
Flanigan's Eco-Logic: Our Solar Story
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Part One -- April 6, 2007: The Sale
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Well it's our turn to walk the talk. Sure we have efficient lighting and Energy Star appliances at home, we carefully control our high-e AC system, have a Prius and composter. So now Terry and I are installing photovoltaics. It's time to tap the near-ever-present Southern California sun and to prove that we can get a good return on investment while generating our own green power. We're taking full advantage of Glendale Water and Power's $4.00/AC
watt rebate, the federal $2,000 tax credit, and rolling the system cost
into our home refinance at just over 5%. Sound pretty cool? We think
so. In fact, we're so excited that we've invited dozens of friends,
family, and co-workers to our PV installation party! This begins a short series on our solar story. We start with three bids. After all, this is a $15,000 - 25,000 investment. The first company's salesman reviewed our electric bills for the past year, then popped open his laptop, and then spit out an impressive report on the spot with three system scenarios. (He just peered at the roof from the back yard.) The second sent a colorful salesman who gave us his full and very interesting solar rapp and then happily bound up onto the roof with compass and measuring device. The third company elected to come over when we were not home. Each company had a different approach for the panels (their racking and configuration), size of system (2 - 4 kW), and make-up of system. Each professed different gross and net costs, paybacks, and returns. We built our own spreadsheet but had trouble getting an accurate comparison of cost and value. After a month from first visit until our questions were answered, we took the plunge! Our system will offset about 80% of our power use (and more if we conserve), will bear a gross cost of about $24,000, and a net cost of about $11,000. And then you'll never guess what happened. The salesman came over as scheduled to collect signatures and a $1,000 deposit. We had glasses of celebratory wine poured (several notches up from our regular), the checkbook out, the pen literally in hand, and then and only then were we told that our system would cost $900 more than estimated. "Sorry, I made a mistake on the racking system," was all we heard. "Excuse me?" |
| Part Two -- April 18, 2007: Economics |
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Yes. We did sign the check and the documents. We surprised ourselves. One of us tends to drive a very tough bargain and was unlikely to let $900 slip away. We trusted our salesman; we were swept up in the excitement of going solar. But it began to nag me later that night. I did the math. Even after paying the $900 it was still a screamer deal. The company had thankfully offered us a huge "good guy" discount. But it still nagged at me. Was this classic "bait and switch"? We could exercise the three-day deposit-return option. So I called and told the truth. My solar experience was being tainted. The quoted price had stood for a month, and the fact that we were not notified of a change until the time of signature was unacceptable. I wanted the problem resolved. And within two hours, it was. We split the difference and moved on. My confidence in the integrity of the industry was reinforced. Back on track. So what are we getting? Pretty cool: 18 Sharp NE-170U1 modules for a total peak manufacturer's rated output of 3.066 DC kW, a Fronius IG 3000 inverter, for a total system estimated "certified output" of 2.2 AC kW. The system will generate 4,333 kWh annually (based on 5.5 hours per day of Glendale "insolation"), providing about 80% of our power consumption. You can bet we'll be tracking this carefully! As to economics, the gross system cost is $23,360 - $10.62 per AC watt - and will garner a $10,145 rebate from Glendale Water & Power, and a $2,000 federal tax credit, resulting in a total system cost of $11,215. With power rates likely going up, the system will reach a break-even at 8.2 years (cumulative cash flow with and without solar), a payback of 13 years, and an estimated $44,635 in utility bill savings over a 30-year period. Wow. Furthermore, the property value rises (about 20 dollars for every dollar of annual savings), and we avoid the release of 82,581 pounds of CO2. By investing today, we secure an investment with a 16% rate of return for 30 years. We also lock in our utility rates, securing 8.25 cent kilowatt-hours for 30 - 50 years. Utility rates will likely climb. Solid investment? We hope so. Good feeling? You bet. This project now moves to engineering. Two weeks until our on-site solar analysis. |
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I'd had two cups of coffee by the time the technician arrived and I began to pelt him with questions. But no, this was his first day on the job, his first assignment as site assessor. He'd be happy to pass along my questions to "engineering." Then he clambered into our attic with flashlight, digital camera, tape measure, and note pad. I liked this guy, but I was let down. Shucks, I'd have to wait for "engineering" to call. After the attic, our new friend spent a couple hours on the roof, drawing and measuring, re-drawing and re-measuring. He was certainly working hard to make a good impression with his new employers and me. I went up on the roof to gauge the task at hand. No doubt about it, our "double hip" roof sounds pretty cool, but makes solar installation a bit complex. We also have lots of roof protrusions, plumbing and furnace vents, and a chimney. OK, so where do 18 panels go? By now, we were starting to develop more of a feel for our contractor and the blooming solar industry. Our contractor is a national firm with 500 staff located in five states, clearly on the go and grabbing young and able talent from a variety of backgrounds. So far, we'd been served by two brand new employees who made up for lack of experience with focused expertise and stellar communication skills. Good hires. Both employees spoke highly of their company. They are happy to be in the solar industry, doing something they believe in. We gathered that their company is following a sophisticated business plan, is properly capitalized, and provides thorough orientation and training for staff. It has excellent marketing materials, a sophisticated system estimator, clear-cut procedures, uniforms, embroidered coats and bags, new trucks, the works. While the unfamiliar process felt disjointed, we were quite impressed with the operation. Finally, Andy had what he needed. The information he gathered -- roof geometry, dimensions, attic joist spacing and size, roof pitch, orientation, and shading (solar pathfinder analysis) - would now be sent to the engineering group in Northern California. About two weeks later we'd have drawings of the system to approve. Our signatures again, and we'd be heading to permitting and rebate reservations. So the visit came and went, and I must say, I had little confidence in the site analysis. Then a week later, Andy called to see if he could come again. "Sure, come on over!" He apparently needed to re-check a few dimensions. In fact, he completely redid his work. I liked that. |
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Our 2.5 kW photovoltaic system is installed! Very exciting, rewarding, in fact we are very proud. And we encourage others to get the same feeling. It's great making a solar statement. We are investing in our future, the globe's viability. Not a minor deal. Two weeks after the site visit, I was sent a roof plan of the 18 panels. To my pleasant surprise, they were all specified for the south side. That seemed more logical to me. Plus, they would mount flush, three inches above the roof, facing our driveway and mostly invisible from the street, good news for potential resale. After our sign-off, our contractor filed for a building and safety permit and rebate reservation. The wheels were in motion. A stipulation for our select contractor was a weekend installation date. I wanted to throw an installation party so that interested neighbors, family, friends, and work colleagues, could see the installation up close. Realizing its marketing potential, the installation date was set with
ample time for permitting. Getting the panels, balance of system, and
labor on site was no problem. We chose Earth Day weekend. That Friday, the crew arrived to prep the site so that the "maximum
amount of glass could be placed on the roof for the maximum number of
party-goers" on Saturday. (Our contractor was now "on fire"
meeting my demands!) I rented a 32-foot scissor lift which everyone rode
to get a bird's eye view of the installation. Terry and I also prepared
a system fact sheet
that spells out all the technical details and focuses on costs and benefits. By 6:00 that afternoon, our solar arrays were secured, wired, and absolutely
gorgeous. We were proud parents, watching our sleeping babies! Shucks,
we'd have to wait for final City and utility inspections before flipping
"our DC disconnects." (See how one takes on the lingo?) Our
contractor had done a great job, the site was clean and the workmanship
was professional. The Glendale News Press came - reporter and photographer
- and wrote an Earth
Day special. And I've been talking about it ever since. Akeena Solar's team exceeded my expectations and made up for inexperience with honesty, hard work, and great communications. Our thanks to Rich Abalos, Mike Becker, Andy Berkebile, Wendy Boyle, Randy Corder, Ernie Cox, Joe Dolence, Karin Giles, Mandy Krawitz, Tony Le, Jason Medich, Mike Paul, John Ramos, and Josh Wiener. Akeena Solar insisted on 100% customer satisfaction and we took the company on it, not only staging the installation event, but also later reconfiguring a few panels solely for aesthetic reasons. Overall, our solar story ends with a job well done and a smooth, pain-free, actually thrilling process! |
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