We spent some quality time on the exhibit floor, and at the social events, of last week’s Intersolar North America and here’s our take.
The show felt smaller, to be sure, and we didn’t see anything that created a real “Wow” moment. (Possible exception, the mini solar race cars which were very cool, but they didn’t really have much to do with anything.) With SPI looming in just a few short weeks in, wait for it… Las Vegas Man™… it was hard to shake the feeling that manufacturers were keeping their powder dry until October.
Of course, not everything was smaller.
The folks at Mechatron won the prize for the largest solar device at the show—an enormous solar tracker (which we were told took them a day and a half to assemble inside the hall!)—that has more than a bit of a Transformers feel to it.
Sadly it wasn’t moving during the show…
Given the show’s smaller feel you would expect some well known names to be missing and you would be right.
We are happiest to report that the number one no-show was last year’s Sexism Public Enemy Number One: RECOM. Although they had a significant presence at Intersolar in Europe a month ago, they were nowhere to be seen at this show, and the folks from Intersolar confirmed that RECOM had originally booked a booth but then cancelled without explanation. Did they back out due to the backlash over their nonsense last year? We can only hope…
Inverter manufacturers Enphase Energy, KACO and SMA were all missing from the floor—although that’s no surprise for Enphase who never shows at Intersolar, and who had a large presence elsewhere in co-hosting the Tweetup (thank you!) and the Solarfest.
SMA, although not on the floor did manage to take a swipe at its competition with this banner (that’s a really, really big banner!) and a van parked outside touting their market dominance—in the past.
We are all for made in the USA, but what percentage of the show attendees were walking around with smartphones that were made somewhere other than the USA? Uh, pretty much everybody.
Not clear that this is a winning argument, or even SMA’s best argument given that their TL inverters are a very cool product. If your only presence is going to be a banner, why not tout an actual benefit of your products?
Our stated goal for the show was to identify a new racking supplier to replace our now discontinued standard (Unirac’s late, great, Solarmount Evolution) and toward that end we spent a lot of time on the third floor where the racking suppliers hung out. Continuing the recent trend, there was a lot on display.
A study in contrast could be found between the displays at the Shoals and Schletter booths. Both supply racking gear. Both offered coffee in the morning and beer in the afternoon. And both had attractive women handing out the drinks. The difference? The women at the Schletter booth actually work for the company (in a wide variety of jobs, other than marketing) whereas Shoals insists, defiantly, on promoting the Booth Babe culture with models in black cocktail dresses. (Leading to scenes like this of guys standing around to photograph the models. Not sure how that promotes solar or Shoals’ products.)
Still we did see racking systems that we liked. Iron Ridge has an interesting rail shape which they insist is stronger than other products, and their CEO, William Kim, seemed very eager to connect with installers and learn from their experience—something that other companies need to do!
But our overall winner at the show was Everest Solar Systems. Talk about learning from installers, all of their components are pre-assembled so the installer doesn’t find herself on a roof missing a bolt. The parts work together in an intelligent fashion and seem designed to streamline the process on the roof where it matters.
For example, here is a picture showing their end clamp assembly (and attractive end-cap for the rail) and there are a number of features here to like.
To begin with, the clamp is extra wide giving you a firmer grip on the module. The clamp has a small spring inside which means that once inserted in the channel, the clip stands up at full height, making it easier to insert the modules under the clip. (The mid clamps also have this feature which we think is a great idea.) The black piece next to the rail is a plastic grip that the installer can use to position the clamp in the rail and turn to align it properly—another clever feature which should cut down on fumbling on the roof.
Equally well thought out are the splices (which do not use self-tapping screws, thank you) that provide structural strength while allowing for thermal expansion. Oh, and there’s no drilling required on the roof!
We are eager to give the Everest system a try on an install very soon.
As we have seen in previous years, enthusiasm for intelligent storage systems is high, while actual products are few. And even when a product is on display, it is not always clear that the folks talking about the product have really thought it through.
Take, for example, this potential offering from LG.
We say potential because this is really a concept vehicle, not something you can order now. Indeed, the decal on the box proclaims that the product will debut in Europe the second half of next year. Roll-out in the US is not slated until sometime in 2016.
More troubling though was, in our view, a misunderstanding of the nuance in this market. The box shown has a storage capacity of only 2 kWh—less than a tenth of the daily energy output of a 5 kW solar power system. How and when will that energy be deployed to assist the homeowner in reducing their bills? In talking with the LG rep, we started to explain the differences between how you might use that energy under a tiered rate structure versus a time-of-use structure. Instead of being told that their software was designed to handle those differences, we got a mostly blank stare. Now that could simply be that the rep wasn’t fully up-to-speed on how the box is designed to operate, but it was not encouraging.
What is encouraging is that electronics giants like LG are starting to get serious about this opportunity and from what we have seen from LG in the solar module space, we are confident that they can develop a compelling product offering—just not yet.
Meanwhile, last year’s show standout for really grokking this space, Stem, was nowhere to be seen. Nor was their SoCal competitor, CODA. Perhaps both are keeping their chips in reserve, hoping to make a big play in Vegas at SPI. Watch this space.
Finally, we have two things to report under this topic—one cautionary, the other celebratory. Caution first.
Creeping up on the entire California solar market is the issue of Fire Code regulations that have the potential to bring things to a screeching halt come next January. We are still trying to get up to speed ourselves on this issue, but there were fire code regulations that were supposed to go into effect last January but were postponed because no one had a technical solution for meeting them. That postponement was for only a year, however, which means that come 1/1/15 we are subject to these regs.
As we presently understand the issue (and feel free to offer clarifications in the comments), roof systems are rated under classes A-C based on how resistant they are to an outside source of combustion (think of a burning tree limb resting on the roof), with class A being the most resistant. Solar modules on the market today generally have a class C fire rating. The new regs would say that where a roof system is required to be class A (as in high fire threat areas), all components on the roof must also be class A—but if there are no class A rated solar modules, such buildings would be unable to add solar. Moreover, even if a module were designated class A, it would still have to be tested with the roofing system to ensure that the combined system were class A.
If that weren’t bad enough, there is an additional categorization pertaining to fire spread, and because roof arrays more than a few inches above the roof act like conduits for spreading flame, such arrays cannot pass the flame spread requirements. Yikes!
Both module manufacturers and racking reps that we brought this up with gave us a deer-in-the-headlights response initially (with the exception of Barry Cinnamon’s Spice product offering), with some subsequently saying that they were working on the issue.
As noted above, we are still getting up to speed on this issue and we will have much more to say about it in the coming weeks. Watch this space.
Finally, our Battle of the Bands karma continued to rock at Intersolar.
For those not in the know, the annual Battle of the Bands has two, parallel sets of competitors. On the one hand are the house bands from various solar companies who go head-to-head to see who will be crowned the best of the best. But just as fierce is the competition to get a ticket to the closed event!
Two years ago we got in on sheer force of personality (not ours, but that of Solar Fred) and last year Jeff (Solar) Spies’ crew at QuickMount PV provided the ducket. But alas, not this year.
We were directed to another booth where there was a raffle we could join, but no luck.
Yet then, we turned the corner and found ourselves at the NABCEP booth where Sue Pratt was about to raffle off two tickets. We tossed our biz card into the bowl (complete with NABCEP Certified logo, thank you very much) and then crossed our fingers. When the first card pulled turned out to be a no-show, Sue dug deep—and pulled out our card! How cool was that? (We gave the second ticket to another installer who had just had his hopes dashed by our good fortune—gotta pay that Battle of the Bands karma forward!)
Lots of photos from the party (though oddly, many are strangely blurry—sorry about that Kathie & Jessica) but we will leave you with our favorite—may your karma be so good next year!
Just in time for the 4th of July, we are offering a special Commercial Solar sale, as in a sale on our book, Commercial Solar: Step-by-Step. Starting at midnight on the 4th of July, the Kindle eBook price will be just 99¢, a savings of 81% off the normal retail price. But a price that good can’t last forever, in fact, it will just last for 24 hours so don’t miss out!
What’s that you say, you don’t own a Kindle? Well, there’s a Kindle app for iOS devices (iPad, iPhone), for Android devices, and a downloadable app for both PCs (get it here) & Macs (ditto)! This is a great way to read a book, super convenient for folks who travel, and you can even take it with you to show to prospective clients!
So don’t miss this chance to own the most popular book on Commercial Solar ever written! See for yourself why reviewers have said:
“There’s so much information that you need to know when thinking about installing commercial solar. As a solar pro, Jenal provides all of it to you, clearly and transparently. Through a combination of a fictional company going solar and Jenal’s added in-depth insights to each step, businesses and facilities will learn how to find quality commercial installers and what to expect during the installation process. He also covers financing, solar incentives, and key points to analyze in a solar bid.”
“Whether you’re a potential solar customer interested in how to go solar or a commercial solar sales professional, this is a must read.”
“This book is written for the commercial building owner or facilities manager thinking about Solar Photovoltaic installation. It is very informative and covers all the aspects involved in a commercial solar project. [An] engaging and humorous read.”
“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.”
So get ready to celebrate Independence Day and download your copy on the 4th!
As a small business, Run on Sun is often approached about novel means of marketing, the vast majority of which we simply turn down. Part of that is the sense that we really wouldn’t be reaching our target audience very effectively—do people think about solar standing in the supermarket checkout line? Nah, we didn’t think so either.
But then, along came Volta and a marriage perhaps made in heaven: an ad for Run on Sun on an EV charging station! Even better, a free to the driver EV charging station at Whole Foods market here in our home town of Pasadena!!!
Voila—we present the first ever, Run on Sun EV charging station in the wild.
The car being charged is a Tesla (natch) and what we really loved about this marketing opportunity was that when the driver gets out of that car they are looking right at our ad. Pretty close fit to a target demographic too: EV drivers shopping at an upscale market in our geographic center.
Are the stars aligned here or what?
Well, actually, time will tell (the ad just went live on Thursday), but it certainly feels right.
The ad features one of our charming and talented clients (thank you, M!) posing before her Leaf with our solar installation in the background.
The message is simple and direct: Your car should Run on Sun! Indeed, for those of you taking advantage of the free charge at Whole Foods, your car is, at least for that charge!
The QR code in the lower right corner takes you to our newly minted, EV page on our website, where folks can learn more about solar charged driving and us.
And of course, since Whole Foods prides itself on providing locally sourced produce, we got in a reminder that Run on Sun is your local source for solar.
If you make it to Whole Foods (on Arroyo Parkway) check it out. If you are driving an EV and you don’t have solar yet, we hope this will inspire you to take the plunge. In the meantime, this charge is on us!
Pasadena Water and Power (PWP) is set to roll out an entirely redesigned Residential rate structure that could spark serious concerns if you are a big user of energy. Here’s our analysis.
PWP customers have been pretty smug (something we are apparently famous for) as we sit back and watch our neighbors in SCE territory suffer through significant rate increases. Well, no more. Now you too, fellow PWP customers, are about to feel the bite of a double digit rate increase. And here’s the thing—the more you use, the bigger that rate increase will be!
PWP has a somewhat hybrid rate structure, meaning that while the pure energy charges are the same no matter how much energy you use (in contrast with SCE’s four-tier rate structure), other components, most notably the customer and distribution charges, are actually tiered. In the newly revised rate structure the customer charge is now split out and is a flat fee of $7.76/month. The distribution charge, however, remains tiered under the new structure, albeit in an odd fashion. The first 350 kWh of energy per month see a low distribution charge of just 1.5¢/kWh. The next 400 are really jacked up: to 11.65¢/kWh before subsiding to 8.5¢/kWh for every kWh thereafter. Which raises the question: if you want to incentivize people to reduce their usage, why is the third tier lower than the second?
As a result of the change in structure as well as the rate components, the impact on your bill varies a lot depending on your usage, as you can see from the following chart:
As you can see, two bars (at 15 and 25 kWh) actually show rate decreases and the percentage increase continues to swing back and forth until you get to 35 kWh per day when the increase is monotonically upward.
Indeed, if you are sucking down 100 kWh/day, your rates will go up by nearly 50%!
Fortunately, very few customers are in such rarefied air as that; but a homeowner who had an average usage of about 25 kWh/day who then goes out and purchases an EV that she drives a lot, could bump into the 50 kWh range and she would see a 19% rate increase. Have a big house with a pool and a jacuzzi and a couple of EVs? If that gets you to 80 kWh/day your rate increase will be 40%!
In fact, it is actually worse than what we are showing here since this is only looking at the energy services part of your bill. On the left-hand-side of your bill you will find the Public Benefit Charge (tied to how much energy you use) and it is going up by 19%. On top of that are taxes that you pay on those energy services amounts and you can see that PWP customers, except on the lowest end of the scale, are in for some serious rate hikes starting July 1.
Of course, solar is the perfect hedge against these rate increases (and others sure to come in the future) and PWP still is offering the highest rebates around: $0.85/Watt. But in all likelihood we will see those rebates step down soon so now is the time to act! Give us a call at 626-793-6025 and let’s get started.
Yesterday we wrote about how SCE’s residential customers who take service under the Domestic rate structure could see their bills rise by 12% or more starting with their June bills, and we warned commercial customers not to get complacent about their own bills. Today we drop the other shoe: GS-1 and GS-2 customers, the bad news starts now.
SCE’s commercial customers (what it refers to as general service, hence the “GS") are largely divided into two groups: those that pay only for monthly energy usage (GS-1) and those that pay for both usage and peak power demand charges (GS-2). You can use all the energy you want in a month, but as long as your peak power demand never exceeds 20 kW you will stay in GS-1. Once your demand sneaks past 20 kW however, you will be assigned to paying higher bills under GS-2.
Solar for GS-1 users is a no brainer, just as it now is for SCE’s residential customers. For GS-2 customers, however, the question is a tougher call since it can be very hard to know how well solar will coincide with a potential client’s peak power demands, and it is those demand charges that so drive the pain of GS-2 bills. Neither GS-1 nor GS-2 are tiered, meaning that every kWh of energy is charged the same. Under GS-2, however, demand charges are significantly higher during the summer than they are the rest of the year.
We said that you could use all of the energy you like and remain in GS-1 but that’s not strictly true—if your peak power demand stays below 20 kW you can only pull so much energy into your site. Let’s imagine a commercial entity that is right under that limit: say 19 kW peak demand and they sustain that demand for 10 hours a day, every day. The remaining 14 hours their demand drops to just 5 kW. Their daily usage averages:
Usage = 10*19 + 14*5 = 190 + 70 = 260 kWh/day.
Under the old rate, this maxed-out GS-1 customer would have seen a bill of $15,355 or roughly 16.2¢/kWh. (A bargain, by the way, compared to what a residential customer using that much energy would have paid.)
Under the new rate, their bill jumps to $16,777 an increase of 9.26%, and now they are paying 17.7¢/kWh.
We recently provided a proposal to a potential GS-2 client, so we will model their usage to demonstrate what the new rates will do to a GS-2 customer’s bill. Their usage has peak demands that average 119 kW per year, but spike as high as 167 kW during the summer. Their daily energy usage is substantial as well, ranging between 600 and nearly 1,000 kWh per day from winter to summer.
Under the old rates, they were paying some $56,873 or 21.73¢/kWh. The new rates will see their bill climb to $59,598, and increase of 4.79%, averaging 22.77¢/kWh.
But here’s the interesting thing about the new GS-2 rate: it is actually more beneficial to solar customers, since the increase is mostly in the per kWh charge. Indeed, when we model our potential client’s savings in Year 1 under the new rate as compared to the old, it increases by over $1,000—going from $14,808 to $15,818, a 6.8% savings increase for no additional out-of-pocket expense! Their payback now occurs in Year 6 instead of Year 7, their IRR increases from 12.2% to 12.9% and they will have saved an additional $12,000 in Year 10 than they would have under the old rates. (Combine the solar power system with intelligent storage and you are really on to something.)
SCE’s rates are going up for all classes of customers that we see: residential (12%+), small commercial (9%), and large commercial (4.8%). Solar can help all of these customer classes, and GS-2 customers can see an even greater savings from solar under the new rates than they could before. Oh, and SCE still has some rebate money for commercial projects, but that won’t last for long.
Stop suffering, start saving—make this the summer you go solar.
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