Category: "Ranting"

03/13/20

  07:39:00 am, by Jim Jenal - Founder & CEO   , 436 words  
Categories: All About Solar Power, Solar Economics, Residential Solar, Ranting

Stock Market Scary? Time to Invest in Solar!

The other day we had a potential client postpone a meeting to discuss our proposal for their home due to “market instability."  To say that the market has been unstable is a major understatement, but that got us wondering: in uncertain times, doesn’t investing in solar make sense?  We sure think so - hear me out…

Unstable Times

Market crashing

Instability? Oh yeah!

The worldwide pandemic caused by the novel coronavirus (COVID-19) has induced travel bans, the cancellation of sporting events (MLB, NBA, March Madness, even NASCAR!) and social events (for once the show isn’t going on on Broadway!), and possibly even postponing some Presidential primaries, combined with a sudden drop in oil prices due to feuding between Saudi Arabia and Russian, has done a serious number on the stock market.  In the past 30 days, the Dow Jones has lost 21% of its value (and it would have been far worse but for a close of the week rally).

Instability indeed!

It is certainly reasonable for any investor to be concerned by such numbers, especially when a wild card - like a global pandemic - is the driving factor.  Hard to plan for such an event, yet it can have enormous impact on the economy, at least in the short term.

The Stability of Solar

But now consider what makes installing solar on your home or business such an attractive investment.  Modern equipment, like Enphase microinverters and LG solar panels, come with 25-year warranties, providing peace of mind. And no matter what happens – short of the zombie apocalypse – you are going to continue to need electricity to power your life, and that need is likely to only increase over time (think of your electricity usage twenty years ago compared to today).  Electric utilities, especially the Investor-Owned Utilities like SCE, clearly do not have your personal best interests at heart, and their rates will continue to increase, even as service declines.

Which means that installing solar provides you with a reliable asset that will reduce your out-of-pocket costs for the next 20 years!  We typically see payback periods that range from 5 to 10 years, with a 20 year ROI of 150%+ and IRR of 12-20% (though our largest residential client in SCE territory is looking at an eye-popping ROI of 460% and an IRR of 28%!).

Of course, your mileage may vary.  But it is hard to imagine a scenario where the value of your solar investment drops 21% in a matter of days - but easy to do so for your 401k - because it just did!

If you would like to diversify your portfolio into a less risky investment, give us a call.  We can help you trade up to solar!

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02/29/20

  03:14:00 am, by Jim Jenal - Founder & CEO   , 1167 words  
Categories: All About Solar Power, Commercial Solar, Residential Solar, Ranting

Run on Sun Enters the Drone Era!

Just about a year ago, we really started thinking seriously about what drone technology might add to our solar installation company. The folks over at Scanifly – with their ability to take drone images and convert it into a 3-D model of a potential solar site, without needing to climb onto a roof, was really appealing. And that got us thinking of other ways a drone might be helpful - as with finished project photography, or inspecting existing systems. All of that seemed possible, but certainly there were obstacles in the path.

Well now, a year later, those obstacles have been surmounted, and Run on Sun has officially enter the Drone Era!  Here’s how we did it…

Research

We started by doing some homework.  Lots of it.  Watching videos to see what it would take to make this happen.  The list was fairly long: what drone to purchase (there are a lot of drones out there!), how do you learn to fly one (safely!), what does it take to do this legally?  And on and on.

Choosing a drone…

Drones come in all shapes and sizes - to say nothing of costs.  Last year LG sent out a professional crew to photograph one of our installations (you can see one of those photos here), and they used a $20,000 drone for the task.  Clearly that was going to be too rich for our blood!  A number of years ago, my good buddy Josh - who is always on the bleeding edge of fun tools - had let us use his drone for shooting some video of our reservoir project. Josh did all the real flying, but I did get to take the controls and found it pretty straightforward to fly.  So we had some exposure to some of the different drones out there.

Our Mavic Air, aka Oscar

Our Mavic Air, FAA # FA3NMEK4RF - aka Oscar!

In looking around, it seemed like DJI was the market leader in the types of drones that we might consider.  Ultimately, we settled on the DJI Mavic Air (in Flame Red, thank you very much!), and we purchased the “More Fly Combo” which included two extra batteries, spare props, prop guards and a carrying case.  We also shelled out for a hardshell carrying case, a landing pad, and some neutral density filters.  Total outlay was just over $1,000, and for that we bring you our Mavic Air (nicknamed Oscar by Victoria who insists that it is the only robot she loves), FAA #FA3NMEK4RF. Which brings us to the next point - flying legally!

Making it Legal

Choosing a drone was fairly easy.  Figuring out how to fly it legally, that was more challenging.  Way back in the day, I was a private pilot, but I found that I either had the time, but no money, or the money, but no time.  And living in the greater LA area meant dealing with the most complicated airspace in the country, if not the world!  So I quit flying when my daughter was born and haven’t flown since.

But, that did give me a leg up in learning how to fly legally, since I was generally familiar with the rules and regulations from the Federal Aviation Administration (FAA).  One of the first things you learn is that any drone that weighs more than 0.55 pounds must be registered.  Our Mavic Air weighs in at just over 15 ounces, so registration was a must.  Turns out that is super easy, and can be done online for a nominal fee.  We had our local label maker create registration labels so our Mavic Air is legal everytime it flies!

Of course, getting me licensed was another matter!  I found a number of great resources online, including this great video created by Tony Northrup! Tony’s video is an hour and forty-three minutes long and I watched it multiple times.  He is clear, funny, and amazingly helpful.  I also found an online study guide (currently unavailable as they update it) here.

The test consists of 60 multiple choice questions and you need a 70% to pass.  While a significant number of the questions are really just common sense - like is the FAA going to ever suggest that having a drink of alcohol will improve your visual acuity??? - there are a number of questions that require you to parse a weather report that looks like this: KIAD 180005Z 19008KT 10SM TS SCT060CB BKN090 BKN200 31/21 A3002 RMK AO2 TSB04 FRQ LTGICCCCG SW TS SW MOV NE T03060211 (seriously!), or puzzle through a sectional chart that is one of the densest data presentations ever invented. (Don’t believe me?  You can download it here, but be patient, it will take a while!)

Suffice it to say, I took my test prep seriously, and the result was rewarding: 100%! 

Now all I needed was to start flying!

Flying for (fun) and Profit!

So now that I was a fully licensed drone pilot, it was time to start putting those skills to use.  Here are some recent drone shots and a description of their application.  (In each case, clicking on the image will give you a full-scale picture.

Completed residential solar installation   

Finished Project Photography

One of the really cool uses for the drone is to give homeowners a view of their new system that you just cannot get any other way!

This image shows a just completed tilt-up system on a flat - and very bright white roof!

Garage roof   

Residential Site Evaluation Photography

Another great reason to use the drone is to take imagery that our friends at Scanifly can turn into a 3-D model - all without actually going on the roof!  This is a 25 degree pitch garage roof - not really something you want to walk on if you don’t have to!  Guess what, thanks to the drone, everyone stayed on the ground and we got a great model to use for our proposal!

Array inspection   

Inspection Photography

The other day, one of our clients reported that a neighbor’s tree had fallen on his carport, where our solar system was installed five years ago.  When we came out, the array was completely buried under the tree.  We advised the client to get the tree removed and we would return to survey the array for damage.

Once again, we were able to examine the array closely for signs of damage, without ever breaking out a ladder!

Commercial building   

Commercial Site Evaluation Photography

One of our most anticipated uses if for modeling larger commercial roofs.  Using Scanifly, we can get shading readings for any area on the roof, letting us have very accurate production models, thereby allowing us to provide our commercial and non-profit clients with better proposals than ever before.  And when you try to distinguish yourself by the quality of the information that you can provide, this is a great leap forward!

We really think that the drone brings us a new level of safety and competence.  So when you call us for that site evaluation, don’t be surprised if we never break out the ladder, but instead let Oscar - the newest member of the Run on Sun team - do the hard work for us!

02/28/20

  04:46:00 am, by Jim Jenal - Founder & CEO   , 411 words  
Categories: All About Solar Power, PWP, LADWP, BWP, GWP, Residential Solar, Ranting

SMUD Scheme Threatens New Solar Homes Mandate

With very little fanfare, the Sacramento Municipal Utility District ("SMUD") just convinced the California Energy Commission to allow it to offer a SMUD-owned alternative to installing solar power systems on new homes under California’s just instituted New Solar Homes mandate. As other municipal utilities lined up in support – including PWP, LADWP, BWP and GWP – it is clear that this is nothing short of a full-on assault against the New Solar Homes mandate. Here’s our take…

Solar installed on a new home

Solar added to a new home in Altadena

The intent of the New Solar Homes mandate was to install appropriately sized solar power systems on every new home in California.  There are many benefits to such a program, including providing distributed power across the grid, thereby increasing grid reliability, as well as generating jobs and raising public awareness as solar becomes commonplace. 

The SMUD scheme thwarts all of that.  Instead, a SMUD-owned solar farm would have it production allocated across participating new homes.  (Tellingly, the SMUD scheme does not permit privately built community solar farms to participate in the program!)  Worse yet, the SMUD scheme effectively prevents subsequent home owners from adding local solar, since the first 4,700 kWhs must come from the SMUD-owned facility.

So how did this get approved?  In addition to all of the municipal utilities in California lining up behind SMUD’s power grab, so did much of the building industry (as they can simply fill out paperwork for compliance instead of actually building solar systems), and the IBEW (whose members get employed when utility-scale solar farms are built).  On the short end of the stick are local solar contractors, and consumers who lose the power to choose their own, local solar system because the builder decided to opt-into SMUD’s scheme.

What say you, PWP?

Which brings this back home.  While Pasadena Water and Power did not submit their own letter of support (that we could find), their trade association, the California Municipal Utilities Association, did.  Now there aren’t that many new homes being built in Pasadena at this point, but can we expect to see a similar power grab from PWP?  LADWP did submit their own letter and there are plenty of new homes going up within the City’s boundaries - is a similar scheme in the works?

The utilities rely on consumers being largely uninformed as to these schemes to push them through.  We will be keeping an eye on what our local utilities bring forward in the coming months.  Watch this space.

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02/19/20

  06:56:00 am, by Jim Jenal - Founder & CEO   , 742 words  
Categories: All About Solar Power, Residential Solar, Safety, Ranting

Watch Out - Shortcut Solar at Work!

I suspect that most of my NABCEP-Certified colleagues have had this happen - you are on your way to a jobsite when you pass a solar installation that is so painfully bad, that it stops you in your tracks and you just have to go and take a closer look at what happens when Shortcut Solar has botched another job. Follow me into a realm where you never want to find yourself, the horrifying reality of Shortcut Solar at work!

Uh-oh - Shortcut Solar at work!

I brake for Shortcut Solar!

Wow, there’s a lot going on there and none of it good.  The panels on the left are facing a variety of trees.  The panels on the right have a significant pitch-up to the south, with a lot of exposure to the wind out of the north.  The cable management there appears to be: let it just hang down.  That middle section is supposed to have 18″ of clearance at the hip given the panels on the adjacent face, but they are actually overlapping the hip!  And how exactly are these attached to the roof?  A closer investigation was in order!

Shortcut solar and wire management

How not to do cable management!

Seriously? Looks like old Shortcut was in a real hurry the day they did this job!  There is a rail there on the high end - surely you could have found some way to use that to get those cables in order - but clearly that wasn’t a priority!

But it was this last image that really got me going.  Checkout this attachment scheme:

Risky attachmentI apologize that the image isn’t too clear, but let’s try and break down what is going on here.  At the base in the foreground you can see what appears to be a 3″ or so piece of unistrut that has been cut to length and painted black.  There is no flashing of any sort visible here.  Instead, the strut has apparently been bolted directly onto the roof.  Perhaps those clever fellows from Shortcut Solar drilled pilot holes and squirted in some sealant?  Or maybe not - I mean why go to all that extra effort?

So that’s your attachment, now for the standoff - I know, how about a threaded piece of 3/8″ steel?  You can attach it at the bottom with a channel nut, and then just drill a hole in your aluminum rail and secure it with a nut above and below!  What could possibly go wrong?

Well let’s start with the wind.  When the Santa Ana winds blow out of the North, they will rock those panels, and that long, skinny bolt will flex with the wind.  It is steel and the rail is aluminum, which means that the steel, over time, will chew into the aluminum.  Enough flex over enough time, and that attachment scheme is going to fail - potentially in a catastrophic manner.

(Wanna see what happens when steel defeats aluminum on a roof in the wind?  Check this out!)

 It should come as no surprise that there is a better way to do this!  Here’s our preferred approach:

A better way to do this!The picture on the right shows one of the strongest possible combination of solar attachment components you could ask for.  The rail and L-foot comes from Everest.  The 3-inch standoff is from Unirac and the flashing is from Oatey.

Under the flashing is a rounded-rectangular base plate that accepts two, 5/16″ x 3 1/2″ lag bolts.  Two lag bolts gives you twice the strength, and hedges against hitting just the side of a rafter, or a possibly rotted/weak spot.  The 3-inch standoff screws down onto the base, and the Oatey flashing goes over it all, insuring that it will not leak.  The L-foot is bolted to the standoff and is in turn bolted into the rail - which was engineered to accept this configuration.  All components are torqued to the manufacturer’s specification, and marked to indicate that the torquing was performed.

Does it take longer to do things that way?  To be sure.  Does that mean it costs more to do it this way?  Of course.  But ask yourself, which of these approaches would you want on your roof?

We take pride in doing things the right way for our clients so that they can sleep well at night, no matter how hard the wind blows!

And we will continue to brake for Shortcut Solar and call out his subpar work whenever we see it so that you, a solar homeowner, will know what to look out for when you choose a solar installer!

07/17/19

  01:01:00 am, by Jim Jenal - Founder & CEO   , 926 words  
Categories: All About Solar Power, Residential Solar, Ranting, Shortcut Solar

California Solar Consumer Protection Guide Hits the Streets

CPUC Solar Consumer Protection Guide

For the longest time we have been talking about the need for the solar industry to do a better job of policing itself, because the manner in which too many solar companies were doing business was simply unsustainable.  We argued that if we didn’t do a better job, others would step in and do it for us. 

Well guess what, the California Public Utilities Commission (CPUC) has just published a 23-page tome titled, California Solar Consumer Protection Guide.  Now that is quite a mouthful, but come September 30th, every contract in California that is entered into for solar with one of the investor-owned utilities (IOUs) – that is, SCE, PG&E, and SDG&E – requires that the first four pages be initialed, the last page signed, and the whole thing uploaded to the IOU’s web portal!  Moreover, homeowners need to be given adequate time (and patience?) to read the entire document and only wet signatures (i.e., no E-sign) are allowed.  Here’s our take…

Who Will this Deter?

First and foremost, the more information consumers have, the less likely they will be taken in by shady contractors.  Ultimately, that is good for both consumers and the legitimate players in the solar industry.  Frankly it’s too bad that the trade associations didn’t create something like this and require their members to disseminate it to potential clients – I’m confident that they would have produced a better guide.

For Run on Sun, this really doesn’t change anything that we will be doing since we have always covered this type of information with our clients.  (You know, we are “tellers, not sellers.")    But it will be really interesting to see how the bad players respond.  My guess is that they will simple forge signatures – if you are willing to deceive your customer, you will have no qualms about deceiving a bunch of regulators.

Meanwhile, for the Non-Shady Solar Installers…

As to the rest of us, while this will mostly be business as usual, there are some disturbing things.

For example, on page 8, where the CPUC is trying to explain the installation process, they have this bullet point under the heading, After You Sign a Contract: “Installer… performs a home site visit to confirm assumptions and check roof, ground, and electric conditions."  Hold the phone.  If the installer doesn’t know the condition of your roof and electrical service when you sign the contract, that contract is invalid! 

Key terms that are left to a later time means that there was no agreement between the parties, no “meeting of the minds,” and hence the contract is not binding.  So why is the CPUC publishing such nonsense?  Because many of the larger solar companies operate this way and they were no doubt insisting that this language be included. 

But no - before you sign a contract, those assumptions have to be nailed down if you are to avoid costly change orders down the road.  (Oh, and why aren’t change orders discussed here?  Sigh.)

Under Step 3: Find a Qualified Solar Provider they suggest going to the Contractors State License Board and the California DGStats website.  But that’s a lousy way to identify a qualified provider.  For one thing, being listed with the CSLB just means you have a license - but lots of companies play all kinds of tricks to have a license number and you wouldn’t want them anywhere near your home.  And the DGStats site is interesting, but it only shows projects installed in the IOUs territory - locally that means SCE.  But installs done in Pasadena or Los Angeles, Burbank, Glendale, Azusa, or Anaheim (for example) will not show up there at all, since the municipal utilities do not report their projects to that site.

Only under the area of narrowing down your list to they suggest checking the website of certified PV installation professionals provided by the North American Board of Certified Energy Professionals (NABCEP) – which is the only resource listed that actually does anything to qualify installers!  (Check out the NABCEP list here.)  Oddly, the directory of companies belonging to the California Solar and Storage association (calssa.org) was not referenced as a resource at all!

 Under Step 5: Learn About Electricity Bill Savings they have this interesting statement: “Before you sign a contract, ask yourself: if the savings end up being lower than the estimated monthly or yearly savings, does getting rooftop solar still make sense to me?"  Wow - how much did the IOUs have to pay to get that language inserted?  How about adding this in rebuttal: “Before you sign a contract, ask yourself: How much would it mean to me to be able to really stick it to my utility?"  Because we have certainly had many a client tell us that all they really want to do is make SCE feel the pain!

Wouldn’t more useful questions to ask before you sign the contract be: How did your installer calculate your potential savings?  What assumptions did they make, for example,about the rate of growth for future electric bills, or the degradation of the output of your PV system?  What software did they use and how does it work?  Or did they just pull a number out of the ether?

Under Step 8: Sign this Guide we get to explain to our new client why they have to initial 4 pages, check three boxes, and then sign the Guide - in addition to the installer’s contract and the interconnection agreement.  (To say nothing of financing documents if they are foolish enough to buy into a Lease/PPA).  Yet more hoops to jump through before Going Solar.

But you know what, folks?  We have only ourselves to blame.

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Jim Jenal is the Founder & CEO of Run on Sun, Pasadena's premier installer and integrator of top-of-the-line solar power installations.
Run on Sun also offers solar consulting services, working with consumers, utilities, and municipalities to help them make solar power affordable and reliable.

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