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Why I'm Going to Sacramento

08/28/17

  11:53:00 am, by Jim Jenal - Founder & CEO   , 575 words  
Categories: All About Solar Power, Residential Solar, Solar Storage

Why I'm Going to Sacramento

These may be the dog days of summer, but it is the height of our busy season: multiple projects underway, lots of site evaluations and proposals to manage, and a growing backlog of repair requests on legacy systems that were built by installers who are no longer around. But instead of doing any of that, tomorrow I will be in Sacramento. Let me explain why…

Back in June we wrote about a bill that was then pending in the California legislature, SB 700.  Had it passed, that legislation would have created a predictable, comprehensive rebate program for energy storage throughout the state.  As last week’s eclipse made clear, solar power is having a large (and getting larger) effect on the grid, and the best way to smooth the path of that integration is to add energy storage.  But even on non-eclipse days, there is a substantial need for energy storage to time-shift the availability of solar - which peaks at noon - with the demands of the grid, which peak hours later.  Moreover, as more and more utilities force consumers onto evening-weighted Time-of-Use rates, it will become harder to make the economic case for solar without storage.

But the fly in the ointment is cost - storage today is just too expensive for most consumers. 

We are with storage today where we were with solar itself in 2007.  Back then, solar installations cost around $8.00/Watt - and next to no one had solar!  When the California Solar Initiative kicked off that year, it provided incentives starting at $4.00/Watt that would gradually step down as enough MWs were installed.  The theory then - and experience proved it to be sound - was that by incentivizing the installation of solar, the cost of solar would come down.  Today, the CSI incentives are gone, but the cost of solar is now below $4.00/Watt!  We cut the cost in half, and now solar is commonplace.  Success!

So why not repeat that process with storage?  Why not indeed?

One argument is that we already have a program in place for incentivizing storage, called SGIP.  But SGIP is massively bureaucratic, and operates as a lottery, meaning there is no guarantee that an applicant will get funded.  While neither of those conditions might be a deal-breaker for utility-scale projects (and utility-scale developers), they are a terrible fit for a program that is targeted at residential, commercial, and non-profit installations.  What is needed there is transparency, an easy application process, and a predictable - that is, marketable - rebate amount.

California state capitol

SB 700 died in Committee - I want to know why!

SB 700 would have done all of that.  Instead, it died in committee, without even getting a hearing, let alone a vote.  It died because the Chair of that committee - my very own Assemblymember, Chris Holden - decided to put it in his pocket.  Why did he do that?  I don’t know - he didn’t say.

I’m going to Sacramento to find out.

I should be staying here in Pasadena, helping folks get solar on their homes.  Instead, I will be getting on a plane first thing and flying to the Capital to meet up with other solar installers from around the state. Our mission - to try and impress upon the legislature how this bill would be good for the grid, good for their constituents, and good for local jobs.

We hope to do some educating, and at the same time, learn some important lessons ourselves.  I will let you know how it goes.  Watch this space…

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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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