The Energy Show: Recent Episodes
Barry Cinnamon
The Energy Show, hosted by Barry Cinnamon, is a weekly 30 minute talk show that runs every Saturday on KDOW Radio AM in San Jose California.
Every week Barry provides practical money-saving tips on ways to reduce your home and business energy consumption.
Barry Cinnamon heads up Cinnamon Energy Systems (a San Jose residential and commercial solar and energy storage contractor) and Spice Solar (suppliers of built-in solar racking technology). After 10,000+ installations at Akeena Solar and Westinghouse Solar, he's developed a pretty good perspective on the real-world economics of rooftop solar -- as well as the best products and services for homeowners, manufacturers and installers. His rooftop tinkering led to the development of integrated racking (released in 2007), AC solar modules (released in 2009), and Spice Solar (the fastest way to install rooftop solar modules).
Ever wonder how early investors turned a hippy solar energy industry into a $100+ billion worldwide industry? On this week's episode we sit down with Gerard Reid, co-founder of Alexa Capital. Way back in 2005 he was researching PV technologies in Berlin - that’s when he realized that combining the right financing with rapid cost reductions in the solar industry could be the foundation for some terrific investments. And he was right.Fast forward to 2024 and we are seeing even greater worldwide potential for the combination of solar and storage. Now it is pretty obvious that solar and storage will deliver dirt cheap electricity. The challenge now is to seek out the opportunities that are not constrained by incumbent industries or hostile public policies.Please tune into this week's Energy Show at www. energyshow.biz to get Gerard’s insights into the actions that early solar and finance companies took to set them up for such a global success story.
Will the future of energy be driven by massive utility solar farms or millions of local rooftop systems? John Farrell from the Institute for Local Self-Reliance shares his insights on how utility monopolies are strangling local solar efforts -- especially in California -- where monopoly utilities are locking customers into sky-high rates.The conversation delves into the growing trend of “grid defection” as consumers use their own solar and battery systems to reduce their dependence on utility power. With an appropriately sized solar and battery system -- with a little help from a friendly EV -- it is indeed possible to cut the cord with the utility completely. Locations with lots of sunlight and high electric rates will be the first places where people can cost effectively ditch their local utility.With all due respect to Alice’s Restaurant…could this be the start of a nationwide movement? Please tune into this week’s Energy Show episode at www.energyshow.biz.
Nuclear power will make electricity too cheap to meter,” a prediction made in a 1954 statement from the head of the Atomic Energy Commission. 70 years later I’m predicting that electricity will be almost free, but powered from that fusion generator 93 million miles away. Sounds crazy, but rooftop solar is already generating power for $0.06/kwh — compared to our average rates here in California of $0.45/kwh.As rooftop solar costs continue to decline and grid electricity costs continue to increase, we need to prepare for three traumatic energy industry changes:1. Gasoline demand will plummet as EVs dominate road transportation.2. Natural gas demand will decline steadily as heat pumps dominate space heating and solar dominates power generation.3. The utility business model will collapse as technological changes (solar and batteries) turn the electric grid upside down.Please tune into this week’s Energy Show as we dive into the capital costs, operating costs, ownership arrangements and timing for the four most common types of power plants. The results make it clear why utilities are trying so hard to stop the growth of rooftop solar and storage. For the details, please head over to www.energyshow.biz and listen to this week's podcast.
In the second part of this week’s episode, we dive deeper with Vince Battaglia, CEO of Renova Energy, as he unpacks the aftermath of SunPower’s shocking collapse.First, a quick recap of Part 1: Vince shared the inspiring 18-year evolution of Renova Energy. From thriving in the heat of Coachella Valley to expanding into Arizona, he explained Renova’s smart choices in solar and battery tech and their consistent maintenance approach. Most notably, Renova’s steady, conservative business practices have been key to their sustained success.Now, we pivot to the gripping story of SunPower’s downfall and its ripple effects. Vince details how Renova was impacted and the strategic, customer-first decisions that guided their recovery. His firsthand account sheds light on how they survived the upheaval—reinforcing customer trust, making swift adjustments, and doubling down on reliable business practices.Don’t miss this eye-opening discussion about navigating industry crises and what this means for the future of solar. Catch the full episode at www.energyshow.biz. Stay tuned as Vince breaks down the gritty details of SunPower’s failure and how Renova emerged stronger than ever.
This podcast episode, Segment 2 of our Enphase interview, delves into Module Level Power Electronics (MLPE) and the rise of advanced battery technology, with Enphase at the forefront since 2008. Segment 1, released a few weeks ago, is a good listen — especially for homeowners.Raghu Belur, co-founder and Chief Product Officer of Enphase, shares insider details on their success, market position, and IRA incentives. We'll also debate open vs. closed home energy ecosystems and discuss how rapid advances in battery and EV charging tech are outpacing regulations.Explore UL 3741, a new code enhancing solar safety and efficiency, and learn about effective Whole Home Backup system designs. Discover how Enphase is shaping U.S. and California energy policies and what changes are needed to slash costs and boost safety.Catch Segment 2 of our Enphase episode at www.energyshow.biz for the latest from Enphase’s perspective on the future of solar, storage and home energy management.
This podcast episode, Segment 2 of our SolarEdge interview, is for my fellow solar installers who crave the inside scoop on industry TLAs such as IRA, VPP, V2G, PCS and NBT. This is the geeky deeper dive on the latest technologies and policy perspectives from SolarEdge. Segment 1, released a few weeks ago, is a great listen for more of a customer perspective.Today’s podcast, the second SolarEdge segment, is focused on interests and needs for contractors -- both residential and commercial. Issues related to fire safety, maximizing energy harvest, commercial cost reduction and UL 3741 are among the topics we are discussing. And if you work in California, techniques to increase system size for existing NEM2 customers will also be covered.Joining us on these two SolarEdge podcast segments are Bertrand Vandeweile, SolarEdge’s new GM for North America, and John Ahlman, their Chief Marketing Officer.Please tune into this second of two Energy Show podcasts with SolarEdge at www.energyshow.biz.
What happens when your largest solar equipment supplier suddenly files for bankruptcy? And worse, they stop paying you for your ongoing projects? This is the nightmare scenario for solar installers everywhere.As the solar industry faces shifting policies, rising interest rates, and market turbulence, some companies are managing to thrive despite the challenges. One such standout is Renova Energy. In this week’s episode, Vince Battaglia, CEO of Renova Energy, shares the secrets behind the company’s 18-year journey to becoming a leading force in the Coachella Valley and beyond.In this first segment, Vince highlights Renova’s growth and expansion into Arizona, their smart approach to solar and battery installations, and how they’ve tailored their offerings to the unique needs of the desert region. With a focus on extreme heat conditions and local roofing demands, Renova’s conservative business practices and top-tier maintenance services have helped them build a reputation for excellence.Want to know how to build a resilient solar business? Please listen to this episode of The Energy Show for Vince’s insights on The Energy Show at www.energyshow.biz.
Anyone who pays an electric bill in California knows we’re in the midst of an energy crisis. The stark reality is that this crisis is enabled by politicians who lack the will to do something about it. But unlike many politicians, Sam Liccardo took action to lower electric bills when he was the Mayor of San Jose. Now, as candidate for U.S. Congress, Sam plans to tackle this these energy affordability problems on both a state level and national scale.Please join me on this week’s Energy Show as U.S. Congress candidate Sam Liccardo talks about his work on safer bike lanes, how a heat pump keeps his house cool, and of course affordable energy. Perhaps most important — how his "across the aisle" political philosophy will help him get things done in Washington, DC.Looking for real-world solutions to sky-high energy costs? Then tune into this week’s Energy Show at www.energyshow.biz.
FINALLY, someone who actually understands our crazy-complicated electric bills! His name is Dr. Ahmad Faruqui. I’m delighted to have Ahmad join me on this week’s Energy Show to talk about energy policy -- with a particular focus on why the heck our electric bills keep going up when it’s so inexpensive to generate power with solar and wind.It helps to have a PhD in economics, as Ahmad has from UC Davis. He started his energy policy career at the California Energy Commission, and then went over to the Dark Side at EPRI, the Electric Power Research Institute, after which he worked at the Brattle Group on energy consumer policies. So he understands the economic theories as well as the realities of the electric utility industry. New energy technologies, such as rooftop solar and batteries, have disrupted the 120-year old utility industry. Please tune into this week's energy show at www.energyshow.biz for an expert’s view on how these technologies should best be deployed to provide affordable and reliable electricity for everyone.
Unfortunately, there are a few "quick buck" solar companies that take advantage of unsuspecting homeowners. These ten tips will help you avoid these scam artists -- and get the best solar and battery installation for your home or business.1. Beware of the word “Free”2. Beware of TGTBT pricing and financing3. Don’t sign up on the spot4. Do not trust quotes generated completely online5. Beware of “free maintenance and cleaning” commitments6. Beware of optimistic system savings7. Research the company that manufacturers the solar panels you will install8. Research the company that manufactures battery SYSTEM you will install9. Understand your backup power strategy10. Do your own research on applicable incentives, credits and financing optionsDon’t let a bad deal or poor installation quality ruin your solar investment. Tune into this week's podcast at www.energyshow.biz
California’s clean energy future is on a collision course with profit-oriented monopoly utilities. From the Governor’s office to the California Public Utilities Commission to the Legislature, policies are being implemented that are leading to skyrocketing electric rates and record utility profits — while at the same time crushing California's rooftop solar and storage industry and knocking the state off track in meeting its own clean energy goals.It’s a classic David vs. Goliath story. Only, instead of “David” being one person standing up to the powerful utilities, given the unique power of solar energy, here, it is every ratepayer, every solar worker, every solar business fighting to protect the right for consumers to generate energy from the sun. And Bernadette Del Chiaro, as the Executive Director of the California Solar and Storage Association (CALSSA), is leading the fight for affordable, safe and reliable power for homes and businesses.
I bet you didn’t know that the “WH” in FranklinWH stands for "Whole Home." The Jersey Boys from Franklin designed their battery system from the ground up to help people back up their whole home without adding extra batteries or expensive load shedding subpanels. This capability has made Franklin one of the best selling battery systems on the market.Founder Gary Lam and Product Manager Doug Amarhanow — both Rutgers graduates — are my guests on this week’s Energy Show. In addition to integrated load shedding, the FranlinWH system also allows homeowners to expand their rooftop solar systems without triggering the Net Billing Tariff (or NEM3). On the near-term horizon is a capability that will allow EVs with a 240 volt generator output (such as the Ford Lightning and Tesla Cybertruck) to power a home independent of the grid.To learn more about these unique Whole Home backup features from FranklinWH, please tune into this week's energy show at www.energyshow.biz.
“SunPower” and “bankruptcy” are two words I never thought I’d see in the same sentence. But we should temper our schadenfreude. The solar industry owes SunPower and their employees tremendous gratitude. Without a doubt, our industry would be much smaller without SunPower’s early and determined leadership.So rather than dance on their potential grave, this week’s Energy Show will focus on SunPower’s accomplishments that I’ve witnessed first-hand over the past 20 years. Think about back contact cells; best dealer network; utility-scale installations on five continents; horsepower behind CALSSA and SEIA; Million Solar Roofs; uncapped ITC; Swanson, Werner, Shugar, Wenger, Blunden, Starrs; NexTracker and Renova. The list goes on.There’s plenty of news about SunPower’s demise. For the other side of the story, please tune into this week’s Energy Show at www.energyshow.biz.
Who would have thunk that you could put a 240 volt split phase inverter on the back of every solar panel? The gurus at Enphase and Akeena did, and I've been a fan ever since their first prototypes in 2008. In fact, I still have Enphase M-190 microinverters on my San Francisco home. Time for an upgrade? Probably!Our special guest is Raghu Belur, co-founder and Chief Product Officer of Enphase. We've discussed microinverters for 16 years, witnessing Enphase's rise in the solar industry. Raghu shares insights on their product lineup, market segments, manufacturing hubs, and how they're leveraging IRA incentives.We explore open vs. closed home energy ecosystems, and the integration of battery, inverter, software, and EV charging technologies. We also cover whole home backup designs, industry challenges, and Enphase's influence on energy policies.Don't miss Part 1 of this insightful interview with Raghu on home electricity costs and reliability. Dial your browser to www.energyshow.biz for the inside scoop on Enphase and their latest products.
You don’t have to be a Boomer to remember the days of simple DC wire connections to string inverters. For the most part, these times are long gone. Since 2010, module-level power electronics (MLPE) have taken over — and now, with batteries and advanced load control, solar systems have evolved into the energy focal point for homes.This Energy Show podcast highlights new capabilities from SolarEdge, broken up into two segments. Today’s podcast, the first SolarEdge segment, is focused on interests and needs for homeowners. We saved the geekier deep dive for installers in the second segment, which will be released in a few weeks.Joining us on these two SolarEdge podcast segments are Bertrand Vandeweile, SolarEdge’s new GM for North America, and John Ahlman, their Chief Marketing Officer. We dive into the benefits of optimized string inverters, batteries, and load control of multiple home devices. Discover why homeowners should care about lifetime system “energy harvest,” as well as the tradeoffs between open versus closed home energy ecosystems.Please listen to this first of two Energy Show podcasts with SolarEdge on www.EnergyShow.biz
Yes, definitely. Heat pumps are literally and figuratively cool. And without a doubt, the best time to consider installing a heat pump is when your AC (or furnace) dies.Heat pumps do double duty, providing both heating and cooling. They offer significant savings and improved comfort -- which I confirmed first hand after my old outdoor air conditioner compressor died. Replacing both my old AC and gas furnace with a heat pump was one of the best home improvements I’ve ever made. The system operates almost silently, has better temperature control throughout my house, and my heating and cooling bills are down significantly.New heat pump models use inverter-based variable speed compressors with efficiencies in excess of 350%. These high system efficiencies mean that your total heating and cooling costs will almost always be lower with a heat pump than an ordinary AC and gas furnace. And from a comfort standpoint, with mini-split models you can even heat/cool individual rooms in your house!Sure, a basic AC replacement might seem cheaper initially. But keep in mind, federal tax credits and state rebates (part of the Inflation Reduction Act) will bring down the cost of your heat pump installation by $2k-$10k. So in most cases it makes sense to price out a heat pump when your AC fails in the summer, or your furnace fails in the winter.Want to learn more? Tune in to the full podcast at EnergyShow.Biz and discover why heat pumps are the smart choice when your AC can longer stand the heat.
Are your solar panels covered in grime? You might be losing more power than you think. Let’s tackle the contentious question: "When Should I Clean My Solar Panels?" After just a week, your panels might look dirty, but surprisingly, most dirt doesn't significantly block sunlight. However, severe grime, especially on low-tilt panels, can slash your output by over 50%! So, what's the real impact, and when does cleaning become essential?Dust, pollen, and bird droppings all play a role in soiling. While a hard rain can wash most of it away, light rain won't do the trick. And if you're in a dry, sunny area, the situation gets worse. The numbers don't lie: a dirty panel can reduce output by up to 15%. With high electric rates and large systems, the economics of cleaning become more favorable. But beware of bad advice. Using tap water might seem easy, but it can stain your panels with minerals, potentially ruining them.This is argued to oppose conventional wisdom. It is believed that even tilted panels can benefit from periodic cleaning, contrary to some studies and expert opinions. Cleaning isn't just about aesthetics; it's about maximizing efficiency and protecting investments. But how should it be done safely and effectively? Avoiding common pitfalls and embracing proven techniques using deionized water and gentle detergents is recommended.Want to dive deeper into the dirty truth about solar panel cleaning? Tune in to the full podcast at EnergyShow.Biz for expert insights and actionable advice. Don't let dirt rob you of your solar savings – learn when and how to clean your panels for peak performance!
Are you sick of all the heat pump hype? Skeptical about why you should buy one right away? Don’t mind paying huge bills to your utility for methane (natural gas)? Even heat pump enthusiasts like us agree with you — they are definitely NOT for everyone.Here are five reasons why heat pumps may not be the right thing for your house:1. You don’t believe in global warming and prefer to burn fossil fuels2. Heat pumps are too expensive3. It's too complicated to install a HPWH or HP HVAC4. You rent your house or plan to move5. Your existing HVAC and water heater works fineWith all the tax credits, rebates and financing options, heat pumps are more affordable than ever. They deliver significant energy savings, offer better comfort and provide superior indoor air quality — even for complicated installations. With efficiencies over 300%, heat pumps are almost always less expensive to operate over the long term, and can be installed in almost all existing homes. On the other hand, from an economic standpoint it often makes sense to wait until your existing heating equipment dies before replacing it with heat pumps. If you don’t believe in the science of global warming, maybe saving money with a heat pump will change your mind. For the full scoop and a heat pump reality check, please tune in to the full podcast at EnergyShow.Biz.
This week's Energy Show dives into the tumultuous landscape of the clean energy industry, painting a picture of contrasting fortunes akin to the classic “Tale of Two Cities.” On one hand, we witness a surge in demand for clean energy, driven by improving economics, lower equipment costs, and rising electric rates, alongside enticing incentives. Yet, on the flip side, California experiences its first-ever decline in rooftop solar installations, coupled with a slowdown in electric vehicle growth and a resurgence of incumbent fossil fuel companies. Amidst this dichotomy, our guest, Jon Semingson, President of Peak Demand, Inc., sheds light on the critical challenges plaguing the industry's infrastructure and human resources. From a scarcity of skilled construction labor to a dearth of executive-level talent, the hurdles to industry growth loom large. Moreover, financing remains a linchpin, with uncertainties surrounding tax equity and interest rate trends. The urgency of these issues is underscored by the grid's perilous state, with transmission and interconnection queues adding to the mounting backlog of energy projects. As California grapples with policy-induced setbacks in residential, commercial, and community solar segments, the looming question remains: can utility-scale solar bridge the gap as electricity demand escalates, fueled by the surge in electric vehicles, AI, and heating needs?This podcast doesn't just highlight the industry's challenges but offers a platform for critical discussion and solutions. For a deeper dive into these pressing issues and insights from industry experts like Jon Semingson, tune in to the full episode at EnergyShow.Biz.
I read an avalanche of media criticism when Elon Musk fired his entire SuperCharger team a few weeks ago. In spite of all the whining, it was a good business decision for Tesla.Here’s why: expanding and running a fast charging network is a lousy business.Installation costs are high, permitting and construction delays are extensive, and revenues from charging cannot overcome the high electricity costs charged by utilities. According to a McKinsey and Company study in October of 2023, most EV fast charging sites are swimming in red ink, losing $45,000 a year at every 4 port charging station. A back-of-the-envelope calculation shows that a typical Starbucks in California would have to sell 56,000 extra cups of coffee every year just to break even on EV charging. That’s a lotta Joe.In spite of complaints about high gasoline prices, gasoline is a worldwide commodity with reasonable substitutes. Prices are set by the free market. But prices for electricity supplied to charging stations are set by utilities who have a monopoly on electricity sales. It's illegal for anyone other than a utility to resell electricity, so utilities can charge whatever they want. To make matters worse, Public Utility Commissions in many states let utilities run wild with sky-high electric rates and record profits.I’m a big EV fan, but the lack of EV charging infrastructure coupled with the extraordinarily high costs of charging will stifle the industry’s growth. California’s goal of selling only zero emissions vehicles by 2035 is a pipe dream. In order to hit that goal we need to quickly change the monopoly utility business model so that EV charging makes sense.But there's another faster and cheaper option: solar-powered EV charging. Solar charging is easy to do for homes — the average driver in California needs just 7 more solar panels to meet their annual driving needs. Taking it one step further, we should couple EV chargers with commercial solar installations. Think about it: shouldn’t we charge our cars during the day, when it's sunny, from inexpensive rooftop solar, at work, where the cars are parked? Instead of waiting to charge our cars at public stations which get expensive power from utility solar farms 500 miles away?Tesla’s Supercharger network challenges are just the tip of the iceberg. For more about costs and practical solutions to EV charging, please tune in to the full SuperCharger podcast at www.energyshow.biz
10 years in the solar and storage industry qualifies most industry veterans as a solar old timer. But there is one person who stands out as a beacon of leadership, longevity and success. Ed Murray has been heating water molecules (solar thermal), converting photons to electrons (solar PV) and saving customers money since 1978.That’s 322 dog years!Ed Murray, CEO of Aztec Solar in Sacramento, knows solar thermal, PV and storage technology like the back of his hand. He’s managed to run his successful solar business in spite of the “solar coaster” craziness.But what impresses me the most about Ed is his industry leadership. Ed has been on the Board of Directors of the California Solar and Storage Association for 40 years, has been serving as its president since 2016, has been on the Board of the North American Board of Certified Energy Practitioners for 14 years, and served on the Board of the Solar Energy Industries Association for 14 years.For a detailed dive into what it takes to be successful in the solar and storage industry for the long term, you don’t want to miss this episode of the Energy Show at www.energyshow.biz
It’s not a flippant comment or a classic jazz solo — but an existential question about the devastating trend our civilization is on due to climate change.The history of Earth Day shows how the worldwide environmental movement has evolved from concerns about in-your-face air and water pollution … to a focus on the invisible hazard of rising CO2 emissions.To a large degree we’ve cleaned up the worst of the visible air pollution, contaminated water, and toxic wastes hiding under a few feet of topsoil. In the first few decades of Earth Day, consumers, companies and governments were all pulling in the same direction to right these environmental wrongs.But something insidious happened due to the profits that can be reaped by polluting the Earth. Economists call it a Negative Externality (the imposition of a cost to one group of people as an indirect effect of the actions of another group of people). To fossil fuel companies, the negative externality they cause by producing oil and gas — which when burned pollutes the Earth with CO2 — is just a side effect to their record profits. For decades fossil fuel companies have been fighting and concealing this unprofitable truth.There is hope amidst this grim reality. The history of Earth Day shows how public opinion can indeed change this trajectory — especially as the effects of CO2 pollution impact all of us with flooded shores, burning homes and unlivable cities. For insights into our progress amidst this grim reality, please Listen Up to this week’s Energy Show.
Welcome back to Part 2 of our interview with Scott Sullivan, my friend and one of the best networked executives in the industry. Earthquake excitement has diminished in the New Jersey area, but seismic changes in solar continue around the country. In Part 1 we discussed what happens in the solar and storage industry — really every industry — when company profits decline. It’s a tough adjustment to make, and many companies have not yet recovered from this high interest rate environment.Nevertheless, the majority of companies have figured out the formula, and the topics that Scott and I discussed are summarized below:* What are the characteristics of a great solar and storage contractor? * What should potential customers look for in a contractor? * Have you seen any changes with the solar panels offered by contractors? * Have you seen any changes with the inverters and batteries offered by contractors? * Is solar financing recovering yet from high interest rates? * Are Virtual Power Plants (VPP) and Vehicle To Grid (V2G) technologies getting much traction? * And last but not least, what do you do for fun?If you missed any of Part 1 or Part 2 of our podcasts with Scott Sullivan, please visit ENERGYSHOW.BIZ and listen to the full podcasts.
Seismic changes in the solar and storage industry? Who would have thought that our friends in New Jersey would relate so viscerally? Their recent 4.8 magnitude quake in early April literally extended this metaphor across the country.Metaphors aside, the solar and storage industry is changing faster now than I have ever seen: Electric rates are soaring, along with utility profits Solar equipment costs — panels, inverters, batteries — are declining UL-3741 standards for rapid shutdown throw a monkey wrench into rooftop safety standards Demand for electricity to power our EVs and heat pumps is increasing AI is recently on the scene as the newest electricity demand wildcard Continued high interest rates are suppressing solar and storage financing Utilities have wised-up to rooftop solar and storage threats to their profits Hostile utility policies and relatively high interest rates squeeze installer margins, forcing many unprofitable solar companies out of business* Some companies have cracked the code for long-time success — how do they do it?For cross country insights into the impact of these changes, our guest on this week’s podcast is Scott Sullivan. I’ve known Scott for over 20 years. Not only is he the best networked person in the industry, but his depth of solar sales and marketing knowledge is a treasure for people trying to figure out what’s next.Scott and I had so many topics we decided to split the podcast into two episodes. So please listen to Part One of Scott’s podcast for his observations and advice for these metaphorical seismic changes in the solar industry.
March isn't just about shamrocks and leprechauns; it's also Women's History Month, highlighting the incredible contributions of women in various fields. But have you ever wondered about their role in the energy transition? In general, women are just as involved as men — not just in solar, but also in batteries, hydrogen, policy-making, electrification, and manufacturing. However, there's a glaring gap in representation when it comes to the construction side of energy systems.But not at Luminalt Solar under the leadership of Jeanine Cotter, their President and CEO. Luminalt is the leading solar and battery contractor in San Francisco. One would think that it would be easy to be a solar and storage contractor in a liberal city such as San Francisco. Until you try to find a space to park your van. Or navigate the city’s convoluted permitting issues. Or just try to find a place for a battery and inverter near the electric meter.In our candid conversion, Jeanine and I discuss her journey as she built a successful solar company in one of the most densely populated cities in the country. Unlike most contractors, she didn’t start with a construction background; instead, she is a licensed California attorney. Take it from me: knowing how to navigate the regulations, policies and laws that apply to the clean energy industry is one of the most critical skills that a solar and storage company must have.But it's not all business; we delve into the personal side too. How did Jeanine get into solar? How does she champion diversity, equity, and inclusion within Luminalt and the clean energy industry in general? And perhaps most intriguingly, how does she suggest women navigate the traditionally male-dominated construction industry?Please listen to the full podcast for Jeanine’s insights into achieving success in the solar and storage industry and be sure to visit The Energy Show at www.energyshow.biz for access to all Energy Show episodes.
The Learning Curve for understanding home batteries and solar systems is steep. Your battery system education will require mastering at least twice as much jargon, TLAs (that’s Three Letter Acronyms), specifications and industry gossip than ordinary solar systems. So if you don’t want to get bamboozled by an aggressive salesperson, this week’s podcast is a great place to start.Some of the topics and questions include: What is the best way for me to expand my existing solar system? What are the important assumptions -- such as shading, battery location and equipment compatibility — that I should verify with my salesperson? How long will my battery last during a blackout?Can my backup battery start large equipment, such as my AC or pool pumps? What’s the difference between AC- and DC-coupled battery systems, and why should I care? What changes do I need t make to add a battery to my existing solar system? What are the building code and fire code restrictions on battery installations in my city? Can I install two batteries alongside my house or in my garage? Should I install an Essential Loads Panel, or just go with Whole Home Backup?How can I connect a generator to my batter system? What are my alternatives to doing an electric service upgrade?Answers to the questions above are not obvious, and vary significantly based on your location, existing solar equipment, and the electrical wiring in your house. For all the details, please tune into this week’s Energy Show podcast at www.energyshow.biz.
The Utility Empire is striking back. As a result, the rooftop solar industry is experiencing its first decline in growth ever. In California alone the end of Net Metering has resulted in an 80% drop in rooftop installations and 17,000 job losses among passionate Rebel solar installers. Utilities in other states are following California’s lead, leveraging their Death Star-caliber monopoly powers and millions in lobbying money to further reduce competition.Even though we need rooftop solar more than ever, this solar industry decline may leave both new and existing customers in the lurch. New solar and battery customers have fewer, although some will say better, choices. And people with existing systems may find that their original installer is no longer around to support their system.Jedi Geoff Greenfield from Kokosing Solar joins us on this week’s Energy Show. His suggestions will help both new and existing customers continue to benefit from money-saving solar and storage systems. He points out that there are still thousands of established local solar companies all around the country with the Force to be able to support their existing customers — as well as orphan customers.Here's the bottom line: if you're investing in solar, you need to choose wisely. There is a Dark Side to the cheapest or fastest solar and storage internet deal. In some cases the companies pitching these systems may not have the resources to complete your system, no less support it for its 25 year projected life. What may seem like a too good to be true deal may very likely cost you in the long run.Please tune in to the full podcast at www.energyshow.biz for Geoff’s wisdom and solutions for the best ways to navigate these changes in the solar and storage industry.
This week we’re talking about World Domination. Domination of energy production, that is. In the re-scrambled words of the wise and infamous Dr. Evil: “Why make Gigawatts when we can make…Terrawatts!”Indeed, solar is on track to completely dominate electricity generation. Solar is growing faster than wind, nuclear and LNG ever did. Alternatives to solar such as nuclear fission, nuclear fusion, CO2 capture and sequestration (CCS), and CO2 direct air capture (DAC) are way too expensive and very slow to scale to meet our needs. And with batteries sited with solar, we’ve solved the problems of intermittency and power when the sun is down.Costs for rooftop solar and storage are continuing to decline as manufacturing scale increases. According to the National Renewable Energy Lab (NREL), rooftop solar can meet 45% of our energy needs. The rest can be easily met with utility scale solar.So as long as we aggressively pursue deployments of BOTH rooftop and utility solar and storage, there is no doubt in my mind that by 2050 our society will be almost completely powered by solar. For more about Solar Power World Domination, listen to the full podcast at www.energyshow.biz.
If you’re thinking about solar there’s something important you should know. It should be obvious, but just in case: there is no such thing as Free Solar.Getting solar — or a battery -- installed on your house is not cheap and certainly not free. These projects are significant construction and electrical improvements. No company will install solar or a battery for free. I guarantee it.The Romans had a term for it: Caveat Emptor. Let The Buyer Beware.Unfortunately, disreputable companies still advertise Free Solar. I see these ads on the internet every day. Many states, including California, have laws against this type of false advertising. Nevertheless, these deceptive sales tactics persist. The U.S. Department of Energy advises people to watch out for “too good to be true” offers. Beware of hard-sell attempts to collect your personal data in exchange for a free solar or battery quote. Make sure the contractor you select has the proper installation and sales licenses. If you find yourself a victim of a Free Solar scam, your best option is to contact your state’s Contractor Licensing Board or Consumer Protection Department.Homeowners are even more vulnerable now that electric rates continue to skyrocket. My advice is to be patient, get educated about solar and battery technology, and get references from experienced local installers. These local companies are most likely to design a customized system, install reliable equipment, and provide the necessary service over the lifetime of your system.For more about the persistent and probably painful pretense of Free Solar, please tune into this week’s Energy Show, or go to ENERGYSHOW.BIZ.
It’s no surprise that this is the most common question, since the solar panels themselves are the biggest cost component of a typical rooftop system.But I’m not going to give you the single "Best Panel" answer you may be looking for. Sorry.With over 100 companies making solar panels worldwide — and vast differences in efficiency, aesthetics and reliability — there is no one answer. So instead I’ll focus on the factors and characteristics to help you make the best decision for your particular circumstances.When I think about my 20+ years of installing rooftop solar panels, I’ve come to the conclusion that highest efficiency, quality features, country of manufacturing, low light performance, annual degradation, rock bottom pricing, proprietary cell technologies, fancy advertising, long warranties and Top Ten lists DON’T REALLY MATTER! You can throw every one of these manufacturer claims and specifications out the window if the solar panel manufacturer goes out of business, or just arbitrarily decides to ignore problems with their product.What REALLY MATTERS is your confidence in the local installer you choose to install the system. That local installer’s business depends on happy customers for the long term. You can — and probably should -- pepper them with questions. Good installers will do their best to make good on warranties, even when the solar panel manufacturer disappears. So I suggest you trust their objective advice on the best panels for your particular roof space, orientation and budget.Please listen to this week’s Energy Show for my advice on finding the Best Solar Panels for your rooftop.
As in year’s past, we in California greet the New Year with yet another electric rate increase. It’s almost impossible to believe this time — but on January 1, 2024, PG&E raised electric rates by another 28.4% according to the San Jose Mercury News.Just follow the money. Since 2017, Utilities and the IBEW spent over $111 million on politicians and ballot measures to maintain their monopoly. So it should be no surprise that our government passed laws that make California’s peak rates the highest in the country.The Solar Rights Alliance compiled this list of Utility and IBEW Contributions from publicly available data. So you can see for yourself how much your own politicians -- from the Governor on down -- accepted in contributions.Please listen to this episode of the Energy Show as I connect the dots from these contributions to:...Anti-solar laws passed by California’s Legislature...The Governor's appointments of new California Public Utilities Commissioners...The end of Net Metering...An array of hostile rooftop solar policies affecting homes and businesses...Out-of-control utility spending on long distance transmission lines on which utilities get a guaranteed 12% annual profit...The impact on low- and middle-income residents...The crash of California’s rooftop solar and storage industry...The $500+ million budget deficit these job losses will create for California...And the $500+ million in extra revenue that utilities will rake in from these lost home and business solar installations.My two recommendations to reduce your electric rates are simple:1. Vote these politicians out, and2. Consider installing your own rooftop solar and storage systemTo view the list, please go to https://www.energyshow.biz/listaccessPlease forward this Energy Show podcast to any of your friends who are also wondering why their electric rates are so high.
I’ve added electrification predictions for 2024 to my customary set of solar and storage predictions. Electrification incentives in the Inflation Reduction Act (IRA) are already starting to drive demand for heat pumps and electrical upgrades, just as tax credits accelerated the solar and EV markets in the past.So here I go again sticking my neck out with these ten home energy predictions for 2024:EVs will be equipped with integrated 240-volt generators for home backup and evening powerHeat pump sales will surge by 25%Fewer than half of the newly announced clean energy manufacturing plants will be completedUtilities in other states will follow California’s lead to end Net MeteringResidential solar revenues in California will plunge by 50%A national-scale solar installation company will file for bankruptcyTesla will claw its way into the U.S. inverter businessVirtual Power Plants (VPPs) and Vehicle to Grid (V2G) will not gain tractionThe residential battery system business will consolidateIt’s Game Over for fossil fuelsFor more details on my Home Energy Predictions for 2024, please go to www.EnergyShow.biz.
It’s not a matter of IF your hot water heater dies – but WHEN. According to the Department of Energy, the average lifespan of a hot water heater is 13 years. So if your hot water heater is over ten years old – or if you’re planning to electrify your home -- the time to PLAN for a Heat Pump Water Heater (HPWH) is NOW.Heat pump water heaters have become consumer favorites — and the bête noir of natural gas companies – because they have efficiencies in the range of 200-300%. Much more efficient than gas water heaters (70-80%), electric water heaters (99%) and tankless water heaters (70-99%). Plus, there are no dangerous exhaust fumes or methane fuel.Their big disadvantage is that they are not an easy replacement for a tankless hot water system. This is because customers who have a tankless system almost never have space for a large hot water tank. So if you have a tankless system – whether inside or outside your house – a HPWH is usually not a good option.There are three reasons why the up-front costs for a new HPWH are usually higher than a simple replacement with a new gas or electric water heater. First, a HPWH is more complicated. Second, most HPWH incentives (except tax credits) require you to bring your existing hot water system up to current building codes. And third, you will need a dedicated 240 volt electric circuit for the most popular HPWH models.Net-net, it’s a little-known secret that these HPWH upgrade costs often negate the value of tempting IRA and local rebates.Nevertheless, heat pump water heaters will continue to be the gold standard for water heater replacements. Please tune into this week’s Energy Show to unlock the future of home domestic hot water heating.
The goal to cap global warming to 1.5C is just a pipe dream. At the rate the earth is warming we’ll hit that threshold in 2026 or sooner. And since our consumption of fossil fuels continues to increase without any meaningful reductions of airborne CO2 concentrations, we are on pace to hit 3C by 2035.It doesn’t take a doctor to diagnose the illness: our planet is sick from global warming. Or to determine the cause of the illness: CO2 emissions. Or the cure: stop burning fossil fuels.But fossil fuel companies and countries are determined to increase the use of fossil fuels. Oil and gas interests were out in force at COP28, from the President Sultan Ahmed Al Jaber — his day job is the head of the Abu Dhabi National Oil Company) — down to the 2,456 fossil fuel lobbyists in attendance. OPEC instructed its members to oppose any language targeting fossil fuels, and Ahmed Al Jaber stated that there is no science indicating that a phase-out of fossil fuels is needed.The Fox (the metaphor, and maybe the network too) is guarding the hen house. And this fox has stated that he has no plans to stop eating chicken.Fossil fuel dominance of the global warming agenda will continue as long as the economics of fossil fuels are so favorable. Pumping oil and gas out of the ground is a license to print money, with virtually no downside risks due to the harm that is created.There are three things we can do to change the lopsided economics of fossil fuels: - Don’t vote for politicians who support fossil fuels - Continue efforts to expand customer-sited solar and storage - Install your own solar and storage system before politicians change the rulesAmid this gloomy news there are a few bright rays of hope. COP28 formalized a pact to triple global renewable energy capacity by 2030. Our best shot is to leverage the superior economics of solar, wind and batteries to quickly phase out the use of fossil fuels.For a realistic exploration of the realities of COP28, tune into this week’s episode of the Energy Show.
When you electrify your home – with a heat pump HVAC system, EV charger, induction cooktopor heat pump water heater – your demand for electricity will go up. Duh. Or as Tim Allen wouldsay: “I need more power.”Incentives as part of the Inflation Reduction Act (IRA) help reduce the upfront costs of theseelectrification upgrades. But the only way to reduce the operating costs of these new electricalappliances is with more solar power on your roof.But upgrading an old solar system is not for the faint of heart. New solar inverters and panelsare unlikely to be compatible with your existing system. Your utility may restrict the number ofpanels you can add. And sometimes your electrical service may require an upgrade to handlethe higher power output from your upgraded solar system.Keep in mind these three recommendations. First, it is relatively easy to add a battery to anexisting system. Second, seriously consider replacing the entire system if it is over 15 years old.And third, work with an experienced solar installer who’s familiar with older equipment.For the nitty gritty details about upgrading your existing solar system, please tune into thisweek’s Energy Show.
By 2035 all new cars in California will be electric. It’s an achievable goal based on lower operating costs and rapid price declines for new EVs. But the current per kwh costs of EV charging continue to increase -- and we continue to be woefully short of necessary EV charging infrastructure.I predict a massive backlash against expensive and inconvenient EV charging. Our EV deployment goals are likely to fail. Miserably.The reason is simple: our EV charging paradigm is based on utility profit maximization as they take over the corner filling station – NOT lower driver operating costs (cheap and convenient charging) and NOT leveraging the value of these mobile batteries (such as Vehicle to Home charging).One of the leaders who “thinks different” is Tom McCalmont, CEO of Paired Power. Tom’s product line at Paired Power harnesses local solar power during the day when cars are typically parked at work, shopping malls and other public places. The Paired Power system uses low-cost Level 2 or DC solar charging stations, and avoids expensive and time consuming utility interconnection costs. Both EV owners and manufacturers will benefit.Tune into this week’s Energy Show for a glimpse of the alternate EV-solar future. Imagine charging your car inexpensively at work during the day, and just driving that massive car battery at home and powering your house. Say goodbye to outrageous peak evening electricity costs and blackouts!
Inside Scoop About Heat Pump HVAC SystemsIf you can answer these three basic questions, then don’t bother listening to this podcast. The questions are tricky, so if you're the least bit uncertain I suggest you listen to this week's riveting Energy Show episode.How can a heat pump be 300% efficient?Are gas furnaces still the most popular new heating system?Can you get an $8,000 IRA rebate and $2,000 Federal Tax Credit for a heat pump installation in 2023?First, we’ll delve into the way a heat pump HVAC system works. In a nutshell, a heat pump is an air conditioner operating in reverse. This heat pump thermodynamic trickery has been improving so much that heat pumps are now standard equipment on most new homes. They also work great in cold climates, unlike the systems I installed in the ‘80s.Retrofitting a home with a heat pump — which both heats and cools — provides homeowners a great deal of design flexibility. Heat pumps can use existing ductwork, can be installed “ductless" with mini-splits, or a hybrid that combines both. All without a single inch of sticky duct tape. When designed and installed properly, the end result will be an efficient, clean, comfortable and code-compliant heating and cooling system. And affordable. That’s where the IRA comes in.Ahhh, the Inflation Reduction Act. Without a doubt the biggest federal incentive program for clean energy technologies. But complicated with a blizzard of regulations, requirements and not-quite-ready forms for us to fill out.Please tune into this week’s Energy show for an answer to the top three Heat Pump HVAC questions, as well as plain English details about the benefits of heat pumps, how they work, and honest answers about available incentives.
There is one thing for certain as you electrify your house. You’ll need more electricity. Duh!But getting more electricity from the street to your house is not easy. Bizarrely, it often takes longer to do these electrical upgrades than it does to install your new all electric appliances.When — not if -- your old gas hot water heater dies, you don’t want to wait months for a new 240 volt circuit for that new super-efficient electric heat pump water heater. Nor do you want to delay the installation of your new heat pump HVAC system while you wait for a new electric panel. So you need to plan in advance for these upgrades. There are three general types of upgrades you will need as you electrify your home. First, you will need a dedicated electric circuit (wires and a separate circuit breaker) for each new appliance. Second, you may need a new electric panel if there is not enough space for these new circuits. Third — and most problematic since your utility is involved — you may need to upgrade the electric service from the street to your house.No one likes delays and extra expenses. But there is some good news. There are tax credits and rebates that can significantly reduce these electrical upgrade costs. Tune into this episode of the Energy Show for a detailed rundown on planning for these electrical upgrades. These upgrades take time, but you’ll thank yourself later once they are done and your electrification project proceeds smoothly.
The Inflation Reduction Act, or IRA, became law in August 2022. It's packed with incentives across the entire value chain, including domestic manufacturing, energy-efficient products, and clean saving energy.But these fantastic incentives do not yet match the realities of what you can get today for your electrification project. The table below shows the most significant IRA electrification incentives that are available to homeowners in 2023, as well as pending IRA incentives in 2024. Many utilities, counties and cities also have localized electrification incentives, such as the SVCE and PCE rebates shown in this table.There's a clear divide between tax credit incentives and rebate incentives. Tax credits are the heroes, with no application process, simple documentation and automatic credit on next year’s tax return. The only downside with tax credit incentives is that they only make sense for homeowners who have an annual tax liability.Rebate incentives -- while well-intentioned — often get bogged down with paperwork, documentation and payment delay nightmares. The rebate terms in the IRA are set by the Department of Energy (DOE), and administered by state energy departments, such as the California Energy Commission (CEC). Unfortunately, even though these appealing rebates have been dangling in front of our eyes since August of 2022, the administration details and forms are not yet available to contractors and customers.There are two other aspects of rebate incentives that you need to consider. First, the IRA rebate incentives are only available to homeowners whose average gross income is less than 150% of the local median income. Second, the additional documentation and paperwork requirements for some rebate programs exceed the value of the incentive. For example, the $1,750 IRA rebate for a heat pump water heater (HPWH) that will be available in 2024 may require a blizzard of paperwork, a contractor affidavit, code-required plumbing upgrades, and a finalized building permit — increasing costs of the HPWH project from $4,000 to $6,500. In other words, the realistic costs of getting the rebate are higher than the value of the rebate itself!The IRA is the biggest clean energy legislation in the U.S. Ever. There is no doubt in my mind that these incentives will accelerate our transition away from polluting sources of energy. But there are a few bumps in the road to electrification. For more about the realities of the IRA for your home, please tune into this week’s Energy Show.
Batteries were everywhere at September’s RE+ Conference in Vegas. I counted over 100 different battery company and system vendors. It was more of a battery and solar tracker show than a solar show — demonstrating the rapid evolution of these clean energy technologies.But out of a hundred batteries on the show floor, there are only half a dozen that I would recommend to homeowners. Home battery systems should provide reliable backup power during a blackout, and also generate utility bill savings. The vast majority of batteries I saw on the show were basically not ready for prime time. Here’s why…First, you need a complete battery system, not just a battery. In addition to the battery, these systems require controls, an inverter, an enclosure, a transfer switch, communications, and a lot of software. It’s extremely important that all these major components are controlled by one company. Batteries are not “plug and play” like printers and solar panels. Second, your battery system should be manufactured by an established company with a strong balance sheet and local service and support — not just a PO Box and a WhatApp number. I often say that it takes an army to grow a successful battery storage system company. Almost impossible to succeed on a shoestring.Third, you need a contractor that knows how to install, configure and support the system. Solar contractors with electricians on staff are generally the most qualified. An experienced local solar contractor is best positioned to give you good advice.Based on recent installation data from Ohm Analytics, the most popular battery systems are from Tesla, SolarEdge, SunPower, Enphase, Generac and FranklinWH.I’m gonna go out on a limb here and be specific about my favorites. Enphase is best for small systems. FranklinWH is best for fast installations and whole home backup. SolarEdge has the most efficient system, and can install the most battery capacity in the smallest space. And Tesla is currently the least expensive and has a well-known brand name.For more about my recommendations of home battery systems, please listen to this week’s Energy Show. You’ll get a charge out of it!
Proving the solar skeptics wrong, the U.S. Energy Information Administration (EIA) now expects that utilities will add 54.5 Gigawatts of solar generation capacity in 2023. And this capacity does not include 6.4 Gw of residential installations and 1.7 Gw of commercial installations expected in 2023.SIDEBAR: a Gigawatt is a billion watts of power. In 1955 the eminent Dr. Emmett Brown stated that the only power source capable of generating 1.21 Gigawatts is a bolt of lightning. Obviously things have changed in the future.For over 20 years the EIA predicted that fossil fueled power generation would continue as our leading source of new power generation. They’ve been among the biggest solar skeptics, predicting that solar would never catch up. But now, solar-generated electricity is the cheapest source for new power. By far. Utility solar plants generate electricity for less than $0.02/kwh, and residential rooftop systems generate electricity for less than $0.08/kwh. Compare that to the $0.16/kwh average costs for power in the U.S., and $0.35/kwh for the average home in California.You may have heard about some of the solar industry "ups" (increased solar tax credits in the Inflation Reduction Act and more affordable battery storage systems) and "downs" (less favorable utility solar rates and tariffs on certain solar equipment). These ups and downs define what we in the industry call the Solar Coaster. Although challenging to predict, the one thing we can count on is that the economics for solar will continue to improve. Equipment costs are trending down, utility rates are increasing, and the reliability of the grid keeps getting worse and worse — all at the same time we are electrifying our buildings and transportation systems.To really understand the ups and downs in the solar industry it’s necessary to look at the economic drivers in each of the main industry segments: Utility, Commercial and Residential. System costs, government policy and incumbent electric rates affect each of these market segments quite differently. In spite of this variability, the health of the overall solar industry is quite good. For a detailed dive into each of these market segments, please tune into this week’s Energy Show.
HEADLINE: Higher Electric Rates and More Blackouts
Unfortunately, this is the new normal for most of the U.S. In other words: SNAFU
This situation will not change. It’s a little-known fact that utilities use our money to influence politicians to maintain their monopoly. To the tune of $18m in California just in 2022. Government regulators are supposed to ensure that utilities provide inexpensive, reliable and safe power. However, this poorly regulated capitalism is not working. Just look at your electric bills over the past few years. Count the number of blackouts you’ve had. Heard about any wildfires recently?
Solar is the cheapest way to generate electricity, and batteries are a cost effective and reliable way to keep that power flowing. But ONLY when you own those solar panels and batteries. In spite of all the solar and battery investments made by utilities, our rates keep going up. We're experiencing record numbers of blackouts. And wildfires are becoming commonplace.
The electricity game is rigged. New electric rates in California are cheapest in the middle of the day when there is abundant solar generation. But at night rates are more than double. So ordinary solar customers are forced to sell power back at low rates during the day, and buy power at high rates at night. Buy high. Sell low.
You can beat the utilities at their own game if you have rooftop solar combined with a battery. Or two. Store your own solar-generated electricity in your battery, and then use that electricity at night. Buy low. Sell high. Plus you’ll have backup power during the next blackout. You don’t need an MBA to figure that out.
Please tune into this week’s Energy Show for more details about California’s new electric rates — and how you can save money by adding a battery to your solar system.
To learn more about how Investing in solar and storage delivers more than just keeping the lights on, please listen to this episode of The Energy Show.
Our society is moving rapidly towards electrification. Building electrification is good for the climate, good for our health, and good for our economy. We’ll all be using more electricity — it’s inevitable. Luckily, using all this extra electricity for our heating and our cars is inexpensive when you get it from rooftop solar and storage.
But utilities have a monopoly on electricity distribution. They’re rubbing their greedy hands together like Montgomery Burns, safe in the knowledge that as long as their monopoly holds, people without solar and storage will have to pay exorbitant rates for power. All the tax credits, IRA rebates and local incentives that benefit homeowners to electrify will ultimately mean even more profits for utilities -- and much higher electric bills for everyone.
Even though electricity rates are supposed to be regulated, when it comes to safe, clean and inexpensive power — money talks much more loudly than morality. It’s a little known fact that utilities around the country contribute enormous amounts to politicians. For example, in 2022 over $18 million was spent by utilities and their employees to influence California politicians, $5 million to the governor alone. That’s why the California Public Utility Commission unanimously voted to eliminate net metering for solar. Think about it: utilities are using our money to lobby the government to enforce and extend their electricity monopoly.
But you don’t have to be subject to escalating electricity rates and unreliable utility power. With rooftop solar and storage you can generate your own power at a fraction of the rates charged by your local utility. Solar and storage is the perfect complement to an electrified home, not only because your electric bills will be lower, but also because you’ll have a source of backup power during the next blackout.
For more about utilities leveraging their monopoly on electricity — and what you can do about it -- please tune into this week’s Energy Show podcast.
On this week’s show we’re talking about the first steps toward your home electrification project. What I call the Low Hanging Fruit. These are easy and cheap energy efficiency measures — most of which you can do yourself (DIY) or do not require any special contractors.Many people recommend starting with an energy audit of your home. However, unless you're working with a local energy auditor that knows your local conditions and incentives down to the city level, the standard energy audit recommendations are almost always wrong or out of order.Beware of utility energy audits and recommendations because they almost always ignore energy efficiency measures that cut back on their own revenues — such as installing solar and battery systems.So here are some of the Low Hanging Fruit electrification measures that you can do on a weekend with a trip to your local hardware store: Replace all of your incandescent and compact fluorescent lightbulbs with LED bulbs Eliminate Vampire loads in your house Install a wifi setback thermostat Seal air leaks around doors, windows and ductsOne step beyond these easy measures are upgrades or electrification of your energy hog appliances. You’ll need a few more bucks for these measures, and in some cases you may want to hire a local contractor. It’s a no brainer to replace your old gas dryer with an electric dryer, change out your old pool pump with a variable speed pump, and replace your gas range with an induction cooktop.If you live in an older home in a cold or very hot climate, consider adding insulation to your attic and walls, and changing out your single-pane windows with double or triple pane windows. But watch out, some of these building shell upgrades have long paybacks.So my advice is to get started on these DIY Home Electrification measures. When you consider newly available local, state and federal incentives, many of these Home Electrification measures have paybacks in fewer than two years!
More heat pumps were sold in 2022 than gas furnaces. And that was before the Inflation Reduction Act (IRA) kicked in, which provides an $8,000 rebate for most heat pump installations — on top of a $2,000 federal tax credit and city/county incentives that can exceed $3,000.Heat pumps are cleaner, more efficient and less expensive than most conventional gas furnaces and air conditioners. But the variety in heat pump system configurations, efficiency, and costs is enough to make even a geeky engineer’s head spin when trying to determine the best solution for a particular home.My guest on this week’s Energy Show is Dennis Stinson, VP of Sales at Fujitsu General America. Dennis has been in the heat pump business for over 30 years. Along the way he’s accumulated a wealth of practical knowledge about heat pump installations for just about every type of building in the U.S.So if you’re wondering what the difference is between a ducted and ductless system, why high efficiency heat pumps use inverters (but not the solar kind), the importance of variable speed fans and compressors, the meaning of a mini-split cassette (this happened to me when I ran over my collection of 70s classic rock tapes), the difference between SEER and COP efficiency metrics, or whether or not a roll of duct tape can seal your ducts — I think you’ll get a lot out of this week’s Energy Show.
Batteries are becoming an essential part of home solar systems. With solar-connected batteries, homeowners can avoid paying peak utility electricity charges. Batteries can provide backup power during blackouts. And if you’re in California, after net metering ends in April 2023, you will need batteries to avoid peak electric rates.In the old days, automobile-style lead acid batteries were used for backup power and time-shifting energy use. I still have holes in my old blue jeans where battery acid splashed (my kids think they are fashionable now). Starting in 2016, lithium ion batteries became popular for home use. Now, over 50% of our customers are installing batteries with their solar systems.My guest on this week’s Energy Show is Magnus Asbo, Senior Director of Technical Marketing for SolarEdge. I’ve known Magnus for almost 15 years, starting when we worked together on the first AC solar module. He’s a wealth of knowledge when it comes to designing and installing practical battery systems.Some of the questions that Magnus and I cover in this week’s Energy Show are: - What are the real world kw and kwh limitations of battery systems? - Every battery manufacturer offers a 10 year warranty on their batteries – what are the terms and limitations of these warranties? - Rooftop solar systems don’t need a lot of care and feeding. Do battery systems need more attention? - Is it easy for a solar installer to start installing batteries, and do they need an electrician on staff? - How does the UL-9540a building code affect the locations in which batteries can be installed? - Are there additional software and communication requirements for installing battery storage? - Why do I need a battery after net metering ends in California?If you’re thinking about installing battery storage with your solar system, you’ll get a lot out of this week’s Energy Show.
According to Wikipedia -- which has supplanted the Oxford English Dictionary and Encyclopedia Brittanica as the world’s definitive source of information -- an Atmospheric River consists of narrow bands of enhanced water vapor winds that form over the oceans.In plain English, Atmospheric Rivers are windy rainstorms that dump a huge amount of water in a relatively short time. They account for about 50% of annual precipitation – so these storms are critical to reducing California’s current drought conditions.Since our crews work on rooftops, we’re very concerned about rooftop safety. As a result we always look at forecasts when planning rooftop work for our customers. This morning I noted that significant rain is projected for eight of the next nine days. In over 22 years of installing solar in Silicon Valley I have never seen such a severe and extended series of storms.The National Weather Service is predicting that this next atmospheric river storm will be as bad or worse than the recent New Year’s Eve deluge. You can look at the detailed forecast yourself. Suffice it to say that wind gusts will be in the 35-55 mph range, with rainfall estimates ranging from 2 to 10 inches.With storms like this one -- especially when the ground is soggy -- it’s reasonable to expect many power failures due to downed electric lines and flooded underground wiring. Storm drains will clog, leading to widespread street flooding. And some local creeks are already at flood stage.But there is some good news. Reservoirs and aquifers are filling up, reducing drought conditions. Sierra snowpack is growing, so there should be more water available for summer hydroelectricity — and the skiing is terrific. Your rooftop solar panels are getting cleaned from these downpours.If you have a solar-powered battery backup system, please take note of two features available on most systems. First, we recommend that you increase your minimum battery reserve to 50%. Second, enable the Weather Guard or Storm Preparation feature on your system, which will automatically keep your battery at 100% state of charge if there is an imminent bad weather event or PSPS.To learn more about these crazy atmospheric river storms and how solar and battery storage can keep your lights on, fridge cold and family connected, listen to The Energy Show.
Copyright 2022 - The Energy Show, Barry Cinnamon
Over the years I’ve heard thousands of stories about people, companies and products in the solar industry. Fascinating to a solar geek like me, but too much in the weeds for most homeowners.
As the solar and storage industry goes mainstream, we need to communicate to customers in a more mainstream way. Hence the need for storytelling — especially stories that have relevance to people’s daily lives. Sorry, I can’t do it…my stories are just too geeky and boring.
Tor Valenza, AKA “Solar Fred,” has just what we need. Tor is a longtime solar expert and marketing guru — who also has a background in television screenwriting. His first season of “Probably True Solar Stories” provides a fictional look at how solar energy is increasingly becoming part of American pop culture, careers, politics, family life, and urban legends.
The “Probably True” characterization gives Tor the opportunity to tell stories about solar’s heroes, villains, and urban legends in real-life and fantastical genres. The first season has solar superheroes, solar sci-fi, solar crime stories, a solar ghost story, a solar Winnie-the-Pooh story, and of course, real-life solar homeowner stories. Most importantly, Tor’s "Probably True Solar Stories" are fun to listen to — even for people who are not solar geeks. I look forward to each of his episodes, which cleverly embed solar industry technology and knowledge in an easy listening format.
Please tune into this weeks Energy Show for Tor’s take on the latest solar industry trends, customer concerns, and his new venture back into the entertainment business with a solar twist.
Copyright 2022 - The Energy Show, Barry Cinnamon
Entrepreneurs are the job engine in the United States. Many of the companies founded by today’s entrepreneurs have products or services addressing environmental needs. New technologies almost always gain traction through the work of stubborn entrepreneurs, including solar, wind, electric vehicles and energy storage.
Public policies that encourage these new technologies are critical to their success in the market. Without smart environmental policies such as the solar investment tax credit, net metering, renewable portfolio standards and the wind production tax credit, the solar and wind industries would be a fraction of their current size. And when these new technologies gain traction with customer economics better than previous energy technologies, adoption of these new technologies accelerates. The recent passage of the Inflation Reduction Act (IRA) will turbocharge the deployment of clean energy technologies.
Policies like the IRA do not sprout spontaneously from the minds of politicians. Instead, they are suggested, developed and advocated by public policy organizations. And when it comes to smart environmental policies for entrepreneurial companies, Environmental Entrepreneurs, or E2, is one of the leading voices. E2’s members have founded or funded more than 2,500 companies, created over 600,000 jobs, and managed over $100 billion in venture and private equity capital.
Please listen to this week’s Energy Show as we engage with Bob Keefe, E2’s Executive Director, to learn about the genesis of E2, their successes working at the intersection of jobs, economy and the environment; and their plans for the future.
We’re talking about VAMPIRES on this week’s show — vampire electric loads.
It’s Halloween season, and these little energy suckers are insidious. I guarantee that you have dozens of little devices plugged into your home that are using a small amount of standby power, sucking energy all day and night. It really adds up, and causes nightmares for energy geeks like me.
Research shows that these “plug loads” are about 1/3 of a home’s total energy consumption. We’re not talking about big appliances or lighting – but sneaky little things plugged in or wired in all around your home.
Think about what you have. Obvious vampire loads are devices sitting out in plain site like computers, routers, Wi-Fi repeaters, phone chargers, TVs, cable boxes, cable modems, entertainment consoles and appliances (anything with a clock and an illuminated LED). Less obvious vampires are things like security systems, motion detectors, lighting control systems and integrated audio systems. The really sneaky devices that you might not see include doorbell and thermostat transformers, WiFi thermostats, hot water and furnace ignitors, garage door openers, irrigation systems, outdoor lighting control systems, and pool timers.
To get a handle on this infestation, I went to every room with a Kill-A-Watt meter to measure the power consumption of each device. It added up to over 250 watts of 24×7 power — over $750 per year at an average rate of $0.35/kwh.
To learn more about these vampire electric loads — how to identify them, calculate their costs, and drive a stake through their heart — tune in to this week’s Energy Show.
Copyright 2022 - The Energy Show, Barry Cinnamon
The best run solar companies I know are those that focus on a geographic region, and grow slowly and steadily. As with most other construction businesses, local companies generally understand their local markets better and have lower overhead — enabling them to provide better customer service at lower prices. The results are lower customer acquisition costs, more upgrades and ongoing service revenues.
On this week’s Energy Show we have the pleasure of speaking with Vince Battaglia, the CEO of Renova Energy. Renova started as Vince’s MBA thesis; fifteen years later Renova is now the leading solar installation company in the Coachella Valley. Like many other local solar installation companies, Renova has expanded its residential solar installation business to include commercial installations, system maintenance and battery storage. Renova recently announced their expansion into Phoenix and Las Vegas — both of which are hot markets for solar (in more ways than one).
Granted, the Coachella Valley area is blessed by an abundance of sunlight and cursed with high electric rates – a combination that is perfect for a thriving solar business. But dealing with the ups and downs of the Solar Coaster is challenging — and even more so when operating in three different states. For more about the challenges inherent in building and running successful and steadily growing solar companies, please tune in to this week’s Energy Show.
Copyright 2022 - The Energy Show, Barry Cinnamon
Adoption of EVs will hit a brick wall when people realize how ridiculously expensive it is to charge EVs at work or at public charging stations. And these charging costs will continue to go up as the price of grid electricity skyrockets.
Electric utilities have rigged the system for EV charging infrastructure so that they maximize their profits. Unfortunately, well-intentioned research studies — such as “Charging infrastructure access and operation to reduce the grid impacts of deep electric vehicle adoption” from Stanford — completely miss the point by ignoring customer costs.
The headline from this study “Charging Cars At Home At Night Is Not The Way To Go” is flat out wrong. Moreover, this study recommends that drivers charge their cars at work, which is actually the MOST expensive place to charge an EV.
Here is a summary of monthly charging costs based on 1,000 miles of driving per month in California:
Charging at work costs a host company $221/month Charging at a public high speed EV charger costs $153/month Buying gas at $3.50/gallon costs $140/month (pre-covid price) Charging on the EV rate at home costs $80/month Charging from home solar at night costs $18/month The headline of this study actually should be “It Costs 12 Times More To Charge Your Car At Work Than At Home From Solar.” It doesn’t take a genius to understand that charging your car from rooftop solar 10 yards away (on your home) or 100 yards away (on your company) is cheaper and more efficient than importing power 500 miles away from a solar or wind farm.
Why do studies like these come to the wrong conclusion? For the simple reason that they ignore distributed generation (DG) solar and storage. Solar on the roofs of homes and businesses — especially when coupled with storage — provides less expensive, more reliable and safer electricity. But these DG systems reduce utility profits. So direct and indirect utility-sponsored research almost never considers the superior benefits of DG energy systems.
EVs are great for the environment, but only cheaper to operate if you charge smartly. If you are planning to buy an EV you should definitely charge your car at home, ideally from rooftop solar under full retail net metering. As a reminder to California residents, get that solar system installed soon before the transition to Net Metering 3 next year.
For more details on costs associated with EV charging, please tune in to this week’s Energy Show.
Copyright 2022 - The Energy Show, Barry Cinnamon
Every time I fly into a city the glare from bright white commercial rooftops screams out to me “I need solar panels.” It is a little known fact that the 30% solar investment tax credit coupled with 20%+ depreciation benefits makes commercial rooftop solar the most cost-effective way of supporting local electric grids. Just think about how much more power would have been available to California if only 10% of commercial rooftops had rooftop solar + batteries.
However, the commercial solar and storage market lags behind the utility and residential solar markets in the U.S. for three main reasons:
First, many commercial buildings in the U.S. are leased. Renters generally do not want to make the capital investments necessary to install solar and storage on buildings that they do not own. Power Purchase Agreements coupled with fast paybacks can overcome this financial limitation. Second, utilities complicate the interconnection of commercial systems by requiring arbitrary system size caps and special equipment. Pre-applying for system interconnections and understanding the timeframes for transformer upgrades help resolve these issues. On a side note, utilities in California have managed to pass Assembly Bill 2143 that requires expensive prevailing wage labor rates for all commercial buildings that will go into effect on 1/1/23. A veto by Governor Newsom is the only way to prevent a big increase in commercial solar and storage installation costs. If you would like to ask Governor Newsom to veto AB 2143, please click on this link: Veto Commercial Solar Prevailing Wages. Third, many commercial buildings are “value engineered” with limited rooftop load bearing capabilities. Lightweight solar installation technology solves this rooftop loading problem.
Fortunately, there is a solution to the weight of solar panels on these value-engineered buildings. A company called SunMan has developed high efficiency lightweight solar panels that are ideal for commercial and industrial rooftops — including buildings with curved roof surfaces.
Our guest on this week’s Energy Show is the brains behind SunMan: Dr. Zhengrong Shi. Dr. Shi was the founder and CEO of Suntech, the first NYSE-listed solar module company. He is a legend in the solar industry, and is also a professor at the University of New South Wales. During the mid-2000s, Suntech was the largest manufacturer of solar modules in the world, and gained a reputation for quality and reliability.
Please join me on this week’s Energy Show as Dr. Shi discusses the keys to success in the solar industry, as well as the benefits of Sunman eArc solar modules.
copyright 2022 - The Energy Show, Barry Cinnamon
Mr. Burns of Simpson’s fame — the personification of utility greed and political power — is happily rubbing his hands together as California roasts in the dark. And this situation will get much worse in the coming years.
First, there is insufficient power during heat waves. Even with large solar and wind farms, gas peaker plants, one remaining nuclear plant, and long distance transmission lines importing power — the state is dangerously close to rolling blackouts. As I write this, the predicted power demand is 51,000 megawatts and the theoretical supply of power is 56,000 megawatts. Too close for comfort if temperatures are higher, if power plants go off line, if wildfires get worse, if people do not respond to flex alerts, and if there are also power shortages in nearby states.
Second, electric rates are skyrocketing. Rates increased 3% from 2000 to 2015, 6% from 2015 to 2020, and 14% in 2021 and 2022 (so far) — all before the impact of inflation over the past year. These skyrocketing rates are simply unaffordable to many homeowners and businesses. The driving factors behind these rate increases are out of control investments by California’s investor owned utilities (IOUs). For example, PG&E’s plan to bury 10,000 miles of transmission lines will cost ratepayers in the neighborhood of $100 billion dollars over the next 10 years. That $100 billion is more than enough to install solar and storage on every building in northern California with a sunny rooftop.
Third, electrification will require even more power. The state plans to stop selling gas cars by 2035, requiring a rapid transition to electric vehicles as gas stations are replaced with EV chargers. All new buildings will be heated with electricity, and gas heating equipment in existing buildings will be steadily converted to heat pumps. These factors are likely to increase power demands by another 50% per capita.
Practical solutions to solve these power problems are limited. We can’t go back to the fossil fuel age. New nuclear plants will take 20+ years to construct, and are more expensive than renewables with batteries. Importing power via long distance transmission lines is expensive, dangerous and unreliable. Continued droughts mean we cannot depend on hydroelectric power.
The fastest, cheapest and cleanest solution is to accelerate solar and storage installation on homes and businesses. Buildings can be converted to zero net energy in fewer than six months. Funding as part of the Inflation Reduction Act coupled with widely available clean energy loans make solar and storage cash flow positive for almost every building owner. But monopoly utilities, the biggest lobbyists in the state, spend millions to discourage customer solar and storage installations.
Please tune in to this week’s Energy Show for specific details on what each of us can do to reduce the impacts of these power shortages. We’ll also discuss the actions that must be taken to reign in the destructive economic influence of investor-owned utilities as they crowd out faster and cheaper private sector investments in distributed generation power supplies.
Copyright 2022 - The Energy Show, Barry Cinnamon
I was recently a guest on the Rob Black Show. Rob is a popular TV, radio and podcast financial expert. So in a twist, we talk about leveraging the savings from the Inflation Reduction Act to maximize your Individual Retirement Account.
There’s been lots of news coverage about homeowner’s saving money from the solar, battery, heat pump and energy efficiency incentives in the Inflation Reduction Act. What is less apparent is that, as the IRA spurs adoption of new energy technologies, the companies that provide these technologies will also see rapid growth in their businesses.
Please tune into this week’s Energy Show — courtesy of Rob Black — to learn about the impact that the Inflation Reduction Act will have on both homes reducing their energy costs as well as businesses that provide these benefits.
Copyright 2022 - The Energy Show, Barry Cinnamon
This week’s Energy Show podcast is about the IRA. Even if you’re retired or Irish, the inaptly-named Inflation Reduction Act is the most important legislation for clean tech ever. We’ll talk about the big picture of U.S. energy generation and use, and then delve into how much homeowners can save with the incentives in the IRA.
I downloaded all 755 pages of this bill so I could check the legal details in the fine print (DeVinne 18 pt). Congress threw the entire clean tech kitchen sink into the IRA, along with some much-needed social programs. There is no doubt in my mind that the IRA will accelerate the transition away from fossil fuels – particularly as homeowners electrify their homes and stop using gasoline and natural gas.
The IRA has the potential to reduce U.S. emissions by 42% by 2030. Nevertheless, ten years from now the climate will still be hotter. Moreover, accelerated utility investments in electric generation infrastructure will likely double electric rates, accentuated by utility efforts to recapture losses from stranded fossil fuel assets. It will take an all-hands-on-deck effort -- on a worldwide basis -- to deploy the necessary technologies to reverse global warming. The IRA is just a start for the U.S.
To hear a summary of the key homeowner provisions of the IRA, please listen to this week's Energy Show.
Copyright 2022 - The Energy Show, Barry Cinnamon
There are two types of solar customers: people with sunny roofs and people without sunny roofs. Just as every home had a chimney (before heat pumps), there is no doubt in my mind that every home will eventually have solar.
But what about the people without sunny rooftops, such as apartment dwellers and homes in heavily forested areas? Or people who cannot afford the up-front cost of a solar system? How can these people avoid expensive utility electricity and benefit from the superior economics of their own solar systems?
Community Solar is the answer for these sunny roof-challenged people. Basically, it is a way for people to share the power output from a large local solar array, and also contribute to the cost of the solar array. Community Solar customers benefit from lower electricity prices because they avoid the high markups, overhead and transmission costs of traditional utility power.
There are no technical, logistical or economic barriers to Community Solar — except for the determined efforts of incumbent utilities to prevent installations in their territory. Utilities use every dirty trick in the book to frustrate installations that would benefit apartment dwellers and low income customers.
According to NREL, 74% of installations are concentrated in Florida, Minnesota, New York and Massachusetts. California, the state with the most rooftop solar installations, ranks near the bottom when it comes to Community Solar. Which comes as no surprise since California’s utilities focus more on maximizing their profits rather than providing electricity that is safe (wildfires?), reliable (blackouts?), ethical (criminally negligent?) and affordable (tax rooftop solar?).
To find out what can be done to accelerate the adoption of Community Solar, my guest on this week’s show is Crystal Huang. Crystal is the CEO of People Power Solar Cooperative. Please tune in to this week’s Energy Show for Crystal’s unique and in the trenches perspective on the barriers that utilities put in place to prevent competition from Community Solar — and the policies that can be implemented to make affordable solar power available to all homeowners.
Copyright 2022 - The Energy Show, Barry Cinnamon
Buying an EV is complicated. The market is dynamic, so brand loyalty doesn’t mean much yet. There are huge differences in mileage, range, charging and price. Often the EVs that are in the highest demand are backordered — sometimes for a year or more (just try buying a Ford F-150 Lightning). Heck, just understanding the meaning of MPGe and Level 1/2/3 chargers is enough to delay an EV buying decision and keep pumping gas into that old hydrocarbon heap.
Fortunately, there is an abundance of EV information on the web. Almost too much. Comparing the capabilities and specifications for EVs is a daunting task for buyers. To simplify the process there are several EV ratings sites that compare EVs based on standard criteria.
The EV comparison site that I have found most useful is the Bloomberg Green EV Rating site. Their Green Rating metric is a weighted score that accounts for every vehicle’s range, weight and battery size. In addition, they include three other critical factors that many other comparison sites ignore: price, range and charging speed. The American Council for an Energy Efficient Economy has their Greenercar ratings — which includes all “green” vehicles of various shades (including hybrids and very low emission vehicles). The official source for vehicle fuel economy (MPG and MPGe) is at fueleconomy.gov, sponsored by the DOE and EPA.
Would you believe it is TEN TIMES more expensive to fill up your tank with gas than it is to charge your EV with rooftop solar? For an analysis of the charging costs of EVs, as well as more details about the above-referenced EV comparison sites, please tune in to this week’s Energy Show.
Copyright 2022 - The Energy Show, Barry Cinnamon
If you’re like me you installed a battery storage system to preserve in solid form all that Ben and Jerry’s ice cream in your freezer during a blackout. My wife, on the other hand, just wanted to save money. Her financial priority is ultimately what is driving the demand for battery backup installations.
A battery backup system can save your a thousand dollars or more on your annual electric bill — in addition to keeping your lights on during the next blackout. These battery storage savings result from time-shifting your electricity usage: you can draw power from the grid when rates are inexpensive (generally at night) and sell power back when rates are expensive (generally in the late afternoon and evening). Or as my stockbroker says, buy low and sell high.
Ordinary rooftop solar systems are automatic and passive. The sun comes up, the solar panels generate power, and you sell your excess power back to the grid. With solar, there are no settings to change to maximize your savings.
Battery systems require a bit more active management. The savings from your battery backup system depend on your electric rates, weather, time of the year, your peak power consumption, and when you run your appliances. Consider the operation of your battery like a game: playing to win means you can get your utility bill as low as possible — even negative!
Here are five ways you can maximize the savings from your battery backup system: 1. Program large appliances to run only during off-peak electric rate times 2. Try to get your battery fully charged at the start of peak electric rate times 3. Vary your backup reserve based on the seasons and weather 4. Shed large loads during a blackout 5. Consider alternate electric rates
For maximum savings it's important to understand the distinctions between the energy stored in your battery (measured in kilowatt-hours), and the maximum power your system can deliver during a blackout (measured in watts). Please tune into this week’s Energy Show for a deep dive into the best ways to operate and manage your battery storage system.
Copyright 2022 - The Energy Show, Barry Cinnamon
At the start of the Industrial Age the concentration of CO2 in the atmosphere was 280 parts per million (ppm). Now the concentration is over 420 ppm. This increase in CO2 levels was caused by burning fossil fuels -- coal, oil, gasoline and natural gas. High concentrations of atmospheric CO2 are the primary cause of global warming.
We need to reduce the CO2 concentration in the atmosphere in order to slow and eventually reverse global warming, Obviously, reducing the use of fossil fuels will slow the buildup of CO2. And natural processes, such as photosynthesis, gradually reduce CO2 concentrations. Unfortunately, we don’t have time to wait for these relatively slow processes. One obvious way to accelerate CO2 removal is to use Direct Air Capture, or DAC.
DAC technology has been used for years to remove CO2 from the waste streams (flue gas) from power plants. The CO2 is absorbed in a liquid or solid media — and is then compressed for use in industrial processes or sequestered in underground wells. But there are two fundamental problems that we need to overcome in order to make DAC practical.
First, it takes a lot of heat to recycle the solid or liquid media in which the CO2 is absorbed. This heat now comes from burning more fossil fuels. So without large-scale renewable sources of heat for the DAC process, the net amount of CO2 removed is small. As a result, DAC deployment is expensive in terms of both capital equipment and thermal energy.
Second, there are limited uses for all the CO2 that would be removed using DAC. By far the biggest current use of this CO2 is for enhanced oil recovery; basically, compressed CO2 is injected into oil and gas wells to force more fossil fuels to the surface. If the CO2 stays underground forever (permanently sequestered), then the net effect on CO2 in the atmosphere is about zero. If the CO2 eventually burps out of these wells we would be increasing the net CO2 concentration in the atmosphere. One step forward and two steps back.
Cost effective and rapid deployment of DAC technology could indeed be a panacea to global warming. However, some people think that going down the DAC path with current technology is more of a Pandora’s Box: if DAC does not scale rapidly and efficiently it could lead to even more CO2 emissions released into the atmosphere. Especially if we continue to burn fossil fuels at the current rate.
As a write this podcast summary the temperature here in San Jose is projected to be over 100 degrees, potentially another record high. We need an “all hands on deck” approach to reduce global warming, and perhaps DAC technology will be a scalable solution. For more about the practical aspects of Direct Air Capture, please tune in to this week’s Energy Show.
Copyright 2022 - The Energy Show, Barry Cinnamon
Rob Black has been a popular TV, radio, and podcast personality for more than twenty-five years. Not only do I love his daily radio show on KDOW and and Bay Area TV, he also recently installed a rooftop solar and battery storage system on his home.
I had the pleasure of joining Rob on one of his recent shows — which is the subject of today’s Energy Show. Rob has a knack for explaining complicated financial and technical issues in a very down to earth way.
We covered a lot of ground on this show, including considerations for selecting a solar contractor, financial benefits, the trend towards electrification, and EV charging. Most interesting to me was Rob’s engagement in the energy flows in his house. He charges his car directly from the sun during the day — keeps his storage battery charged enough to get him through peak electricity times in the late afternoon and evening.
Rob has discovered that the biggest challenge is encouraging his family to watch when they consumer energy. Funny how we no longer care that much about turning the lights off in a room; LEDs use a fraction of what old-fashioned incandescent lights consume. But we have to be very careful when we use large electrical appliances such as EV chargers and dryers.
For example, if you fully charge your EV from the sun the cost can be $10; if you charge from your utility at off-peak times the cost can be $30; and if you charge at peak times the cost can be $50. Still, regardless of when you charge your car it is a heck of a lot cheaper than filling up your tank with $5/gallon gas.
So…if you want to hear about a financial expert’s experience installing and operating a solar and battery system, please listen to this week’s Energy Show.
Copyright 2022 - The Energy Show, Barry Cinnamon
Clean energy has come a long way since the first water wheel, windmill and solar cell. Solar, wind and battery systems are steadily replacing fossil fuels because they are both cleaner AND cheaper. For simple business reasons, the superior economics of wind and solar generation are steadily supplanting coal and methane for power generation. And electric vehicles are on track to replace 90% of new gasoline-powered vehicles within the next 20 years.
But the fossil fuel industry is not going away without a fight. Since economics are no longer on the side of “drill baby drill,” fossil fuel companies and their supporters promote a variety of myths that clean energy is simply more expensive than good old gas and coal.
I hate to break it to you, but candidly most of these clean energy myths have a kernel of truth. Yes, it is true that clean energy used to be expensive. Nevertheless, as a result of mass production and widespread deployment of solar, wind and batteries, clean energy systems are without a doubt cheaper than fossil fuels. Basically, facts have changed in favor of clean energy.
Here is my list of Ten Clean Energy Myths that are easily dispelled with current facts:
- Solar panels take more energy to make than they generate
- EVs are more expensive than gas vehicles
- Utility solar power is cheaper than rooftop solar power
- Clean energy is a job killer
- Heat pumps don’t work in cold climates
- Hydrogen is the clean fuel of the future
- We need new nuclear reactors to generate base load power
- Fossil fuels are OK since we will use carbon capture and sequestration to remove the CO2
- You should re-insulate your house and install new windows before installing solar
- Rooftop solar is too expensive
Please tune into this week’s Energy Show for the reasons why these ten clean energy myths are easily dispelled by redirecting obsolete beliefs with current economic and scientific data.
Copyright 2022 - The Energy Show, Barry Cinnamon
This week’s Energy Show is a special Public Service Announcement for the “Don’t Tax the Sun Rally” in SF and LA on June 2nd.
It’s a Call to Arms — with solar panels and screw guns. All solar customers — and anyone interested in solar — should attend. As well as the 68,000 solar workers in California.
If you haven’t heard, California’s utilities are intent on stopping customer-owned rooftop solar and battery systems. This tax only benefits big utilities — making them even more profitable at your expense. We need your help on June 2nd to stop the tax in new and expanded systems.
Dave Rosenfeld, Executive Director of the Solar Rights Alliance, is our guest on this week’s Energy Show. Dave will explain what the utilities are trying to do to your solar panel system.
A big public turnout in San Francisco or Los Angeles is the best way for us to steer the state towards clean and affordable energy. California should not tax the sun, period. We need more solar, not less. Gov. Newsom must show leadership, right now.
Please make plans to be at one of these rallies. Go to https://secure.everyaction.com/p/KQXTFGbRp0-dqQzvUtqq2g2 to RSVP for one of these rallies. And pass on this e-mail to anyone else you know that doesn’t want a tax on sunlight.
Copyright 2022 - The Energy Show, Barry Cinnamon
How much heat could a heat pump heat if a heat pump could pump heat? Technically, the answer is about 3.
“Heat pump.” What a dumb, geeky name for what is arguably the most important climate modification device known to man. Heat pumps are really just refrigerators operating in reverse. Spelling-wise that would be a rotaregirfer. OK, “heat pump” is comparatively a better name.
Almost every building in the U.S. has one or more heat pumps — usually in the form of air conditioners or refrigerators. Air conditioning has been tremendously important to society. Could you imagine working in a high rise in Miami, Dallas, Phoenix or Atlanta on a hot summer day without air conditioning? Now this established technology for cooling is now being deployed throughout the world for clean and efficient heating.
So why is there so much excitement about heat pumps? Because they generate three times more heat than the electrical energy it takes to run the heat pump. Essentially, they are three times more efficient than an electric heating system or electric hot water heater — and almost always cheaper to operate than a gas furnace or gas hot water heater when the power source is from solar.
Most air-to-air heat pumps have an efficiency (actually a coefficient of performance) of 300%. Heat pumps achieve this high efficiency — without getting arrested for breaking the first law of thermodynamics — by moving heat from outdoors on a cool or cold day, to indoors to heat a building or water. Heat is removed from the outdoor air (making the outdoor air even colder), and then transferred to the indoor air (or water).
For example, a 2200 sf home in San Jose uses 520 therms of methane (AKA natural gas) for heating. At current PG&E rates heating the home would cost about $1,100. Converting to a heat pump would reduce annual heating costs (under the electric heating rate) to about $1,000. If the home had rooftop solar, heating the home would drop to about $300 per year! Many cities have rebates of up to $4,000 for the installation of a heat pump HVAC system.
The hottest type of heat pumps now, figuratively speaking, are heat pump water heaters (HPWH). These HPWH systems are a direct replacement for traditional methane or electric tank water heaters. For example, a 65 gallon methane hot water heater would use about 120 therms or $264 per year. Converting to a HPWH, energy consumption would drop to about 870 kwh or $250 per year. If the home had rooftop solar, heating water would drop to about $70 per year. Many cities have rebates of up to $2,000 for the installation of a heat pump water heater.
It is very likely that you will be electrifying your home in the future. EVs, heat pump water heaters and HVAC systems and induction cooktops are better, cleaner, safer and often cheaper than their polluting fossil fuel ancestors. For more practical information about heat pumps, please tune in to this week’s Energy Show.
Copyright 2022 - The Energy Show, Barry Cinnamon
Stop burning fossil fuels and electrify everything. That’s the path that humanity must follow to avoid a global warming calamity.
Two technological changes have made it both practical and economical to transition to an (almost) all electric economy. First, heat pumps, EVs and induction cooking are now practical replacements for furnaces, hot water heaters, gasoline-powered cars and stoves. Second, inexpensive solar and wind electricity mean that these appliances and vehicles are cheaper to operate than their fossil-fueled ancestors. Of course electric appliances are cleaner, and in many cases provide more comfort, convenience and safety.
I added the word “almost” since long distance transportation (trucks, rail, airplanes) and industrial process (steel, cement) heat are still more practical and cheaper when powered by fossil fuels. The clean solutions to these transportation and industrial processes are still a few years away.
Almost without exception, all of our potential solar customers are intrigued by the possibility of electrifying their homes. But they have two questions. First, how many more solar panels will they need for their rooftop system to power their home? Second, what will the savings be for this fossil fuel to solar conversion?
The transition to electrifying your home powered by solar is being accelerated by the crazy increases in electricity and methane costs. Here in Silicon Valley, electricity rates are going up at 10% a year, and methane (AKA natural gas) rates are going up at 8% a year. My wife also reminds me that gasoline prices are ridiculously high (I’m oblivious since I drive an EV).
So how many solar panels will be required when electrifying your home to zero out your electric and gas bills…and become carbon zero?
The answer boils down to answering four simple questions about your home: 1. What are your current electricity and methane bills per month? 2. What is the efficiency of your current appliances? 3. How many miles do you drive per year? 4. What is your home’s solar exposure?
Please tune in to this week’s Energy Show for a step-by-step overview of the incremental number of solar panels needed to fully electrify a typical home in the U.S.
Some of you may have read excerpts from the U.N.’s Intergovernmental Panel on Climate Change report. Candidly, I didn’t. Even the summaries were indecipherable. Which is probably a good thing since there is only one shred of good news in the whole report. More on that at the end.
The report — indeed, the entire process — has been depressing. We have had 20+ years of climate activism; many Inconvenient Truths; wildfires, floods, droughts; and now energy wars. Still, the economic interests from fossil fuels and related industries continue to overwhelm the necessary actions. Which is no surprise, since the solution to global warming effectively means the end of the fossil fuel industry. As a result of their logical economic interests, the world is simply not reducing the use of fossil fuels quickly enough. Atmospheric CO2 hit 421 ppm in April. Global temperature increases will be closer to 2.5C under the best of circumstances.
In order to keep global warming under 2C we need to do five things: put a high price on carbon, electrify everything, place high subsidies on renewables, place high subsidies on nuclear, and reduce methane emissions. The IPCC whitewashed these obvious actions, and instead recommend that the world just stop using fossil fuels (easy to say), find a way to remove CO2 from the atmosphere (consumes dramatically more energy than carbon capture at the source, which itself is not economical), curb demand of energy (which will reduce overall economic well-being), spend more money on clean energy (I agree), and tell rich people to use less energy (good luck). Unfortunately, there is no “how” there in these recommendations.
Instead, here are my five realistic recommendations that you personally can implement right now, all of which are practical and will have a direct impact on your quality of life.
1) Make your home carbon negative with electrification, solar and batteries. You’ll save money and have a healthier and more comfortable home. Plus, it's the best way to get back at greedy utilities.
2) Buy renewable energy and electrification stocks for you and your children. In general these will be long-term winners. Sell your fossil fuel company stocks for moral reasons even though over the short and medium term they may do OK.
3) Do not support climate-change denying politicians in any way. The same goes for politicians who support the fossil fuel infrastructure and rail against clean energy policies such as a carbon tax.
4) Do not get a 30 year mortgage on coastal property. If you like the beach, buy a block inland or just rent.
5) Eat less meat and more locally grown fruits and vegetables. I’m not sure how much impact this will have on global warming. But a good diet will help you live long enough to see that Al Gore was right.
The one shred of good news is that the economic benefits of renewables — solar and wind — will mean that these clean energy sources will indeed replace fossil fuels. Eventually. But not at a fast enough rate unless we put a high price on carbon. For more about the IPCC report, please tune into the next Energy Show podcast.
Copyright 2020 - The Energy Show, Barry Cinnamon
The most common question people ask about rooftop solar is: “What solar panels should I buy.” Unlike buying a car — which people do every 5 or 10 years — people buy solar panels only a few times in their life. But unlike cars, the “best” solar panel on the market at any given time typically changes every 5 or 10 years.
When we recommend solar panels the most important criteria are cost-effectiveness, efficiency aesthetics and reliability. There is not a solar panel manufacturer on the planet that does not say they have high quality manufacturing and a 25 year warranty. Unfortunately, reliability is hard to determine objectively, so the best gauge is the advice of an experienced solar installer. Or an industry expert like Paula Mints with SPV Market Research.
“Top Ten Solar Panel” lists are typically more of a popularity contest — more influenced by advertising than objective criteria. When I recently reviewed a popular Top Ten Solar Panel list I noticed that the top manufacturer no longer manufactured their own panels, and the second manufacturer recently stopped manufacturing. Panels from both of these companies are highly efficient, but in my opinion do not belong at the top of the list.
Please tune in to this week’s Energy Show as we delve into the criteria that we believe are most important for long-term customer satisfaction.
Copyright 2022 - The Energy Show, Barry Cinnamon
Ribbit or Croak. Which one are you?
An urban myth has it that if you put a frog in a pot of boiling water it will instantly leap out. But if you put it in a pot filled with pleasantly tepid water and gradually heat it, the frog will remain in the water until it boils to death.
This myth reminds me of the slow-motion train wreck we are facing from destructively high electricity and methane (natural gas) costs. We’re gradually getting boiled alive with increasing energy prices. Don’t believe me? Just look at California’s residential electricity and methane prices over the past few decades as reported by the Energy Information Administration.
Average single family home electric rates increased at an annualized rate of 3% from 2000 to 2015. These increases accelerated to 6% from 2016 to 2020. Rates then skyrocketed (I’m running out of adjectives here) to 11% in 2021. This year…so far…PG&E raised rates by 18%. The combination of PG&E’s costs to catch up on deferred maintenance, bury transmission lines, pay executive bonuses, install EV infrastructure, lobby our government, continued drought — and account for 7% inflation — make it clear to me that we are in for an extended period of 10% annual electricity rate increases.
Methane prices are almost as bad. Over the past five years the average price of delivered methane has increased at 8% per year. As with electricity, that is before the effects of inflation, higher domestic demand and the U.S. commitment to supply methane to Europe.
Don’t even get me started on gasoline. Just remember that the prices we pay at the pump are almost exclusively influenced by the worldwide commodity prices of oil and gasoline. So when worldwide demand goes up, U.S. drillers and refiners make more money if they export their oil and gas than if they patriotically keep these fuels in the U.S. Refiners raise prices at the pump within days, even though there is a 30 day delay from oil wells to gas pumps. More drilling, or releases from the Strategic Petroleum Reserve, has almost zero impact on U.S. gasoline prices.
Candidly, I see nothing on the horizon that CAN significantly ameliorate these continued increases in electricity and methane prices. In five years the average California homeowner will be paying $0.70/kwh for electricity, or $8,400 per year! Even more for homeowners who use a lot of air conditioning, have swimming pools, or drive an EV. Average homeowners in the U.S. will spend close to $2,000 per year to heat and cook with methane.
Ribbit or Croak. While the market prices for electricity, methane and gasoline are completely out of our control, there are actions we can all take to solve our own personal energy crisis. So please tune into this week's Energy Show for ways that you can avoid the Croak.
Copyright 2022 - The Energy Show, Barry Cinnamon
Your friendly local solar contractor has to contend with two basic types of costs: hardware costs (solar panels, inverters, racking, batteries, etc.) and non-hardware costs, referred to as “soft” costs (just about everything else, including sales, advertising, salaries, rent, insurance, vehicles, inspections and interconnection paperwork).
Solar contractors do not have much control over equipment costs, other than diligent equipment selection and shopping. However, contractors have control over soft costs by carefully managing their sales, installation and back office activities. Not surprisingly, these soft costs are over half the costs of a typical solar or battery installation!
To keep these soft costs down, solar companies are always seeking ways to improve their efficiency. Automating these soft cost activities — marketing, rooftop design, sales proposal, engineering, permitting, inspection, interconnection, incentive, etc. — can reduce these costs by 20% or more. Moreover, projects can get installed faster and with more accuracy.
When I started doing rooftop solar installations over 20 years ago, we developed software to streamline some of these processes. This old software was clunky — using Excel and Word and Adobe — but did indeed reduce costs and improve our sales effectiveness. Now, 20 years later, Aurora Solar has a complete platform to automate these sales, design and installation processes for solar and battery contractors. It’s an incredible product.
Aurora Solar was founded in 2012 by Sam Adeymo and Chris Hopper, both Stanford Business School grads. Sam and Chris embarked on a solar installation project in Africa — and while working on that project half way around the world they realized the scale of the opportunity to reduce solar design costs. They started off with software that would quickly and accurately design panels on a rooftop via aerial photos — completely eliminating the need for the installer to climb on the roof and measure distances with a tape measure. We can all be thankful that they didn’t start on a residential solar project in Palo Alto…otherwise they would probably still be trying to get their building permit finalized.
To learn how Aurora Solar has become the industry’s leader in automating the solar design process used to design over 5 million solar installations, please listen to this week’s Energy Show.
Copyright 2022 - The Energy Show, Barry Cinnamon
I’m sure you’ve noticed that the reliability of our electric grid is getting worse -- not better. In spite of new utility generation, transmission and monitoring technologies, blackouts and Public Safety Power Shutoffs are more common. There are more power outages, and these outages last longer.
In the “old days” about 20 years ago when the power went out we still had wired phone lines, we could throw a few logs in the fireplace, and we could go to the gas station to top off our tank. Now, without reliable electricity, our communications, entertainment, heating and cooling, and transportation are all as useless as a chocolate teapot.
I came across a recent report from E3, an electric grid consulting company, that summarized six trends that they say are making the grid’s reliability worse:
1) More customers and more electric demand 2) Retirement of coal and gas plants 3) Increasing dependency on renewables, storage and distributed resources 4) Increasingly extreme weather 5) Increased risk of drought 6) Tightening electricity markets in the West
In reality, the six trends listed above are excuses for utilities doing a poor job of delivery safe and reliable electricity. We don’t need a consultant to tell us that more electricity demand and more dependence on remote energy supplies — whether natural gas, hydro, wind or solar — will decrease the reliability of the grid. And it doesn’t take a crystal ball to see that every one of these trends were predictable…and will continue.
The fundamental reason for lousy grid reliability is simple: utilities maximize their profits by deferring maintenance and installing their own power plants, transmission lines and local distribution equipment. Their executives don’t get a bonus for reliability, only for profits. Faster, cheaper and more reliable local power systems — rooftop solar, battery storage, vehicle to grid equipment, community solar — are avoided like the plague by utilities.
For a non-utility perspective about the causes of our unreliable electric grid — and what we can do about it — please listen to this week’s Energy Show.
Copyright 2022 - The Energy Show, Barry Cinnamon
Energy costs keep going up — and faster than ever. Gasoline is over $5/gallon, natural gas prices are projected to skyrocket, and PG&E electric rates increased 11% in 2021 and 9% (already) in 2022. Luckily, we have more options than ever for significantly reducing our energy costs.
20 years ago just about all you could do was install a setback thermostat. Now, solar is standard on new homes in California, battery backup systems are popular, LEDs bulbs are all you can buy in most hardware stores, and electric vehicles are ubiquitous.
But when approaching building electrification, how do you figure out what makes the most sense for your home? Should you install a heat pump and induction cooktop first? Should you try some load shifting with incentives from your utility? Should you install solar and storage?
Steve Schmidt with Home Energy Analytics has many of these answers. His company has free software that analyzes your home’s energy use and coordinates with utilities to maximize your savings and grid benefits. A lot has changed since Steve joined us on the Energy Show about three years ago – especially with building electrification.
So please listen up to this week’s Energy Show as Steve shares his insights on home energy usage, as well as the economics and clean energy benefits of electrifying your home.
Copyright 2022 - Barry Cinnamon - The Energy Show
My 2022 solar and storage predictions came into clearer focus — although I didn’t like the picture — after the California Public Utilities Commission (CPUC) dropped a bomb on California’s solar and battery storage industry. Basically, the CPUC sided with PG&E and other utilities in California to eliminate Net Metering.
The proposed terms for Net Metering 3 (NEM 3) cannot be considered net metering since new solar customers will actually be penalized for connecting to the grid under this rate. The utilities’ NEM 3 proposal includes high monthly fixed costs, wholesale daytime reimbursement rates, and a change in grandfathering for existing NEM customers. Under this planned NEM 3 regime, solar customers will be better off economically with a battery and never send excess power to the grid.
The California solar and storage industry mobilized to modify this poorly-reasoned CPUC decision. The NEM 3 decision is now delayed for another few months, most likely being finalized sometime during Summer 2022. There is no doubt in my mind that NEM 3 rates for solar and battery customers will be significantly worse than the current NEM 2. And what happens in California tends to spread; Florida is likely to experience similar net metering battles as their utilities gear up to fight rooftop solar and storage.
With this background about NEM in mind, here are my 2022 Solar and Storage Predictions:
1 California’s investor-owned utilities will have their best year ever in 2022 2 The NEM 3 transition will drive record solar installations in Q1 and Q2 3 Suppliers will not have inventory to meet the Q1 and Q2 rush in California 4 New battery system suppliers will focus more on technology than actual customer needs 5 Branded U.S. solar manufacturing will increase 6 Poor data communications technology will be problematic for battery systems 7 Shortages of battery installers and technicians will slow down deployments of storage systems 8 Only battery system manufacturers with a well-known brand and deep pockets will gain market traction 9 Smart load control systems will become standard equipment for backup power systems 10 PV module power capacities will increase until modules get too big to carry up a ladder.
Please listen to this week’s Energy Show as I walk through the details behind my 2022 Solar and Storage Predictions.
Copyright 2020, The Energy Show - Barry Cinnamon
There are two segments of the renewable energy industry growing like crazy (in addition to solar), electric vehicles and home battery storage systems.People are installing battery storage systems for two reasons. First, batteries avoid sky-high peak electricity prices ($0.50/kwh from 4 to 9pm here in Silicon Valley). Second, batteries provide reliable backup power during increasingly frequent blackouts. The switch to NEM 3 is creating the biggest rush to install battery systems that I have every seen.
Customers with EVs often ask: “When can I use that big lithium-ion battery in my car to power my house?" It’s a natural question to ask since Ford showed that Vehicle to Grid (V2G) capability in one of their Mach-e commercials. Ford is also promoting V2G capability with their upcoming Lightning pickup truck. The perception is that V2G is ready for prime time. As they said on the Six Million Dollar Man: "We have the technology."
But not so fast. There are two big barriers to widespread deployment of V2G. The first barrier is regulatory: restrictive building codes and standards that make it almost impossible to legally deploy V2G systems. The second barrier relates to utility and car company business models. Some car companies don’t want you to use your car battery for home use – including the biggest. And utilities don’t want customers installing or using energy storage systems because these customer-sited systems reduce utility profits.
So I put my thinking cap on to figure out the hardware, software and regulatory changes that would be required to make V2G a reality. Please listen to this week’s Energy Show as I walk through the opportunities and challenges of V2G, and why I think it will take at least another decade before V2G becomes a reality.
copyright 2022 - The Energy Show, Barry Cinnamon
The outlook for solar and storage in 2022 is pretty clear. Because of dramatically higher electric rates and changes to Net Metering in California, I expect the first half of the year to be the best time for homeowners to install solar and storage in over a decade. Second half of the year in California…not so hot. On the other hand, the second half of the year will be great for homeowners throughout the rest of the country since the federal Solar Investment Tax Credit (ITC) is stepping down to 22% at the end of 2022.
There are a lot of moving parts that will affect the industry in 2022. I’ve tried to break down these changing factors into three categories: economics, availability and safety. So here they are:
Economics
PG&E rates are guaranteed to increase. Why? --It’s the utility business model. Full stop. The California Public Utilities Commission (CPUC) announced a preliminary decision to eliminate Net Metering. They call it a transition from NEM 2 to NEM 3. The reality is that you are better off with no Net Metering at all. This preliminary decision goes into effect at the end of May 2022 unless the CPUC changes their mind. The Solar Investment Tax Credit (ITC), currently at 26%, goes down to 22% in 2023, then zero in 2024. So all solar installations will effectively be 4% cheaper this year than in 2023, including any roofing or electrical work related to solar. Solar and battery system prices are going up, not down.
Equipment and Contractor Availability
Battery production is completely sold out until at least the second half of 2022. There are plenty of solar panels, just that price is slightly higher than in previous years. Contractors that have battery supplies will be very, very busy — and are likely to be overbooked by the spring of 2022.
Safety
Wildfire risks are increasing in the western U.S., and severe weather is increasing throughout the country More blackouts will occur as utility equipment fails to keep up with demand and the utility companies turn off power Homeowners and business will increasingly turn to clean, quiet, reliable batteries to minimize these risks
So if you are thinking about installing or upgrading a solar and battery storage system and you are still on the fence, please tune into this week's Energy Show.
Copyright 2021 - The Energy Show, Barry Cinnamon
I’ve been bombarded with customer questions about the change from Net Metering (NEM) 2 to NEM 3. If you haven’t heard, the California Public Utilities Commission (CPUC) is in the process of effectively eliminating Net Metering. If the preliminary decision by the CPUC goes through, the solar industry — including both new and existing solar customers — will be clobbered.
Here is the current situation in a nutshell. The CPUC decided to add a fixed charge of about $60 per month to the average new solar customer’s electric bill, reduce the daytime reimbursement rate from $0.30 to $0.05 per kwh, and reduce the grandfathering period of all customers (even existing customers) from 20 years to 15 years. They call this NEM 3, but new solar customers are better off effectively disconnecting their solar and battery systems from the grid — not net metering at all.
This poorly-reasoned NEM 3 decision is scheduled to go into effect on May 28, 2022. To compare NEM 2 to NEM 3 we ran the numbers with our financial modeling tools. The result is that paybacks for new solar systems go from about 6 years to 14 years, and paybacks for adding a battery go from approximately 9 years to 12 years.
The CPUC, Governor Newsom and state legislators were lobbied very heavily by … wait for it … PG&E, Southern California Edison, San Diego Gas and Electric, and the International Brotherhood of Electrical Workers. The solar industry advocated strongly for a more balanced NEM decision, and these lobbying efforts are continuing. Although there is a chance that the CPUC will modify their decision, there is no doubt in my mind that whatever the parameters of NEM 3 become, customers will be better off on the current NEM 2 program.
My advice to anyone interested in solar or battery backup is simple: don’t delay, act right away. Because of the inevitable rush to install solar and storage before May 28,2022, reputable contractors will be overbooked. Moreover, battery, inverter, and solar panel supplies are tight. Since there are already significant battery shortages, I recommend that prospective battery customer confirm that their contractor has equipment in stock.
For more background, numbers and impact on what NEM 3 means for solar and battery customers, please tune in to this week’s Energy Show.
Copyright 2021 - The Energy Show, Barry Cinnamon
My wife complained to me last week that it cost $80 to fill up her car (I was oblivious since I drive an EV). But I wasn’t surprised since the price of gas in San Jose is about $5/gallon.
Gas prices are definitely higher than they used to be, but the reality is that prices have been rock stable on an inflation-adjusted basis for over 30 years. In 1978, gas prices were $2.44/gallon compared to $2.24 in 2020. Over the same time period the average gas mileage of a car has gone up from 15 mpg in 1978 to 25 mpg in 2020. Adjusting for inflation and gas mileage, it cost $0.16/mile to drive in 1978 and $0.09/mile in 2020. Even at the U.S. average price of $3.42/gallon, it is still cheaper to drive a car in 2020 than it was in 1978.
Nevertheless, gas station signs advertising $5/gallon gas are jolting. And get this: in May, June and July of 2021 U.S. gas refineries exported record amounts of gasoline! Drilling for more oil in the U.S., releasing petroleum from the Strategic Petroleum Reserve, or building more refining capacity will not significantly reduce U.S. prices. The simple reason is that if prices are higher overseas, U.S. driller and refiners will simply maximize their profits by shipping their oil and gas to overseas customers.
Rather than groaning about high gas prices, there is one thing you can do to permanently avoid the impact of these future gas price shocks: get an EV and charge from solar. At average California solar electric rates of $0.10/kwh, driving costs are about $0.03 per mile. For more about high gas prices and how you can cope, please tune into to this week’s Energy Show.
Copyright 2021 - The Energy Show, Barry Cinnamon
So… regarding global warming, are we doomed? Or are there practical decarbonization paths to limit the impact of global warming?
I am an optimist (otherwise I would not have been in the solar business for over 40 years). There is a clear path to limiting global temperature increases to 2 degrees celsius by 2100. However, the necessary actions to achieve this goal creates “winners and loser,” resulting in political risks — regardless of the underlying social and economic needs.
To be clear, the winners will be various clean energy technologies, including wind, solar, EVs, building electrification and energy storage. The “losers" will be the incumbent fossil fuel industry, as well as their downstream customers. Unfortunately, the incumbent losers have much more lobbying money than the upstart clean energy winners. Fortunately, except for industrial process heat, electricity generated from clean energy sources is cheaper than fossil fuel power generation. But we need to transition to these clean energy sources much faster than we are now.
I have been involved in many formal and informal discussions about the costs, benefits and effects of various global warming solutions. However, it is tricky to see the interactions of these actions when taken considered together. For example, if we put a higher tax on carbon, does that mean that we do not need to incentivize renewables as much? If we are confident that carbon sequestration will become available at scale in 2030, does that mean we can expand our natural gas use? Or, if we plant a trillion trees, do we need a carbon tax? Basically, there are many levers we can use to get to the desired result.
To help provide guidance on the effectiveness of these various global warming solutions, I have been using a simulation tool called EN-ROADS. Please tune in to this week’s Energy Show for an introduction to EN-ROADS. We’ll also discuss my simulation efforts to keep the Earth’s temperature rise under 2 C by 2100 (hint: lots of renewables, electrification, nuclear and a carbon tax).
Copyright 2021 - The Energy Show, Barry Cinnamon
Are you worried about blackouts and public safety power shutoffs (PSPS)? Are you sick of getting ripped off by rising electric rates from your local utility? Then you’re one of the millions of homeowners and businesses who are interested in a battery backup system designed to work with your solar system.
It can be confusing to determine which battery and inverter system will be the best for your particular application, whether you are just adding a battery to your existing solar system, or installing a completely new solar and battery system. So this week’s Energy Show is all about selecting the best battery system for your home or business.
Major battery suppliers include LG, Tesla, Enphase, Generac and SolarEdge. However, unlike solar panels, which can be mixed and matched with different inverters, batteries are designed to work only with certain inverter systems — most commonly SolarEdge and Enphase. It’s like cars: you don’t get to pick the manufacturer of the battery that goes in your EV.
In addition to battery system availability (there are shortages of the most popular batteries), we will focus on the following technical criteria of the battery system market leaders:
- Battery capacity in kwh
- Battery power output in kw
- System efficiency
- Existing solar system compatibility
- System price (battery price doesn’t really matter)
- Battery warranty
So if you’ve been wondering what batteries should I buy with my solar system, listen to this week’s Energy Show for a detailed dive into the best and most widely available battery systems for your home or business.
Copyright 2021 - The Energy Show, Barry Cinnamon
Sometimes I wake up in the middle of the night in a cold sweat. Not from a real nightmare, just worrying about external issues affecting the solar and storage industry. We jokingly refer to our industry as the “solar coaster,” characterized by unexpected ups and downs.
The ups are typically expected events -- things for which we can usually plan in advance, such as changes to tax credits and incentives, continued unreliability of the electric grid, and increases in electricity costs.
The things we can’t plan for are the solar coaster downs. These are usually unexpected events, coming at us from left field. Over the past 20 years we have managed through the Y2K non-crisis, the silicon shortage in 2004, the housing crisis and recession in 2007, solar tariffs in 2012, and of course the Covid pandemic in 2020-2021.
My biggest nightmare right now relates to PG&E and other utilities trying to kill rooftop solar and storage so they can continue to sell their overpriced, unreliable and profitable electricity. We’re also navigating through a dire shortage of high quality storage batteries, challenges with maintaining high levels of customer satisfaction, and keeping our employees safe when they work on rooftops.
For my take on the challenges facing solar and storage contractors, please tune in to this week’s Energy Show.
Copyright 221 - Barry Cinnamon, The Energy Show
About 15 years ago the solar and fire protection industries worked together to improve the safety of rooftop solar panels. With the increased popularity of lithium ion batteries for backup power, the solar and fire industries are now focusing on battery safety.
Here’s the issue: anything that stores energy can be dangerous if that energy is released in an uncontrolled way, as in a fire or an explosion. It’s important to consider battery safety in the context of other forms of high density energy storage. Here on earth, uranium has the highest energy density at 80 million mega joules per kg. We call the sudden release of uranium energy an atomic bomb. From a theoretical standpoint, the energy density of antimatter is a thousand times higher than uranium, but so far only on Start Trek have the warp engines experienced an antimatter explosion.
Here on earth, chemicals with high energy densities are much more practical, especially for transportation. Hydrogen has an energy density of 120 mega joules per kg, but is tricky to handle as a compressed gas. Even uncompressed, hydrogen can do some damage (remember the Hindenburg). More practically, for over 100 years almost all cars used gasoline or diesel as a fuel. Gasoline has an energy density of 46 mega joules per kg. You can drive your car for 300 miles on a ten-gallon tank of gas that weighs 65 pounds. But fossil fuels are polluting, and no longer the most cost effective fuel for cars and trucks.
We have abundant and cheap solar and wind energy. But you can’t go far or fast with just a solar panel or windmill on the roof of your car — and 200 mile extension cords are impractical. Storing that solar or wind energy in a battery can give a car the range and performance that many drivers need. Today’s lithium ion batteries have an energy density of about 0.75 mega joules per kg. Powered by a lithium ion battery, a typical electric vehicle can go about 200 miles on a 75 kwh battery pack that weighs about 1000 pounds.
As the cost and performance of lithium ion batteries has improved, they are seeing increased use in homes and business — not only for backup power, but also to avoid sky-high utility costs in the late afternoon and evening. The high energy density of lithium ion batteries has made them ubiquitous in our phones, computers, earpieces and just about anything that needs a rechargeable energy source. Although lithium ion batteries are safer than gasoline, diesel and natural gas, the are still subject to combustion if damaged.
One of the industry’s experts on combustion is retired San Jose Fire Captain Matt Paiss. Matt is currently a technical advisor for battery materials and systems for the Pacific Northwest National Laboratory, and provides consulting and training services for fire and code officials. Please listen up to this week's Energy Show as Matt shares his experiences and insights on battery system safety.
Copyright 2021 The Energy Show, Barry Cinnamon
About 15 years ago the solar and fire protection industries worked together to improve the safety of rooftop solar panels. With the increased popularity of lithium ion batteries for backup power, the solar and fire industries are now focusing on battery safety.
Here’s the issue: anything that stores energy can be dangerous if that energy is released in an uncontrolled way, as in a fire or an explosion. It’s important to consider battery safety in the context of other forms of high density energy storage. Here on earth, uranium has the highest energy density at 80 million mega joules per kg. We call the sudden release of uranium energy an atomic bomb. From a theoretical standpoint, the energy density of antimatter is a thousand times higher than uranium, but so far only on Start Trek have the warp engines experienced an antimatter explosion.
Here on earth, chemicals with high energy densities are much more practical, especially for transportation. Hydrogen has an energy density of 120 mega joules per kg, but is tricky to handle as a compressed gas. Even uncompressed, hydrogen can do some damage (remember the Hindenburg). More practically, for over 100 years almost all cars used gasoline or diesel as a fuel. Gasoline has an energy density of 46 mega joules per kg. You can drive your car for 300 miles on a ten-gallon tank of gas that weighs 65 pounds. But fossil fuels are polluting, and no longer the most cost effective fuel for cars and trucks.
We have abundant and cheap solar and wind energy. But you can’t go far or fast with just a solar panel or windmill on the roof of your car — and 200 mile extension cords are impractical. Storing that solar or wind energy in a battery can give a car the range and performance that many drivers need. Today’s lithium ion batteries have an energy density of about 0.75 mega joules per kg. Powered by a lithium ion battery, a typical electric vehicle can go about 200 miles on a 75 kwh battery pack that weighs about 1000 pounds.
As the cost and performance of lithium ion batteries has improved, they are seeing increased use in homes and business — not only for backup power, but also to avoid sky-high utility costs in the late afternoon and evening. The high energy density of lithium ion batteries has made them ubiquitous in our phones, computers, earpieces and just about anything that needs a rechargeable energy source. Although lithium ion batteries are safer than gasoline, diesel and natural gas, the are still subject to combustion if damaged.
One of the industry’s experts on combustion is retired San Jose Fire Captain Matt Paiss. Matt is currently a technical advisor for battery materials and systems for the Pacific Northwest National Laboratory, and provides support for fire and building departments. Please listen up to this week's Energy Show as Matt shares his experiences and insights on battery system safety.
Copyright 2021 The Energy Show, Barry Cinnamon
6/30/21 News Story: “PG&E just asked regulators for a $3.6b rate hike to reduce fires from their own power lines”
Another “in your face” profit grab from a utility that blames rooftop solar for high electric rates. This rate increase works out to $36 per month for every homeowner in California! Do they think we’re stupid?
The biggest threat to rooftop solar and storage is not political. It’s not tariffs. Or product shortages. The biggest threat is from aggressive lobbying (which we pay via our electric bills) and outright lies from monopoly utilities.
It’s pretty simple: utilities are trying to prevent businesses and homeowners from installing their own solar and battery systems so they maximize their profits. They lie about rooftop solar and storage. Adding insult to injury, they are also trying to increase fees for customers who already have these systems. It’s an outright, blatant, anti-competitive profit grab that will harm all current and future solar + storage customers — while at the same time increasing monopoly utility profits. And our regulators have historically gone along with these profit grabs.
Utilities invented their Big Lie to convince the public that they are the good guys, only trying to protect ratepayers. BS.
Did your electric rates go up because of rooftop solar? No — they went up because of high transmission costs and ridiculous utility executive salaries. Are our wildfires caused by rooftop solar? No — the deadliest fires have been caused by inadequate transmission line maintenance. Will paying utilities more money solve your home and business blackout problems any time soon? No — the fastest and cheapest way for you to get reliable power is with your own backup system.
Check out this short video for a more realistic perspective: We Can’t Trust Them - https://www.youtube.com/watch?v=a9TVsgUvtlI
It is inconceivable to me that the California Public Utilities commission is considering another economic shift from homeowners, schools and businesses to a twice-bankrupt and criminal utility (PG&E) who already has a guaranteed 10% rate of return, who just raised electric rates by 11% this year — and is now asking for another $3.6 billion rate increase.
Specifically, California’s three monopoly utilities want to:
- Add monthly fixed charges to solar customer bills,
- Reduce solar reimbursement rates,
- Eliminate annual net metering, and
- Change net metering grandfathering for existing solar customers.
The only way to stop this utility profit grab is for homeowners and businesses to call out this Big LieL
- Tell Governor Newsom that increasing solar costs is absolutely the wrong way to solving our electricity problems.
- Tell the California Public Utilities Commission that paying PG&E even more money is unfair to all ratepayers.
- Tell them both that we need more local solar and storage, not more expensive long-distance transmission lines that cause wildfires and perpetually high maintenance costs.
Take action now:
- Contact the Solar Rights Alliance at https://solarrights.org
- Contact the California Solar and Storage Association at https://calssa.org
For more about this Utility Lie, please listen up to this week’s Energy Show https://cinnamon.energy/the-energy-show/. We’ll go through the specific changes monopoly utilities want, the falsehoods behind their Big Lie, and steps we all need to take before the utility profit grab goes into effect.
Copyright 2021 - The Energy Show, Barry Cinnamon
This week’s Energy Show was recorded on Earth Day 2021, 51 years after the very first Earth Day in 1970. When Earth Day was established our country was concerned about water and air pollution — not global warming.
There were two environmental disasters that year: a drilling rig leaked millions of gallons of oil off the coast of Santa Barbara, and the Cuyahoga River on the southern shore of Lake Erie started burning as oil and other industrial materials dumped into the river literally burst into flames. There was widespread acknowledgment throughout the country that we should not be polluting our environment for the sake of convenience. Anyone watching TV in 1970 probably remembers the crying Native American in the “Keep America Beautiful” PSA.
Since then we’ve made tremendous progress reducing water, air and toxic waste pollution. While we are still focused on these issues, the bigger issue is global warming. All of the World’s governments — including the U.S. now -- are striving to reduce the warming of the earth to less than 1.5 degrees Celsius. World governments are convening to more aggressively limit CO2 emissions. Notably, the U.S. plans to accelerate our CO2 emission reductions by 50% by 2030.
In spite of these high level government efforts, reversing global warming is a battle that must be fought by committed citizens locally. One of the most notable efforts in California is being led by Menlo Spark. They are an independent non-profit group that has set a goal for the City of Menlo Park to be climate neutral by 2025. Menlo Spark's efforts are proving to be a model for other communities across the State.
My guest on this week’s Energy Show is Dianne Bailey, Executive Director of Menlo Spark. Their focus is on individual and community-based changes such as building electrification, switching from fossil fuel vehicles to EVs, and implementing clean electricity sources such as solar and storage. To learn more about the origins an community activities of Menlo Spark, please tune in to this week’s episode of the The Energy Show.
Copyright 2021 - The Energy Show, Barry Cinnamon
Riddle me this: what is the most common element in the universe, comes in various colors, and was not the subject of “Jumpin’ Jack Flash,” by The Rolling Stones?
Here are a few more hints. Over 100 million metric tons of this gas are produced per year globally, and nearly all of that is made from fossil fuels. In its most common form, this element has one proton and one electron. It was the combustion source for the demise of the Hindenburg. And if you take two of these atoms, add an oxygen atom, you’re all wet.
OK, it’s hydrogen. Almost all of the world’s hydrogen is made from natural gas. The best hydrogen is green, produced by the electrolysis of water, using electricity from renewable sources (solar, wind, hydro). The worst hydrogen is brown, made from coal from a gasification process. Gray hydrogen is produced from natural gas using the steam-reforming method. Both brown and gray hydrogen production results in large quantities of CO2 emitted into the atmosphere. Blue hydrogen is made from either coal or natural gas, and is theoretically cleaner since the CO2 emissions are sequestered or repurposed.
What really interests me is the potential for using renewables, most likely solar and wind, to create vast quantities of affordable green hydrogen for industrial processes — and possibly transportation.
Our guest on this week’s Energy Show is Janice Lin, CEO of Strategen Consulting. She is the driving force behind the Green Hydrogen Coalition, as well as several other successful energy storage organizations. Please tune in to this week’s show as Janice explains how hydrogen is made, distributed, and used today — as well as the potential for widespread applications of green hydrogen.
Copyright 2021 - The Energy Show, Barry Cinnamon
We did a recent podcast on the Texas power failures, with a focus on practical solutions to these weather-related events.
This week I’m happy to have a first-hand perspective of this extended Texas blackout with Jeff Wolfe, CEO of Veloce Energy. Jeff will share his uncomfortably cold experiences for three days — complete with almost- frozen pipes, lack of water, minimal driving, and limited food choices.
But Jeff and his family didn’t suffer at all…they had a solar system with battery backup. His lights never went out. He had heat as long as there was natural gas pressure. His water pipes didn’t burst. The food in his fridge stayed cold. His computer and internet continued to function.
Please listen up to this week’s Energy Show for Jeff's practical insights on what Texas can do to solve their structural and political electricity problems. And, naturally, specifics about how a solar and battery system can keep your home and business powered up during the next extended blackout.
Copyright 2021 - The Energy Show, Barry Cinnamon
We all know about the devastating blackouts that hit Texas last month. Millions of people were without power for a week. People were miserably cold, pipes froze causing flooding damage, and most people were without potable water. Sounds eerily like the blackouts that occur in California. Been there, done that for three years in a row…and there is no end in sight.
Rick Perry, the former Texas governor and DOE Secretary, said: “Texans would rather be out of power than connect to the grid outside of Texas.” I’m pretty sure he is not talking about the people who’s lives were disrupted from this latest blackout.
The causes of the blackout are fairly obvious. It was unexpectedly cold — note that Texas has had cold weather like this every ten years or so. Energy systems were not “weatherized” to withstand freezing temperatures, so all types of power plants failed to generate sufficient power. The Texas electric grid is isolated from eastern and western electric grids, so extra power could not be transferred from out of state.
Moreover, the solutions to these problems are also fairly obvious. But it is extremely unlikely that Texas regulators, legislators, ERCOT, businesses and utilities will agree to these solutions before the next disaster. As we’ve seen in California, the finger-pointing will go on for years, billions of dollars will be fought over in bankruptcy courts, and whatever judgments and laws that are indeed passed with be appealed for several more years. There are simply too many strong business interests that are fundamentally opposed to changing the way Texans get their electricity.
So if you are a homeowner or business in Texas, are you going to wait for a government solution and hope that there are no more freezes, heat waves or hurricanes? Or are you going to explore your own solutions to ensure you have safe, reliable an inexpensive power?
Please listen up to this week’s Energy Show as we discuss timely and practical solutions to keeping the lights on in Texas.
Copyright 2021, The Energy Show, Barry Cinnamon
This week we’re talking about carbon capture and storage, or CCS (sorry, these TLAs are not my fault).
Here’s why carbon capture and storage is a hot topic. If we could only capture the CO2 that is emitted when we burn fossil fuels, we could keep burning fossil fuels forever. Hooray - especially if you’re in any business related to fossil fuels, which is a pretty big chunk of our economy. Taking it one step further, if we could capture the CO2 that is already in the atmosphere, we could potentially reverse the earth’s global warming trend.
CCS is a fairly straightforward technology, and has been in use for about a hundred years. Billions of investment dollars have been going into scaling up various CCS processes for decades. CCS works best at the source of emissions, such as electric power plants and industrial processes (making steel and cement).
When I look at CCS from a thermodynamic, economic and technological maturity standpoint, it is a dead end. Here’s why:
First, CCS requires a lot of additional energy to remove CO2 from power plant exhausts, and even more from the atmosphere. Remember where that CO2 comes from: when we burn hydrocarbons (natural gas, coal or oil) we release a lot of energy, along with water vapor and CO2. It takes a lot of energy to re-capture the CO2.
Second, the extra energy is expensive. The efficiency of CCS power plants is about 40% lower than ordinary power plants. So the energy from these clean CCS plants costs 40% more.
Third, in spite of billions of dollars and decades of intensifying research, there are ZERO power plants or industrial processes in the world that are ready to scale up.
So why is there so much investment and interest in CCS? If the technology were to work at scale we could keep burning fossil fuels. I have nothing against R&D of various CCS technologies; maybe someday there will be a breakthrough.
The problem is that we are betting on a CCS breakthrough in the future, while continuing to burn fossil fuels now. While the fossil fuel industry lobbies for a CCS miracle, other more economic and workable technologies are not being deployed. It reminds me of a person addicted to smoking cigarettes, who knows about the risks of lung cancer, but keeps smoking in the hopes that science will find a cure before he dies.
I’m convinced that pursuing CCS as a solution to global warming will INCREASE our CO2 emissions over the next 20+ years. We would be on a faster, cheaper course to solve global warming by focusing on currently viable and scalable technologies.
To learn more about the science behind carbon capture and storage, their economic realities, as well as practical energy alternatives, please listed up to this week’s Energy Show.
Copyright 2021 - The Energy Show, Barry Cinnamon
This week we’re focusing on the most common question we get after someone has installed solar and energy storage: “How do I read my electric bill?”
Standard electric bills are hard enough to read, but when you have solar and storage you almost need a degree in forensic accounting to figure them out.
At a high level -- and forgive my cynicism -- we are pretty much stuck with a ridiculous array of random charges from utilities. The good news is with a properly designed solar and battery storage system you can completely eliminate your electric bill.
The bad news is that with the majority of the population working and schooling at home over the past year, our electric bills are at an all-time high. The added electricity consumption (measured in kwh), plus annual rate increases (those $/kwh numbers add up), plus Community Choice Aggregation electricity providers cross-billing, make it almost impossible to determine how well your solar and storage system is working.
You need to know three things in order to evaluate the economic performance of your system:
1) Your annual True Up statement, usually 12 months after your system was interconnected. This statement tells you how much your charges and credits were each month, in both kwh and dollars.
2) Your total solar energy generation amount in kwh, which comes directly from your monitoring system. Beware, do not believe the amount that the utility says you generated; that number is ALWAYS wrong.
3) The projected amount of electricity, in kwh, that your solar and storage contractor expected from your system.
Once you have these three pieces of information, and a dictionary to decipher the blitz of TLAs that we’ll explain on this week’s Energy Show, you will have a better understanding of your electric bill.
Copyright 2021 - Barry Cinnamon, The Energy Show
I’m starting off the year with my Ten Solar and Storage Trends for 2021. But first, a recap from Dave Barry, my favorite chronicler of all that is crazy and warped in this world: “2020 was a year of nonstop awfulness, a year when we kept saying it couldn’t possibly get worse, and it always did. This was a year in which our only moments of genuine, unadulterated happiness were when we were able to buy toilet paper.“
Looking ahead to 2021:
The solar investment tax credit was extended at the last minute by President Trump Home electric bills went through the roof in 2020, and will stay high for most of 2021 The President, Senate and House of Representatives are committed to accelerating transition to clean energy
So here are my predictions for solar and storage trends in 2021:
All roof orientations are fair game for solar Buildings will be designed to be carbon negative Skill levels for solar and storage contractors will increase Module level power electronics duopoly will continue Customer service and warranties are key battery system selection criteria UL 9540 requirements will stall new battery system releases Rooftop solar systems should be oversized EV chargers will be common options for new solar and battery installations The home of the future will have two batteries in every garage Whole home battery backup will remain expensive
For the details of these predictions, please listen up to this week’s Energy Show.
Copyright 2020 - The Energy Show, Barry Cinnamon
Sometimes I think that the last thing we need is more electric utilities (except for the mini-utility our customers have with solar and batteries). But I make exceptions for new Community Choice Aggregator (CCA) utilities that are striving to reduce electricity costs in a sustainable way, including Silicon Valley Clean Energy (SVCE). One of the founding board members of SVCE, Howard Miller, is our guest on this week’s Energy Show.
Howard wears two hats: both as Mayor of the city of Saratoga, and Chairman of the Board of SCVE. Howard is also an adjunct professor of West Valley College. I've known Howard for almost 20 years, both as a friend and customer. No surprise that he is passionate about the environment, as well as new solar and battery storage technology.
Silicon Valley Clean Energy was born in the second wave of CCAs following an expensive legal battle simply to get state authorization to operate. In fact, PG&E spent over $46 million to oppose CCAs in California, compared to the less than $100k spent by CCA supporters. Once these legal roadblocks were removed, several of the cities in Silicon Valley got together to form SVCE. Separately, San Jose created their own CCA called San Jose Clean Energy. The cities of Palo Alto and Santa Clara already had municipal utilities, so there was no need to join SVCE.
The fundamental premise behind SVCE is that clean energy can be provided to customers in a way that is significantly less expensive than investor owned utilities. In addition to customer savings, additional funds are available to invest in local programs and resources. Nearly 5 years since their formation, SVCE now buys and distributes nearly $300M in carbon free electricity.
To learn more about the politics of utilities in California, the ways in which the “guaranteed 10% profit” business model of investor owned utilities is fundamentally flawed, and perhaps how to read your electric bill, please listen up to this week's Energy Show.
Copyright 2020 - Barry Cinnamon, The Energy Show
Why is Electricity So Expensive?
We can complain all we want about the absurdly high price of electricity, but this situation is likely to persist for two reasons.
First, electric companies are government-sanctioned monopoly utilities. There is usually only one electricity supplier, just as there is one water and natural gas supplier. Telephone services — and phones themselves — used to be a monopoly; it took years of legal battles leveraging the Sherman Antitrust Act to break the telephone monopoly. Now there is a competitive market for phone services and handsets, just as there is the potential for a free and competitive market for electricity.
Second, the cost of electricity is primarily affected by the local cost of living; factors such as electric company wages, real estate costs, taxes, etc. So locations with a high cost of living — such as Hawaii, California and New York — have high electricity prices. And these high electric prices are likely to persist without some magical solution.
Speaking of magical solutions, it’s not practical to drill a well in your back yard for your own natural gas or water, but I can imagine a future in which you could generate your own electricity. How are the existing monopoly electricity providers reacting to this reality in which customers can produce their own less expensive electricity?
Please listen up to this week’s Energy Show as we delve into the reasons why electricity is so expensive — and how things are changing as solar, storage and better public policies are rolled out.
Copyright 2020 - The Energy Show, Barry Cinnamon
Unless you’re totally off the grid -- both literally and figuratively -- you know that there are power shortages in California. With California experiencing hotter weather, people working at home, dirty power plant retirements, fires, and Public Safety Power Shutoffs, power outages have become a fact of life.
But the solution to these problems does not have to exclusively be more power generating capabilities. Demand Response is a concept that describes the reduction in power consumption by utility customers to better match the available supply of power. An example would be if homes and businesses reduced their air conditioning needs — by simply raising the set point on their thermostats — during a peak power demand event at 4 PM on a hot summer day.
There are challenges to implementing Demand Response programs, including communicating to customers when they should cut back their power usage, compensating these customers for their inconvenience (keep in mind that utilities profit when they don’t have to purchase very expensive peak power), and installing the hardware and software necessary to initiate and support these services.
OhmConnect has a better way to for customers to participate in Demand Response without expensive equipment and metering. Their approach is to use your existing internet-connected thermostat and smart plugs, in conjunction with data from your electric meter, to provide these Demand Response benefits to the grid. Their business model is simple: customers get paid for lowering electric usage during high demand, and utilities can keep the power on without purchasing expensive peak power.
My guest on this week’s Energy Show is Cisco DeVries, CEO of OhmConnect. Cisco is a legend in the energy industry, having transformed solar financing by pioneering Property Assessed Clean Energy financing programs (PACE). Now he is transforming Demand Response with OhmConnect. Please join me as we discuss how Cisco and the OhmConnect team are deploying their technologies to help reduce power demands during peak periods.
Copyright 2020 - The Energy Show, Barry Cinnamon
You just invested in a brand new EV charged by your rooftop solar and battery. Then, a year later, your utility adds a $50/month fixed charge to your bill just because you have rooftop solar. How would you feel? This scenario is not just hypothetical. Utilities all over the country are lobbying to change rates for solar and battery customers by adding large fixed fees, eliminating net metering, delaying interconnections, and deliberately mismanaging incentive programs.
This anti-competitive behavior should be no surprise. Businesses don’t like competition; it hurts their profits. Homes and businesses can generate electricity for much less than their utility charges. So rather than find ways to be more efficient, competitive and environmentally friendly, utilities spend hundreds of millions of dollars suppressing competition from rooftop solar and battery storage and diminishing your solar and battery storage rights. To add insult to injury, the money they are spending was collected from ratepayers. You!
Unfortunately, the solar and storage industry doesn’t have the bankroll to counteract these utility lobbying efforts. But what we do have is public support: polling shows that 95% of people support solar and battery storage. The Solar Rights Alliance was founded to convert the support of millions of solar and storage enthusiasts into action that will change these anti-competitive, environmentally-hostile policies. The Solar Rights Alliance operates under the premise that everyone should have the right to generate his or her own power directly from the sun, and that no monopoly company or special interest should try to block or “own” the sun.
My guest on this week’s show is Dave Rosenfeld, the Executive Director of the Solar Rights Alliance. He’s spent his career building movements and institutions that expand freedom, liberty and justice -- including National Public Radio, the Public Interest Research Group and the Public Interest Network. Please listen up to this week’s Energy Show as Dave and I discuss the issues that the Solar Rights Alliance fights for every day to protect your solar and battery storage rights.
Copyright 2020 - The Energy Show, Barry Cinnamon
Solar panels are long term assets - guaranteed by every manufacturer for at least 25 years. Lithium ion batteries are guaranteed by most manufacturers for at least 10 years. But there are no major solar panel manufacturers have been in business for 25 years, and no major battery manufacturers for 10 years.
So how can a homeowner, building owner or financing company assess the reliability of solar panels and batteries? The best way is to scientifically gather and assess reliability data for these components. To be objective, this reliability analysis must be done by an independent organization - not by manufacturers.
PV Evolution Labs is the leading independent lab for equipment testing. They assess the bankability of PV modules, inverters, storage, and other balance-of-system equipment. Joining us on this week’s Energy Show is Jenya Meydbray, CEO and co-founder of PV Evolution Labs.
Please Listen Up to this week’s Energy Show as Jenya talks about the founding of PV Evolution Labs and shares his insights on reliability of solar panels and batteries. Jenya and I also share our real-world reliability advice as manufacturers, contractors and technologies come and go over the years.
Copyright 2020 - The Energy Show, Barry Cinnamon
There are over a million homes with rooftop solar in the U.S. – out of about 100 million detached single family homes. So we are looking at market penetration of about 1%. There is a lot of growth potential for solar, storage and maintenance work.
Once people have a solar power system the first question they ask is “how do I read my electric bill?” The second question they ask is “how often should I clean my solar panels?”
Now reading your electric bill – that’s another show altogether given how complicated the bills are. But on today’s show we’ll mathematically and practically answer this second question –how often should I clean my solar panels.
We will base our recommendation on daily and annual performance analysis of systems before and after cleaning and also provide advice on how – and especially how not -- to clean solar panels.
To start, you might be wondering how the solar panels get dirty. They get dirty basically by wind-blown dust. Just like your car or your windows, the dust accumulates on the surface and builds up over time. And, if you are in a dusty area like a farm or near dirt roads, the accumulation may be worse. Pollen accumulation is another factor which typically happens in the spring. Some people talk about cleaning up after the birds, but bird debris is usually not a problem unless your name is Hitchcock and you live in Bodega Bay.
What happens when panels get dirty the accumulated dirt absorbs or reflects the photons that hit the solar panels and output begins to decline. The amount of output decline varies based on location and amount of soiling. Interestingly enough, it also depends on where on the panel the soiling happens.
So if you are like most solar power system owners and you have been wondering how often should I clean my solar panels, please listen to this week’s Energy Show as we walk through the performance implications of dirty solar panels and the best method for cleaning your system.
Copyright 2020 - The Energy Show, Barry Cinnamon
For the first time in 20 years California is experiencing rolling blackouts. Reports indicate that over 3 million residents were recently affected. Conditions that caused these blackouts will continue, and the situation will get worse during fire season when we can expect Public Safety Power Shutoffs.
In the olden days, blackouts were an opportunity to sit around by the fire and read by candlelight. Not any more. We rely on electricity to keep our food cold, to keep our lights on, to charge our cars and to keep our family connected to both school and work.
PG&E is not being candid about the real cause of these recent blackouts. Ostensibly, the rolling blackouts were caused when hot weather caused air conditioning demand to spike at the same time that several 500 MW natural gas power plants went offline, either due to scheduled maintenance or failure. But when I checked into the cause of several extended Silicon Valley outages, it became apparent that these outages were due to local transformer failures — not the one to two hour rolling blackouts that were announced.
The solution is almost universally recognized: more battery storage capacity charged by solar. I say “almost” because PG&E and other utilities are still recommending flashlights, candles and gas generators. Their logic is entirely based on their profit motive to install more of their own generating and storage capacity. PG&E and other utilities don’t want homeowners to install solar-charged battery backup systems — which are safe, reliable and affordable.
Please tune in to this week’s Energy Show for the gory details about this latest rash of blackouts — as well as what you can do to keep your lights on, your food cold and your family connected.
Copyright 2020 - The Energy Show, Barry CInnamon
Like every other industry, the Covid-19 impacts on the solar industry have been significant. Supply chains have been disrupted, customer demand has decreased as economies suffer, and then, customer demand has gone up as people realize they need their own reliable source of power. And, there is a big question mark on government policies towards clean energy –especially here in the U.S.
People in the global solar and storage industry want information to help them navigate these uncertain times and one of the best information sources in the solar industry is IHS Markit. IHS Markit is a leading provider of data analytics and expertise serving a number of industries including cleantech and renewables, oil and gas, automotive, financial and economics and my guest on this week’s Energy Show is Cormac Gilligan, Associate Director of Solar and Energy Storage at IHS Markit. Cormac is like a human crystal ball for the global solar industry and is widely regarded as a leading authority on the global PV inverter market. His analysis and commentary is regularly published by leading PV industry media and the global press.
Given Covid-19 impacts on the solar industry, we could all use some accurate forecasting, so please listen up to this week’s Energy Show.
Copyright 2020, The Energy Show - Barry Cinnamon
Solar and battery backup systems are the ideal antidote to the triple threat of high evening electric rates (over $0.50/kwh), frequent power failures (some of which are deliberate shut-offs), and our increasing dependence on electricity for the necessities of life (food, phones and fun).
Several established companies — including Tesla, LG-Chem, SolarEdge and Enphase — have developed excellent solar and storage systems for homeowners. These systems are great, but they must be designed properly so that they meet both the power (watts) and energy (kwh) needs of a home during an extended blackout.
Please listen to this week’s Energy Show as we talk about the evolution of battery storage technology, how solar and batteries work together, the technical limitations of storage systems, and the critical software and hardware components that factor into design considerations for battery backup systems that will reliably keep your lights on and your fridge cold.
Copyright 2020 - The Energy Show, Barry Cinnamon
The solar industry is used to rapid changes, hence the moniker “The Solar Coaster.” But this year the changes are at their most extreme in my recollection: rapid adoption of battery storage, tariffs, blackouts, the coronavirus pandemic and a recession.
It takes a varied set of skills to run a successful solar business over the long term in such a dynamic environment. Not only does a company need the right mix of technology, marketing and strategy, but they also need a management team that is focused on long term success. Companies that are in for the quick buck, featuring n low prices and “free” solar deals, usually disappear just as quickly.
Over the past decade I’ve gotten to know some of the best locally-focused solar companies around the country. One of the companies that stands out is Renova Energy, based on the Coachella Valley in California.
Please listen up to this week’s Energy Show featuring Vincent Battaglia, CEO of Renova Energy. Vincent shares his perspectives on meeting customer's changing energy needs, the future of the solar industry, and his insights into the keys to long-term success in the solar and storage industry.
Copyright 2020 - The Energy Show, Barry Cinnamon
Today’s solar technology is the most sustainable way of generating energy. Solar power is inexpensive on a kilowatt per hour basis, is low maintenance, has zero fuel requirements, generates no emissions, and is completely silent.
But even solar leaves a waste footprint, primarily because there is a lot of equipment that is manufactured and installed. Energy is consumed during component and equipment manufacturing, shipment and installation — whether on a utility-scale field, commercial flat roof or home. Waste is inevitably generated, especially packaging materials (I was kicked out of my first home office because we were recycling too much cardboard).
Perhaps the biggest waste footprint issues will arise when solar installations are de-commissioned at the end of their life. Aluminum and steel racking can be profitably recycled. However, as with many other consumer and industrial products (tires, electronics, etc.), there are significant costs associated with shipping and recycling solar panels. It is not an easy process to separate the aluminum, glass and silicon that are the primary components of solar panels.
This all comes back to the concept of sustainable solar development, and in the solar industry, sustainability is more than just a buzzword. We strive to walk the talk. As a result, most solar companies have solar panels on their roof, use EVs in their fleet and are compulsive about recycling.
Our guest on this week’s Energy Show is TJ Kanczuzewski, CEO of Inovateus Solar. Based in South Bend, Indiana, Inovateus is emphasizing corporate sustainability on all of their projects. Please listen up to this week’s Energy Show as TJ discusses how Inovateus Solar has established their sustainability plan, and how they are extending sustainable solar development for their projects and with business partners.
Copyright 2020 - The Energy Show, Barry Cinnamon
With the upcoming wildfire season in California and Covid-19 stay-at-home requirements, many people are looking into ways to power their home when utility power goes out. Battery backup systems coupled with rooftop solar are an ideal solution to keeping the lights on during these blackouts. Although these battery backup systems are affordable, quiet and clean — there are limits to the amount of power they can provide.
We all have had experiences with the limited energy capacity of batteries — neither our phones nor EVs seem to run as long as we would like. Moreover, we know that battery-powered devices cannot provide as much power (sometimes referred to as in more technical terms as “oomph”) as devices that have cords plugged into the wall. These limitations are based on both the energy capacity in the battery (measured in kwh), as well as the power delivery capacity of the battery (measured in watts).
Large appliances in homes presents the biggest challenge to powering a whole house with battery power. Power requirements for a central AC, electric oven/stove, pool pumps or EV chargers can be over 5,000 watts each. If these appliances were to be powered by a battery backup system with a 10 kwh or 13.5 kwh battery, that battery would be discharged completely within a few hours — leaving no more energy for more essential items such as refrigerators, lighting and computers. Of course, a determined DIY homeowner could turn off the circuit breakers to these appliances when the power goes out. But this approach does not work if the blackout occurs at night or when no one is home.
To solve this problem, Span has developed a “smart” electrical panel that provides detailed control and monitoring over every single electric circuit in your house. Arch Rao, CEO of Span, is our guest on this week’s Energy Show. Prior to founding Span, Arch was head of products at Tesla Energy, working on their PowerWall, and previously he was at the Westly Group and Stanford University. Please join me as Arch explains how Span makes home energy connected and intuitive with a smart electrical panel.
Copyright 2020 - The Energy Show, Barry Cinnamon
Everyone is looking forward to a return to some degree of normalcy as we recover from the corona virus pandemic. But it is very hard to make sense what a new normal would be with all the conflicting information from health, economic and policy experts — not to mention the almost diametrically opposed viewpoints expressed in various media outlets.
The reality is that the progression of the corona virus will dictate the pace at which we will return to normal. Unfortunately, there are just way too many variables — on a worldwide basis — to predict when the corona virus will be reduced to a manageable level, perhaps like the flu or common cold.
I’m not a medical or economic or political expert — but I do know a bit about energy, solar and storage. As a result of the corona virus, the solar + storage industry has been on an extreme version of the Solar Coaster. Like most businesses, almost all solar and battery companies were completely shut down for a few weeks in the March/April time frame.
Since energy systems are generally considered “essential infrastructure,” many companies were able to restart as long as they followed applicable social distancing protocols. Unfortunately, local building departments have been slow to resume their permitting and inspection activities. More troubling has been that utility processing of interconnections has been extremely slow; our local utility continues to find virtually every excuse to delay solar and storage installations and increase costs.
Fortunately, the supply chain for solar and storage equipment has been pretty good — so far. Most companies have not experienced any significant shortages of solar panels, inverters or batteries. But the increased need for home and business backup power — coupled with the upcoming wildfire season here in California — is increasing the demand for battery backup systems. As a result, the biggest “supply chain” limitation that most contractors are experiencing relates to the availability of experienced solar and battery installers.
So please listen up to this week’s Energy Show as we discuss the changes the solar industry has experienced during the corona virus pandemic, and our outlook on the future as we move toward the “new normal.”
Copyright 2020 - The Energy Show, Barry Cinnamon
As our society recovers from the triple threats of Coronavirus, economic collapse and social unrest, the longer term threat of global warming continues to hang over our heads. Earlier this year — just as the Coronavirus hit and our economy went into a recession — the Trillion Trees Act was introduced.
Representative Bruce Westerman, a pro-logging advocate from Arkansas introduced this act, along with several Republican colleagues. Representative Steve Stivers of Ohio hailed the act as offering a powerful solution to combat our changing climate. And President Trump declared the US will join this initiative. A fundamental claim of this initiative is that a trillion trees is an important part of solving the global climate crisis. In itself, this claim is an acknowledgment by Republicans that there is indeed a global warming problem that humans can effectively address.
Both political parties to some degree acknowledge that global warming is a man-made problem. With abundant apologies to Joyce Kilmer: "I think that I shall never see, a Global Warming Solution as lovely as a tree. So the real question becomes: “how effectively can a trillion trees solve global warming?”
Please listen to this week’s Energy Show as we delve into a few of the scientific and economic issues related to the Trillion Trees Act, including: how trees sequester carbon, how much CO2 will a trillion trees remove, how much land is required, how much will it cost to plant a trillion trees, how long will it take for these trees to capture atmospheric CO2, and to cap it all off — can Congress pass such a bill.
Copyright 2020 - The Energy Show, Barry Cinnamon
In response to the Financial Crisis of 2008, Rahm Emmanuel — at the time Barack Obama’s Chief of Staff — quipped: “Never let a good crisis go to waste.” The death, economic destruction and havoc wreaked by the Covid-19 crisis is by no means “good;” nevertheless, sometimes it does take a life-economy-society altering crisis to overcome the inertia that stands in the way of fundamental changes.
One of those changes that we need to make relates to our archaic electric grid. New technologies — wind, solar, batteries, EVs, computer controls, building electrification, software, heat pumps — make the distributed electric grid cheaper, safer and more efficient. But we have over one hundred years of established grid infrastructure practices standing in the way of transforming our electric grid.
Companies that are transforming our electric grid have a tremendous market opportunity, magnified and accelerated by any government stimulus spending that may be allocated. The problem is not just isolated to regular upgrades and maintenance of our grid. Instead, the big opportunity is to redesign the grid — much as the interstate highway system revolutionized transportation in the U.S.
One new company in this space is Veloce Energy. It’s my pleasure to have Jeff Wofe, CEO of Veloce, as our guest on this week’s Energy Show. I’ve known Jeff for over 15 years since he was the founder and Chairman of GroSolar, a pioneering national distributor and installer of solar equipment throughout the US. Jeff and I served for many years on the board of the Solar Energy Industries Association (SEIA), where we worked side-by-side on solar policies such as the Investment Tax Credit (ITC).
Please listen to this week’s Energy Show as we Jeff describes Veloce Energy’s grid-edge system architecture. This architecture will provide simplified connections for distributed generation, cost-effective resilience for both buildings and vehicles, and a streamlined path to help us in transforming our electric grid of the future.
Copyright 2020 - The Energy Show, Barry Cinnamon
With the Stay At Home orders in place throughout a large part of the U.S., many of us are now 100% dependent on our home's electric grid for work — as well as lights, refrigeration, HVAC and entertainment.
Unfortunately, our old fashioned electric grid is not up to the challenges of wildfires and storms, not to mention ever-increasing maintenance costs. Transmitting power long distances over high voltage transmission lines is particularly vulnerable to disruptions. Although this old grid was good for over a hundred years, new technologies — particularly battery storage, solar and smart appliances — are more reliable and less expensive.
These new technologies move the generation and storage of electricity much closer to the buildings that need this power — a design that is called Distributed Generation. In suburban areas there is often enough available roof space for solar panels; power for these systems is generated Behind the Meter (on the customer’s side of the meter). But in urban areas there is rarely enough roof space; instead, large solar power systems can be installed over parking lots, on brownfields, or on warehouse rooftops. With this design the power is generated on the utility’s side of the meter — a concept called Wholesale Distributed Generation.
Wholesale distributed generation makes terrific environmental and economic sense. The Clean Coalition was established in 2009 to accelerate the deployment of wholesale distributed generation. They advocate for a modern, efficient power system that takes advantage of these new solar and storage technologies to provide clean, reliable and more affordable energy.
My guest on this week’s show is Craig Lewis, the Executive Director of the Clean Coalition. I’ve known Craig for almost 15 years — going back to his work at GreenVolts, one of the pioneering solar concentrator companies. Please Listen Up to this week’s Energy Show as Craig shares how the Clean Coalition is working to create fair, transparent, and effective policies and programs to help power the United States with renewable energy from local sources.
Copyright 2020 - The Energy Show, Barry Cinnamon
The Covid-19 crisis will transform many of our traditional businesses processes. Although this podcast was recorded before Shelter In Place became a household phrase, Greenlancer‘s outsourcing business model is proof that there are better, faster and safer ways to handle many traditional business processes.
Solar hardware costs — such as solar panels, batteries and mounting equipment — continue to decline. However, non-hardware costs, referred to as “soft costs — such as permitting, labor and overhead — have continued to increase steadily. With equipment costs going down and soft costs going up, there has not been much change in the overall cost of a solar and battery backup system.
As a long time solar contractor, I’m always looking for ways to reduce our costs while still installing top quality systems. I’ve come to the conclusion that there are no magic bullets. Nevertheless, there are a a number of smaller actions that we can take that, in the aggregate, keep costs down for our customers.
Design and engineering costs used to be a huge expense. I once had a room full of 60 engineers and project managers working on projects across the U.S. It was challenging to manage, very expensive, and not particularly responsive to the ups and downs in the solar industry. Now, by outsourcing the electrical design and drafting, I’ve been able to reduce my design and engineering costs by more than half. Moreover, I can turn around engineering projects in a day or two — providing faster installation services for our customers.
I’ve been using Greenlancer’s outsourced solar design and engineering services for almost seven years. We send them the design, pictures, equipment and project details, and in a day or two they send back a comprehensive plan set which we then submit to the local permitting office.
Not only do they reduce our costs and improve our customer service, but Greenlancer’s outsourced business model is also a perfect example of a way to both reduce costs and respect the Shelter In Place requirements. Please listen to The Energy Show to learn more about Greenlancer, the services they provide and how they are reducing solar soft costs for solar installations across the US.
Copyright 2020 - The Energy Show, Barry Cinnamon
With the gradual improvements in solar technology over the past 15 years, many early solar customers are considering a solar system upgrade. Some people want to add more panels because their electrical demand has increased. Some people have inverters that are past their warranty. Some people want better system monitoring. And some people are doing a home renovation and want to re-use their existing panels.
Not surprisingly, the most common reason for an upgrade is to add battery backup capabilities to keep their lights on and their fridge cold. Systems based on older string inverter technology (and some microinverters), need an inverter upgrade to be compatible with the latest lithium ion battery technology.
Thinking back on the equipment we installed 20 years ago to today, a lot has changed. Solar panel efficiency has gone from 14% to over 22%. Inverter efficiency has gone from 93% to 99%. Monitoring (while still somewhat complicated) is now standard. And, perhaps most importantly, battery storage systems are automatic, more reliable and have 10-year warranties.
Remember, the 26% tax credit applies to solar and battery upgrades. So if you are thinking about a solar system upgrade, are about to re-roof or do a home renovation, or want to add battery storage, please listen to this week’s Energy Show. We will review the latest solar technology, detail what’s involved in upgrading, and provide useful tips to ask your solar installer so that you get the best solution for your home.
Copyright 2020 - The Energy Show, Barry Cinnamon
The general consensus is that there is a climate emergency –global warming, climate change, whatever you want to call it but it looks like its happening. Candidly, there is still not 100% consensus of the problem, cause and solution but 90% of people including the science community and politicians believe global warming is a big problem.
On this week’s Energy Show we are talking about “Project Drawdown” which is a plan to reverse the increase of CO2 in the atmosphere. Not just slow down the emissions but reverse the trend of these emissions so we can reverse global warming.
We are currently over 400 parts/billion of CO2 in the atmosphere, and it use to be 100 so were looking at reducing that number through lower emissions and other methods such as sequestration. The key to this project drawdown is finding a way to reduce every source of C02 in the atmosphere so that over time, the concentration is reduced.
The Drawdown effort was led by a couple of environmentalists Paul Hawken and Amanda Joy Ravenhill who gathered a diverse team of over 200 scholars, scientists, policymakers, business leaders, and activists worldwide to assess, map, and model the most substantive solutions to achieve this goal. Results of the initial study were published in 2017 in a book called Drawdown: The Most Comprehensive Plan Ever Proposed to Reverse Global Warming.
The plan includes 80 documented solutions to achieve the goal ranked by the amount of CO2 reductions that can be accomplished and the total cost to enable these solutions and resulting savings over a period of 30 years. So please listen to this week’s Energy Show as we review the top 10 solutions ranked in Drawdown.
Copyright 2020, The Energy Show - Barry CInnamon
The global warming crisis is a slow-motion train wreck that requires an all hands on deck response. Individuals, businesses and government all need to be pull in the same direction to minimize the effect of this crisis. Unfortunately, our federal government continues to focus more on supporting the incumbent fossil fuel industry instead of the clean energy technologies encouraged by the rest of the world.
The good news is that leadership in many state and local governments are stepping up with practical, effective and affordable climate change solutions — and the City of San Jose is clearly a leader when it comes to implementing these solutions. A key component of the City’s efforts is the award-winning Climate Smart San Jose program. This community-wide initiative focuses on reducing pollution and improving the quality of life for San Jose residents. Basically, it’s the city’s plan to align with the targets of the Paris Climate Agreement.
Our guest on this week’s Energy Show is Ken Davies, Director of Climate Smart San Jose. For over ten years Ken has been at the forefront of Silicon Valley’s environmental efforts. There is no doubt in my mind that the work he and his team are doing in San Jose will exceed our local goals for the Paris Climate Agreement.
Please listen up to this week’s Energy Show as Ken discusses some of the key components of Climate Smart San Jose, including electrification rebates, the Climate Smart Challenge, zero net carbon buildings, vehicle electrification, San Jose’s Reach Code, and 100% green electricity.
Copyright 2020 - The Energy Show, Barry Cinnamon
What started as a trickle of a few EVs has turned into a flood of models from virtually every single manufacturer. Hats off to Tesla for opening the floodgates, and making GM’s EV1 a crude and distant memory. While the specifications for some of the new cars coming out in 2020 are still getting fined tuned —battery pack capacity, horsepower, range — the 2020 EVs look pretty impressive.
Like all successful new products, EV market adoption goes through phases: innovators, early adopters, early majority, late majority and laggards. We are still at the innovators stage in most of the world. California is leading in the U.S., with China clearly on a path to be the leading EV market. For cost, reliability and environmental reasons, EVs are destined to represent the majority of vehicles on roads within a few decades.
Nevertheless, before EVs dominate they must be comparable to gasoline engines in terms of range and cost. Continuing reductions in the cost of batteries solve both problems. Not only are EVs becoming less expensive because batteries are less expensive, but larger batteries are going into EVs — giving these vehicles comparable ranges to gasoline engines.
For more about 2020 EV model specifications, including EPA MPGe ratings, ranges, and costs, please tune in to this week's Energy Show.
Copyright 2020 - The Energy Show, Barry Cinnamon
Buildings consume 40% of our energy, most of that for heating and cooling. Almost all of this energy is supplied by fossil fuels, resulting in tremendous CO2 emissions. Building electrification solves this problem. Instead of burning fossil fuels in homes and businesses, we can heat, cool, wash and cook using electricity generated from clean, renewable sources.
San Jose is one of the first cities to establish building codes that pursue a zero net energy policy by strongly recommending all electric new homes. But what about existing homes? To find out first hand what was involved in getting to a zero net energy home, my wife and I embarked on a project to completely electrify our 50 year old home in San Jose.
I’ve done quite of bit of energy upgrading on homes and businesses over the past 40 years. Nevertheless, I checked in with a few friends who had done some electrification of their homes (thanks to Howard, Jeff and Dick). The steps we took mostly followed conventional wisdom: address the easy and cheap items first (LED lights, controls), extra insulation, solar with battery backup, EV charger, heat pump HVAC, heat pump water heater and induction cooktop.
There were only two real hassles with this electrification project. The first hassle is familiar to anyone doing a renovation or maintenance project: finding the “best” contractor for each individual task. Because building electrification involves so many different types of contractors, there is no one “general contractor" who can do everything both efficiently and cost effectively. We ended up with five different contractors: insulation, pool, solar, electrical and HVAC. Since I’m capable of screwing in a lightbulb, I took care of the LEDs lights and controls. The biggest hassle was on the electrical permitting side and coordinating with our local utility. Nevertheless, when everything was done and connected, we are enjoying a net negative (for the year) electric bill — including all of our heating, cooling, cooking and most of our driving.
Perhaps the most rewarding event was when our local gas utility PG&E sent an inspector to our house to find out why the gas meter almost stopped completely! To learn more about electrifying your home or business, please listen to this week’s Energy Show. And if you are thinking about making the switch from fossil fuel home appliances to electrical appliances run by solar and battery storage solutions, take a look at our 10 steps to whole house electrification.
Copyright 2019 - The Energy Show, Barry Cinnamon
Will batteries keep your AC cranking and electric vehicle charged up during an extended blackout? Probably not.
We like to believe the myth of whole house battery backup or the notion that our 21st century lifestyle will continue unabated despite fire hell or high water. The reality is different: Typical battery backup systems work best when they are designed to ration battery capacity and minimize the use of major appliances. These systems must also be integrated with rooftop solar so that the battery can be recharged as soon as the sun comes up.
There are two fundamental engineering limits that make it impractical to run a whole house on battery power alone. First, the energy capacity of typical lithium-ion battery systems is insufficient to power an entire house through a nighttime blackout. Second, battery backup inverters are not powerful enough to start and run many large appliances. Adding multiple batteries and inverters can overcome these engineering limits - but at a very high cost.
Nevertheless, a well-designed solar and whole house battery backup system can provide limited power almost indefinitely. To learn more about the reality of backup power in the event of a blackout or Public Safety Power Shutoff, please listen to this week’s Energy Show.
Copyright 2019 - The Energy Show, Barry Cinnamon
People talk about solar panels and batteries a lot (at least the people I talk to). The reasons are that solar panels are conspicuous on rooftops -- and batteries are what keep the lights on during increasingly frequent blackouts. But the real brains of a solar and battery storage system is the inverter.
With increased global production, solar panels and battery cells have become commodities -- differentiated mainly by price and efficiency. For a variety of reasons, inverters are still quite specialized. Initially, inverters simply converted DC current to household AC current. Modern inverters also provide a variety of safety features (rapid shutdown and arc fault protection), monitoring, and grid support services. The next generation of inverters extends beyond solar, providing backup power, EV charging and home energy management capabilities.
Through a combination of great technology, disciplined execution and industry vision, SolarEdge has become the leading inverter company. Based on my experience in the field (and roof), they have the best combination of efficiency, safety, installation ease and overall value. Most importantly, SolarEdge continues to push the technology envelope as they expand into backup power and distributed grid services.
Our guest on this week’s Energy Show is Peter Mathews, General Manager of North America for SolarEdge. He has done a terrific job growing SolarEdge to over a 60% market share in the U.S. Please listen to this week’s Energy Show as Peter shares insights around SolarEdge’s business, how SolarEdge is addressing the power crisis in California, their new commercial products, and the company’s ongoing product vision for a distributed grid.
Copyright 2019, The Energy Show, Barry Cinnamon
The Green New Deal is getting a lot more attention as we get into the 2020 Presidential election. The Green New Deal is a set of proposed economic stimulus programs in the United States with a goal of addressing climate change and economic inequality. The green part refers to renewable energy, energy efficiency, agriculture and related strategies to reduce greenhouse gas emissions. The new deal part refers to social and economic reforms and public works projects, similar to what was undertaken by President Franklin Delano Roosevelt in response to the Great Depression (Civilian Conservation Corp, Civil Works Administration, Social Security Administration, etc.).
Author Thomas Freedman coined the Green New Deal term back in 2007. Taking up where he left off, Representative Alexandria Ocasio-Cortez and Senator Ed Markey released a 14-page resolution for their version of the Green New Deal in February of 2019. Not surprisingly, there are strong political party line differences about the GND. There are even stronger generational differences about the GND. Without mincing words, Millenials see an existential threat to climate change — whereas most Boomers will be dead by then.
OK Boomer, so what should we do? For a youthful perspective, my guest on this week’s show is Kylie Tseng. Kylie is a graduate of NYU and is an activist for the Bay Area Sunrise Movement. Please listen to this week’s Energy Show as Kylie shares a Millennial’s perspective on the Green New Deal, and how everyone can encourage changes that will benefit both our climate and society.
Copyright 2019 - The Energy Show, Barry Cinnamon
Whether it’s a residential, commercial or utility solar project, contractors strive to install systems that generate the most energy at the lowest lifecycle cost. Solar panels operate at their peak output when the sun is perpendicular to the panel. So for maximum energy collection, tilting the solar panels at the local latitude (37 degrees here in San Jose) facing south is generally best.
Because of existing building structures, compromises are necessary when installing solar panels. Residential systems are generally installed flush to the roof because tilting the panels is unsightly, and the efficiency benefit of tilting the panels is not worth the additional mounting system costs. Commercial systems on flat roofs are generally installed on racking at a relatively low tilt so that more panels can be installed — but almost never horizontal since flat surfaces collect dirt and debris.
But large-scale solar installations do not need to compromise when it comes to tilt angle and orientation. Systems can be more easily oriented due south and tilted at the angle of the local latitude. Taking things one step further, since the sun moves throughout the day, an additional 10-25% efficiency can be achieved if the panels track the sun.
Single axis solar tracker systems generally towards the east in the morning and west in the afternoon. More complicated dual axis solar tracker systems tilt east-west daily and adjust north-south seasonally. Because of the increase in efficiency, trackers have become a standard feature on large solar farms. Essentially, the added complexity of moving parts is worth the big increase in energy output.
NEXTracker was recently ranked the number one tracker company globally. They provide tracking systems and engineering for large utility scale projects all over the world. My guest on this week’s Energy Show is Alex Au, CTO and co-founder of NEXTracker. Alex was one of the pioneers in the solar industry as a key member of the team that developed the first integrated racking AC solar module, and then developed NEXTracker’s core tracking technology.
Please listen up to this week’s Energy Show as Alex shares his insights on NEXTracker, their technology and their recent work in incorporating flow battery technology to help eliminate the imbalance between peak demand and renewable energy production for utility scale applications.
Copyright 2019 - The Energy Show, Barry Cinnamon
The annual Solar Power International show held in October of this year celebrated its 16th year. The first show was a tiny venue that started in back in 2004 and was held in a tiny venue in San Francisco. Since that day back in 2004, the show has grown significantly as has the solar industry itself.
This year, the Solar Power International show was held in Salt Lake City with a big focus on energy storage --which has been building more and more every year, with a particular focus on new battery storage products.
In addition to the plethora of bigger and better solar panels, there was many new racking and mounting products that connect these systems to a roof or big utility scale field, plus all kinds of hardware such as inverters, controls and accessories. Most notably, software and hardware companies are now working to make installing and managing these systems easier, so software is becoming an important part of the whole industry.
But with the current demand for energy storage, clearly the focus on new battery storage products was most interesting. So to learn about the industry's latest energy storage offerings, please listen to this week’s Energy Show as we review the most notable battery storage systems spotted on the floor of this year’s Solar Power International show.
Copyright 2019 - The Energy Show, Barry Cinnamon On this week's The Energy Show, we’re talking about energy — duh. And power. Not just because we’re short on both energy and power. But because solar and battery customers need to understand these properties so they can properly size and operate their systems. This show is a bit on the geeky side, so buckle up.
Power is the measure of the amount of work that can get done over a period of time. We measure power in units of watts in the metric system, and in units of horsepower in the English system. Even though the English use the metric system and horses are basically just recreational vehicles for rich people. Commonly we refer to the power of a car in horsepower, or the power requirements of an appliance in watts.
Energy is the measurement of work, or force over distance, or an amount of heat. Not a watt, but instead a watt hour or kilowatt hour (kwh). Your utility bills you for electrical energy in terms of kilowatt hours, and for natural gas thermal energy in terms of Therms (geeky rhyme). A Therm is 100,000 BTUs, which stand for British Thermal Units — which is a measure of energy in the English system — which only the Americans still use (my high school English teacher would have referred to this sentence as a which hunt).
In the solar world, we measure the power output of a solar panel in watts (360 watts per solar panel under ideal conditions), or the total size of a 20 panel system as 7,200 watts. Home battery storage systems are measured in terms of kwh (most commonly a 10 kwh or 13.5 kwh battery), and commercial systems are measured in terms of mwh (megawatt hours).
Feel free to download this week’s Energy Show for more information about the energy and power terms we use in the solar and storage industry to measure size and performance of solar and battery storage systems.
Copyright 2019 - The Energy Show, Barry Cinnamon
Hold onto your seats because this is going to be the most exciting Energy Show I’ve ever done. This week we are talking about … DRUMROLL … your PG&E electric bill.
Modern utility bills are a masterwork of corporate obfuscation (Wikipedia: the obscuring of the intended meaning of communication by making the message difficult to understand, usually with confusing and ambiguous language). Indeed, there should be a picture of a PG&E electric bill on Wikipedia for illustration purposes.
Rather than trying to figure out their electric bill, most people’s eyes glaze over — they just write a check or click on Bill Pay to get the offending document out of their inbox. Almost every one of us could be paying an extra $10 or more a month and we would never know. Fortunately, the PUC (that’s a Three Letter Acronym for Public Utility Commission) tries to ride herd on overzealous utility rate makers.
Most mortals can understand charges per kWh — and solar customers understand NEM. But it helps to have a Master’s Degree in TLAs to understand the meaning of charges such as NBC, IOU, CTC, PCIA, CCA, DWR and PPP. As well as the myriad of whacky charges, confusing terminology, cross billing, negative credits, random taxes and alphanumeric rate soup.
Here is a summary of my handy Utility Bill Dictionary to aid in explaining some of these TLAs:
NBC – not the peacock network, but charges that solar customers pay because everybody does not have solar IOU – big, profitable utilities that should be renamed U owe Them. CTC – charges to all customers because utilities built power plants that are no longer needed PCIA – charges to certain customers because utilities signed contracts for power at above market rates CCA – efficient and low-overhead municipal-type utilities that sell electricity for much less than IOUs DWR – charges to customers to cover PG&E’s first bankruptcy in 2001. These charges should end in 2020 at about the time PG&E’s new bankruptcy charges will hit our bills. PPP – charges to fund public benefits, including solar incentives, low income assistance, and utility ads telling us to get a flashlight when they cut off our power
So be sure to listen to this week’s Energy Show as we delve into a typical solar customer’s PG&E electric bill and attempt to explain it on a page-by-page basis.
Copyright 2019 - The Energy Show, Barry Cinnamon
Almost everyone in California is aware of the Public Safety Power Shutoff Program — when the utility turns off power to customers in large areas in an effort to reduce the risk of fires caused by utility lines. In October of 2019 the first series of these power shutoffs began, inconveniencing millions of homes and businesses. These shutoffs were effective in preventing fires in areas that the power was off, but ironically a number of fires were still caused in areas that the power remained on.
California utility companies begin Public Safety Power Shutoffs (PSPS) when dry conditions and typically high winds with gusts up to 60-70 mph are forecast. These high winds often blow down utility lines or cause nearby trees to come into contact with wires — causing fires. Because long distance transmission lines are often the cause of these fires, power shutoffs can affect customers hundreds of miles away from where high winds occur.
During one of these recent power shutoff that affected my neighborhood in San Jose, it was a beautiful sunny day with calm winds. But five miles away at the top of Mount Umunhum the winds were blowing at 60 mph. There were no local fires, but there was a tremendous amount of anger at PG&E. Utility field workers were out in force trying to address issues that were caused by decades of mismanagement. Please don’t get angry at PG&E workers with a tool belt; be mad instead at PG&E employees wearing ties.
Utility blackouts are the new normal. PG&E’s CEO expects that this situation will persist for ten years and could take hundreds of billions of dollars to prevent — mostly by upgrading transmission and distribution systems. But there is a better way: installing more local solar and storage so that we are not as dependent on a centralized grid, and we can more easily ride through power interruptions.
But an ordinary rooftop solar power system does not operate in a blackout. For safety reasons the inverter automatically shuts down if utility power goes out. A special inverter and battery is necessary so that your solar system will operate independently of the grid — often referred to as a micro grid or island mode operation. Homes and businesses that installed a solar power system with battery backup generally had no problems during these blackouts. Properly designed battery systems automatically transfer to backup mode and power the critical loads in the house from the battery at night and solar during the day.
To learn more about Public Safety Power Shutoff programs — and the best way to design a solar + battery storage system to ride through the next blackout — please tune in to this week’s Energy Show.
Copyright 2019 - The Energy show, Barry Cinnamon
In addition to installing solar equipment, solar contractors also install a variety of electrical equipment: wiring, junction boxes, conduit, circuit breakers, etc. Since many of these electrical items are not carried at your local “big box” hardware store, experienced solar contractors source them from electrical distributors.
Since solar is one of the fastest growing industries in the U.S., some of the more farsighted electrical distributors have started to supply a limited amount of solar equipment. And some are distributing solar and storage equipment enabling them to become a “one stop shop” for everything needed on a typical residential or commercial rooftop system.
Having a single source distributing solar and storage equipment significantly reduces the supply chain costs for a typical solar contractor. Instead of ordering from several different manufacturers and have the materials trickle in over a few weeks or months, a contractor can back up his or her truck to a single distributor the morning of a project and load up everything that is needed. For larger projects, distributors can deliver directly to a job site. Voila: no extra warehousing costs, simplified purchasing and payment, and easy access to extra parts or supplies that may be needed during the course of an installation.
CED Greentech is one of the first electrical distributors in the San Francisco Bay Area that provides these specialty solar items, in addition to a complete range of electrical equipment. My guest on this week’s show is Paras Shah, Profit Center Manager at CED Greentech in San Jose. Please tune in to this week’s Energy Show as Paras shares his insight into the ways that local solar/electrical distributor can significantly reduce costs for all sizes and types of solar installations distributing solar and storage equipment.
Copyright 2019, The Energy Show - Barry Cinnamon
Where do solar panels, batteries and inverters come from? No, they don’t come from solar elves or a retail store. They come from distributors who order in huge quantities directly from manufacturers. These distributors then pick, pack and ship efficiently in smaller quantities to contractors who do the installations. Essentially the same manufacture-distributor-contractor supply chain as in the HVAC, electrical and plumbing industries.
Distributors provide a tremendous service to solar and storage industry. Even though they mark up the equipment slightly to make a profit, they significantly reduce costs for contractors by eliminating overhead and all the hassles with dealing with dozens of vendors and thousands of components. These lower costs flow to the businesses and homeowners that are purchasing systems.
I have learned over the past 20 years in the solar industry that it is more efficient and actually cheaper to order equipment through a good distributor rather than purchase in huge quantities direct from a manufacturer. One of the best distributors in my experience is BayWa r.e. or Baywa for short. They are based in Santa Fe New Mexico, and their parent company is an $18b multi-national equipment/energy company based in Germany.
Other companies distribute solar equipment, but one of the reasons I like working with BayWa is that their team is responsive, efficient and likes what they are doing. These benefits are a result of their corporate culture…yes, I know, a fuzzy term - but it really makes a difference in the competitive solar industry.
Please listen to this week’s Energy Show as we speak with Boaz Soifer, CEO of BayWa. He’ll explain how he has shaped their culture to drive success at BayWa, and also discuss his insights into the common elements of successful solar companies.
Copyright 2019, The Energy Show - Barry Cinnamon As I record this radio show the temperature in San Jose is already over 100 degrees. So this week’s show is not just about the future hazards of global warming, but the fact that extreme climate change has already arrived.
I know that a hot day in San Jose is just a reflection of the weather - not proof of climate change. Weather is what you see outside on any particular day. Climate is the average of the weather over a period of time. When we talk about global warming, we are talking about changes in long term averages of daily weather. So a cold streak in March does not negate the fact that global warming is happening, no more than a hot day in San Jose is definitive proof that the planet is heating up.
Some people have reasons to believe that the earth is really not warming, that this warming is not caused by CO2, or that this CO2 is not caused by humans. Nevertheless, both short term and long term worldwide average temperatures have increased, and 97% of climate scientists believe that this warming is caused by CO2 in the atmosphere.
These temperature changes are not just academic; many locations around the U.S. have already exceeded a 2 degree C temperature rise. The Washington Post analyzed more than a century of National Oceanic and Atmospheric Administration temperature data in the lower 48 states. They found that more than 1 in 10 Americans — 34 million people — are living in rapidly heating regions. 71 counties have already hit the 2 degree C mark. In LA County the average temperature rise was 2.3 C, Silicon Valley was 2 C, NYC was 2.2 C, and my home town in New Jersey was 2 C.
Although a few good things will come from higher temperatures (more farming in Alaska, etc.), the overall impact will drastically affect our society. Sea levels are rising, cities will have to move inland, warmer and more acidic sea water will reduce fishing, hot areas will become uninhabitable, weather will become more severe ... the list goes on.
Once we acknowledge this problem, there are only two sensible actions: ADAPT to these global warming changes and MITIGATE the causes of worldwide warming. Please tune in to this week’s Energy Show for details of the extreme climate change we are already experiencing, as well as the actions that we can take.
Copyright 2019, The Energy Show, Barry Cinnamon
From time immemorial, the fuels that have powered human development have been governed by economics. The cheaper and more available fuels were, the more they were used. And as humanity evolves, we use more and more fuel to meet our energy requirements. We have transitioned from wood to coal to oil to nuclear to gasoline to natural gas -- and now to wind and solar, supplemented by batteries.
More recently in human history, subsidies have been used to encourage the development of new these fuel sources. Nuclear power was (and still is) subsidized by the U.S. government. Hydraulic fracturing (fracking), carbon capture and sequestration (so that we can continue to burn coal with lower emissions), hydrogen production and distribution, and synthetic fuels from biological sources have all been heavily subsidized. And there would not be a viable solar and battery storage industry without significant R&D from government sources.
When I reflect on these past subsidies -- without exception — every single one mentioned above is still heavily subsidized by both federal and state governments. These subsidies do not only include direct R&D dollars, but also include incentives such as the solar investment tax credit, wind production tax credit, and oil/gas drilling depletion allowance.
But once a new fuel gains production scale and widespread adoption, favorable economics outweigh even large subsidies. We are in such a transition now as clean and cheap wind, solar and battery storage are replacing coal and natural gas fueled electricity To learn more about the economics of fossil fuels and the market forces that are transitioning our world to new energy sources, please tune in to this week’s Energy Show.
copyright 2019, The Energy Show - Barry Cinnamon
Entrepreneurs are the job engine in the United States. Many of the companies founded by today’s entrepreneurs have products or services addressing environmental needs. New technologies almost always gain traction through the work of stubborn entrepreneurs, including solar, wind, electric vehicles and energy storage.
Public policies that encourage these new technologies are critical to their success in the market. Without policies such as the solar investment tax credit, net metering, renewable portfolio standards and the wind production tax credit, the solar and wind industries would be a fraction of their current size. And when these new technologies gain traction with customer economics better than previous energy technologies, adoption of these new technologies accelerates. Just look at how wind, solar and batteries are surpassing fossil fuel energy sources.
These public policies generally do not sprout spontaneously from the minds of politicians. Instead, they are suggested, developed and advocated by public policy organizations. And when it comes to environmental policies for entrepreneurial companies, Environmental Entrepreneurs, or E2, is one of the leading voices. E2’s members have founded or funded more than 2,500 companies, created over 600,000 jobs, and managed over $100 billion in venture and private equity capital.
Please listen to this week’s Energy Show as we engage with Bob Keefe, E2’s Executive Director, to learn about the genesis of E2, their successes working at the intersection of jobs, economy and the environment; and their plans for the future.
Copyright 2019 - The Energy Show, Barry Cinnamon
Unless you have rooftop solar, you’re probably incredibly unhappy about rising electric bills. This misery is even worse for commercial customers since -- in addition to energy charges (billed on a kilowatt-hour basis) -- they also pay for peak demand charges (billed on the maximum kilowatt demand each month).
For example, let’s say your business uses industrial equipment and a variety of office equipment. Your company uses 50,000 kwh of energy per month; at a rate of $0.15/kwh, your electric bill is $7,500 per month. In addition, your peak demand may be 300 kilowatts in a typical month; at a peak demand rate of $20 per kilowatt, you also pay $6,000 in demand charges every month.
As a conscientious and generous employer, you decide to install 20 EV chargers in your parking lot so your employees can charge up their cars while at work. Each employee may charge up their car with about 10 kwh per day — or $1.50 worth of electricity each, or $600 for all employees each month. A nice employee perk, and not too expensive. However, since 20 employees plug in their cars at about the same time every morning, and each charger draws about 5kw, your extra electricity peak demand will be 100 kw, or an extra $2,000 per month. Ouch!
So for many commercial customers, peak demand charges are a bigger cost than energy charges. Ordinary rooftop solar systems may not have a big impact on demand charges. However, batteries or special control systems in conjunction with rooftop solar can significantly reduce these demand charges.
To learn how your company can reduce peak demand charges, listen to this week’s Energy Show as we speak with John Powers with Extensible Energy. Extensible Energy has software that helps commercial solar buildings to use electricity intelligently and reduce peak demand charges.
Copyright 2019 - The Energy Show, Barry Cinnamon 30% of the costs of a solar or battery storage system are paid for with the Solar Investment Tax credit. The Solar Investment Tax Credit (ITC) is the biggest renewable energy incentive in the country, and helps make solar affordable for just about every business or homeowner in the U.S. with a sunny rooftop. The solar ITC has been around for almost ten years – but 2019 is the last year that it is in full effect.
The solar ITC steps down to 26% in 2020, 22% in 2021 and zero for residential systems in 2022. As in year’s past, there will be a big rush to get systems installed before the end of the year – and even a bigger rush at the end of this year since systems will effectively be 4% more expensive on January 1, 2020.
Moreover, California’s public utilities have put their foot on the solar + battery storage accelerator with upcoming Public Safety Power Shutoff announcements. The 30% tax credit fully applies to battery storage systems used for backup power as long as the battery is charged by solar at least 75% of the time. Businesses and homeowners are realizing that a clean, renewable, and quiet solar + battery backup system is more reliable and cost effective than traditional built-in gas and diesel generating systems.
The solar ITC is a straightforward credit (not deduction) on your business or personal tax return, and is not affected by the alternative minimum tax. Other incentives, such as business equipment depreciation, can also be combined with the solar ITC – in many cases cutting the total cost by 50% or more. To learn more about how your home or business can leverage the Solar Investment Tax Credit for both energy and backup power, tune in to this week’s Energy Show.
Copyright 2019 - The Energy Show, Barry Cinnamon
PG&E, our local utility in Silicon Valley, caused a number of wildfires — including the recent Camp fire that destroyed the town of Paradise, killed 86 people and destroyed over 13,000 homes.The primary reason for this and other similar fires is that PG&E skimped on power line maintenance while enjoying record profits. Now they are bankrupt (again), and are scrambling to deal with the upcoming wild fire season.
Public Safety Power Shutoffs may happen far from fire danger areas. And these shutoffs could last for 48 hours or longer. So anyone relying on electricity for the necessities of life must prepare for an extended outage. Unfortunately, their recommendations ignore the cleanest, cheapest and safest backup power solution – solar and battery storage. Instead, PG&E recommends gas generators and stockpiling several days of fuel. Dumb idea to store all this extra fuel in fire-prone areas. Not to mention the challenges of connecting, starting and operating a gas generator safely.
Here is the letter that PG&E sent to my home:
Given the growing threat of extreme weather, we want all of our customers to be prepared for power outages. If elevated weather conditions, including potential fire risk, threaten a portion of the electric system serving your community, it will be necessary for us to turn off electricity in the interest of public safety. This is called a Public Safety Power Shutoff. We know how much our customers rely on electric service and want to work together to help you prepare for power outages.
A Public Safety Power Shutoff could impact any of our more than 5 million electric customers, including your home or business. Because elevated weather conditions can last several hours or days, we suggest preparing for outages that could last longer than 48 hours. Electric backup generators can keep the lights on, help appliances stay running, preserve perishable foods, and power essential equipment and electronics during a power outage.
Generators can also pose safety hazards, so it is important to understand how to safely operate your generator before an emergency occurs. This means doing regular safety checks and being sure you have enough fuel to last a few days.
As you can see from their letter above, PG&E recommends a gas generator for backup power (remember, the “G” in their name stands for “GAS”). No mention at all about using a cleaner, cheaper, quieter and safer battery backup system. Simple reason: they don’t want you to install solar or batteries since that reduces their revenue and profits. And if you buy an automatic natural gas generator they’ll make even more money selling you natural gas.
So Listen up to this week’s Energy Show as we discuss your options for dealing with these Public Safety Power Shutoffs — as well as considerations for selecting the best battery backup system to protect you and your family during these outages.
Copyright 2019 - The Energy Show, Barry Cinnamon
The United States is a representative democracy. Citizens vote for politicians who, theoretically, advocate for their needs: things like better healthcare, lower taxes, cleaner air, and new technologies such as solar. But one cannot check off the “solar” box on a voting ballot. Instead, we have to vote for elected officials whom we trust will work on solar policy on our behalf.
Vote Solar was founded in 2002 by Adam Browning and David Hochschild to bring solar into the mainstream by helping to shape solar policy. Among the policy wins that Vote Solar has achieved includes incentives (tax credits and rebates), modernizing our electric grid, expanding access to solar and storage technologies across all economic sectors, and advocating for solar + storage friendly electric rates.
Polls across the U.S. show that solar and renewable energy rate 90% and higher in the minds of voters . The challenge is turning that latent voting power into actual political power. Please Listen Up to this week’s Energy Show as Adam Browning, Vote Solar’s Executive Director, explains how their advocacy efforts have achieved so many solar wins to date — along with the hard work we all have ahead of us as we make solar a mainstream energy source throughout the U.S.
Copyright 2019 - The Energy Show, Barry Cinnamon
California was the first state to set aggressive goals to reduce greenhouse gas emissions. Senate bill 32, AKA Cap and Trade, will reduce greenhouse gas emissions 40% below 1990 levels by 2030. We are well on our way to meeting these goals, and happily a dozen other states are pursuing similar paths. In 2018 Governor Brown issued an executive order to go even further: achieving carbon neutrality by 2045 and negative greenhouse gas emissions afterwards. The Governor and Legislature have allocated more than $6 billion dollars — collected from the Cap and Trade Program -- to fund the transition away from polluting fossil fuels.
Greenhouse gas emissions come from a variety of sources: 40.6% transportation, 25.8% industrial processes, 12.6% commercial (mostly buildings), 11.9% residential, and 9.2% from agricultural and forestry. As a result of previous policies, most significantly renewable portfolios standards, solar and wind — we have hit most of our goals in the electricity generating sector. Excellent progress is also being made in transportation, most notably with electric cars. California is also making progress in the commercial vehicle segment by incentivizing electric buses and trucks.
Nevertheless, almost 25% of our GHG emissions still come from buildings: natural gas for space heating, hot water heating, clothes washing and drying, cooking, and pool heating. New construction standards, both for commercial buildings and residences, will almost completely eliminate natural gas in new buildings. However, natural gas appliances are embedded in our existing homes and commercial buildings, and many of these buildings will be with us for another hundred years (if they are not under water by then).
It’s a big job to change out the appliances in our current building infrastructure. To learn more about these challenges and realistic solutions, please Listen Up to This Week’s Energy Show as we speak with Jeff Byron. Jeff served as the Commissioner at the California Energy Commission for 5 years and more recently a member of the Cleantech Open and Band of Angels. Jeff actually walks the talk, and currently lives in a net zero carbon emission home.
Copyright 2019 - The Energy Show, Barry Cinnamon
The 2020 presidential election has been in full swing for months, even though it’s still only 2019. Are things going faster as I get older, or are we in a constant stage of electioneering? Hmm, don’t answer that.
With one notable exception, all of the presidential candidates have positions on climate change – AKA Global Warming. President Trump’s position is basically to deny climate change, mock renewable energy, pull out of the Paris climate accords (signed by every other country in the world except the U.S. … perhaps they know something that we do not), brag about the U.S.’s oil production, and futility try to resuscitate the coal industry. Sometimes I feel as if I’m watching the Twilight Zone on my parent’s Magnavox black and white TV.
The Green New Deal has been proposed by a number of Democratic members of Congress. This plan is aspirational – the Green part is what we really need to address climate change, but the New Deal part is painfully lacking in specifics and realistic funding mechanisms. Jay Inslee’s “Evergreen Economy for America” is a well thought out plan that has a chance to meet our global warming targets. Joe Biden’s “Plan for a Clean Energy Revolution and Environmental Justice” is a little more political than practical, and may not provide enough funding fast enough.
Listen Up to The Energy Show as we cover the politics of energy and the environment, ranging from the Trump administration’s environmental agenda (some would characterize this as oxymoronic), the Green New Deal, Jay Inslee’s Climate Plan, and what it will take for our next president to get us on the path of limiting global warming to 1.5 C.
Copyright 2019 - The Energy Show, Barry Cinnamon
California utility companies recently announced their Public Safety Power Shutoff programs across the state. Bloomberg News said “California May Go Dark This Summer and Most People Aren’t Ready” California’s Governor Gavin Newsom was quoted as saying “I’m worried. We are all worried about it for the elderly. We are worried about it because we can see people’s power turned off for not just for a day or two but potentially for a week."
These public safety power shutoff events are already happening around the state. Utilities turn off the power if there is the possibility of danger imposed by things such as high winds or wildfire, dry vegetation, low humidity, observations of dangerous conditions by field personnel and red flag warnings from the National Weather Service. The Paradise fire in 2018 was started when PG&E decided NOT to shut power off in a fire prone area. Now all utilities are erring on the side of caution, shutting off power when there may only be a remote chance of a fire - certainly better than burning down a town.
Unfortunately, looking back over the past fifty years, the reliability of our power grid is not getting better. The weather is getting hotter, there is more housing in forested areas, we need electricity more than ever, and some utilities have been skimping on maintenance to maximize their profits. Electricity has become the most important fuel for our society. So when the lights go out, our 21st century lifestyle reverts to the 19th century.
To learn more about these Public Safety Power Shutoff programs, what the utility companies suggest (buy a gas generator!), plus better solutions (hint: solar with battery backup), Listen Up to this week’s Energy Show.
Copyright 2019 - The Energy Show, Barry Cinnamon
We’re talking about VAMPIRES on this week’s show — energy vampires.
I know, it’s not Halloween yet, but these little energy suckers are insidious. I guarantee that you have dozens of little devices plugged into your home that are using a small amount of standby power, sucking energy all day and night. It really adds up, and causes nightmares for energy geeks like me.
Research shows that these “plug loads” are about 1/3 of a home’s total energy consumption. We’re not talking about big appliances or lighting – but sneaky little things plugged in or wired in all around your home.
Think about what you have. Obvious vampire loads are devices like computers, routers, Wi-Fi repeaters, phone chargers, TVs, cable boxes, cable modems, and entertainment consoles. Less obvious vampires are things like security systems, motion detectors, appliances (anything with a clock and an illuminated LED). The really sneaky devices that you might not see include doorbell and thermostat transformers, WiFi thermostats (Nest), hot water and furnace ignitors, garage door openers, irrigation systems, outdoor lighting control systems, cordless vacuum cleaners, and pool timers.
To get a handle on this infestation, I went to every room with a Kill-A-Watt meter to measure the power consumption of each device. It added up to over 250 watts of 24×7 power — over $500 per year.
To learn more about these energy vampires — how to identify them, calculate their costs, and stamp them out — tune in to this week’s Energy Show.
Copyright 2019 - The Energy Show, Barry Cinnamon
To reduce greenhouse gas emissions we need to electrify all of our buildings. New electric appliances — such as heat pumps and induction stoves — are often less expensive to operate than conventional natural gas appliances. For example, at $2/therm for natural gas and $0.30/kwh for electricity, it costs about $1 to heat up a 65 gallon hot water tank for both gas and electricity. Add in rooftop solar and you can heat that tank for less than $0.25!
So from both an economic and environmental standpoint it absolutely makes sense to replace old gas appliances with new electric appliances. Except for one big problem: many older homes have a 100 or 125 amp electrical service — which is insufficient to run most domestic hot water heat pumps, heat pump HVAC systems (heating and cooling), induction electric stoves and level 2 electric vehicle chargers. Not to mention anything other than a relatively small (< 5 kw) rooftop solar power system.
The solution is to contact your electric utility to get an electric panel upgrade to a 200 amp system. Unfortunately, an electric panel upgrade is complicated. Every house is different — some homes have overhead wiring which is relatively easy to replace, and some homes are powered by underground wiring which can take many months and dollars to upgrade.
Navigating the utility and city regulations for electric service upgrades can be a nightmare. To help us understand these issues — as well as the shortcuts and rebates that are available from some utilities — our guest on this week’s show is Sue Kateley. Sue is the former Executive Director of CALSEIA (now known as CALSSA), and has also worked as the Chief of Staff for California State Senator Bradford.
Please listen up to this week’s Energy Show as Sue walks us through her personal experience with PG&E and her electrician as she cost-effectively completed an electric panel upgrade — and took advantage of some of the little-known incentives and procedures that can make this process much faster and cheaper.
Copyright 2019 - The Energy Show, Barry Cinnamon
Every time I fly into a city I’m amazed at the number of naked, white, empty flat commercial rooftops that should be producing megawatts of power. Even in solar friendly cities such as San Jose there are only a few blue rooftops that one can see from the air. On this week’s Energy Show we’ll be talking about the tremendous opportunity for installing solar on flat roof commercial buildings.
There are three reasons why commercial solar hasn’t grown as quickly as residential and utility solar. The first is customer economics: most commercial buildings are occupied by tenants who pay the electric bills, so the building owner does not have a compelling financial motivation to invest in solar to reduce the tenant’s operating costs. The second reason is that many building owners do not have the up-front capital for installing solar, nor do they have the long-term credit viability for a PPA or lease. The third reason is that, even with the ITC and low solar panel prices, the payback is still three to five years -- too long for businesses making shorter term investments.
Fortunately, technology for installing solar on flat roof commercial buildings has continued to improve, reducing the mounting system and labor costs substantially. These new mounting systems are able to maintain the roof’s structural integrity, while at the same time addressing seismic and water intrusion issues.
My special guest on this week’s Energy Show is Costa Nicalaou, CEO of PanelClaw. They have completed nearly 10,000 flat roof projects in 30 countries and over 2,000 permit offices. Please listen up as Costa explains PanelClaw’s newest products, and how they provide supporting engineering and permitting services to their network of commercial rooftop installers.
Copyright 2019 - The Energy Show, Barry Cinnamon
Cities and states all over the country are making a big push to eliminate greenhouse gas emissions in both new and existing buildings. Not only are these changes a necessity to slow down global warming trends, but in many cases building energy costs are also dramatically reduced.
Whole House Electrification (WHE), my latest favorite TLA (three letter acroynum) is accomplished by replacing all gas appliances (including your car) with cleaner and more efficient electric appliances such as heat pumps, EV chargers and electric induction stoves. LED lighting, better HVAC controls and upgraded insulation also help reduce building energy consumption.
But starting a WHE project can be daunting -- even for an energy geek like me. Conventional wisdom recommends a home energy audit. When I did my energy audit using the DOE’s Home Energy Advisor program it recommended adding insulation to my stucco walls (almost impossible), sealing my ducts (they were really old), upgrading my old furnace and replacing my noisy air conditioner. None of these recommendations were really right for me.
The reason is that traditional energy audits do not take into account the dizzying array of electric appliances, toys and embedded devices that power our 21st century lifestyle. Most of these energy audits are flat out wrong -- ignoring rooftop solar, battery storage, heat pumps and time-of-use electric rates. Combined, these new technologies provide significant savings for an electric home.
Luckily, I found a kindred soul, Steve Schmidt, a pioneer in the new energy analysis industry. Steve founded Home Energy Analytics, which uses smart utility meter data to figure out what is really going on with energy in your house. Please Listen Up to this week’s Energy Show for Steve’s approach to prioritizing and then reducing energy costs, as well as his insights into Whole House Electrification.
Copyright 2019 - The Energy Show, Barry Cinnamon
After your heating and cooling system, the next biggest energy hog in most homes is your swimming pool. I won’t feel bad if you skip this podcast if you don’t have a swimming pool — unless you’re an energy geek like me. My recent experiences addressing the energy problems in my old house really focused my attention on my swimming pool; in comparison, fixing my HVAC system was relatively easy (that’s the subject of another podcast).
Here is a summary of my annual pool expenses: $1,300 for pool pump electricity ($0.45/kwh), $1,800 for pool maintenance, $500 for evaporative water loss (1.5 cents/gallon), $100 every time I want to heat up the pool in the spring/fall for the weekend ($1.75/therm), and $10 every time I want to heat up the spa. I’m too busy on weekends to do the pool maintenance myself, and the pool’s oval shape is not conducive to a pool cover. So I focused on reducing my pool’s electricity and gas consumption.
It was surprisingly easy to cut my $1,300 electricity cost down to about $130 per year. First I installed a variable speed pump (about $1600) — if you have a pool, do this now. Second, since this pump is so quiet I run the pump at night during off-peak rates — currently $0.13/kwh. Third, with solar power on my roof my costs are down to about $65 per year ($0.07/kwh for solar electricity amortized over 25 years).
Keeping the pool at a comfortable temperature is usually more problematic…except for our family since my wife and I don’t swim, and the kids generally don’t care how cold the water is. But if you want to keep your pool comfortably warm in the spring and fall, the best option is a solar pool heating system that uses black plastic collectors mounted on your roof through which pool water is pumped. Note that if you have this type of system you will need to run your pool pumps during the middle of the day — which may be during peak electric rate times. Another option is a pool heat pump. Air to water heat pumps are good in warm and humid climates (not always best in hot and dry climates). If you are more concerned about heating a spa, a water to water heat pump (cooling the pool and heating the spa) might make sense.
For more about reducing your pool’s total operating costs so it’s no longer an energy hog, Listen up to this week’s Energy Show.
Copyright 2019 - The Energy Show, Barry Cinnamon
Upcoming electric rate changes mean that almost every home and business will eventually benefit from a battery connected to their solar system. These combined systems provide tangible economic benefits: time shifting energy use, energy arbitrage, preserving the benefits of net metering and demand charge reduction.
In a nutshell, battery storage systems help preserve the benefits of net metering. But because of the grid’s unreliability — coupled with upcoming Public Service Power Shutoffs in California — the vast majority of our residential customers are installing battery storage systems for backup power.
As our company got back into the energy storage business with lithium ion batteries, we did extensive research into battery systems and their compatible inverters, into manufacturers, into software and operating modes, and into the interconnection and incentive process. After almost two years of selling and installing battery storage systems we’ve gained a lot of wisdom — and made some mistakes along the way. To help our fellow contractors and our future customers, here are ten of our most systemic and painful battery storage installation mistakes:
- Misunderstanding customer desires
- Incomplete product offerings
- Underestimating support and maintenance costs
- Adding batteries to existing systems
- If the CTs don’t fit, you’re in deep sh-t
- Complicated backup panel wiring
- Buggy software and firmware
- Interconnection problems
- Incentive delays
- Battery warranty claims
For more insights into avoiding battery storage installation mistakes, please Listen Up to this week’s Energy Show.
Copyright 2019 - The Energy Show, Barry Cinnamon
When you fly into just about any city you will see hundreds of white commercial flat rooftops. These rooftops are just begging for solar panels to generate electricity for the building -- and reflect the heat to reduce the air conditioning load. With the 30% investment tax credit and new depreciation rules, the economics are pretty good. Paybacks are often less than five years with immediate positive cash flow for financed systems.
But marketing solar to commercial customers is challenging. Often the building is leased, with utility payments made by the tenant -- not the building owner. Although the installation of commercial rooftop solar is relatively straightforward, the marketing, sales and financing processes can be complex.
When I think of solar marketing I instantly think of Tor Valenza, AKA Solar Fred. He is the guy who has been wearing the hat for over ten years in the solar industry. Tor has build a terrific brand for himself, as well as a number of well known solar clients. Please Listen Up to this week’s Energy Show as Tor walks us through his five step program for commercial solar marketing.
Copyright 2019 - The Energy Show, Barry Cinnamon
To slow the global warming trend, a number of states have committed to the aspirational goal of 100% carbon-free energy. As a species that literally evolved from burning wood and hydrocarbons, how can we possibly run our modern lives and economy without fossil fuels?
We can indeed achieve this transition quickly and economically. First, by converting all power generation to renewable, non-carbon sources. And second, by converting all fossil-fuel burning vehicles and appliances to electricity. Steady progress towards these conversions is being made. For example, 32% of California’s retail power came from renewable energy in 2018. The state is well on the way to converting to 100% renewable electricity. Use of EVs is growing steadily, and new building codes mandate the use of rooftop solar and electric appliances instead of natural gas.
The challenge is with the existing stock of residential and commercial buildings. Homes and businesses predominantly use natural gas for space heating, hot water heating and cooking. That’s where the concept of Whole House Electrification (WHE) come in. WHE is conceptually simple: replace gas appliances with electric appliances. In reality, one needs an energy audit to prioritize these conversions, then hire five different specialty contractors to do the work: insulation, solar, HVAC, plumbing, electrical and pool. It can be a daunting task.
Fortunately there are some pioneers out there - one of whom is my friend Howard Wenger. Howard was also a pioneer in the solar industry, with stints at AstroPower, PowerLight and SunPower. Please listen up to this week’s Energy Show as Howard discusses his experiences as he converted his house to 100% electricity, supplied — naturally -- by solar.
Copyright 2019 - The Energy Show, Barry Cinnamon
In the early days of solar and storage, virtually every system used lead acid batteries to store daytime energy and use this energy at night. Although these systems functioned well, they required a lot of maintenance (you can tell old-time battery installers from the acid burns in their jeans), were quite heavy, had complicated control systems and had limited lifetimes. Net metering alleviated the need for battery storage. But now with changes in net metering, Time of Use (TOU) rates and poor grid reliability, batteries are experiencing a resurgence.
Part of the reason for this battery comeback is that new lithium ion battery storage systems overcome almost all the disadvantages of lead acid systems (they are still somewhat expensive). These systems are designed to be installed next to your solar inverter, have integrated battery management and control systems, and require no maintenance over their guaranteed 10 year lifespans.
Utilities are moving their peak electric rates from mid day to the late afternoon and evening when the sun doesn’t shine. With battery storage, customers can time-shift their energy use -- running their homes and businesses from stored energy in their battery, and replenishing that battery the next day when the sun is shining. Many of these battery systems can also provide backup power during a grid outage — or one of the “Planned Power Outages” that utilities implement to prevent power line-caused fires.
The best news is that many states, including California, provide rebates to reduce the costs of battery storage systems. Please tune in to this week’s Energy Show as Josh Weiner from Sepi Solar joins us to explain the codes and standards that apply to the installation of battery storage systems.
Copyright 2019 - The Energy Show, Barry Cinnamon
The most common questions that prospective solar customers ask is “Which solar panels should I buy?” That’s a tough question to answer, and arguably maybe not the most important question (more about that later).
I initially got into the solar business for altruistic reasons -- save the planet and all that. The planet still needs saving, perhaps more than ever. But I quickly realized that the vast majority of customers were interested in saving money first (the planet could wait). So I am biased towards finding the most cost-effective system for customers. To that end, people want an inexpensive system that is reliable, high efficiency (especially if they have limited roof space), and looks good on their roof.
When it comes to the solar panels themselves (also called solar modules), all solar panels generate the same amount of electricity on a per watt basis. A 300 watt panel from Manufacturer A will generate the same amount of energy as a 300 watt panel from Manufacturer B. 24 panels with a 275 watt output will generate the same amount of energy as 22 panels with a 300 watt output (6,600 watts). Your appliances can’t tell the difference if they are using electrons from a super high efficiency panel or from a less expensive system. Nevertheless, there are clear cut differences among solar panels in terms of efficiency, aesthetics, cost and availability. On the other hand, some of the sales pitch distinctions are subjective, such as brand, quality, durability, and long term energy output.
To learn more about critical decision factors in purchasing solar panels for your home or business, listen to this week’s Energy Show. For those of you who have read to the end of this summary, the most important question to ask is: “which contractor will install the best solar power system for my home or business?”
Copyright 2019 - The Energy Show, Barry Cinnamon
This past winter season has been the rainiest I have ever experienced in California. The good news is that the state is no longer in a drought condition. The bad news is that severe weather is occurring around the country. We are likely to continue on this trend: a polar vortex recently hit the Midwest, heavy snows on the east coast, and even Seattle was devastated with big snow storms. 2018 was the 4th hottest year on record globally. On average, the summers are getting hotter and the winters are not as cold.
But this is a show about energy — particularly solar. Although the output of solar systems can be predicted fairly accurately, weather has the biggest impact on annual energy fluctuations [side note: the biggest monetary fluctuations come from your local utility as they raise electric rates].
Several of our customers were concerned about lower energy output from their solar system in November, December and January. We pointed out that rainy weather — including smoke from wildfires — obscured the sunlight enough to make a noticeable difference in energy output. Even our customers who had battery backup systems contacted us, but for different reasons. Many of them had multiple weather-related blackouts this winter. These customers were delighted that their refrigerators, TVs, lights and heat were all still working even though their power was out.
While one cannot change the weather (unless your name is Dr. Evil), we can prepare for a changing climate. Please listen up to this week’s Energy Show as we discuss how weather impacts solar power system performance.
Copyright 2019 - The Energy Show, Barry Cinnamon
There is a new electricity provider serving customers in the city of San Jose: San Jose Clean Energy (SJCE). Technically they are not a utility since PG&E still provides distribution services: maintaining local wires and transformers, as well as providing billing. SJCE’s electricity is cleaner (almost all from renewables) and slightly cheaper.
Some people wonder why we need another utility or electricity provider. The reason is simple: investor owned utilities (IOUs) like PG&E charge more for electricity than municipally owned utilities. These new electricity providers, called Community Choice Aggregation (CCA) utilities, are managed by the cities and/or counties they serve, operate with low overheads, and buy power from inexpensive wind and solar farms.
The utility industry is going through a massive transformation. Old fashioned coal, nuclear and gas power plants are more expensive than wind and solar. In fact, business and residential customers can install solar on their rooftops for much less than it costs their local utility to delivery power. Prices for battery storage are dropping, making it cost effective for customers to install a battery system both for time-shifting energy use as well as backup power. As a result of these “behind the meter” electricity technologies, the economics of centrally generated power sold by an investor-owned utility no longer make sense in many locations.
In addition to San Jose Clean Energy, Northern California is already served by CCAs in Marin (Marin Clean Energy), San Mateo (Peninsula Clean Energy), Santa Clara County (Silicon Valley Clean Energy), with about a dozen more CCAs in operation or in formation. To learn more about CCAs and how they are taking off in communities across the U.S., listen up to this week’s Energy Show.
Copyright 2019, The Energy Show - Barry Cinnamon
This week’s Energy Show is about the Green New Deal. Candidly, I’m all for the “green” parts, and not so enthusiastic about some of the “new deal” parts. The Green New Deal, formally called House Resolution 109 — 14 pages in all — is definitely a conversation starter. I sincerely hope that it gets our country re-focused on clean energy and good paying jobs for the 21st century.
Basically, the Green New Deal is a set of proposed economic stimulus programs in the United States with a goal of addressing climate change and economic inequality. The “Green" part refers to proposals to reduce the impact of climate change. It deals primarily with renewable energy, energy efficiency, and technologies that reduce carbon dioxide in the atmosphere. I’ve been working in the solar and the energy efficiency industries since 1977, so I believe that an “all of the above” approach gives us the best chance to avert the most negative effects of global warming.
For those of us who coasted through U.S. history in high school, the “new deal" part refers to a set of social policies, economic reforms and public works projects. President Franklin Delano Roosevelt pushed through the New Deal in response to the Great Depression. The Civilian Conservation Corps (CCC), the Civil Works Administration and the Social Security Administration are all legacies of the New Deal — and these policies created jobs for people who needed work. If you go camping in national parks, you may still see log cabins bearing the CCC logo.
Fast forward to 2007 when journalist and author Thomas Friedman coined the term "The Green New Deal.” The concept bounced around and evolved for a dozen years until Representative Alexandria Ocasio-Cortez and Senator Ed Markey released the Green New Deal resolution on February 7, 2019. Please Listen Up to this week’s Energy Show as we discuss both the energy and socioeconomic objectives of the Green New Deal.
Copyright 2019 - The Energy Show, Barry Cinnamon
The yield curve for certain types of debt is inverted, suggesting that there may be a recession on the horizon. Economists are worried, and their fears trickle down to mortals like us.
BTW, the yield curve plots the interest rate on the vertical axis and term of the debt on the horizontal axis. Normally, long term interest rates are slightly higher than short term rates because, as Yogi Berra said, “it’s tough to make predictions, especially about the future.” In other words, uncertainty about the future implies higher interest rates. But when the yield curve slopes downwards in the future, that implies that rates in the future will be lowered to counter a nearer-term recession.
So there is a lot of volatility in the stock market…not only due to interest rates, but also related to uncertainty about trade, an upcoming presidential election, and the overall state of our economy. Many of our listeners to The Energy Show invest in what they know the best: energy -- including solar, EVs, wind and fossil fuels. So if you are investing in the energy industry, or just depending on it for your career, what are our prospects?
My guest on this week’s Energy Show is Shawn Kravetz, President of Esplanade Capital, LLC. Shawn and I have crossed paths many times, going back to at Akeena and Westinghouse Solar. His firm is based in Boston, and manages capital for families, private investors and institutions with a focus on superior long-term capital appreciation, especially in the energy industry. Please Listen Up to this week’s Energy Show for Shawn’s insights into energy investments and our overall economy.
Copyright 2019 - The Energy Show, Barry Cinnamon
I’m a solar guy, so a lot of The Energy Show’s content is about solar and energy related issues. This week’s show is about solar, but focuses on a health issue important to everyone in the solar industry: new research about the NET health effects of sun exposure. This show is particularly timely since it looks like the rains here in northern California are finally slowing down -- after the wettest winter in recent memory.
I’ve always wondered why sun exposure could be bad for us, since humans evolved in the sun -- well before we figured out how to make hats or Armani suits. We hunted and farmed, probably half naked at the time, as our bodies evolved ways to adjust to almost constant sun exposure. It’s only been over the last few hundred years that we spend most of our lives indoors, out of the sun. And over the last 50 years or so manufacturers of sunscreen have convinced us to use their products to save us from the deadly effects of the sun’s rays.
Recent research on vitamin D and sun exposure has shown that lathering on the sunscreen to prevent sunburn may not be the best thing for your health. Instead, low levels of vitamin D indicate low sun exposure, and may be connected to increasing levels of high blood pressure, heart disease and stroke. The frequency of these diseases increases the farther one is from the equator and occur more often in the winter months. Some sun exposure is good, as my grandfather said when he put me under a sun lamp.
A Swedish study tracked the sunbathing habits of 30,000 women over 20 years. These sun worshippers had lower levels of blood clots and diabetes, and indeed had higher rates of melanoma…but they were eight times less likely to die from melanoma compared to the sun avoiders. Overall, sun avoiders were twice as likely to die over 20 years than the sun worshippers. It may be that most of us need sunscreen if we only occasionally go into intense sunlight, such as a week long vacation at the beach after six months toiling away in an office cubicle.
I’m obviously not a doctor or an epidemiologist, so do your own research. To learn about the latest solar exposure research, listen up to this week’s Energy Show as we talk about the research and impact of sunscreen on modern day humans.
Copyright 2018 - The Energy Show, Barry Cinnamon
Energy is so important to our civilization that, going back to the invention of fire, there continues to be an abundance of great ideas. Unfortunately, along the way there are also ideas that simply don’t make sense -- such as perpetual motion machines and concepts that violate the laws of thermodynamics. We also have dumb ideas that attempt to bring back old ways of doing things. One that really stands out is the current initiative for rolling back Corporate Average Fuel Economy standards, better known as CAFE.
According to the Union of Concerned Scientists, “…the current CAFE standards that were put in place several years ago and are in the process of being implemented now will save consumers $140 billion dollars by 2030. With the fuel economies established by these standards, car owner would save over $8,000 on a new vehicle in fuel savings, even after paying a little bit more for the fuel efficient technology.”
In a nutshell, the car costs a little bit more but you save a lot more on gasoline. Cars use 25% of the world’s oil, and for the first time in more than 40 years, the largest source of greenhouse gas pollution in the U.S. isn’t electricity production (thank wind and solar for that improvement), it is transportation: trains, planes and automobiles.
Automakers have made tremendous progress in improving vehicle efficiency -- spurred on by CAFÉ standards. That five liter engine in my 70s era car got maybe 15 mpg and cranked out about 150 horsepower. Now one can get 40 mpg and 150 horsepower out of a fairly commonplace two liter engine. With continued CAFÉ standards in place, we can expect lighter, more efficient, and more aerodynamic vehicles – as well as those that use new battery and driverless technologies.
To learn more about the efforts for rolling back fuel economy standards -- as well as understanding who is behind these retro initiatives -- Listen to this week’s Energy Show.
Copyright 2019, The Energy Show - Barry Cinnamon
Time to put on your thinking caps and connect the dots on these topics:
- Net Metering
- Solar Investment Tax Credit
- Property Assessed Clean Energy or PACE
- Renewable Portfolio Standards and RECs
- State Rebates such as SGIP and State Tax Credits
OK, what’s the common thread? Answer: these are all examples of successful public policies that help the solar industry thrive.
These policies did not organically spring from the minds of our wise legislators. Instead, they all originated from solar industry policy experts. These policies were implemented by legislators and regulators because the economic benefits to consumers (both business and residential) were compelling. To help us understand how good solar policies are created, my special guest on this week’s Energy Show is Anne Hoskins, Chief Policy Officer for SunRun.
If you don’t know SunRun, they are the largest residential solar and storage provider in the US. I was happy to be one of SunRun’s earliest partners when they started about a dozen years ago. SunRun has grown significantly since then, and now Anne has her hands full with solar policies in over 23 states, plus the District of Columbia and Puerto Rico. Prior to SunRun, Anne was a Commissioner at the Maryland Public Utilities Commission.
Please listen up to this week’s Energy Show as we talk with Anne about some of the most important solar policies that improve the economics for residential and commercial solar installations. And if your business is in any way related to the solar industry, you should give serious consideration to joining your state solar organization (such as the California Solar and Storage Association) or national Solar Energy Industries Association.
Copyright 2019, The Energy Show - Barry Cinnamon
Our electric grid is one of the most complicated systems that has ever been built. We have confidence that our electrical system is generally meeting the needs of people throughout the U.S. — unlike our electoral and election systems, which are beset by hackers, hanging chads and foreign interference. Nevertheless, new technologies such as solar, wind, battery storage, EVs, control systems and software present opportunities to improve the effectiveness and reduce costs throughout our electrical grid.
The traditional electric grid design depends on centralized power generation, sending power to customers in two stages: first over long distance high voltage transmission lines, and second over lower voltage local distribution lines. Power flowed from the generator to the customer using a top-down communication system. This centralized electrical grid, managed by public utilities, has served us well for over 100 years.
With rooftop solar, customers are generating their own power and sending the excess back to the grid (consumed by their neighbors). With batteries, customers can store their daytime-generated solar energy and use it at night, or use their batteries to meet peak power loads. And now, with the right software and communications, these local solar generators, batteries and control systems can be aggregated into a Virtual Power Plant, or VPP.
These new technologies are cheaper, more flexible, more reliable and cleaner than the traditional grid. But they function more as a network of billions of devices – similar to the way our telecommunications systems operate. Moreover, this combination of new grid technologies and a networked architecture is antithetical to the “top down” way that traditional utilities operate. Please listen to this week’s Energy Show to learn about the design of this networked electric grid of the future — and why the traditional utility business models must change as VPPs become more commonplace.
Copyright 2019 - The Energy Show, Barry Cinnamon
Remember the EV1 - GMs experimental foray into electric vehicles? Although the EV1 was a failure in terms of mass market sales, it captured the imagination of both car and environmental enthusiasts. Tesla’s leadership has proven that EVs can indeed be a marketable product. Now, virtually every automaker has a selection of practical EVs and longer-range hybrids.
I’m still a big fan of high performance gas engines; it amazes me that power outputs have tripled since the early 70s, while fuel economy has improved and engine longevity is in the 200k mile range. I’m also a big fan of plug-in hybrids that permit family long trips without detailed planning for a charging pit stop. Nevertheless, except for certain niche applications (high performance, long range and car nuts) the die is cast and the gas engine is passé. Virtually all automakers are planning manufacturing facilities to transition to a mostly EV/hybrid fleet in 10-20 years.
Ironically, at the same time customer preferences are transitioning towards EVs, customers are also buying more SUVs and crossovers — which generally have worse gas mileage than sedans (I like the fact that you can haul around a 60 cell solar panel in an SUV). In early 2018 Ford announced that they would no longer manufacture sedans, with the exception of the Mustang. Recently, GM announced similar plans to effectively abandon the sedan market and focus on SUVs crossovers and trucks.
With favorable government policies in almost every country, inexpensive solar and wind electricity, and the need to reduce worldwide carbon emissions, the shift wards EVs is inexorable. Please listen up to this week’s Energy Show for more about the reasons our grandchildren will all ride in EVs, and will probably never change the oil or a spark plug.
Copyright 2018 - The Energy Show, Barry Cinnamon
We’re starting to see the impact that the 2018 congressional elections had on clean energy. Although the House of Representatives is now in Democratic control, many of the energy policies of the Trump administration are likely to continue.
Starting at the top, President Trump is unlikely to change is viewpoints favoring fossil fuels and ignoring global warming. As one would expect, his cabinet officials leading the EPA, Interior and DOE will continue on their path of loosening regulations, increasing oil and gas drilling, and supporting nuclear technologies while rolling back CAFE standards. From a congressional standpoint we can expect much more proposed legislation for clean energy technologies, but since the Senate must also support these efforts and Trump may veto them, I do not expect any significant clean energy legislative victories. Nevertheless, the Climate Solutions Caucus in the House of Representatives will continue to address risks from global warming -- regardless of the prospects of success.
When it comes to state-level activities, the prospects for better solar and storage are much brighter. Seven states changed their gubernatorial party leadership, and all of these new governors campaigned in favor of clean energy. In fact, after president Trump’s disavowal of the Paris climate agreement, 16 states and Puerto Rico pledged to uphold the accord anyway and keep fighting climate change on their own.
While our country staggers drunkenly both forwards and backwards from a clean energy policy standpoint, the economics of clean energy continue to improve. Solar, wind, storage and energy efficiency continue to get cheaper, simpler and more integrated in our daily lives. At the end of the day, even bad policies are unlikely to counteract the incredibly positive economics of solar, wind and energy storage. Please tune in to this week’s Energy Show for the few glimmers of good news about our country’s transition to cheaper clean energy and be sure to check out the EPA Archives at www.RememberTheEPA.com.
Copyright 2019 - The Energy Show, Barry Cinnamon
PG&E’s bankruptcy will have a dramatic effect on all electricity users in northern California — as well as utility investors, California taxpayers, and the solar industry in general. Moreover, the bankruptcy of one of the largest utilities in the country is a harbinger of the need to change the traditional utility business model. Not only are utilities experiencing competition from businesses and homeowners installing their own solar and storage systems (for less money), but utilities are also experiencing much greater than expected costs related to maintaining their transmission and distribution services. Devastating fires are more common, people are living in more fire-prone areas, our need for electricity is increasing … and this situation is likely to get worse.
Although PG&E has been my biggest competitor for almost 20 years, they have established a reputation as the best (some would say “least bad) investor-owned solar utility in the country. Compared to almost all other utilities, PG&E has been ahead of the curve with solar, net metering, energy storage – influenced to a large degree by a far-sighted California Public Utilities Commission and state government. They are also staffed by committed and hard-working employees throughout their organization.
Nevertheless, PG&E’s financial problems raises substantial issues for solar and non-solar customers alike. Meeting the conflicting needs of taxpayers, electricity customers and investors is a daunting legal and political challenge. To help sort through these issues, my guest on this week’s show is Angela Lipanovich, President and Founder of Estriatus Law. Among the topics we will cover include:
- What happens in a corporate bankruptcy, and how did PG&E fare in their 2001 bankruptcy?
- How do bonds taken out by PG&E affect electricity rates?
- Would these bond repayments affect net metering reimbursements?
- Would a bankruptcy judge force affected homeowners and businesses to accept less money for their losses?
- What would be the electricity rate impact for every $10 billion in PG&E’s liabilities?
- A bankruptcy judge can renegotiate corporate debts – what affect could that have on PG&E’s Power Purchase Agreements?
- How must utilities change their tree trimming and maintenance practices to prevent future fires?
- What is a practical long term solution to California’s expensive electricity?
To learn more about the implications of PG&E’s bankruptcy, Listen Up to this week’s Energy Show with Angela Lipanovich.
Copyright 2019 - The Energy Show, Barry Cinnamon
According the National Renewable Energy Lab (NREL) there are about 70 million residential and commercial buildings in the US that are suitable for rooftop solar. The Solar Energy Industries Association (SEIA) estimates that there are about 1.6 million systems that have already been installed. So with less than 2 percent market penetration, we haven’t even scratched the surface. How long will it take for us to get to say, 10 million solar systems ... or 35 million, about half the rooftop capacity in the U.S.?
Based on the concept of the technology adoption lifecycle, we can make some educated guesses. This concept addresses the rate at which new products are accepted by the market. Our guest on this week’s show is Jamie Johnston, Director at Vector Structural Engineering. Jamie is an industry thought leader and extremely passionate about solutions to the slow motion global warming train wreck. Vector provides residential and commercial solar certification letters for over a hundred companies in the U.S.(we use their services at Cinnamon Energy Systems).
Jamie will share with us his insights into where we stand on the solar adoption curve — and how long he believes it will take us to get to that 35 million installed capacity. Interestingly, some of the implications of greater solar market penetration is not just more rooftop solar, but the need for ancillary services among customers, such as maintenance and system replacement. Jamie will also share his thoughts as dedicated rooftop solar evolves into complete energy systems — including storage and integration with other building systems such as HVAC and car charging.
Copyright 2019 - The Energy Show, Barry Cinnamon
With the solar industry chaos of 2018 behind us, many of us are looking toward more predictable growth from 2019…at least until the Investment Tax Credit goes to zero for residential and 10% for commercial on December 31, 2021. Then again, we’re on the solar coaster, so it is unwise to be complacent about a rosy solar future — or the broader economy, for that matter. Here are my 10 predictions for 2019.
- Inflation will hit residential solar installations hard
- Good software and communications are the price of admission for future solar and battery systems
- Supply chain issues with battery storage systems will persist
- With a recession looming, financing will become even more important
- U.S. solar manufacturing will continue its downward slide
- PUCs will force utilities’ hands when it comes to grid reliability
- Despite headwinds, batteries will continue their slow march toward 50% penetration
- As pilot results roll in, uptake of VPPs will increase
- Upgrades and maintenance will emerge as a key opportunity
- Stubborn soft costs will impede further drops in residential solar prices
As I wrap up these 2019 comments, I am humbled by Yogi Berra’s advice: “It’s tough to make predictions, especially about the future.” Nevertheless, I am confident in two key elements of our industry: We are doing the right thing for the global environment, and the economics of solar-plus-storage remain superior to any other energy source. I remain optimistic that — regardless of the next plunge in the solar coaster — our industry will continue to thrive over the long term. Please listen up to this Week’s Energy Show for the details on these 2019 Rooftop Solar and Storage predictions.
Copyright 2018 - The Energy Show, Barry Cinnamon
Attention U.S. Department of Commerce: your well-intentioned efforts to help the U.S. solar panel manufacturing industry are not working.
Even with 30%+ tariffs on imported solar panels and cells, the remaining U.S. manufacturers are struggling to stay competitive. The good news, as one would expect, is that there is strong demand for Made in the U.S.A. solar panels – both from ordinary consumers as well as government purchases. However, structural issues with the supply chain for solar components puts the remaining U.S. manufacturers at a substantial disadvantage.
The reasons for these supply chain challenges are simple. Basically, many of the key components that go into solar modules are not manufactured in the U.S., including wafers, cells, EVA and junction boxes. And many of the components that are indeed available in the U.S. — such as glass, backsheets and aluminum frames — are significantly less expensive at comparable quality levels if purchased from overseas suppliers. To make matters even worse, these essential imported solar components are subjected to additional tariffs when imported from certain countries. Essentially, we are shooting ourselves in our foot if we expect U.S. solar manufacturers to be competitive when 30%+ tariffs are applied to most of the major solar components.
A rational plan to make the U.S. competitive in solar manufacturing does not require government support. Instead, it requires government to get out of the way and set a long-term solar manufacturing policy. U.S. manufacturers would instantly be more competitive if they did not have to pay tariffs on imported solar components — particularly cells and aluminum solar frames. Once the U.S. solar manufacturing base is re-established and consistent, U.S. manufacturers could invest in domestic wafer, cell, junction box and other component manufacturing.
How are U.S. manufacturers coping with competitive global issues of cell production and purchasing, U.S. production costs, cell and panel tariffs, local and federal regulations, and shifting national policies? The best way to answer this question is to speak with one of the most experienced U.S. solar panel manufacturers. My guest on this week’s show is Mamun Rashid, COO of Auxin Solar, based in San Jose, California. Auxin manufactures high quality poly and mono solar panels for residential and commercial customers. They also do original equipment manufacturing for tier-1 manufacturers who have “made in the USA” requirements. Please listen up to this week’s Energy Show for Mamun’s perspective on the opportunity and challenges for companies manufacturing solar panels in the U.S.
Copyright 2018, The Energy Show, Barry Cinnamon
You know what they say: “Video killed the radio star.” Well I’m going out on a limb and adding video to this week’s podcast. But since my fans say I have a perfect face for radio, I’m not worried that this video podcast will affect my Arbitron ratings. Nevertheless, my guests on this video podcast are much more telegenic, so I encourage you to click through to this video link (https://youtu.be/yIG0KyWjI5w).
A few months ago I had the pleasure of organizing and moderating a panel discussion about microgrids for the MIT Club of Northern California. Basically, a microgrid is a combination of solar, batteries, inverters, software and control electronics that allow customers — both residential and commercial — to operate independently of the grid. Interest in microgrids is skyrocketing for two reasons. First, the grid is becoming less reliable, while at the same time our society is becoming more dependent on electricity. Second, time of use electric rates now peak in late afternoons and evenings, making it much more profitable to store daytime solar generation in a battery and using that energy during peak electric periods.
There are four factors limiting the growth of the microgrid industry: 1. The first is good energy policy that makes the economics of microgrids work for customers. Bernadette Del Chiaro, Executive Director of the California Solar Storage Association, joined us on this panel. Without a doubt, Bernadette is one of the best solar and battery policy experts in the entire country. 2. Next we need functional and affordable batteries. Peter Gibson, the head of North America Energy Storage Solutions for LG Chem, is the battery expert. LG Chem is one of the biggest battery manufacturers in the world. Their residential battery storage products are in such demand that they cannot make them fast enough. 3. Inverters are the heart of a microgrid. Lior Handelsman, Co-Founder of SolarEdge, shared his insights into the future of microgrids powered by smart inverters. In the way of background, SolarEdge is the inverter market leader, and has done a terrific job with software that is critical to successful microgrids. 4. Finally, cooperation from electric utilities is key to the widespread adoption of microgrids. New Community Choice Aggregation utilities have the potential to lead the way; the CEO of Peninsula Clean Energy, Jan Pepper, joined us. And I was especially happy to include another spice in our discussions.
Listen up to this Week’s Energy show to learn about how each of these industry leaders are working today to deliver migrogrids to both residential and commercial customers. Please click through to this video link (https://youtu.be/yIG0KyWjI5w) for the entire MIT Microgrids panel discussion.
Copyright 2018 - The Energy Show, Barry Cinnamon
It’s depressing that lithium batteries get almost all of the focus in the energy storage industry. Lithium batteries have a number of advantages, including high energy density, good longevity, declining costs and established integration with electronics, vehicles and stationary energy storage. Although ideal for residential and commercial storage applications, lithium ion chemistries are not great for long term and high capacity energy storage — which are the characteristics that many utility storage installations require.
Flow batteries have the potential to meet these utility storage application needs. Flow batteries use two tanks of liquid electrolyte, separated by a special membrane, that flows between the anode and the cathode within the battery cell. Energy is stored in this liquid electrolyte instead of as part of the electrode material in conventional batteries. The energy storage capacity of a flow battery is related to the amount of liquid electrolyte — bigger tanks provide greater storage capacity. The power output of a flow battery depends on the size of the anode and cathode electrodes in the battery cell.
Since their storage capacity is limited mostly by the size of the electrolyte tanks, flow batteries are great for grid-scale storage. They are also finding applications when sited alongside PV systems. Since the battery can absorb power in excess of what the grid or inverter can handle, inverters can be smaller — resulting in lower equipment costs and greater efficiency.
I heard about new flow battery technology from my friends at NexTracker. I was initially hesitant to learn about flow batteries - one could say I’m in a lithium rut waiting for the commercialization of dual lithium crystalline reactor technology for interstellar travel. But when I understood the real-world benefits of Avalon’s batteries when integrated with utility-scale tracker installations, I was convinced.
So on this week’s show we’re going with the flow. Our guest is Matt Harper, Co-Founder and Chief Product Officer of Avalon. I hope you tune in to this week's Energy Show as Matt explains the technology behind flow batteries, practical applications, availability of electrolytes, and Matt’s view of how flow batteries have the potential to meet our long duration energy storage needs.
Copyright 2018 - The Energy Show, Barry Cinnamon
The bad news about global warming continues unabated. This fall the United Nations Intergovernmental Panel on Climate Change (fondly referred to as the IPCC) sent up an emergency flare. According to Amjad Abdulla an IPCC board member and chief negotiator for the Alliance of Small Island States, “The report shows that we only have the slimmest of opportunities remaining to avoid unthinkable damage to the climate system that supports life, as we know it.“ Obviously, small island states are at the most immediate risk. But if the earth’s warming trend continues, many populated areas around the globe will essentially be uninhabitable.
I read the entire report. It’s complex, dense, hard to understand and full of bureaucratese. There were two conclusions in the report that were especially surprising to me. First, unless the world acts immediately and intensively, there is almost no chance that global warming will be less than 1.5 degrees Celsius. The reason is that there is a lot of inertia in the earth’s climate system — we are already on a rapid warming trend. The second conclusion is that an immediate worldwide investment of roughly $900 billion per year will be required to stay below this 1.5% threshold.
On a positive note, I learned a lot of new TLAs (Three Letter Acronyms). My personal belief is that our grandchildren will be saddled with the economic and sociological disruptions that global warming will cause. Nevertheless, there is a large portion of our population that remains skeptical about global warming and its potential impacts. One reason for this global warming divide relates to economics. Some industries — particularly those dependent on fossil fuels — will be negatively impacted (“harmed" is the non-bureaucratic term). On the other hand there will be many industries that will benefit…not only solar and wind, but also from all the jobs created from the transition away from fossil fuels: EVs, heat pumps, more extensive electrical infrastructure, control systems and as yet undeployed new energy technologies.
As an solar enthusiast, I’m obviously biased. But the consequences of global warming are so severe that even the skeptics should consider immediate action as a form of an insurance policy. In case the skeptics are wrong about global warming, an investment now can avoid a disaster later. For more about the IPCC’s recommendations to stabilize and reverse global warming, listen to this week’s Energy Show.
Copyright 2018, The Energy Show - Barry Cinnamon
One of my favorite Hemingway books is "The Sun Also Rises." It’s about Spain, bull fighting and a group of lost generation friends in Paris in the 1920s. But this show is an energy podcast, not a book report. So with apologies to Ernest Hemingway -- here in California -- the sun also rises. But it rises at night with battery storage.
Governor Brown recently signed into law a bill called SB 700, which establishes an additional $800 million dollars of incentives for behind the meter battery storage. These incentives, part of the Self Generation Incentive Program (SGIP), are designed for both commercial and residential systems. SGIP is the biggest battery storage incentive program in the U.S. For the past year and a half, our battery storage customers have been using SGIP funding to reduce the costs of their combined solar and storage systems.
These incentive programs don’t appear automatically. The California Solar and Storage Association (CALSSA) worked for three years to finally get this storage incentive passed. Bernadette Del Chiaro, Executive Director of CALSA, explains the key reason for these storage incentives: “What we’re trying to do is create a mainstream market for energy storage — just like we’ve done for solar photovoltaic systems.”
Why did it take so long? There was intense opposition from electric utility business interests who do not want customers storing their own energy, just as they do not want their customers generating their own solar power. Utilities benefit financially when they install their own “grid-sized” batteries on their side of the meter, just as they benefit from large utility scale solar farms. From an overall perspective we still need utilities, not necessarily for electricity generation, but primarily for long distance transmission and local distribution of electricity.
Utilities have provided a terrific service to the world for over 100 years. Now, with inexpensive solar and batteries, utility customers can install their own generation and storage systems. To learn more about why the Sun also Rises At Night with Batteries, Listen to this week’s Energy Show.
Copyright 2018 - The Energy Show, Barry Cinnamon
People complain about high electric bills almost as often as they complain about the price of gas. And for two good reasons. First, utilities consistently raise their electric rates -- not only for inflation, but also to increase their profits. So even if you don’t change your habits, your electric bills will generally keep increasing (like my waistline). Depending on where you live, these rate increases can average 3% -7% per year. The second reason is that we are using more and more electricity. Our 21st century lifestyle is much more energy intensive: we have more appliances, electric vehicles, electronic toys and cellphones, use heat pumps for space conditioning and hot water, and rely on more air conditioning as the climate gets hotter.
The average electricity consumption in single family homes in the US is 900 kwh per month. Although the average electricity cost around the country is 13.5 cents per kwh, there is a tremendous cost variation depending on location, climate, and cost of living. For example, in Hawaii, the average electricity cost is 33 cents per kwh. The official data for California indicates that the average cost of electricity is 20 cents per kwh. I question these averages because when I look at PG&E’s current electric rate, the baseline rate tier is 20 cents per kwh. Tier 2 electric rates (up to 400% of baseline electricity or about 400 kwh) is 27 cents a kwh. Tier 3 electric rates, defined as “super users” are 40 cents per kwh. If you require a lot of air conditioning, have a swimming pool, a bunch of networking and home entertainment equipment, or an electric vehicle, congratulations: you are likely a “super user.” Once you are in the super user tier -- over about 1300 kwh per month -- you are paying 40 cents for every kwh you use.
Obviously, if your home has a sunny exposure, solar makes great sense. But many people do not have that option. So what can you do? The first step is to find out what is causing those high electric bills. Buy or borrow a gadget called a “Kill A Watt Meter” and do some electricity sleuthing around your home. Some of the electricity hogs that I’ve found over the years include a defective AC compressor motor, keeping the temperature too cool in the summer and too hot in the winter (the fan motor in your furnace uses a lot of electricity), pool pumps running more than required, old refrigerators, vampire energy loads, and an abundance of electronic gadgets (including lighting, security, music and networking systems).
For more about the clever and insidious ways that our electricity providers separate us from our hard-earned dollars, tune in to this week’s Energy Show.
Copyright 2018 - The Energy Show, Barry Cinnamon
We have all seen those big power plants outside cities that provide power -- historically from coal, oil and nuclear and now more recently, natural gas. These utility power plants have served us well for over a century. But technology is passing them by. These old central generation power plants are obsolete. They are more expensive than power generated by wind, solar and energy storage. Even some of the newest gas peaker plants under construction are destined to be obsolete within a decade. New power generating technologies – solar, wind, battery storage, distributed energy resources, virtual power plants, etc. — are steadily improving in terms of cost, duration and reliability.
Unfortunately, commercial and residential electricity customers are saddled with the costs of existing power plants, even ones that have been installed recently. Utilities pass their costs of power generation, transmission and distribution directly to ratepayers. Moreover, utilities are guaranteed a 10% profit based on their net assets. Although they do indeed care about reliability and safety, utilities actually make more money when they own a lot of assets (higher profits) and charge high prices for power (higher revenues).
These new clean, inexpensive power generation and storage technologies are turning the utility industry upside down. Commercial and residential customers can essentially purchase their own power plants for less money than utility-provided power. Listen up to this week’s Energy Show as we review the deteriorating economics of utility-based power plants, as well as the implications these new technologies are having on consumers throughout the United States.
Copyright 2018 - The Energy Show, Barry Cinnamon
We take it for granted that you can install solar on your home or business anytime, just as you can make any other energy saving improvement. Unfortunately, the reality is there are a host of restrictions on solar and battery storage. Many of these restrictions are due to arbitrary regulations (solar panels cannot be visible from the street), as well as rules promulgated by utilities to maximize their profits. Riddle me this, Solarman: why does your local utility encourage you to install an 8 kw EV charger, but makes it extremely complicated (sometimes impossible) to install a 2 kw rooftop solar system?
Incumbent industries have economic power behind them. Utilities spend hundreds of millions of dollars to suppress competition from rooftop solar, compared to the million or so dollars spent by most state solar industries. But polls show that 95% of the population favors solar. Although the solar industry is at a financial disadvantage, there are tens of millions of people in the U.S. that benefit - either directly or indirectly - from the solar industry. The challenge is organizing this grass roots army to advocate for cleaner and and more affordable energy sources.
The Solar Rights Alliance was founded to empower these millions of solar citizens. Its mantra is everyone should have the right to generate his or her own power directly from the sun -- and that no monopoly or special interest should try to block or own the sun.
Our special guest on this week’s Energy Show is Dave Rosenfeld, Executive Director of the Solar Rights Alliance. He’s spent his career building movements and institutions that expand freedom, liberty and justice including work with the National Public Radio, The Public Interest Research Group, and the Public Interest Network. Grass roots advocacy has been effective in making many big changes in our democracy, and Dave is working hard to deploy this growing army of solar enthusiasts to make solar cost effective and available to everyone.
Copyright 2018 - The Energy Show, Barry Cinnamon
Solar combined with battery storage seems like magic to many residential and commercial customers. With a million and a half systems installed in the U.S., the question is no longer: “does solar work?” Instead, customers want to know how much money they will save with a system. And commercial customers are even more diligent about accurate savings predictions.
There are a plethora of “solar calculators” on websites all over the internet. But these crude calculators do not take into account detailed weather data, shading, orientation, equipment parameters and utility rates. Surprisingly, the utility rate information is hard to get, extremely detailed, and changes more often than import tariffs. And correlating hourly solar output data with these utility rates, time periods, rate tiers, fixed fees and demand charges can be a programming nightmare. I’ve had experience with huge spreadsheets that did these calculations for rates all over the country. Just thinking about a spreadsheet with 35,000 rows of 15 minute interval data is enough to make me reach for the Advil.
Traditionally, solar performance calculators only had to model energy flows in two directions: to the building or to the grid. With batteries there is a third path for the energy to flow, making it exponentially more complicated to optimize savings from a particular system design. Dedicated software tools such as Energy Toolbase provide an accurate software platform for modeling the economics of solar and storage products — and also provide professional proposal tools.
My guest on this week's Energy Show is Adam Gerza, Chief Operating Officer of Energy Toolbase. Adam gained his solar chops after many years in the commercial solar industry. He knows the business and knows how to crunch the numbers. So leave the headaches to Energy Toolbase, and listen up to this week's Energy Show as we speak with Adam about his company, solution and the solar + storage market.
Copyright 2018 - The Energy Show - Barry Cinnamon
Energy storage is critical to our ability to eliminate the use of fossil fuels. Basically, we need a way to store the abundance of daytime solar and use this energy at night. Although lithium ion batteries have been getting most of the attention, fuel cells provide another way to convert fuels into electricity.
A fuel cell is an electro-chemical cell that converts the chemical energy from a fuel into electricity through a reaction of hydrogen or another hydrocarbon fuel, such as gasoline or natural gas, with oxygen. The history of fuel cells goes back over a hundred years — in fact, their first commercial use came from NASA to power orbital space craft. Fuel cells are different than batteries because a battery produces energy from a chemical reaction that is already in the battery, whereas a fuel cell requires a continuous source of fuel and oxygen to sustain the chemical reaction. The great thing about fuel cell technology is they can continue to supply energy for as long as fuel and oxygen are supplied.
However, fuel cells can either be clean and renewable power sources — or just as polluting as fossil fuels — depending on their fuel source. Currently, most fuel cells use hydrogen as their fuel. Although the chemical reaction of hydrogen with atmospheric oxygen is emission-free (the only byproduct is water), the source of the hydrogen is problematic. Almost 100% of the hydrogen gas used for fuel cells and industrial processes comes from reforming natural gas. As a result, just as much CO2 is produced when hydrogen is used as a fuel, as if the natural gas were to be combusted directly. Nevertheless, future processes in which ordinary water is electrolyzed into its components hydrogen and oxygen can indeed produce hydrogen perfectly cleanly — as long as solar or wind are used to power the process.
More and more fuel cells are finding their way into the conventional power and transportation industries. Bloom Energy is successfully selling their natural gas-powered fuel cells to customers that need a reliable source of backup power. And Toyota has rolled out their Murai hydrogen fuel cell car in areas that have sufficient hydrogen filling stations (most of which are in California). For more about the underlying technology and opportunities for fuel cells, tune in to this week’s Energy Show.
Copyright 2018-The Energy Show, Barry Cinnamon
When a business or homeowner gets a new rooftop solar installation, the second question they always ask is “how often do I need to clean my solar panels.” We’ll answer that question on this week’s show — taking into account the different effects of rain, dust and electric rates. BTW, the first question people always ask is “how do I read my electric bill;” but that’s a topic for another show.
Rooftop solar panels get dirty primarily from wind-blown dust and pollen. Birds are usually not a problem unless your last name is Hitchcock and you live in Bodega Bay. As panels get dirtier, their output declines. A small amount of soiling — say a light dusty film — may only cause a 5 percent output decline. However, when panels get very dirty — perhaps in an agricultural area or location that does not get regular rainfall — the output decline can be greater than 20 percent. A good heavy rainstorm will usually wash away most of the accumulated soiling.
I use the term “usually” because on panels that are tilted at about 5 degrees or less, the rain may leave a puddle of muddy debris along the lower edge of the panel. When this puddle dries, sometimes a thick layer of dirt accumulates along the lower row of cells (sometimes moss and weeds may even grow in these areas). Depending on the design of the system, this small accumulation of dirt can cause a very significant decrease in output.
So the answer to the question: “how often should I clean my solar panels” really depends on five factors: your location (does it rain regularly or only during certain months), the tilt angle of your panels (steeply tilted panels tend to stay much cleaner than panels that are close to horizontal), the amount of wind blown dust, your electric rate (if your electric rate is high then it is more worthwhile to clean your panels), and the cost to clean your panels.
If you have a large solar array at a low tilt angle in a dry climate with high electricity costs, our basic advice is to clean your panels once a year. Under these circumstances the additional electricity output from clean panels will be much greater than the cleaning costs. On the other hand, if you have a small array in an area that rains regularly, then it may only make sense to clean your panels every five years or so. Here in California it generally does not make a lot of sense to clean your panels in the late fall or winter during the rainy season.
Regardless of your circumstances, please make sure you clean your panels with soapy or treated water to prevent damage from mineral deposits. Contact your solar contractor or maintenance company if you would like your system cleaned professionally. For more about keeping your solar system operating at top efficiency, please Listen Up to this week’s edition of the Energy Show.
Copyright 2018 - The Energy Show - Barry Cinnamon
There are there are three market segment for solar in the U.S.: residential, utility and commercial. Based on some rough math, in 2018 we expect to install 5 to 7 million solar panels on homes in the U.S. In areas with high residential electric rates, paybacks are usually in the range of 4-8 years. But the utility solar segment is much larger: about 20 million solar panels will be installed by utilities in 2018. Utilities realize that it is cheaper to generate power with solar compared to coal or nuclear generation. Moreover, the combination of solar and batteries is projected to be even cheaper than natural gas in a few years.
The commercial solar segment has been growing, but has been challenged by a lack of efficient financing, slow decision making, and relatively high costs. But this market segment is poised to grow much more quickly in the coming years. Standardized lease, PPA (Power Purchase Agreement) and PACE (Property Assessed Clean Energy) financing is now available. Cheaper solar panels, inverters and rooftop installation techniques are reducing up front costs. And commercial customer decision making is accelerating now that a number of national retailers (Costco, Staples, Target, Safeway), tech companies (Microsoft, Apple, Google), casinos and data centers have made rooftop solar a standard part of all their buildings.
Quite simply, the biggest advantage of rooftop solar to commercial customers is financial. As with the residential and utility segments, almost any commercial building can reduce their electricity costs by 20-40% (net of financing costs). Paybacks are in the range of 3-8 years, easy financing is available for both for-profit and non-profit businesses, and even tenant-occupied buildings with triple net leases can benefit.
As a result, the acres and acres of flat roof buildings around the country are destined to be put to work generating clean, renewable power. For more about commercial solar for businesses of all sizes, Listen Up to this week’s Energy Show.
Copyright 2018 - The Energy Show - Barry Cinnamon
These days you can’t watch TV, read a news story or listen to the radio without seeing catastrophic fires, hurricanes, and high temperatures. The world is getting hotter. To illustrate, Death Valley recorded the hottest month ever recorded on Earth. Temperatures averaged 108.1 degrees day and night, all of July 2018. That beat last year’s record monthly temperature. This is not just a U.S. only story, it’s a worldwide issue. During the month of July 2018 record high temperatures were set on every single continent in the northern hemisphere (it was winter in the southern hemisphere).
Politicians, policymakers and leaders all over the world created the Paris Climate Agreement in 2016 — which every country in the world joined except for outcast Syria. Syria stepped up to the Paris Climate Agreement in 2017 — and then during the same year President Trump withdrew from the Agreement. The U.S. is the only country in the world that is not a signatory of the Paris Climate Agreement, the intention of which is to avoid a likely slow motion global warming disaster. We have been euphemistically describing this problem as “climate change.” Yes, the climate is changing, and it is getting hotter. So I am back to describing this looming catastrophe as “global warming."
There are a few scientists who still believe that this global warming is not caused by mankind, is part of a natural cycle, or is not really a problem (Iceland could be the new Costa del Sol). Nevertheless, according to ongoing temperature analyses conducted by climate scientists at the NASA Goddard Institute for Space Studies, the average global temperature on Earth has increased by about .8 degree Celsius which is 1.4 degrees Fahrenheit since 1880. Two thirds of the warming has incurred since 1975 at a rate of .15 to .2 degrees per decade. Natural processes are generally not linear -- this warming is speeding up. We may be getting close to a tipping point at which global warming dramatically accelerates, flooding coastal areas and creating conditions so hot in many countries that humans can no longer survive.
Please Listen up to this week’s Energy Show as we share various scientific and media perspectives on global warming. It’s time to panic and act.
Copyright 2018 - The Energy Show - Barry Cinnamon
This week’s Energy Show is for solar power customers, contractors and inverter manufacturers who appreciate the need for reliable solar power systems. Surprising as it may seem, most solar monitoring systems are simply not up to the reliability standards of the panels and inverters they support.
The good news is that solar monitoring problems almost never affect system performance. Monitoring failures may indicate an inverter problem, but the panels and inverters are almost always working properly. In reality, the problem is with the communications somewhere along the chain - including the inverter, inverter gateway, home router, wireless connections (wifi, zigbee, cellular, etc.), internet connection and server-side software. Troubleshooting these monitoring and communications issues is one of the biggest hassles that contractors have -- made more difficult by the fact that most installers do not have home networking IT expertise. As a result, many contractors have changed their inverter suppliers because of less than perfect monitoring hardware and software.
Going back to 2001 I’ve installed inverter systems from over a dozen companies. Not surprisingly, most of these inverters or communications systems are still running (including Trace, SMA, Fat Spaniel, Xantrex, BP Solar, Sharp, Fronius, SunRun, Enphase, SolarBridge, PowerOne, SolarEdge, JLM, Tigo). Although these inverter companies make great inverters, they are not necessarily software and communications experts. The end result is poor monitoring reliability and customer complaints, even when the inverters continue to operate.
To learn more about these solar monitoring issues — as well as my recommendations for long term monitoring reliability— Listen Up to this week’s Energy Show.
Copyright 2018 - The Energy Show, Barry Cinnamon. All Rights Reserved.
On this week’s Energy Show were talking about old solar panels. Specifically, what do you do with them?
Solar panels last 30 years or more. Almost all of the old panels that I have tested still crank out close to their original power output. Unfortunately, old solar panels are not compatible with the electronics of new systems - inverters, optimizers and microinverters. Sort of like that old CD-ROM software that is still good…if you could just get a computer that has a CD-ROM drive and runs Windows XP.
Some people want to upgrade their old 14% efficiency panels with new 20%+ efficiency panels equipped with a battery storage system. One big benefit of upgrading or adding panels is that the 30% tax credit applies to all new equipment — including that old inverter that may have failed. I expect that commercial customers will also start to upgrade their systems, replacing thousands of old panels with thousands of new panels.
So what do you do with these old panels? Even though they are constructed of recyclable glass, aluminum and silicon, there has not been a viable solution for recycling solar panels. Instead of dumping old solar panels in landfills, my friend and solar guru Sam Vanderhoof has a solution to this problem: his new company called Recycle PV Solar (recyclepv.solar).
Sam estimates that about 95% of solar panels are going into landfills. 15 gigawatts of solar panels were installed in the U.S. in 2016 - that represents about 6 million pounds of panels being installed every day! On a cumulative basis there are about 53 gigwatts of panels currently installed in the U.S., or about 200 million solar panels. To visualize the enormity of this recycling challenge, a train filled with containers of solar panels would be 1,500 miles long! Please Listen Up to this Week’s Energy Show to learn more about the challenges, economics and opportunities of recycling solar panels.
Copyright 2018 - The Energy Show, Barry Cinnamon. All Rights Reserved.
Great solar policy is just as important as great solar technology. Obviously we need the technologies for these products — but we also need the policies so that solar products can be cost-effectively installed. And I’m not just talking about incentives…policies related to net metering, interconnection and permitting are just as important.
Getting good solar policy requires effective political lobbying. I hate to let you down, but these great energy policies did not magically spring from the brains of inspired politicians When I look back at the successes our industry has had over the years — net metering, the California Solar Initiative, Solar Tax Credits, state incentives — all of these policies were based on sound analytical research coupled with effective lobbying.
There are a few companies that specialize in the types of analysis that’s required to put together good policies. One of the best is Cross Border Energy, based in Berkeley California. They provide clients with strategic advice, economic analysis and expert testimony on market and regulatory issues in the natural gas and electric industry. It is my pleasure to have Tom Beach, Principal Consultant of Cross Border Energy as our guest on this week’s Energy Show.
Tom has been influential on many of California’s ground breaking energy policies. He has worked on the restructuring of the states gas and electric industries, the addition of new natural gas pipelines and storage capacity, renewable energy development, and a wide range of issues concerning California’s large independent power community. I also had the pleasure of working with Tom on the California Solar Initiative many years ago. To learn more about the energy industry, real world solar economics, and Tom’s perspective on energy regulatory issues, listen up to this week’s Energy Show.
PS – the Kyocera and SMA rooftop solar system I installed for Tom back in 2003 is still working perfectly, with only 0.4% degradation over the last 15 years. PPS – his monitoring system is intermittent since his 15 year old computer that runs the software is on its last legs.
Copyright 2018 - The Energy Show, Barry Cinnamon. All Rights Reserved.
The electric utility industry is undergoing rapid change. There used to be two types of utilities: investor owned utilities (IOUs, such as Pacific Gas and Electric and ConEd) and municipally owned utilities (MOUs, such as LADWP and Silicon Valley Power). Now there is a third hybrid type, called a Community Choice Aggregation (CCA) utility.
IOUs work for their stockholders — striving to maximize their profits by charging the most they can for electricity, maximizing their net assets and minimizing their expenses (often maintenance). MOUs work for their local cities — and try to provide affordable and reliable power in their territory. Not surprisingly, electric rates at IOUs are almost always higher than rates at nearby MOUs. Because IOUs profit by installing their own solar and storage systems and maximizing their own sales of electricity, they do not look favorably on homeowners and businesses installing their own systems. My biggest competitors for almost 20 years have been local IOUs.
CCAs offer the potential for lower electric rates for customers in their territory, without changing completely to a municipally-owned business structure. CCAs buy power from large solar and wind farms, as well as hydroelectric facilities. They then distribute this power over the existing utility lines. The existing utility bills customers and maintains the power lines, while the CCA essentially just charges customers for the energy they use. CCAs offer customers cheaper electricity, and they offer better economics to solar customers.
Silicon Valley Clean Energy (SVCE) is the new CCA serving most of the Silicon Valley area. My guest this week is John Supp, Manager of Accounts Services at SVCE. Please listen up to this week’s Energy Show as we talk about the operations, economics and effects that CCAs will have on both customers and the utility industry in general.
Copyright 2018 - The Energy Show, Barry Cinnamon. All Rights Reserved.
Over a million buildings in the U.S. have rooftop solar. These systems are extremely reliable: solar panels are guaranteed for 25 years, and inverters are guaranteed for 10-25 years. Our experience as a contractor since 2001 bears out the terrific reliability record of rooftop solar.
Nevertheless, when inverters are past their expected lifetime we upgrade them to new models. Often we are able to replace two smaller inverters with one more efficient large inverter. When rooftop systems get very dirty (generally in areas without regular rainfall) we provide cleaning services. And not surprising to anyone who has ever tried to troubleshoot a home networking system, our most common customer service issue is with internet-based monitoring. To that point, current cellular-based monitoring systems have been 99.9% reliable (the only problems we have ever had have been with very weak mountain-top cell service).
Like a 15 year old car that still runs, sometimes it makes good economic sense upgrading your solar system to the latest model. The same logic applies when considering an upgrade to a new solar system. Old panels were 14% efficient, and old inverters were 93-95% efficient. New panels have 20%+ efficiencies, and new inverters are up to 99% efficient. Moreover, because of our unreliable electric grid and transition to Time of Use electric rates, many customers are interested in upgrading to a battery storage system.
For more about upgrading your solar system for your business or home – including applicability of the 30% tax credit on new equipment – Listen up to this week’s Energy Show.
Copyright 2018 - The Energy Show, Barry Cinnamon. All Rights Reserved.
This week were talking about ten utility electric company myths and were going to debunk these myths, but first a little background. Electric utilities started in the U.S. in the 1880s. Thomas Edison came up with a way of generating DC power, and then George Westinghouse came up with a concept of AC power, which ultimately became the industry standard and grew rapidly. The fundamentals of the utility industry are you generate power in a central location with big power plants; originally coal fired, then oil, then gas, then nuclear, now solar. You then have transmission lines that transmit the electricity at high voltages over long distances. Then you have local distribution networks –those utility wires above and underground, and transformers that look like tin cans on utility poles, and these local distribution lines send lower voltage power to businesses and homes in the area. It’s a terrific industry, many innovations and it’s been a key part of our industrial economy’s growth. They deliver power safely, and relatively inexpensive in relation to what it used to cost –it is pretty affordable when you consider the alternatives, such as putting in your own wood burning generator --crazy.
But the thing is, the way we generate power and the way we can now store power, and the way we are using the technology is changing rapidly. The way we would store power even as little as ten years ago was we would build dams to store water, then run turbines to generate electricity as the water in the dam goes down. We can still do that but it is easier to store power in a battery.
Now that we have solar and wind power, as well as affordable energy storage we have to reconsider the role of utility companies. Because of changes in technology, we have less need for big utility companies that generate power centrally and transmit that power over long distances to our homes and businesses.
So where all this going is and what does it mean for homeowners and businesses? Listen up to this week’s Energy Show as we cover the top ten myths about utility companies that they use to justify their actions to ratepayers and competing industries like solar.
Copyright 2018 - The Energy Show, Barry Cinnamon. All Rights Reserved.
California continues to lead the country when it comes to clean and inexpensive energy. Here is an example – In May the California Energy Commission passed a new rule that goes into effect on January 1st 2020 and it’s a really big deal! This rule requires that new homes have a photovoltaic system sized to zero out their annual electrical use. The rule applies to all new homes, apartments and condos under three stories tall. The rule also includes an option to include an energy storage system. I’ve received a number of calls and emails from people both in favor of and against this new rule over the last few weeks. The things that I really like about this new rule is that new homebuyers will definitely save money. We’ve done hundreds of installations on new homes and it works out really well for the new homeowner. And here’s why –According to numbers from the California Energy Commission, which by-the-way, I actually think they are fairly conservative when looking at the benefits: The cost of a new system on a mortgage would be an extra $80 per month on a typical mortgage. And that’s without the tax credit. The monthly savings with current electric bills are estimated to be $40 per month. So the net monthly savings is $40 per month which equates to almost $500 per year. So every new home that has solar on it is going to come out $500 cash flow positive every year. It’s good for new homes and good for new home buyers, but it’s also good because I think it’s going to increase the awareness of solar on residential rooftops. 152
But, there are also some negatives about this new rule. Some people have a visceral reaction against mandates. They simply don’t want to be told what to do and this is something that is going to slightly increase the cost of a new home. Keep in mind, mandates exist because we are trying to help people. After all, seatbelts are mandated too. There are a lot of other things that go into your home like insulation, guarantees, and certain types of equipment. It’s all mandated and now solar is being mandated. It will increase the cost of a home and homes in California are already really expensive. So while it’s true that costs will go up a little bit, there will be positive net savings for each and every one of these new home owners.
To learn more about the details on this new ruling on solar and battery storage for new homes in California, Listen Up to this week’s Energy Show.
The Energy Show - Barry Cinnamon ©2018 - All Rights Reserved
On this week’s energy show were talking about the all electric future. We’ve had customers at Cinnamon Energy Systems come to us wanting to go 100% electric at their home. They want to get rid of their gas dryer and furnaces, put in more solar panels, use an electric heat pump, and many already drive an EV. This kind of transition is already happening. So what does it mean when our homes, businesses and most transportation systems and most industries primarily operate from electricity instead of the fossil fuels that have powering humanity since basically we discovered fire?
There is a steady trend of devices and appliances that are converting from fossil fuels to electric operation. All of the big energy users when you look at the economy, transportation, industry, residential and commercial electricity have all been generated by fossil fuels. Now, everything is going electric. I expect that this electric future for humanity will depend very heavily on both solar and wind in the near term because we know those technologies to be cost effective. There may be things like nuclear fusion or other energy generating technologies that might happen over the next ten to fifty years, but right now, my bet is on solar and wind.
So Listen Up to this week’s Energy Show to learn more about why this migration to an all electric future is underway and the economic decisions you should be considering now for your home and business.
The Energy Show - Barry Cinnamon © 2018-All rights reserved
What are the best solar panels – that’s the question we get all the time. The first thing you have to figure out how you define word “best”. Now the way I look at this is you look at solar panels that have the highest efficiency, that are the most cost effective, and are the most reliable. So you have to weigh those three factors. The first thing is all solar panels generate the same electricity on a per watt basis. Your appliances can’t tell the difference if you’ve got super panels made in the USA or the cheapest panels made somewhere in Asia. But there are clear cut differences in these panels in the efficiency, cost, aesthetics, installation costs and their availability. We also have distinctions that are somewhat objective like brand, quality, are they going to provide long term energy output. The thing about these subjective measures is they are not based on comparison data, objective studies or any independent laboratory testing. They are manufacturers claims so you have to be careful.
So which panels are best? To learn about key decision factors for selecting the best solar panels, please Listen Up to this week’s Energy Show.
The Energy Show - Barry Cinnamon © 2018-All rights reserved
Reducing E-Waste with Lou Ramondetta of Surplus Services Ours is a consumption economy: we buy electrical equipment, building materials, appliances, toys and innumerable ephemeral knick knacks. When these items no longer serve their purpose — or just become passé — we throw them out. They are almost never re-used and rarely recycled.
Ideally, we should recycle everything. Household waste streams are mostly recycled, But old electronics are the worst: think about that drawer of circa 1990s cell phones, box of 3.5” floppy diskettes containing precious data, or pre IP office phone systems that can still power up but are worthless without a dial tone. Unfortunately, this old electronic equipment is usually just thrown in the dump, becoming what we now call "E-waste.” Efforts are in place to prevent old solar panels from also becoming E-waste. Theoretically, the glass, aluminum, silicon and copper in the panels are extremely recyclable. But because of the 25-year durability of solar panels, there are few efficient ways to recycle, or even re-use, old solar panels.
There are a few new companies that are addressing the growing need to re-use or recycle E-waste. My guest on this week’s show is Lou Ramondetta, President of Surplus Services. Lou has been in the industrial, electronic and medical equipment industry for over twenty years, and is now working to recycle or — better yet, find a home for working but old electronics equipment. To learn more about how companies like Surplus Services are helping companies and local municipalities reduce and even zero-out their E-waste streams through repurposing of electronic equipment, Listen Up to this week’s Energy Show.
The Energy Show - Barry Cinnamon © 2018-All rights reserved
For over a hundred years our civilization has been getting electricity from centralized generation. This utility business model relies on remote power plants fueled originally by coal, oil and gas — and now increasingly by wind and solar.
But the development of inexpensive rooftop solar power over the past 20 years is changing this central generation paradigm. It is now cheaper for homes and businesses to generate their own electricity on their rooftop, and only stay connected to the utility for night time power. These Distributed Generation (DG) solar power systems are connected on the customer’s side of the meter, or referred to as Behind the Meter (BTM) from a utility’s perspective.
Utilities generate their profits by selling power, as well as owning the power plants and utility power lines. When customers generate their own power, utilities lose revenues. Moreover, when customers pay for their own solar generating systems, utilities do not get to own additional generating assets - further reducing their profits. This loss of revenues and profits is disrupting the conventional Investor Owned Utility (IOU) business.
Utilities claim that there are costs being shifted from solar customer to non-solar customers. This cost shift argument is nonsense, since in reality the utilities are trying to regain their lost profits from solar customers by increasing rates for everyone else. Think about it: since utility customers are going elsewhere for the utility’s product (electricity), utilities are raising prices for everyone else. Nice work if you can get it.
The trend towards BTM solar (and now battery storage) is inexorable as these technologies continue to get cheaper. The aptly named Institute for Local Self Reliance (ILSR) focuses on these technology and sociological transitions. Our guest on this week’s Energy Show is John Farrell. John directs the energy program at ILSR and is best known for his research and papers on economics and benefits of local ownership of decentralized renewable energy. John is one of our best thinkers and communicators on this subject, so Listen Up to this week’s Energy Show for his commentary on the superior economics of Behind the Meter solar and storage.
The Energy Show - Barry Cinnamon © 2018-All rights reserved
This week we’re talking about battery storage system safety. But first, a brief digression. As a contractor, the biggest safety concern that I have for all rooftop solar and battery systems is not necessarily with the solar panels or the batteries, but with fall protection. It’s an OSHA regulation that all workers must be secured with roof anchors and proper harnesses when working on rooftops. So make sure your solar contractor installs roof anchors during your installation so the people working on your roof are safe. Back to battery safety…
Look around: there are batteries everywhere. 120 years ago we started with batteries in our cars and flashlights. Now just about every portable device we have requires batteries: cars, laptops, phones, entertainment systems, toothbrushes and wacky Internet Of Things devices. Fortunately, with the proliferation of electric vehicles, the prices for large-scale battery storage systems have declined substantially. We’re now at the point at which in many locations it is cost-effective to install a home or business battery system to avoid high peak electricity costs -- and get the added benefit of backup power if your utility is unreliable.
Batteries pack a lot of energy in a small package -- but not as much as conventional fuels. The energy density of a standard alkaline battery is 0.14 kWh/kg, and the energy density of a lithium ion battery is 0.5 kWh/kg. Compared to explosive gasoline (13 kWh/kg) and uranium (23 million kWh/kg), stationary batteries used in buildings are extremely safe. Moreover, circuitry required by safety agencies (UL, National Electrical Code) makes it almost impossible for these batteries to burn or explode -- even if they are damaged or misused.
Nevertheless, the solar and battery storage industry takes safety issues related to battery storage systems seriously. Listen Up to this week’s Energy Show to learn about the built-in safety provisions in residential and commercial battery storage systems -- as well as the fire safety, transportation and worker training required for their safe installation.
The Energy Show - Hosted by Barry Cinnamon
We’re talking about hot water this week. No — I’m not in trouble with my local utility again -- just discussing the best ways to heat water for your home. Our focus is on domestic hot water (DHW). This is hot water that you use for your kitchen, bathing and laundry. In the U.S., the average home uses about 68 gallons of hot water a day, with huge variations based on the number and age of occupants in the home.
Taking a step back, I counted six basic ways that people have been heating water since humans discovered fire. Deliberate heating started with a pot on a campfire (or with hot rocks to boil water). Then we used solar thermal to heat water in a blackened container (and we are still using solar thermal systems today). Fossil fuels (coal, oil and natural gas) were then used starting in the 1800s in boilers to heat water (the latest insulated tank technologies use high efficiency condensing gas boilers). In the 1900s we started using electric heating elements in hot water tanks. Flash or pass through hot water heating systems - powered by electricity or natural gas — completely eliminate the hot water tank, thereby reducing standby losses. But the current champions for DHW efficiency are the new heat pump hot water heaters. These systems have efficiencies in excess of 200% since they extract ambient heat from surrounding air (essentially cooling the air), and use this heat to increase the water temperature. I was pleasantly surprised to see that these heat pump systems have become much more reliable and cost effective.
On this week’s Energy Show we will review each of the common technologies used to heat water to help you decide what kind of DHW heating system makes sense for you the next time your tank wears out (BTW, according to NREL the average lifespan of a hot water tank is 13 years).
We often talk about smaller solar power systems on homes or commercial buildings but on this week’s Energy Show we are talking about gigawatt scale solar installations, and here is the logic --solar panels continue to get cheaper, panels are getting more efficient, and by the same token, for whatever reason, electricity from the utility companies keeps getting more and more expensive. So it’s no surprise that we are now seeing gigawatt scale solar installations to take advantage of these economies of scale and less expensive electricity.
When I started doing PV installations back in 2001, the biggest projects were about 5 MW. Just over the past couple years I’ve seen 500 MW installations go in here in the US and there is several 1,000 MW (a gigawatt) installations in India and China.
Now there is gigawatt plant construction underway in the US and to put these projects in perspective, it’s twice the capacity of most natural gas plants, it covers about ten square miles, have over three million solar panels, and employee thousands of people during construction.
So to talk about projects of this size, my special guests on this week’s Energy Show are Mark Cox and Shola Ashiru of New Energy Fund II, a private equity investment company.
Battery storage is roughly where the solar industry was in the early 2000’s. It’s a tiny market now but it is exploding and the technology is evolving rapidly. There is money saving potential for customers but there are risks for incumbent energy providers who are pushing back.
The standards for battery storage are changing like quicksand and investor funds are pouring in to take advantage of this inevitable market. The rapid “hockey stick” growth that we are seeing in the energy storage industry is likely to be even more accelerated than the growth of the solar industry.
All the pieces are in place for a number of successful companies throughout the storage value chain, but as with the solar industry, there is going to be some spectacular train wrecks along the way as well as some companies that just do not have the staying power to succeed.
On this week’s Energy Show, we talk about the following eight mistakes that companies in the solar industry made that hopefully storage companies can avoid:
Mistake #1: Constraints on critical upstream components (Li or Co = Si?) Mistake # 2: Live by incentives and die by incentives Mistake # 3: Releasing half-baked products Mistake #4: Ignoring software Mistake #5: Assuming electricity rates will always go up Mistake #6: Not paying enough attention to safety issues Mistake #7: Selling commodity components, not bankable systems Mistake # 8: Inevitable black swan events
Public policies have a tremendous influence on the energy we use, as well as the condition of our environment. State and Federal legislators make these policies with input from private citizens and businesses. The solar industry quite frankly has thrived with policies in favor of clean renewable energy, and it’s no accident that California is a leader in solar and clean renewable energy.
The Silicon Valley Leadership Group (SVLG) helps advocate for favorable business and citizen policies in Silicon Valley and they have made a tremendous impact not only in California but also in Washington DC.
Listen up to this week’s Energy Show where we speak with Tim McRae, Vice President of Energy at the Silicon Valley Leadership Group. Tim is an energy policy expert and an environmental lawyer. He helps Leadership Group Members define and carry out energy policy, programs and events covering issues like energy supply, grid modernization and reliability, and demand side solutions.
Solar is clean and renewable and cheap. So more solar is better for everyone…except your local utility. Keep in mind that utilities generate their profits from selling electricity and building generation, transmission and distribution assets. When electricity customers install more solar, utilities make less money. Unfortunately, utilities have the political clout to enforce their monopoly on customers who would otherwise prefer less expensive rooftop solar. The biggest battles are emerging in relatively mature solar markets.
Over 15% of residential customers in some areas of Hawaii have rooftop solar. As a result, Hawaii is the first “test case” in the U.S. for high penetration solar. Faced with this loss of profits, the Hawaiian utilities clamped down on new solar installations by capping net metering, raising solar-specific rates, and in some cases simply prohibiting installations. Instead of upgrading the local grid to handle these two-way power flows efficiently, their knee-jerk reaction has been simply to limit solar. Their rationale for these limitations is questionable at best, especially at these still low penetration levels.
The impact on the Hawaiian solar market has been severe. Installations have dramatically slowed down and solar companies have gone out of business. The Solar Survivors (who have not been kicked off the island) are migrating to install battery storage systems which are compatible with new utility solar limitations, albeit at less favorable economics.
My guest on this week’s Energy Show is Marco Mangelsdorf, CEO of Provision Solar on Hilo. Marco has been installing solar since 2000 – and has an abundance of insights and advice for solar installers and customers throughout the U.S.
Most people know what an electric grid is -–basically it's power generated centrally by the utility companies from a variety of energy sources like oil, gas, nuclear, coal, and then transmitted at high voltages via overhead and sometimes underground transmission lines to local substations where the voltage is reduced down to the distribution voltage level and distributed over power utility lines to homes and businesses.
It’s called a “grid” because there is a network of wires that move the power around from node to node –basically a combination of power source, wires and controls. A micro-grid is the same concept but on a much smaller scale. One example of a microgrid is a complex of buildings on an island. This complex of buildings may have one outbuilding that has a central power plant which almost always used to be powered by diesel. Now many are solar with batteries and have also have a backup generator, often powered by diesel. So these power plants have a combination of solar diesel and maybe wind and sometimes batteries, and then they have wires going from this power plant to power multiple buildings on the island. Another example of a microgrid is one you might have in your pocket. Think about a cell phone. It’s got a battery, sometimes a backup battery, and you might have a mini solar charger. Those thinks are a microgrid.
So we have different scales of microgrids, but why so much interest in microgrids lately?
Listen up to this week’s Energy Show to learn more about microgrids and the importance they are playing in the changing landscape of central and distributed energy.
Solar and Energy Storage System Engineering with Josh Weiner of SepiSolar by Barry Cinnamon
This week’s show is about TAXES! I know, try to contain your excitement. It’s been 32 years since President Reagan pushed through the last comprehensive tax reform bill.
The Tax Cuts and Jobs Act of 2017 makes similar huge changes in the ways that individuals and businesses pay their taxes. These tax changes are going to have impacts throughout the economy and basically impact everything businesses and individuals do regarding economics.
So join us on this week’s Energy Show, as we discuss what the tax changes mean for solar for your home, solar for your business, and solar financing.
Energy efficiency in our homes has improved steadily over the millennia. Now while I’m counting a cave as a home, luckily we no longer have to sleep on the floor of a smoke filled cave. But even a home built 25 years ago are not as energy efficient as current homes.
So on this week’s Energy Show we look at home energy efficiency from two perspectives. One, what are the technologies that should go into a brand new home so you can spend less money on energy? And second, how can you improve your existing home?
Regardless of your home energy efficiency budget, Listen Up to the Energy Show to get tips on how you can save money on your home energy costs.
Businesses use leasing to finance their buildings vehicles and equipment all the time. The key advantage of a lease is businesses can reduce their operating expense purchasing and owning assets and without taking on personal debt.
Leases also make sense for commercial solar and energy storage installations. So my guest this week is Stan Fishbein with Cleanview Capital. CleanView Capital is an equipment finance company specializing in making ownership of clean energy systems affordable and profitable for commercial and industrial companies nationwide.
Listen up to this week’s Energy Show, as Stan shares his insight on commercial solar and energy storage project leasing, and how Cleanview Capital structures their leases to help customers reduce cash flow and maximize deductions.
Many solar contractors are getting into the battery storage installation business. When I think about it, it’s like the early days of solar circa 2000, there’s a lot to learn, and a lot to get excited about but the equipment is still in at the early stages, so it takes time to design and install these systems.
Nevertheless, many of the integrated systems that are out there are reliable and most importantly, because there is high electric rates, backup power needs, and some good incentives, businesses and homeowners can save money now.
Listen up to this week’s Energy Show as we go into the details behind a successful battery storage installation.
The economics of energy have changed drastically over the past dozen years because of new energy generation technologies like wind and solar and new energy saving technologies like heat pumps and Electric vehicles, LED lighting and lithium-ion batteries. The combination of these new technologies to generate, store and the way we consume electricity has changed. So Listen Up to this week’s Energy Show as we talk about 10 Energy Saving Myths.
My guest on this week’s Energy Show is Neil Maguire, CEO of Adara Power. Adara is a Silicon Valley company that integrates battery and inverter technology with software to reduce peak demand charges, maximizes the value of net metering and also provides backup power.
From Solar Thermal to Integrated Battery Storage - Interview with Jeff Brown by Barry Cinnamon
solar, energy, the energy show, battery backup, battery storage, commercial battery storage
Copyright 2017 - The Energy Show, Barry Cinnamon
President Donald Trump is on a roll when it comes to Executive Orders and new regulations that apply to energy and the environment. Unfortunately, almost all these Executive Orders and regulation changes are bad for the environment, and will likely result in more expensive and less reliable energy.
We looked back over the last ten months and tallied up just seven of Trump's energy actions that are terrible for the environment and are not helping to shape US energy policy in a positive way:
Killing the Clean Power Plan Changing utility pricing policies to favor coal and nuclear fuels Providing huge loan guarantees to nuclear power plants Relaxing vehicle mileage standards Opening up more federal lands to fossil fuels Approved the Dakota Access and Keystone pipelines Exiting the Paris Climate Agreement When we look at the sources of greenhouse gas in the U.S., 29% comes from generating electricity -- mostly from coal plants. The second biggest source of emissions (27%) is from transportation -- mostly gas and diesel. The third largest source is industrial (21%). Only 12% of greenhouse gas emissions come from the residential and commercial sector -- mostly heating and air conditioning. Lastly, agriculture produces 9% of GHG emissions. Clearly, a clean energy policy that focuses on reducing greenhouse gases from the largest offender (electrical generation) is the best policy for our environment.
Taking a step back -- while being President is not an easy job – it is clear that President Trump has a penchant for blowing things up. So far he’s decimated clean air regulations at the EPA, instructed the Interior Department to accelerate drilling and mining on public lands, changed rules at the Department of Energy to prop up the struggling coal and nuclear power companies. These actions in aggregate are appalling – and he’s not even a year into his first term.
Fossil fuel companies are the clear beneficiaries – at the expense of the growing clean energy economy, as well as everyone who breathes. Former Governor Schwarzenegger explains these problems succinctly in this video.
For more about this deteriorating situation -- and some positive suggestions -- please Listen Up to this week's Energy Show on Renewable Energy World.
Solar Tariffs Increasing Solar Panel Prices October 9, 2017Barry CinnamonEnergy Politics
The solar industry is likely headed into a recession. Solar tariffs that will double the price of panels are almost inevitable — and President Trump is going to make the final tariff decision. The President’s positioning on this issue does not bode well for the solar industry: he is on record for supporting US manufacturing, he has called for tariffs on Chinese manufactured products, he is a supporter of the fossil fuel industry, and he has been dismissive of solar and wind power. As a result, it is very likely that the White House will implement solar tariffs with no regard for the harm these higher prices will cause to the rest of the solar industry.
Solar panel supplies have already diminished as installers have positioned to purchase inventory before the solar tariffs go in place. This increased demand has already pushed panel prices up significantly. With these uncertain trade implications for overseas panel manufacturers, shipments of solar panels to the US have ground to a virtual halt. We are not likely to see new volume shipments commence (at post-tariff prices) until sometime in the first quarter of 2018.
Historically, tariffs on overseas products have rarely restored the vitality of domestic manufacturing. Rather than taking a protectionist stance on trade, the US would benefit by implementing incentives to make manufacturing in the US more attractive — in essence, investing in a robust US solar manufacturing industry.
For more insights into the likely impact of these solar tariffs, please Listen Up to this week’s Energy Show.
Over the past few months we’ve experienced a solar eclipse, several devastating hurricanes, another under-construction nuclear plant shutdown, and a backwards-looking Department of Energy Grid Reliability study.
The performance of our electric grid during the eclipse demonstrates how well a flexible, well-managed grid can handle predictable events. These severe weather events show how vulnerable our electric grid really is, how dependent we as a society have become on electric power, and how valuable some form of backup power is for homeowners. The nuclear plant shutdown clearly shows that nuclear power cannot compete against cheap natural gas.
Weaving these circumstances together, one could come to the conclusion that the electric grid of the future should be more modular (distributed); could effectively rely on a combination of wind and solar and storage; and could take advantage of smaller, high efficiency gas turbines for peak afternoon power demands and night-time power. Not only would this grid of the future be cleaner and cheaper, but it would also be more resilient to local weather and human-caused disruptions.
Solar contractors and homeowners are not at 30,000 feet debating fundamental energy policy and grid strategy developments. Instead, they are on the ground in need of inexpensive electricity and backup power when the grid fails. If you are interested in practical solutions to these problems (sorry, I have no way of rationalizing the DOE’s Grid Reliability Study), Listen Up to this week’s Energy Show on Renewable Energy World.
Here’s a solar industry secret: all solar panels generate the same amount of electricity on a per watt basis. In other words, twenty 300 watt panels will generate exactly the same amount of electricity as twenty-five 240 watt panels. Indeed, there are objective differences in panel cost, efficiency, aesthetics and ease of installation — and now with the upcoming tariff, even availability. But differences such as brand, assembly quality, country of origin and projected degradation rates are much more subjective since they are based on manufacturer’s claims and not based on objective third party studies.
Solar panels pretty much all look the same, use the same basic construction techniques, have similar warranties, and are built with the same type of solar cells. I used to consider company size as a good indication of quality and industry staying power. But I was wrong. I looked at ten years of data, and none of the top ten solar manufacturers from 2001 are still in business in the U.S. today. 51 of the top ten companies from 2001 to 2010 went bankrupt, sold out, or were no longer in business in 2010. Country of origin is no indication of quality. And bizarrely, I have seen an inverse relationship between the claimed length of product warranties and the actual durability of equipment in the field. In other words, companies that claimed to have the longest or best warranties were often the first ones to disappear. I expect similar patterns over the next 10 years.
So how does a consumer decide which solar panels are best? Find a solar contractor who has been in business for a long time and trust their advice. These experienced contractors have seen equipment suppliers come and go. They select panels, inverters and mounting systems that are reliable from companies they trust. They strive to keep future maintenance work to an absolute minimum, and train their employees not to cut corners. For more practical tips about selecting solar equipment for your roof, Listen Up to the Energy Show.
Large companies are predominant in most industries. But when it comes to rooftop solar installations, small is beautiful. Although there have been several large national-scale solar installers, in the aggregate the smaller, local companies dominate. As with most other construction businesses, local companies generally understand their local markets better and have lower overhead -- enabling them to provide better customer service at lower prices.
On this week’s Energy Show we have the pleasure of speaking with Vince Battaglia, the CEO of Renova Solar. Renova started as Vince’s MBA thesis; eleven years later Renova is now the leading solar installation company in the Coachella Valley. Like many other local solar installation companies, Renova has expanded its residential solar installation business to include commercial installations, system maintenance and battery storage.
Granted, the Palm Desert area is blessed by an abundance of sunlight and high electric rates – a combination that is perfect for a thriving solar business. But dealing with the ups and downs of the Solar Coaster is challenging. For more about the challenges inherent in building a profitable local solar business, Listen Up to this week’s Energy Show on Renewable Energy World.
Millions of Americans were using cereal boxes, telescopes, and flimsy plastic solar viewing glasses to witness the Solar Eclipse on August 21. But for workers in the solar industry — as well as homeowners and businesses who are considering rooftop solar – an eclipse of the solar industry itself looms on the horizon. The International Trade Commission (ITC) will be deciding in September whether or not to place tariffs on imported solar panels. Since virtually all solar panels are imported, the tariffs they are considering will effectively double the price of standard solar panels. In advance of these proposed tariffs, almost all available inventory of solar panels is being purchased by large installers. As we learned in economics 101, when demand goes up and supply is constrained, prices increase. Indeed, prices for popular rooftop solar panels have already increased by 20%. The tariff issue being considered by the ITC is complicated. On the one hand we want to build a robust U.S. solar panel manufacturing industry – which employed about 2,000 people at the end of 2016. On the other hand we want to continue the strong job growth in the entire solar industry – which employed 260,000 people at the end of 2016. Since the vast majority of U.S. solar workers are focused on installations, increasing the price of imported solar panels is likely to cause overall solar employment to decline for the first time ever. A decision to implement tariffs or other penalties on imported solar panels is likely to be made by President Trump towards the end of the year. It is my hope that his decision carefully considers ways to continue growth in the solar industry, while at the same time developing a long-term plan to improve U.S. manufacturing. For more about the upcoming ITC case and its implications on the solar customers and the industry as a whole, Listen up to the Energy Show on Renewable Energy World.
With much higher volume manufacturing, prices for solar panels have come down tremendously over the past 20 years — from about $1,000 each to less than $200. But solar panels are still very time consuming to install on a roof in a way that will last 25+ years without leaks. The majority of this rooftop work is on the flashings, roof hooks, and special roof mount components.
A few companies specialize in manufacturing solar roof mounts. As a solar contractor I like to try out new products in an effort to reduce my installation costs while still maintaining high quality installations. One of the leading roof mount companies is SolarRoofHook, with offices in Livermore, California and Rock Hill, South Carolina.
My guest on this week’s show is Rick Gentry, Executive Vice President at SolarRoofHook. Over the years Rick has been instrumental in developing new roof attachment products that are both reliable and easier to install. Please join me on this week’s Energy Show on Renewable Energy World as Rick explains the ways these roof mounts prevent leaks through the roof, the corrosion-proof fasteners that are used, and key considerations that homeowners and contractors should keep in mind when selecting roof attachment products.
Our local electric grid is not up to the 21st century demands of EVs, more air conditioning requirements, heat pumps instead of natural gas furnaces, and rooftop solar. In general, we have plenty of power, especially with inexpensive electricity from solar and wind. But this power, often generated in remote locations hundreds of miles away from customers, is not getting to the homes and businesses that need it.
There are two solutions to modernizing overloaded local grids. The “business as usual" solution is to pay the local utility for upgrades that include bigger transformers, wiring, control systems and battery storage. Unfortunately, ratepayers get stuck with higher electric bills for these upgrades. A much better solution is to encourage homeowners and businesses to install their own solar and storage systems.
Rooftop solar systems already have paybacks in the 4-6 year range. And new battery storage technologies are coming down in price so rapidly that they make good economic sense in many locations. So if you have encountered any power failures recently at your home or business -- and you are wondering what can be done about this problem -- Listen Up to this week’s Energy Show on Renewable Energy World.
Copyright 2017 Spice Solar.
In spite of the fact that it’s neither fast nor furious, the Chevy Bolt is currently the most practical and economical Electric Vehicle. Hybrids (like the Volt and Prius) and pure EVs (like the Bolt and Teslas) have seen phenomenal growth over the past decade. Their popularity will continue to grow as battery costs decline and EV charging infrastructure improves.
The two most important considerations for EV drivers are up-front cost and range. At about $30k (with the $7,500 federal tax credit) and 238 miles of EV range, the Bolt excels on both of these dimensions. The only car that comes close is the upcoming Tesla Model 3 – which is expected to have similar pricing and range. Compared to the Tesla Model 3 the Bolt is more spacious and less luxurious (Car and Driver calls it “dweeby”). But the Bolt is shipping now in volume, and is very likely to become the best-selling EV in the U.S.
EVs are clearly not for everyone. Where gas is cheap or electricity is expensive, a number of ordinary economy cars are more economical than the Bolt. And with gas engines there is no “range anxiety” that concerns almost every EV driver. Nevertheless, the benefits of EVs with 200+ miles of range that can be fueled by clean and inexpensive solar and wind are compelling. There’s no doubt in my mind that our grandchildren will be zipping around in cars that look more like the bubble cars in Woody Allen’s “Sleeper” than the rolling living rooms that have been on the roads for the last 75 years. For more about the inexorable trend toward EVs, Listen Up to The Energy Show on Renewable Energy World.
There’s no doubt in my mind that the home of the future will be solar powered. Intuitively it would be great if the roofing material provided that solar power. But historically it’s been a challenge to combine efficient solar cells with a durable roofing material at an affordable price. Tesla’s new solar roof tiles hope to solve these challenges.
Without a doubt Tesla’s solar tiles are the best looking solar roofing products I have seen. Using Tesla’s solar roof calculator and information for a 2,000 square foot home in California with a 2,500 square foot roof and $200 monthly electric bill, here is how their roofing tiles compare to an ordinary rooftop solar panel installation:
Tesla Roof Tiles Ordinary Solar Panels Up front cost $58,500 $17,556 Tax credit $7,020 $5,267 Net cost $51,480 $12,289 Annual savings $2,002 $1,997 Simple payback (years) 26 6.2
Of course I expect the cost for Tesla roof tile installations to come down in the future, so their economics are likely to improve. Nevertheless, at these high prices it is clear to me that Tesla really has a product that only makes sense for new construction on high end homes. For the average homeowner considering solar, by far the best choice is a traditional rooftop solar power system. For more about Tesla’s solar roof tiles, Listen Up to this week’s Energy Show on Renewable Energy World.
Many industries have boom and bust cycles as manufacturers try to adjust supply to customer demand. These challenges are accentuated in the solar industry because customer demand is influenced by changing incentives (rebates and tax credits), government policy (remember the EPA?) and rapid technology change. Industry participants fondly refer to these ups and downs as the “solar coaster.” It is unlikely that the solar coaster will flatten out to a very smooth ride anytime soon. Nevertheless, there are solid business practices that help companies and customers navigate these inevitable solar ups and downs.
Installers that operate their business conservatively and concentrate on maintaining happy customers are most likely to achieve long-term success. Like many residential construction businesses, solar installers rely on referrals to keep a steady flow of business. These referrals are the least expensive method to acquire new customers – a benefit that also helps keep overall selling prices down. Unlike many other industries, there are no economies of scale in the residential solar installation business. As a result, local and regional companies with low overheads are the most likely to survive the next big bump in the solar coaster. And companies that try to grow too fast often flame out.
The good news is that solar technology is extremely reliable – even if a manufacturer is not around it is very likely that their equipment is still working. Many local installers continue to provide cleaning and maintenance services for systems that are 20+ years old. The systems are still working and the customers are still happy. For more about the continuing saga of the solar coaster, Listen Up to the Energy Show on Renewable Energy World.
In a world full of alternative facts, it should come as no surprise that the EPA no-longer stands for Protecting the Environment. On January 20th, 2017, only a day before millions of Americans took to the streets to march in support of climate action, the EPA made major changes to their website. According to their public statement, the EPA website would be “undergoing changes that reflect the agency’s new direction under President Donald Trump and Administrator Scott Pruitt."
The mission of EPA is to protect human health and the environment. It’s worth repeating the EPA’s purpose, from their website:
all Americans are protected from significant risks to human health and the environment where they live, learn and work; national efforts to reduce environmental risk are based on the best available scientific information; federal laws protecting human health and the environment are enforced fairly and effectively; environmental protection is an integral consideration in U.S. policies concerning natural resources, human health, economic growth, energy, transportation, agriculture, industry, and international trade, and these factors are similarly considered in establishing environmental policy; all parts of society -- communities, individuals, businesses, and state, local and tribal governments -- have access to accurate information sufficient to effectively participate in managing human health and environmental risks; environmental protection contributes to making our communities and ecosystems diverse, sustainable and economically productive; and the United States plays a leadership role in working with other nations to protect the global environment. The most apparent change to the EPA website is that the entire section dedicated to Climate Change was eliminated. No more scientific information, no more Climate Change problem … despite nearly irrefutable scientific evidence that climate change is due to human activity. Their new policies are designed to favor incumbent energy industries without regard to the environment, and are clearly in conflict with the defined mission of the EPA.
Temporarily there is still an archive of the old EPA website at https://19january2017snapshot.epa.gov/climatechange_.html. This temporary archive site maintains much of the EPA’s valuable scientific information, as well as the clear ways in which the Climate Change problem and solutions are explained. For more about the EPA’s climate change denial, please Listen Up to this week’s Energy Show on Renewable Energy World.
http://www.spicesolar.com/energy-politics/remember-the-epa/
Copyright © 2017 Spice Solar, All rights reserved.
Since the sun does not shine at night we need a way to store daytime-generated solar energy. Net metering is an elegant and 100% efficient way to shift excess solar power, but that system will not work at high solar penetration levels. Never mind the fact that utilities are loath to allow their customers to generate electricity for less than it costs them to deliver this power.
As a result, battery storage is on the minds of almost all new solar customers. Storage technology, incentives, favorable electric rates and control software are all evolving rapidly. There are currently about a dozen companies with battery storage systems designed for use with rooftop solar. Like peanut butter and chocolate, many solar companies are starting to offer battery storage systems along with their solar systems.
My advice is to proceed with caution. Even though off-grid battery storage systems have been available for years, we are at the very early stages of grid-tied solar combined with battery storage. From a hardware standpoint, battery technology is evolving rapidly, and new inverters/charge controllers are being developed. Perhaps more importantly, software that will efficiently interact with solar, batteries, the grid and your home energy consumption still has limited functionality. For more about the practicalities of home battery storage, Listen Up to this week’s Energy Show on Renewable Energy World.
PACE financing, or Property Assessed Clean Energy, started out about 10 years ago as a financing mechanism for residential solar. Basically, the cost of the solar system is repaid over a 5 to 20-year timeframe as a part of the building’s property taxes. The benefits are that the property serves as security for the loan, there is almost no repayment risk (everyone must pay their property taxes), interest is deductible, customers are almost always cash flow positive in the first year, and the property can be transferred more simply than if there is a standard solar lease or PPA.
These advantages also apply to PACE loans for commercial solar installations – with two extra benefits. First, many commercial PACE loans are structured in such a way that the tax and depreciation credits are front weighted so that commercial property owners are very cash flow positive in the first few years. Second, many commercial leases are triple net — in other words the tenant pays for utilities, taxes and maintenance (in addition to utilities). If there is a solar PACE loan on the property, the tenant gets the benefit of lower electricity costs and automatically pays for the slightly higher tax assessment from the solar PACE loan. Voilà – no cost to the building owner.
My guest on this week’s Energy Show is Brandon Deno, Vice President of Solar at Clean Fund. Clean Fund is the leading provider of PACE loans for commercial buildings. Please Listen Up to The Energy Show on Renewable Energy World as Brandon explains the ways in which solar developers and building owners can take advantage of PACE loans for their commercial properties.
When someone gets a new rooftop solar installation, the second question they always ask is “how often do I need to clean my solar panels.” We’ll answer that question on this week’s show — taking into account the different effects of rain, dust and electric rates (BTW, the first question people always ask is “how do I read my electric bill;” but that’s a topic for another show).
Rooftop solar panels get dirty primarily from wind-blown dust and pollen. Birds are usually not a problem unless your last name is Hitchcock and you live in Bodega Bay. As panels get dirtier, their output declines. A small amount of soiling — say a light dusty film — may only cause a 5 percent output decline. However, when panels get very dirty — perhaps in an agricultural area or location that does not get regular rainfall — the output decline can be greater than 20 percent. A good heavy rainstorm will usually wash away most of the accumulated soiling.
I use the term “usually” because on panels that are tilted at about 5 degrees or less, the rain may leave a puddle of muddy debris along the lower edge of the panel. When this puddle dries, sometimes a thick layer of dirt accumulates along the lower row of cells (sometimes moss and weeds may even grow in these areas). Depending on the design of the system, this small accumulation of dirt can cause a very significant decrease in output.
So the answer to the question: “how often should I clean my solar panels” really depends on five factors: your location (does it rain regularly or only during certain months), the tilt angle of your panels (steeply tilted panels tend to stay much cleaner than panels that are close to horizontal), the amount of wind blown dust, your electric rate (if your electric rate is high then it is more worthwhile to clean your panels), and the cost to clean your panels. For more about cleaning your solar panels, please Listen Up to this week’s edition of the Energy Show on Renewable Energy World.
Video killed the radio star – just as natural gas, wind and solar are slowly but surely killing the nuclear power industry (we’re already saying good bye to coal). Unfortunately, the venerable Westinghouse Electric Company filed for Chapter 11 bankruptcy on March 29th 2017, dragged down by huge losses in their nuclear power plant construction business. But the story about the demise of Westinghouse is more nuanced.
George Westinghouse founded the Westinghouse Electric Corporation in 1886. He teamed up with Nikola Tesla to develop and promote AC power, instead of the DC power infrastructure preferred by Thomas Edison. By using transformers to step up voltages for long distance power distribution and then step down voltages again for home use, the economics of AC power turned out to be much more favorable than DC power (the geeky reason is explained by Ohm’s Law and conductor sizes). To this day the world’s electrical system is still almost exclusively based on AC power. Over a 100-year period the Westinghouse Electric Corporation expanded into appliances, locomotives, entertainment – and even solar power (for many years Westinghouse held the record for solar cell efficiency).
Fast forward to the 1990s when the Westinghouse Electric Corporation came to the conclusion that their broadcasting subsidiary – the Columbia Broadcasting System (CBS) – had the potential to be more profitable than their manufacturing businesses. So they sold off all of their manufacturing operations, renamed the parent company as CBS, and licensed the Westinghouse name to leading companies in related market segments. Their nuclear business, which was named the Westinghouse Electric Company, eventually ended up as a subsidiary of Toshiba.
Toshiba expected to benefit from a renaissance in nuclear power, leveraging less expensive reactor designs and the need for carbon-free electricity. But three developments prevented this nuclear renaissance. First, the actual construction of these new reactor designs ended up being very expensive and time consuming. Second, nuclear power is still plagued by safety (Fukushima), nuclear waste and proliferation issues. And the final nail in the nuclear coffin is economic: electric power plants fueled by natural gas, solar and wind are much less expensive to build and operate, and can be constructed in several years – as opposed to several decades for a new nuclear plant. For more about the fate of Westinghouse and the nuclear power industry, Listen Up to the Energy Show on Renewable Energy World.
It may seem counter-intuitive, but you can have too many solar panels on your roof. With conventional net metering, your utility will not reimburse you at the end of the year if you produce more power than you consume. For example, last year my electric bill was -$46.86. Our roof has a 6kw solar system on it, but because we installed a new thermostat, LEDs and new windows, we generated a net credit with our utility last year. So I’m replacing my LEDs with old-fashioned incandescent light bulbs so I can use more power and get closer to a zero bill this year.
The number of panels you need is based on two factors: the available space on your roof and the size of your electric bill. A good installer will not take advantage of you by installing modules where there is a lot of shade or a poor north-facing orientation on a steep roof. Along the same lines, your installer should analyze your current electric bill and recommend the number of solar panels that will get you close to a zero bill.
Once you know these two boundary conditions – the number of panels that fit on your roof and the number of panels that you need to zero out your bill – you can see what size system fits in with your budget and method of financing. At the same time your installer should step you through the options for different levels of solar panel efficiency, module electronics (optimizers or microinverters), and changes in your future use of electricity (such as an EV or energy conservation measures). For more about determining the optimum size of your solar power system, Listen Up to this week’s episode of The Energy Show on Renewable Energy World.
It’s that time of the year…tax time, that is. Every year we get questions from customers about filling out their solar investment tax credit (ITC) form. Now, we are not tax experts (so check with your accountant), but the rules are pretty straightforward for the solar ITC.
Basically, every homeowner who installs a solar electric system or solar hot water system (not a pool heating system) gets a 30% tax credit on the total cost of their system. This tax credit only applies to the owner of the system, not if you have a solar lease or solar PPA. There is no need to file for the ITC if you have a lease or PPA since the corporate entity that owns your system has already collected the tax credit and depreciation benefits – reducing your monthly payments accordingly.
It only takes a few minutes to fill out the IRS “Residential Energy Credits” Form 5695. For documentation, all you need are copies of all the invoices that apply to the installation of your home solar system. For more about getting your 2016 solar investment tax credit, Listen Up to the Energy Show on Renewable Energy World.
Our sources of electrical power are quickly shifting. In 2016 there was 26 gigawatts of new electrical-utility capacity added in the U.S. Of this new capacity, 33% natural gas, 30% wind, 30% utility-scale solar (plus another 10% from rooftop solar), 5% nuclear, 1.2% hydro-electric, 0.8% biomass, 0.2% oil and 0.2% coal plants. With 70% from renewable sources, this is a colossal shift from the predominantly oil and coal power-plants that dominated the 20th century. Old technologies are losing steam (hah!) … are they still viable?
Utilities are tasked by Public Utilities Commissions in each state to provide electricity to consumers at “fair” rates, while at the same time maintaining a guaranteed rate of return to the utility (typically about 10%). Since natural gas, wind, and solar are the most cost-effective fuel source, it's no surprise that they have become favored by utilities. While solar and wind are favored for new power plants, there is still a long way to go before replacing all the existing power plants. Nevertheless, favorable economics for solar and wind are accelerating this transition.
One quick way to compare the economics of different power plants is to evaluate their thermal efficiency (the usable kwh energy generated by the plant divided by the heat energy consumed by the plant). Coal, oil, and nuclear hover at roughly 30% efficiency, and new natural gas plants run at 40% efficiency. For these fuels, 60 to 70% of the fuel purchased is wasted as heat. The reason the economics for solar and wind are so favorable is that – once the plants are built – their fuel (sun and wind) is virtually free. For more about utilities transition away from most fossil fuels towards wind and solar, listen up to this week’s Energy Show on Renewable Energy World.
The solar industry is one of our most obvious success stories. Our industry directly employs 261,000 people. We generate energy that is both clean and renewable. And we generate this energy at prices that are less than conventional utility power – as low as 6 cents per kwh. But the industry is not resting on its laurels: installation costs for residential solar will continue to decline (BTW, what’s a laurel?).
$1.50 per installed watt was the original target of the SunShot program for residential solar. I think it’s going to take many more years to get to these low installation costs – even getting to $2.00 watt on the average seems almost insurmountable to me. Not because of the hardware costs; these are continuing to decline. But because of the soft costs like labor, sales & marketing, financing and overhead. Nevertheless, $2.50/watt is a target that is within our sites over the next few years.
Please join me on this Week’s Energy Show on Renewable Energy World as I dissect the current cost stack for residential solar installations. We’ll particularly focus on the three most likely ways that these average installation costs will be reduced: higher panel efficiency, less expensive equipment and better component integration. But don’t hold your breath…overhead is more likely to go up than down.
The promise to homeowner’s is simple: install solar panels on your roof and save money on your electric bills. There are about 10,000 companies in the U.S that offer these solar installation services because they believe in both the economic and environmental benefits of rooftop solar.
While the vast majority of installers are ethical and dedicated to providing long-term benefits to their customers, like every other industry there are individuals looking to make a quick buck. Because the financing, energy savings and warranties for solar systems are complicated, homeowners can be misled. Hence the need for consumer protection measures.
The solar industry is doing a great job of self-regulating, and heading up these efforts is Tom Kimbis, the Executive Vice President and General Counsel of the Solar Energy Industries Association (SEIA). Please Listen Up to this week’s Energy Show as Tom talks about SEIA’s Consumer Protection and Ethics Committees, as well as SEIA’s “Consumer Guide to Solar Power” and Residential Disclosure Forms.
In January the DOE published their annual jobs report. The U.S. energy industry employees 6.4 million people. The largest two employment categories are oil extraction and solar, with solar growing the fastest among all fuel types. According to the DOE, by the end of 2016 there were 374,000 American’s employed at least partially by the solar industry. Paralleling the DOE study, the Solar Foundation recently released their own employment study indicating that 260,000 American’s working directly in the solar industry – one out of every 50 new jobs created.
Although the technology of solar generation is fundamentally different than fossil-generated electricity (lots of up front construction but free fuel) the breakdown of workers is very similar to other electric power generation sources. 37% of solar employees work in installation or maintenance positions, 26% in supply chain positions, 18% in manufacturing and 15% in professional services.
The majority of U.S. photovoltaic generation is utility-scale, roughly 28,081,000 MWh, compared to 16,974,000 MWh of distributed solar generation (note that this is energy generated, not capacity). However, in 2016, over half of the nation’s solar workers were spending the majority of their time working on residential solar. This imbalance reflects the fact that utility-scale generation typically produces more MWh’s per labor unit installed compared to distributed generation. On the other hand, residential and commercial solar provides more value to customers. Power generated at utility-scale facilities costs 5 cents/kwh, totaling $1.4 billion for this energy. Power generated on residential and commercial rooftops cost an average of 10 cents/kwh, but the savings to consumers were even greater at $1.7 billion.
So by all accounts, solar energy is a jobs engine. Although there may be environmental headwinds from the Trump Administration, there are no signs that the economics for solar-generated electricity will falter any time soon. Please Listen Up to this week’s Energy Show on Renewable Energy World as we delve into the technologies and market segments that make up the U.S.’s energy industry.
If you have an electric bill there are three basic ways for you to get your electricity from renewable sources. The most popular is rooftop solar; virtually anyone with a sunny rooftop can install a system. The second is with a Community Choice Aggregation (CCA) program, if available in your area. The third is from your utility, if they offer a renewable electricity option.
Some people are passionate about clean, renewable power -- but most people just want to save money. These three renewable power options require different up-front investments, and have different ongoing energy cost profiles. Rooftop solar requires a relatively big up-front investment, averaging about $15,000. But once you’ve made this investment your electricity cost is only about 7 cents per kwh, locked in for the lifespan of the equipment (typically 25 years). CCA programs strive to supply energy to residential and business customers at a slight discount to regular utility rates. They can provide this discount since they are not motivated to maximize their profits, and usually acquire power from new solar and wind facilities (which are less expensive than legacy utility power plants). Finally, many local utilities have an option for customers to buy renewable power, but they usually charge a premium for this power.
Often the selling price of electricity to customers bears little resemblance to its underlying costs. In my locale a homeowner can install a simple rooftop solar system for about 6 cents per kwh. The new CCA program offers renewable power at 1% less than the local utility. And our local utility offers renewable power for a slight premium. Listen up to this week’s Energy Show on Renewable Energy World so you can determine for yourself which renewable energy source best meets your needs.
We’re in the middle of winter – and there’s some serious precipitation. It’s snowing in much of the country, and California is finally getting a lot of rain. Although these storms are good for replenishing our water supplies, wind, rain and snow are the biggest causes of power failures.
Our society has become almost totally dependent on electricity. Not only for such necessities of 21st century life as cellphones, TVs and WiFi, but also for former necessities such as heat and hot water. Pilot lights in natural gas equipment are a thing of the past: most new furnaces, hot water heaters and stoves need electricity to operate. We can’t even depend on functioning fireplaces anymore; some new construction codes prohibit wood-burning fireplaces.
Understandably, people are even more interested in backup power these days – and many people expect that rooftop solar can provide usable power when the grid is down. For safety reasons, almost all solar power systems need reference power from the grid to operate. So from a practical standpoint there are only two options for home or business backup power: a generator, or a solar system with a battery backup powered inverter.
There’s no doubt in my mind that eventually almost every solar system will be equipped with battery storage. We are just beginning to see the first solar and battery storage systems that have done a reasonable job integrating cost effective hardware with functional software in a turnkey system. On this week’s Energy Show on Renewable Energy World we’ll talk about the pluses and minuses of these new battery backup power systems, as well as old-fashioned fossil fuel generators.
“Pigovian Tax.” If you know what this means, then you can skip this week’s Energy Show on Renewable Energy World. For everyone else (including me until I looked up the word) a Pigovian tax is a tax levied on an undesirable market activity to offset the negative effects of said activity. A tax on carbon is a Pigovian tax – hence the addition of this obscure word to our Renewable Energy World vocabulary.
Nobody likes to be taxed – especially the industries that are directly affected. However, sometimes vice taxes are a necessary evil in order to discourage bad behavior. In the case of taxing carbon usage, most economists have concluded this is the most effective way to reduce CO2 gas emissions. The European Union has implemented an effective carbon tax, and leads the world in reducing carbon dioxide emissions. But here in the United States, where the word “tax” can quite literally get you thrown into the Boston Harbor (with your chests of tea), we have been slower to adopt these changes.
But there continues to be momentum behind effective economic mechanisms to reduce CO2 emissions. To avoid the specter of increasing taxes, some states have implemented more business-friendly cap and trade programs. California’s cap and trade program, initiated in 2011, continues to reduce that state’s emissions, while at the same time directing the resulting proceeds back to the state’s transportation, clean energy, energy efficiency, natural resources and recycling activities. Listen up to this week’s Energy Show on Renewable Energy World as we talk about practical carbon tax options – in spite of the temporary political reluctance to do so in the U.S.
Home solar systems are pretty simple: put some solar panels on your roof, wire them up, get connected by your utility, and enjoy cheap electricity for 25+ years. But the technology and options can be confusing – especially as solar salespeople strive to point out differences in their products and services. I’ve watched customer’s eyes glaze over as I talk about the differences between poly and mono crystalline cells, string and micro-inverters, degradation rates and warranties.
The reality is that there is very little difference between equipment manufacturers. Solar panels are a commodity sold on a $/watt basis. Many of the solar panels get their cells from the same sources in Asia – just as different brands of gasoline are manufactured in the same refineries. As a result, two homes with the same total wattage of solar panels on the roof with the same exposure will have virtually identical annual energy production.
Listen up to this week’s Energy Show on Renewable Energy World as we talk about a simple way to compare solar quotes on a dollar per watt basis. We also discuss important home solar contract terms, inverter choices, monitoring, and the ways to pick a good installer.
Everyone makes mistakes – and I’ve certainly made my share of them. On this week’s Energy Show on Renewable Energy World we will discuss in detail some of the most common homeowner and installer mistakes that I’ve seen over the past 15+ years – as well as the actions we can take to do things right the first time.
The vast majority of solar installers are honest and ethical; they truly believe in their products and company. Nevertheless, there are some companies (and unfortunately rogue employees) who take advantage of customers. Here are a few of the solar mistakes I have observed during the sales and installation process:
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Poor installation practices - missed rafters, inadequate safety procedures, etc.
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Employees who are not properly trained or incentivized - compensation per kw, poor quality control, etc.
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Oversizing the system - panels in the shade, orphan panels, stuffing the roof, etc.
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Overestimating system output or dollar savings – easy to do by fudging inputs for design and proposal software
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Financial or contractual monkey business – poor explanations of actual contract terms, escalation rates, warranty obligations, etc.
Since solar is still relatively new, what customers learn about solar technology, installation processes and savings comes from the solar salesperson. With a little bit of education and caution, homeowners can avoid these common mistakes:
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Comparing solar estimates based on total costs -- not the more accurate $/watt basis
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Lack of understanding of solar financing options and terms – escalation rates, buyouts, warranties, etc.
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Getting pressured into buying immediately – the “drop close,” special pricing, artificial incentive deadlines, etc.
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Hiring an inexperienced or improperly licensed contractor -- usually not from a referral
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Installing a system that is undersized for current or near future needs – adding on to a system at a later date is usually expensive
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At the center of our solar system, approximately 92.96 million miles away, is a nuclear power plant capable of powering the entire globe. We know it by its most common name: our sun. The sun's diffuse energy can be used to heat water in thermal solar panels, or can be converted to electricity with photovoltaic (PV) panels. Since our modern society is moving towards using electricity for heating and cooling, transportation, communications, appliances and even entertainment, PV panels are the most expedient way to convert this solar energy to usable energy.
PV-generated electricity used to be expensive. But no longer. A typical solar panel generates about 400 kwh of electricity per year which, at $0.25/kwh (the average electric rate in California), amounts to $100 of electricity. With 20 solar panels on your roof you can reduce your annual electric bill by $2,000. Since each panel costs around $500 to install (including equipment and labor), the payback is only 5 years! So why can't we run our nation's electricity with solar power?
We can. Such an elegant and environmentally sensitive solution. But there are many people who are either in denial of solar’s ability to affordably power our economy, or have ulterior motives -- usually these are people who have financial interests tied to the fossil fuel or utility industry. According to a recent report by the National Renewable Energy Lab, rooftop solar has the potential to power almost 40% of the country's total electricity needs – using only the roofs of residential/commercial buildings. When you consider community solar and ground mount installations we can easily generate 100% of total U.S. electricity needs. Still not convinced? Listen Up to the Energy Show on Renewable Energy World for the highlights of NREL’s report entitled “Rooftop Solar Photovoltaic Technical Potential in the United States.”
Every year I gaze into my solar crystal ball and make ten educated guesses about the rooftop solar industry. Last year I was pretty lucky, getting 9 out of 10 right. 2017 is shaping up to be a lot more uncertain with big political changes, low equipment prices, new energy storage products and higher electric rates. Unfortunately, my list doesn’t include the benefits of the CPP and 500 million solar panels (along with the EPA and half the equity in the remaining solar module companies). Nevertheless, I remain very optimistic about the future of clean technology industries simply because their economic benefits have been proven.
So here are my Ten Predictions for Rooftop Solar in 2016: 1. Module prices will stay at current low levels. 2. U.S. solar manufacturing will continue to decline. 3. Community solar will struggle to get traction. 4. State solar organizations will gain membership and influence throughout the U.S. as Net Energy Metering and rate design issues are tackled by state public utility commissions. Meanwhile, SEIA will fight a rear guard action in DC to preserve the most precious TLAs (Three Letter Acronyms): ITC, DOE and EPA. 5. The TLA for 2017 is BTM (Behind The Meter). 6. Bigger is badder in rooftop solar. Small local and medium regional rooftop solar companies will continue to thrive as large integrated companies struggle. 7. Utility deployments of battery storage system will grow rapidly in the U.S. 8. Customers will not install technology that provides services to utilities. 9. Storage equipment companies will continue to underestimate the true cost of their new products in order to generate buzz and initial sales. 10. President Trump will embrace solar because it is cheaper and continues to be a jobs engine.
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In 2016, more solar generating capacity was installed than any other fuel source. Because of the low cost of solar-generated electricity, installations of both utilities and customer owned rooftop systems (residential and commercial), are growing rapidly. Unfortunately, changes to net metering and revised electric rates (such as demand charges) are making battery storage systems more compelling for “behind the meter” applications that are not owned by utilities.
However, BTM solar and storage systems are still expensive and complicated. Inverters, charge controllers and battery subsystems are generally not factory-integrated. The software necessary to operate these components in a way that maximizes the economic benefits for homeowners requires knowledge of local electric rates, battery charge-discharge-longevity characteristics and instantaneous home electric usage -- not to mention customer energy use preferences. And National Electric Code limitations on “plug-in” power sources must be considered for safe installations.
Nevertheless, the demand for an affordable plug and play home solar and storage system is almost unlimited. My special guest on this week’s Energy Show is Chris Estes, co-founder and CEO of Solpad. Their first product, Solpad, combines a high-capacity battery pack, inverter, solar panel and software all in one easy to use portable package. To find out more about the plug and play potential of Solpad, please Listen Up to this week's Energy Show on Renewable Energy World.
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Looking for those last minute, inexpensive and romantic holiday gifts? Well, two out of three ain’t bad with the new crop of LED bulbs. You can help make a dent in the 15% of U.S. residential electrical usage that is used for lighting. Prices have declined so quickly on LED bulbs that they are no longer a novelty. Without a doubt, replacing the incandescent bulbs in your home or business is the most cost effective way to reduce your energy costs.
In year’s past LEDs were also limited to standard screw-in bulbs. Now LED bulbs are available for virtually every light fixture. Moreover, LED bulbs come in color temperatures (soft white, daylight, etc.) that match incandescents. Plus, many of the newer LEDs can be used with dimmers (although sometimes not at the lowest setting).
Not only are LEDs more efficient, but they also have a much longer lifespan than incandescents and fluorescent bulbs. But the concept of planned obsolescence has kicked in with LEDs; I’ve noticed that the lifespan of LED bulbs has declined from 22 years to 11 years — but still much longer than the typical 1-3 year lifespan of incandescents.
This combination of long life, lower costs, good color temperature, dimming and bulbs for every fixture make LEDs the light source of choice for just about every application. Except for the hazards of climbing a chair or ladder to replace your bulbs, there is almost no reason to delay changing out your incandescents for LEDs. For more about our transition to LED lighting, please Listen Up to this week’s Energy Show on Renewable Energy World.
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We used to worry about the time when the world would start running out of fossil fuels, defined as Peak Oil. The concept of Peak Oil is when the maximum rate of extraction of petroleum is reached, after which production is expected to enter terminal decline causing energy prices to skyrocket. Based on oil demand and oil field depletion, the world was on schedule to hit Peak Oil in about the year 2000. I was a believer in Peak Oil, and looked forward to a future in which renewable energy would be able to offset these high energy prices.
But two lucky things happened to delay this Peak Oil economic disaster. First, horizontal drilling and fracking allowed drilling companies to pump oil and natural gas out of hard to reach areas. As a result, the supply of oil (and its substitute natural gas) went up, with a commensurate reduction in oil and gas prices. Second, the availability of less expensive alternative forms of energy (particularly wind and solar) -- combined with concerns about global warming -- have reduced demand for fossil fuels.
This double whammy of increasing supply and decreasing demand has reduced the price of fossil fuels. Energy consumers win, as do energy-intensive industries and businesses that depend on fossil fuel feedstocks (one word: plastics). Luckily, the continued reduction in solar and wind energy costs have kept up with the decline in fossil fuel prices. Please Listen Up to this week’s Energy Show on Renewable Energy World for more about Peak Oil, and the increasing irrelevance of this concept as wind, solar and storage continue to be more cost effective than fossil fuels.
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As technology advances, our favorite science-fiction and spy-thrillers become both laughably more unrealistic and eerily based on truth. Harnessing the power of the sun is no longer a figment of Ian Fleming’s imagination, but nor is it the latest evil-plot to destroy the world (for more details, watch “The Man with the Golden Gun”). Which brings me to concentrating solar power (CSP), a clean energy hybrid that uses concentrating solar and traditional steam turbines to turn sunlight into electricity.
This three step process -- from solar radiation to steam to electricity -- is more complicated than traditional PV systems (ironic that we call PV “traditional” now). But there is a significant advantage to CSP: heat can be stored during peak generation times (when there is plenty of PV power on the grid), and then when the sun goes down CSP generation can be ramped up as needed. As a result, many utilities prefer CSP systems because they operate in ways that are similar to conventional power plants.
When it comes to explaining CSP there is no better expert than Fred Morse, President of Morse Associates, Inc. Fred started work in solar under the Nixon administration, worked for the DOE for many years, and served as Senior Adviser of U.S. Operations at Abengoa Solar as he helped implement two of the largest solar plants in the world (Solana and Mojave Concentrating Power). Please Listen Up to this week’s Energy Show on Renewable Energy World as our guest Fred Morse explains the advantages and challenges of CSP.
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Our country had a surprise when Trump was elected as our next President. He takes office in fewer than two months. Compared to his predecessors, President Elect Trump has very different views about energy, manufacturing and business in general. Many of these views are troubling to the solar industry. But many of these views have the potential to be very good for our industry and economy as a whole.
On this week’s Energy Show on Renewable Energy World we will talk about the formal Republican platform as it relates to energy, indications of what President Trump will implement based on his comments and attitudes, and the impact of his policies on solar deployment. Finally, we will talk about what the solar industry can do to maximize solar installations, job creation and the positive impacts — both economic and environmental — of solar power.
I’m cautiously optimistic.
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About 50% of U.S. residents are not great candidates for rooftop solar. They may live in an apartment, they may have a very shaded roof, or they may have a very small electric bill. The best option for these people may be some kind of shared solar power system. Community Solar, or Solar Gardens, is a great solution for this segment of the population.
Community Solar installations must be fairly large in order to support the electrical needs of dozens or even thousands of customers. With Utility Owned installations, the energy is sold by the local utility, usually at a markup so the utility can make a profit; nevertheless, customers benefit from clean energy. With Private or Special Purpose Entity installations, an independent private company is created to develop and manage the project. Owners of the company may get a share of energy from system, or just profit from the energy sales. With Non-Profit installations, the system is developed and owned by a non-profit entity in which all the costs and benefits are shared.
Virtual Net Metering is an innovation that has the potential to accelerate the deployment of Community Solar systems. With VNM a group of people share the output of the system, getting bill credits equal to their share of ownership.
25 states already have operating Community Solar installations -- with many more projects in the pipeline. As the complexity with Virtual Net Metering and ownership structures are standardized, costs for electricity delivered from Community Solar will no doubt be reduced. So Listen Up to this week’s Energy Show on Renewable Energy World to learn about the advantages, limitations and challenges of deploying Community Solar throughout the U.S.
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Tesla’s recently announced solar shingles are a great looking and potentially ground-breaking Building Integrated Photovoltaic (BIPV) product. But we don’t know much at all about the cost or performance of a Tesla solar roof. Not to worry…on this week’s Energy Show on Renewable Energy World I’ve made some educated guesses about Tesla shingles so we can understand how they will appeal to homeowners.
We saw mockups of the shingles that suggest each shingle has a 6” cell, maybe up to 6 watts. But 1,000 little solar shingles (each with two wiring connections) are too many. To make the product more cost effective and installable there will be shingle assemblies composed of 24 6” cells for a total of 132 watts/assembly. A roof will have about 45 shingle assemblies and 2,000 dummy shingles for setbacks, shaded and sub-optimal roof areas. Installation costs will be higher with thousands of dummy shingles, small shingle assemblies, tricky and specialized wiring, expensive wire penetrations in attic to conceal cables, etc.
Tesla said the cost of their new system is the cost of an ordinary roof plus the cost of electricity. We can estimate the cost of an ordinary roof from new roof or re-roofing costs, and the cost of electricity from that of a regular solar system or 10 years of electric bills. Including the ITC (and several other assumptions), paybacks for a regular solar system and three Tesla options are:
- Regular solar system, simple payback 6.5 years
- Tesla retrofit, simple payback 11 years
- Tesla new production home, simple payback 8.2 years
- Tesla custom home construction, simple payback 11 years
These paybacks for a Tesla roof are slightly longer, but will still be compelling for new construction and homeowners willing to pay extra for superior aesthetics. The combination of Tesla and SolarCity also has the potential for a different roofing business model to further reduce costs. So Listen Up to this week’s Energy Show on Renewable Energy World for my crystal ball look into the Tesla solar roof.
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With so many solar inverter options, choosing the right one for your home or business can get a little overwhelming. In the way of background, inverters convert the DC power from rooftop solar panels into the AC power used in your home. High Voltage! For cost, performance and reliability reasons, most solar installers have strong preferences for inverter manufacturers and types. And for good reasons, as discussed below.
Standard string Inverters are the most common inverters for homes, I’ve been installing them since 2001, and they remain the most cost effective option. String Inverters are ideal for roofs without much shading (trees, vent pipes and chimneys). String inverters are usually installed outside the house near your electric meter; in my experience they have been among the most reliable designs. But string inverters have a more difficult time meeting some of the new rapid shutdown electrical code requirements. And they don’t offer panel-by-panel monitoring (which can be a mixed blessing).
Microinverters, introduced about eight years ago, are essentially miniature DC-AC inverters that are installed on the back of each solar panel, or on the racking below the panel. They are inherently safer than string inverters because there is no high voltage DC in the system. However, they are more expensive to purchase and install.
String inverters with optimizers started hitting the market about five years ago. A small electronics package (an optimizer) is installed on the back of each panel (or integrated with the panel’s junction box). This optimizer maximizes the power output from each panel, provides monitoring, and limits the DC voltage to safe levels. Optimizers are installed in conjunction with a string inverter. Typically, the string inverter with optimizer design is cheaper than microinverters but more expensive than a string inverter alone.
From an efficiency standpoint, string inverters, microinverters and string inverters with optimizers are all about the same -- on an unshaded roof. In my experience, reliability of inverters from major manufacturers are similar, once the manufacturer releases their V3 product. The key differentiating factors are cost, monitoring (ease and reliability) and storage upgradability. For more about your best choice for solar inverters, please Listen Up to the Energy Show on Renewable Energy World.
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Scientists at Bell Labs made the first solar cell in 1954. A dozen years later entrepreneurs started installing solar panels on rooftops. Now we have over one million homes and businesses powered by solar panels. We owe much of this success to the thousands of men and women who pioneered the solar industry. They are the ones who had visions of solar panels on every sunny rooftop.
Jeff Spies, now with Quick Mount PV, had the idea to get these solar pioneers together. “In October 2015, a group of dedicated solar professionals gathered in southern Humboldt County for the first-ever Solar Pioneers Party,” said Jeff. “These incredible people assembled to celebrate the birth of the solar industry and recognize the contributions of those intrepid backwoods solar engineers and mad scientists that made solar home power possible.”
The second Solar Pioneers gathering is coming up in the middle of October. And it’s not just a gathering of solar old-timers, or an opportunity to test that solar powered defibrillator. The strategies, tactics and sheer force of will that got our industry off the ground is in just as much need today. So please join me on this week’s Energy Show on Renewable Energy World as my special guest, Jeff Spies, talks about the next Solar Pioneers Gathering.
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Electricity is a commodity - indistinguishable regardless of the source (all kwh are the same), available from different suppliers and easily transferrable. But like many commodities, the costs of electricity vary depending on the location to which it is delivered.
The cost range for electricity in northern California is fascinating. Utilities pay as low as $0.04/kwh for electricity they generate in centralized solar plants. Many companies are installing rooftop solar systems for the equivalent of $0.06/kwh (less for commercial installations). And the average charge to consumers is $0.20/kwh.
Why such a big range between wholesale generation costs and retail selling price? First, there are a lot of costs involved from generation to retail sales. And second, some electricity business models are much more expensive than others.
Conventional utilities provide three electricity services: generation, transmission and distribution. Here is how utilities break down their rate components to get to a retail rate of $0.20/kwh: - $0.10/kwh for electricity generation (usually at a central power plant) - $0.02/kwh for transmission at high voltages over long distances (those tall electric towers) - $0.08/kwh for local distribution (that local network of substations, transformers and utility poles)
But why are these costs so high when generation costs are $0.04/kwh, and rooftop costs are $0.06/kwh? Mainly because monopoly utilities are not under any competitive pressures. A simple comparison between Investor Owned Utilities (IOU) and Municipally Owned Utilities (MOU) illustrates this point. My local IOU charges an average of $0.218/kwh to homeowners; just 5 miles away the local MOU charges an average of $0.115/kwh. IOUs have much higher cost structures; spend hundreds of millions of dollars lobbying regulatory agencies, legislators and the public about why they need high rates; and get a guaranteed profit of 10%.
I can’t think of a single reason why we cannot transition to a more consumer friendly and less expensive way to generate electricity. Please Listen Up to the Energy Show on Renewable Energy World for more about the artificially high price of electricity, and the future of cost-effective and reliable power generation.
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Rooftop solar is the cheapest way to generate electricity for your home or business. That’s good for you -- but not for your local utility. They lose revenue (selling fewer kwh) and profits (fewer assets on which they generate their guaranteed 10% profit). As a result of this competitive threat, utilities have implemented an organized, national campaign to slow down, and in some cases prevent, more rooftop solar installations.
In almost all other cases of new technology displacing old technology, customers were free to choose the products and services that would benefit them the most. But in this case utilities are a monopoly. In effect, their anti-competitive behavior is sanctioned, and partially constrained only by state public utilities commissions. Utilities and their front groups (such as the Edison Electric Institute) have organized on a national basis, and are spending hundreds of millions of dollars to convince the public, legislators and regulators that rooftop solar is not in the best interests of the pubic and ratepayers.
Their first argument, that rooftop solar is too expensive, has been proven to be false. Just about any homeowner with a sunny roof can generate their own power for less than the utility charges. Their second argument, that the grid can’t handle all the power flowing backwards from rooftops, has never been close to a problem anywhere in the developed world. Moreover, this potential limitation can easily be addressed with new feeder equipment installed at local substations (on which utilities will get their 10% guaranteed profit). Their third argument, that solar shifts costs from ratepayers, has been disproved time and again (most recently in the Brookings Institute Net Metering Meta Study).
Bottom line…it’s all about the bottom line. Should customers get the benefit of cheaper electricity with rooftop solar, or should utilities be allowed to maintain their highly profitable monopoly while charging customers ever more for electricity? A quick comparison between Investor Owned Utilities (IOU) and Municipally Owned Utilities (MOU) shows just how expensive the IOU model is for ratepayers. For more about the specific efforts of utilities to limit customer choice, constrain rooftop solar, and profit at your expense, Listen Up to the Energy Show on Renewable Energy World.
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Just because you have a worry free warranty on your rooftop solar system doesn’t mean things can’t go wrong. Murphy’s Law -- “anything that can go wrong will go wrong” -- still applies. On this week’s Energy Show we will discuss the few real world things that can happen that may affect the performance of your rooftop solar system.
The good news is that as long as your solar panels, inverters and rooftop mounting systems are installed properly there is almost nothing to worry about. Almost all solar panels sold in the U.S. have 25 year warranties, inverters have 12-25 year warranties, and most installers guarantee their workmanship. So besides keeping your panels clean and checking to see that the inverter is operating properly (hint: look for the green LED), you can look forward to 25+ years of clean energy generation.
Nevertheless, I have seen four general types of problems that are not covered by equipment or installer warranties: damage from rooftop pests (squirrels, rats), damage to the glass of the panels (painting, improper cleaning, tree branches), solar panel defects from non-standard or bankrupt solar companies, and overly optimistic savings estimates. For more about the maintenance and operation of your home solar system, Listen Up to this week’s Energy Show on Renewable Energy World.
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We’re in the midst of a bizarre presidential election. And a global energy transition driven by both economics and climate change. So where do Donald Trump and Hillary Clinton stand with their plans for our energy future?
Fortunately, the platforms of both parties were published this July, and are very specific about their respective goals for the U.S.’s energy future. Not surprisingly, the republican platform wants to kill the Clean Power Plan (which calls for the reduction in greenhouse gas emissions by 32% by 2025), use more coal (which the platform arbitrarily characterizes as “clean”), ease nuclear permitting, prevent taxes on carbon, state that the environment is too important to leave to radical environmentalists, and solve environmental problems with human ingenuity and the development of new technology. On the other hand, the democrat platform wants to get 50% of our electricity from clean energy sources in a decade, install half a billion solar panels in four years, generate enough renewable energy to power every home in the country, eliminate tax breaks for fossil fuel companies, and oppose efforts by utilities to limit consumer choices for clean energy deployment.
Hillary Clinton is completely aligned with the democrat’s energy platform; it is apparent that she and her team had influence in writing the platform itself. However, Donald Trump’s energy position is at times very different than that of the republican party; he goes with his gut. As a result, it would not surprise me at all that, if he were to be elected, Trump would turn into a big supporter of solar power.
Pretty much the only thing the Republican and Democrat platforms agree on is that we need new energy technologies -- but we should not play favorites with particular technologies. Except, of course, with their preferred technologies. Nevertheless, regardless of what the politicians say, the economics of energy generation and distribution will ultimately have the biggest impact on the outcome. For more about presidential energy politics and the specific positions of Hillary Clinton and Donald Trump, Listen Up to this week’s Energy Show on Renewable Energy World.
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For over fifteen years I’ve been talking to homeowners who want solar shingles. This is a concept called Building Integrated Photovoltaics, or BIPV. The idea is for the outside of your building -- the part that is exposed to the sun -- to do double duty: roof shingles or coverings that generate electricity, windows that let some light in but also absorb light and generate electricity, or some kind of wall covering that generates electricity. The hope is that money will be saved by combining two product categories (for example, shingles and solar panels), while at the same time improving the aesthetics of the home.
BIPV is a great concept, but very challenging in reality. I’ve seen dozens of BIPV product announcements, done a number of BIPV installations myself, and then observed almost all of these products disappear from the market. In retrospect, there are three reasons that these BIPV products almost always fail to get market traction: They are more expensive than ordinary solar installations, even considering the avoidance of ordinary building materials, They are never as reliable as ordinary solar, and They have a difficult time meeting new safety requirements (arc-fault, rapid shutdown, fire clearances).
Nevertheless, intrepid companies continue to innovate BIPV products. I remain hopeful that someone, someday will find a way to solve these problems. For more about the promises and challenges of Building Integrated Photovoltaics, Listen Up to this week’s Energy Show on Renewable Energy World.
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I don’t normally do book reviews, but I came across a recent book called “Fueling Freedom - Exposing the Mad War on Energy,” by Stephen Moore and Kathleen Hartnett White. From the book’s jacket: “...climate policies are pushing a grand-scale shift to unreliable, impractical, incredibly expensive, and far less efficient energy sources.” Hmm, really?
What makes this book even more timely is that both Mr. Moore and Ms. White have just been named to Donald Trump’s economic advisor team. Media Matters recently commented that Moore and Kudlow have long histories of playing fast and loose with the facts while making outlandish and incorrect claims about the economy. After reading this book, I couldn’t agree more with this characterization.
Understanding the premise, data and conclusions of “Fueling Freedom” -- and similar seemingly authoritative but deceptive books -- are important for people working hard to transition to future energy sources. So Listen Up to the Energy Show on Renewable Energy World to hear my perspective and rebuttal of these specious arguments for past polluting power plants.
We’re witnessing the transformation of electricity generation, storage and usage of electricity in buildings. The “home of the future” will have an appliance that combines an inverter, rooftop solar, battery storage and an EV charger - linked together with easy to use management software.
In August, Tesla implied they are developing such a product. But other companies have been working on similar complete systems -- as well as individual components -- for years. SolarEdge, Enphase and others for inverters; dozens of solar module manufacturers; multinationals such as GE, Siemens and Schneider for chargers and home electronics; and thousands of software entrepreneurs who hope to create an “app for that.”
These developments are being driven by new technology in solar, battery storage and power electronics. From a consumer’s “demand” perspective, it is becoming increasingly cost effective to generate and store one’s own electricity. And from a utility’s “supply” perspective, the realization is dawning that they cannot maintain their “we generate it so you must buy it” business model.
The challenge is to build a profitable business around this future building energy reality. Can one company dominate the commodity manufacturing of solar panels and batteries to create a complete “home energy appliance” product offering? Or will multiple companies collaborate as they provide pieces of this appliance, integrated by one or more suppliers of electronics and software? For more about the Next Big Energy Appliance, please Listen Up to the Energy Show on Renewable Energy World.
Traditional finance theory characterizes investments by their risk and their return. High risk investments, such as junk bonds, have to offer high interest rates to compensate for the fact that some of these investments will fail. Low risk investments, such as government bonds or bank accounts, offer low interest rates because there is almost no chance of these investments failing. There is a complete spectrum of investments in between. It is very unusual for low risk and high return investments to exist for long -- simply because when these unusually good investments become available, investors flock to these investments, pushing the rate of return down.
But rooftop solar is an outlier to this traditional financial theory -- especially from the perspective of an individual homeowner. Paybacks for rooftop solar are in the range of five to ten years -- the equivalent to a 10% to 20% rate of return. And risks are very low -- rooftop solar will keep working as long as the sun comes up (most systems are guaranteed for 12-25 years).
When my finance friends run the numbers for their own home, they are often amazed that more people don’t install rooftop solar. These friends are happy to take cash out of their investment accounts -- where they may have been earning 2% after tax -- and install a rooftop solar system where they will earn an equivalent 15% after tax return. For more about the financial risks and rewards of a rooftop solar system, please Listen Up to the Solar Energy Show.
Some nuclear power news: PG&E is shutting down the Diablo Canyon nuclear plant, the last plant in California. Their decision is not for safety or reliability reasons, it’s simply because other energy sources -- such as solar, wind and natural gas -- are cheaper. And other utilities around the country are coming to the same conclusion.
Utilities have three primary goals: generate profits for their stockholders, keep the lights on, and keep people safe. Although nuclear plants were at one time thought to be the cheapest and most reliable way to generate safe electricity, rapid cost declines in renewables (wind and solar) and natural gas have made these generation technologies much cheaper on a lifecycle basis.
The decision by PG&E was partially motivated by California’s goals of 50% renewable power by 2030. A compromise was reached among PG&E, California’s Public Utility Commission, environmental groups and unions representing nuclear workers to shut down Diablo Canyon earlier than scheduled -- while at the same time shifting more towards renewable power generation instead of natural gas. For more about the $3.8 billion early shutdown of the Diablo Canyon nuclear plant, Listen Up to the Energy Show on Renewable Energy World.
EVs will continue to gain popularity for the same reason as rooftop solar - the economics keep improving. Batteries (mass production) and charging costs (from solar) are getting less expensive, gasoline will inevitably increase in price again, and virtually every single automaker is rolling out new EV models. But it’s easy to overlook some of the other benefits of EVs: they are fun to drive, require almost no maintenance, and reduce your commute time with HOV lanes.
The fun part is evident the first time you get into an EV and floor the gas pedal. Acceleration is brisk, and in high performance EVs better than even the quickest sports car. But the extra battery weight of EVs does inhibit their performance around corners.
Range anxiety is the biggest disadvantage of EVs. Charging up a high capacity battery takes time, and public chargers are neither widely available nor inexpensive (public charges are usually 2-3 times more expensive than charging at home). Moreover, it is inconvenient to plug your car into a charger every time you pull into your garage. Nevertheless, every EV owner I have met will not go back to a gas vehicle for their daily commute. For more about the benefits, disadvantages and comparative operating costs of different EV models, Listen Up to the Energy Show on Renewable Energy World.
We celebrated a milestone recently. Over one million homeowners have solar. It took 62 years, from 1954 to 2016, to get to this point. Now there are over 200,000 people working in the solar industry -- more than in the oil and gas extraction industries. Let’s think about that point. There are more people developing, selling and installing solar energy power plants -- that run almost maintenance-free for 25 years -- than there are people who drill for polluting oil and gas.
Two factors helped us get to this level of market penetration. The first factor is that there are hundreds of hard working, committed (some would say crazy) people worked for many years to pass solar friendly laws, and fight hostile fossil fuel companies and utilities. Hats off to SEIA, state chapters like CALSEIA, and other advocacy groups such as Vote Solar and NRDC. The second factor -- arguably even more important in the years ahead -- is economics. Solar is the least expensive source of electricity. Whether you are a homeowner or a utility, it’s cheaper to generate electricity from solar panels than coal, nuclear or even natural gas. Because of these economic factors, the coal industry is declining, nuclear plants are being cancelled, and more utilities are installing large solar installations than new natural gas plants.
Homeowners are taking advantage of the favorable economics of rooftop solar, too. Inexpensive solar panels and more efficient installation methods have brought the price of a home system down from $200k to less than $15k. In many locations around the country, low solar costs and high electricity costs provide homeowners with a 4-8 year payback. In finance terms, that’s a Return on Investment of 12.5 to 25%, after tax. Please Listen Up to the Energy Show on Renewable Energy World as we talk about the choices homeowners can make to maximize their savings with rooftop solar.
If you have a rooftop solar system, you already know that it requires very little maintenance. But “low” maintenance doesn’t mean “no” maintenance. On this week’s show we’ll review the periodic cleanings and inspections your system needs -- as well as some of the more extensive work that may be required every 10-15 years or so.
For many people, their goal is to achieve the maximum net electric bill savings while minimizing ongoing costs. Why spend $300 to wash rooftop solar panels twice a year if, due to regular rain, they get only slightly dirty with only a minimal energy output decline?
Nevertheless, there are a few things that all homeowners should check regularly. First, check your system monitoring regularly -- or just check to see that the green light is illuminated on your inverter (a red light or no light usually indicates a failure). Second, keep an eye on your monthly electric bill -- if you see a big increase in your kwh usage that may indicate a problem with your system. Third, keep trees trimmed that are near your house, both to minimize shading and to prevent squirrels from building a nest under your panels.
For more information about periodic maintenance needs of your rooftop system, Listen Up to this week’s Energy Show on Renewable Energy World.
It’s that time of year again: the weather has warmed up, air conditioning bills are peaking, people are in the midst of their home improvement projects…and it’s prime solar sales season. Homeowners are getting calls, e-mails, radio ads, direct mail and even door-to-door sales pitches.
Most of these pitches are well-intentioned and accurate. Rooftop solar will indeed save you money, while also improving our local and global environment. Solar companies are providing an important service as we transition to this clean energy economy. It’s all a good thing, as long as the solar advice you get is good.
The problem is that solar technology, electric rates and financial savings can be very confusing, and subject to a variety of assumptions. To help sort through some of these facts and fictions, our topic on this week’s Energy Show on Renewable Energy World is: “Straight Answers to your Solar Questions.” Please Listen Up to our perspective on the following solar customer Q&A topics:
• How many solar panels will fit on my roof? • How can you tell if a solar salesperson is exaggerating? • Will a big solar company be more likely to be in business in 10 years than a small company? • What is a realistic energy escalation rate? • What is better, a microinverter, optimizer or string inverter? • What solar panels are the best? • How much money will I save? • I pay $0.20/kwh for electricity, and a solar company is offering me a PPA for $0.17/kwh. Sounds like a no-brainer? • I’m confused about these solar financing options. What is best? • What maintenance is required? • I have an output guarantee. Are my savings guaranteed? • Do solar panels increase the value of my house? • How long will it take to do the installation? • Do I need to get a building permit or utility interconnection? • If I move can I take my solar system to my new house? • If the roof where the panels are located is partially shaded, will they still work?
You can generate your own power on your home or business roof for about $0.07/kwh, with paybacks in the 4-8 year range. Without a doubt, solar is a great way for businesses and homeowners to reduce their electric bills.
So how does your local utility or friendly fossil fuel company react? • They try to make solar more expensive by adding costs and delays • They create higher solar rates to penalize solar customers for their good behavior. • And perhaps most egregiously, they fund lobbying groups to try to trick you.
That’s right, groups like Partnership for Affordable Clean Energy, Consumer Energy Alliance, Yes for 1 on the Sun, and Consumers for Smart Solar are really front groups funded by the fossil fuel industry and utilities. Their sole purpose is to convince voters and policymakers to pass laws favorable to their businesses, and overturn clean energy regulations.
Please Listen Up to this week’s Energy Show on Renewable Energy World as we disclose the real money behind these anti-solar lobbying groups, and expose some of their dirty tactics.
Last month was the 30th anniversary of Chernobyl. The meltdown at this Soviet plant was the worst nuclear disaster in history. It was a Level 7 disaster on the International Nuclear Event Scale. Fukushima was also a Level 7; Three Mile Island (TMI) was only a Level 5. This nuclear disaster permanently poisoned large parts of eastern Europe. There is a similar contamination situation at Fukushima; fortunately, much less so at Three Mile Island.
New nuclear technology and safety procedures will hopefully prevent another disaster (although that’s what we thought after TMI). But what happens at a plant that isn’t crippled by a disaster? Surprisingly, even cleaning up existing nuclear plants is outrageously expensive. Ever wonder why every electric bill has a line item called “Nuclear Decommissioning?” It costs about $750 million to shut down existing plants in a process that can take 20 years or more. Around the world, nuclear plant operators have budgeted over $1 trillion dollars to clean up existing nuclear reactors (think about how many solar panels and batteries we can buy for $1 trillion dollars).
Once they are up and running, the economics of a nuclear plant are pretty good. But they are expensive to build, expensive to decommission, and outrageously expensive to clean up after a disaster. Compare that to a “solar spill” – which is basically a very sunny day. For these economic reasons, from a utility’s perspective the pendulum has swung completely way from nuclear power towards solar. Please join me on this week’s Energy Show on Renewable Energy World as we delve into the long term costs of nuclear energy.
Battery storage has made enormous strides in terms of cost and efficiency. Unfortunately, our society’s needs keep increasing -- both for power (kilowatts for our cars, industries and HVAC) and energy (sustained energy delivery, even at night). Although battery-powered cars have indeed become cost-effective, pop culture’s impractical view of battery storage persists (see the SNL clip about the new Mercedes AA series car).
Batteries are an ideal way to store the sun’s daytime-generated energy for use at night. We have the technology. And the costs for batteries, electronics and the necessary software have come down dramatically. But the policies that would make these systems cost-effective are not yet in place in the U.S. Utilities would rather build more generating and transmission capacity than encourage customers to generate with solar and store energy in their own batteries.
The market for commercial battery storage systems is much bigger than the home market, because commercial customers get an economic benefit by avoiding high kw demand charges. Without home electric rates that are favorable to battery storage, there is almost no reason for homeowners to invest in these systems. Yet. Homeowners who need emergency backup power are almost always better off with a generator. But as battery storage costs continue to decline and storage-friendly utility rates become available, there is no doubt that the market for home and business storage systems will grow quickly. For an update on current battery storage options, please Listen Up to this week’s Energy Show.
Lower costs are creating a boom in the U.S. solar industry. At the end of 2015 there were over 200,000 people employed in the industry, and by May 2016 there were over 1 million homes with solar panels. Solar generates about 1% of the electricity consumed in the U.S. These employment and energy benefits are a result of continued reductions in solar installation costs. But how long can these cost reduction trends continue, and how low can they practically get?
Current residential costs (with the ITC) are about $0.07/kwh, with utility-scale solar even lower at about $0.05/kwh. I’ve watched all-in residential installation costs decline from $10/watt down to the current $3.50/watt, while at the same time system efficiency, reliability and features have improved. Note that these costs vary considerably around the U.S., with lower cost of living states -- such as Texas -- with much lower installed costs compared to higher cost states such as New York and California. Interestingly, the net customer economics don’t change much because these lower cost states also have lower electric rates.
There is no doubt that solar hardware costs will continue to decline: panels, inverters and mounting systems will all get less expensive. I expect all-in hardware costs to bottom out in the range of $0.50-$1.00 per watt; systems with high efficiency panels, monitoring and name brand manufacturers will be at the high end of the range. But soft costs -- such as labor, sales, marketing, engineering, permitting, financing, insurance and G&A costs -- are unlikely to see substantial reductions. Without some kind of streamlined national solar installation policies, these soft costs are likely to stay in the $1.00 to $2.00/watt range.
Where will installed rooftop solar costs bottom out? The best comparison is to HVAC systems, which have similar complexities to solar. As with solar, HVAC system costs vary widely. A rough ballpark is that HVAC hardware will cost about $5,000 -- but total installed costs are almost always more than $10,000. For more about cost trends in the solar industry, Listen Up to this week’s Energy Show on Renewable Energy World.
When I first got into solar, Florida seemed to be a natural market. After all, it’s the Sunshine State. In spite of the sun, there is one big problem that was holding back the market: the state of Florida prohibits residents from purchasing electricity from a source other than a utility. Unlike all other sunny states in the U.S., third party solar companies such as SolarCity, SunRun and Vivint are prohibited from providing solar leases and PPAs to homeowners. This utility-biased state policy has made it difficult for homeowners to finance their rooftop solar systems.
Fortunately, affordable solar loans are now available in Florida. These low interest and easy qualification loans help homeowners get to positive cash flow (electricity savings > financing costs). As a result, the rooftop solar industry in Florida is finally growing, in spite of the utilities’ anti-competitive policies.
My guest this week is Justin Hoysradt, CEO of Vinyasun, one of the leading residential solar installers in Florida. Please join me on this week’s Energy Show as Justin talks about the opportunities for rooftop solar in Florida, as well as some of their unique requirements -- such as mounting systems and panels that can resist hurricane-force winds.
Just as a grimey window does not transmit as much light as one that’s sparkling clean, dirty solar panels will not produce as much energy as panels that are clean. But cleaning solar panels isn’t as easy as washing windows. Nor is it easy to figure out when they need to be cleaned.
Both homeowners and commercial solar installations have to deal with issues related to keeping solar panels clean. For homeowners, the best advice in rainy areas is to have the panels professionally washed every three to five years; more often for larger systems, and in areas that are very dry and dusty. Commercial customers consider the cost-benefit tradeoffs more carefully. It may cost $5,000 per year to clean a large system, but that 5% increase in energy output may be worth $10,000 -- hence regular cleaning pencils out.
With over 25 Gigawatts of installed solar capacity in the U.S., there is a need for professional solar panel cleaning services. But not a lot of Windex; for safety and environmental reasons, panels are usually cleaned with deionized water. And NEVER just hose off your panels; minerals in the water will create a white film on the glass. If you can work safety on a ladder and on your roof, you can wash the panels yourself with a gentle soap solution.
Please Listen Up to this week’s Energy Show on Renewable Energy World as we welcome Jay Welsh, CEO of Solar Maids, the leading professional panel cleaning service. Jay shares his tips on cleaning residential systems, as well as the wider range of operations and maintenance services that Solar Maids provides.
The economics for rooftop solar are terrific -- typical paybacks in the 4-10 year range. From a Return on Investment (ROI) standpoint, there are almost no other investments that come close. Think about it: 1.5% before tax in the bank (steady but low), 6% before tax in the stock market (very variable) or 14% after tax with rooftop solar (as long as the sun shines and assuming a 7 year payback period).
But….at the average price of $3.50/watt, a 5,000 watt system will cost $12,250 after the 30% tax credit. Many people with high electric bills don’t have that much cash available to purchase a system. Until about five years ago the only option for financing a rooftop solar system was a long-term lease or Power Purchase Agreement (PPA). Luckily, over the past five years a number of finance companies have started to offer loans specifically for residential solar customers.
My guest on this week’s show is Sara Ross, Founder and CEO of Sungage Financial. She tells a compelling story as to why loans are the best way to finance your rooftop solar system. Please Listen Up to this week’s Energy Show on Renewable Energy World to learn more about options to finance your rooftop solar system.
Our society’s fuel transition from wood to coal to oil to gas has been steady and obvious. Now we are benefitting from the transition from fossil fuels to renewable energy. But we are also experiencing a change from technologies that are based on moving atoms (combustion, pipelines, engines with moving parts) to technologies that are based on moving electrons (photovoltaics, battery storage and electric motors).
These relatively new electron based technologies allow us to generate, transmit and store energy without any moving parts. Nothing to wear out, re-fuel or maintain. The result is an energy economy that is cleaner and less expensive -- as well as more efficient. Case in point: the differences between a gasoline car and an EV.
Please Listen Up to this week’s Energy Show on Renewable Energy World as we talk about the technology transition towards electron (and photon) based machines and appliances. Think about it: not a single atom needs to be moved when you listen to this week’s show -- from the time you click “play,” until the sound emanates from the speakers in your headphones.
The “solar coaster” is not the newest daytime ride at six flags, but a term for the cyclical ups and downs of the solar industry. Like many other industries, market forces cause the costs for solar equipment and installations to vary. But unlike other industries, incentives and regulations that apply to clean energy create an additional layer of uncertainty and variability. Over the past 16 years I’ve witnessed three big up and down cycles in the solar industry. The only prediction I can make about the next one is that it is inevitable.
The good news is that the long term trend for solar in the U.S. -- and worldwide -- is very favorable. The bad news is that during these downswings company profitability suffers, jobs are lost and some technologies are orphaned. Although painful, these changes are typical in every fast-growing industry.
Please Listen Up to this week’s Energy Show on Renewable Energy World as we welcome back Paula Mints, one of the solar industry's’ best known market researches. We will be talking about what it takes to make the solar industry profitable, and how companies can build their businesses around profitable, albeit slower, growth.
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$31.03 per barrel - current spot crude oil price
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$59.95 per barrel - price of an empty steel oil barrel on Amazon
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$82.50 per barrel - price for 55 gallons of regular unleaded gas
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$550 per barrel (11 five gallon bottles) - price of water delivered to your home or office
The current price of oil is less than the barrel it’s shipped in...less than gasoline...and less than a plain old water delivery service. So how long will these low oil prices last? And what is the impact of low oil prices on renewable energy?
Cheap gas is spurs Detroit big iron, and helps families make ends meet by reducing their monthly fuel bills. But ironically, cheap oil has a dark side. Countries whose primary export is oil are facing drastic changes in their economy; banks that have invested in oil companies are losing money; and even the clean energy industry is impacted.
Gerald Appelstein -- a former VP at Tauber Oil and ExxonMobil -- has been through these crude oil ups and downs. He’s also familiar with energy geopolitics that often weigh more heavily than traditional economic supply and demand theory. Please Listen Up on this week’s Energy Show on Renewable Energy World as Gerry discusses the various factors contributing to low oil prices, as well as what consumers can expect for oil and gas prices in the future.
Fireplaces and chimneys have been part of every home and shelter ever since primitive man poked holes in the tops of their caves to let the smoke out,… until about a hundred years ago when central heating became widely available. Conveniences of modern life such as gas lights, closelines, ice boxes, Victrolas and Super 8 movies have all been replaced with successive generations of new, better and cheaper technology.
We live in a society that is more energy intensive than ever before. This trend is likely to accelerate, and apply to every “system” in our living spaces. Split system heat pumps will replace polluting natural gas furnaces, LEDs will replace incandescents, grey water recovery and water storage systems will cut back our water usage, batteries will store rooftop solar energy and provide grid support services, and the IOT (Internet of Things) will become a convenient (hopefully also simple and secure) way for us to control all of these systems.
I don’t expect us to use less energy, just less polluting sources of energy. In other words, our per capita energy usage in all forms will go up. On a unit basis we’ll use more kwh of electricity, but fewer gallons of gasoline and therms of natural gas. Please Listen Up on this week’s Energy Show on Renewable Energy world as we talk about how these new technologies are being deployed as standard features in new buildings as our society’s energy intensity increases and pollution declines.
Commercial solar has lagged behind utility scale and residential solar for two reasons. The first is that paybacks for commercial solar have historically been longer than CFO’s would like -- anything over 3-4 years is a “big” decision and usually gets pushed aside. The second reason is that the financing structures for commercial solar were complicated; although leases and PPAs are effective in reducing operating costs, they are not necessarily good long term investments.
New financing options for commercial solar are changing this picture. Banks are getting more involved in providing unsecured loans for solar installations, and secured solar loans are becoming available that offer relatively low interest rates. Property Assessed Clean Energy, or PACE loans are perhaps the most significant innovation.
PACE loans are secured by the property itself, and are paid back as part of annual tax assessments. If the property is sold the loan on the solar improvement automatically goes to the new owner. The loan debt typically does not show up on a company’s balance sheet. And if the property is leased to a tenant with a triple net lease in which the tenant pays an allocated part of the property taxes, then a portion of the solar repayment loan can be automatically passed on to the tenant (who in exchange gets the benefit of free solar electricity).
If you own or have a long term lease on a commercial property in a solar friendly state, please Listen Up to this week’s Energy Show on Renewable Energy World for the latest on financing options for your commercial solar installation.
Ahhh….it’s almost springtime. The weather is getting warmer, the trees are starting to bud, and people are starting to think about their next home improvement project. And along with the warming weather, the solar salespeople are starting to swarm on unsuspecting homeowners like locusts from the plagues of Egypt.
You may be interested in rooftop solar. But solar products, systems and terminology are confusing. As you do your research you’ll be inundated with TLAs (three letter acronyms)...and the more installers you talk to, the more you’ll get confused. On this week’s Energy Show we’ll review a Four Step Process that you can use to compare different home solar proposals.
Step One: Compare Installers. Consider local installers, check references from friends and neighbors, and read online reviews. You will almost always get better service and faster installation turn around with a local company. When hiring someone to work on my house, for accountability purposes I always prefer contractors that have their own trained crews (not subcontractors or temporary works).
Step Two: Determine the Cash Price of the Installed System on a Per Watt Basis. Just as buying a car, you always want to shop for the best cash price -- keeping financing out of the picture. Get a quote for the total installed system (no deductions yet for incentives or tax credits). Then determine the total number of DC watts of the system (number of panels times watts per panel). Divide the watts into the dollars to get a $/watt price for your system. Pricing can range from the low $3/watt to over $5/watt. For example, a system priced at $20,000 for 20 panels, each with a rating of 270 watts, will cost $3.70/watt. Don’t get distracted with varying claims about equipment reliability, inverter efficiency or panel degradation -- they are all about the same. Regardless of manufacturer or installer, every system will put out about the same amount of energy (and annual dollar savings) if it has the same DC watt system size.
Step Three: Compare Equipment and Services. Solar panels are commodities, but you will pay more for higher efficiency and more well known brand names. All panels have 25 year warranties, and will operate maintenance-free (except for an occasional cleaning if they get very dirty). The only time you need higher efficiency is when you have limited roof space. Nevertheless, you may prefer solar panels that look all black and are mounted flush to the roof, or micro-inverters and optimizers that have built-in safety features, or a system that has monitoring that you can view on your cell phone.
Step Four: Compare Financing. There are so many assumptions involved in financing, system output, energy rates and output “guarantees” that it is almost impossible to compare the total savings numbers. That is why it is easiest to compare cash prices or, if you are considering a lone, comparing interest rates. Watch out for escalation rates applied to energy prices (escalation rates will inflate your savings) and monthly payments (escalation rates will increase your repayment costs).
Rooftop solar has never been more cost effective and reliable as it is now. Favorable tax policies, local incentives and net metering combine to make solar a great long term investment. So if you’re considering rooftop solar, Listen Up to this week’s Energy Show on Renewable Energy World.
E-6 TOU (Time of Use) Rates Closed to Customers in March, and E-7 Eliminated
When the new TOU rates become available this spring, PG&E will end its solar friendly E-6 and E-7 rates. The new TOU rates will not be as favorable to solar customers since the peak rate periods are shifted later in the day when there is less generation from solar (see details below).
For most customers we recommend that you immediately change to the E-6 rate so that you can preserve this good rate option for the future.
If you are on the current E-6 TOU rate you don’t need to do anything. This E-6 rate is currently slated to stay in place until 2020 or later. If you are on the old E-7 rate we recommend that you immediately change to the E-6 rate. Otherwise, PG&E will automatically switch you to the new TOU rate, which will not save you as much money as the E-6 rate. If you are on an EV rate and charge your vehicle at night, stay on the EV rate. If you are on the current E-1 rate and do not use a lot of electricity during weekday afternoons, we recommend that you change to the E-6 rate. Since the E-1 rate has no time of use component, it is generally good for customers who cannot run their meters backwards during the day (typically smaller solar systems and higher daytime AC electric loads). All current solar customers are on the Net Metering 1.0 program (and grandfathered for 20 years), so you can go back to the E-1 rate if the E-6 rate is not beneficial for you.
Clear as mud, right? Unfortunately, these rate changes are complicated. Nevertheless, we want you to achieve the maximum benefits from your rooftop solar system. For more information, please call PG&E at (800) 743-5000 to discuss your rate options and decide whether moving to E-6 is the best option for you.
E-7 Rates
PEAK: noon to 6pm Monday through Friday, All Year, $0.16-$0.54/kwh OFF-PEAK: all other hours, $0.13-$0.30/kwh
E-6 Rates Summer (May 1 through October 31)
PEAK: 1pm to 7pm Monday through Friday, $0.34-$0.51/kwh PARTIAL-PEAK: 10am to 1pm and 7pm to 9pm Monday through Friday, plus 5pm to 8pm Saturday and Sunday, $0.23-0.39/kwh OFF-PEAK: All other times, including Holidays, $0.15-$0.32/kwh
Winter (November 1 through April 30)
PARTIAL-PEAK: 5pm to 8pm Monday through Friday, $0.17-$0.34/kwh OFF-PEAK: All other times, including Holidays, $0.15-$0.32/kwh
EV Rates
PEAK: 2PM-9PM Monday-Friday, 3PM-7 PM Sat, Sun, Holidays, $0.44/kwh Summer, $0.31/kwh Winter PARTIAL PEAK: 7AM-2PM Monday-Friday, 9PM-11PM M-F, $0.24/kwh Summer, $0.18/kwh Winter OFF PEAK: All other hours. $0.11/kwh
FUTURE E-TOU Rates
PEAK: 3pm to 8pm Monday through Friday, rates TBD OFF-PEAK: All other times, including Holidays, rates TBD
After gazing into my crystal ball, I see a good year for rooftop solar in 2016. In fact, towards the end of 2016, my crystal ball got even clearer as the ITC was extended through 2021, and California’s Public Utility Commission decided to extend retail net metering -- instead of kill it as was done in Hawaii and Nevada. So here are my Ten Predictions for Rooftop Solar in 2016:
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The rooftop solar industry will focus on steadier, more sustainable growth.
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Manufacturers and installers were ramping up capacity to meet expected U.S. demand in the last year of the ITC – but with the ITC cliff gone, there will be excess capacity in 2016, leading to continued price reductions.
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Local and regional installers will continue to gain market share.
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Adam Smith’s invisible hand will wave away the impact of the module tariff dispute.
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Soft costs will continue to go up as a percentage of the total installed cost to homeowners.
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Even with slightly higher interest rates, homeowners will have more choices for system financing
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Investments in all segments of the U.S. solar industry will increase.
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Rooftop solar companies will clean up their act when it comes to fair marketing practices towards consumers.
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2016 will not be the year of residential battery storage – although we are gradually getting closer to when battery storage becomes a mainstream product.
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Product differentiation will become more important than ever as pricing for commoditized products is forced down.
For details on how these predictions may impact your segment of the solar business, please Listen Up to the Energy Show on Renewable Energy World.
After driving a diesel truck for the last month and a half it is my opinion that the diesels are dead. Mercedes’ BlueTec system is expensive and incredibly inconvenient. And VW’s TDI system basically doesn’t work without fraudulent software. The reality is that gas vehicles are cleaner and cheaper, and electric vehicles (at least for cars) are the future.
Diesel engines have some big benefits: they are more efficient, more durable, and get better miles per gallon. But diesel fuel is more expensive, and the engines emit soot (black smoke), which is a restricted pollutant. To clean up the soot, the BlueTec system requires you to add a few gallons of DEF every three or four tanks. DEF is Diesel Exhaust Fluid, and is almost impossible to find at night on the interstate in the rain.
Until VW’s house of cards collapsed, diesels seemed competitive with gas engines. Although there are definitely benefits to diesels, there is no doubt in my mind that gas engines and EVs will prevail for cars. The inconvenience and expense of diesels may be OK for trucks -- at least until batteries get cheaper. For more about the efficiency and costs of diesel and gas engines -- and how they compare to future EVs, please Listen Up to the Energy Show on Renewable Energy World.
After driving a diesel truck for the last month and a half it is my opinion that the diesels are dead. Mercedes’ BlueTec system is expensive and incredibly inconvenient. And VW’s TDI system basically doesn’t work without fraudulent software. The reality is that gas vehicles are cleaner and cheaper, and electric vehicles (at least for cars) are the future.
Diesel engines have some big benefits: they are more efficient, more durable, and get better miles per gallon. But diesel fuel is more expensive, and the engines emit soot (black smoke), which is a restricted pollutant. To clean up the soot, the BlueTec system requires you to add a few gallons of DEF every three or four tanks. DEF is Diesel Exhaust Fluid, and is almost impossible to find at night on the interstate in the rain.
Until VW’s house of cards collapsed, diesels seemed competitive with gas engines. Although there are definitely benefits to diesels, there is no doubt in my mind that gas engines and EVs will prevail for cars. The inconvenience and expense of diesels may be OK for trucks -- at least until batteries get cheaper. For more about the efficiency and costs of diesel and gas engines -- and how they compare to future EVs, please Listen Up to the Energy Show on Renewable Energy World.
Over the past few months you may have seen or heard a continuous stream of ads warning about the imminent demise of the solar Investment Tax Credit and California’s Net Metering program. Good news for 2016: both of these programs have been extended. The incentive panic is over (for now). The solar industry – as well as homeowners and business owners – can concentrate on a steady transition to clean rooftop solar power.
As a result of the hard work at solar advocacy groups SEIA, Vote Solar and CALSEIA, the ITC is good through 2021 (30% in 2016-2019, then 26% in 2020 and 22% in 2021). And unlike their brethren in Nevada and Hawaii, the California Public Utilities Commission has made a preliminary decision to extend retail net metering, albeit at a slightly reduced rate.
But there is still real urgency to go solar: the sooner your installation is complete and you flip that switch to “on,” the sooner you’ll reduce your electric bill. Granted, installation costs are likely to be a little lower in future years, but electric rates keep going up and the “cost of doing nothing” will only grow as you pay your monthly electric bill. Many states still have rebate programs and caps on net metering – so check with your local installer to find out the status of incentives for your home or business. For more about the extension of the ITC and local net metering programs, please Listen Up to the Energy Show on Renewable Energy World.
If only all our New Year’s Resolution were this easy. Luckily, saving energy is easier than losing weight after gorging over the holidays. And the best part is that you’ll see results fast!
Energy and fuel costs are lower than they have been in years: gasoline is about $2/gallon, natural gas hasn’t been this inexpensive since 1999, and electricity costs are in the range of $0.10/kwh when generated by solar or wind. But even though these energy prices are relatively low, we live a much more energy-intensive lifestyle -- so we all consume more energy per person than any previous generation.. To get the New Year started right, here are ten tips for reducing your energy consumption in 2016.
- If it’s raining, turn off your outdoor watering system
- Drive a stake through the heart of your vampire electric loads
- Replace all of your incandescent bulbs with LEDs, including your outdoor lights
- Make sure you have a 7 day or smart thermostat, and that it’s working properly
- Fix the weather stripping around your doors and windows
- Install rooftop solar; wash your panels if they are very dirty
- Clean your heating/cooling filters and check your ducts for leaks
- Buy an EV
- Install a variable speed pool pump and cut back on the hours of operation
- Change your electric rate to a Time of Use or Electric Vehicle rate
It’s surprisingly easy to reduce your energy expenses in 2016, while at the same time improving our environment. For more details, Listen Up to the Energy Show on Renewable Energy World.
Whenever I land in a city I can’t help noticing how few -- if any -- commercial rooftops have solar panels. Historically, there have been two reasons why commercial solar hasn’t taken off as quickly as residential solar has: complicated financing and high costs for equipment.
But now, with more commercial financing options and lower prices for equipment, simple paybacks for commercial systems are often fewer than five years. That’s why big national companies such as Walmart, Safeway, Costco and Home Depot are adding rooftop solar systems to their retail and warehouse buildings.
If you own, manage or have a long term lease on a commercial building -- especially in a location where electric rates are high -- you should take a serious look at rooftop solar. Please Listen Up to this week’s Energy Show on Renewable Energy World for an overview of the process, equipment, and key considerations for commercial rooftop solar installations.
$400 billion dollars. That’s how much money is spent every year on electricity in the U.S. It’s a huge industry. But not for long, because new solar and storage technology can provide many of the same services for a fraction of the price.
The threat isn’t new solar technology, but the ways in this technology is being deployed and paid for. Historically, utilities generate and distribute electricity, and charge customers for their usage. Indeed, about 5 GW of utility solar will be installed in 2015 -- more than the commercial and residential sectors combined. But the price of electricity to residential and commercial customers continues to increase. Even though utility scale solar is the cheapest new generating source of electricity, customers are not benefitting. To make matters worse, customers can install their own solar power plants and generate their own electricity for less than the utility charges.
The centralized monopoly utility business model must change because electricity can now be generated, consumed, stored and even distributed on a local level. John Farrell, senior researcher with the Institute for Local Self Reliance (ILSR), focuses on issues surrounding renewable energy, utility power, and energy-generation. Please join me on this week’s Energy Show on Renewable Energy World as John shares with us his insights on how utilities are trying to adapt to the new world of distributed generation.
Mankind has been in an energy transition ever since two cave-boy scouts rubbed two sticks together and created fire. Although the world’s economy is currently powered by fossil fuels, renewable power sources (primarily wind and solar) are now cheaper than fossil fuels for many applications. This renewable power tipping point implies that a 100% renewable society is feasible, and may be here sooner than we think.
But there are many naysayers -- usually from the fossil fuel industry. They claim that renewable power is still too expensive (ignoring direct and indirect subsidies to fossil fuels), that new technology can make fossil fuels cleaner (the myth of clean coal and VW’s TDI diesels), or that we need to go slowly in this transition to prevent a worldwide economic calamity (really just a loss of fossil fuel company profits). Fortunately, these claims are easy to refute with the right data and analyses.
My guest this week is Clint Wilder, senior editor at Clean Edge -- a leading advisory firm specialized in reporting the latest in clean energy technology, economic developments, and market trends. Clean Edge recently released a report entitled “Getting to 100, a Status Report on Rising Commitments Among Corporations and Governments to Reach 100% Renewables.” This report focuses on the rapid progress that corporations and governments are making to deploy renewables and related technologies, including energy storage, more efficient buildings and an updated electric grid.
Please join me on this week’s Energy Show on Renewable Energy World as Clint explains our progress towards this 100% renewables, and discusses some of the opportunities and roadblocks that we will experience as we make this transition.
I’m wading into an opinionated minefield. We’re not supposed to talk about religion or politics in polite company. But we already did a show on the Pope’s Environmental Encyclical. And politicians are blasting the airwaves with their energy views in the run up to the presidential primaries. So this week’s show is about the politics of clean energy.
We have a lot of recent material to work with. There is Obama’s Clean Power Plan, Candidate Clinton’s plan for 500 million solar panels by 2021, and plans from various Republicans reflecting their view of energy and the environment. As usual, the parties are diametrically opposed regarding both the problem and the solution.
Both parties are in favor of the environment (apple pie, too), more jobs, cheaper electricity and better economic conditions. But that’s about all they agree on. Republican politicians are adrift on that long river in Egypt when it comes to global warming; hence, their solutions are unlikely to solve the real problem. Democratic politicians are swimming upstream against another river - a river of fossil fuel money. For two different perspectives on our clean energy future, please Listen Up to this week’s Energy Show.
Even with the anticipated El Nino weather conditions on the west coast, the drought in California will continue. Experts say it will take three or four years of very heavy rainfall to replenish above ground reservoirs, and many more years of above average rainfall to refill underground aquifers.
The Governor implemented a mandatory 25% water cutback, and people responded with an average 31% reduction. Brown is the new green when it comes to lawns (urban use accounts for 21% of water consumption). Unfortunately, farm output has taken a big hit -- fields are empty and orchards are filled with dead trees (agriculture accounts for 79% of water consumption).
But it has been difficult for people to conserve when they do not know what water costs. Anyone who drives a car knows how much gas costs per gallon -- but very few people know how much water costs per gallon. Last year here in the San Jose area our household water cost $0.004 per gallon (about half a penny). We cut our usage in half, but our water rates still more than doubled to $0.009 per gallon (almost a penny).
Painful as it may be when it comes to something we take for granted, people respond to price signals. As water rates doubled, consumption dropped. The same behaviour applies to other commodities that we buy -- most noticeably gasoline and electricity. For more about the effect of higher prices on California’s water usage, please Listen Up to this week’s Energy Show.
Recently, a solar worker in Hawaii fell off a roof to his death. Construction work is one of the most dangerous activities, and installing rooftop solar presents additional fall and electric shock hazards. It is up to owners and managers of solar companies to insist that their workers follow appropriate safety procedures -- even though these procedures may be inconvenient, time consuming and expensive.
Proper safety procedures can prevent tragedies like this. If you do rooftop installation work, we have three specific suggestions. First, install two or more permanent roof anchors on every job. These anchors are inexpensive (about $15 each), leak-proof, and easy to install. With these anchors installed there is no excuse for your workers not to use ropes and harnesses. Second, follow all of the applicable OSHA procedures for solar contracting, including ladder safety, protective gear, electrical safety, and emergency procedures. Third, consider getting a free OSHA safety inspection audit. Although inconvenient, these audits will help identify gaps in your company’s safety procedures.
Solar safety does not end when a system is installed. Homeowners must also be aware of the proper way to clean their panels and check for debris or problems with wiring. Although we're not aware of a serious fire from a properly installed rooftop system, there have been incidences of squirrel or bird damage to wiring, and occasional arc fault problems. By design, rooftop PV systems have many built-in safety features to prevent injury or property damage -- and local jurisdiction inspections are a good final step to help ensure the system is installed safely. For more on homeowner and installer solar safety, please Listen Up to this week’s Energy Show.
$0.25/kwh - what a typical California homeowner pays for electricity (based on current PG&E rates at the U.S. average of 12,000 kwh/yr) $0.12/kwh - what a typical California homeowner pays for Net Metered rooftop solar electricity (based on a 5 kw system installed at $3.75/watt) www.SaveRooftopSolarCA.com - what you can do right now to prevent utilities from killing rooftop solar Rooftop solar electricity is half the price of utility-supplied electricity. No business can survive when their product is that overpriced. EXCEPT a monopoly.
As a monopoly, utilities are permitted to set their electric rates so that they earn a minimum 10% profit. Their reaction to cheaper rooftop solar is to bombard the public with misinformation (solar is for wealthy people), fear mongering (more solar will cause the grid to collapse) and dirty tricks (trust us, new electric rates are actually good for consumers). To make matters worse, this advertising and lobbying is paid for by electric ratepayers themselves.
Utilities haven’t been able to make rooftop solar illegal (although they have tried); instead, they have insidiously reduced the benefits of Net Metering by increasing fixed charges and reducing Net Metering rates. In Hawaii, Arizona and Nevada these attacks against rooftop solar have been so effective that many solar companies have laid off employees. Effectively, residential and commercial electric rates have gone up.
California is the next big battleground for rooftop solar. This battle is being fought at the California Public Utilities Commission (CPUC), where utilities want to eliminate Net Metering. Utilities are proposing solar-only fees and charges that will double the paybacks for new customers (including existing customers who want to expand their systems).
Luckily, with 250,000 rooftop systems already in place and over 54,000 people working directly in the solar industry, California can resist this utility bullying. The California Solar Energy Industries Association (CALSEIA) is the focal point for continuing the growth of affordable solar in the state, and Bernadette del Chiaro is CALSEIA’s Executive Director. Please Listen Up to this week’s Energy Show as Bernadette explains the tactics that utilities are using, the reasonable arguments for continuing with retail Net Metering, and the actions that every reader and listener can take to support the growth of the rooftop solar industry. Quick Tip: click on the link at www.SaveRooftopSolarCA.com to add your name to the rooftop solar petition.
I typed the words “free solar” into Google and got 747,000,000 hits in half a second. We all know that solar systems are not free. But the technology that is being marketed is still so new and complicated that it is easy to scam homeowners who are eager to save money.
There are about half a million homes in the U.S. with solar, 200,000 people working in the U.S. solar industry, and 10,000 solar companies. Unfortunately, as in every big industry, there is a small percentage of companies that take advantage of consumers in order to make a bigger buck. Not surprisingly, complaints about unethical and fraudulent business practices in the solar industry are adding up.
Fortunately, the solar industry has been proactive with its efforts to reign in companies that are taking advantage of consumers. For many years several state solar organizations have published ethical and business practice guidelines. Most recently, the Solar Energy Industries Association published their Solar Business Code. This Code provides detailed principles for companies in the solar industry -- specifically focused on protecting consumers.
Please Listen Up to this week’s Energy Show as we go over some of the real-world problems that consumers experience, the solutions specified in the Solar Business Code, and the caveat emptor realities that apply to all big purchases and investments.
The oldest, biggest and most efficient solar application is heating water. Solar hot water systems have been around in one way or another ever since Roman times. But it has only been over the last 100 years or so that solar hot water systems have become popular -- driven by high energy costs, environmental consciousness, and lower solar equipment costs.
The most popular application of solar heating is for solar domestic hot water, or DHW. These systems generally use a metal and glass solar collector mounted on the roof, and a plumbing system that circulates cold water up to the roof so that it can be heated up to normal home water temperatures. Solar DHW systems are reliable, and make the best economic sense when water is heated by electricity or propane.
My guest this week is Peter Bliss, VP of Sales and Marketing of SunEarth. Since 1978, SunEarth has been designing, selling and installing solar hot water collectors, components and packaged systems. They have been through several generations of the “solar coaster” as solar thermal technology evolves, incentives come and go, and energy prices continue to rise. Please Listen Up to this week’s Energy Show on Renewable Energy World as Peter talks about the economics of solar DHW, as well as the technology and policy changes that can make these systems even more popular.
Headline: “Low Cost Rooftop Solar.” What’s not to like? If you’re a homeowner you can save thousands of dollars shopping around for the right installer and financing. If you’re an installer you are undoubtedly under competitive cost pressures -- and strive to find ways to stay competitive after 2016 when the federal investment tax credit goes to zero and utility rates change.
So why does a standard rooftop solar system still cost about $20k before incentives (about $14k after the ITC)? The good news is that prices for solar panels have plunged from $1,000 each down to about $200. Inverter and racking costs have also declined. But overhead costs -- items like marketing, sales compensation, contracts, financing documents, warehousing, engineering, back office labor and maintenance -- have not seen much of a reduction (or in some cases have actually increased).
For installers, it is possible to lower total installed costs -- mostly by simplifying and standardizing business processes, and taking advantage of new technology. Not only will these improvements save customers money, but they will also reduce the time it takes to complete an installation. And the great news is that these “overhead reduction” techniques are very inexpensive -- or free. Please Listen Up to this week’s Energy Show for five easy to implement tips for lower cost rooftop solar systems.
Toyota and Honda just announced their new fuel cell cars. Although these cars won’t be on the road for another year, their mere existence raises questions about the long-term future of battery-powered cars. Are battery vehicles just a temporary detour on our road to the Hydrogen Highway, or are fuel cells a last ditch attempt by the fossil fuel industry to greenwash their “well to gas station” infrastructure?
A fuel cell car is pretty much just like a battery-powered EV...except the fact that fuel cells are neither clean, cheap nor efficient. All practical fuel cell cars run on hydrogen. When you combine hydrogen with oxygen you get energy (heat in an engine or electricity in a fuel cell) and water. Pretty clean and elegant, so far.
But we currently get 95% of our hydrogen by “reforming” natural gas. The natural gas is combined with steam (essentially H2O), with the end products being hydrogen gas and CO2. So “reforming” is kind of like a school for bad fossil fuels. Fuel cell cars using reformed natural gas are about 50% efficient, so they release even more CO2 that would be released if we burned natural gas directly. Moreover, fuel cell cars requires an entirely new hydrogen infrastructure of reforming plants, hydrogen pipelines, hydrogen filling stations and vehicles.
One good thing about fuel cell vehicles is that they can be “filled up” in a matter of minutes, not the several hours it takes for today’s generation of plug-in EVs. But at the current rate of improvement in cost and performance of batteries, I doubt that fuel cells will ever catch up. For more about the comparisons between fuel cell and battery EVs, please Listen Up to this week’s Energy Show.
Solar panels are commodities — not very different than the bottled water you find on a supermarket shelf. Granted some panels are more efficient, some cost less, some may be easier to install, and some may have better warranties. But to the average consumer — and for that matter experienced installer — there is really not much difference between one manufacturer’s panel compared to another.
So why are some companies selling more solar panels than others? To a large degree it is the sales and marketing efforts they make to reach their initial customers: solar installers. Generating awareness, interest and sales for solar panels — as well as inverters, racking and installation services — is a textbook marketing challenge.
There is one person in the industry who has carved out a reputation for himself when it comes to marketing solar products: Tor Valenza (AKA Solar Fred). Tor literally hangs his hats these days as the Chief Marketing Officer at Impress Labs. Please Listen Up to this week’s Energy Show as Tor talks about the best (and worst) marketing practices at solar equipment companies, installers and financiers.
Rooftop solar panels only work when they are in direct sunlight. So if you have a partially shaded roof, the output of your system will be lower than if there were no shading. And if your roof is heavily shaded, then rooftop solar is probably not going to be cost effective.
The reduction in output that shading causes depends on the type of shading, the orientation of your roof, and the use of microinverters or optimizers (these module electronics can help reduce shading problems). The most common examples of rooftop shading include trees, chimneys, neighboring structures, and utility poles. A small amount of shading -- perhaps from a vent pipe or utility pole -- will not have much impact on overall system output. But trees or other structures can have a big impact. A good rule of thumb is the object creating shading should be twice as far away as it is higher than the panels.
There is a home around the corner from me with a solar system on the west roof, and a big Magnolia tree right next to the house shading all the panels in the afternoon (when the sun should be shining directly on the panels). These west-facing panels are illuminated by the sun in the morning, but at a very oblique angle (about 20 degrees). Because of the shading, the panels never get direct sunlight perpendicular to the panels; the 20 degree sun angle means that these panels are generating only about 34% of what they could generate if there were no shading.
I hope the solar company that installed this system gave the homeowner an accurate estimate of the output (or lack thereof) of these shaded panels. Otherwise this homeowner will be unhappy when they get their annual utility true up statement and realize that their savings were not what they were led to believe.
Installing solar on a partially shaded roof is really an economic question. Will the resulting payback from the system -- after factoring in lower energy output from shaded panels -- still be acceptable? It might make sense to install panels in a partially shaded location if the installation costs for these incremental panels are low and the electric rates are high. Please Listen Up to this week’s Energy Show on Cinnamon Solar's Website for practical, economic advice for homeowners who are thinking about solar on a partially shaded roof.
Fires in homes are generally caused by kitchen mishaps, heating system fires or electrical malfunctions. When it comes to fire safety, the solar industry's track record is excellent -- with only a few documented cases in which the solar system actually caused a fire (generally due to improper wiring or equipment malfunctions).
Unfortunately, when home fires do occur, rooftop solar panels can become an impediment to a firefighter's ability to safely and quickly put out the fire. Firefighters must turn off the power to the rooftop system so that the panels are no longer energized; this is not always possible with high-voltage DC systems. In many cases, firefighters vent the roof so that smoke can escape and they can pour water on the source of the fire. With solar panels covering the roof, firefighter's ability to vent the roof over the fire is limited.
Improving fire safety as it relates to rooftop solar systems is being approached from two directions. First, new solar panel, racking and inverter standards are going into effect that will make solar equipment even safer. Second, new fire and building codes are being implemented that improve firefighter access to rooftops with solar. Unfortunately, these new standards are complicated and make equipment more expensive; and new firefighter access requirements significantly reduce available roof space for solar panels. It's an issue that requires a compromise among firefighter safety, property damage and clean energy generation.
My guest on this week's show is Matt Paiss, San Jose Fire Captain and Line Training Officer. Matt provides safety training for firefighters, particularly as it relates to rooftop solar power systems. He's also very involved in the development of new UL standards and local fire safety codes. So please tune into this week’s Solar Energy Show for a firefighter's perspective on the challenges and benefits of rooftop solar power systems.
Here’s a nightmare for you: at night, when you’re asleep and you think things are quiet, there are vampires sucking power out of your house and increasing your electric bill. The fact of the matter is that every plugged in electrical device in your home uses a small amount of standby power -- even if you think these devices are off.
When I explored each room of my house with a wattmeter, here is what I found: · Computer devices used 66 watts: printer, cable modem, multiple wireless routers, laptop charger, mini-speaker · Communications used 16 watts: iphone charges in several rooms, cordless phone · Entertainment systems used 57 watts: flat screen TV, cable box, sound system, DVD player, subwoofer · Kitchen appliances used 6 watts: microwave, coffee maker, dishwasher · Other culprits used 23 watts: cordless vacuum, clock radio (remember those?), irrigation controls, garage door opener, furnace, thermostat transformer, doorbell transformer
These devices added up to 168 watts of 24x7 power. At my incremental electric rate of $0.25/kwh, these vampires sucked $368 out of my wallet last year. It is even worse if you have lighting controls, security cameras, extra fridges, wine coolers and IP thermostats. We have some solar customers who have over 500 watts of vampire devices – which in their top rate tier tacks on an extra $1,500 to their electric bill every year.
Please Listen Up to this week’s Solar Energy Show for ways to reduce your standby energy consumption without compromising your 21st century lifestyle.
Technologies, companies and business models in the solar industry come and go. But even in the relatively new solar industry, history repeats itself. Disappearing tax credits and incentives, financing scams, unreliable technology, societal doom (Y2k) and gloom (nuclear winter) -- it’s all happened before. We can learn a lot about building a sustainable solar businesses by talking to the solar contractors who have witnessed several of these boom and bust cycles over the past 20+ years.
My guest on this week’s Energy Show on Renewable Energy World is Pat Redgate, CEO of Ameco Solar. Pat has been installing solar thermal and solar PV systems at Ameco since 1974. Having successfully ridden the “solar coaster” for 40+ years, he has some terrific advice for solar customers (both residential and commercial) and solar installers who want to get into the business for the long term.
Please join me as Pat talks about the first wave of solar in the 70s and 80s, what happened when the tax credits disappeared, how he selects equipment to install for his customers, and his suggestions for running a successful local solar thermal and PV business.
According to Doc Brown, Marty McFly’s DeLorean needed 1.21 gigawatts to travel back in time. To put this in perspective, new gas power plants are about 0.5 gigawatts, typical large utility scale solar power plants are 0.1 gigawatts, and the average rooftop solar system is 0.000005 gigawatts (5,000 watts). Although it takes a lot of solar panels to generate the power our society needs, solar is now one of the cheapest and cleanest sources. And “clean and cheap” is now the world’s preferred power source: in 2013 the world added 143 gigawatts of new renewable energy generating capacity compared to 141 in new plants that burn coal, natural gas, or oil.
Fossil fueled power plants have not just taken a temporary back seat to renewables - we are witnessing a long term transition in the world’s energy sources. The price of wind and solar power is on par or less than fossil fuel electricity. Renewable energy prices are on a steady pace to get cheaper, while gas and oil will inevitably go up as supplies are constrained and climate change effects are considered. Coal plants are being decommissioned, and new nuclear plants are effectively doomed -- it took 36 years from start to finish for the last nuclear plant to come on line. Compare that to 45 days for a new solar power plant on your home’s roof, or three years for a utility-scale solar project.
Utilities are installing solar power plants to generate electricity for their customers because solar is cheaper. But this change in our energy sources will take many years, just as the complete transition from “horse and buggy” transportation to gas-powered cars took 50 years. As with other large-scale technological changes, customer economics will force the current incumbent energy providers to change (unlikely), or go out of business (more likely). It’s a virtuous cycle as more customers are satisfied with renewable power generation, and more people are employed in these industries. For more on this inexorable, economics-driven transition to a clean energy economy.
I’ve spent a lot of time over the past 15 years talking to homeowners about rooftop solar. More kitchen table chats and walks around the house than I can count. Some of the basic questions I hear again and again. Because they are new to solar, some of the most important questions do not even occur to homeowners.
On this week’s Energy Show we’re going to address some of the more obscure questions that homeowners should ask... and installers should be prepared to answer: Why do I need a building permit for solar? What happens if I run my electric meter backwards and don’t tell my utility? Can I use the power from my solar system during a blackout? Who covers the warranty on my solar installation and solar equipment? Is 3% or 4% or 5% a reasonable projection for electric rate escalation? If I sell my house, how will the new buyer value my solar installation? Will that tree to the south of my roof shade the system and reduce its output? Do I need to clean my solar panels? Is there a catch with a “no money down” deal? How much will I save with my solar system? I had a little roof leak last year? Is it OK to put solar panels on my roof?
We’re talking about religion this week. Did I get your attention? How about if we talk about climate change, more renewable energy, dirty fossil fuels and solar subsidies? OK, we’ve already covered these topics. But now the Pope has chimed in with his “On Care For Our Common Home” Encyclical. I’m probably the worst person to comment (I got kicked out of Hebrew School). But I did read all 180+ pages of his Encyclical. There is no doubt in my mind that the Pope’s analysis and commentary will definitely affect U.S. politics related to clean energy.
First, the Pope describes the problem succinctly: pollution and climate change. Some quotes: “Very solid scientific consensus indicates that we are presently witnessing a disturbing warming of the climatic system." “Problem is aggravated by a model of development based on the intensive use of fossil fuels." “Urgent need to develop policies so that, in the next few years, the emission of carbon dioxide and other highly polluting gases can be drastically reduced, for example, substituting for fossil fuels and developing sources of renewable energy." “Economic interests easily end up trumping the common good and manipulating information so that their own plans will not be affected (greenwashing)." "Whereas any genuine attempt by groups within society to introduce change is viewed as a nuisance based on romantic illusions or an obstacle to be circumvented (those pesky Climate Change nuts)."
He then continues with solutions that are both practical and grounded in economics: "We know that technology based on the use of highly polluting fossil fuels – especially coal, but also oil and, to a lesser degree, gas – needs to be progressively replaced without delay." "Until greater progress is made in developing widely accessible sources of renewable energy, it is legitimate to choose the lesser of two evils or to find short-term solutions (natural gas as a temporary bridge)." "Taking advantage of abundant solar energy will require the establishment of mechanisms and subsidies … The costs of this would be low, compared to the risks of climate change (renewable energy incentives)."
So what does this all mean? Clean energy supporters and environmentalists are happy to have the Pope on their side. Dirty energy proponents and climate deniers have to argue against the formalized position of the Catholic church...I’m sure the Koch brothers aren’t happy. Right wing Catholic politicians have to choose between agreeing with the Pope -- or accepting fossil fuel campaign money.
Overall, this Encyclical — and subsequent Papal speeches — will gradually dissolve the political right-left gridlock on climate change and the actions necessary to mitigate it. I am particularly looking forward to the Pope’s address before Congress in September (ironically, the Pope was invited by Speaker of the House Boehner). So please Listen Up to this week’s Solar Energy Show for more details on the Pope’s Encyclical and its positive impact on the continued growth of renewable energy throughout the world.
Things have been changing pretty quickly in the light bulb business. In the course of a few short years, Edison’s filament bulbs have become illegal, marginally more efficient halogen bulbs have become the default choice in hardware stores, twisty compact fluorescents (CFL) have pretty much had their day in the sun, and specialty LED bulbs are now inexpensive and available in virtually every shape, size and color.
When I researched residential lighting a few years ago my conclusion was to go with CFLs because they had the lowest operating costs - but you had to tolerate their slow start up and poor colors. Since then LED bulbs have plummeted in price. Moreover, one can buy LEDs that fit virtually every fixture and claim to work in dimmers. So now it’s almost a no-brainer to go with LEDs.
Nevertheless, there are still challenges with LED bulbs. Although they all indicate a 22.6 year lifespan, I have had a number of them burn out already. Not all are as dimmable as they claim. Some of the bulbs are too bulky or weirdly shaped to fit in existing features. And the color of the light is sometimes not as warm as conventional bulbs (which are no longer available). Please Listen Up to this Week’s Energy Show on Renewable Energy World as we survey the real-world advantages and disadvantages of the current crop of LED bulbs.
The sun is shining brightly on your rooftop solar panels (or the panels you hope to have). But how can you tell if those photons falling from the sky are actually turning into useful electricity? Since there are no moving parts to a rooftop solar system, it can indeed be difficult to tell if you are getting what you paid for. Fortunately, there are four easy ways to keep an eye on your system’s performance. Check the green light on your inverter, check to see that your meter is running backwards, check your electric bill, and check your monitoring system.
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If you have an ordinary string inverter (that big box hanging on the wall near your electric meter), all you need to do is make sure the green light is on and that the inverter’s display indicates that power (measured in watts) is being generated. Usually you should see peak output around noon, and on a sunny day this output will usually be about 75% of the rated DC output of your system.
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Another way to check your system’s operation is to see if your electric meter is running backwards on a sunny day -- but note that the amount of power you are sending back to the utility (usually in kw) is the net of what your solar generates minus what your house is currently using.
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You should also keep an eye on your monthly electric bill -- a sudden increase in kwh billings from your utility could be a sign that your system is not operating properly (or the weather was hot and your AC was cranking).
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Systems with monitoring are easier to manage, both for you and your installer. There are two types of monitoring: system level and panel level. System level monitoring involves installing a gateway between your inverter (or microinverters) and your home internet connection. The gateway sends inverter data up to a webpage where you can check your output (at any time) and energy production (during any interval). Panel level monitoring gives you even more granular data, but this type of monitoring requires a microinverter or optimizer on the back of every panel. Although slightly more expensive, panel-level monitoring makes it easier for you or your installer to make sure your system is operating properly. It is important to note that the most common solar service calls are due to monitoring problems, and these monitoring problems do not necessarily mean that your system is not producing power (usually there is just a problem with your internet connection or gateway).
For more on the benefits of monitoring your rooftop solar system, please Listen Up to this week’s Energy Show on Renewable Energy World.
People with rooftop solar systems almost always ask about using batteries to store their energy for nighttime use. Tesla recently announced an off-grid battery storage system, SolarCity announced a home backup power system, and a dozen other companies already have comparable products on the market. These announcements have re-energized (grin) the hype and excitement in this new product category. But are these systems practical and will they save you money?
For the vast majority of homeowners, the answer is “no” to both questions. Only if you have a completely off-grid application -- such as a cabin in the woods -- can the new generation of lithium ion battery backup systems combined with solar be more practical and cost effective than traditional lead acid batteries. If you are currently on the grid, energy arbitrage makes no sense at all: with current electric rates it is simply not cost effective to generate your own energy with solar during the day and use it at night (or buy cheap electricity at night and sell it back during the day). In a nutshell, the life cycle cost of the batteries outweigh any potential savings. If you are looking for backup power during a blackout, a generator is still the cheapest way to power your house for a few hours or a few days.
Nevertheless, there is no doubt that batteries will continue to improve, and control electronics will get cheaper and more efficient. Besides the current off-grid and backup power applications of home energy storage, there will come a time in the future when home energy arbitrage (buy low and sell high) and grid support services will make economic sense. If you’re curious about the practicality of home battery storage systems, please Listen Up to this week’s Solar Energy Show.
Unlike other home appliances, HVAC systems and vehicles, there is virtually no maintenance required for a well-installed rooftop solar system. So unless you are paranoid, or just cursed by bad luck, there is no need to pay anything extra for a service contract or scheduled maintenance.
Why are rooftop solar systems so reliable? First, because the solar panels themselves have zero moving parts, use tempered glass and anodized aluminum (better than most windows and skylights), and are covered by a 25 year manufacturer’s warranty. Second, because top quality microinverters carry a 25 year warranty and string inverters carry a 10 year warranty — and based on industry experience, the real-world performance of quality inverters has exceeded their warranty term. And third, because flashed rooftop mounting systems using all aluminum and stainless steel components will last at least as long as a homeowner’s roof.
If your last name is Murphy you may ask: “what could go wrong?” If you live in a dusty or dry area, you may want to have your solar panels washed periodically. Monitoring systems are susceptible to occasional internet communications glitches — but these communications glitches have no affect on your system’s energy output. If you have a string inverter, it is reasonable to expect replacements after 10-15 years (at Cinnamon Solar we regularly replace 10+ year old string inverters). Otherwise -- except for your roof wearing out -- you can expect 25+ year of trouble free operation of your system.
But if you are paranoid or cursed by bad luck, carefully check the terms of the maintenance agreements that are offered by your solar installer. And run the numbers yourself to see how much this “all inclusive” maintenance will really cost. The things that do go wrong are almost always excluded from coverage (such as panel cleaning or rodents chewing wires), and the things that are included (such as a defective inverter or solar panel) are almost always covered by the manufacturer’s warranty. So please Listen Up to this week’s Energy Show on Renewable Energy World for a practical overview of home solar maintenance requirements.
A rooftop solar system is an expensive up-front investment. The typical 5 kw system costs about $20,000 – or $14,000 after the 30% investment tax credit (which expires on 12/31/16). Solar leases and loans have made it possible for hundreds of thousands of homeowners to go solar without any initial up-front investment. Now there is a new solar financing product called PACE that makes it easy for just about any homeowner to qualify for a low interest solar loan.
PACE stands for Property Assessed Clean Energy. A PACE loan is repaid as part of a homeowner’s annual property tax assessments, and is automatically transferred to the new owner as part of the property. For example, a $20,000 rooftop system could be repaid in 15 annual tax bill payments of about $1,500. If the home were sold after ten years, the new owner would simply take over the remaining five years of principal and interest payments. Interest rates and terms on PACE loans are about the same as standard bank loans. Since the loan is secured, interest payments (and sometimes principal) are tax deductible. What’s the hitch? PACE loans are not yet available everywhere. But as they proliferate, PACE loans will become another popular way to finance rooftop solar.
My guest this week is Cisco DeVries, CEO of Renewable Funding. Cisco pioneered the use of PACE financing for rooftop systems in Berkeley in 2007, and is now working to roll out PACE for both residential and commercial installations all over the U.S. Please Listen Up to this week’s Energy Show for more details on how a PACE loan could work on your own home – or your next solar project.
We've made great progress with renewable energy -- but from an almost zero base we still have a long way to go. Fortunately, the path is clear. California is already over 12% with a combination of hydroelectric, wind and solar (unfortunately not much hydro this year). Getting to 50% only requires the deployment of existing technology. But can we get to 100%?
It depends on whom you ask. Our society has made these transitions before, with new energy technologies disrupting the incumbents. 200 years ago 95% of our energy came from wood; by 1900 it was 50% coal; and by 2000 it was a mix of coal, nuclear, oil and gas. The Union of Concerned Scientists have published a plan for renewable energy to provide 80% of our electricity by 2050. Why stop there? Solar enthusiasts like me want to go for 100%.
This goal is possible: there is a recent Stanford paper entitled “100% Wind, Water, Sunlight (WWS) All Sector Energy Plan for the 50 U.S. States.” This plan is surprisingly realistic when one considers the rapid rate of solar deployment coupled with storage and new energy control technologies such as demand response and dynamic energy pricing. Costs are not the problem because these these technologies are being deployed now. The real issue is political will -- and incumbent energy supplier resistance. Listen up to this weeks Solar Energy Show as we talk about the practical steps we need to take to get to a society powered 100% by renewable energy.
Electric vehicles are great: they’re affordable, great for the environment and low maintenance. And where electric rates are low — or if you have rooftop solar power -- EVs are cheaper to drive per mile than gas-powered cars. But you have to think about how you will charge your EV: there are only a few thousand public charging locations in the U.S. — compared to 100,000 gas stations.
When you buy an EV it comes with a 120 volt charger that you can plug into just about any outlet. These 120 volt chargers are convenient, but can take awhile to completely charge your battery — about 12 hours for a Chevy Volt, 17 hours for a Nissan Leaf and 59 hours for a Tesla. So if you drive a lot you will definitely need a higher capacity charger, either at home or at work.
There are three choices for EV chargers: Level 1 chargers (120 volts), Level 2 chargers (240 volts) and Level 3 chargers (480 volts). Level 1 chargers are cheap and work just about everywhere, whereas Level 3 chargers are fast, but expensive and only work on certain EVs. Level 2 chargers are probably your best bet for home charging, but generally still require an electrician (and possibly utility permission) to install. Please Listen Up to this week’s Solar Energy Show for the limitations and practical advice about charging up your electric vehicle.
It’s the environmentalist’s third rail question: “Should we promote nuclear power as an expedient way to reduce CO2 emissions?” On the one hand, nuclear power generates electricity with almost negligible CO2 emissions — potentially a good way for our society to reverse the current global warming trends. On the other hand, nuclear power is…well…nuclear. Problems related to waste disposal, proliferation and high costs have not been solved, and we still have the occasional disaster.
Nuclear technology continues to improve. Today we have more efficient reactors, lower cost modular designs, safer fuel cycles, better materials and control systems, and a heightened awareness of reliability and safety issues. We also have a determined and well-funded nuclear industry pushing the “restart” button. But alternative sources of electricity — particularly solar and wind — also continue to improve. Moreover, developments in more cost-effective storage are starting to negate nuclear’s biggest base load generating benefits.
The nuclear question is not only about costs and technology, it’s also about anticipated trends in our electrical distribution system — particularly what types of companies will be around a dozen years from now installing power plants of all sizes. The surging solar industry is probably the biggest long term threat to a nuclear renaissance. Please listen to this week’s Energy Show for my perspective on the future of nuclear power, especially in light of practical and cost-effective solar power and battery storage.
Most of my rooftop solar customers express a preference for buying "Made in the U.S.A.” solar panels. And they were willing to pay a premium for domestically manufactured panels. But because there were very few U.S. manufacturers -- and hundreds of overseas companies manufacturing panels at lower prices -- the prices for U.S. made panels were always significantly higher.
For a variety of reasons, the price gap between U.S. made solar panels and overseas made solar panels has been narrowing. Tariffs on certain manufacturers has been a factor; unfortunately, these tariffs have been one of the most contentious and divisive issues in the solar industry over the past three years. But a bigger factor has been the gradual resurgence of U.S. manufacturing of all types — capitalizing on automation, low overhead operations and shorter supply chains.
My guest on this week’s Solar Energy Show is Mamun Rashid, Chief Operating Officer of Auxin Solar. Auxin began contract manufacturing of solar panels in the U.S. in 2008, and now they are finding success with their own brand of crystalline panels. Please Listen Up as Mamun explains how a California-based company can compete on both quality and price with overseas manufacturing by keeping their overhead low and leveraging the latest in automated production equipment. Full disclosure, we use Auxin solar panels at Cinnamon Solar for many of our projects, and have successfully partnered with them for Spice Solar integrated racking.
I bet you don’t know that there is a home improvement investment that you can make that will increase the value of your house more than the investment cost. It’s not remodeling your bathroom (2% return). It’s not landscaping with a designer (break even). It’s not remodeling your kitchen (2% loss). It’s rooftop solar (43% return). Surprise!
A recent study by Lawrence Berkeley Labs clearly shows that your home's value will increase much more than a rooftop system costs. “Selling into the Sun: Price Premium Analysis of a Multi-State Dataset of Solar Homes” found that a home’s value will increase based on the size of the rooftop solar system at the rate of $4/watt. So for a typical 5,000 watt system that costs $14,000 after the 30% Investment Tax Credit, a home’s value would go up by $20,000. This is a big deal for anyone considering solar as an investment.
But there is one catch: that $4/watt increase in value only applies if the system is owned by the homeowner (unsecured and secured loans, as well as PACE loans, also apply). However, if there is a third party who owns the system (the case with leases and PPAs), the $4/watt valuation metric does not apply. Whether new home buyers want solar because of its “green cachet,” monthly energy savings, environmental benefits, or just poking their local utility in the eye — it is now clear that rooftop solar is a good home investment. So please Listen Up to this week’s Solar Energy Show for more about LBL’s groundbreaking solar real estate study.
For a homeowner, it’s a simple question. But in order to answer the question accurately, solar installers need to make a number of assumptions -- as well as gather some pretty detailed information from a homeowner. Often, by the time these data gathering questions are answered, the homeowner is even more confused.
The ideal system size that a homeowner really needs is bounded by two parameters. First, the number of panels that will physically fit on the roof -- taking into account applicable setbacks, wiring issues, shading, structural requirements and aesthetics. And second, the size of the current (or projected) electric bill (only the utility will benefit if the resulting electric bill is negative). Naturally, a third parameter — the homeowner’s budget — is almost always a factor.
Of course, a lot of number crunching goes on behind the scenes as a good installer determines the energy output, annual savings, and financing options for the customer. And tradeoffs are usually offered between higher efficiency/more expensive panels and inverters, and lower efficiency more affordable equipment. Please Listen Up to this week's Solar Energy Show as we go through a simple three step process to determine how many solar panels a homeowner needs: first, determine how many panels fit on the roof; second, determine how many panels it will take to zero out the electric bill; and third, find a trustworthy solar contractor with fair pricing.
Every residential solar contractor's website talks about their experience, knowledge of rooftop solar products, and happy customers (full disclosure: including mine). Although many states have licensing requirements for contractors, some of these requirements are not specific to rooftop solar work. So how can you find out if a solar contractor really has the right training for the surgery necessary on your roof?
To address this training and certification need, the North American Board of Certified Energy Practioners, or NABCEP, was founded in 2002. Since then they have certified thousands of solar PV and solar thermal installers, as well as solar PV salespeople. In order to become certified, a solar installer or salesperson must document the experience they have, and then must pass a rigorous examination specific to their certification category. As a result of these requirements -- and the reputation that NABCEP has built over the past dozen years -- NABCEP Certification is now considered the "gold standard" for solar training.
My guest on this week's Energy Show on Renewable Energy World is Richard Lawrence, Executive Director of NABCEP. With the rapid growth in the U.S. solar industry, Richard has been quite busy keeping up with the training needs that individuals and companies require -- and homeowners often demand. Please Listen Up as Richard explains how new entrants into the solar industry can become certified by NABCEP, and how NABCEP is keeping up with new solar technologies, building codes and safety requirements.
Solar panels have been on the market in the U.S. for over 25 years. Without exception, all of the manufacturers of panels on the market today tout their reliability, quality and long term durability. Nevertheless, on a per watt basis, these panels generate almost exactly the same amount of energy over a 25 year period.
Manufacturers conduct reliability tests, certify their panels, and conduct bankability studies. But even with these tests, industry experts cannot distinguish significant long term performance differences among solar panels. Being among the Top Ten worldwide manufacturers should imply a certain degree of stability and bankability. Surprisingly, looking back to 2001, fewer than 50% of the Top Ten manufacturers are still in business.
To an ordinary consumer, distinguishing among different solar panels is almost impossible, and the mumbo-jumbo language that solar salespeople use just confuses consumers more. On this week's Energy Show we take a consumer's perspective regarding their choices among different solar panels. Listen Up to hear Barry's advice to homeowners on selecting solar panels for their rooftop installation.
If you live in a location with high electric rates and local incentives, it's very likely that the economics for a rooftop solar system are favorable. But many people don't have the $20-25k cash that these systems typically cost. Fortunately, over the past few years a range of new residential solar financing options have been developed. These new financing options have spurred the growth of rooftop solar throughout the U.S.
In addition to a cash purchase, solar financing options also include a home equity loan (secured) or ordinary bank loan (unsecured), lease or Power Purchase Agreement (PPA), and Property Assessed Clean Energy (PACE) loan. Although the details of these financing options can get pretty complex, with some "back of the envelope" calculations you can figure out the economics for yourself. First, add up your total electric bill for the next 25 years, then subtract out the cost of the system (either up-front cost or periodic payments) to get the total lifetime benefit of the system. You will also need to consider what happens when you sell your house, and any special contractual terms (such as escalation rates or warranty provisions). Because most solar equipment is reliable and guaranteed for 25 years, maintenance (except periodic washing) is usually not an issue.
In general, up-front cash purchases offer the best Return on Investment (ROI). Home equity loans (now that the real estate market has recovered) and PACE loans (if they are available in your location) offer the next best ROI option. Lease/PPA purchases are a great "no money down" alternative if you don't have available cash or don't qualify for a bank loan. Listen up to this week's Energy Show for a practical and candid overview of your residential solar financing options.
Homes are billed for electricity based on the amount of energy they consume (measured in kwh). But commercial facilities often get an additional charge for the peak amount of power they consume during each month (measured in kw). These demand charges are designed to compensate the utility for the peak generating capacity that they must provide when large motors, air conditioners and other commercial processes are started up (power draw from motors is highest when the motors start).
For example, a medium commercial customer may pay a demand charge of $20 per kw based on the peak usage in any given 15 minute period during a month. So if they had several large industrial processes start while their air conditioning and lighting was also operating, they could experience a peak power draw of 200 kw -- and they would be billed for a $4,000 demand charge that month.
These demand charges can be dramatically reduced if large equipment is not started within the same 15 minute time period, and if other loads (such as air conditioning and EV charging) are temporarily shed (turned off). Demand charges can also be reduced if there is battery storage that can be quickly activated so that the spike of power is provided locally (by the customer's batteries) -- instead of by the utility.
Surprisingly, the fastest growing market for battery storage systems is for applications that reduce demand charges or provide other grid power support -- NOT to store daytime solar energy for night time use.
My guest on this week's Energy Show is Vic Shao, CEO of Green Charge Networks. They have developed software and control systems that sense when demand charges are reaching a peak (by measuring current draw on large circuits), and then activate a battery storage system to provide an alternative source of power so that the extra kw demand is not supplied (and billed) by the utility. Please Listen Up as Vic explains how commercial customers can reduce their electricity costs by combining battery storage and control systems to reduce demand charges.
It's getting to be that time of the year again -- tax time, that is. As all new rooftop solar homeowners should know who purchased a system in 2014, they are eligible for a Federal Investment Tax Credit of 30% of the cost of their system. This tax credit is good for both solar PV and solar thermal (hot water) systems. The solar ITC applies to the owner of the system, which is the homeowner for purchased systems or the leasing/PPA company for systems that are owned by third parties.
The solar ITC is arguably the most important incentive to solar customers, but it goes to zero on January 1, 2017. Claiming the credit on your tax return is surprisingly easy. All you need is the complete set of invoices from your installer that summarizes your qualified costs for your system -- then you can reduce your 2014 tax bill by 30% of those total costs. For example, if your purchase price for the system installed in 2014 was $20,000, you get to reduce your 2014 tax bill by $6,000.
So Listen Up to this week's Energy Show on Renewable Energy World as we go over the rules that apply to this tax credit, and fill out IRS Form #5695. And finally, although solar guys like me understand the basics of the 30% Solar ITC, please remember to get advice from your tax professional before filing.
The worldwide demand for energy is almost inexhaustible. Couple that demand with the need for clean energy -- and energy we can afford -- and the picture gets a lot more complicated. Fortunately, good market research helps us to get some perspective of the potential for PV to meet these energy demands.
There are two types of market research available in the solar industry: primary research and secondary research. Secondary market research related to the solar industry is relatively easy to find on the internet. This information is based on studies that were conducted by industry groups, government agencies, or extracted from other publicly available sources. This secondary information is often generalized and not targeted towards addressing a specific business need. On the other hand, primary market research studies are more specific, particularly useful in the solar industry to answer a specific question.
For example, one can find secondary research on the percentage of homeowners who lease a rooftop system as opposed to buy a system. But it takes a more specific series of questions -- often as part of a survey or focus group -- to determine how satisfied homeowners are with their lease or purchase of a solar system.
Paula Mints has specialized in primary research in the solar industry since 1997 -- most recently as the Chief Market Research Analyst with SPV Market Research. Please join me on this week's Energy Show on Renewable Energy World as Paula talks about her experiences in the "solar coaster," and talks about some primary market research insights that come directly from manufacturers, developers, installers and customers.
With energy prices changing so quickly -- and new technologies ramping up into the marketplace -- the "conventional wisdom" about energy is often wrong. I've been as guilty as other people when it comes to trusting emotions and public opinion about energy, as opposed to real math and science.
See if you can guess the answer to these ten simple questions:
Are electric cars cheaper than gas cars? Is rooftop solar expensive? Will you save money if you buy new energy saving appliances? Will gas prices stay low? Is solar for no money down a good investment? Are LED bulbs expensive? Do electric utilities like customer energy efficiency? Is clean coal cost effective? Is nuclear power the best baseload power source? Has energy efficiency reduced our per capita energy usage?
If you answered "yes" to ANY of these questions, I suggest you listen up to this week's Energy Show. The conventional wisdom is wrong -- and all of these energy saving ideas are myths.
When someone gets a new rooftop solar installation, the second question they always ask is "how often do I need to clean my solar panels." We'll answer that question on today's show -- taking into account the different effects of rain, dust and electric rates (BTW, the first question people always ask is "how do I read my electric bill;" but that's a topic for another show).
Rooftop solar panels get dirty primarily from wind-blown dust and pollen. Birds are usually not a problem unless your last name is Hitchcock and you live in Bodega Bay. As panels get dirtier, their output declines. A small amount of soiling -- say a light dusty film -- may only cause a 5% output decline. However, when panels get very dirty -- perhaps in an agricultural area or location that does not get regular rainfall -- the output decline can be greater than 20%. A good heavy rainstorm will usually wash away most of the accumulated soiling.
I use the term "usually" because on panels that are tilted at about 5 degrees or less, the rain may leave a puddle of muddy debris along the lower edge of the panel. When this puddle dries, sometimes a thick layer of dirt accumulates along the lower row of cells (sometimes moss and weeds may even grow in these areas). Depending on the design of the system, this small accumulation of dirt can cause a very significant decrease in output.
So the answer to the question: "how often should I clean my solar panels" really depends on five factors: your location (does it rain regularly or only during certain months), the tilt angle of your panels (steeply tilted panels tend to stay much cleaner than panels that are close to horizontal), the amount of wind blown dust, your electric rate (if your electric rate is high then it is more worthwhile to clean your panels), and the cost to clean your panels. Please listen to this week's Energy Show on Renewable Energy World to get a better understand of how often -- if ever -- you need to clean your rooftop solar panels.
Outdoor pools are great on hot summer days - the kids are occupied and the water is refreshing. And as the summer progresses, the water heats up to a comfortable level. But on chilly spring and fall days the cool water in that pool amounts to nothing more than a 30,000 gallon decoration in your back yard. Plus you still may need to run the electric pool pumps to keep the water clean.
Because the water is cold in the spring and early summer, your options are to swim (or not to swim) in cold water, burn $50 in extra natural gas to heat your pool, or install a solar pool heating system. It's no surprise that my preferred solution is to install solar pool heat collectors. These pool heat collectors are easily connected into your pool's existing circulating pump system, and can easily maintain your pool at a comfortable 80 degrees F for most of the year.
My guest this week is Freeman Ford, one of the founders of FAFCO. FAFCO is the oldest and largest manufacturer of pool heating systems in the U.S. They are based in Chico, California, and have been manufacturing their special black polymer pool solar panels for over 40 years. In addition to their pool solar panels, FAFCO also has a line of solar DHW panels as well as a new hybrid solar thermal-PV panel. Please join me on this week's Energy Show as Freeman talks about our country's lack of commitment to clean, renewable energy -- and the solar industry's perseverance in the face of political paralysis when it comes to a transition to a clean energy economy.
Many of the most significant industrial and technological innovations in the U.S. were discovered, commercialized and expanded with government support. Turn the clock a century or two and you can see how the government was behind oil drilling and refining, transcontinental railroads and our electric grid. More recently the government's been successful with the space program, the internet and the biotech revolution. And these government efforts continue with solar. To quote the DOE: "In 2011, the U.S. Department of Energy's (DOE) Solar Energy Technologies Office (SETO) was tasked with achieving the goals of the SunShot Initiative: to drive down the cost of solar electricity to be fully cost-competitive with traditional energy sources by the end of the decade." [no one else uses verbs like "tasked']
Suffice it to say that over the past few years SunShot has already been the motivating factor behind dozens of solar innovations, including new financing concepts (Connecticut Clean Energy Finance and Investment Authority's "Green Bank,"), new flat roof and sloped roof PV mounting systems, clever CSP technologies, SolarTech's work to reduce permitting costs, and the Rooftop Solar Challenge. There is considerable momentum behind the dozens of projects that are in the midst of their funding stages, may of which are focused on making solar more affordable by reducing soft costs.
SunShot staffers get into the field to understand real world problems and potential solutions. Sometimes that "field" is a steeply sloped roof -- which is where I started this week's interview with Minh Le, the Director of SunShot. After we moved to a more stable platform on the ground we had a good opportunity to talk about the overall SunShot program and how they reach out to solar industry participants. Please join me on this week's Energy Show on Renewable Energy World as Minh Le talks about SunShot's progress in reducing solar hard costs (equipment) and soft costs, as well as their efforts to help new companies and technologies get into the hands of customers where they can do the most good.
Over 95% of climate scientists have concluded that CO2 is the primary cause of global warming. Solving the problem requires a dramatic reduction in CO2 emissions. Some people are altruistic, but almost all businesses are bottom line oriented and will not reduce their CO2 emissions unless they have an economic incentive to do so. There are two realistic incentives: taxing CO2 emissions or setting up a cap and trade program for CO2. Since increasing taxes is politically unfeasible, the most practical approach is with a cap and trade program.
The U.S. Environmental Protection Agency implemented a cap and trade program for sulfur dioxide (the primary contributor to acid rain) in 1995. This program was a great success, and essentially eliminated the acid rain program. California passed AB32 in 2006 to accomplish the same goals for CO2 emissions. This law sets a cap on emissions from almost all sources, and gives polluting companies a certain number of allowances. If companies reduce their CO2 emissions (with renewable power generation, more efficient processes or smokestack scrubbers), they can trade these emissions to companies that still pollute.
Many California companies succeeded in reducing their emissions. In fact, utilities installed so much wind and solar (courtesy of their RPS requirements) that they now have excess allowances to trade. But the gas refining industry didn't act, and starting on January 1, 2015 they will have to purchase extra allowances. How much? When a gallon of gas is burned it emits about 20 pounds of CO2, which is 0.009 tons. At the current market price of CO2 allowances of $12/ton, that extra CO2 amounts to about 11 cents. So the downside of cap and trade is that the price of gas in California is likely to go up by about a dime. The upside is that we get cleaner air and an even stronger green economy.
But not everyone wants this outcome. In particular, the oil and gas refining industry tried to suspend AB32 in 2010 when they sponsored Proposition 23 (which was defeated by 62% of voters). This year they are sponsoring AB69, which will delay the application of cap and trade to transportation fuels. It's shaping up as a battle between deep-pocketed dirty fuel polluters -- and just about everybody else in California. I'm hopeful that California's cap and trade program continues to succeed, and maybe someday soon will be adopted by the other 49 states. Please join me on this week's Energy Show on Renewable Energy World as we talk about the real economic impact of cap and trade.
Solar modules started out as fairly simple moisture-proof sandwiches of glass, silicon cells, glue and backsheets -- with a junction box that contains a few diodes to bypass defective or shaded cells. No fancy electronics in the early days. Then power electronics circuitry crept into early inverters -- to the point now where all inverters contain hundreds of electronics chips to provide various optimization, communications and safety functions. Now that many installations use microinverters or optimizers, every single solar panel has its own collection of electronics chips.
Power electronics for solar modules are generally designed with 50-200 general purpose integrated circuits and related components. Like almost all other electronic products, microinverters and optimizers were all initially designed with discrete components -- but then, as sales volumes increase manufacturers started to include more specialized components. Think about the first PCs and all the components that were soldered onto internal circuit boards. Now most of the functionality of PCs (and cellphones and TVs and other mass produced electronics) are provided by a few customized chips made in very high volumes. The same miniaturization and cost reduction trend, from hundreds of discrete general purpose components to dozens of specialized power electronics chips, will occur with power electronics for solar applications.
As Intel, AMD, Broadcom, Nvidia and others have shown, providing specialized chipsets to electronics manufacturers is a good way to reduce costs and improve performance. It's a geeky business, but one that has made our laptops and cellphones so ubiquitous. Solantro Semiconductor has staked its future on providing chipsets for solar power systems, as well as related energy storage and communications functions. Because they are optimized for miniaturized power electronics applications, Solantro's solar chipsets will be cheaper, more efficient and more reliable than ordinary power electronics composed of hundreds of chips. My guest this week is Antoine Paquin, CEO of Solantro Semiconductor. Please join me on this week's Energy Show on Renewable Energy World as Antoine explains how specialized chipsets for solar power applications will help make solar systems cheaper, smaller and more efficient.
Architects are in the driver's seat when it comes to building new homes or overseeing major remodeling projects. Although they are familiar with rooftop solar, their designs generally do not include solar panels. Whether it's because of cost, technology or aesthetics, it's a big opportunity that is lost to almost all new homeowners.
Fortunately, this reluctance to include solar panels as a standard feature is beginning to change. Some national homebuilders offer solar as a standard option, and the overall economics of rooftop solar continues to improve. A recent study has found that the single most important factor driving whether a given homeowner installs solar is peer influence -- essentially, whether their neighbors have solar, also. So new home buyers, custom home builders and home remodeling companies are more likely to ask their architects for rooftop solar.
My guest this week is Marvin Bamburg, the principle at MBA Architects, a San Jose-based residential and commercial architecture firm. His firm has been incorporating rooftop solar in his designs for over a dozen years. Please join me on this week's Energy Show on Renewable Energy World as Marvin provides an architect's perspective on incorporating rooftop solar in the design, sale and construction process for residential homes.
Solar PV customers understand that they can generate cheap electricity with rooftop solar. That electricity is good for lighting, appliances, air conditioning and other household uses. But homeowners often ask about heating their homes with solar. The answer used to be installing a solar thermal system with rooftop solar panels generating hot water (stored in a tank) or hot air (stored in a bed of rocks or other thermal mass). But now there is another option: heat pumps combined with rooftop PV.
Two trends are making this type of system cost effective. First, rooftop PV systems now generate electricity inexpensively, often much less than what you would pay from your local utility. Second, there is a new generation of smaller, modular heat pumps called "mini-split systems" that allow you to heat and cool a few rooms at a time, instead of your entire house. The combination of cheap PV electricity and a zoned approach to heating and cooling are often less expensive than natural gas heat and central air conditioning.
Heat pumps draw on existing heat reservoirs, usually ambient outdoor air, underground water sources or pipes buried outdoors. When these heat reservoirs are in the range of 45 to 55 degrees F, heat pumps can be quite efficient. So they work best in temperate climates -- not in cold areas of the U.S. Nevertheless, even in cold climates a ground or water source heat pump with PV can be more efficient than gas or oil heat (and certainly cleaner). As PV costs continue to decline and split systems proliferate we can expect to see more and more homes relying solely on rooftop PV for their energy use. Please join me on this week's Energy Show on Renewable Energy World as we talk about the perfect match between heat pumps and rooftop PV.
Solar panels keep getting more efficient. That's a great thing. But they can't communicate, can't adjust to environmental circumstances, and don't have automatic shutdown capabilities. Fortunately -- and with apologies to the Farrelly brothers (who seem to have similar limitations) -- solar panels aren't getting any dumber. Many of the newest solar panels are equipped with optimizers, either built into the junction box or attached as a separate component to the back of the panel. Microinverters (which convert the DC output of a panel to AC) provide the same basic benefits at similar costs; however, unlike microinverters, optimizers operate on the DC side of the system and are always connected to a central or string inverter.
These optimizers, or power electronics as their also called, provide three basic functions. First, they optimize the output of each panel by adjusting the current and voltage generated by each panel. If there is a weak panel operating at a low current, the optimizer on that panel can lower the voltage across that panel (thereby increasing the current) and prevent that panel from affecting the current of the other panels in the string. Second, optimizers have communications capabilities so that the installer or system owner can see the performance of each individual panel. And third, some new optimizers provide code-required automatic DC shutdown capabilities to prevent arcing and fires.
As with many new solar technologies with high initial costs and unproven benefits, optimizers got a relatively slow start. But as production volumes increased, prices came down and operating capabilities were improved, more and more installers began to use them for both residential and commercial projects. Perhaps the biggest breakthrough came as panel manufacturers began to integrate optimizers into the junction boxes - this step significantly reduced both parts costs and installer labor.
My guest on this week's Energy Show on Renewable Energy World is Zvi Alon, Chairman and CEO of Tigo Energy, based in Los Gatos, California. Tigo is one of the pioneers in the optimizer business, and is getting a lot of traction in the marketplace as more panel and inverter manufacturers build Tigo technology into their products. So listen up to this week's show as we explore the costs and benefits of this latest generation of solar panel optimizers.
Ahhh. The Holy Grail of Customer Acquisition. Maybe it's low price ... great company reputation ... special technology ... brand name products ... ubiquitous marketing? I've tried all of them and they all work, to a degree. But these tactics are not cheap, consistent or scalable.
There is an answer, one that is pretty much right in front of our eyes. Research into this topic is described in the following paper: “Spatial Patterns of Solar Photovoltaic System Adoption: The Influence of Neighbors and the Built Environment.” This research was spearheaded by Dr. Kenneth Gillingham, a professor of economics at Yale University. Dr. Gillingham is not an ivory tower solar newbie. He's been doing research in the solar industry for over a dozen years going back to his days at Stanford. Interestingly, one of his projects was crunching the numbers in an enormous spreadsheet that led to the economic justification for the California Solar Initiative.
Ken's research confirms that if your neighbor has rooftop solar, there is a much greater chance that you will have solar (or want to get solar). Rooftop systems tend to cluster in a neighborhood, regardless if these neighborhoods are wealthy or liberal. It's almost as if solar is contagious! Please join me on this week's Energy Show on Renewable Energy world as Ken explains the way in people are influenced to go solar, which is termed the Diffusion Effect. So listen up to this week's show for some practical tips on finding new customers and reducing your customer acquisition costs.
Hurricanes. Blizzards. Earthquakes. Tornadoes. They've all clobbered populated areas over the last few years, resulting in extended power outages, fuel shortages and even lack of potable water. But people live comfortably in completely off-grid locations, generating their own electricity, using sustainable sources for heat, and even recycling their water.
These off-grid systems are gradually creeping into mainstream America. Generators are sold in some supermarkets, wood stoves are becoming popular heating options, people are learning how to recover and re-use grey water, and battery backup solar power systems are being rejuvenated by inexpensive batteries coupled with steadily increasing utility power rates. Inevitably, prices for these technologies will become more and more affordable -- just as electricity, gas and water become more expensive.
Our special guest for this week's show is Tod DuBois, CEO of Sangha Energy. Tod's company specializes in off-grid living systems, including battery-backup solar power, generators, and grey water recovery systems. Tune in to this week's Energy Show as Tod and Barry talk about your options for sustainable electricity, heat and water - even in your suburban jungle.
Utility scale solar has historically been the biggest market for solar power in the U.S. Currently, most of the largest plants are located in the southwest U.S. states where there is plenty of sunny, relatively unused land. The largest of these projects are slightly over 500 megawatts using in the neighborhood of 2 million solar panels. Thats a lot of solar panels -- but also a lot of solar panel racking.
On any large ground mounted project, most of the on-site labor relates to installing the solar panel racking (by comparison, installing the panels on the racks and wiring them together goes relatively quickly). As the solar industry strives to reduce costs, less expensive and easier to install racking becomes critical to the financial benefits of a project. The traditional galvanized pipe in concrete pier mounting structures have become a thing of the past.
One such innovation comes from Solar FlexRack. In 2009 they designed a ground mount racking system that ships compactly, then expands on-site like an accordion. The result is a drastic reduction in the amount of field labor required to bolt the racking components together. Steve Daniel, EVP of Sales and Marketing at Solar FlexRack is our guest this week on the Energy Show on Renewable Energy World. Please join me as Steve discusses the benefits of easy to install ground mount racking, and talks about the value-added services that are necessary to provide turnkey solutions to utility scale customers.
We're in the middle of winter. But pretty soon the rain will stop, the snow will melt, the home and garden shows will gear up and solar customers will start to plan their investments for the year. At the same time, solar companies of all sizes will remind their customers that the tax credits are going away and they better "buy now" to lock in pricing at these low rates.
OK, one can pretty much take these predictions to the bank. But what will happen in the solar industry in 2015? What kind of mergers and acquisitions activities will we see? How will the "long tail" of small installers fare against the big national installers? Will we get an extension of the ITC, or will a Republican-dominated Congress try to sideline renewables and keep drilling? Will the residential solar leasing curve flatten in favor of loans and cash purchases? What impact will tariffs have on the prices of modules. Will BOS costs continue to fall? Who will win the Super Bowl?
I don't know. But I can guess. I've peered through my cracked crystal ball and ten predictions have come into focus (all except the Super Bowl winner). So listen up to this week's Energy Show on Renewable Energy World for my perspective on the solar industry's prospects for 2015.
In our opening Energy Show we discuss frequently asked questions about residential solar.