May 2010

Friday, May 28, 2010. An editorial reprinted from Green Builder Media by Sara Gutterman, CEO & Publisher.

To many people, Memorial Day means a hot barbeque, a much welcome three-day weekend, and the beginning of summer vacation. It's easy to forget the significance of the holiday, which, originally called Decoration Day, is a commemoration of U.S. citizens who died while in military service.

Memorial Day, originally enacted after the American Civil War, is an historical reminder of the virtues and values that our country has believed to be worth fighting for—equal rights, democracy, freedom.

This Memorial Day, I'd like to pay special homage to the individuals who have sacrificed their lives for the sake of our nation's current leading cause: energy. These courageous warriors have given us the tremendous gift our luxurious Western lifestyle.

In honor of the people have who died this past year in the explosion on the Deep Water Horizon, in collapsed mines, and on the battlefields of the Middle-East, I challenge each of us this Memorial Day weekend to determine what we can do to turn the tide in the losing battle for oil.

It's time to fight for a new kind of freedom—freedom from the tyranny and hypocrisy that enables terrorism; freedom from closed markets that enable the suppression of clean energy alternatives; freedom from the business greed that enables horrific disasters like the runaway BP oil spill.

It's time for our nation, and our global community, to add proper stewardship to the list of values that we hold dear. A religious man would say that this type of stewardship is our God-given right. A scientist would say that it is a responsibility that we need to respect in order to ensure the proper functioning of global environmental services. An atheist would say that it is simply good common sense.

It's time to enter into the Sustainability Age. Let us turn our swords into plowshares and our military might into creative ideas that will stimulate our economy and preserve our natural world.

Please write to me at sara@greenbuildermag.com with your thoughts about how we can win our energy wars.

For more information about clean, green "USA energy" generated from solar power please visit us at HelioPower.

AQT, a leading developer of low-cost CIGS (copper- indium-gallium-diselenide) thin-film solar cells, today announced key partnerships with two leading solar companies to drive the delivery and deployment of AQT’s breakthrough solar cells into commercial projects beginning in 2010. The partnerships with Solar Enertech and HelioPower validate AQT’s unique business model and will accelerate fulfillment of the growing number of orders for its low cost alternative to traditional solar cells.

Solar Enertech, a large-scale producer of photovoltaic cells and modules, is working closely with AQT as a module manufacturing partner for AQT’s CIGS cells and will assist with product certification and qualification beginning in the second half of this year. Solar Enertech’s research and development team will join efforts with AQT to complete the final process of turning CIGS cells into modules.

“We are very excited to be partnering with AQT on CIGS technology to broaden the range of low cost offerings to the market,” said Leo Young, CEO of Solar Enertech. “It is in line with our value added strategy to the non-silicon segment and leverages our creative technology team.”

HelioPower, a leading solar power design and installation firm, has engineered solar power solutions for residential, commercial, community and utility-scale partners since 2001. HelioPower has designed and installed over 1,000 solar power systems and serves clients worldwide. AQT and HelioPower will jointly address AQT’s initial customer installations and provide a smooth market entry for AQT’s products.

“Reliability, flexibility and economic viability are the cornerstones of our business model,” said Ty Jagerson, executive vice president, Commercial Sales, HelioPower. “We see AQT’s products as a natural addition to our solar portfolio.”

In addition, AQT announced last month a partnership with Intevac, a leader in high-productivity manufacturing equipment, in which Intevac will provide AQT with its production-proven manufacturing equipment for its current and future production needs.

“AQT’s CIGS 2.0 business model relies as much on world class partners like Solar Enertech and HelioPower as it does on our breakthrough solar cells, and we will leverage the existing PV ecosystem to rapidly deliver solar solutions to market,” said Michael Bartholomeusz, CEO, AQT. “Leverage is perhaps the most effective force multiplier in this space and will go a long way towards helping us to collectively attain grid parity.”

By Scott Gordon

Vice President, Residential Sales, HelioPower

Recently I’ve been hearing a lot about San Diego’s Property Assessed Clean Energy (PACE) program both from customers and from solar companies advertising on KPBS. I find this curious as most of the important details (including exactly when this program will roll out, how much money will be available, and whether you’ll need to do extensive efficiency retrofits before qualifying for solar) are fuzzy at best, so before we delve into all that we don’t know, let’s cover the one thing we do know: we know that CCSE will administer the program. Otherwise, it’s anyone’s guess what’s really going on. A recent visit to CCSE’s website simply resulted in a 50,000 foot view of what PACE is and how CCSE will administer it. Search Google and most of the results herald back to the middle of 2009. As a result, all we are left with is rumor and innuendo. So this begs the question, Is PACE in San Diego worth waiting for?

An examination of other PACE (or AB 811 programs) sheds some light on what we can expect when and if PACE San Diego ever comes to fruition. While AB 811 has helped several cities speed the adoption of solar, most (with the exception of Sonoma) have experienced boom and bust cycles in financing. In many cities, allotted AB 811 money is gone within hours of the first application being submitted. The result is long waiting lists of people hoping that sooner or later additional funds will be available to fund their systems with demand always outstripping supply (of money) by an order of

Solar in San Diego installed by HelioPower

magnitude. For those forced to wait for the next round of financing, there are a real costs involved:  the cost of paying your electric bill, the cost of missing a rebate tier, and the cost of potentially delaying your tax credit by a year.

Let’s examine the positives of PACE financing. PACE requires no credit check or and has a liberal loan to value requirement (you must not owe more on your home than it’s worth). Thus, anyone who is current on their property taxes is eligible. If you have bad credit or have a high LTV, PACE can be a great vehicle for financing energy efficiency improvements. The PACE loan is secured against the property as a first position tax lien. Thus, the property owner repays the PACE loan bi-annually when he pays his property taxes. Interest rates on PACE loans average 7-8% simple interest, which isn’t so terrible if your credit is less than stellar or don’t qualify for alternative financing. Additionally, if you sell your home, the loan stays with the property and is assumed by the buyer.

Now let’s examine the negatives. First, if you are credit worthy, you can generally finance your solar system for 5-6% through a conventional bank or for as little as 3.1% through a PPA such as SunRun. Shaving 400 to 500 basis points off your loan can save you BIG money over the life of the system. Next, PACE money is used up quickly. In other words, if you’re not one of the first in line, chances are the program will exhaust its funds long before your application is reviewed. As a result, you’ll continue to pay high electricity rates while you wait for the next round of funding. Third, you have to pay the loan back as a tax assessment, so you’ll need to be prepared to write a larger check to the tax man bi-annually and budget appropriately.

While I believe that PACE financing in San Diego can be great for certain customers, customers with good credit and home equity are eligible for superior financing with far better terms and faster returns. If you’re considering solar for your home, you’d be well advised to examine all of your available finance options before assuming PACE is the best option for you. You should also consider the cost of waiting in your calculus. It’s possible other financing options will cost you less over the long run, help you be cash flow positive sooner, and provide you with smaller more manageable monthly (rather than bi-annually) payments. Either way you decide to go, HelioPower is here to help you secure the most beneficial financing for your solar project and can help you determine the best path for your unique situation.

Contact Scott Gordon at SGordon@HelioPower.com.

By Scott Gordon
Vice President, Residential Sales, HelioPower

With the June 8th election fast approaching in California, the political ads are flying fast and furious. One television ad that seems to be getting a lot of airtime espouses the virtues of Proposition 16. On the surface, the tenets of Prop 16 sound reasonable enough. The measure would require voters to approve any municipality’s plan to launch a new public utility district in California. Rather than a simple majority, Prop 16 will require a difficult to attain two-thirds majority vote before local governments could launch a new public utility or expand an existing one. There are currently 48 ‘munis’ in California.

In case you’re unfamiliar with what a public utility district or ‘muni’ is, let me give you some examples: Anaheim Public Utility, SMUD, IID, Pasadena Water & Power, LADWP, Etc are all public utilities. If you happen to live in a public utility, you enjoy some of the lowest fixed energy rates in California. Currently public utility customers enjoy significantly lower electricity rates than their neighbors in the large investor owned utilities. They also enjoy some of the largest rebates for solar and other self generation technologies. Thus, it seems that creating additional municipal utilities would be a great thing for California consumers, so who would aim to block the creation of such beneficial public agencies and why would they put forth a nearly impossible two-thirds majority vote requirement?

If you follow the money, the trail will lead you directly to Pacific Gas & Electric (PG&E). In fact, PG&E’s Board approved $35 million to push Prop 16. John Geesman, California’s former Energy Commissioner from 2002 – 2008, recently wrote in his blog, “California’s investor owned utilities face a Himalayan task in modernizing our electricity system and building the infrastructure necessary to serve a growing economy. They ought to focus on that, rather than manipulating the electorate to kneecap their few competitors.” In all fairness to Southern California Edison (SCE) and San Diego Gas & Electric (SDG&E), who would also benefit from a law all but guaranteeing their monopolies, these two investor owned utilities have taken a neutral stance on Prop 16.

Why is Prop 16 bad for consumers? First, it eliminates competition. Less competition almost always means higher prices. Second, it’s sponsored by a big utility whose sole interest is maintaining its monopoly. Third, it fails to properly grandfather the existing municipal utilities properly making all new electrical connections in those service areas subject to a two-thirds majority vote. Fourth, the name itself: “Taxpayers Right to Vote” is intentionally misleading and who likes to be intentionally misled? Besides, last time I checked, I already had the right to vote.

So, when you find yourself in the voter’s booth on June 8th, ask yourself who benefits most from Prop 16, PG&E or municipal utilities trying to offer their citizens lower electricity rates?  I think we all can agree that the only “monopoly” worth saving is the one made by Hasbro.

You can find out more about Prop 16 by visiting: http://www.laprogressive.com/the-environment/californias-prop-16-worst-measure-june-ballot/

You can reach Scott Gordon at Sgordon@HelioPower.com

By Derek Girling
HelioPower Solar Energy Consultant

Just like our earth’s annual trek around the sun, the solar energy business has its seasons as well. While not as clearly evident as bright flowers blooming after spring showers or leaves drying into brilliant autumn hues, our industry’s climate is driven by three strong forces – hot weather, rebates, and tax credits! Savvy consumers understand the seasonality of solar and plan accordingly to get the most financial benefit.

As a solar professional, all winter long I’m engaged in phone and email exchanges with interested homeowners exploring the feasibility of solar for their homes. We quickly determine if they are a good candidate for solar by analyzing their bills and their home’s solar exposure. Financial benefits are calculated and financing options outlined to meet their unique needs. Months go by with only their relatively small winter electricity bills to remind them of our discussions. Like clockwork, as soon as the temperature approaches t-shirt time and the AC charges on, they’re ready to move forward and schedule installation ASAP!

Rebate tier drops are another driving force in the solar year. As more and more homeowners go solar, rebates tiers drop accordingly. This is exactly how our California Solar Initiative was designed. Early adapters, enticed to jump in with big rebates, encouraged competition and drove prices down. Good solar sales representatives keep their customers informed as to when the rebate tier will drop and get their customers contracted before they lose thousands of rebate dollars. Typically during the last few weeks of a rebate tier hundreds of contracts are signed and bottlenecks are created with both utilities and installers attempting to deal with the huge surge in demand.

The end of the year also drives demand as homeowners try to get their systems installed and commissioned before December 31^st. They’re anxious to capture thousands of dollars of tax credits! Our company starts spreading the word in late summer. If you want to be guaranteed an installation and inspection by the end of the year, then we better get you contracted by the end of September. This is the only way to insure that module availability, weather, permitting and HOA issues, or scheduling won’t delay your installation. Again hundreds of homeowners scramble at the end of the year resulting in additional unnecessary stress during the hectic holiday season.

Unfortunately, these scenarios repeat themselves each year throughout our growing industry. Reputable installers are scheduling scores of homes each week. Customers feel confident using them because they have proven track records, good pricing, and there’s a higher likelihood they’ll be around for decades to honor their system’s warranty in the event of a problem. Unless you’re willing to trust your home and your roof to an untested installation firm, postponing your decision may result in a long wait enduring the highest bills of the year or waiting another year for a tax credit.

Reach your decision just a few months earlier and you’ll save hundreds or even thousands of dollars in avoided energy costs, and have the added satisfaction of working with your first choice of contractor. The best time of the year to go solar is right now! Get your last year’s electricity bills together. Meet with a few good companies and use their expertise to help you decide on the right size system and best financing option. Then sign a contract and get scheduled!

Contact Derek Girling at DGirling@HelioPower.com