Going Solar

[RobbieB]

It got final approval from the city inspector and it's in to PG&E for "permission to operate", I checked the PG&E site for more info and found something interesting. The net metering cap was set by law at 5% of total generation and it's almost gone.

Of the 2409 megawatts allowed only 7%, 174 MW remain. Woo-hoo, in right under the wire -

 

[skipro33]

It got final approval from the city inspector and it's in to PG&E for "permission to operate", I checked the PG&E site for more info and found something interesting. The net metering cap was set by law at 5% of total generation and it's almost gone.

Of the 2409 megawatts allowed only 7%, 174 MW remain. Woo-hoo, in right under the wire -

Too bad you didn't get it in last month. The window for the optimal Time-Of-Use rates closed. Peak time was 1pm to 7pm with part peaks at 10am to 1pm and 7pm to 9pm
The rate was called E6 rate.

So when I make electricity during those hours above what I use, I bank it at the peak rates. Now I think TOU is around 3pm to 9pm. Not generating near as much during those hours and therefore, not banking at the premium rates.

 

[RobbieB]

I changed to E6 when I hired the job as the contractor advised, so I am on the E6 plan even though I'm not operating yet. It did cause my bill to rise but not for long.

I'm always going to be buying power from PG&E. I think my usage is around 7000 KWH/yr and my generation is only going to be ~5500.

 

[skipro33]

I changed to E6 when I hired the job as the contractor advised, so I am on the E6 plan even though I'm not operating yet. It did cause my bill to rise but not for long.

I'm always going to be buying power from PG&E. I think my usage is around 7000 KWH/yr and my generation is only going to be ~5500.

You'll be amazed;
Selling unused power to PG&E at 36 cents per kwh and buying it back at off peak; night time, for 16 cents doesn't take long to close the gap.

 

[RobbieB]

Have you received your end of year "net bill" yet?

 

[skipro33]

I got my true-up bill in July. It was 36 cents. That was for some federal tax of some sort. I forgot the cap-and -trade credits rate payers get a couple times a year. I actually was over paid by $16 based on that, but you can't get overage from cap and trade rebates back or bank 'em.

This even covered my monthly connection charge of something like 36 cents a day. (roughly $10 a month.)

BTW since we have to pay the minimum 36 cents a day for connection to the grid, you may as well use $10 worth of power as it offsets the first $10 or so of energy use.

 

[RobbieB]

Cool, good to hear!

Yes, they are working on a "new net metering plan" after this one expires soon and it's not going to be as good a deal as we got -

 

[Another Reader]

RobbieB is correct. The PG&E solar party is over. E6 was replaced by two TOU plans, ETOUA and ETOUB. One is 3 to 8 PM and the other is 4 to 9 PM. No vendor will guarantee they can get the system installed, inspected and the PTO by the date the net metering agreement will expire. And it's not known yet what the new net metering agreement will be.

 

[skipro33]

I'm sure the new net metering agreement won't be a solar rate payer friendly. The E6 rate sunsets in 2022 I think. So, while grandfathered in for now, I'll have to deal with the loss of E6 sooner or later.

California's new bill on reducing carbon emissions to 40% of 1990 levels by 2020, even though the state population is due to double from what it is now by then, is going to fundamentally change how Californians live. The power that law gives to the CARB is just astounding! My hope is that the state starts to recognize the contribution solar customers are making and provide incentives. Right now, the state of California offers nothing in the way of financial help for those who are solar or thinking of going solar. I guess I'll have to go back to a wood stove or better, a kerosene heater so they don't see my smoking chimney. Ha!

We are having the same issue with water;
Reductions in use have cut water utility profits so they raise rates, which inspires more conservation, which triggers more rates, and so on and so on.

 

[RobbieB]

How old is your furnace?

I took advantage of the massive CA and Federal credits back in 2010 and upgraded to a 95% efficient (condensing) gas furnace. Not quite as effective as the 15 SEER AC, but very effective and there is a PGE "home upgrade" program out with fat rebates right now.

 

[Another Reader]

My neighbor and I joke about drilling a well. I offered to pay half.... Unfortunately, we don't own the water rights.

I stuck with the 80 percent furnace when I replaced mine. Tough to justify the additional cost plus the cost of re-routing the exhaust flue.

I will need to replace my A/C soon. No rebates on those right now, unfortunately.

 

[RobbieB]

I have no problem with "fairness", I have a problem with "tiers"

If I use say 8000 KWH annually and I generate 5500 the diff is 2500.

At the bottom tier that's 2500 x .16 = 400/yr = $33/mo. If that happens I will not be upset. I was paying from $100 to $200 a month, so even if the deal gets worse as time goes on it will still be a good deal.

The cream is I just got in under the wire and will get a shorter payback -

 

[RobbieB]

I stuck with the 80 percent furnace when I replaced mine. Tough to justify the additional cost plus the cost of re-routing the exhaust flue.

I will need to replace my A/C soon. No rebates on those right now, unfortunately.

Yeah, you really have to "strike while the iron's hot"

I got in right under the wire on this deal too;

Pretty sweet eh? And it worked exactly as described -

 

[samclem]

And Congress is investigating

Some in Congress have some "concerns" about how the tax breaks have been used. The solar companies say all is well. From today's WSJ (subscription may be required):

Congressional lawmakers have launched a formal investigation into whether solar-energy companies improperly received billions of dollars in tax incentives from the Obama administration.
The Senate Finance Committee and the House Ways and Means Committee on Wednesday sent letters to seven foreign and domestic companies in the solar industry, expanding a more limited probe started earlier this year.
The recipients included three firms in the residential solar industry—SolarCity Corp., Sunrun Inc. and Sungevity Inc.—and four solar utility companies: SunEdison Inc., Abengoa SA, NextEra Energy Inc. and NRG Energy Inc.

It sounds like the issue is the transfer of tax credits from the solar companies to investors. Maybe not relevant to residential systems?

 

[RobbieB]

I dunno. I know that some folks lease these installs and don't get the credit and some pay zero and just pay the solar company for the power produced just like they would for the power company.

Mine is pretty easy. I own it and it's on my roof and I paid in full so I get the credit -

 

[Another Reader]

Some in Congress have some "concerns" about how the tax breaks have been used. The solar companies say all is well. From today's WSJ (subscription may be required):



It sounds like the issue is the transfer of tax credits from the solar companies to investors. Maybe not relevant to residential systems?

It's exactly the residential leases that are the issue. These companies place the panels on the roof of a residence, lease the panels to the property owner or sell the electricity to the owner, and get the tax credit.

 

[samclem]

It's exactly the residential leases that are the issue. These companies place the panels on the roof of a residence, lease the panels to the property owner or sell the electricity to the owner, and get the tax credit.

Thanks. Well, the solar tax credit is supremely inefficient anyway, it matters little into which pocket the taxpayer's money is stuffed.

 

[RobbieB]

It matters to me, I want it stuffed into my pocket -

I bought it, I payed for it and I want my credit!

 

[Another Reader]

It will be interesting to see what gets past the PUC for the new net metering contract. In Arizona, APS and SRP all but shut down residential solar installations. SRP added a $30 monthly demand charge in 2014. APS and the Tucson utility have gone to the Arizona Corporations Commission for rate increases that will affect solar customers.

Oddly, APS is soliciting residential customers for rooftop installations. The customer gets a $30 a month credit for accepting the panels. In an area where summer electric bills are routinely $300 a month or more, that's not much incentive.

 

[RobbieB]

I am online and have generated my first KWH of energy. I am using negative power on the smart meter and the KWH total is decreasing. All monitoring is working (computer and smart phone app) and all looks good. PTO came in today and when I flipped the 2 breakers everything worked. In under the wire, only 170 MW left now in PG&E NEM 1.0, and I'm on the E6 plan!

I did this with 1 bid and yes the cost seemed high at $16,906 for a 3.6 KW install but it is the latest Sunpower stuff with microinverters and I find that it really isn't that high. According to this from the state, I am under the average cost of $5.30/watt, only $4.70 -

Life is good!

 

[Another Reader]

I was offered $3.69 a watt from another contractor for a 5.13 kW system with SolarWorld panels and microinverters plus Enphase equipment. I was past the cutoff for E-6 TOU when I inquired, but I probably would have taken the deal, except they would not guarantee a PTO by the time NEM 1.0 expired.

I expect NEM 2.0 to be unfavorable to the customer and likely there will be many fewer installations. Arizona installations have all but dried up with the introduction of various fees. The price will have to drop significantly to get my interest.

 

[Ian S]

Arizona installations have all but dried up with the introduction of various fees.

That's not quite true. While installations in SRP territory have dwindled since demand fees were instituted, the other major utility, APS, has not had their rate case heard so as long as you get installed before sometime likely in 2017, the existing net metering rules will apply for 20 years.

 

[Just_Steve]

The only way I would consider solar is when storage batteries come down enough to be able to be almost totally off grid.

 

[ERD50]

The only way I would consider solar is when storage batteries come down enough to be able to be almost totally off grid.

Why would you want to be off-grid? The grid provides an inexpensive buffer for solar panels.

The economics of solar are pretty questionable, even with most subsidies - batteries would need to be (nearly?) free to compete with the grid. And they need to be replaced in a few years.

-ERD50

 

[samclem]

Why would you want to be off-grid? The grid provides an inexpensive buffer for solar panels.

Where there is a grid. But if off-grid electricity can be cheap and reliable, it would open up lots of potential new residential locations away from the power lines. Running AC to a remote property can be very expensive. Water (well), septic, and even cell-based data services are much more broadly available, and it's generally practical to truck-in propane or oil for heat. Often electric power is the only missing "essential."
So, I'd be in the same boat as Just Steve--because only a solar electric system with battery backup gives me something worth the cost--the ability to use a lower-cost, more rural site.