Thoughts on Solar

Readers of this blog are well aware of the fight being waged before the California Public Utilities Commission (CPUC) as we first wrote about this back in February!  Now we are entering the final stretch in this fight, and quite frankly, we are losing. 

Why, you ask?  How can we be losing the battle to preserve your right to put solar on your home or business, when everybody loves that idea?  The answer is easy: the opposing forces - we are talking about you here, Southern California Edison - have nearly infinitely more money than we do, and they are spending it like crazy.  So how do we possibly fight back?

With you.  And tens of thousands of other folks just like you.

The California Solar and Storage Association (CALSSA) - our trade association - is fighting hard to preserve the value of the investment made by past solar clients, and those in the future.  They have created an audacious goal: generate 200,000 public comments by November 20!  Here’s how CALSSA framed the fight:

“If the broad light of day could be let in upon men’s actions, it would purify them as the sun disinfects” – 1891, Louis Brandeis, US Supreme Court Justice

In 2015, the pro-solar coalition submitted 130,000 public comments to the CPUC on the NEM-2 decision. Today, as we near the homestretch in the NEM-3 proceeding, the headwinds are greater and the opposition better organized. Therefore, we are launching a campaign today to reach our goal of generating two hundred thousand public comments by November 20. Reaching this goal would break the record for the greatest number of public comments received by a state agency in history – previously set by solar advocates in 2015. Simply put, two hundred thousand is a number that the CPUC and the governor simply can’t ignore. It is the sunshine that is needed to fight against the corrupting influence of SCE and the other utilities. 

We cannot afford anyone sitting on the sidelines.  If you own a solar power system, the value of your investment is at stake.  If you realize that rooftop solar is a key piece in how we reduce carbon emissions to combat climate change, that goal is under attack!

It’s easy to join the fight: Mash that button below and tell the CPUC to side with solar consumers and not with the utilities!

While you weren’t watching, SCE - the same SCE that is trying to kill off rooftop solar - just raised their Time-of-Use rates for residential customers. We will break down the increase and show you what it might mean for a couple of potential solar clients.

What are Time-of-Use Rates?

Time-of-Use (or TOU) rates are exactly what they sound like: a rate structure where how much you pay for energy is tied to when you use that energy.  (We wrote a lengthy blog post explaining the differences between TOU rates and Tiered rates, in gory detail!) 

The most common TOU rate for SCE’s residential customers is titled TOU-D, with the 4-9 p.m. window having the highest rates overall.  Compared to a tiered rate -  where your monthly bill is divided into steps based on the volume of energy that you use, with each volumetric step, or tier, bringing you a higher rate - a TOU rate does not increase on volume but on the time of day.  As a result, rates during peak periods can be 50% or more higher than the lowest periods.  Of course, that peak period - either 4-9 or 5-8 with SCE - corresponds to when people generally use the most energy!  Gotcha!!! (Those rate differentials are what provide the economic benefit of adding storage, and make simple strategies - like delaying the dishwasher or EV charging until out of peak rates - effective at saving money.)

How is SCE’s TOU Rate Changing?

Needless to say, SCE’s rates are very complex, with the energy charge being comprised of some eleven different components!  I will spare you those distressing details and just focus on the overall energy charge and how it has changed, as shown in this table:

SCE’s TOU-D Rate change for the 4-9 p.m. option.

On average, we see that rates here have increased between 3.67 and 3.80% over the prior rate, but there are some special gifts to solar customers buried in the rates.  When the Net Metering rules were changed a few years ago, it introduced the concept of Non-Bypassable Charges (or NBCs) - components of the rate structure that solar customers paid for every killowatt hour pulled from the grid, even if that same kWh was netted back by energy exported to the grid.  Far and away the largest NBC is the Public Purpose Programs charge, and in this rate increase it jumped from 1.323¢/kWh to 1.622¢/kWh - a whopping 22.6% increase! 

Another fun fact for SCE customers who have endured so called public-safety shutdowns, is that they are paying 0.6¢/kWh toward the “wildfire fund charge"!  That’s right, SCE’s customers are helping to pay for an insurance fund against wildfires caused by SCE, PG&E, and SDG&E - now isn’t that almost enough to get one hot enough to, well, burn!

Use Case Impacts

We decided to examine how potential clients would see their bills, and potential savings, change under the new rate structure.  As always, we made use of the wonderful tool Energy Toolbase to do our calculations. 

Our first example is a pretty average user in the Run on Sun service area, consuming approximately 30 kWh of energy per day, pre-solar.  Under the old TOU rate their annual bill pre-solar was $2,946, but under the new rate (including things like utility user taxes, etc.) their bill would go up by nearly 5%, an extra $144 for the year.  However, their post-solar savings also increase, by 5.42% or an extra $143 per year.  For this average user, adding solar ended up being a nearly perfect hedge against the SCE rate increase!

Our second user does not fare quite as well.  This is a significantly larger user, consuming more than 50 kWh/day.  Their pre-solar bill increases by 4.29%, or $228. Unfortunately, while their overall savings increases, it is not as dramatic as it is for the smaller user, reducing the differential from $228 to $92, compared to reducing it to just $1 for the average user.

Bottom line - adding solar helps hedge against rate increases, and as energy costs get higher, your annual savings will increase!

Meanwhile, SCE is Trying to Kill Rooftop Solar

It is one thing for SCE to be seeking, and getting, rate increases from the CPUC - that is their business model.  It is quite another thing for them to try and gut the value of net metering, thereby eliminating the economic value of adding solar - but that is precisely what they are trying to do!  We are fighting back, starting with a signature campaign targeted at a petition to Governor Newsom. 

There will be lots more to do in the coming days to fight against SCE’s attack on solar, but for now there is something simple that you can do - mash that button below and go sign the petition!

We recently received PTO for a new project in Altadena, and part of what made this interesting was that we decided to modify the project mid-stream so that we would be positioned to add an Enphase Ensemble Storage System down the road.  We wanted to configure the layout so that when the storage was added, we could just “plug-and-play” - so here’s how that turned out…

Oh County, Why do you make EVERYTHING so Hard?

Our approved plans from LA County showed the solar disconnect adjacent to the service panel, but that really wouldn’t work out if we were going to add storage.   Instead, we were going to install a backup subpanel near the main panel and the Enphase Enpower switch next to that.  Then we would run conduit to a gutter box on the wall, above which the storage device(s) would eventually be installed, and then we would have our combiner box and PV disconnect.  So I redrew the site plan showing the location of the revised equipment, and a new single line drawing to show how everything would be interconnected, crossed my fingers and hit “Submit".

Nope.

County would not allow us to revise our existing solar permit to incorporate the Enpower switch.  Instead, we had to revise our solar site plan to just show the new location for the disconnect, and leave off the Enpower switch.  Then, we needed to pull a second permit - a complex electrical permit - that included a site plan with all of the equipment (all solar components designated as Existing!), and the full single line drawing.  And, yeah, pay for it.  Seriously?

Patience Carries the Day!

Ultimately we were able to overcome all of County’s complaints and get the project approved.  Happily, SCE issued PTO almost immediately, so we came back to go live with the system.  Our client, Sean, decided to memorialize the process, so here is an edited version of that footage that let’s you see how we designed for the future, and the process of bringing the system online.  Check it out!

After watching the Power Trip Documentary by Jonathan Scotts, I was instantly compelled to share it with everyone I know. This documentary encompasses the energy history of America and delves into major political, social, economic, and environmental issues that we have been facing for centuries. If you are passionate about solar, or if you are questioning solar–Power Trip will settle all arguments surrounding the industry. Not only does it unveil the dark parts of utility companies, but it sheds light on the importance of renewable energy and the power it has to transform a community.

Jonathan Scotts, best known for his starring role in the show Property Brothers, took the viewers through different parts of the country while meeting with residents, famers, and corporate utility companies to discuss solar. He starts in states such as Georgia and Nevada, which are ruled by utility companies and legislation preventing net-metering, solar incentives, and last but not least–energy education. According to a Georgia farmer, “two years ago, you couldn’t talk to anyone about solar.” People literally didn’t want to hear that word come out of anyone’s mouth. It seemed as though there was anger surrounding it, or maybe just lack of understanding. Whatever the reason may be, we can conclude that this fear of solar derived from money-hungry politicians preaching the words “subsidy” over and over until you collapse into the safe, welcoming arms of your utility company.

In fact, there was an Amendment passed in Florida that prevented solar from gaining popularity. How ironic- the sunshine state of the U.S. bans the power of the sun! This amendment tried to trick solar supporters into thinking the ballot was pro-solar. According to the Miami Herald, “the amendment attempted to use the popularity of solar to embed new language into the Florida Constitution that could have been used as a legal barrier to raise fees on solar users and keep out companies that want to compete with the utilities to provide solar energy generation.” If you are still questioning this “narrative,” there is recorded audio evidence from Sal Nuzzo, who is the Vice President of Policy for The James Madison Institute, acknowledging just how deceptive the Florida Amendment 1 tactic was. You can clearly hear him state, “Remember this: solar polls very well… to the degree that we can use a little political jiu-jitsu and take what they are pitting us on and use it to our benefit…use the language of promoting solar, and kind of put in these protections for customers who choose not to install rooftop.”

So now that we have uncovered the dark secrets of utility companies and politicians, let’s see how this push for toxic energy plants destroys lives and families. Jonathan takes us to Kentucky, where traditional America is still holding out hope for the coal industry. An industry that was once powering our world is now a dying flame. Not only do we lack the resources to continue with coal-powered plants, but we are suffering from their pollutants! This is where Environmental racism comes into play. 70% of African American communities live within 30-40 miles of a toxic emitting power plant. Is this a coincidence? No! The state grants these utilities the right to build power plants in low-income minority communities, knowing they do not have the money to relocate or the voice to be heard. These power plants are dumping coal ash into their water, causing diseases, cancers, and other major health problems. For years, they have been silenced and no action has been taken. It is time to eliminate the empty promise of “cheap” fossil fuels and start looking towards a reliable, clean, and safe resource. It is time for people in power to put humanity first.

As Jonathan noted:

My motivation to tell this story started out as environmental. It quickly became social, and then it was personal…this is not about your party, or the color of your state. This is about people, their lives, their planet. We all want better, healthier lives for our family and children. Whether you’re fighting to save the planet or save money, we all win if things change.

He hit the nail right on the head. We all benefit if we prioritize lives over money. We all benefit if we choose the planet. Lastly, we all win if we go solar.

Watch the documentary below! 

On Tuesday, August 11, 2020, Enphase sent out a notice to its top installers alerting them that starting in December, the Ensemble Storage System would support earlier generation microinverters and not just the IQ series as had been originally announced.  We contacted Enphase to learn more, and here is our report…

Some Background…

Last November we wrote about the coming Ensemble rollout.  In describing how Ensemble could be incorporated with existing systems we wrote:

First, you need to have IQ microinverters.  At least as of the initial rollout of this system, the older microinverters are not supported.  That means that the M and S-series of microinverters have to be replaced to IQ-series microinverters to work with Ensemble.  (I do not know if this will change in the future, but it is the guidance that we are getting at this time.)  It is possible that there will be some sort of replacement program (like Enphase did with the legacy M-190 customers), but I have not gotten any word about such a plan yet.

As we were told by Enphase CEO, Badri Kothandaraman, at SPI last year, it was important for Enphase to focus on a successful launch of Ensemble, and the way to do that was to concentrate on pairing it with the more capable IQ series of microinverters.  It had been disappointing news, but understandable given the challenges of bringing a product as technically sophisticated as Ensemble to market.

So I was more than a bit surprised when I saw the announcement from David Ranhoff, Chief Commercial Officer at Enphase, that Ensemble would be able to support M215 and M250-based systems as of December!  Of course this raised nearly as many questions as it answered, so I reached out to Enphase for more details.  

What We Know Now

I was able to speak with Utsav Ghosh, Senior Product Manager, about the details behind the announcement.

Our first question was: What about the S280’s?  They are more capable than the M-series, so are they included?  Sadly, no, not at this time.  Given that the M215’s and M250’s are the largest segment of the non-IQ installed base, they generated the greatest number of inquiries, and so they got the staffing attention.

I remarked that given the relatively short window between when Ensemble was available for the IQ micros and when it will be available for the M-series, why not just say that they would be supported.  The answer, it seems, is that in refining Ensemble, they realized that it would be easier than previously thought to fold in the M215/250’s.  This, of course, gives me hope that the S280’s won’t be far down the line.  Squeak, squeak!

Enphase M215 Microinverter is Eligible…	As is the M250 to work with the Ensemble Storage System!
Alas, the S280 is out of the picture, for now!

Our next question concerned communications - the M-series micros communicate via Power Line Communications (PLC) via the neutral and hot conductors.  The IQ-series does not bring a neutral to the roof, so it communicates PLC from hot to hot.  How does this get resolved?  

Turns out quite easily, assuming you have an Envoy-S, like the one on the right.  So how do the IQ8 microinverters in Ensemble communicate with the Envoy?  As it turns out, the same way that they do in an IQ system - via the add on Comm Kit that adds Zigbee capability to the Envoy-S.  The even better news is that Comm Kit is part of every Ensemble Storage System, so there is no additional cost for M-series systems over IQ systems!  Yay!  (The Envoy-S will need a new software version, but that is a free download.)

Our next concern had to do with speed issues: the M-series micros just aren’t anywhere near as computationally powerful as their IQ cousins.  Would the seamless backup functionality promised with the IQ series still apply?  Yes, we were assured.  Cool!

Which brought us to our final question: What ratio of legacy inverters to IQ8 inverters will be needed to allow the microgrid to operate?  Recall that with the IQ series we are presently being told that the ratio is 1.5:1, that is, an Encharge 10, that has 12 IQ8 micros inside, can support up to 18 IQ 6 or 7 micros on the roof.  (While we are hoping to see some movement on that front, that is the present design guidance.)  So what will the ratio be for the M-series?

Great question - no precise answer as of yet, other than “it will be more restrictive."  There is testing ongoing to establish precisely what those limits are, which is why the availability is being cited for December and not now.  Obviously we will be following this closely and will update you when we know more, watch this space!

I want to thank Utsav Ghosh for being so responsive and generous with his time.

And I especially want to thank Enphase for responding to the cries of their clients in getting this much-needed functionality addressed.  Great job, folks!

Now about those S280’s…