Our Commercial Customers

What’s the Difference going Solar in 2015, 2016, or 2017?

The best year to go solar will be 2015 because at its end, on December 31^st, “Net Metering” in California will expire.  Net Energy Metering (NEM) is shorthand for the PUC rule which instructs utilities to credit a customer’s consumption for the generation of CLEAN energy on a one-to-one basis.  A new version of NEM is in the works but it will not give you full or equal credit for the power you generate. At the end of 2016, the 30% Federal Investment Tax Credit is scheduled to expire for individuals and businesses. It may be renewed or reduced, but that will require joint action by Congress and the Executive branch, a degree of cooperation we doubt is likely.  The combination of these two events will severely impact the economic value of going solar for businesses and homeowners, as the new NEM pricing structure will diminish the value of the savings and the lower or non-existent tax incentives will increase its cost.  The good news is that any person or entity going solar during 2015 will be guaranteed full value for their energy for the next twenty years and receive a 30% tax credit. Solar will still make sense, just for fewer people: people who have high consumption, can make Time-of-Use rate tariffs payoff, people want to “fix” their costs, people who want to help the environment or protect their energy future. Visit our Hero Program page for more information.

What will happen after the incentives that stimulated the growth of California’s solar industry have disappeared?  We can look to the past because this is actually California’s third solar boom.

A History Lesson with AMECO!

The year was 1986,  and on January 1^st the solar tax credits expired and rebates were not extended.  But maybe we should go back even further, so let’s start in 1978. The federal and state governments started giving away up to 55% tax credits to go solar and provided rebates in a program administered by the utilities. The solar industry was in its second boom! By 1985, there were over 50,000 Californians employed by the sun when solar thermal was the technology of choice.  Using solar energy, water would be heated by the sun. We still do it today, but using solar to make electricity has become more popular. Going back even further, solar heating actually had its first boom in the early 1900’s. It was the first time you could have hot water

without using your stove.  The LA Times states one third of Pasadena homes had solar in 1907. In 1915, we discovered oil and natural gas in Southern California, and solar fell to the wayside until the 1970’s, a period called the Energy Crisis, which was hallmarked by gas shortages and lines at the filling station.  During the subsequent solar boom, AMECO opened two more offices to serve the demand. One of our ads from the time went like this:

Is your electric bill killing you?

You could travel 12,000 miles in your car on the energy needed to heat your water by electricity for 1 year!

Towards the bottom of the ad, we actually state, “This is not a scam! There are no gimmicks here!” The industry was tainted with deals that were too good to be true. Some companies offered a 95% “discount” for going solar, the business was a magnet for shady operations intending to join the gold rush and reap quick profit. Businesses would inflate the price and offer cash discounts because their revenue was from the rebates.

“Everybody who had a garage was beginning to manufacture hot water systems for your home, so the reputable companies got lost in the shuffle with the non-reputable,” said Susanne Garfield of the California Energy Commission. We’re proud to say that some of our home-made solar panels are still working today!

Anyone who could sell was trying to sell solar. Les Nelson, the former president of CalSEIA, put it best, “The systems were sold with impossible promises about what they could do, and when the tax credits expired, so did the vast majority of companies.” Sound familiar? Some of these companies went out of business the old-fashioned way with bankruptcy, but many companies simply pulled out of solar and went on to the next big thing, MLM’s selling hair spray! Their only value proposition, 55 to 95% in tax credits and rebates, were gone and so were they. The consumer protections California puts in place such as long term warranties were no good after the companies disappeared. Customers were left with leaky plumbing or roofs and cold water because a warranty is only as good as the company behind it.

How come our competitors claim there’s no way we’ve been installing solar since the 1970’s? Well the industry crashed. California lost 96% of the solar jobs within a year. 48,000 people had to find alternative employment because the fair-weather companies had gone with the wind. How did AMECO make it through? We scaled back down to one office.  We had value propositions that surpassed price and our quality installations meant that we weren’t wasting our time with warranty related repairs. We also adapted to installing more solar pool systems. As far as household domestic hot water we had an uphill battle explaining the economics in an era of high interest costs and low energy price prices. However, if you’re heating a lot of water, it’s going to cost a lot of money to heat it. If you have a family of 5 – that’s a lot of hot water and solar thermal would make sense for you.  If you want to spontaneously swim in your pool and not spend $500 a month for that privilege, solar pool systems would make sense for you. Our competition was never other solar companies – it was always the utility monopolies whose never-ending price hikes were muted by their pay-pay-pay as you go business model.  When we  worked with CalSEIA to promote NEM rules, we helped to develop and promote the solar electric industry in our state.  We also helped the Contractor’s State License Board form the specialized solar contractor’s license your installer should have (C-46).  By the late ‘90s and early 21^st century,   we had already installed the first grid-tied solar electric system in in many Los Angeles area communities (including Catalina)!

The Future of Solar in a Post-ITC World

Our industry has swelled to employ 140,000 Americans.  We outnumber steelworkers, coal miners, ranchers and many other industries. By 2017, there may be many fewer jobs in the Green Energy sector but this is true – The best companies will continue. Electricity isn’t going to be cheaper in 2017, and the pay-as-you go plan will still make sense for many. The industry is going to become more honest with better educated employees. The horror stories of leaking roofs, and poorly installed systems will hopefully become a thing of the past as the bad installers who were just in it for the money die out. Most of the roofers, electricians, carpenters or siding companies that became solar installers will go back to their core business.

On a national level, solar will lose any footholds it gained in solar-averse states like Ohio. States with strong incentives like New Jersey won’t be nearly as hurt if the states recognize the threat to their economy. States like California and Hawaii won’t be hurt as much because our electricity is already pretty expensive with climate change legislation already on the books. Many optimistic studies show that solar energy will be at parity with conventional fuel in a majority of states by 2016 or soon thereafter.

The solar industry is going to be hurt, but those affects should remain relatively domestic or within the US. Solar demand around the world is great enough that it won’t be affected as much and prices should remain relatively stable. Domestic solar panel manufacturers might not see too hard of a hit as they switch from the US domestic market to an export market. There will still be a large market for domestic utility-scale solar to meet RPS goals. During the supply shortages several years ago, even American-made solar products were being exported to Europe while the domestic market scrambled for supply. This global market will help keep materials at a stable price nowadays & in the future allowing solar to still be viable, especially for high energy users.

We should also see growth of solar-repair businesses. The solar market grew exponentially over the last decade, and with original installers going under, many more companies will be specializing in servicing for those systems, a service that will be especially needed by those orphaned by the original installer.

AMECO is ready for 2017 because we’ve gone through this before. We didn’t succumb to explosive growth during this solar boom because we’re in it for the long run. We knew incentives would leave, and we know it won’t be pretty. Our customers know the value of a quality solar system and have been referring us to friends and family for the past 40 years. Over this time, we have many repeat customers, sometimes three times and more, as they outgrew their homes and offices, but knew that going solar with AMECO had been a great investment!

 1993 LA Times Article  & Other Sources Used

Next week is National Drive Electric Week! EV drivers will be setting out for events throughout the country to celebrate electric vehicle adoption! Long Beach held a large event at Palm Beach Park last year where many enthusiasts and manufacturers offered free test drives. Even Irvine-based Pedego Bikes offered their electric bikes  for a test drive around the beach.

There are many events across Southern California this year. Some regular auto clubs are inviting EV’s to their regular meetings and at the bottom of the page, you’ll find our favorite events for National Drive Electric Week for the Los Angeles area.

Special Offer for EV Drivers

The automobile has been around for over a century so where have all the electric vehicles been hiding? Aside from the EV1’s hiding in the desert, they’ve had a similar history to solar power. Did you know solar panels and electric vehicles are best friends? Packed together, they make an unstoppable machine. Literally, solar planes, trains, and automobiles power themselves for months on end. If you are producing power from the sun, your EV is not only using super clean energy to move, but the cost for fuel is $0.00 a gallon!

 The EV’s Shocking History

PV (Photovoltaic Solar) & EV history shares the same sad start. Both technologies were originally explored in the 19^th century. They both saw interest after the Oil Embargo, but didn’t start gain headway until the 1990’s. But EV’s were stillborn due to efforts by the auto/oil/bureaucrats’ efforts to squash their “new” technology by convincing enough people we didn’t need them. Even when EV’s gained mandatory traction, GM violated the basic kindergarten rule of “No Take Backs” and piled their EV1’s in the desert. If you’re looking for a tear-jerker, I’d recommend watching the documentary, “Who Killed The Electric Car?”  However! EV’s are back with a vengeance, which is probably best captured by their sequel, “Revenge of the Electric Car!”

cars. When a manufacturer makes a product, they need to continue to produce those parts. It was easier for GM to collect and demolish the EV1’s. The Toyota Rav4 EV was a great success that Southern California Edison continues to use them as service vehicles.

We’re Ready Now!

The experience of an electric car has greatly improved, as well. With lighter materials for EV’s, luxuries like a backseat can now be seen in modern electric cars!  (The EV1 was a sporty 2-seater) The lighter materials and better motors have also meant our EV’s are much faster! Tesla’s Model S boasts a speedy 0-60 in 5.4 seconds and a top speed of 125 mph! The turtle-like EV1 clocked in at a steady 9 seconds in its 0-60 and was limited to 80 mph. The EV1 also had this ridiculous digital dashboard! Almost as crazy as a 17-inch tablet for a dashboard! EV1’s should be compared to regular EV’s and not a luxury Tesla Model S. The one’s that only cost one year’s college tuition instead of a whole degree. The Nissan Leaf & Mistubishi iMiEV boast a speedy 0-60 in 10 & 13 seconds, respectively. Leaving the EV1 in the dust… oh wait.

It’s Time to Embrace

All passive aggressiveness aside, it’s time to embrace the industry. The fact that most auto manufacturers now have an electric or hybrid option makes it easy.  The fact that it came ten years after General Motors killed the electric car (Spoiler to the aforementioned documentary!) was not soon enough. Elon Musk may be headed to the bank, but I’m just on my way in our solar powered Volt.

Things were done in the past that hurt the industry, but Tesla is disrupting the auto industry they tried to protect. Business as we know it has changed. EV’s, like solar, have introduced different utility rate structures as well. Your utility really prefers if you charge your car at night when it’s cheapest for them to produce power. Southern California Edison’s domestic electric vehicle TOU-rate structure (TOU-D-TEV) charges five times more for electricity during the day than at night. This goes great with solar because it’s only producing during that 5X period! Remember, your EV is only as green as your grid. If you actually want a green EV, you need to go solar or wind.

Special Offer for EV Drivers

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Photo Credit: Wikipedia Commons, AMECO Collection

Upcoming Local Electric Vehicle Events:

September 20

21500 Pacific Coast Highway

Huntington Beach, CA 92648

September 16

365 Portola Plaza

Los Angeles, CA 90095

September 20

21865 Copley Drive

Diamond Bar, CA 91765

Power purchase agreements (PPAs) are another third-party financing option that has helped solar. Basically, a power purchase agreement is a contract to buy the electricity produced #Synonyms. Typically, there is no money down and it’ll be less than what you’re paying your utility. PPAs are how most big energy is financed. A power plant is built, and the investors determine how much it will cost them to produce electricity over the next 10 or 20 years.  It trickled into the consumer market because of large scale solar adoption by corporations.  This is how large companies have gone solar because there’s no capital investment and little risk.

Big Companies Like It

Insert Broken Record: “Solar is a financially smart decision.” You’re able to control and predict your costs of your energy for the next 20-30 years. Companies like this for the obvious reason  – rate inflation ( rate deflation is possible but more likely ‘in your dreams’).  Electricity represents a rising cost that lowers their profit margins.

Companies choose PPAs because they make sense in the right condition.

Cannot Afford to Purchase

If you cannot front the cost of a solar system, you should weigh every financing option. There are a lot of options out there including PPA’s, loans, equity lines of credit, PACE financing, and leasing.  Some savvy consumers will look at the cost of the life of the system and choose financing from that.

They Don’t Need a Tax Break

Really? I’m jealous. Even if you can’t use all of your tax credits from solar in the first year, the credits roll over to the next year as well. If you still don’t want tax credits, you should look into a lease and a PPA, oh, and I’d like the name of your accountant!

They Want Someone Else to Own It

This can be for a whole host of reasons.  If the company can’t use the tax credits, then they’ll need someone else who can use them to take ownership. They may not want to add value to their assets for tax, insurance, or some other reason.  The other reason might be maintenance.  Solar does not have moving parts, so the maintenance required is minimal. If you go with reputable companies, you don’t have anything to worry about. Companies have workmanship warranties to cover when equipment is most likely to malfunction. Equipment failure after that is sparse.  But, if you have hundreds of thousands of solar modules on your roof, percentages don’t work in your favor. The assurance that the occasional repair will be covered by someone else is nice, but it comes with a cost.

Companies choose PPAs because they need to show their shareholders they are building a more profitable business. A PPA increases the profit margins in the short-run without a capital cost or debt. In the long-run, Walmart will not save nearly as much money as they could’ve buying solar.

There Are Better Options

As long as you can afford it, I would not recommend a PPA and even then, there’s probably another option out there. Personally, I just don’t like the idea of saving XX percent over the life of the system versus getting FREE POWER after the payback. Many PPA’s have an annual or regular cost adjustment.  Usually these are done in relation to current retail electricity prices or a pre-determined multiplier.  This means you don’t get the full “benefit” of rate inflation.

Over the last four decades, electricity prices have risen 6.5% per year. Edison recently announced 8% increases for its residential customers.  By the way,  when’s the last time rates went down?

A PPA also doesn’t avoid interest rates.  A PPA is another way to pay a loan with less risk for you, which means a higher return for the investor.  The investor is banking on the fact that a certain number of people will default, he’ll have to repair a few systems, and that he’s going to make his money back with interest.  And then comes your savings.  If anyone is telling you a PPA price before looking at your house, they’ve built a lot of cushion into that price. They don’t know how much it’ll cost to install it yet.

However, you can actually take control of your electric bill with AMECO Solar.

It sounds like we’re saying, “This wildfire sure could use some gasoline!” But more sun may just be a big part of the answer to our drought.

There are cities that don’t have running water, and it’s past time to think about making big changes. Our water problem is out of hand and our energy use is making it even worse. We live in a democracy with freedoms, which means we can’t shout “Fire!” in a theatre but we really need to yell when our water resources are becoming victim to the never-ending search for cheap energy. Ironically, we have renewable energy goals at 30% in California, but no state goals for water conservation. Our state regularly needs to import water and we’re in the worst drought!  Should we just rip-out  landscaping, let lawns go fallow and replace them with drought tolerant options? Shorter showers, dirty cars, ban water thirsty crops such as cotton or rice or grapes, or go solar?  Did you know that  solar can conserve 87% of the water associated with your electric bill?

Back To Electrifying our Drought

We all know fossil fuels pollute, and we’re ignoring that they pollute our drinking water. The fact that we have very little drinking water left and we’re fracking it up for natural gas is ridiculous. California stopped 7 drilling sites this month after learning they had been illegally dumping their fracking waste into drinking aquifers. The kicker… The state and EPA allows them to pollute aquifers that are too expensive to reach for drinking water. This is a brilliant plan, because ECON 101 taught me if something is too expensive at one time, it will never be cost effective in the future… like deep-sea oil rigs or any technology.  The drought is expected to cost $2.2B & 17,000 jobs… but the cost doesn’t matter anymore, the water is polluted. We don’t just use exorbitant amounts of freshwater for extracting fossil fuels, but we also use a ton of it when we eventually burn it too!

The Sustainable Point

We should be desperately reducing electricity consumption, as well.  Ninety percent of global electricity generation comes from a water intensive source.  It doesn’t seem intuitive until you really understand steam generators.  Conventional sources of electricity create heat that turns water into steam that spins a turbine to generate electricity.  The faster the steam moves, the more electricity generated. The steam is kept in a closed loop because that would be a ludicrous waste of water. By creating a larger change in temperature (delta) for the closed loop, the steam will move the turbine faster and generate more electricity. You have two goals, generate as much heat as possible to make the closed loop super-hot and cool it down to create a large delta.

There are two commons ways to do this.  The gigantic cooling towers you see next to large power plants are actually giving off steam –  NOT radioactive gasses like The Simpsons led me to believe. Another alternative is to run your pipes through a larger body of water… say a lake or an ocean to cool down your closed loop.  Doesn’t this create warmer micro-climates that will disrupt local ecosystems? Yes.

Solution? Renewables, as always.  Not every renewable is right (HUH?). Solar thermal and geothermal can use a lot of water because they use steam generators. Solar PV & wind are usually the best options.  Solar PV uses a teensy bit of water during manufacturing and cleaning, but otherwise is very water conscious as seen on the above diagram.

How much water does going solar save?

If you use as much electricity as the average US household, you will end up wasting about 2,000 gallons of water.  If you went solar, you could reduce that by 87%! The average Californian home uses 360 gallons per day.  Comparatively, 2,000 gallons seems like a drop in the bucket #PunIntended, but we’re still using 190 gallons per day on landscaping and  another 18% is lost to leaks.

AMECO Save Water Plan:

Justification & “Math:”

In 2012, the average US household used 10,800 kWh, which we’ll round to 10 megawatt hours.  If you got all your electricity from solar, you would use 260 gallons of water to power your home each year. This is 4% of the water consumed by an all coal house. The water use mostly comes from cleaning them once or twice a year. During a drought, you might decide to suspend cleaning your solar system and use less then 260 gallons.

Californians get a diverse mix of electricity: Coal 7.5%, Hydro 8.3%, Natural Gas 43.4%, Nuclear 9%, Renewables (sans Solar) 14.5%, Solar .9%, and Mystery 16.4%. The mystery mix from California’s Energy Almanac website is a combination of imported electricity that did not have a specified source.  For the sake of argument, the unspecified “mystery” electricity didn’t use California water, so we’ll leave it at 0.  We used basic algebra & a weighted average to figure out the average use was about 1,980 gallons/year.

*Weird way to find leaks: Find a leak and re-use the water by putting a bucket or cup underneath a potential leak. Use the water for plants or fill your toilet’s reservoir. You can’t really do that with a toilet though.  Try putting some colored food dye (not yellow) in the toilet’s reservoir and check the toilet bowl in a few hours for any discoloration.  You can also put a water bottle in your reservoir to turn the 2.0 gallon  flush into a 1.5 or 1.0 gallon flush! Or, learn to read your water meter.  Check it after you make sure that everything in your home that uses water is turned off,  including the ice-maker in your fridge.  Then check it a few hours later to see if it has moved.

Going solar is also going to slow down the race for fossil fuel resourcing, such as fracking, which will help us preserve aquifers that the human race will need in the future.