Our Commercial Customers

Last month, the LADWP Board of Water and Power Commissions voted to approve changes to their Solar Photovoltaic Incentive Program that will go into effect on July 15, 2013. The most notable change is that the utility company will be lowering the incentive levels for the remaining steps of the program. The residential solar PV incentive for Step 8 will drop from $0.75 per watt to $0.40 per watt, Step 9 will drop from $0.65 to $0.30 and Step 10 will drop from $0.60 to $0.25.

The incentive program was originally launched as a way to encourage LADWP customers to go solar by rewarding them with a rebate that lowered the initial cost of a solar electric system. Incentive levels were designed to be paid in steps, meaning that as more people install solar systems, the amount of available rebate funding would decrease. At the moment, the program is currently in Step 8 of 10.

Once enough solar panels have been installed and the capacity of the program is reached, it will close and LADWP customers won’t be able to receive any rebates for their solar installations. Estimates by the utility company project that the program will last through 2016. However, many solar experts speculate that it may end earlier, possibly in late 2014 or early 2015 since there is usually an explosive increase in solar installations towards the end of a rebate program.

Many other rebate programs have already closed in other parts of California. The residential solar incentive programs for SDG&E and PG&E have both ended while SCE’s residential solar rebate program is currently in its last step.

If you have been on the fence about going solar and live within LADWP’s territory, there is no better time than the present to go solar while you can still take advantage of the rebate program and get money back on your initial solar investment. Contact AMECO Solar by calling (562) 633-4400 or emailing gosolar@th2.e81.myftpupload.com and we can assist you in going solar.

In recent years, many solar companies have shifted their focus to leasing solar photovoltaic systems and it has become increasingly popular for consumers. In fact, more than half of all new residential solar installations were financed and owned by a third party in 2012, and many industry experts expect this number to increase in 2013. As a result of its popularity, marketers are spending their budgets promoting solar leases and the market has been flooded with “Zero Down” advertising and sometimes confusing claims.

Once someone has made the decision to investigate solar, they come to us with many questions, and are especially interested in understanding about solar leasing. They want to understand how leasing works and figure out if it makes sense for them. Since so many people have been confused by the mixed messages in the media, we decided to discuss the pros and cons of leasing a system in hopes that the choice to lease or buy will become more clear.

First, let’s go over the basics of a solar lease. A solar lease allows you to rent a solar system from a leasor by paying monthly payments for a certain amount of time. Typically, most lease agreements are for terms of 20 years. Once the lease term is up, one may have the option of renewing the lease, removing the system or purchasing it at fair market value.

The biggest incentive for leasing is that your monthly payment may be less than the amount you previously paid to the utility company, resulting in immediate savings the moment your system is turned on. Additionally, you will continue to realize savings throughout the entire lease term as electricity rates continue to rise and your home benefits from solar energy instead.

Another pro is that the lease provider will take care of the maintenance for twenty years because they are the owner of the solar system. On the other hand, since you are not the owner, you will not receive any rebates, incentives and RECs (renewable energy certificates) associated with your solar system. Instead, they will go to the lease provider.

At the end of a twenty year lease, the final cost of the system for the user is about 2-3 times more than the cost it would require to install and maintain your own solar panels. This is what makes the leasing process so lucrative for providers and explains why so many companies are happy to finance your solar with a lease product.

That said, leasing companies guarantee the solar panel performance for the entire lease term, so you can rest assured that you will be powering your home with solar energy for the next 20 years with no maintenance or repair costs. Also, they usually keep track of production by installing an online monitoring system. If you are a tech geek, you will enjoy checking in online to see how much energy the solar panels produce.

One of the biggest disadvantages of leasing a solar system is that it will complicate and perhaps halt the future sale of your home. If you resell your home before the lease term is over, you must either convince the soon-to-be owner to take over the solar lease (and hope that they will qualify the credit review) or pay off the lease yourself before selling (and hope that there is no penalty for pre-payment).

In summary, leasing is a good way to go solar if improving your immediate cash flow is your goal or simply going green is paramount. If you want a better investment value, then purchasing the system will provide the best results, especially if cash flow is not the primary objective. We offer all types of financing (including leasing) and we’re more than happy to explain and discuss the details of financing options.

Patrick Redgate, AMECO’s CEO and President, was recently interviewed by Solar Industry Mag. In the article, Nora Caley discusses a report released by Lux Research that goes over the solar panel oversupply issues in China and the current health of individual solar companies. After reviewing the past year, she turns to solar experts to get their opinion on the future of the industry.

Redgate responded with the following, “What I think is going to happen this year is there is going to be a shakeout . . . we are going to see who comes out the other end, and it will be either manufacturers committed to staying with this business or manufacturers who have technology that is superior.” He also comments on how competition from other energy sources will affect solar and shares his prediction for the continued growth of residential solar installation.

For more, please visit Solar Industry Mag to read “Coming Soon: Solar Profitability.”

On Friday, May 17, AMECO employees joined a large group of government officials, local residents and members of the solar community to celebrate the Mendoza family’s solar installation.

The family was the sixth on the street to benefit from California’s Single-family Affordable Solar Homes Program, which aims to provide low income families with solar energy.

“California is number one in its production of solar energy and we’re number one in our commitment to it,” Governor Jerry Brown said during his speech.

Other government officials, including Long Beach Mayor Bob Foster and California Assemblyman Steven Bradford, commemorated GRID Alternatives for arranging the solar installation in North Long Beach. As the manager of the SASH program, the organization has installed almost 8.5 megawatts of renewable energy for over 3,000 families during the past 9 years.

The family watched with pride as a team of trainees from LA Trade Tech worked alongside seasoned solar workers to install the solar panels on their roof.

Thanks to GRID Alternatives and SASH, the new solar system will reduce the family’s monthly electric bill by 90% and allow them to redirect the savings to other expenses. While they are thankful for the financial benefit, they are also excited that the PV panels will reduce their carbon footprint.