News Archives

September 19, 2006

SAN DIEGO SOURCE - Business
Solar Power provides ray of light

Rising electric rates, incentive programs and environmental concerns have an ever-increasing number of San Diego County residents and businesses seriously thinking about going solar.

Solar power, or photovoltaics, has become an increasingly attractive method of generating power as local consumers and businesses grapple with growing energy demands and tightening budgets.

San Diegans have more incentive than ever to go solar after state utility regulators in early 2006 passed a $3 billion-dollar rebate program to subsidize the installation of 1 million rooftop systems over the next 10 years. Known as the largest solar initiative in U.S. history, the program is expected to help ease California's ongoing energy crunch, while allowing cleaner air and much lower utility bills for consumers.

With solar power systems, which turn sunlight into electricity, silicon wafers capture photons from sunlight and turn them into DC power, which is then transformed into 120-volt AC power by an inverter and connected to your existing electrical system, as well as to the local power grid. When the sun shines, the system can generate more sunshine than the consumer actually consumes; at night the consumer can draw on the local utility company's power, basically using the electric grid as a giant storage battery.

Installing a solar power system in your home could be a wise investment for the future. Initially the average system in California will cost about $28,000, with a $7,800 rebate and a federal tax credit of $2,000. For example, San Diego County homeowners can finance the system over 30 years to bring the cost down using a home-equity loan.

"Many consumers ask, 'What's the payback of these solar systems,'" said Kirk Mulligan, CEO of Carmel Mountain Ranch-based Clean Power Systems, one of San Diego County's largest solar systems providers. "Well, let's say you are already paying $200 a month for your utility bill. Wouldn't it be better to finance a system so that your monthly payment to the bank is about equal to your electric bill? The money you are sending to the utility will go into your pocket instead of the utility's coffers. Remember, your electric bill will go up, that is a given."
Mulligan, who has a bachelor's degree in integrated science and technology from James Madison University, became Clean Power Systems' chief executive officer in 2004. During that time, the company was experiencing a major growth spurt, doubling its revenues each year and becoming one of the largest residential solar companies in the country. Prior to Clean Power Systems, Mulligan, who designed the largest solar electric system in Virginia, worked for one of the world's largest solar distributors.

Economics ultimately drive a consumer's decision to purchase a solar electric system, Mulligan said. "What we have found in our market research and our suppliers research is that the number one buying factor is dollars and cents," he said. "It's good for the environment, but the main reason people call us to install a solar electric system is because it will cost them virtually nothing to be green and they won't have an electric bill that keeps rising. It's about being green and economically savvy."

Solar electricity has been around since 1883, and the solar electric cell was created in 1952. Since then, solar power has been used by NASA, transportation authorities (for call boxes), homeowners and businesses alike. Grid-tied solar for homes has been around since the early 1990s but has only really boomed in the last three years.

As the cost of living in Southern California continues to escalate, solar power will become increasingly critical to the masses, especially business owners, Mulligan said.

"Solar electricity offers businesses a way to protect themselves against this uncertainty and more importantly reduce a fixed-capital expense," he said. "With huge financial incentives the system pays for itself almost immediately. In addition to huge financial savings, onsite solar generation offers numerous public benefits, including reduced customer reliance on polluting central power plants, reduced customer demand on utility generated power and improved air, land and water quality."

Here are some tips on selecting the right solar energy provider:

• Hire only licensed contractors, which are designated as C46 or C10 contractors. A C46 contractor can install solar equipment but can't do the electrical work in the home or business. A C10 can do everything, including the electrical. If you use a C46 contractor you may need to have your home or business rewired. You can check the contractor's license number by calling (800) 321-2752 or by visiting www.cslb.ca.gov.

• Look for a solar provider that can install service and maintain your solar system. Make sure the company you hire does not subcontract out any of the work.

• Make sure your solar system comes with a warranty. The state requires a minimum of five-year warranty, but look for a contractor that offers a 10-year warranty. Furthermore, ask about a "performance" warranty that puts in writing the cost savings and performance your solar system WILL achieve.

• Make sure the contractor provides timely service if your system breaks down. The most common part that can fail on a solar system is the inverter. Does the contractor have those in stock, or will you have to wait, with your system off-line, until the part arrives?

• Make sure the contractor is a member of the various solar industry organizations. This will show they are on top of the industry and can answer any customer questions about solar electric systems. Look for affiliations like California Solar Energy Industries Association (CAL SEIA), local chamber of commerce, Better Business Bureau and the San Diego Regional Energy Office. Also make sure they are registered on the California Energy Commission (CEC), which is the organization that provides the state rebate on a solar system purchase.

• Look for a contractor who is licensed and trained by the North American Board of Certified Energy Practitioners (NABCEP), which provides a national standardized test for solar installers.

• Make sure the contractor has affiliations with reputable solar panel suppliers. The availability of solar panel products to complete an installation is extremely important today so make sure your contractor can get the solar panels in a timely fashion.

• Make sure the contractor can install the system in a timely manner. Expect the installation to take between two and three months to complete once the contract has been signed. Most of the actual wait time is tied to the rebate process.

• Ask how the state rebate can be applied to your project. Contractors can "float" the rebate, apply it to the project, and you pay the after rebate cost. Alternatively, you can pay for the full upfront cost and apply the rebate to your project.

For more information, contact Clean Power Systems www.noelectricbill.com or call (858) 748-3636.