Category: "Commercial Solar"

01/30/18

  03:28:00 pm, by Jim Jenal - Founder & CEO   , 689 words  
Categories: Solar Economics, Commercial Solar, Residential Solar

Solar Tariffs - What Does this Mean for You?

After months of discussion, the Trump administration imposed 30% tariffs on imported solar cells and completed solar modules (like the LG modules that we use exclusively). The news made a pretty big splash, but it has mostly left potential solar clients confused about what it really means. We are still sorting through this ourselves, but here are our preliminary thoughts.

How did we get here?

Last April, bankrupt panel manufacturer Suniva—operating out of Georgia, but actually a subsidiary of China’s Shunfeng International—filed a trade case claiming it was damaged by the “dumping” of inexpensive solar modules from China and elsewhere.  They sought trade protection in the form of tariffs to drive up the cost of competitor’s products, so that their panels would be cheap enough for people to purchase.  We wrote at length about this at the time: Suniva - the Tail Wagging the Dog

Shortly thereafter, SolarWorld—another manufacturer operating in Oregon, but German owned—joined the case.  The irony here is that some of the modules targeted by this trade case - like our LG modules - are already considerably more expensive than those made by Suniva or SolarWorld!

Moreover, solar module manufacturing tends to be highly automated, meaning there just aren’t that many jobs at issue; whereas rising prices could seriously impact solar installation jobs, which are far more numerous (and which can’t be outsourced, for that matter!). 

Despite all of that, the Administration imposed tariffs in the name of protecting American jobs.

What will this do to the cost of solar?

Which brings us to the obvious question of what will this cost consumers.  First and foremost, for our clients, if you have signed a contract with us, your cost will not change at all.  Indeed, our pricing changes on February 7, so contracts signed before then will be unaffected as well.

But we aren’t going to see a full 30% price increase on modules because prices have been mostly flat for the past six months.  That means that the normal price decreases we have grown accustomed to haven’t happened while LG, and every other manufacturer, waited to see what would happen.  In fact, it looks like our most popular module, the LG 335’s, will only increase in price by 13%.  Moreover, module costs are no longer the driving number in our solar installs, accounting for between 20 and 25% of the total system cost.  That means that a module increase of 13% translates into something like a 3-4% overall increase.  A useless waste of money to be sure - but not a game changer.

Exempt Me!

LG makes a premium product that is substantially different than the product offerings from either Suniva or SolarWorld.  For example, the LG 335’s that we have been installing lately are N-type modules, compared to the P-type modules sold by Suniva.  Beyond that, the LG 360’s that we are installing are back contact N-type modules, making them doubly more sophisticated that what the complainants offer.  These are premium products that do not directly compete with the more standard, commodity offerings that they are accused of harming.  Bottom line - people choose the LG modules that we are offering because they are a clearly superior product, albeit at a premium price.

While I’m no expert here, it is my understanding that a manufacturer can petition to be exempted from the tariffs if they can demonstrate that they do not directly compete with the complainants’ products.  LG is pressing that point, and it is possible that they will prevail in their argument and be exempted entirely from the tariff, although we won’t know that for some time.

Stay Calm - and Go Solar!

The bottom line here is that as short-sighted and ham-handed as this decision was, it will not radically change what we do and how our clients will be charged.  If you were considering going solar, there will be little economic impact to the value of going forward due to this new tariff. 

So let’s all take a breath, stay calm, and continue to do what we’ve been doing for more than a decade - helping people by putting the highest-value solar systems on their roofs, providing them with clean, affordable energy for years to come.

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10/25/17

  04:09:00 pm, by   , 145 words  
Categories: Commercial Solar, Residential Solar, Ranting, Non-profit solar

Building Client Trust - Podcast with Run on Sun Founder & CEO, Jim Jenal

At Run on Sun we work hard to build trust with our potential clients, and to maintain that trust with those who choose to go forward with us.  Recently, our distribution partner, BayWa, r.e. asked Run on Sun Founder and CEO, Jim Jenal, to join a podcast discussing that very issue.  Jim shared the mic with Tom Miller, Creative Director at BayWa, and Pam Cargill, Principal at Chaolysti Interactive, a consulting firm focused on improving the solar industry.

Although Jim was a bit embarrassed by the title - “In Jim We Trust” is a bit much - he stands by the thoughts expressed!  Check it out:

We would love to hear from both clients and other installers alike - how important is it to build trust?  What do you do to achieve that end?  And what happens when that trust is damaged, how do you make things right?

09/26/17

  08:41:00 am, by Jim Jenal - Founder & CEO   , 232 words  
Categories: PWP Rebates, Commercial Solar, Residential Solar, Non-profit solar

Pasadena Solar Rebate Ends December 31st!

Pasadena City Hall - home for Run on Sun and Pasadena Solar

The Pasadena Solar Initiative - clearly the best run solar rebate program in SoCal - is ending December 31, 2017!  Here’s our take…

For PWP customers, this means that you need to get a complete rebate application on file before the end-of-year deadline.  You then have six months from the date of the reservation to complete the project.  The rebate, while it lasts, is $0.30/Watt for both residential and commercial customers, and twice that, $0.60/Watt, for non-profits.  If you have been sitting on the sidelines wondering when would be the best time to go solar in PWP territory, well, here’s your answer: Now!

The PSI has been around in its present form almost as long as Run on Sun has been in business, and we would be remiss if we didn’t take a moment to give credit for this wonderful program.  Over the past nine years it has been a model of how to run a rebate program: open, transparent, easy to participate with predictable rebate amounts, and no sudden interruptions in availability.  (Cf. alleged rebate programs in Glendale and Burbank, or the horrible SGIP program.) 

We are proud to have worked with all the folks behind the PSI at Pasadena Water & Power and they have done a terrific job! We are greatly appreciative of their hard work, particularly Mauricio Mejia, Irma Cid-Lujan, Alex Gonzalez, and John Hoffner.  Thanks for a successful nine years - well done!

05/24/17

  06:58:00 am, by Jim Jenal - Founder & CEO   , 230 words  
Categories: Commercial Solar, Residential Solar, Non-profit solar

Support KPCC and Save on Solar with Run on Sun!

KPCCHere at Run on Sun we are big NPR fans, and particularly our own, Pasadena-based affiliate, KPCC.  Great local programming, as well as all those wonderful NPR shows that we live for!  (And hey, Kai Ryssdal, we are still waiting to do that interview on the business of solar!)

But between  now and the end of May, KPCC is having their annual Online Auction with over 500 cool things to bid on!  Well, we believe that Run on Sun is Pasadena Solar, so of course we had to get in on the action with not one, but two items for a lucky listener!  Check these out!

Residential Solar

For one lucky listener, Run on Sun will give you $500 off on your residential solar installation!  The bidding starts at $150, so you have a shot at tripling your money, all the while helping to make your local NPR affiliate that much stronger!  Bid on your Residential Solar Discount here!

Commercial/Non-Profit Solar

For that commercial facility or non-profit considering solar, have we got a deal for you!  $1,000 off your commercial/non-profit solar installation, 20 kW or larger.  (New client contacts, only.)  Bidding starts at $300, so again, you could end up tripling your money, and provide a big boost to KPCC.  Bid on your Commercial/Non-Profit Solar Discount here!

But you have to ask fast - the auction closes May 31 at 7:00 p.m. - so don’t miss out, start bidding now!

04/17/17

  01:54:00 pm, by Jim Jenal - Founder & CEO   , 205 words  
Categories: Commercial Solar

A Tale of Two Roofs

We were talking with our favorite distributor - BayWa r.e. - the other day about their  new Southern California warehouse location and so, like any Google-Earth-obsessed type we immediately loaded in the address to see what we could see.  It’s pretty impressive, check it out:

What is wrong with this roof?

That’s a pretty impressive space, with tons of truck docks (though most were empty) and dozens and dozens of skylights.

But heck, we are a solar company and we couldn’t help but note that boy do they need solar on that building!  And it isn’t like that is an original thought for one of these enormous distribution centers out in the Inland Empire.  In fact, there’s one just like it up the road - check this out:

Now that's how you do it!

Wow!  Now that’s how you do it!  A ton of solar, dancing around the skylights!  (And see how successful adding solar made them - look at all of those trucks!)

Don’t know who did that job, but we tip our cap to them.  Every warehouse/distribution center/enormous flat roof should be covered in solar panels  If you own such a building and it is presently looking sad like the first roof, give us a call!  We’d be happy to help you put that space to a profitable use!

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Jim Jenal is the Founder & CEO of Run on Sun, Pasadena's premier installer and integrator of top-of-the-line solar power installations.
Run on Sun also offers solar consulting services, working with consumers, utilities, and municipalities to help them make solar power affordable and reliable.

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