April 18, 2007 – Volume 10, Issue 24
I N · T H I S · I S S U E
FLANIGAN'S ECO-LOGIC
Our Solar Story Part II
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 2.5 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 - $9.21per 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.
— To be continued —
HOW GREEN IS YOUR CITY?
This past week, EcoMotion staff attended the Municipal Green Building Conference & Expo sponsored by Southern California Gas and the Los Angeles Chapter of the U.S. Green Building Council.
Some 567 people convened at the Energy Resource Center in Downey, CA, including 34 exhibitors, to hear about topics that ranged from policy and planning to climate change to construction practices and integrated green building design.
An interesting morning session was devoted to sustainable building policies and programs in Southern California. The City of Los Angeles, the City of Santa Monica, Southern California Edison and the County of Los Angeles described their green frameworks and the programs they've instituted to green their municipal facilities.
Here is a list of some of those programs that you can use to compare with your own city's efforts.
Green city policies for new construction:
— Buildings must be 10% more efficient than state building code.
— All new swimming pools must have solar thermal heating.
— All public buildings (over a certain size) shall be LEED Silver.
— All new buildings must submit a filled-in LEED checklist.
— Separate diversion of inert materials in meeting requirements for recycling.
— Waive permits for solar installations.
— Expedite plan checks for solar installations.
— Expedite plan checks for LEED projects.
— Provide cash incentives for LEED projects.
Green city policies for the existing building stock:
— Institute "retrofit on sale" requirements.
Let us know if your city has effective policies that could be added to this list. We will include them in our best practices and share them with all EcoMotion members.
Virginia Nicols
ECOMOTION UPDATES
EcoMotion has completed a Request for Proposals for preferential financial products and services for Solar Santa Monica. EcoMotion - working with Catalyst Financial Services - is helping the City explore its leverage to create more compelling economics for combined solar and efficiency measures.
Russ Flanigan is leading the charge on the ground in Santa Monica - and literally on rooftops - conducting detailed On Site Energy Assessments. Already nearly 40 site assessments have been completed, qualifying Solar Santa Monica leads and sites. The OSEAs are thorough and customized to clearly flag the top five efficiency opportunities, while carefully examining roofs for their solar (PV and thermal) potential.
Coming Soon! EcoMotion is about to release a set of six new case studies from The Results Center. The case studies being researched and drafted feature leading solar programs - including telling tales from California, Germany, and New Jersey - and will provide key lessons learned on policy choices and solar program designs.