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Source:  GetSolar.com
Thursday, December 8th 2011 2:01 PM

There are a lot of ways for electricity bills to run high in a place like southern California. With high temperatures year round and blistering summers, almost every home features at least some kind of air conditioning. Many homes also have pools that must be filtered. This only adds on top of all the televisions, computers and countless other consumer electronics that ring up the kilowatt-hours each month. Sam Spagnolo of Rancho Cucamonga, east of Los Angeles, paid for all of these with the added expense of having grandchildren who were all to happy to make use of them.

"My electric bills were averaging over $400 per month," Sam explained to California solar installer HelioPower when he first visited them about the possibility of adding a rooftop solar installation.

Four hundred dollars per month is fairly high for California, where the average bill was $82.85 per month in 2009, according to the U.S. Energy Information Administration, but this includes the entire state, even the far cooler climes in the north. By comparison, nearby Arizona paid an average of $116.09 per month, despite seeing average electricity rates more than 25 percent lower. At California's excessive electricity prices, the sunny state could have been paying monthly bills of more than $156 on average.

Indeed, the state as a whole saw the second-lowest average monthly electricity usage in the entire country at 562 kilowatt-hours, behind only Maine. Tennessee, the state with the highest monthly usage in the country, would have faced average electricity bills of more than $205 per month at California's rates, though much of this disparity can be attributed to California's efforts at energy efficiency.

Nevertheless, the National Weather Service illustrates how much warmer it can get in the southern reaches of the state. Meanwhile, the state's tenth-highest residential electricity rates make clear how much of an impact this difference could have on residents bills.

After a long talk with a representative from HelioPower, Sam was certainly interested in the potential savings a residential solar installation could offer him under these circumstances. But at the end of the day, he decided he simply could not afford it.

"Quite frankly, although I could clearly see the returns, I wasn’t ready to make that big a commitment by buying a system," Sam told them.

That problem quickly solved itself, however, when California-based SunRun struck an agreement to work with HelioPower. SunRun's residential solar financing program offers homeowners the opportunity to add a solar installation and to cut down on their electricity bills simply by paying a fixed monthly bill or fixed rate for the electricity produced by the system.

Solar power purchase agreements arrangements can generally be made with little money down, and sometimes none at all. In Sam's case it cost only $1,000 and work started on his roof within only a few weeks of having HelioPower put through paperwork for the various permits and federal and state solar incentives.

Now, a 33-panel photovoltaic solar installation sits on the back roof of Sam's house. At 230 watts each, the solar panels combine for a peak

capacity of 7.59 kilowatts and can produce more than 11,100 kilowatt-hours of electricity each year, according to the National Renewable Energy Laboratory's PVWATT Calculator. That represents more than one-and-a-half times the average Californian's annual energy needs. At California's average electricity price of 14.74 cents per kilowatt-hour, that amounts to more than $1,600 per year. Between a good first month that saw Sam's solar system produce enough to give him a $300 credit from his electricity company and a $500 rebate from the City of Rancho Cucamonga, it took only two months for Sam to earn back the $1,000 he paid in up-front costs, and he only expects to save more over the years.

Source:  Murrieta Patch
Writer:  Maggie Avants

For every new residential solar installation contract through Jan. 31, HelioPower will donate to Power to the People, a nonprofit bringing solar lighting to Nicaragua.

A Murrieta-based solar power company is teaming up with a nonprofit to bring solar power to those without lights in Nicaragua.

Photo by James Richard-Kao

Photo by James Richard-Kao

This week, HelioPower and Power to the People launched “Help for the Holidays," a joint campaign to help households in California and Nicaragua secure affordable solar energy.

There are a number of moving parts, according to Glenna Wiseman, vice president of marketing for HelioPower.

"We want to help homeowners in California go solar with no installation cost and $500 cash back. They can also enter a $150 gift card giveaway," Wiseman said. "And we want to help families in Nicaragua have lighting through an established nonprofit."

The cash-back program and gift-card giveaway are being sponsored by Canadian Solar Inc., the panel manufacturer for HelioPower.

“We are very happy to sponsor a worthy program with industry-leading partners to bring clean energy to people around the world,” said Alan King, general manager of Canadian Solar USA, in a news release.

“Helping California consumers save money during the holiday season while also providing an important daily resource to people who otherwise might not have it is an ideal example of the power and reach of solar energy," King said.

For every home solar system installed through the campaign, which ends Jan. 31, 2012, HelioPower will donate to Power to the People's Solar Lighting program, Wiseman said.

"So many people around the world have no lights to see by at night," said Jenean Smith, executive director, Power to the People, and marketing director for Trojan Battery, in a news release.

"We're excited to work with HelioPower as we launch our Solar Lighting program in order to bring affordable solar lights to families in Nicaragua this winter," Smith said.

"It is difficult for us to imagine living without electricity when so much of our daily lives depend on it. Yet people in other parts of the world live without this resource."

HelioPower selected the $150 gift card amount because that is how much the average homeowner pays each month for electricity, Wiseman said, adding that anyone–even those who don't have a home–can enter to win.

The gift-card giveaway contest ends Dec. 21 and 10 winners will be announced Dec. 22.

"…We are very pleased that the campaign empowers California homeowners to assist families in Nicaragua in lighting their homes affordably as well," said Scott Gordon, vice president of residential sales for HelioPower.

To learn more about the "Help for the Holidays" campaign, click here.

Source: Run On Sun, September 9, 2011

From "State of Solar California" post by Jim Jenal:  In the first two installments in this series (Part 1 and Part 2) we looked at the most recent data from the California Solar Initiative (CSI) covering the first half of 2011 in Southern California Edison's (SCE) service area. Using that data we identified trends in cost, equipment and system efficiency.

Who Charges What?
Here is a chart of the Cost per Watt for the largest installation companies in the SCE service area (you can click on the chart to see it full size):

First, let us give credit where it is due.  The low end outlier is HelioPower, Inc., at $6.56/Watt, and they did it with an efficiency factor of 87% – second best of anyone on that chart. Nice.

But who is that way off in left field?  Coming in at a staggering $13.32/Watt – a full $1.40 higher than their nearest competitor and more that twice what HelioPower is charging – is Galkos Construction, Inc., also known as GCI Energy, out of Huntington Beach.  For that money, they must surely be offering only the most efficient and sophisticated technology, right?  Not so much.  To the contrary, the average installation efficiency for Galkos is only 84.9% – the second worst on the chart and well below the average of 86.11%.  In fact, 99% of the time Galkos appears to use Sharp panels – not exactly an exotic solar panel brand – and in particular the Sharp ND-224UC1 panel (66.5%). A quick Google search reveals that the Sharp ND-224UC1 can be purchased, at retail, for $2.65/Watt or less.  Given that Galkos handled 400 projects in this data set, it is hard to believe that their price for all of their equipment, particularly the Sharp panels, would not be not heavily discounted.

Quality Counts

Quality, of course, is important, and the data does not reveal – though the Internet hints at – the quality of installations from Galkos.  Here is how the company describes its own product offerings (from the “Services” page of their website):

Solar by GCI [Galkos Construction, Inc.] Energy
GCI Energy is the largest solar company in Southern California with over 30,000 customers. So you get the most knowledgeable professionals, excellent customer service and a better price.GCI Energy solar offers the highest efficiency solar panels on the market – those manufactured by Sharp. With Sharp Solar Panels, GCI Energy can tailor a solar panel installation to your specific needs and lifestyle, so you get maximum performance without a maximum investment.
(Emphasis added.)

Does Galkos actually have 30,000 solar customers?  Certainly not (nobody does).  Are they providing “a better price"?  It is not clear what their standard of comparison might be – but their price is not better than any of their major competitors in that chart.  And of course, the statement does not define what they mean by “the highest efficiency solar panels on the market,” but it seems unlikely that Sharp would make that claim.  Here’s one chart that concludes that they couldn’t (note the efficiency of the SunPower and Sanyo panels first, then search for Sharp).

All we can say in response is, caveat emptor.

Oddities – SolarCity

Now we turn to the Oddities section of this post.  Unlike the outliers, which were always of interest to us, we were not looking for the oddity we report here – it literally just jumped out at us.

Sold versus Leased

Question: What is the difference in reported cost between systems sold directly to the end customer and those that are leased (i.e., have a third-party owner in CSI parlance)?

The initial difference that we stumbled upon was so startling that we knew we needed to narrow our focus and control for as many variables as possible to isolate that one factor.  To achieve that end we restricted the data to those residential systems (i.e., between 1 and 10 kW) that were “pending” in the CSI/SCE data (thus, the newest proposed systems in the data which, based on our Part 1 analysis should mean the lowest cost systems). That way our project sample would be as homogenous as possible, eliminating cost variations based on system size and timing.

Given those restrictions, the top 5 installation companies in which the system is owned by a third party are: Verengo (482 systems), SolarCity (468), American Solar Direct (124), Sungevity (99), and HelioPower (63).  Of those five, only two also have direct sales projects pending: Verengo (7) and SolarCity (9).  Let’s see how they compare:

Lease impact on costs - SolarCity vs Verengo

What is going on here?  For Verengo, as the number of systems increases – which it does in going from sold systems to leased systems – their cost per Watt decreases – which is what we would expect.  But not so for SolarCity – even though they are leasing 50 times as many systems as they are selling, their cost for the leased systems went up – way up – as in up by $3.12/Watt!

For the complete post by Jim Jenal of Run On Sun, please link here: http://runonsun.com/~runons5/blogs/blog1.php/solecon/state-of-solar-california-part3

HelioPower's Steve LoRusso and the company's solar installation at the Ronald McDonald House Charities in San Diego are featured in this Canadian Solar USA produced video.

From a home in Southern California, to the Ronald McDonald Charities House in San Diego, to a hulling facility in the San Joaquin Valley, watch how 3 individuals weigh the options and chose solar. Gain insights into how solar has impacted their families, their businesses, and their wallets.

SunRun Uncovers California's Highest Electric Bills – Over $2400 of Financial Pain

An Oroville family growing food for veterans' shelters will receive free solar power for 20 years from SunRun after presenting the largest electric bill in California. The family submitted a June electric bill for over $2400 to SunRun's Battle of the Bill's contest.

Family members David Sato and his father and sister were delighted to learn they can take charge of their electricity costs and save money while switching to clean solar power from dirty power sources like coal. SunRun partner HelioPower will perform the Sato's installation.

"When we moved to California we bought 13 acres so we could have a more self-dependent and local lifestyle," said homeowner David Sato. "We have big gardens, we're building an orchard so we can grow our own produce, and we want to support our needs with renewable energy as much as possible. We're hoping to grow enough to be able to donate a large portion of the food to the local veterans' shelter."

Despite the Sato's best efforts to make their home as energy efficient as possible – for example, energy-efficient light bulbs, double-pane windows, new insulation – they struggle to keep electricity costs down. The Sato's noted that increasing rates and volatility with the local electric company are constant financial challenges.

"We're so excited to have SunRun," said Sato. "Even if we didn't win the contest we'd switch to SunRun because you can go solar without paying thousands of dollars out-of-pocket. The fact that this company lets you lock in low rates for clean energy is a huge draw. The first thing we want to do with our savings is invest in more solar!"

"We offered this contest to help educate more homeowners that solar can be a low-cost, smart investment, and that it's a great way to take control of your energy costs," said SunRun President and Co-founder Lynn Jurich. "We're looking forward to helping another home make the switch affordably."

"We were overwhelmed by the number of entries we received, and by the fact that so many people didn't realize solar is an option for them," added Jurich. "Even families with bills as low as $100 can save money with clean solar energy."

SunRun is the nation's leading home solar company and owns, installs, and maintains home solar panels so families don't have to pay $30,000 or more for them. Homeowners lock in low solar electricity rates for 20 years, protected from unpredictable utility rate increases. The company installs more than $1 million in solar every day. Details on Battle of the Bills can be found at: http://www.sunrunhome.com/landing-pages/highest-bill-ca.

Source:  SunRun

HelioPower Launches “Solar Overload” Video to See How Many Appliances it Takes to Spin a Residential Power Meter Forward with a Typically Sized Solar Power System

As summer blazes on and residential electric bills increase, HelioPower, an integrated energy solutions company with over 2000 solar and clean energy systems engineered and installed since 2001, today launched “Solar Overload” a first-of-its-kind video demonstrating how many appliances it takes to overload a typical residential solar installation.

“Solar Overload, How Many Appliances Does It Take to Spin the Meter Forward?” features a 4 kilowatt (kW) residential solar power system in Laguna Niguel, CA.  The system was installed in 2006 on the home of Scott Gordon, now the vice president of residential sales for HelioPower.  Scott and team member, Bret Pursuit, demonstrate how  many appliances it takes in Scott’s 2200 square foot home to incur a utility charge, or “spin the meter” forward.

“As a leading solar installation firm in California, HelioPower is committed to educating consumers on the benefits of solar,” said Scott Gordon, Vice President, Residential Sales, HelioPower, Inc. “In ‘Solar Overload’ I’m able to show just how many appliances it takes to activate a utility cost from my residential solar power system.  Over the five years I’ve had the solar panel system my family has saved $10,000 in utility bills.  We are able to demonstrate how that happens when you see the many appliances it takes to spin the meter forward.”

Filming took place at approximately 2pm on a sunny day last month.  Scott turned on two refrigerators, two DVRs, one laptop and 21” monitor, one cell phone charger, 56 light bulbs, one attic fan and five ceiling fans set on high.  The solar power system still generated enough power to keep the meter running backwards. Find out what happens when he turns on a microwave, electric clothes dryer, energy efficient washing machine and a pool pump!

Have questions about the new meter installed on your home?  Do you wonder how it works?  Will it record energy use differently than the “old” version?   Will the new smart meter change your energy bill?

HelioPower's Scott Gordon answers all your questions in this new video, "How to Read Your New Smart Meter."

“While most homeowners are familiar with the installation of smart meters on their homes, many are seeking more information about the smart meters’ impact on their electric bills,” said Scott Gordon, Vice President, Residential Sales for HelioPower.  “We will cover the the things homeowners need to know about smart meters including how to read the meter and how the new digital meters record energy use."

by Glenna Wiseman
Vice President, Marketing, HelioPower

Children running in the grass.  Volunteers securing tents.  Dignitaries making their way to a donor’s reception. The many hands that have IMG_6174-1330538180-O-Chelped shape a sustainable community where once violence ran amuck all gathered last Thursday.  Those who have volunteered, supported and helped build this bright light of an affordable housing community in an oppressed neighborhood in San Diego came together to celebrate another milestone in the history of Las Serenas.  Las Serenas Goes Solar!

Donors, dignitaries, politicians, federal and state program representatives, construction partners and the community itself all rallied to help Community HousingWorks (CHW) celebrate another accomplishment for Las Serenas.

Las Serenas, on the border of National City and San Diego, is a shining example of the impact CHW has on communities as the rehabilitation of this 108-unit apartment complex transformed a formerly high-crime block into an attractive safe-harbor anchor in a struggling lower income community.  This time the cause for celebration was free solar energy for its tenants and the many tenant based benefits derived from a creative combination of state and federally funded initiatives.

In November 2009, CHW was awarded the first Multifamily Affordable Solar Housing (MASH) Track 2 grant by the California Center for Sustainable Energy (CCSE) to install solar energy in the Las Serenas affordable housing community. CHW worked with HelioPower to develop and fulfill the Las Serenas project.

The grant funds provide free solar energy to the low-income families at Las Serenas. The program also provided residents with job training and educational support on all aspects of sustainable living.   The simultaneous  “green” apartment improvements grant from federal NeighborWorks funds provided  installation of low-e, dual paned windows, water-saving tub and kitchen fixtures, and related kitchen and bath repairs.

Congressman Bob Filner (L), Susan Reynolds and Martha Gonzales of CHW

Congressman Bob Filner (L), Susan Reynolds and Martha Gonzales of CHW

On Thursday, Community HousingWorks staff was joined by Congressman Bob Filner (D-Calif.),  NeighborWorks America CEO Eileen Fitzgerald,  Irene M. Stillings, CCSE Executive Director and solar installation partner, HelioPower, among many others to celebrate their solar and green building initiatives.

100% of the clean energy generated from the solar power system will benefit the Las Serenas tenants, offsetting on average 20% of their annual electricity bills.  Additional ‘green’ apartment improvements, funded through a grant from NeighborWorks America, will also lower tenant utility bills and create a more sustainable community.

Community HousingWorks President, Susan M. Reynolds spoke eloquently of the victories accomplished by her team and those at the

Susan Reynolds, President, Community HousingWorks addresses solar celebration crowd.

Susan Reynolds, President, Community HousingWorks addresses solar celebration crowd.

community itself, “Today we are celebrating the victory of our residents over those who would say we cannot be free from violence and despair,” she said.

Las Serenas resident, Lillian Wellman, describes the savings on her electric bill!

Las Serenas resident, Lillian Wellman, describes the savings on her electric bill!

Las Serenas tenant, Lillian Wellman, brought the benefits of the solar energy system to life when she spoke to the gathered crowd. “When I got my electric bill, I was so excited because I could afford my bill now,” said Lillian. “My first bill went from $60 a month to $36, which makes a huge difference for my family.”

“Look around you.  We are surrounded by energy.   And just about all of it comes from the Sun.   Wind comes through differential solar heating, hydroelectric power from the sun driven water cycle.  The food we eat – biofuels – calories – come from the Sun via plant photosynthesis.  Food is energy – human energy.  And Las Serenas is ultimately a story of energy,” said Tom Millhoff, Vice President of Business Development for HelioPower.

“We are surrounded by solar energy.  Some of it you can see. These 300 solar panels will produce about 100,000 kWh annually – enough to replace 76 tons of carbon dioxide– or the amount of C02 sequestered by a 15 acre pine forest.  You may see sleek black glass on these roofs… I see an urban forest and it’s beautiful.

These photovoltaic panels absorb photons – light – and that energy knocks loose electrons, which race through the panels and electrical

Tom Millhoff, HelioPower

Tom Millhoff, HelioPower

equipment, and every single kWh benefits Las Serenas residents… enough to reduce their electric bills by 20%.  The hardware you see is supported by software that monitors and measures the solar production and shows just how much clean solar energy is benefiting residents – you can see it today in the community center, and you’ll see it soon on the web.  But that’s just part of the story.

We are surrounded by human energy.  Creative, energetic and inspired people who’ve taken this effort far beyond a solar installation, and created a truly integrated energy initiative, who’s components include:

  • Energy Workshops – conducted in both Spanish and English to increase resident awareness and appreciation of the benefits of solar & energy efficiency
  • Ongoing Outreach – “Green” bi-lingual curriculum that teach residents how to live a more environmentally conscious life.
  • Green Job Training and Job Creation – as part of this initiative HelioPower conducted solar installation workshops and hired Las Serenas residents to participate in the installation and get hands-on job training.
  • Wireless Internet access – to improve this community’s communications and access to information and educational resources.
  • Energy Monitoring – in the community center and soon on the web

This Las Serenas Clean Energy Initiative is a shining example of what can happen when the public, nonprofit and private sectors work together,” closed Millhoff.

At the solar celebration, CCSE presented CHW with its $412,000 rebate check for their MASH Track 2 initiative at Las Serenas.

Susan Reynolds and Sochiata Vutthy of Community HousingWorks accept check from CCSE's Irene Stillings

Susan Reynolds and Sochiata Vutthy (L) of Community HousingWorks accept rebate from CCSE's Irene Stillings

Irene M. Stillings, CCSE Executive Director, started her remarks quoting the June 7th New York Times Thomas Friedman column, “You really do have to wonder whether a few years from now we’ll look back at the first decade of the 21st century — when food prices spiked, energy prices soared, world population surged, tornadoes plowed through cities, floods and droughts set records, populations were displaced and governments were threatened by the confluence of it all — and ask ourselves: What were we thinking? How did we not panic when the evidence was so obvious that we’d crossed some growth/climate/natural resource/population redlines all at once? The answer is denial.”

"But not in California, not in San Diego and not at Las Serenas," proclaimed Stillings.

Las-Serenas-Goes-Solar-Childrens-Book-one-pageTo memorialize the day’s celebration, the children of Las Serenas created a storybook about solar at the community, which they presented as a thank you gift to Congressman Filner. “The families were able to use the gift from the sun to supply energy to their homes and lighten their burdens,” stated one young resident!

NeighborWorks America CEO, Eileen Fitzgerald, reviews Solar Storybook with children of Las Serenas

NeighborWorks America CEO, Eileen Fitzgerald, reviews Solar Storybook with children of Las Serenas

PHOTO CREDIT:  Maria Robinson, www.DRMPhotography.com

By Scott Gordon
Vice President, Sales Residential
HelioPower

The inspiration for this blog comes from the increasing number of phone calls HelioPower has received recently from orphaned solar consumers.  An orphaned solar power system is one abandoned by the original installation firm.

A few years ago, an orphaned solar power system would have seemed unlikely if not impossible. The marketplace was swelling with well over a thousand solar companies and new entrants were popping up almost daily. Business was booming and bankruptcy was the furthest thing from solar companies’ minds. Fast forward to 2011, and the solar world, at least in California, is changing rapidly.  We can see this playing out in the number of calls our service center receives daily from solar consumers whose solar companies are missing in action or simply out of business. As the company goes, so goes the warranty on a solar power system.

Warranty Mandates
Warranty and service are critical elements of the value add that Solar EPCs (this stands for ‘engineering, procurement, and construction’ aka ‘solar integrators’) offer to their customers. If you’ve gone solar in California, the California Solar Initiative mandates that the Solar EPC provides a 10 year warranty on all products and workmanship related to the installation of your solar electric system. Such a lengthy warranty provides peace of mind to early adopters who are taking a risk on both the technology and the company that they select to install it.

While government mandates can force companies to comply with all manner of regulation, including warranty terms, they can’t guarantee that those companies will remain in business throughout the term of the mandate. So, what happens if a company goes out of business during the mandated warranty timeframe? Keep in mind that in the solar business there is no such thing as ‘too big to fail.”  While solar electricity adoption is growing at rates exceeding 20% annually, the solar industry is quite small compared to traditional energy businesses and the economy overall. Thus, it would be foolhardy to expect that your local solar company might receive a bailout should it go under prior to your warranty expiration.

The Solar Business in California
As the California Solar Initiative (CSI) enters its fourth year, we in the solar business find ourselves humbled.  With rebate money all but exhausted in PG&E and SDG&E, and on hold in LADWP until July 2011, the go-go days of the early solar market are grinding to a halt. The result is that fewer new companies are entering the solar integration space as overall demand for solar electricity in California flattens out. Beyond this, many established firms are going bankrupt for a host of reasons. The San Diego region’s sudden drop off in demand after the latest rebate drop and the killing of PACE in early summer 2010 caused some well-established names to close their doors. Many companies had gotten ahead of themselves either in marketing spend, high end office space, market expansion, and accounts payable. Other large companies have pulled out of the residential space altogether while still others are closing offices to get expenses in line with revenues. Regardless of the reasons a firm might fail, the failure almost always has the same result: the warranty, which is only as good as the company standing behind it, goes away forever. What does this mean for you if you’re two years into a ten year warranty?

What We Hear from Orphaned Solar Power System Owners
While the casual solar energy consumer shouldn’t be expected to follow the ups and downs of the solar industry, the company you choose to install your solar power system will have huge implications on your ability to receive prompt, reliable, and consistent service in the future. The increasing number of phone calls HelioPower receives from orphaned solar customers follow this typical dialogue:

Solar Customer (SC) – “Hi, I’m a solar consumer and I don’t think my system is working”

HelioPower (HPI) – “Ok, when did we install your system?”

SC – “Umm, actually you didn’t install my system, but I need someone out here right away to troubleshoot it. I just got a $600 electric bill from my utility!”

HPI – “Have you tried contacting the solar company that installed your system?”

SC – “Yes, but his number is disconnected and his emails are bouncing.”

HPI – “Ok, we’ll be happy to help you troubleshoot your system. I can have a technician out at your house tomorrow afternoon. You’ll need to have a $200 check ready for the technician before he starts work.”

SC – “Two hundred dollars!! But I have a ten year warranty with CSI. You need to fix my system for free!”

HPI – “Actually, sir, your ten year warranty is with the company that installed your solar system. If they are unable to service your system, you’ll need to pay another company to perform the work whether that’s us or someone else.”

SC – “This is unbelievable! I got a bid from HelioPower when I was shopping for my solar system, but chose the other company because they were cheaper than everyone else.”

HPI – “I’m sorry that we weren’t able to earn your business earlier, but providing service after the sale is one of the reasons we need to charge a little more for our products. So would you like us to come out and fix your system? If the problem is related to inverter or solar panel warranty, the manufacturer will cover all parts and labor. However, we still need to charge you $200 to get the process going. How would you like to proceed?”

SC – “I guess I don’t have a choice. Everyday my solar system is down I’m paying the utility more and more money. I was told by my  installer that my system would be maintenance and hassle free because it had ‘no moving parts’.”

HPI – “Ok. Tomorrow then?”

SC –  “Ok. Tomorrow.”

This call script is playing out in our offices with ever increasing frequency. The issues range from downed inverters, underproduction, roof leaks, and the like.

Pete in the Pickup
Most of the calls we receive are from consumers who chose to have their systems installed by what we in the industry call “Pete in the Pickup”, “Chuck in the Truck”, or “Dan in the Van.” These are industry labels for the one man electrician or roofer working out of his garage or condo.

While Pete’s material costs are higher (because he has to buy through distribution) his overhead costs (including insurance, workman’s comp, warehousing, benefits, service department, etc.) are substantially lower than large established companies. As a result, Pete can undercut all of the big guys. Sometimes he’s able to do this by hundreds or thousands of dollars.

In the four years I’ve been designing and selling solar electric systems the story has played out with remarkable consistency.  Pete sells a few systems, installs them, and exits the business. For the ‘Petes’ that stay in business, the service burden can soon overwhelm them as more systems get installed and need service. Pete simply doesn’t have the resources to create a dedicated service department. This can result in lengthy waits for system service.

While you may consider the Petes, Chucks, and Dans an easy mark for a blog of this nature, what’s startling is the number of well-established solar businesses closing offices, residential divisions, or shuttering their operations altogether. This is where multiple layers of warranty protection can benefit consumers long term.

CSI & Third Party Ownership Warranty Protections
If you live in California, your first layer of protection is CSI’s 10 year warranty. Should your solar installer go under, you still can make warranty claims to your equipment manufacturers. Your inverter or solar panel manufacturer will dispatch an approved installation partner and pay for the service call if the problem is related to their equipment. In our experience, inverters (especially SMA) and solar panels rarely fail. The failure is often in the B.O.S. (this is industry talk for ‘balance of system’). BOS is everything else. It comprises racking, feet (we call these stanchions), conduit, wire, fuses, breakers, disconnects, etc. Unfortunately, these items are the ones covered exclusively by the CSI warranty.

There is a third layer of protection available to solar consumers: third party ownership. Third party ownership is often associated with PPAs (power purchase agreements) and solar leases but have the advantage of making the solar energy system someone else’s problem.

The third party insures, warranties, and maintains the solar power system. You get to enjoy the benefits without the hassle. Third party ‘solar as a service’ companies provide warranties up to 20 years. One company, SunRun, has taken an interesting step toward long term customer protection. SunRun has set up a special purpose fund to maintain the systems they own in the event they go out of business. Thus, with SunRun, your warranty is 20 years all inclusive. Should SunRun fail, the special fund covers all warranty and repair work for the remainder of the term of the agreement. In the event the special fund evaporates, the 10 year CSI/installation warranty takes over.

Lastly, should the first three layers of protection fail, you can always fall back on the manufacturer warranties for your solar panels and inverter(s).

When dealing with an industry in its infancy, the more layers of protection you afford yourself, the better the return you’ll realize over the life of your solar panel system as you’ll avoid potentially costly out-of-pocket repair and maintenance work down the road.

Tips to Protect Your Solar Power Investment
While there’s no guarantee any company will remain a going concern in perpetuity (think Lehmann), here are a couple of tips that will help you to avoid the weakest players during this time of upheaval in California’s solar industry:

  1. Choose a company with lots of installations. Most solar companies have fewer than 10 installations according to CSI data. You’d be well served to set the bar at 100 or greater.
  2. Don’t hire the ‘one and done’ fly by night solar installer. You’ll know who he is because he’s usually a couple thousand dollars cheaper than everyone else.
  3. Take a hard look at third party ownership. After all, why not let someone else shoulder all of the technology and installation risk while you save money every month on your electric bill.
  4. Only consider third party owners who have established a maintenance fund in the event of their own mortality.
  5. Always check your contractor’s references, licensing, and insurance.
  6. Consider adding monitoring (standard with third party ownership). Monitoring is a critical performance review maintenance tool.

As the solar industry enters 2011, we expect a year of changes and surprises. Some companies will be well positioned to capitalize on the myriad changes while others will fall by the wayside. More than ever you need to protect your solar electric investment from joining the ever increasing ranks of solar orphans permeating the marketplace. Toward this end, a multilayered approach to warranty protection may very well be the best solar decision you make.

You can reach Scott Gordon directly at SGordon@HelioPower.com

 

HelioPower President, Ty Jagerson, accepts government commendations from Palm Desert Chamber representative, Sandy Cloyd

HelioPower President, Ty Jagerson, accepts government commendations from Palm Desert Chamber representative, Sandy Cloyd

Editor's Note:  Photos of the HelioPower solar office dedication event courtesy of the Palm Desert Chamber of Commerce, posted 12.15.10.

A near capacity crowd is expected at tomorrow’s HelioPower Palm Desert dedication and

Ribbon cutting ceremony at the HelioPower Palm Desert facility.  HelioPower President, Ty Jagerson, cuts the ribbon assisted on the left by Matt McPherson and on the right by Matt Rifkin and Scott Gordon.

Ribbon cutting ceremony at the HelioPower Palm Desert facility. HelioPower President, Ty Jagerson, cuts the ribbon assisted on the left by Matt McPherson and on the right by Matt Rifkin and Scott Gordon.

 holiday open house all promising to make the solar event a successful kick off to the Desert holiday season.  Over 70 guests are registered to date, a contingent of Chamber of  Commerce ambassadors are set to "cut the ribbon" on the new Palm Desert solar production facility and many walk in attendees are expected at the HelioPower facility located at 75178 Gerald Ford Drive – Suite 3A, Palm Desert, CA 92211. The Palm Desert Chamber of Commerce ribbon cutting ceremony starts at 4pm.  The Coachella Valley solar event and open house runs through 7pm.

Attendees will have several opportunities to learn about solar energy, get a hands on view of the types of roof top installations common in the Coachella Valley and learn about energy saving tips.  The Palm Desert Set-To-Save program will have representatives present to help local residents learn how to save energy on their electric bills. Photos and information about the many HelioPower solar energy installations in the Coachella Valley will also be available.  

A presentation on the Smart Grid and Its Impact on Your Utility Bills will empower residents with information on the changes now rolling out through the local utilities.  Presented by Scott Gordon of HelioPower, this Smart Grid presentation has been very popular across California and with homeowners making changes to hedge rising utility rates.  Plenty of holiday open house refreshments will help attendees welcome the season.

Information on the group solar discount program now available through the HelioPower and One Block off the Grid (1BOG) will also be available.  This solar discount buying program ends February 8, 2011 and will only be installed by solar company, HelioPower. 

Rancho Mirage homeowner Cecile Morgan went solar through last year’s IBOG program. “The system wiped out 100 percent of

HelioPower solar installation for Rancho Mirage, CA resident, Cecile Morgan.
HelioPower solar installation for Rancho Mirage, CA resident, Cecile Morgan.

 my electric bill. It makes me feel better about the environment, and I like that the system will pay for itself soon and add value to my home,” she said.

Several HelioPower managers and its local Desert team will be on hand to wish local residents Happy Holidays.  Ty Jagerson, President, is attending from the company’s headquarters.  Scott Gordon, Vice President of Residential Sales is presenting later in the evening.  Glenna Wiseman, Vice President of Marketing will be on hand.  The company’s Desert solar energy experts, Matt McPherson and Matt Rifkin, will be greeting many of their customers who are attending.

More information is available at the HelioPower Palm Desert Solar event page.

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