March 2010

By Tyler Michael
Director/New Solar Homes Division, HelioPower

How much solar do I need?

This is the first question that we hear when asked to design solar for a new custom home. If you get an answer to that question from someone who does not ask you at least four or five questions back, you might consider showing them the door in a hurry before either of you wastes too much of your time. A good solar contractor will always carefully prioritize the customer’s interests.

Generating more electricity for a residence than is required to run that

New solar home installation by HelioPower

residence is not a very good way to spend money. Utilities are increasingly being called upon to pay for “over-production” by residential customers; however your best value is eliminating only the power you actually use. Most people building their “Dream Home” tend to overestimate the energy requirements of their new home because they are thinking in terms of their older home’s requirements.

Why do people overestimate electrical use in their new home?

In most cases, the new home is substantially larger than the old one. Naturally, there is good reason to assume that if the new home is twice as large, the energy required to run that home will be greater. This is not necessarily the case. In California and in most other states there are far more stringent “Energy Efficiency Requirements” in place for building new homes than were in place when the owner’s previous residence was built. Before you can get a building permit in California, you must show that some minimum energy efficiencies have been designed into the home.

For clarification, speak to your architect about your “Title-24” or CF-1-R form. Because of these design requirements, a 3000 square foot home built in 2010 is likely to require about 60% of the electricity that the same size home, with the same amenities built prior to 1985, will require. This difference is not quite as evident in the mildest climates. 

Some of the most important energy efficiency improvements in recent materials and design are:

• Radiant barrier roof sheeting
• Higher insulation ratings
• More efficient HVAC Systems
• High efficiency lighting systems, including activity sensors
• Low ”E”  windows and doors, with better sealing
• More efficient pool pumps

While all of the above greatly reduce electricity loads, there is still the ”Lifestyle Factor” to consider in calculating true energy usage. Your personal habits are an important factor. Just because we design homes with automated systems and better features, there is nothing that will guarantee the occupants will not override the automated controls or ignore the opportunities for energy savings built into the new home. Your energy consumption in your own home is still, and rightly so, your own business. If you choose not to take advantage of the systems in your home you may not realize the benefits of those systems.

Here are some questions that you should hear when a solar contractor discusses sizing a solar plant for your new home:

1. How much (kWh) electricity do you use now in your current home?
2. How many square feet is your old home?
3. How any square feet is your new home?
4. Are those homes in the same “Climate Zone”?
5. Will there be the same number of occupants with the same habits?
6. What are the ages of the occupants? (Small children will grow up to use more energy, and elderly occupants may have special comfort requirements.)
7. Are there “guest rooms” or other parts of the home that will not be in constant use?
8. Do you plan to occupy the home ”full time”?
9. Is your new home serviced by the same utility company as your old home? (rates differ)
10. Do you have or plan on purchasing a Plug-In Electric Vehicle (PEV)?
11. Are there any other major changes in your lifestyle that you will be making in the new home?

Of course, you can see where these questions are leading. There are many other pertinent questions, depending on your specific requirements, lifestyle and design. The absence of these questions will let you know immediately that you are talking to the wrong contractor, and the presence of these kinds of questions that will at least assure you that you are speaking with someone who MAY be qualified to design an appropriate solar plant for your new home.

New homes are a very specialized sector of the solar marketplace. There are hundreds of solar contractors in California but only a small percentage of those are qualified to design and install solar for new homes, and secure the generous New Solar Homes Partnership Program (NSHP) Rebates for their customers.

For more information contact Tyler Michael at his email, TMichael@HelioPower.com

By Derek Girling,
HelioPower Solar Energy Consultant

In the early 20th century, America’s largely rural population was transfixed by an exciting new technology – the automobile. For most of mankind’s history, people either walked or rode horses, carts or wagons to get from point A to B. The invention of trains and streetcars enabled long distance travel and people could now move about easily within growing urban areas. But travelling from your family farm in Greenville to the market in Mudville was still either a hoof or heels proposition.

Henry Ford’s invention of assembly line production of the venerable Model T brought personal transportation to the masses and expanded mankind’s footprint geometrically across the globe. The implications of this transportation revolution a century ago are dramatically evident today.

How does this relate to solar energy?

Until now, and for the vast majority of people, electrical energy generation has been in someone else’s hands – the local utility. Weekend engineers and survivalists have pieced together their own homegrown solar arrays for over a decade, but recently, and for the first time in history, you can easily and economically generate much of your home’s energy. Yes, most businesses and homes are still dependent on their utility for energy from the grid when the sun’s not shining, but even cars are confined to roads and dependant on gas stations. Harnessing solar energy has brought man an unprecedented level of energy independence, especially in rural areas. Water pumps, lighting and refrigeration have been freed from the shackles of a mass produced energy system.

Those early transportation pioneers overcame their unfamiliarity with this new technology. The first people to buy Ford’s cars didn’t have a father or uncle they could turn to with experience buying cars. They surely didn’t think of cars as being almost disposable either! Within a short time, and no doubt driven by necessity, these new drivers were experts on repairing flat tires and plugging leaky radiators. New industries servicing the auto industry sprang up overnight. America’s and the world’s industrialized economies were on the move.

HelioPower solar installation

Today’s solar pioneers are also addressing their unfamiliarity with this new technology. They diligently educate themselves online about mono vs. polycrystalline efficiencies, optimum tilts and azimuths, and minimizing shading issues while pensively calculating when to jump in and commit to having their own solar power system installed. Fortunately, solar energy systems have virtually no moving parts and are relatively maintenance-free. New service and manufacturing industries including solar financing (not unlike GMAC!), system maintenance and low-energy use fixtures are emerging. Commercial and residential solar system installations have grown from thousands to hundreds of thousands and soon millions within just the last decade.

There is, however, a crucial difference between the personal transportation revolution and the solar energy revolution that cannot be overstated. Although the mass production of the automobile has freed mankind in many respects, automobiles are directly responsible for significant worldwide environmental destruction. Large swaths of the planet have been paved for roads and parking lots. Fuel sources and refineries pollute our lands and waterways. Emissions from hundreds of millions of internal combustion engines choke our skies. Renewable energy sources like solar offer the only hope of breaking carbon-based fuel’s grip on our planet’s health. Today’s solar pioneers are the first responders in the healing of the planet!

This solar revolution promises, at the very least, to slow the rate of global environmental degradation and may be the killer app that turns the tide on the general adoption of renewable energy sources and generation technologies. Ironically, these solar energy arrays will be fueling our plug-in electric vehicles – the equivalent of a Model T and a gas pump on your homestead. A century from now, we may look back on today’s rooftop arrays and be reminded of those pioneering farmers, their trucks laden with the fruits of their labors, smiling as they thank Henry Ford for saving their feet from that long walk to Mudville!

Contact Derek Girling at DGirling@HelioPower.com

40th Anniversary of Earth Day, Thursday, April 22, 2010

“Power the Earth Day Movement” is the Earth Day Network’s theme for the 40th Anniversary of Earth Day, Thursday, April 22, 2010.  What better way to “power” up energy efficiency, renewable energy and green jobs than by going solar? 

 As of Tuesday, March 16 the Earth Day network website has registered 15,062,212 billion acts of green pledged, 59 campaigns to celebrate the movement and 752,766 members participating in the celebration.  More than 1 billion people celebrate Earth day, making it the largest secular civic event in the world.  You too can participate this year.  By going solar you greatly reduce or eliminate your electrical bill, hedge against future utility rate increases, become a role model for your neighborhood and community and benefit the planet, all at once!  Solar is a great way to power your home and the Earth Day 2010 movement! 

Right now HelioPower and SunRun are offering two free months of electricity if you sign up before March 31, 2010.   Click here for more information.

Want to go solar in April? You can with as little as $1000 down.  Click here for that information. 

Earth Day Network Statement:
Earth Day 2010 can be a turning point to advance climate policy, energy efficiency, renewable energy and green jobs. Earth Day Network is galvanizing millions who make personal commitments to sustainability. Earth Day 2010 is a pivotal opportunity for individuals, corporations and governments to join together and create a global green economy. Join the more than one billion people in 190 countries that are taking action for Earth Day.

GreenTech Media reported yesterday that the Home Star Program is set to benefit the green construction industry in many ways, including those working in solar.  Creating more funds for solar financing, including the growing movement around PACE (Property Assessed Clean Energy) programs is part of Washington program initiatives. 

The article reported:
With President Obama asking Congress for $6 billion for the Home Star retrofit program and Vice President Joe Biden promoting PACE programs as a means to finance home retrofits and repairs, everyone is going to start getting into manual labor and household repairs.

There are the policies that have been, or soon may be, enacted to provide the needed cash to get the trucks rolling. At least fourteen states and 30 municipalities have enacted PACE programs that allow homeowners to finance retrofits through property tax supplements. Renewable Funding, whose president Cisco DeVries helped created PACE, received $12.2 million in funds from Draper Fisher Jurvetson and other VCs recently. Citibank and other large banks are currently setting up programs to funnel credit to PACE programs.

"With a federal loan guarantee (for PACE programs), it can grow from a hundreds-of-millions to a $400-to-$500 billion program," Jack Hidary, a PACE advocate, told us last year. "It can also help the 1.5 million people out of work in the construction industry."

By “Solar” Sarah Madsen
HelioPower Solar Energy Consultant

Want to go solar and don’t think you can quite afford it, still? Do you need a little more incentive than the

Residential Solar in Suisun installed by HelioPower

state and feds can give you (state rebate and federal tax credit)? How about looking into your local city and county programs? How about checking into Community Action of Napa Valley (CANV) and their “Napa Valley Solar Partnership” program?

The City of Napa, California has been looking for a way to take advantage of AB 811 and be one of the pioneers of citywide residential solar. Their sister county of Sonoma found a fabulous way to incent their green minded residents to go solar. It’s called “Solar Sonoma County.” Residents who go solar can receive a one- time loan for solar system purchase and pay it back over time through their property taxes. Sonoma County’s program kicked off fairly quickly and with great success due in part to the fact that their water district had funds available for the program. Unfortunately Napa City and County have not yet identified a funding pool for their own AB811 program.

In walks Jon Vaden, Director of CANV’s (Community Action Napa Valley) Napa Valley Solar Partnership Program. CANV applied for and received a federal grant to educate the residents of Napa Valley and get as many of them as possible to go solar before the end of 2010. The organization is trying to help all Napa County homeowners go solar, but also has a special emphasis on helping match low-income residents with available loan programs that can provide the upfront cost for solar.

With the grant in place Jon has set out on a trail of solar seminars around the valley called “Making Cents out of Solar” (with me, Solar Sarah, in attendance). He covers how solar works and how residents are connected with PG&E with their “net metering” agreement to buy AND sell energy back to the utility. He also goes over the programs and incentives available, as well as what to look for in a contractor. He explains to homeowners what to expect as it pertains to the process of bidding and installation – basically covering the ins and outs, from paperwork and permits to financing and commissioning your solar system. All of this is done from an educational standpoint with no pressure or steering to any one installation company. Of course I’m always ready, willing and able to schedule a site visit for those eager to get started!

CANV has a prescreened vendor list to assist Napa residents in choosing a qualified installer. Jon has vetted each company carefully, checking their contractor licenses and standing with the Better Business Bureau as well as the requirements of C-10 (Electrician), C-46 (Solar) and NABCEP certifications. The program requires that each company use screened employees and not sub-contractors or temporary workers, ensuring quality workmanship and professionalism from any company participating in the program.

HelioPower, Inc is proud to be a part of CANV’s Napa Valley Solar Partnership and I am privileged to attend every seminar and meeting. I’m Solar Sarah Madsen of the Napa Valley and you can find me at the weekly seminar spot, wherever that may be (find event listings on CANV’s website). I’m grateful to Jon Vaden for including us and believing in my commitment to service the Napa Valley and beyond. Everyone has worked together to create a successful program and it won’t work overnight, but your solar system doesn’t work overnight either  

Now let’s get going GREEN and GO SOLAR with SOLAR SARAH in the NAPA VALLEY!!

You can reach Sarah Madsen via email at solarsarah@heliopower.com.

By Derek Girling,
HelioPower Solar Energy Consultant

The newest, most exciting trend in residential solar today is on the financing side. Leases and Power Purchase Agreements (PPA’s) make solar available to almost every homeowner. Radio airwaves are thick with companies pitching “No Money Down” or even “Cash Back” offers.

A well structured solar financing agreement should be a Win/Win/Win proposition – A win for the homeowner who gets the benefits of low cost green solar energy without the relatively large upfront investment, a win for the solar installer who grows their business with new customers, and a win for the solar financing partner whose investors generate a steady revenue stream for years to come.

But just like every other offer that may come your way, the devil is in the details!

Solar is a long-term investment and you should be careful to make sure that you’re negotiating the best agreement possible with a reputable, experienced installer. When evaluating a financing proposal from a company, there are several things you should consider when reviewing their agreement.

First, if you are serious about going solar, ask the solar company’s representative for a copy of their agreement. If they are reluctant to provide this to you prior to signing up, be wary. Some companies will not even send out a representative unless you’ve committed to them! Reputable companies are transparent with their agreements and terms and conditions. They’ll strive to make sure you’re comfortable with them before asking you to sign a contract.

Next, see if you can determine how much they are they charging for the system and how much the buyout is at the end of the agreement. Many companies make this information very difficult to discover! One well-known nationally advertised company charges as much as 30% more per Watt than most installers for similar systems. After 10-20 years of making your monthly payments, are they asking you to pay almost half the original cost to buyout the system? Are you responsible for paying to remove the system should you choose not to buy it? Add up the total of the payments and the buyout at the end and see if this seems reasonable.

Are the payments fixed or do they escalate? If it’s a PPA, then the payments should be fixed at a reasonable kilowatt hour (kWh) price for the life of the contract. If it’s a lease, the payments should escalate at a no more than a nominal rate (2.5 – 3%/year) to cover inflation. Anything more than that sounds like a low teaser payment to get you contracted followed by an increasing rate of return for the finance company.

Virtually all homeowners are installing their very first system and are not familiar with the technology. One of the benefits of a financing agreement can be freeing the homeowner from the responsibility of maintaining and insuring a system. Well-structured agreements place the responsibility for the system with the system owner (the financing company) and also guarantee the amount of energy the system should deliver. If the financing company owns the system, but you’re still responsible for the maintenance, walk away!

Speaking of maintenance, what provisions does the finance company make for funding the maintenance? The best agreements stipulate that an appropriate amount of money is held separately ensuring your system is maintained for the duration of the agreement. This also protects you in the event that the finance company is sold, goes bankrupt, or sells your contract to someone else. The best contracts make it impossible for a company to separate the revenue stream (your payments) from the responsibility of maintenance.

Lastly, what options are available to you to get out of the contract?  If you move before the term is up, can you easily and at no cost transfer the agreement to the new homeowner?  Can you buy the system for a reasonable price at anytime? Can you pre-pay your remaining payments at a discount reflecting the reduced time value of money?  Can you continue on a year-to-year basis without purchasing the system when the initial agreement expires?

Remember, a good, flexible and equitable agreement allows a homeowner to get the benefits of low cost green power now at a fair price from a reputable installer with several options to transfer, buyout, or purchase the system. Read the fine print, ask lots of questions and, most importantly, if the representative is pressuring you to sign something you don’t understand, find another company!

Contact Derek Girling at DGirling@HelioPower.com

Solar Financing Structure Empowers Tax Disregarded Entities to Reap ARRA and Rebate Benefits

By Steve LoRusso

Vice President, Commercial Sales, HelioPower

Nonprofits have seemingly been out of the luck when it came to monetizing the 30% federal cash grant for renewable energy installations provided by the American Recovery and Reinvestment Act (ARRA).  Tax disregarded entities have not been able to take advantage of the lucrative 30% treasury cash grant or the federal and state depreciation benefits (IRS 200 MACRS).  However with the participation of a lease partner, organizations that were previously left out of the ARRA funding picture now have a new opportunity to build solar power generating systems on their buildings utilizing the support of the ARRA cash grant for renewable energy installations. 

This solar financing structure involves an interested third party utilizing the tax incentives in the role of a Site-Delivered Equipment Provider.  The resulting solar financing product is much simpler and less costly to arrange than a solar power purchase agreement (PPA) for smaller sized solar power installations. The minimum transaction size is $200,000.

This solar lease structure is available to well-established, creditworthy U.S. based companies and nonprofit organizations. It can also benefit municipalities, churches, schools, and 501c3 structured entities that want to leverage ARRA funds and state utility rebates to go solar. The effectiveness of this solar financing structure will be impacted by construction site considerations and the financial strength of the host as it would be in any other type of solar installation.

HelioPower is working with financial partners who are able to offer a low cost seven (7) year financing program for solar photovoltaic (PV) systems to financially strong commercial firms and nonprofit entities in California and surrounding states. We work with our solar financing partners to provide 100% financing of a PV system at a fixed payment for 7 years with an 8.5 year amortization. Normally no additional collateral is required other than the solar equipment. The nonprofit entity applies to the U.S. Treasury for the 30% cash grant which, when received, is applied against the financing agreement.  Additionally the monthly lease payments required from the organization are offset for the first five years by the CA State Performance Based Rebate payments to the property owner.

We see great promise for endowment foundations, grant makers and personal contributors that make annual contributions to their selected charities, to rethink their contributions.  These contributions could take the form of milestone payments on energy leases.  Thus the supported solar panel system benefits the organization for decades  - generating electricity from a self-generated and sustainable source, hedging the nonprofit against escalating and unpredictable power rates thus creating a stabilized utility burden.

As in the Old Chinese Proverb, “Give a man a fish, he’ll eat for a day.  Teach a man to fish, he’ll eat for a lifetime.” When supporters fund a turnkey solar electric system through a true lease solar financing structure they empower the organization to create their own electricity for years to come as well as enable them to benefit from ARRA federal cash grants and CA state solar incentives. 

Disclaimer:  This is not tax advice.  We encourage you to talk with your tax advisor before proceeding with any financial agreement.

Source information:

American Recovery and Reinvestment Act

U.S. Department of the Treasury

Click here for link to page that includes Frequently Asked Questions:

21. Question: Is an applicant who owns eligible energy property eligible to receive payment if the energy property is leased to a non-profit or otherwise ineligible entity?

Answer:  Yes.  If the owner of the energy property is the applicant and is otherwise eligible, the fact that the property is being leased to an ineligible entity does not impact the eligibility of the owner/applicant provided it is a true lease and not a disguised sale. 

For more information contact Steve LoRusso directly at SLoRusso@HelioPower.com.  

Guidelines for communicating the solar aspect of a green marketing program

By Glenna Wiseman, Vice President, Marketing, HelioPower

At HelioPower we help our clients tell their solar story.  We work with commercial, community and utility clients creating communication programs to herald their new solar power installation.   Our efforts help them weave the aspects of a solar installation into an overall green marketing message that supports their brand.

Solar is an exciting addition to an organization’s environmental efforts.  In fact, a solar power system assists on multiple levels of a Triple Bottom Line approach benefiting the company’s people, its profits and environmental efforts (the planet).

Having successfully completed several affiliate marketing programs for HelioPower clients, this information is designed to contribute to the industry’s knowledge base and guidelines for successfully telling a client’s solar story and thus contributing to their overall green marketing message.

Nearly all of our commercial and public sector clients have worked through the normal list of “reduce your energy and energy use costs” before they adopt solar.  Way before the solar conversation starts they have harvested the “low hanging environmental fruit” of recycling, green purchasing, etc.  Past this phase, they move to implementing energy monitoring to determine peak demand usage and reduce it, and energy use overall to create cost reduction programs. Out of this information comes the use of energy efficiency technologies including lighting, motors, HVAC, etc.  Solar is not generally where they start or where they should start, unless they are building a new U.S. Green Building Council Leadership in LEED (Leadership in Energy and Environmental Design) structure. Then solar power technologies should be part of the design from the initial stages of the development.

Once solar is part of the client’s overall green building, thus environmental strategy, HelioPower works with them to communicate the role solar plays in these efforts and thus the environmental aspects of their brand.

A marketing / communication program for a HelioPower solar client becomes appropriate when we can implement the following guidelines:
• Assist our clients to communicate environmental benefits of solar
• Optimize strategic partner alliances
• Involve the community, green building, local and state government
• Utilize Internet and social media to provide transparency & communication
• Educate stakeholders
• Work as a team

Each solar promotion program will have its unique opportunities and challenges.  In order for solar promotion program to be successful we have found that it is essential to meet all of these objectives. 

HelioPower assists our clients to communicate environmental benefits of solar.  Part of our responsibility as an organization’s solar power partner is to help them gather the information needed about their solar installation.  We assist them in developing a full understanding of their solar power system, how it works, energy generation data, environmental offset data, how to explain it to their constituents and whatever information they need to communicate their solar program. 

We provide information online about the client’s solar power installation on the HelioPower website.  Our efforts are coordinated with the client’s to create information that is easy to access and captures all the correct data about the solar project. 

Affiliate marketing programs must optimize strategic partner alliances. At HelioPower we have

Bill Nye, the "Science Guy" shines light on Bob's Big Boy solar event, supported by Canadian Solar, SMA and sponsors

the distinct pleasure of working with some of the industry’s great brands and high profile clients.  Any program that we participate in or spearhead for one of our clients must involve strategic partners in the industry and those affiliated with our client.  Communicating the solar story would not be complete without involving the solar power panel manufacturer, inverter partner, and potentially the energy performance monitoring company.  It can also involve brands that do business with the client as was the case with the Bob’s Big Boy campaign we implemented last fall.  The key is to involve those within the industry who have participated in the solar installation by way of product and those who do business with the client.

Involve the community, green building, local and state government.  One of the very exciting aspects of taking on a communication program to highlight a solar installation is involving the stakeholders in the community. 

Community groups gather to support Porsche solar panel dedication

We are all obviously familiar with the solar “ribbon cutting/ throw the switch” ceremony.  These are important celebrations of the commitment the client has made to solar power generation.  This type of event is the most valuable when it is an opportunity to reach out to stakeholders in the community and give them a chance to support the client. 

In the construction phase of a solar celebration or marketing program, it is our job to identify community, green building, local and state governmental groups and leaders who should be involved in a program.  And you don’t need to stop here.  You can reach out to a loyal customer base, supporters, local charity groups, and any other organization whose contribution to the program will enrich all parties involved.

Utilize Internet and social media to provide transparency & communication. Marketing messages regarding environmental strategies must be transparent and easy to find online.   This upholds the integrity of the message. 

It is critical to strategize the online aspects of a client’s solar marketing program.  The effort may be as simple as identifying the best media distribution source and insuring the joint press release is supported with accurate online information about the solar installation.  It may be a more comprehensive approach that involves a program-specific website.  Each effort is unique.  Insuring opportunities for an online program are investigated and maximized as needed is essential.

Educate stakeholders.  Telling a solar story must include programs to educate the client’s constituents.  Programs typically include communication to employees, investors, media and press, community members, etc.  When you are considering a program, think about what groups are involved with your company or client and what aspects of the solar installation would hold meaning for them.  Within a particular solar story, different themes and information will hold meaning for each distinct constituent group.  Thinking through all these “story lines” will create positive communication and honor the many groups that support or are involved with the client, and thus have some level of involvement with the solar installation.

Work as a team.  Our renewable energy industry is filled with talented, positive professionals who are a joy to work alongside and truly are impassioned by their mission within the industry.  We have the distinct pleasure to assist our clients in communicating their solar story.  Thus we work to create a team approach for each marketing program, from a relatively simple press release to solar ribbon cutting events and more elaborate affiliate marketing programs. 

It takes a dedicated team of client and solar installation company individuals to successfully design and install a solar power system. So too the best programs to tell a client’s solar story, within the auspices of their brand message, also involve a team effort.

You can reach me at gwiseman@HelioPower.com.  I welcome your comments, insights and observations.