Thoughts on Solar

At Run on Sun we work hard to build trust with our potential clients, and to maintain that trust with those who choose to go forward with us.  Recently, our distribution partner, BayWa, r.e. asked Run on Sun Founder and CEO, Jim Jenal, to join a podcast discussing that very issue.  Jim shared the mic with Tom Miller, Creative Director at BayWa, and Pam Cargill, Principal at Chaolysti Interactive, a consulting firm focused on improving the solar industry.

Although Jim was a bit embarrassed by the title - “In Jim We Trust” is a bit much - he stands by the thoughts expressed!  Check it out:

We would love to hear from both clients and other installers alike - how important is it to build trust?  What do you do to achieve that end?  And what happens when that trust is damaged, how do you make things right?

Run on Sun has been doing Pasadena Solar for more than 10 years, but only now have we gotten around to dedicating a webpage just to Pasadena Solar! 

Who loves Pasadena Solar?

I know, kinda silly (and foolish from an SEO perspective) but we figured we were fine as we were.  But then I looked at the search results on Google for “Pasadena Solar” and it was really depressing.  I mean seriously - read some of those reviews and you know that they are fake - but still their related websites were getting better rankings than ours!  Not acceptable!!!

So now, if you want to see a webpage that proudly proclaims its love for Pasadena Solar, we’ve got you covered - complete with this iconic image!

Oh, and because we do so much work in neighboring Altadena we are hoping to do a shout-out page for them too but we need an idea for the quintessential Altadena image - if you have ideas, please let us know!

As Run on Sun rings in the new year and looks forward to a great 2017, we have some big news of changes taking place on our team. Our Projects Coordinator / Solar Ninja, Laurel, has moved to Oregon to spread the joys of solar power  in her home state. She wanted to share some final thoughts with her Run on Sun solar family…

Just over two years ago I made a flash decision that would change my career trajectory in a bigger way than I ever could have imagined. I came to Los Angeles after earning my Masters in Global Public Health. While I’ve always been passionate about solutions to environment and health, I hadn’t ever thought about working in the solar industry for perhaps obvious reasons (EVERYONE asks me how I started in solar with a public health background). After a few months living in LA without finding health work, I met someone at a green event who worked for a solar company. That encounter got me thinking about the fact that there is so much sun in Los Angeles but the air pollution is literally in your face every day. I realized that PV Solar provides an incredible opportunity to work towards something of real value for people, the environment, and for broader global health reducing the impacts of burning fossil fuels. So I took a chance and after doing a little research into who was working in my nearby vicinity (avoiding commuting in LA was a big priority) and who was doing solar for the right reasons… I contacted Jim Jenal at Run on Sun. I told Jim I was happy to schlep materials around the county, handle paperwork, answer phones, and do whatever it took to get more solar into our community if he would just teach me all about the industry. I didn’t realize quite how far that deal would go. You see, one of Jim’s past lives was as a high school teacher and despite the small size of his company he is considered one of the thought leaders in the solar industry, largely through this blog.

Over the next two years he taught me everything there is to know about running a solar installation company. Its not very often that one is given the opportunity to learn every aspect of an industry with an employer who gives you the confidence and tools you need to grow exponentially in a short period of time. I ate it all up! After a year I was wearing as many hats as one can imagine in a solar installation business… Inside Sales, Lead Developer, Site Assessor, Project Designer, Project Coordinator, Safety and Health Officer, Marketing Manager, Solar Blog Writer, Boom Lift Operator and of course Solar Installer. That’s when I made my own business cards with my new self-proclaimed title - “Solar Ninja". 

Working with Velvet, Ralph, Josh, Robert, and Jim on Run on Sun’s team was more empowering and satisfying than I ever imagined working in a for-profit field could be. I was helping people to reduce their impact on the environment, lower their costs, and show their neighbors that renewable energy is a real solution everyone can be a part of. I learned that, counter to popular belief, a sales person could be honest, forthright, and down to earth. I learned that we could run our business with integrity and give people quality 20+ year products they could trust. I learned that people who want to go solar are some of the coolest people and really makes sales work a joy. And more than anything else, I learned that I wanted to stay in this exciting industry that was growing and improving exponentially before my eyes. 

It was with the support of Jim Jenal and all the know-how he bestowed upon me that I was able to earn my PV Solar Technical Sales Professional certification through NABCEP. And I was offered an exciting position managing a new solar installation branch in Bend, Oregon for a forward-thinking solar company, Elemental Energy. Elemental even has a non-profit arm called Twende, installing off-grid systems in developing countries around the world! So this truly is a dream job combining my Global Health and Solar Ninja skills into one awesome adventure!  

I am sad to be saying goodbye both to the Run on Sun team and all the wonderful clients I worked with over my tenure which we fondly refer to as our Run on Sun family. Though the sun is setting on my time in Southern California, the sun is shining bright (everything is literally whitewashed with snow currently) in Bend! I look forward to hearing how things continue to grow with Run on Sun. If ever you or someone you know finds yourself with property that needs to be solarized in Central Oregon I’d love to hear from you! 

Thank you for reading my humble Thoughts on Solar! Much love and sunshine for all — Laurel

A client of ours noted that Pasadena Water and Power (PWP) offers, in addition to its regular, Residential tiered rate structure, the option to switch to a Time-of-Use rate structure, and he asked if he would derive additional savings from making that switch. Turns out that is not an easy question to answer, and there certainly isn’t a “one size fits all” result. We decided to take a closer look into these rates both for PWP and for the folks in Southern California Edison (SCE) territory.

SPOILER ALERT - The following is pretty much down in the weeds.  You have been warned!

Defining Tiered and Time-of-Use (TOU) Rates

Let’s start by defining our terms. Most residential electric customers, of both PWP and SCE, are on a tiered rate structure. That means that there are two or more cost steps - called tiers - for the energy that you use. Tiered rates assume that there is some minimally expensive charge for the first allocation of energy per billing cycle, and that as you use more energy your cost for energy increases. For example, SCE’s Domestic rate has three tiers and in the first tier the charge is 8.8¢/kWh, in the second tier the charge is 16¢/kWh, but the final tier is 22.4¢/kWh! (There  is also a non-tiered component that adds another 6.9¢/kWh to the customer’s bill.)

PWP, on the other hand, has a somewhat perverse tier structure in that the lowest tier is very cheap, 1.7¢/kWh, the second tier is significantly higher, 13.5¢/kWh, but the final tier actually goes down to just 9.9¢/kWh! Since the whole point of tiered rates is to provide an incentive for heavy users to reduce their usage, PWP is actually rewarding those who consume more than 25 kWh per day with lower rates! Very odd.

Time-of-use rates, on the other hand, are generally not tiered. Instead, the day is broken up into segments and the cost of energy varies depending on the segment in which it is consumed. PWP refers to these segments as “On-Peak” (from 3-8 p.m.) and “Off-Peak” (all other hours). But PWP’s TOU rate retains the tiered element as well, making it a truly odd hybrid rate structure.

SCE’s approach is more involved, dividing the day into three, more complicated segments: “On-Peak” (2-8 p.m. weekdays - holidays excluded), “Super Off-Peak” (10 p.m. to 8 a.m. everyday), and “Off-Peak” (all other hours).

For both PWP and SCE there is a seasonal overlay on these rates, with energy costs increasing in the summer months (defined as June 1 through September 30).

(It is important to note that both PWP’s and SCE’s TOU rates put the most expensive energy in the late afternoon to evening time period - pricing energy to offset against the “head of the duck.” Ultimately, these rates will create the energy storage market in California, but that is a post for another day.

Analyzing the Benefits of a Rate Switch - Pre-Solar

Assuming that one can create a spreadsheet to model these different rates (not a small task in and of itself!) there is one more hangup - data. Both PWP and SCE report total monthly usage to customers on their tiered rate plans - but in order to analyze your potential bill under a TOU rate, you must have hourly usage data for every day of the year! (Because there are 8,760 hours in a [non-leap] year, such a usage data collection is typically referred to as an 8760 file.)

The standard meters that PWP has installed simply do not record that data, so the average PWP customer has no way to know whether they would save money by making the switch.

On the other hand, most SCE customers do have access to that data and they can download it from SCE’s website.

After you create an account, login to it and go the “My Account” page. On the left-hand-side you will see some options - click on “My Green Button Data” (the too cute by half name for the interval data you are seeking), select the data range for the past twelve months, set the download format to “csv” and check the account from which to download. Then press the “download” button and cross your fingers - in our experience, the SCE website fails about as often as it actually produces the data that you are seeking!

Modeling PWP

Given that PWP doesn’t have data available, is there any way to estimate what the results might be? The answer is, sort of. We took an 8760 data set from an SCE customer and used that as our test data for both PWP and SCE. (The data file does not identify the customer.) Since the data file has an entry for every hour of every day, we can segment the usage against the On-Peak and Off-Peak hours, and using a pivot table - probably the most powerful took in Excel - we can summarize those values over the course of the year, as you see in Figure 1.

Figure 1 - Usage Profile for PWP

Summer months are highlighted in orange. For this specific energy usage profile, Off-Peak usage is more than twice that of the On-Peak usage (9,806 to 4,009 kWh respectively). So how does that work out when we apply the two different rate structures? The table in Figure 2 shows the details of the two rates:

Figure 2 - PWP Rates - Standard Residential and TOU

Under both rate plans, the distribution is tiered (with the perverse reverse incentive for usage above 750 kWh). Added to that is either the seasonally adjusted flat rate for energy, or the seasonally adjusted TOU energy charge.

Applying those rates to the Usage Profile in Figure 1 allows us to see what the energy and distribution components would be under both approaches. Given the hybrid nature of these rates, you might expect them to be similar and you would be correct. The distribution charge - which applies to both - comes to $1,180 for the year. The flat rate energy charge comes to $893, whereas the TOU charge is $985. Meaning that someone electing to use the TOU rate would have a yearly total of $2,165, whereas the flat rate user would have a total bill of $2,074, making the TOU rate - for this specific energy profile - 4% higher.

Beyond that, PWP has a number of other charges - such as a public benefit charge, an underground surtax, and a transmission charge - that are only tied to total usage, so the ultimate difference between these two rates is even smaller.

Modeling SCE

SCE rate structures are significantly more complicated that PWP’s. For example, the tier 1 (aka baseline) allocation varies by location. Since SCE covers such a huge and diverse area from cool coastal regions to absolute deserts, customers are allocated more energy per day in their baseline depending upon where they live. In the area around Pasadena that is covered by SCE, a typical daily baseline allowance would be 13.3 kWh in the summer and 10.8 kWh in the non-summer months. The baseline then is that number times the number of days in the billing cycle. Tier 2 applies to every kWh above baseline, but below 200% of baseline. Tier 3 applies to everything beyond that. As with PWP, the tiered rate only applies to “delivery” charges. The energy generation charges are the same all year. Here’s what that rate structure looks like:

Figure 3 - SCE’s Tiered Domestic Rate

The first thing that you notice when you look at this rate is how much higher it is than the rates from PWP, and the end calculation bears that out - the same usage that resulted in an annual bill of $2,074 in Pasadena becomes $3,227 once you cross the border into Altadena, South Pasadena, San Marino, or Sierra Madre - an increase of 56%! (There’s a reason why a growing percentage of our clients are coming from those surrounding, SCE-territory communities!)

So what would happen if this beleaguered client were to shift to a TOU rate? First, we need to re-parse the usage data according to SCE’s more complicated segmentation scheme, which gives us Figure 4:

Figure 4 - SCE’s Segmented Usage Data

Once again, the On-Peak usage is the smallest category of the three, amounting to just 23% of total usage, compared to 42% in Off-Peak, and 35% in Super Off-Peak.

Of course, SCE can’t do anything in a simple fashion, so they have not one but two basic approaches to their TOU rates, Option A and Option B.  Option A rates run from a low of 13¢/kWh (in summer Super Off-Peak), to 29¢/kWh (during summer Off-Peak) to an eye-popping 44¢/kWh (during summer On-Peak).  However, Option A includes a credit of 9.9¢/kWh on the first baseline worth of energy which reduces the monthly bill by roughly $30.

Option B deletes that baseline credit and replaces it with a “meter charge” (even though it is the same meter!) of 53.8¢/kWh/day, or roughly $17/month.  In return, the On-Peak charges are significantly reduced from 44¢/kWh to just 32¢/kWh.

So how does this shake out?  The results are quite surprising, as shown in Figure 5.

Figure 5 - SCE Rate Structure Comparison

The two left columns show the month-by-month calculations for both delivery (the tiered component) and generation (the flat component).  The two right columns show the month-by-month calculations for the two different TOU rates.

The bottom line is striking: under TOU-A there is a savings of 5% over the tiered rate, whereas the savings jump to 19% by going to TOU-B!  That is a savings of $600/year just by changing rate plans - a switch that any SCE customer can make.

MAJOR CAVEAT: YOUR MILEAGE WILL VARY!

The results displayed here are entirely dependent on your actual energy usage and no two usage profiles are alike.   It is possible, even likely, that some usage profiles will see an increase in bills under either TOU option.

The good news is, that for a nominal fee,  this is an analysis that we could do for any SCE residential customer - we would just need access to your usage data.

So that completes our pre-solar analysis. In our next post, we will look at how these results change when you add a solar power system into the mix.

I love conducting solar site assessments and having that first conversation with a potential client. Often we spend far more time discussing all the ins and outs of going solar with the property owner than is necessary for the solar assessment measurements. One of the questions we always spend some time on is: “How exactly is Run on Sun different than other solar companies?” Here in sunny Southern California this is an important question as there are so many people offering PV solar services. Of course I describe how the products we use are selected for their high quality, warranties, and trust in the manufacturers. I also explain how as a small company with a mission focus, we take a very honest and ethical approach to helping people green their energy. But one of the major ways we stand above all the rest is also a feature that is hard to convey in that first conversation. Hence, the theme of this blog post…

My best answer to the above question, “We have Velvet Dallesandro as our Chief Electrician.”

The work that Velvet does connecting the power of the sun to your electric meter is akin to an art form. But alas, the art of a solar electrician is often hidden behind dead plates and easy to overlook if you’re not paying attention. So here are a few examples of Velvet’s work. She may not be in a Los Angeles art gallery but her work is providing people with beautiful, safe, and emission-free energy across the county! 

If you’ve ever looked behind the dead plate on your electric bus (where all your breakers are) you likely were frightened by what you saw. A mess of cables, cobwebs, and sometimes outright dangerous circumstances - like the time I saw one missing its main breaker entirely. However, if Velvet is re-wiring your service panel it may look more like something you could put on your wall with rainbows of color coded wires and perfect 90 degree bends. (Service panel shown at left by Velvet, solar AC disconnect work at right by Ralph Carillo.)

Wiring is far from Velvet’s only art form. How do installers bring solar power from the roof to the electrical service? While the most visually appealing is to hide the magic completely by going thru an attic space and inside walls but sometimes that just isn’t possible. 

Velvet doesn’t just throw flex conduit around willy nilly to get the job done quick like some installers. It takes a lot of creativity to make the wiring run as attractive as possible. First and foremost, she always uses galvanized conduit for outside wiring as opposed to flex - it lasts for the long run and it is much more difficult to punch a fire axe through than flex, making it much safer. Second, Velvet avoids piecing together conduit as much as possible. Her goal is to make whatever crazy runs are necessary as seamless as possible - think avoiding possible leaky weak spots at seams. This means she has become a jedi master at bending conduit. Eight bends in one stick of conduit paralleling windows, gutters, or that pretty bush you don’t want to disturb? Not out of the question when Velvet is on the job (or her prodigy apprentice Ralph for that matter).