History:

In January 2007, California launched an unprecedented $3.3 billion ratepayer-funded effort that aims to install 3,000 megawatts (MW) of new solar over the next decade and to transform the market for solar energy by reducing the cost of solar. The CPUC portion of the solar effort is known as the California Solar Initiative (CSI) Program. The CSI portion, the country’s largest solar program, has a $2.2 billion budget and a goal of 1,940 MW of solar capacity by the end of 2016. In addition to the MW goals, the program is also designed to emphasize performance, both for solar systems and the solar industry, by lowering costs and increasing efficiency.

In its CSI Annual Program Assessment Report to the Legislature, the CPUC said that California has over 600 MW of solar connected to the electric grid at nearly 65,000 customer sites. Of the 598 MW of capacity installed in investor-owned utility territories, 342 MW were installed under the CSI Program at 31,000 sites, as well as 256 MW installed through other programs. The non-CSI Program solar capacity was installed under other solar programs, including the California Energy Commission’s New Solar Homes Program and the CPUC’s Self-Generation Incentive Program and the Emerging Renewables Program.

Other program highlights from the report include:

• Demand is increasing. The CSI Program received a record of nearly 300 MW of new CSI project applications since January 2010 – more than any other six-month period since the start of the program.
• The program had over 134 MW of new projects applying in April 2010, the highest month on record for new solar applications.
• For every dollar spent on incentives by the state, there has been another $2.62 invested in solar technology in California from other sources.
• Program data shows a decline in the average cost of solar systems. The inflation adjusted cost trends show that prices have declined since January 2007 from $10.04/watt to $8.49/watt for systems under 10 kW.
• The CSI Program has reduced incentive levels several times since 2007 in response to program demand. Incentives started at $2.50/watt across the state, and now they are as low as $0.65/watt.

Over the next several months the CPUC is expected to consider various aspects of the CSI as part of an overall review of the program. As part of this effort, the CPUC will consider program modifications based on an assessment of the program’s progress in achieving its targeted MW goals, programmatic budget constraints, the current economic climate, solar market dynamics, other modifications based on the learnings to date, and associated staff recommendations.

The CSI program is part of the Go Solar California campaign, which has three distinct programs, each with a portion of the statewide budget and solar installation goals:

1) The CPUC’s CSI Program provides incentives to customers of Pacific Gas and Electric Company, Southern California Edison, and San Diego Gas and Electric Company. These three utilities represent about 75-80 percent of homes and existing and new commercial, industrial, government, non-profit, and agricultural properties. The CSI program includes several program components: a solar photovoltaic rebate program; two solar programs targeted at affordable housing (one for single family and the other for multifamily affordable housing); and a research, development and demonstration program. Additionally, in May 2010, the CPUC launched its newest CSI program component, the CSI-Thermal Program, which provides incentives for solar water heating systems. .

2) The New Solar Homes Partnership, managed by the California Energy Commission, provides incentives for the installation of solar PV on new residential construction. The budget is $400 million over 10 years, with a goal of 360 MW.

3) The Publicly Owned Utilities program requires each municipal utility to offer a solar PV incentive program, an aggregate commitment of $784 million over 10 years, toward a goal of 700 MW.
Since its inception in 2007, the CSI has consistently seen robust levels of demand for solar rebates.

• Three years into the state’s 10-year solar program, California is already 42 percent of the way towards its general market program goal in the territories of the investor-owned utilities. This figure includes both projects already installed and those currently holding reservations for incentives and in the process of being installed.

• California has over 600 MW of solar connected to the electric grid at nearly 65,000 customer sites. Of the 598 MW of capacity installed in investor-owned utility territories, 342 MW were installed under the CSI Program at 31,000 sites, as well as 256 MW installed through other programs.

• Demand is increasing. The CSI Program received a record of nearly 300 MW of new CSI project applications since January 2010 – more than any other six-month period since the start of the program.

• The program had over 134 MW of new projects applying in April 2010, the highest month on record for new solar applications.

• For every dollar spent on incentives by the state, there has been another $2.62 invested in solar technology in California from other sources.

• Program data shows a decline in the average cost of solar systems. The inflation adjusted cost trends show that prices have declined since January 2007 from $10.04/watt to $8.49/watt for systems under 10 kW.

• The CSI Program has reduced incentive levels several times since 2007 in response to program demand. Incentives started at $2.50/watt across the state, and now they are as low as $0.65/watt.

not to mention the millions of tons of carbon offset with these systems, the countless jobs added strictly because of integration, the tax revenue to the State associated with these integrations and material purchases, the avoided costs to tax payers of non-renewable burning sources of electric generation and “peaker” facilities…a darn successful program run and ran in the US.  It is tired though…tired and ready for a next level step…the Feed In Tariff.

A “feed in tariff” (the currency rate at which electricity is fed into the power grid) has proven to be the most successful incentive for rapidly expanding the use of renewable energy technologies to levels of great success for both Citizenry as well as Governments.

Feed-in tariffs have been used as a “stimulus” to jump-start the renewable energy industry in many countries.  They were widely adopted by countries in Europe such as Germany, which has repeatedly led the world in solar energy systems deployment, all because of their feed-in tariffs.

Feed-in tariffs have proven to be much more successful than the Renewable Portfolio Standard that is still presently used in the U.S..  And used in tandem…with the RPS as catalyst…the acceleration to the long term benefits of renewable energy and away from the nonrenewable, non-beneficial energy generation of fossil fuels is quick and seamless.

More specifically, a feed-in tariff is the price per unit of electricity that a utility or supplier has to pay for renewable electricity from private generators, such as a home owner who has, for example,  installed a solar energy system on their rooftop.

Feed-in tariffs are also known as:  Electricity Feed Laws, Feed-in Tariffs (FiTs), Advanced Renewable Tariffs (ARTs) and Renewable Tariffs.

Since Renova provides peak-shaving, demand side management, simple solar energy systems, solar co-generation and project development services for our residential, commercial, industrial and utility Clients, we will be helping to shape local FiT policy…which is sure to become the road map to a US FiT… and will unveil these rules to the public as they evolve.

We are now working closely with our State and municipal leaders, attorneys and affiliated sources to prepare and promulgate Power Purchase Agreements (feed in tariff agreements with the Utility), Energy Purchase Agreements, Energy Service Agreements for our clients that have our company install, own and operate one of our solar energy solutions for their qualified property.  The roll-out of our Coachella Valley Feed In Tariff Map will come as a helpful tool to those interested in leasing their rooftops.

Look forward to the feed in tariff…and all that this implies…at www.leasemyrooftop.com!

Solar power installations on large-scale solar farms (to bring down cost through economies of scale in manufacturing and discovery of innovation), commercial buildings (to offset these heavy, peak hour users) and residential homes (to conveniently feed into the grid through ALREADY EXISTING transmission entries) will all be needed to meet this RPS goal.

Solar power technology keeps the air clean while generating electricity.

Clean technology like solar not only benefits the quality of our own individual lives, but will provide a critical long-term benefit to the earth and the entire species of plants and animals that live on it.

Anyone disagree?

Come Visit us at The GreenZone!

Come visit us at The GreenZone between 7:30 and 6 from Monday through Friday…and, yes…even on Saturdays

Questions to ask if a homeowner is considering a solar lease or solar power purchase agreement

Since homeowners do not usually have an attorney and accountant to review the agreements, the following questions are good questions to ask if they are considering a lease or power purchase agreement to have a solar system installed on a home. Getting these questions answered in writing will help the homeowner in the event that a dispute develops later about the terms of the arrangement.

Installation

• Who is the installation company? (Not all financing companies have a contractors’ license so they will contract with an installation company to perform the construction work.)
• Does the contractor have a license to install solar?
• Does the contractor have workers’ compensation insurance?
• Is the contractor reputable and have a good track record for installations?
• Can the contractor file a mechanics lien against the house?
• Is there a separate contract for the installation of the system?

Contract terms

• What is the assumed inflation (sometimes called escalation) rate for the solar electricity payments?  (If the solar electricity payments escalate faster than the utility electric rates can the homeowner end up paying more for electricity over the life of the contract because they bought a solar system?
• Does the contract obligate the homeowner to buy the system at the end of the contract?  How much will the homeowner be expected to pay at the end of the contract? (Some contracts will state that the homeowner must pay the fair market value for the system. What is the value of the system after 10 years? 15 years?  What is the actual cash price at the end of the term (not adjusted down for value of money)?
• What happens if a homeowner refinances the house?  Are there any clauses or language in the agreement restricting this?   Are there any documents that the bank or appraiser will need?
• Who is insuring the system in the event of damage (due to accidental damage to the home or vandalism, for example)? Does the homeowner have to pay for any or all damages? What should the homeowner report to their insurance company? Assuming the company insures the system, will the homeowner receive a certificate of insurance naming the homeowner on the company’s insurance policy?
• Who is responsible for the warranty of the system?  Is the warranty to the homeowner from the installer or is the warranty from the installer to the leasing or PPA company? Who does the homeowner file a claim against if there’s a problem, like a roof leak?  Has the company had any claims?  How have they been handled?

Terms of the Contract

• Are there any costs to buy out the lease or PPA early in the first 5 years?  If the homeowner buys out the lease or PPA in the first 5 years will they have to also pay the company for the loss of the tax credits and depreciation?
• What is the implicit interest rate that the homeowner is paying in the lease/PPA?
• What happens if the homeowner needs a new roof and the system needs to be moved? Who will cover the module warranties if the modules are moved? (Many module manufacturers void the warranty if the modules are moved).
• Whose responsibility is it to restore the roof and replace shingles or tiles if the homeowner decides to have the system removed at the end of the term?

Sale of Home during term of Contract

• What happens if the homeowner sells their home?
• Can the contract be sold or assigned to someone else if the house is sold? What is the qualification process/what are the requirements for a new party assuming the lease/PPA?
• What if someone who wants to buy the house but doesn’t qualify to assume the lease/PPA?
• What if someone who wants to buy the house but doesn’t want the solar system?

System Performance

• Does the company provide production guarantees?  How is that tracked and does that affect the monthly payments that the homeowner makes (i.e., will the monthly payment be adjusted if the system under performs?
• Is the homeowner responsible for any of the maintenance or monitoring?
• Assuming the homeowner monitors the system, if there are production issues what is the company’s response time?

Fiscal condition of the Financing Company

• Is the company financially sound?
• Can the company sell the contract to a new entity?  Will the homeowner be notified?
• What happens if the leasing company or PPA company goes out of business?
• Could the system be repossessed or removed if the PPA/leasing company gets into financial trouble?
• Does the company maintain a reserve account for repairs? How much is set aside for repairs and are the funds kept in an escrow account?

Solar...through the looking glass.

The Chin Hua “solar window”, a small, slightly foggy pane that delivers 2W of light in the configuration you see in this picture. The glass can apparently be manufactured with more or less haze, delivering greater or lesser solar power efficiency. Once we get this glazing into cars we will protect, shade AND generate electricity to move our electric vehicles.

NABCEP Certification Grows 25% Following March 2010 Exam  Clifton Park, NY, April 27, 2010 – NABCEP
NABCEP would like to congratulate the 287 newly NABCEP Certified Photovoltaic and Solar Thermal Installers who were notified last week that they had passed the March 13, 2010 Installer Certification exams.
The PV Installer Certification took another giant leap with a 32% increase in candidates which ultimately led to 259 new Certified PV Installers ™. NABCEP has now awarded the PV Installer Certification to 1,196 installers around the country, a 27% increase since September 2009. In just two years, the number of active NABCEP Certified PV Installers has more than doubled from 517 in March 2008.
The ST Installer Certification saw a 10% increase in the number of candidates, and 28 candidates were awarded the Solar Thermal Installer Certification, a 100% increase from September 2009. NABCEP has certified 132 Solar Thermal installers to date. These numbers are very encouraging and mirror the progress of the PV Certification from 2003 until 2007. NABCEP expects the Solar Thermal Installer Certification to experience high growth in the next 1-2 years especially after the launch of some solar thermal incentive programs.
NABCEP will be launching a number of programs in the next year. In May, NABCEP will start accepting applications for the first administration of the Small Wind Installer Exam in September 2010. NABCEP has recently released the Job Task Analysis (JTA) for the much awaited PV Technical Sales Certification and will soon release the Eligibility Requirements for that Certification.
Ezra Auerbach, NABCEP’s Executive Director says, “The continued impressive growth of the number of individuals who have become NABCEP Certified speaks volumes about the acceptance of our program. The numbers speak for themselves – the growth of our certificant population shows the strong support that we enjoy from the industries we serve”.

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Pitch in to save the planet
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