Solar Solutions

Putting solar panels on your roof in Southern California? It’s very likely that you are installing solar electric panels (or PV panels as we say in the solar industry).

However, there is a whole world of solar energy outside of solar electric systems! The different types range from solar thermal systems to large-scale “CSP” installations, some of which have been around for more than a century! Today we are discussing the top four types of solar that are widely used by Californians.

Solar Electric Systems

Solar electric systems are by far the most common type of solar energy system installed in California. Often referred to as photovoltaic panels or simply “PV”, solar electric panels convert the energy of the sun into usable electricity using the photovoltaic process.

In recent years, the price of solar electric installation has become more affordable thanks to government incentives and rebates, favorable clean energy policies and solar financing. This has led to a surge in residential and commercial solar installation! In fact, California added about 2740 megawatts of energy in 2013. This is an incredibly large amount of solar energy, more than enough to power 600,000 homes.

Solar Hot Water

Sometimes called Domestic Hot Water or DHW, solar hot water is a very mature, reliable technology that has been used in Southern California since the early 1900s. Most homeowners need only 2-4 panels in order to provide the majority of the hot water used in their home. This will provide you with the majority of hot water needed to do your laundry, wash your dishes and keep that shower nice and warm!

Currently, the California Solar Initiative is now offering substantial rebates for residential installs. Combined with the Federal Tax Credit, our recent solar hot water customers are saving 50-60% on their installation costs.

Solar Pool Heating

Ever leave your garden hose out in the sun and notice that the water runs warm as a result? That’s pretty much how solar pool panels warm up your pool’s water. First, water is pumped from your pool and circulated through the solar pool panels on your roof. As the sun beats down on the solar panels, the water within the panels warms up. Then, it drains back to your pool and increases the water to a comfortable temperature.

The majority of pool owners in Southern California can use unglazed solar pool panels made of polypropalene. Not only is it the most affordable, but the material is stronger than plastic panels and can hold up for 20 years or longer.

Concentrated Solar Power

Concentrated solar power, often shortened to the acronym CSP, is used for large-scale installations that supply solar energy to a utility company. By using thousands of mirrors, sunlight is concentrated onto a small area and creates a large amount of heat (or thermal energy). This heat drives a steam turbine and that converts it into electricity.

CSP’s current poster child is the Ivanpah Solar Electric Generating System in the Mojave Desert of Southern California. It went live in February 2014 and is expected to provide enough energy to power 140,000 homes.

One of the tragedies of the recession was that it resulted in steep cuts to educational institutions nationwide.

California in particular dealt with dramatic decreases in school funding at the primary, secondary and university levels, which led to shortened school years, fewer textbook purchases and higher tuition for college students. As a result, these institutions are constantly looking for ways to cut expenses in other areas so that the cuts will have a smaller impact on their students.

Solar Energy Rescues Schools from Budget Problems

Enter California solar energy. School campuses use a lot of power during the day, which leads to very high electricity costs that could be significantly offset by a greater reliance on renewable energy. Various renewable projects have been developed for campuses across the state, but the most viable technology for these purposes is definitely solar photovoltaic (PV).

Not only will switching to solar reduce energy expenditures, it will also provide students and faculty with a clean, renewable source of power that produces no carbon dioxide and helps educate students about the subject of sustainability.

Solar already has a presence on a number of campuses. In fact, the University of California, Riverside, will begin construction on a solar plant with a generating capacity of 3 megawatts (MW) this summer. Experts estimate that it will produce enough power to cover 30 percent of the school’s baseline electricity needs. The panels will take up 11 acres of land on campus, but they’ll be virtually invisible to the public, according to the school’s website.

UC Riverside Buys Cheaper, Cleaner Energy with a PPA

Now that the price of solar is competitive with electricity rates, UC Riverside decided that solar energy would be both the cleanest and most cost-effective energy to use. This is partly due to a power purchase agreement (PPA), which is a financing arrangement where the solar panels are owned by a third-party and the school purchases the electricity produced by the panels. PPAs typically provide a rate competitive with that of grid electricity.

The best part is that UC Riverside’s solar plant has the potential save the school $4.3 million over the course of the 20-year PPA. That’s money that can be repurposed for other projects, including expanding the school to accommodate more students and hiring more professors to teach them.

Of course, schools weren’t the only entities affected by the recession. Many homes, businesses and other public institutions took a big hit when the economy went south. This is why solar is such a vital resource: It provides a terrific money saving opportunity at a time when people are still looking to cut back on whatever expenses they can.

Although solar panels for homes have dropped in price over the last decade, they still require an investment to purchase outright and install.

While this is an affordable possibility for many middle class families, especially given the long term energy savings, it may be difficult for low income households to save money and make such a large upfront investment.

What are the options for those homeowners who don’t have that kind of cash on hand, but want to enjoy the benefits of Los Angeles and Orange County solar power?

After all, these families have as much to gain from renewable energy as wealthy households. And often, low income citizens are disproportionately affected by problems like climate change, rising electricity costs and pollution from coal power plants located near their neighborhoods. There are a couple possible solutions to the problem of affordability for these families.

Subsidized Solar Systems in California

The California Solar Initiative (CSI) set aside some of its budget to fund SASH, a program that pays for solar panel installation on the roofs of single family low income housing.

So far, the program has helped more than 4,000 families go solar and use clean, renewable energy in their homes. In the fall, the California government extended the program through 2021, which means that Grid Alternatives will be helping thousands more install solar panels at an affordable price.

Those interested should review the eligibility requirements on Grid Alternative’s website to see if you qualify for a solar installation through SASH. You may also contact the organization at (866) 921-4696 or sash@gridalternatives.org for more information.

Leasing Solar Panels to Save Money

By leasing panels, you are able to avoid a large upfront installation cost for your solar electric system and spread out the cost through monthly payments. If the savings on your electricity bill offset the lease payment, then it’s a worth investment.

As an example, one of our customers was previously paying electric bills as high as $800 a month. With such a large monthly expense, the family was having a hard time making ends meet. Now that they have installed solar panels, their combined monthly electric bill and lease payment costs about $350.

While still seemingly expensive, it’s a big difference when compared to their previous electricity costs without solar. They now save anywhere from $300-450 a month, which helps relieve pressure from the family’s monthly budget. Much more, they are happy to be using clean energy from the sun instead of dirty energy from coal, oil or natural gas.

If you would like to find out more about leasing solar panels, contact us at (888) 595-9570 or gosolar@th2.e81.myftpupload.com. After understanding your electricity usage and surveying your roof, our solar consultants can run the numbers for a solar lease and present you with an affordable proposal that will fit your needs.

Now that we are two months into 2014, we are taking some time to reflect on how 2013 was for the solar industry and what lessons can be learned from the biggest developments.  By almost all counts, it was a big year for solar power.

Across the nation, residential solar installation became more popular thanks to general education of the public about the advantages of the technology and available rebates that help make it more affordable. Additionally, utility companies made a big effort to get large-scale installations up and running (such as Ivanpah in Southern California’s desert).  All of this lead to a surge in solar panel installation and a number of record breaking quarters in 2013.

Looking Back on California’s Solar Growth

Of course, California continues to be one of the leading states for solar expansion.  Our state doubled its total generating capacity for rooftop solar, adding as much photovoltaic (PV) power in 2013 as it had in the 30 years prior. In total, we now have 2,000 megawatts (MW) of rooftop solar.

When you consider utility-scale installations such as the California Valley Solar Ranch, the Golden State actually has a grand total of 4,000 MW of capacity. This makes California by far the state with the most solar, and accounts for a little under 40 percent of all U.S. PV and concentrated solar power.

Why Solar Energy is Rapidly Growing

Having established that the solar industry is growing at a rapid pace, it’s worth understanding why this happened and how we can continue expanding:

• Continuing public policy support: Solar power has enjoyed a very favorable public policy climate so far. The state government and power regulators have continued to fund programs and rebates that make this technology more affordable and accessible to families of all incomes. However, utility companies across the country have been pushing back against these efforts by trying to limit the value of net metering benefits. Regulators should resist calls from these corporations to cut back on rebate programs and continue to provide incentives for the adoption of clean energy technology.

• Declining panel costs: By far the biggest driver in the growth of California solar energy is the fact that module prices have fallen dramatically in the last several years. This trend continued well into 2013, when solar panels dropped in cost by over 9 percent. These decreases are the result of a number of factors, including the fact that solar panel manufacturers have made significant gains in streamlining the supply chain.

• Reducing soft costs: Many industry experts are concerned that panel prices can only come down so much before they “hit bottom,” which means that Los Angeles solar installers are going to need to look at reducing soft costs to continue the downward trend. Soft costs are those aspects of solar production that aren’t dictated by panel prices, such as installation, labor, administrative expenses, supply chain inefficiencies and permitting fees. It’s best for the solar industry to address these problems from both a public policy and innovation standpoint.

In order for Los Angeles and Orange County solar to remain competitive in the future, it is essential for the trends outlined above to continue. That way, the state, and the nation, can move closer to a more sustainable and energy-independent future.