Solar Solutions

Typically, electricity companies are not big fans of Orange County and Los Angeles solar power. They see distributed generation (DG) and particularly Net Energy Metering (NEM) as threats to a long-standing business model that relies on a regulated monopoly to generate profits and earn income for investors.

Utilities Claim Solar Creates Higher Costs

The utility companies have argued that as more customers migrate to solar power, the fixed costs of running an electricity grid (things like maintenance and transmission) will be spread over fewer rate-payers. This will raise electricity prices, which will make solar more attractive and convince even more customers to make the switch.  And then, the price of electricity will rise once again.

Because of this belief, utilities spend a lot of their marketing and lobbying budgets trying to persuade policy makers and the general public that solar power is an economic disaster. One of their strategies is convincing people that NEM policies, which allow customers to receive a credit for the solar energy they feed back into the grid, act as a subsidy for solar customers at the expense of non-solar rate payers.

Winning the Battle with AB327 and “Net Metering 2.0”

Actually, the utility companies almost succeeded in eliminating the NEM program in California with the  introduction of AB327 using this exact argument. Thankfully solar advocates were successful in getting specific amendments made that not only protects the current NEM program but also extends the program for what is now being called “Net Metering 2.0”.

Though the solar industry won this small battle against Big Energy, we expect the utility companies will try to get similar legislature passed using the same argument that solar customers make electricity more expensive for everybody.

Research Proves Utility Claims are Incorrect

For this reason, we decided to revisit a study published by Crossborder Energy earlier this year that analyzed the effects of California’s NEM policies on overall electricity rates. It found that there was actually a positive effect for non-solar customers.

“On average over the residential markets of the state’s three big [investor-owned utilities], NEM does not impose costs on non-participating rate payers, and instead creates a small net benefit,” state the report’s authors. “In the commercial, industrial, and institutional (C&I) market, NEM results in significantly greater benefits than costs for non-participating rate payers.”

How does NEM help non-participating customers?

Solar Results in Financial Benefit for Non-Solar Customers

Most importantly, while Big Energy has claimed that solar customers in the NEM program cost non-solar customers big bucks, the study proves that it actually brings $92 million dollars in benefits to non-solar customers.

The report’s authors stress that the results of their study may not necessarily apply to other utilities, and more research needs to be done to understand how DG truly effects energy costs for non-participating entities.

Still, it seems clear that the story of how solar affects other customers is much more complicated than the narrative that electric companies are trying to sell. It’s important to note that utilities are invested in protecting their profits and shareholders, regardless of whether doing so might negatively impact their customers. When making choices about the future of California solar energy, we hope that the public will consider other priorities than those of the electric companies.

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 Great Recession has left a lot of Americans approaching retirement in a bad position, as many investors and 401K holders have seen their assets drop in value. Adding to this problem is the fact that interest rates are historically low, and one can only earn so much on certificates of deposit (CD) and other types of savings accounts.

Solar Panels: A Home Investment that Pays

Diane Hammond, a resident of Sudsbury, Massachusetts, found herself in a similar situation when she researched options for investing $30,000 to earn income for retirement.  Forbes explains how Hammond could only hope for an interest rate on a CD of about 0.4 to 0.5 percent, a low monthly income that couldn’t possibly support her when she retired. So, she looked for an alternative that would help save money and generate a decent return on investment.

Hammond has found the solution to her problem by investing in solar energy and pre-paying a 20-year lease on a solar electric system. The savings on her energy bills, coupled with renewable energy credits and other government and utility incentive programs, are far greater than what she would have earned from a savings account.

“I figure I’m going to pay off my original investment in about five years and make 20% on my money (in total, savings and [solar renewable energy credit] payments come to about $2,500 annually),” Hammond told the source. “I thought, ‘Wow, this is much better than a CD. I’m killing two birds with one stone – lowering my electric bill and getting money with interest.”

Retirement Planning for Orange County Solar Owners

While leasing works well for some consumers, purchasing a solar system is another option that can lead to great savings for future retirees. For example,  AMECO Solar customers Linda and Dan bought solar panels as a way to save money on their monthly utility bill and free up their budget in preparation for their future retirement.

Now that their solar panels are installed, they have reduced their bill to almost nothing and estimate a savings of $3,000 each year. Over the lifetime of the solar system (typically 25-30 years), their annual savings will add up to a significant amount and will result in an impressive 19% return on investment.

Find Out How a Solar Investment Works for You

Current and future retirees should consider solar installation as an investment alternative that produces a healthy ROI. Whether leasing or purchasing, solar panels could be a good investment alternative to traditional investments. For more information, contact AMECO Solar at (888) 595-9570 or email us at gosolar@th2.e81.myftpupload.com. We would be happy to evaluate your energy needs and show you how a home solar installation could give you a good return on your investment.