about $14.

My favorite plate there is called the “Ricky Special”. It is full of value and flavor and… it isn’t on the menu. Maybe I’m a food nerd, but I get some kicks out of telling friends about a super secret roll most don’t even know exists. It feels like you’re part of a very small SushiLand subculture when ordering it. It is 4 pieces of avocado filled maki, topped with chunked maguro tuna and salmon, fish roe, and spicy mayo. All that for TWO dollars. People are floored every time I introduce them to it.

This story is going somewhere. Honestly. Here’s the SushiLand salmon nigiri:

At $1.50, many consider this to be a bargain. Now, put together two of these plates, side by side and you have quite a satisfying spread of salmon, right? $3.00?

Now, check out the salmon nigiri at my other favorite sushi restaurant, Saburo Sushi in Sellwood:

These are serious hunks of fish, you’ve never seen sushi this chunky and large. The last time I was there, the guy next to us actually whipped out a pocket knife, smiled at us, and said, “What? You need this thing to cut through the big hunks of fish here”. He’s right. This for sure is two or three bite nigiri. If you try putting this down your throat in one gulp you’re gonna wind up choking.

This nigiri, a similar amount of fish as two plates at SushiLand, or any other sushi place, checks in at $3.75. However, people cannot stop talking about this place and their sushi. Since I’ve moved to Portland 4 years ago, there’s been a constant line around the building from the time the place opens right up to the time they need to close. Every night, Saburo needs to turn people away at the door, sometimes a full hour before they are scheduled to close. Again, same price for the same amount of fish, but it is simply presented in a remarkable way.

What does this have to do with solar you might ask? Well I’m thinking of new ways to present the value proposition of solar in a way people want to share with their friends. About 2 years ago, I created this ridiculous graph of spending on the Iraq war compared to the amount of dollars our government was investing in solar energy research and development. The figures were so wonderfully misaligned, and presented in a similarly unique way, people were compelled to share it with their friends. Nobody had ever seen a graph this large or striking. It was like the Saburo Sushi of bar graphs.

People talked about it from Portland clear across the country, even other parts of the globe were chattering about it. We actually got trackbacks to the site in Korean, Russian, and Chinese. I still don’t know what they were saying specifically about it, but this experience taught me quickly how important the power of being remarkable really is firsthand.

So, I am now working a Costco event for REC Solar, chatting to people about solar and doing my best to convince them why solar makes so much sense here. Verbally, it’s difficult when people just hear the large upfront cost. But, I’m beginning to feel as though if I had a really ridiculously giant bar graph here. You know, one that went maybe 50 feet up in the air which said, this is the amount of dollars you will be going to save by installing solar over the next 25 years at the top. Next to it, I’d have two smaller similarly sized bars that are the total cost of the system after incentives, and maybe the amount of money they spend over 5 years on lattes. Basically, the cost of solar would equal a bunch of lattes, but instead of getting fat, you’d get to save like $20,000.

I think if I had this by my side today, I might have a little more luck:

The above figures are accurate in Oregon. They assume a latte costs $3.75, your solar system is $7.75/watt installed, you install a 3kw system, being able to take advantage of the state’s $6,000 residential energy tax credit, the 30% Federal tax credit, and the Energy Trust of Oregon’s $2.25/watt cash rebate. The panels are warrantied to be producing electricity at 80% of their original capacity at year 25 and you pay off your system in year 8. Heck, even if you move after 5 years, your property value will increase by slightly over $7,000 by going solar so you’re already in the black when you sell your house. The cost of solar in Oregon after 5 years pales in comparison to buying a latte every day for 5 years.

To see how much you could save by installing solar in your state, simply get free quotes from us! For goodness sakes, they are free, easy, and you’re not obligated to buy anything and you won’t get spammed. Go ahead already, our friends nationwide are waiting to hear from you!