Our Commercial Customers

Earlier this year, AMECO Solar applied for LADWP & SCE’s Net Energy Metering program on behalf of two of our customers who had wanted to install solar panels along with a battery storage system. Since it was a process that had been allowed in the past and was previously acceptable to these utilities, we were surprised to receive notice that the applications were rejected.

Shortly thereafter, we received a memo from the utility company that was sent to all solar contractors in Orange County and Los Angeles. In this letter, SCE stated, “If a renewable generator is modified so that the battery storage system is integrated into the generator, SCE cannot separately meter the energy from the renewable PV generator and the non-renewable battery”.

In simpler terms, the utility claims that there is no way of knowing whether the solar owner is selling back power that was originally generated from the solar panels or from the electric grid itself. SCE assumes that solar owners are “gaming the system” by charging their batteries with nonrenewable power and then selling it back to the utility during peak times as if it was generated by their PV systems.

The accusation seems ridiculous to both solar owners and companies. Most solar customers install a battery storage system so that they can use solar energy in the event of a power outage. Moreover, the majority of battery backups do not have the capacity to send power back to the grid. The few dollars “saved” by selling nonrenewable energy back to SCE would not make up for the large investment needed for such back-up batteries used in a household.

As a result of this new interpretation, future solar owners would be denied entry into the Net Energy Metering program if batteries are also installed. Even worse, it is probable that any solar NEM generators with battery backup who had previously been granted entry would now be denied participation in the program as well.

Currently, the only solution is to redesign a solar electric system so that the batteries are metered separately. It’s an expensive undertaking and adds significant costs to installation, which will most likely deter solar customers from pursuing this option.

The California Public Utilities Commission is trying to work out a deal with utilities that would let customers who have purchased solar battery backups participate in Net Energy Metering programs without the possibility that they could be selling grid-produced power back. Though, there is no clear indication of when the issue might be resolved.

Since these types of systems make up only a small portion of the overall solar market, SCE’s recent efforts to deny battery storage systems can be seen as another way to attack solar customers and the solar industry. Without the benefits of the NEM program, the payback period of solar system installation is extended and owning one becomes less attractive. Less solar customers producing their own renewable energy means more customers for Edison using non-renewable energy, which ultimately means more money for the utility’s bottom line.

Because of the obstacles detailed in this article, AMECO Solar does not currently offer solar battery backup systems as part of our solar installation services. While we aim to provide the most comprehensive solar experience possible to our customers, we do not want to place our clients in a position where they may not be able to realize the full potential and value of their solar panels because of utility rate policies.

The Ivanpah Solar Generating Station, located in the Mojave Desert near the Nevada border, has completed its first synchronization, which is a major step toward full production. The plant’s operators, NRG Solar, announced the “first sync” on September 24, hailing it as a milestone for the California solar energy industry.

The Ivanpah solar thermal plant is the largest generator of its kind in the country, covering 3,500 acres. With a total generating capacity of 392 megawatts (MW), once completely operational the station will provide enough electricity to power 140,000 homes annually.

Synchronization Now, Solar Energy Next

“Given the magnitude and complexity of Ivanpah, it was very important that we successfully complete this milestone showing all systems were on track,” said Tom Doyle, President of NRG Solar, in a press release. “We couldn’t be more excited about achieving ‘first sync,’ and we share this success with our project partners, BrightSource and Google, as well as Bechtel, which is responsible for engineering, procurement, construction and commissioning on the project.”

Synchronization is an important part of integrating new power sources into the electric grid. In order for these plants to begin producing electricity for California rate payers, the operators must ensure that the voltage, current, frequency and phase angle matches that of the grid.

How Concentrated Solar Power Works at Ivanpah

Ivanpah generates electricity from sunlight using a solar thermal technology called Concentrating Solar Power (or CSP), which is different from the rooftop solar panels that AMECO installs on residences and businesses throughout Southern California. With CSP, thousands of large mirrors, called heliostats, concentrate sunlight and focus it onto a giant furnace in a tower hundreds of feet above the ground. The heat from that sunlight causes water to boil and generate steam, which spins a turbine connected to a generator. This technology is useful for utility scale power plants because it can run 24 hours a day with the use of thermal storage technology, whereas photovoltaic (PV) panels create electricity only when the sun is up.

However, solar thermal requires a massive system of mirrors that can track the movement of the sun, which makes it infeasible for use in homes.

There are three separate generator towers at Ivanpah. The first one, where the synchronization was performed, will deliver electricity to Pacific Gas & Electric (PG&E) under a power purchase agreement (PPA). Tower three is also contracted under a PPA with PG&E, while the second generator will provide power for Southern California Edison customers.

Ivanpah Achieving Clean Energy Goals for CA

In addition to NRG Solar, Brightsource Energy, Inc., Bechtel and Google all served as co-developers and investors in the Ivanpah project. It will help California meet its renewable energy goals, while also providing a source of electricity that emits no carbon dioxide and helps improve air quality. When the plant goes into full production mode sometime in 2014, it will be a major step in the state’s ongoing efforts to derive more power from the sun, and less from conventional fossil fuels.

The Solar Decathlon is coming up soon and will be taking place in Irvine, California, from October 3 to 13. Hosted by the U.S. Department of Energy (DOE), the competition challenges teams of college students to design and construct houses that are energy efficient, affordable and aesthetically pleasing. Most importantly, the houses must be powered by California solar energy and produce more electricity than they consume. Each entry will be judged in several categories by panels of experts from the renewable energy and environmental industries.

The goal of the Solar Decathlon is two-fold. First, the DOE is using it as an opportunity to encourage college students to pursue careers in alternative energy, engineering and design. Second, the competition gives the public a chance to learn about solar energy and green building techniques, as the houses will be on display at the Orange County Great Park for 10 full days. Attendance is free, and each team will be offering tours of their houses. The DOE is hoping the homes will demonstrate that energy efficiency, solar power, comfort and aesthetics are not mutually exclusive concepts.

This will be the sixth time that the DOE has put on a Solar Decathlon. The first event was held in 2002, and subsequent competitions have taken place every two to three years. There will be 20 participants this year, with students hailing from universities all over the world, including Stanford, Santa Clara, Czech Technical University and Arizona State University. We’ll be attending this year to root for our two local teams: USC and another team made up from students at Sci-Arc and Caltech.

“The Solar Decathlon is the Great Park’s first-ever international event,” Jeffrey Lalloway, Chair of the Orange County Great Park Corporation, said in a news release. “We are excited to welcome the students representing the 20 competing teams and their creative energy, innovation and talent as they prepare to build solar houses that will allow the public to see the future of energy, today.”

Each house will be judged in ten separate areas relating to efficiency, design and affordability. Judges will analyze the water heating systems, temperature controls, comfort levels and even the public relations campaigns of each team, such as the quality of their website and press releases. For each category, a score out of 100 points is awarded, and the team with the highest aggregate score from each criteria will walk away victorious.

Winners will be given name recognition, along with invaluable contacts and networking opportunities from the Solar Decathlon Alumni Network. Members of the jury include executives from the home building, architecture, interior design and energy industries, journalists, marketing professionals and public policy experts.

The winners of the most recent Decathlon, from the University of Maryland, will not be participating this year, so the competition is wide open. If you live in Orange County, make sure to set aside a few hours during the first part of October to visit the Orange County Great Park and tour the houses on display. We hope to see you there!

The California legislature has approved Senate Bill 96, which authorizes the California Public Utilities Commission (CPUC) to collect revenue from the Electric Program Investment Charge (EPIC).

Funding from EPIC will be used to finance research, development and deployment (RD&D) of clean energy technology, including California solar energy, with the goal of improving the state’s energy infrastructure and saving rate payers money.

Pending the governor’s signature, the CPUC will be able to authorize the state’s utilities, including Pacific Gas & Electric, San Diego Gas & Electric, and Southern California Edison, to begin collecting $162 million for the EPIC program.

The approval of this bill was crucial to the state’s renewable energy future. Prior to its passage, funding for clean energy RD&D was set to expire, bringing to a halt the California’s leadership on this issue. As far back as the 1970s, California has been setting an example by requiring that utilities reinvest some of their revenue back into research.

However, after restructuring of the utility industry in 1996, there was some question as to the permanence of RD&D appropriations. At the time, the legislature put in place a system benefits charge, which would be used to provide a minimum level of funding. This charge expired in 2012.

Senate Bill 96 ensures that funding for clean energy technology will continue until at least 2020. The California Energy Commission will administer 80 percent of the revenue collected through EPIC, while the utilities will manage the other 20 percent. Both institutions will need to submit plans to the CPUC every 3 years, and in 2016 the program will be reevaluated by an independent auditor to determine its strengths and weaknesses.

The EPIC will primarily focus on problems that represent the biggest obstacles to reducing California’s emissions and meeting its renewable portfolio goals while also aiming to devote as much of its revenue to RD&D as possible.

The approval of this program shows that California is still leading the way when it comes to clean technology and renewable energy. The outcomes of EPIC research could result in billions of dollars in benefits for utility customers and the environment, so passing the bill is definitely good news for our state.