San Francisco Solar Energy - David Llorens
If you would like me to evaluate your home or business to see if solar energy is right for you, please fill out this form below to request a solar evaluation of your home or business:
In San Francisco we have the opportunity to set an example for the rest of the United States.
With the new SF Solar Credit (info at sfsolarsubsidy.com), combined with state and Federal tax credits, a progressive and environmentally conscious group of citizens, not to mention an abundance of unshaded flat roofs, San Francisco is an empty canvas waiting to be painted into a distributed renewable energy network.
What you’re about to read is going to change how you think about solar power in San Francisco. Even if you don’t make the switch right now, you’ll be glad you’re armed with this information. First, we’ll illustrate why you, a Bay Area homeowner, should seriously consider switching to solar power. Then explain to you why my own company’s solar solutions are unbeatable. Next, we lay out how the whole installation process works from start to finish. Finally, I show you why I am the guy you want to come out to do your site evaluation. Check it out!
Why Solar?
* Property Value Increase – The Appraisal Journal wrote this article about how every dollar you save in energy efficient modifications to your home is worth $15-$20 in resale value. So let’s say you own a home in the San Francisco Bay Area and you install a solar power system on your roof, and it ends up saving you $4000/year in electricity bills. That means your SF home would increase in value $60,000-$80,000. That’s more than the system will cost, so your initial investment is recouped immediately and pays a $4000 dividend the first year. Also, this property value increase is a function of energy savings… so if PG&E’s rates go up, so does the value of your home. My real estate buddies in the bay area are backing me up on this one, and with the housing market on the rocks, the California homes with solar energy are selling twice as fast. Like “hot cakes,” says the LA times.
* Tiered Pricing – Look at the chunk from a PG&E bill below. After you go over your “baseline” allotment, PG&E begins to charge you more for the power you consume… all the way up to $.364 per Kwh! This is going to go up even higher soon with new “PG&E smart metering.” The important thing to note here is that solar power can eliminate the top tiers of this power… the expensive part.
* Net Metering and Time of Use Rates – When you get solar power photovoltaic modules installed on your roof… you are credited for the power you produced when you don’t use it all. So if you are producing more power than you are using during the day, you get to sell that back to the grid! ALSO, when you get solar power installed in San Francisco, your installer will apply for a Time of Use (TOU) rate schedule from PG&E. This is a rate schedule that makes power more expensive than normal (way more) during “peak periods” and less expensive during non-peak periods. Well guess what, when does solar work the hardest? During the day. When are peak periods? During the day. So your solar power system is cranking out more juice than you are using during the day, and selling it to PG&E for say $.32, and then buying it back later that night for $.08. Buy low, sell high, my friend. (Oh yah, plus you only have to pay at the end of the year, so you get the added opportunity cost of whatever you could have done with that money throughout the year)
* Rate Increases – PG&E rates since the 70s have gone up about 7% a year, and in recent years it’s accelerated. The Sun will never charge you more than it is now.. $0. PG&E will. With the energy crisis, I can’t imagine it getting better than worse:
* Credits, Credits Credits! – The California Solar Initiative has offered billions of dollars in credits for solar. It started at $2.50 per watt capacity of the system and will step down in 30 cent increments as more and more people install. You can see the CSI trigger page for more details on where it is. At the last update of this page in December 07, we’re at $2.20 per Watt capacity of a solar system. In addition, San Francisco will probably have an ADDITIONAL solar energy credit system. BTW, look at your PG&E bill… You’re already subsidizing the California Solar Initiative credits, so you might use that money!
* Federal Tax Credit – Until the end of 2008, residential photovoltaic installations qualify for a $2000 federal tax credit. That’s not a deduction, that’s a credit…. Good as cash once tax day comes. It is in ADDITION to the CSI credit.
* IT’S NOT UGLY!!! – The new Sun Power photovoltaic modules are not only the most efficient out there, they are prettier than the other guys as a result of moving the conductors to the back. Don’t tell me these aren’t pretty.
* Let’s not forget it’s good for the environment – I think we all know this. If you have solar you generate clean energy. It’s a good thing. The focus of this page is trying to beat in the fact that it’s cost effective too. A lot of people out there still assume solar power is only for the altruistic, but it’s not. It’s a better return on your money than the stock market. Soon this “critical mass” of understanding will reach a tipping point, and it will be universally understood that Solar Power Rocks financially, just like owning a home does. It’s like buying instead of renting. Your money works towards something you OWN instead of evaporating into thin air each month.
* Solar Power is Cheaper now than it ever will be – I know this sounds crazy. In fact, it’s contrary to every piece of literature out there, but it’s true. The technology is not getting cheaper, it’s getting more expensive. Energy prices rise and that makes production costs increase. Shipping prices are also skyrocketing. Demand is explosive, supply is scrambling to catch up. Our costs are increasing, not decreasing. If you want to get into solar, now is the time…. Use the credits while they are here which will be retroactively applied to any new installs. This means if you installed a reasonably sized 3000 kW system in San Francisco, you would get $6,600.00 from the state of California.
Why have Next Energy Solar install my Solar Power System?
The short answer? Because I work for them. I don’t mean that I’m a crucial cornerstone of their operation…. I’m not. I mean that when I decided to get my hands dirty to learn the industry, I interviewed at a lot of places. Next Energy Solar has the guts and grit and old school “customer is always right, quality first” attitude. They have experience, good leadership, and controlled growth. Solar power is supposed to last a long time, and a company needs to be able to stand behind its warranty. A lot of the companies I interviewed with put the “cart before the horse,” so to speak. (just check out our solar customers’ testimonial videos)
HERE IS WHY WE ROCK:
* We are a Sun Power Preferred Dealer – This is a big deal. We get to sell the best panels on the market, and we get guaranteed inventory and a good cost basis. When demand is high and other people are made to wait months for fulfillment, our warehouse is full. Waiting for stock will never be a bottleneck with us as it will be with many others. NEXT ENERGY SOLAR INSTALLED THE VERY FIRST NORTH AMERICAN SUNPOWER SYSTEM!
* We sell Sun Power panels and Sun Power inverters in one system - If something goes wrong with a system you won’t have to worry about the panel company pointing the finger at the inverter company or vice versa, because they’re the same company. The warranty covers the system as a whole, not parts.
* Been doing business for 30 years – Our CEO, Randy Kauffman, is serious about quality. He’s been in solar power for 30 years. Think Brian Dennehy in “Tommy Boy.”
* We have our own installation crew – This is another big deal. You get solar, you got people coming out and drilling holes in your roof. You don’t want this to be some 3rd party contractor, do you? You want to know that they are highly specialized and trained in what they are doing. We have our own crew and NEVER outsource. They all take Sun Power certified training courses and have experience coming out of their ears. They are PROFESSIONAL.
* Outstanding warranties – We back our Panels for 25 years, inverters for 10 years, and installation for 10 years. Anything goes wrong we’re out there on the double. Something else to think about when thinking about warranties is that we’re going to still be around in 25 years to back that up. A lot of other guys won’t. They’re not thinking 25 years ahead, they’re thinking 3 years ahead to their corporate “exit strategy” for reselling their company after their explosive unsustainable growth. Customers WILL be left out in the cold. Not ours.
* Marine Grade Installation Practices – Our mounting is stainless steel and heavy grade. Our sealant is expensive. Our cabling is thicker than it has to be. We do everything we can to make sure your system works like it should.
* We have an in-house engineer – Bob Halk designed nuclear power plants, and now he designs your solar power systems. A lot of other companies outsource this just like their installation. This guy’s seen it all, and knows how to design the best possible system for your situation.
* Quick Turnaround – While we apply for your CPUC solar power rebate, design your system, and apply for permits, we’re ready to rock in about 8 weeks. Some people think that’s a long time but that’s as long as it would take to get application for the CPUC rebate back anyway. With our in house designer, in house install crew, and relationship with Sun Power, coupled with the fact that we haven’t overextended our growth, we have one of the best tournaround times in the industry. Some installers will make you wait 6 months, and other’s I’m not sure will even be in business by the time they say they’re ready to install.
* We have a Financing Partner – We can help you finance the solar power project. Often times the loan payment is lower than the electric bill, plus the interest is tax deductible. Not to mention you are paying towards something you own, instead of your money evaporating every month.
OK, solar sounds interesting, how does the whole process work from beginning to end?
1. Site Evaluation: What would I look for when evaluating your property? Well, three things… Orientation, Shading, and your Power Consumption.
* Orientation: Here in the northern hemisphere, the sun looks like it’s to the south of us. It rises in the east and sets in the west, and it’s angled differently in Summer than in Winter. As a result, the optimal placement of solar panels is facing “true” south tilted up towards the sun at 22 degrees. So the first thing I would do is look at your house on satellite Photo (below) and look at the roof orientation. If you don’t have a southern facing roof with the right angle don’t worry, other orientations and tilting may not hurt efficiency that much thanks to Sun Power’s etched surface that helps absorb sun from all angles.
* Shading: Pretty self explanatory. Are there taller buildings or trees blocking the sun? Shading negatively effects photovoltaic modules. Even if you shade out a segment of a panel, you can still knock out the whole panel. Note, clouds are not shade (see the FAQ at the bottom)
* Power Consumption: Now I would need to know how much power you use. This is done by looking at a year of your power bills. If you don’t have a year of power bills… that’s OK, but the more data you provide, the more accurate we can get with the size and cost of the optimal system. You can get your PG&E usage by going to pge.com and logging into “my account” (if you don’t have one, sign up). Go to billing->then usage history in the blue menu on the left. Ideally I would like to view scanned copies of a years worth of power bills, but I understand this is tedious and that some of you want to get moving asap.
2. Cost Benefit Analysis. Does solar work for you financially…. Is it going to put money in your wallet?
Take a look at the guy’s power bill near the top of this page. He’s paying $607 a month for power. Now I understand that may be way more than you pay, but what we’re going to talk about here still applies. Look at the tiers. PG&E says this dude should be using 380 Kwh per month… That’s his “baseline.” Unless you have a compost heap and turn the shower off between soaping up and rinsing off… You’re not the kind of person that only uses 380 kWH a month…. Almost no one does. So once you go over that PG&E charges you more, but not much… that’s tier two. Than you start getting to tiers 3, 4, and 5. Now we’re talking about 22 – 36! cents per Kilowatt-hour. That is A LOT. 11 cents is a bargain. That’s a little cheaper than solar, but those upper tiers… solar is WAY CHEAPER. So our goal is to get rid of those upper tiers, unless you just want to eliminate your whole bill (also an option).
OK, SO BRASS TACKS, WHAT DOES A SYSTEM COST?
Check out our solar power calculator to get a rough idea, but I’ll just tell you a rule of thumb. First, remember your system will vary from the guy’s next door. Different types of roofs, ground mounts, trenching, angling, or high efficiency panels are just some of the things that can change the price. But work with $10 per watt capacity of the system. Also remember that California (right now) is crediting $2.20 of those watts, so work with $7.80 per watt capacity of the system (and when you work out that number, don’t forget the $2000 fed tax credit and the property value increase). Here’s a solid chart:
3. Installation. What happens if decide to own one?
If you like the way the numbers work out or you’re just gung-ho solar and you want to move forward, what happens? Well, you sign a sales contract and make a $1000 deposit. About 8 weeks later a big yellow pod shows up on your doorstep. The installers jump out and scare the hell out you… Ok, I’m kidding, the pod is full of your solar panels and Sun Power gets some excellent free marketing with their giant yellow pod sitting in your driveway and everyone wondering what’s in the box. Then in a day or two our installers arrive and put in the system. When your panels arrive the rest of the balance is due. This takes about 2 days for a reasonably sized residential gig, and add some more days for sophisticated systems like large ones or ground-mounted systems.
Why have David Llorens come out to do your evaluation?
* I like solar power – I think it rocks. I think it’s free energy from the sun and that everyone should have it. I actively learn about it. I write about it.
* I’m an electrical engineer – I have a degree in electrical engineering from the University of Illinois at Champaign/Urbana. Solar Power is pretty simple stuff. Amps, Volts, Watts… I get it.
* No BS or Sales Tactics – I’ll just lay the numbers out there. Everything is on the table with me. I believe in what I’m selling and I just want to get all the information out in a coherent fashion. I think it sells itself. You should never be pressured into owning something you don’t want.
* I live in San Francisco - The best city in the Galaxy. I’m never leaving. I’ll gladly drive all over the place too if you don’t live in San Francisco, and I mean anywhere.
FAQ:
But solar panels are ugly right?
No no, not ours, they are beautiful. Personally I think they look better than rooftop. We always take the rooflines into account and make it as pleasing as possible. Also, thanks to Sun Power putting the photovoltaic conductors on the BACKSIDE of the solar panels, you’re left with an aesthetically pleasant panel:
Will putting solar power on my roof make it leak?
Our systems are marine grade. They are rated and could be used on boats if we felt like it. We live in the San Francisco bay area; there is salt in the air. Add that to different metals touching each other and you get electrolysis and corrosion. We use copper conductors and keep all the metal joints the same so there is no corrosion. Just as an example, look at this guy:
These things are pricey; they’re about $5 bucks a pop. When the Sun Power solar panels arrive, they have a screw included to connect each panel. We throw that screw in the garbage and use a tin-plated version of this connector you see here, to go above and beyond the manufacturers recommended installation practices. So to answer, the mounting to your roof and sealant used are serious business… They will not leak, and we back them up with a 10 year warranty.
Solar Power in San Francisco? With the Fog?! You’re kidding, right?
Fog is not the same thing as shade. Solar Power works in fog and when clouds are overhead. Depending on how foggy, rainy, or cloudy a day it is, it varies but on average it’s probably 25% effective. Remember, solar power is a YEARLY gig. You don’t pay until your “true-up” period at the end of the year. SF has sunny times and foggy times. It balances out. FACT: San Francisco gets more sun than Sacramento. (Yes, I’m serious). Finally, Sun Power panels are better at absorbing a wider spectrum of rays than their competitors, getting at more UV light that gets through clouds.
I should probably wait for that new credit I read about, the $5000 one offered by San Francisco for Installing Solar Power, right?
That credit is retroactively applied. Get solar now to get the CSI credits AND federal tax credits in ADDITION to that.
What about thin film or that new technology that focuses sun’s rays onto chips?
They are not cost effective for residential installation and probably never will be. Thin film is extremely inefficient and thus requires a great deal of space. This is only cost effective for say, a giant warehouse with a roof that can be completely coated. It is NEVER meant for residential applications. The other focusing technology is not cost effective either, its way more expensive. Photovoltaics are where it’s at for homes, period. People sometimes think they should wait… but just add up all your power bills between now and when that technology arrives (if it ever does), and tell me if it was worth it.
I have to pay you when the panels show up before you install? That doesn’t sound right.
The CPUC rebate is assigned to us so you don’t have to pay that up front. That is your insurance. We don’t get that rebate unless the system is installed and IS INSTALLED RIGHT. And that rebate is more than our profit margin anyway, so if we didn’t put the system in like we said, we’d be losing money.
Does getting solar power in San Francisco take me completely off the grid or am I still attached to PG&E?
You will still be connected to the grid. “Islanding,” or removing yourself from the grid requires storage capacity for your electricity. That means batteries. That is a huge maintenance issue. Solar Power has no moving parts and requires next to Zero Maintenance. Batteries are the opposite. Also, they are expensive. At the time, battery systems are not cost effective. Maybe in 5-10 years they will be.
Help our Company Grow!
Solar in San Francisco hasn’t reached critical mass. No one is interested because “The Joneses” don’t have it. But let me tell you, once the Joneses get solar, solar energy in San Francisco is going to explode. It’s important during this key time to give solar power a good name, to satisfy people so they spread the word. Help Next Energy Solar grow by promoting solar energy in your neighborhood.
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