Thoughts on Solar by Run on Sun's Founder & CEO, Jim Jenal

We were informed today by a representative of Pasadena Water & Power that they are planning on increasing their rates as of July 1.   Presumably this will have to go before the Pasadena City Council before it becomes effective, and we do not yet have any information on the magnitude of the proposed rate increase.  When we learn more, we will be sure to post it here.

However, when combined with the drop in solar rebates also tied to July 1, this date is becoming ever more significant as to the economics of electrical power for PWP customers.  This proposed rate increase will only increase the deluge of rebate applications descending on PWP in advance of the July 1 deadline.  Don’t delay, act NOW to be sure that you lock-in your rebate before the rebates go down - and your bills go up!

Yesterday I spent 90 minutes talking solar with the folks at Pasadena Water & Power.  It was a great conversation and it really re-confirmed my belief that these folks are true solar proponents who - while understaffed, overworked and underpaid - are working hard every day to make solar in Pasadena a reality.

Here are some highlights from our conversation:

• Regarding the July 1 decline in solar rebates – the decline is in response to not just built systems, but committed rebate allocations.  A big chunk of that is destined for Cal Tech which will be installing more than 1 MW of solar in 2010.  (In many respects it is only right that Cal Tech should get the biggest share of the rebate funds since they are the biggest electric customer in PWP’s service territory.)  All the more reason for the rest of you folks to get on board now before the rebates go down!
• AB 920 – the folks at PWP emphasized their desire to have solar customers participate in the AB 920 rate-setting hearing process.  They anticipate contacting solar customers before the hearings occur so that customers can have their voices heard.  Of course, we will be blogging more on the AB 920 process as the hearing(s) approach.
• Support for the LA Grand Solar Tour – although the details are yet to be worked out, PWP expressed interest in assisting with, and perhaps even co-sponsoring the LA Grand Solar Tour - the signature event for LARES (the Los Angeles Renewable Energy Society) the now-forming Los Angeles chapter of ASES.

Pasadena Water & Power announced today, February 16, that it will be dramatically reducing its rebate payments for solar installations as of July 1, 2010.  Here’s a summary of the rebate rate changes compared to the existing structure:

These substantial rebate reductions - announced without any prior public comment or discussion - are all the more curious given that PWP also reported today that it is less than 7% of the way to its stated goal of installing 14,000 kW by 2017.  Two years into a 10 year program, by which time PWP should have reached the 20% mark to be on track but instead has seen less than half of that get installed, PWP drops its rebates dramatically. Hard to see how these reductions will help PWP meet its goal.

One thing is very clear - if you are a PWP customer considering adding solar, the time to act is NOW.  Give us a call, we can help!

As expected, Pasadena Water and Power’s AB 920 notices started to arrive in customer mailboxes this week.  Unfortunately, the notices raised as many questions as they answered.

The notice consists of a letter to the customer, a form for the customer to fill out and return, and a set of “Frequently Asked Questions.”  More about each after the break.

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The attached memo reports on Pasadena's progress toward becoming part of the LA County AB 811 program.  The good news is that Pasadena appears to be on-track to start funding solar projects under AB 811 by late Spring or early Summer of next year.  We will be keeping a close eye on this program throughout LA County and will provide updates here on the Founder's Blog.

If you have questions or comments about the AB 811 program, we would love to see them posted here.  If your city has not yet committed to participating, please let us know and we will work with you to provide materials and support that you can use to spur your city council to get with the program!