Pasadena Water & Power (PWP) is about to slash its rebates by as much as 55% effective May 1 - the first rebate reduction in three years. Here are the details…
We have said it before and we will say it again, our hometown utility gets the highest marks for running the best, hands down, rebate program around. Their folks are responsive, they have offered a consistent program since we got into this business, and their rebates have been among the highest offered in our service area. The present rebate rates: $0.85/Watt for residential and small commercial, $1.60/Watt for small non-profit systems have been at that level since 2012 - even while system prices dropped by 25%. (For large systems > 30 kW, the commercial rebate was 12.9¢/kWh of actual production paid over five years, while the non-profit version was 24.2¢/kWh.)
But all good things must end, including these great rebates - and they will, come May 1.
The new rates are significantly less generous - $0.45/Watt for residential and small commercial, $0.90/Watt for small non-profit. For larger systems the change is even more dramatic, with the rebate payout now only covering two years of production (instead of five) at the rate of 14.4¢/kWh for commercial and 28.8¢/kWh for non-profit. (One bit of good news, the threshold for systems to be paid rebates over two years instead of at commissioning is going up from 30 kW to 100 kW.)
So what do these rebate reductions really mean? Let’s look at a few examples.
A typical residential project of 5 kW (AC) that submitted a rebate application before May 1 would secure a rebate worth $4,250 (as opposed to na da in SCE territory). That same system will only receive a rebate of $2,250 - leaving an even $2,000 on the table. Ouch!
A 50 kW non-profit project would earn, over the next five years, a rebate worth approximately $92,400. But after May 1, only two years of payments will be made worth just $44,600 - a 52% reduction, leaving $47,850 blowin’ in the wind. Double ouch! The one side benefit, since this project is smaller than 100 kW (even though it is over the old, 30 kW threshold) it could qualify for the up-front rebate of approximately $39,200 at the time the system is commissioned - less money overall, but you get it faster.
A commercial project of 150 kW under today’s rebates would earn roughly $148,000 over five years, but for rebate applications submitted after May 1, that rebate drops to just $66,900, a reduction of 54.7% leaving nearly $81,000 waving bye-bye. Brutal.
All is not lost, yet. We still have a month and if you act RIGHT NOW you can still take advantage of the higher rebate rates! To lock-in the higher rebate, we need to get your energy usage, do a site evaluation, send you a proposal, have you accept the proposal and sign a contract, and we need to get your rebate application on file before May 1. (I feel a bit like our friends at KPCC - “we need 67 people to call in the next five minutes to meet this challenge…") Yeah, that’s a fair amount of work in a short time, but if you jump on this opportunity, we can make it happen and you can save some serious money! So don’t miss the boat… Call us, or click on the “Let’s get started” link here to begin.
New year, same battle.
We have reported for some time about efforts by the Investor-Owned Utilities (IOUs) like Pacific Gas & Electric (PG&E) to do what they can to make rooftop solar less attractive, if not kill it outright. This report from NPR demonstrates how that fight is playing out here in California, and elsewhere.
As we begin the new year, this story is an important reminder that supportive public policy doesn’t just happen, and there are forces arrayed against this industry that would like nothing more than to make rooftop solar - the sort that homes and businesses can use - go away completely. (Ironically, this is at the same time that utilities are investing ever more in their own solar facilities - such as this one in Colorado, or this one in California - as a hedge against carbon regulations and unpredictable fossil fuel prices.)
If we are to defend and expand the ability of average home and business owners to lower their bills while reducing their carbon footprint, we will need to be proactive this year in supporting the policies, and politicians, that allow that to happen.
Just in time for the start of the holiday shopping season, we are pleased to be offering Founder & CEO, Jim Jenal’s hit solar sensation, Commercial Solar: Step-by-Step at fantastic savings. What could be a better gift for the solar fans on your shopping list?
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Starting at 8:00 a.m. on Friday through Midnight on Monday night, you can purchase the Kindle e-book for just 99¢ - that’s 80% off the regular price! Still like your books in paper? No worries, we’ve got you covered there, too! The paperback edition is available for sale from our Run on Sun online store for just $5.95 - 40% off the list price!
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So set your clocks and don’t miss out on this rare opportunity to own the most highly praised book about Commercial Solar available anywhere!
“Jim Jenal’s guide to commercial solar is a thorough, quick, and easy read. The text is manage-ably dense with information, but chatty and easy to understand. Jim knows what he’s talking about, which is nice for those of us who do not. The process is laid out in step-by-step instructions with examples to illustrate all parts. Thanks, Jim, for making commercial solar seem attainable.” Evyn Larson
We wrote back in May about the number of solar permits that were pulled in March of this year statewide for solar (PV) installs and were surprised to see San Bernardino county leading the field and in a big way. Well we just got a peak at the data for July—what surprises might it bring?
Compared to the March data, things have really heated up, with the statewide total of 6,521 permits representing a 67% increase over the previously reported 3,901 permits! Our leader board has changed dramatically as well, with San Diego County grabbing the top spot with 10.5% of the statewide total. San Bernardino drops from first to seventh, while Los Angeles County—far and away the state’s population leader—was just barely able to beat out tiny Placer county (home to a twenty-seventh of LA’s population).
Unfortunately the data does not report the size of these projects, merely their valuation, which can be an unreliable data point since it is not verified in the permitting process. In any event, total valuation for the month was in excess of $105 million, with Riverside county taking the lead ($13.9 million), followed by Orange ($7.9), Fresno ($7.5), Kern ($7.4) and then San Diego ($6.8). PV valuation in LA County was just $4.8 million. Of course, give the nightmare of doing business in LA County’s largest city—a topic we have discussed previously, and one to which we will return in future posts—LA County’s laggard numbers should come as no surprise.
UPDATE - We heard back from BWP - details at the end of the post…
The wizards at Burbank Water and Power have announced their solar rebate program will resume, but only for the lucky few who happen to be facing West. Here’s our take.
Having a stable, predictable solar rebate program is the key to making a solar program successful. Municipal utilities like Pasadena Water & Power, and investor-owned utilities (like SCE) participating in the California Solar Initiative, have had great success with their programs.
Then there are other munis, like Burbank Water & Power (BWP), that just can’t seem to get it right. BWP, like its similarly misguided neighbor, Glendale Water & Power, has had an on-again, off-again rebate program that baffles all who attempt to make use of it. Now, for a brief moment, BWP’s solar rebate program is on-again, sort of. During the month of August, potential Burbank solar customers are allowed to submit rebate applications (submission deadline is August 29 at 5:00 p.m.) for a lottery to be held on September 8th. The lucky 60 residential and 15 small commercial (<30 kW) customers who make the grade (no details on how the auction will actually be conducted have been released) will be advised of their good fortune by September 12th. Rebate amounts are $0.96/CEC AC Watt for residential and $0.73 for small commercial.
But wait, there’s more.
For the first time in our experience, a utility is limiting rebates for solar systems to only those which face in a generally westerly direction. In fact, systems facing true south are completely ineligible for rebates (as shown in the image to the left), even though such systems are the most productive!
BWP is essentially precluding the overwhelming majority of building owners from even having a chance at a rebate in their lottery system.
This continues a trend we have seen with other muni utilities (GWP we are talking about you) where solar programs are designed to be unsuccessful. It will be interesting to see if we can extract any data from BWP about the results of their lottery.
BWP’s Stated Rationale for Restricting System Azimuth
But why the restriction in the first place?
According to BWP, it is to insure that the power produced comes closest to overlapping with BWP’s peak afternoon demand from 4-7 p.m. Thus to qualify, systems have to be oriented between 200 and 270 degrees and have a minimum tilt of 5 degrees.
That seemed pretty arbitrary to us.
While we could understand a utility wanting to limit providing rate payer money to systems that yield the maximum benefit to those rate payers, there is certainly nothing magical about a limit of 200-270 degrees. In fact, somewhere around 270 should be the sweet spot for afternoon production, with a fall-off on either side. So why cutoff systems beyond 270 degrees?
We decided to run some models using NREL’s PVWATTS tool. We assumed a 10 kW system at a 10 degree pitch (a common residential roof pitch) and accepted the other defaults for the model. We then calculated the hour-by-hour output for systems with azimuths ranging from 200 to 330 degrees. Here are the results for the critical hours from 4 to 7 p.m.
All of the azimuth angles in the green box are acceptable to BWP, whereas all of the azimuth values in the red box are deemed unacceptable for a rebate from BWP.
But here’s the thing… see that green horizontal line? That represents the 4-7 p.m. output for our hypothetical array with an approved azimuth of 200 degrees. Yet five out of six azimuth values modeled here that are rejected by BWP, actually produce more power during the critical period than does our approved system at 200 degrees!
So what exactly is going on here? BWP’s asserted rationale does not hold up to scrutiny. Which begs the question, why, really, is BWP so seriously limiting who can participate in their lottery? It certainly is not justified by their desire to maximize 4-7 p.m. production. If that were truly the case, they should include azimuth angles all the way to 320 degrees. They would get more timely power production while opening their rebate lottery to many more potential customers.
How about it, BWP, what is going on here?
If you are a potential BWP customer who falls outside of the “accepted” azimuth band, you might want to contact the Solar Support program managers:
John Joyce: firstname.lastname@example.org or
Alfred Antoun: email@example.com
If you get a response, please add it to the comments.
UPDATE - We heard back from John Joyce, Solar Support Program Manager at BWP, about the outcome of the lottery process. According to Mr. Joyce:
105 lottery entries have been submitted and the budget is sufficient to allow each of these applicants to participate, therefore no lottery will be held.
We have a further inquiry in to Mr. Joyce to see if there is still budget left over to allow more applications going forward. We will update this again if we hear back.