EnergySage has released the results of its inaugural 2015 Solar Installer Survey, which captures the key observations of local and regional solar installers in both residential and commercial markets. More than 100 experienced solar installers across the United States provided data for the survey.

Among the highlights of the survey, one top challenge cited by installers is the sheer number of competitors, with most respondents stating they face between 15 to 20 competitors in their territories alone. Another theme noted was how common it’s become for today’s homeowners to receive multiple quotes before going solar, with the average coming in around two to three quotes per shopper. Additionally, in looking ahead, solar installers specified that new online sales channels and partnerships will be key to driving sustained growth.

“Today’s local and regional solar installers face an increasingly competitive landscape,” said EnergySage CEO Vikram Aggarwal. “Solar installers tell us they need access to qualified prospects at lower marketing costs, as well as better financing options and more market information, in order to succeed in 2016. While EnergySage’s online solar marketplace already helps installers lower their costs of customer acquisition tremendously, we now plan to roll out new product enhancements in the coming months to better support their needs for financing options and increased data availability.”

Other key findings from EnergySage’s Solar Installer Survey include:

• Competition is fierce – There are plenty of installers for shoppers to choose from, with most (56%) installers facing off against at least 15 competitors in their territories alone.

• Multiple quotes now common – The majority of solar installers reported that their shoppers saw two to three quotes before making a purchase decision, signaling the rise of the increasingly savvy solar shopper.

• Cash is still king – Over half of solar installers do not offer a single lease or power purchase agreement (PPA) product. Instead, they report cash purchases and unsecured loans as the most popular financing routes.

• PV is primary – More than 75% of solar installers surveyed say that photovoltaic (PV) installations are their primary line of business. The next most popular selections were electrical, design engineering and consulting.

“The study demonstrates that there is very healthy competition in the solar industry, which we can maintain with extension of the federal Solar Investment Tax Credit,” said Rhone Resch, president and CEO, Solar Energy Industries Association. “Paired with our Solar Market Insight report, which shows record adoption of solar over the next five quarters, this study affirms that our nation is developing a competitive and economically robust solar industry that will only get bigger and stronger with the right policies in place.”

EnergySage plans to field an Investment Tax Credit (ITC) focused installer survey early in Q1 2016, as well as reissue its annual Solar Installer Survey later in the year. All solar installers who download this survey will be invited to participate and have their voice heard in the 2016 edition. To download this year’s survey, please visit: www.energysage.com/data.

Solar Power World

Global solar tracking leader, Array Technologies, Inc. (ATI), has initiated DuraTrack HZ v3 single-axis tracker shipments to 137 MW (dc) Springbok 1 Solar Farm, located 70 miles north of Los Angeles, California.

The utility-scale solar tracking power plant, developed on up to 700 acres of low-productivity farmland, is expected to displace 300,000 metric tons of carbon dioxide (CO2) per year – equal to the amount that roughly 12 million trees would displace annually.

8minutenergy Renewables, LLC (8minutenergy) began developing the project in 2011, signed a PPA with Southern California Public Power Authority (SCPPA), and in 2014, chose the ATI trackers and selected Swinerton Renewable Energy as the engineering, procurement and construction services company. An affiliate of D. E. Shaw Renewable Investments, L.L.C. (DESRI) led the equity investment in the project in 2015 and obtained debt and tax equity financing. 8minutenergy and DESRI expect to jointly own and operate Springbok 1, with affiliates of 8minutenergy and DESRI overseeing construction management.

ATI’s latest version single-axis tracker, DuraTrack HZ v3, will boost the site’s power production and lower installation and maintenance costs thanks to industry-leading features such as 6% higher power density, innovative single-bolt per module clamps, zero scheduled maintenance and proven reliability. Backed by ATI’s vast experience of nearly 4 gigawatts and 26 years of specialized tracker know-how, DuraTrack HZ v3 will deliver the best levelized cost of electricity (LCOE) to the site’s joint owners and clean energy to Los Angeles residents.

“We are pleased to collaborate with partners such as ATI on the development of the Springbok 1 Solar Farm that is scheduled to supply the people of Los Angeles with clean energy by the middle of next year,” said Martin Hermann, 8minutenergy Chief Executive Officer.

“As our latest version product, DuraTrack HZ v3, gains traction in the market we are thrilled to have the support of industry-leading renewable companies 8minutenergy and DESRI,” explained ATI founder and CEO, Ron Corio. “Our partnership with Swinerton and their familiarity with our technology will ensure swift installation and completion on Springbok 1, allowing us to deliver the best levelized cost of electricity over the life of the project.”

Solar Power World

It’s looking like blue skies for the solar industry, as Congress will vote on an omnibus spending bill later this week that includes a five-year extension of the solar ITC.

It appears the sun will not set on the solar investment tax credit (ITC), ensuring continued growth for the U.S. solar industry well into the future. An extension the credit—the main driver of solar growth in the United States—was unexpectedly included in a $1.1 trillion omnibus spending bill agreed upon in Washington, D.C., late Tuesday night. It will be finalized and voted on later this week.

“By extending the solar investment tax credit for five years with a commence construction provision and a gradual ramp down, bipartisan members in both Houses have reestablished America as the global leader in clean energy, which will boost our economy and create thousands of jobs across America,” Rhone Resch, president and CEO of SEIA, said in a news release today.

The U.S. solar industry employees 200,000 people, and the extension is likely to add another 140,000 jobs or more, Resch said. The extension will also let the solar industry achieve its pledge of employing 50,000 veterans by 2020.

According to research firm IHS, key details of the extension include:

• The ITC will be extended from Dec. 31, 2016, and instead stepped down from 30% to 10% until 2024. Projects that start construction by 2019 will receive the current 30% ITC, while projects that begin construction in 2020 and 2021 will receive 26% and 22%, respectively. All projects must be completed by 2024 to obtain these elevated ITC rates.
• For residential photovoltaic (PV) systems, a similar tax credit phase-out applies until December 31, 2021, after which the tax credit scheme ends.

A procedural glitch will move a vote on the spending bill and tax extenders package to Thursday. Giving the impression of a narrow victory for the solar industry, the text of the tax incentive extension can be found at the tail end of the omnibus spending bill text, on page 2005 of 2009, available here.

The proposed extension of the ITC will come as a major relief to the U.S. solar industry. Analysis by Bloomberg New Energy Finance showed the expiration of the ITC could have caused a 71% decline in U.S. solar installations between 2016 and 2017, leading to the loss of more than 100,000 jobs nationwide.

A five-year extension of the ITC will lead to more than $125 billion in new, private sector investment in the U.S. economy, according to SEIA. And much of this growth will come from small businesses, which make up more than 85% of America’s 8,000 solar companies.

Resch broke the news on Twitter:

Historic extensions of the ITC in omnibus https://t.co/hivqJTVjuG – 2017, 18, 19 at 30% 2020 at 26% 2021 at 22% plus commence con @SEIA

— Rhone Resch (@RhoneResch) December 16, 2015

SEIA has lead the fight for the ITC extension, promoting the incentive at every opportunity for more than a year. Earlier this month the trade association invited 14 solar CEOs to meet with members of the House and Senate from both parties to plead the case of an extension of the ITC.

“Since the ITC was passed in 2006, U.S. solar growth has exploded and more than 150,000 American solar jobs have been created,” Rhone Resch said in a September news release. “By any measurement, that’s a success for both our economy and environment.”

As for how we at Solar Power World feel about the proposed ITC extension:

Great day!! Major extension of solar in omnibus. Pg 2005 – https://t.co/HISLSL81eb @SEIA #SolarITC via @rhoneresch

— Kathie Zipp (@SolarKathieZ) December 16, 2015

#solarITC

— Kelly Pickerel (@SolarKellyP) December 16, 2015

Solar Power World

One of the nation’s largest solar developers approached a national grocery store chain about going solar. When it came time for the final pitch, the developer highlighted the ~150 locations that offered the biggest payback from installing solar. The customer thought the numbers looked good, but didn’t quite believe that the 150 locations were the best. He suggested one of his facilities in the California Central Valley, noting the ample sun in that location. The developer immediately pulled up the analysis for that site, noting the unfriendly tariffs and a rooftop filled with HVAC units and skylights. This is when the customer realized that the developer had done a detailed analysis for each location across the entire country, nearly 1,000 different buildings. “Their jaw dropped,” said the developer’s head of sales. “That was the moment we won the sale.”

This example is a classic case of a portfolio sale. The key elements of a portfolio sale are to break up the customer’s holdings into separate pieces and evaluate each of them individually. As a result, you can determine the subset of the projects that make the most sense and prioritize them above the others. In other words, you are turning down work if it doesn’t make financial sense for the customer. This builds credibility, by showcasing the fact that you are optimizing for customer value rather than your own revenue.

This approach also lets you tease out what the customer’s financial objectives are. In many cases, they will want the greatest return (i.e. the greatest profit margin). However, in some cases, they may have additional money to use. If so, you can then showcase a different solution for maximum net present value (NPV) or maximum revenue (which will typically be very different results from the maximum profit margin solution).

Developers are increasingly responding to portfolio opportunities using this technique. Advanced software design tools make it easy to evaluate hundreds of projects in the time it used to take to evaluate just a few. In the example described above, the developer used HelioScope to model each of the 1,000 potential buildings–a process that would have been impossible just a few years ago.

What this looks like

This technique can take different forms, depending on the customer. For example, with residential customers, you might break up their rooftop into different sections and structure the conversation around the total potential of their rooftop, versus the sections that make the most financial sense to build.

Alternatively, you could show their system in the context of their neighborhood, showing how their rooftop is better than their neighbors’ for installing solar. And if it isn’t, you can give them handouts to give to their neighbors for referrals!
With small businesses, try to find if the landlord owns other buildings (you can often find this from property tax information). Then you can turn their group of buildings into a small portfolio exercise. This is a great way to turn a lead on a single building into a much bigger opportunity, while at the same time establishing trust with the landlord through a much more nuanced discussion.

Finally, even for single commercial properties, think of the entire area as a portfolio of sites. What is the ROI on a carport canopy? What is the potential value of a ground-mount array at the side of the building? This not only helps to maximize total ROI but also helps get the owner or facilities manager thinking more creatively about how best they can install solar.

Advantages and Disadvantages

The main advantage to this approach is that winning a portfolio of projects can have a dramatic impact on a company’s bottom line. It’s more than just a big boost to revenue–having one main negotiation can mean significantly reduced customer acquisition costs. It can also give you the flexibility to stage out the installation process to keep costs low.

The main downside is that this approach certainly requires more preparation–often much more, since you’ll have to research the other locations in the owner’s portfolio and then do detailed analysis for each property. But it can often pay off with the combination of a larger potential transaction and improved close rates.

Read method three, “The Personalized Sale,” here. 

Read method two, “The Optimization Sale,” here.

Read method one, “Collaborative Selling,” here.

Paul Grana is the co-founder and head of sales & marketing for Folsom Labs.

Solar Power World

Solar Power World

An award-winning, fully-automated smart home in rural New York state was recently transformed into a solar plus energy storage net-zero estate by SimpliPhi Power and Lotus Energy. After three months in operation, the home’s energy generation and storage system is exceeding production estimates by as much as 23 percent.

The smart home’s clean energy system combines a 72kW dual-axis tracker solar PV farm with a 163kWh bank of SimpliPhi’s proven lithium ferrous phosphate (LFP) batteries so that the home feeds excess power back to the grid and rarely relies on the grid or back-up generator. The energy dense storage system can quickly charge and discharge with 98 percent efficiency. Plus, it is very compact as it does not require extra space for ventilation or expensive heat mitigation equipment often necessary with other solutions. SimpliPhi batteries can achieve these metrics because they combine LFP chemistry with proprietary architecture and power electronics.
“I wanted an energy storage solution in a compact location. That’s why I went with SimpliPhi’s lithium-ion technology. Flooded cell batteries or other lithium-ion batteries would have required significantly more space and new construction to attain the same energy output,” said Bob Schluter, owner of the N.Y. smart home.

“I discovered another benefit to the SimpliPhi batteries after I added a second batch three months later,” Schluter said. “I had worried that the first batch might not charge at the same rate or depth that they started with. Instead, the first batch is charging just as fully as the newer batch. The whole energy storage system is robust and performing flawlessly. That gives us energy security, saves money on fossil fuel and lets us make money back on the system by pumping energy back to the grid.”

In upstate New York, where winter power outages have been known to last for days or even weeks, Lotus Energy developed a smart system that operates primarily off solar and storage. The system can switch seamlessly between solar, the batteries, the grid and the backup generator, if needed, to ensure zero interruption of power to the home.

“We are specialists at sustainably powering off-grid and remote locations, while at the same time delivering on the aesthetics desired by our homeowner customers,” Jeevan Goff, president of Lotus Energy. “To this end, we designed our solar plus storage system to be highly efficient while using minimal space. The solar was installed out of sight over 650 feet from the home, and the battery banks were powerful and compact enough to fit safely and securely in the house’s existing electrical room. Only SimpliPhi could meet all of this project’s stringent requirements for size, safety, scalability and durability.”

The 48 SimpliPhi Power OES 3.4kW LFP batteries are arranged in six banks of eight batteries each. They are cabled in parallel to ensure equal flow of current to all the batteries. That also makes them easily scalable as the home’s energy needs evolve.

“SimpliPhi Power’s lithium ferrous phosphate storage solutions are ideal for businesses and residences like this smart home in New York state, where safety, space and longevity are top considerations,” said Catherine Von Burg, CEO of SimpliPhi Power. “Because we do not use the highly toxic cobalt that’s included in other lithium ion batteries, we can offer any homeowner compact, scalable energy storage systems that generate zero heat and none of the fire risk associated with most lithium ion batteries containing cobalt. Integrators like Lotus Energy who excel at smart renewable power systems rely on our technology to tackle everything from the simplest to the most complex installations.”

Solar Power World

Strathcona Energy Group (SEG), a Canadian-based holding company specializing in vertically integrated solutions for the next generation of photovoltaics, announced the company has entered a renewable energy investment partnership with Shawanaga First Nation, an Indigenous community located in central Ontario.

The joint venture started almost three years ago, but for Shawanaga the goal was set in motion back in 2008, when Ontario introduced its 20 year Integrated Power System Plan and the Chief and Council of the day sought to explore how Shawanaga could participate and address long term economic prosperity for its community.

Adam Good, now band manager for Shawanaga, was hired to carry out project development and assist the community put in place its Crown consultation protocols.

“I knew that in order for Shawanaga to begin working towards economic self-sufficiency we would need to better understand commercial opportunities that surrounded the community and we would ultimately need partners that would be willing to work with us,” says Adam Good. “When the feed-in-tariff program was launched and incentives were put in place to promote partnerships between First Nations and industry, we knew that it would finally be possible to start realizing our goals. It was challenging to find partners and so we hired First Nations energy lawyer, Cherie Brant of Dickinson Wright LLP, to navigate the program opportunities and facilitate the relationship building for us.”

Together with SEG and Blackstone Energy Solutions, the Shawanaga First Nation has since then successfully established investment strategies for 13 rooftop photovoltaics projects totaling 1.8 MW, which are producing enough clean energy to power approximately 200 homes. The generated power from the high-yielding arrays is sold to Ontario’s IESO (Independent Electricity System Operator) under a 20-year Feed-in-Tariff (FiT) contract.

Now the partnership is working together on a second, much larger round of investment projects, which will add an additional 2.7 MW. As for the previous projects, the Strathcona Group will be an investment partner as well as taking on EPC responsibilities of the projects to ensure maximum profitability.

“SEG is a company that understands the challenges we face as a local government making its way into the broader energy business. We look forward to continuing to build a foundation for trust and reciprocity as we continue to walk this path together,” stated Chief Pamajewon of Shawanaga First Nation.

The equity participation in a combined 4.5 MW of solar projects provides Shawanaga First Nation with a base of clean energy investment, something the members of Shawanaga can be proud of and profit at the same time. Equally important is the First Nation’s undertaking to reinvest the revenue into sustainable energy programs on its own tribal lands to meet the ambitious goal of being powered entirely by renewable energy sources in the near future.

Presently, a school building located in the Shawanaga community near Parry Sound, Ontario, is powered by a 10-kW micro-FiT photovoltaic system, and SEG is currently assisting in an energy audit to identify future energy savings initiatives for the community.

“SEG’s investment partnership with Shawanaga First Nation has been characterized by a solid understanding of what is technically feasible and economically sustainable with high profitability,” says Karl Hollett, CEO of the Strathcona Energy Group. “Shawanaga is an ideal partner in developing reliable, cost-effective, and safe energy solutions for our province, and we look forward to deepening our commitment in the development of future energy projects.”

Solar Power World

A five-year extension to the solar investment tax credit (ITC), which is currently included in the omnibus spending bill under consideration in Congress, would result in 25 gigawatts (GW) of additional solar capacity over the next five years – a 54% increase over a no-extension scenario. According to GTM Research, which today released preliminary updated state- and segment-level forecasts based on the current omnibus language, ITC extension will foster $40 billion in incremental investment in solar between 2016 and 2020.

“The ITC extension currently written into the omnibus spending bill will result in a 20 gigawatt annual solar market in the U.S. by 2020,” said Shayle Kann, Senior Vice President at GTM Research. “At that rate, more solar will be installed each year than was added to the grid cumulatively through 2014.”

FIGURE: U.S. PV Installations With and Without ITC Extension, 2010-2020.
(Source: GTM Research)

The impact will be most pronounced in the utility-scale sector, where ITC extension will increase deployments 73% through 2020.

“Given price trends in the utility solar sector, the five-year ITC extension will likely result in utility-scale solar contracts being signed for less than 4 cents per kilowatt-hour regularly over the next two years,” said Cory Honeyman, Senior Analyst at GTM Research.

In the distributed solar market, residential installations will see a 35% impact versus no extension, while commercial solar will increase by 51%.

In the absence of this legislation, the ITC would drop from its current 30 percent to 10 percent (for non-residential and third-party owned residential systems) and to 0 percent (for host-owned residential systems) on January 1, 2017. Instead, if the omnibus spending bill is passed in its current form, the ITC would step down according to this schedule:

– 2017-2019: 30%
– 2020: 26%
– 2021: 22%
– 2022+: 10% (non-residential and third-party owned residential), or 0% (host-owned residential)

The bill also includes a “commence construction” provision, allowing projects to come on-line by the end of 2023 and still qualify for larger credits.

Solar Power World

Solar Power World

Solar Frontier, the world’s largest CIS solar energy solutions provider, announced today their advanced technology has been selected by O2 emc for a 4-MW project in North Carolina, one of the fastest growing solar states in the United States. The Tolson solar project will be one of the first tracking installations with CIS thin-film solar modules in the state.

A $10-million-dollar investment, the Tolson solar plant under construction in Edgecombe County, N.C., will be equipped with Exosun’s advanced Exotrack HZ single-axis trackers orienting over 24,000 Solar Frontier modules towards the sun throughout the day to considerably increase the plant’s output versus fixed-tilt installations and traditional crystalline modules. Expected to be completed in 2015, the renewable energy plant will generate almost 7 gigawatt-hours of energy per year, or more electricity than 600 average American homes would consume on an annual basis.

Solar Power World

Solar Power World

Vermont Technical College will further its use of renewable energy and help reduce its operating costs while providing the institution new educational opportunities with the installation of a 500kW solar farm.

This month, the 500kW project was awarded its Certificate of Public Good by the Vermont Public Service Board, green-lighting the project to begin construction immediately.  It is scheduled to be complete by February.

The project on Vermont Tech’s campus will consist of one hundred 5kW AllEarth Series 20 dual-axis solar trackers, manufactured by AllEarth Renewables, Inc. of Williston.

Consistent with its technical career-oriented mission, Vermont Technical College is increasing renewable energy programs and facilities. The college offers an innovative bachelor’s degree in Renewable Energy, and a Continuing Education division that delivers a slate of courses and workshops focused on the renewable energy industry. Joining the college’s 375 kw anaerobic digester, dubbed “Big Bertha” by students, the solar project will provide students with real-world experience and an additional educational tool right on their campus.

In addition to the locally manufactured product by AllEarth Renewables, students will gain first-hand exposure to the company’s Vermont supply chain for components.

Vermont Tech is the only solar training provider in Vermont acknowledged by Interstate Renewable Energy Council, which provides nationally-recognized training and credential programs. Clean energy will be a big part of Vermont communities going forward, and Vermont Tech’s Randolph campus is poised to be a model for local renewable energy education and training.

“I am enthusiastic about this project and the future of this college as a hub for teaching and learning the vital skills connected to clean energy in Vermont,” said Vermont Tech President Dan Smith. “Degree programs in agriculture, horticulture, environmental engineering, and energy position Vermont Tech graduates to play a vital role in Vermont’s environmental and energy future.”

Vermont Technical College will receive the net metered energy credits, thereby saving on electric costs. The solar array will also benefit the Green Mountain Power distribution system by acting as a load reducer during peak periods in the summer months when market electricity costs are highest to the utility.

The project is expected to produce nearly 1 million kWh of clean, Vermont renewable energy annually. The Renewable Energy Credits for the Vermont Tech project will be retained and retired in-state.

“We are thrilled to be partnering with Vermont Tech to provide solar power at the Randolph campus. The college site is an ideal location to not only to create renewable energy, but also invest in the next generation Vermont workforce,” added David Blittersdorf, president and CEO of AllEarth Renewables.

AllEarth Renewables is also completing a solar initiative for Vermont state government that will save taxpayers more than $2.5 million in energy costs over twenty years with no state investment, while producing over 7 million kilowatt hours per year of clean, Vermont-made solar electricity.

Solar Power World

The multi-national Japanese company Solar Frontier has begun to integrate its latest thin film panels in single-axis solar tracker systems via a strategical agreement with the Spanish company Grupo Clavijo. It is the first time that this integration has been successful. Thanks to this collaboration, the projects implemented with both of these advanced technologies are able to achieve greater overall efficiency for the installations into which they are integrated.

The most recent projects completed in collaboration in the United States include 18.7 MW (Morelos in Lost Hills, California) using the SP-1000 tracker model and 22 MW (Calipatria, California) also using model SP-1000. Furthermore, in 2015 Grupo Clavijo also installed 3.4 MW in Fresno, California (Cogeneración project).
The Spanish company, which this year will reach 1 GW of installed power, has projects planned for 2016 in the United States that will consist of 400 MW, taking into account the dynamic American solar photovoltaic market.

Solar Power World

Conergy, the leading global solar developer, is celebrating the launch of a unique initiative that will provide the UK education sector’s decision makers with insight and inspiration on the potential financial, educational and environmental benefits of renewable technology.

Named the “Conergy Solar on Schools Program”, the initiative is part of the company’s commitment to working with educational facilities across the country — including nursery, primary, secondary and academy schools, along with private, public, further education and universities — to deliver a plain English introduction to solar.

The no upfront cost initiative, which can generate significant savings, will provide stakeholders with access to energy-use and cost savings analysis; the installation and life-time maintenance of a solar PV system; and stakeholder engagement support and full project management — from planning through to installation.

The Conergy education team also offers bespoke, ongoing  learning events catered to enhance an existing educational timetable  — including assembly presentations, site visits and workshops for students to help further learning around the environmental and economic benefits of renewable energy — as well as the design technology and scientific aspects of the system.

The often significant savings against current utility costs can also be reinvested into the wellbeing of students – funding additional equipment and access to additional resources.

All educational facilities also have the option to engage in a power purchase agreement (PPA), which means that no costs for the system itself or ongoing maintenance are incurred.

The official launch comes as work gets underway on an installation at an Academy in West Bromwich, a 60kWp rooftop solar system.

The installation of the system began on Dec 7, and is expected to take just one week.

“A number of people within the education sector have contacted us, but were unsure whether solar was the right choice for them,” said Conergy UK’s Managing Director Paul Weaver who has spent 25 years of his career building schools.

“We have developed the ‘Conergy Solar on Schools Program’ in a bid to provide not only insight on the whys and wherefores, but also the potential wider return on investment including how the data collated can feed into the learning of students; simply put, our objective is to make things easier for many people who are interested in renewable technology and, specifically, Solar PV.”

The UK arm of the company, which has installed in excess of 277 MW of PV systems is part of Conergy — with offices in 15 countries around the world.

Solar Power World

There’s been lots of news coming from the 21st Session of the Conference of the Parties (COP21) to the UN Framework Convention on Climate Change (UNFCCC). We spoke with Lior Handelsman, SolarEdge’s VP of Marketing and Product Strategy, who attended the conference. He shares what he heard on the solar side of the discussion, as well as his view on what the industry can do to help solar be the best solution to climate change possible.

Solar Power World

Article by Timothy Tredwell, Director of Engineering, Research & Analysis, Center for Sustainable Energy

“Leased solar panels can complicate — or kill — a home sale,” a headline in the Los Angeles Times warned on March 22, 2015, and went on to cast a long shadow over third-party owned (TPO) residential photovoltaic (PV) solar energy systems. This is just one of several articles in major media outlets detailing the liabilities faced by TPO solar customers when they go to sell their homes.

If this is correct, we face a gigantic problem throughout California and across the nation as a growing wave of homes with TPO solar enter the real estate market over the next decade. The popularity of TPO solar has boomed since its introduction in 2009, because it eliminates upfront costs and opens the market to those who have traditionally been excluded due to a lack of access to capital. By 2013, TPO systems represented more than 70% of residential installations.

While it’s well documented that host-owned (i.e., purchased) solar systems add a price premium to home sales (see Lawrence Berkeley National Laboratory [LBNL] report or webinar), it remains unclear just how TPO solar , which now represents the majority of new installations, affect home values.

Understanding the realities

Given the lack of quantitative data on the effects of TPO solar on home resales and the media coverage of the topic, based largely on anecdotal evidence, CSE and LBNL teamed up to conduct a small-scale, preliminary qualitative analysis of the issue in order to help inform subsequent investigations when more data are available. To accomplish this, we contacted a sample of real estate agents, sellers and buyers involved in the sale of TPO solar homes in the San Diego region between 2010 and 2013.

Real estate perspective

Based on interviews with real estate agents, buyers fall in love with the home, its neighborhood and the schools, and accept items like remodeling a bathroom or fixing or adding specific features – and TPO solar is one of those things. It is not an important driver of the sale and, in their opinion, does not result in a sales premium (83% of respondents) or a longer time on the market (69%). TPO solar does require the seller and real estate agent to educate the buyer about how leases work, but in most cases (77%) the TPO contracts were directly transferred to the buyer, with the remainder of systems being bought out by the buyer (18%) or seller (5%).

What buyers think

Buyers of homes with TPO PV systems go through a process similar to homeowners who add solar to their existing home. They are interested in and curious about solar, but also cautious and uncertain about how the technology and TPO contracts work. Most of the buyers in the survey (94%) had never owned a home with solar, however, many listed solar as a desirable feature (56%). After purchase, a majority of buyers were either very satisfied (35%) or satisfied (64%) with the solar system, with most experiencing energy savings that were in line with expectations or somewhat better.

Sellers’ point of view

More than half (55%) of the sellers surveyed expected their TPO solar system to add value to their home at resale, however, only one respondent was confident that a premium was realized at the time of sale. A large majority (83%) perceived no change in value at the time of sale. Despite this, by the time of the survey, almost 30% had installed a TPO system on their current home.

Key Takeaways

• TPO systems appear to have minimal impact on home sales, either in terms of premiums or time on market.
• Buyers of TPO solar homes go through an educational process, much like other solar adopters.
• Sellers, their agents and leasing companies are key in the educational process and should be prepared to play that role.
• Buyers and sellers involved in TPO solar home transfers we sampled appear to be satisfied with the process.

More data is required to complete definitive, quantitative research that answers the question of how TPO solar impacts the home sales process. However, this look at a small sample of homes in the San Diego region indicates the negative picture portrayed in the media may be underdeveloped.

Read the three-page research summary here: Survey of Buyers, Sellers and Realtors Involved In San Diego Third-Party Owned Solar Home Transactions – A Qualitative Assessment

Solar Power World

One of the world’s top-selling battery storage systems is now available in the USA. In response to high demand, sonnenBatterie volume production is operating at strong capacity and is being expanded even further. Home-owners, through sonnen’s nationwide network of more than 30 dealers, will have access to sonnen’s products before Christmas this year. The sonnenBatterie units for the US market are manufactured in San Jose, California.

“We have seen overwhelming interest in the sonnenBatterie,” says Boris von Bormann, CEO of sonnen, Inc. “Accordingly, we have a very ambitious timetable for widespread introduction to the US market before year’s end. With series production started, we can now quickly process the high number of existing orders and then gradually increase the manufacturing capacity for even higher volume.”

The sonnenBatterie is a complete Plug-and-Play-storage system. Its smart functions and high level of integration set it apart from other energy storage devices. In addition to the battery modules, the inverter, control and measurement technology are also integrated, and optimally coordinated within the unit. Other features include numerous smart-home functions, and access via computer or smartphone.

Due to its impressively long lifespan of 10,000 charge cycles, the sonnenBatterie is well suited for daily loading and unloading – as is necessary for self-consumption of solar power. The balancing of various electricity tariffs and peak shaving for commercial users is another prominent benefit. Naturally the sonnenBatterie can also supply households with energy during power outages and brownouts.
The sonnenBatterie is one of the most successful storage systems in Europe, currently its biggest market, and close to 10,000 units have already been sold worldwide.

Thanks to its sophisticated technology and outstanding quality, the sonnenBatterie is also certified for the HERO Program, which helps customers in California with financing options.

Solar Power World

A new state-level analysis of close to 11,000 solar price quotes has found that, despite some outliers, average residential solar prices in 2014-2015 clustered around $3-$4 per watt, while prices for nonresidential and utility-scale projects came in lower at $2-$3 per watt.

The report from the Solar Electric Power Association (SEPA) is part of a new initiative to dig into regional pricing trends for photovoltaic (PV) solar at more detailed levels than have previously been available to market stakeholders. The data for the study were provided by two online platforms, EnergySage and Mercatus, and include price quotes for residential, commercial and utility-scale projects collected in 25 states, the District of Columbia and Puerto Rico from January 2014 to July 2015.

“We filtered the data we received through a range of variables, from the effect of state incentives and competitive price visibility to average electricity prices, and transportation and labor costs,” said Erika Myers, SEPA’s Senior  Manager of Research and lead author of the report. “But no one factor explains the price quote variations we are seeing both within and across regions.”

Key findings of the report include:

• While prices in the residential solar market clustered around $3-$4 per watt, the study found variation between regions and states, in some cases, possibly due to consumers not having a full view of competitive pricing information. For example, limited price visibility among consumers and between vendors has pushed average solar prices in New York and Massachusetts to $4.03 per watt and $4.20 per watt respectively.

• Many factors were tested for their impact on prices. A strong correlation was found between incentives and total system costs, indicating that customers receiving incentives could go with larger systems. But the study found no definitive link between incentives and price quotes per watt. The outlier here is Washington state, where generous rebates for purchasing panels manufactured in-state were associated with higher prices, averaging $4.43 per watt.

• Nearly all of the prices in the commercial sector were within the range of $2-$3 per watt. Nonresidential prices also reflected smaller variations compared to residential price quotes — possibly the result of the greater experience and procurement sophistication of large commercial consumers.

Myers emphasized that these and other findings in the report are considered tentative. Recognizing the limited scope of the data for this initial effort, SEPA plans to continue gathering state-level price quotes and has issued a request for other organizations to provide their information.

“With SEPA’s newly expanded mission, encompassing large-scale solar as well as demand response and other distributed energy technologies, we are also expanding our research to provide more detailed and comprehensive  market insights,” said Tanuj Deora, Executive Vice President and Chief Strategy Officer. “This information will be critical as the transformation of the U.S. energy market unfolds state by state — at different speeds and with different policies — across the country.”

A copy of the Executive Summary of “Photovoltaic System Price Quotes from Selected States, 2014-2015” is attached, along with supplemental quotes from EnergySage and Mercatus.

For a full copy of the report, contact K Kaufmann, kkaufmann@solarelectricpower.org/

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Earlier this week, the San Diego City Council voted 8-0 to approve a progressive Climate Action Plan, which creates legally binding mandates for reducing levels of greenhouse gases. The plan includes a variety of tactics for the city of San Diego to implement to achieve its goals. Areas of focus include renewable energy, transportation, boosting the urban tree canopy and sustainably disposing solid waste.

San Diego Mayor Kevin Faulconer hosted a press conference before the council meeting announcing the final vote for the Climate Action Plan. He expressed the significance the Climate Action Plan has on the quality of life in San Diego.

“We have the opportunity to make San Diego one of the green energy and solar capitals of the world,” said Faulconer, “We are a leader in sustainability and innovation. Let’s use our creative spirit to preserve our children’s future. Let’s pass on a San Diego that is cleaner and with more opportunities than when we received it.”

The city’s goal is to have 100% clean energy by 2035, which would make San Diego the largest city fully powered by renewable energy. The San Diego rooftop solar industry, which is second in the nation per capita, is currently providing a $1 billion economic benefit to San Diego County. That amount is slated to increase once the Climate Action Plan goes into effect.

“In San Diego we have a thriving solar power industry that is ready and eager to move the city of San Diego away from fossil fuels,” said Daniel Sullivan at the Mayor’s press conference on Tuesday, “Our local industry is poised to rise to the challenge and systematically unplug entire communities from fossil fuels.”

The Climate Action Plan not only received bipartisan support within the council, but has such broad support in the community. There were 95 San Diegans who signed to speak at the council meeting, 93 of which were in favor of the Climate Action Plan, while two people opposed stating they wish it was stronger. Representatives ranged from a local labor union to a reverend to an environmental justice nonprofit to an organizations trying to keep the Chargers in San Diego. All made pleads to the city council as to why the Climate Action Plan was important and necessary.

Councilmember Todd Gloria, who stated that climate change is the single biggest issue facing the world today, was praised by Mayor Faulconer, councilmembers and the public for efforts Gloria made while interim mayor. Mayor Faulconer credited the success of the Climate Action Plan to Gloria, who worked closely with Nicole Capretz, his former staff member and now executive director of the Climate Action Campaign. Gloria credited Capretz for playing an instrumental role in the progress of the Climate Action Plan.

“I hope you realize that this will be the most important issue that you work on” Capretz told both Mayor Faulconer and the entire council, “We are making a down payment on our future. This is beyond party politics. What’s important is that we’re protecting our quality of life for future generations.”

Upcoming goals for the Climate Action Plan include cutting car trips in key transportation areas by 20 percent by 2020 and 50 percent by 2035; expanding the urban tree canopy by 15 percent by 2020 and 35 percent by 2035; recycling or composing 75 percent of all solid waste by 2020 and 35 percent by 2035.

Sacramento is currently the only other city in the state with enforceable mandates on this issue.

Mayor Faulconer acknowledges this is the first step to a sustainable San Diego with work ahead to achieve these ambitious goals.

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The Utah Red Hills Renewable Park (URHRP) is Utah’s first utility-scale solar plant and will more than double the state’s current solar footprint. (PRNewsFoto/Scatec Solar North America)

When the plant is fully operational within the week, it will generate around 210 million kWh of electricity per year, equivalent to the electric power used by approximately 18,500 homes annually, to be fed into the grid under a twenty-year Power Purchase Agreement (PPA) with PacifiCorp’s Rocky Mountain Power, according to the utility’s obligation under the federal Public Utility Regulatory Policies Act (PURPA).

“We want to thank Scatec Solar because this experience has helped Rocky Mountain Power learn what works to help other solar projects that will be starting up soon here in Utah,” said Paul Clements, Rocky Mountain Power Director of Commercial Services. “This project is part of Rocky Mountain Power’s commitment to be good guardians of our environment and wise stewards who work to keep electricity prices at some of the lowest rates in the nation.”

“The commissioning of the Utah plant is a significant landmark for Scatec Solar. The fact that we were able to build this 104 MW plant within 12 months is the proof of our company’s capability to deploy solar power rapidly. The Utah plant also underlines the importance of delivering results and choosing partners whose core values match our own – in this case, Swinerton, Google and Prudential Capital Group. That our company is able to realize solar plants simultaneously in different continents is a tremendous tribute to our tireless and dedicated team” says Raymond Carlsen, CEO of Scatec Solar ASA.

With its sunny days and cool temperatures, Utah is one of the top seven states in the United States with the greatest potential solar capacity. In 2008, Utah enacted the Energy Resource and Carbon Emission Reduction Initiative, setting a renewable portfolio goal of 20 percent by 2025, requiring utilities to pursue renewable energy to the extent that it is cost-effective to do so.   With the Red Hills project, Utah is the first state to build a solar plant greater than 80MW (ac) without a more aggressive Renewable Portfolio Standard.

Scatec Solar has been publicly recognized for its role in pioneering utility-scale solar in Utah.  Utah Clean Energy recently named Scatec Solar its 2015 Clean Energy MVP for the company’s contributions to advancing clean energy solutions in Utah and the West.  Specifically, the company was honored for its role in enabling Utah’s first utility-scale solar plant and for helping lead the way to enable nearly a gigawatt of renewable energy projects in Utah.  The team is currently developing a second 80 MW (ac) photovoltaic solar plant in Iron County, Utah—the Three Peaks Power Plant.

“We are very proud of our role in advancing solar energy in Utah—a state with such excellent solar potential,” said Luigi Resta, CEO, Scatec Solar North America. “Utah Red Hills Renewable Park—the state’s first utility-scale solar plant—and other projects in our pipeline represent a huge step forward in bringing the sun’s clean, sustainable energy to more Utahns.”

Total investment for the plant has been estimated at $188 million—with Google providing tax equity, Prudential Capital Group providing debt financing, and Scatec Solar providing sponsor equity. The power plant will be wholly-owned by a partnership jointly owned by Google and Scatec Solar. Scatec Solar will manage and operate the plant.

“We are pleased to join Scatec Solar and Prudential in bringing solar energy to the state of Utah.  We hope that projects like these will encourage the development of additional renewable energy throughout the state,” said Nicolas Coons, Google’s Head of Renewable Energy Investments, Developed Markets / Technologies.

“We are excited to be part of this solar transaction and have enjoyed working with Scatec Solar and Google,” said Ric Abel, managing director with Prudential Capital Group’s Energy Finance Group – Power.

Scatec Solar engaged Swinerton Renewable Energy to lead Engineering, Procurement and Construction of the ground-mounted photovoltaic solar facility that interconnects to an existing transmission line.  The plant was built on approximately 632 acres of privately-owned land in Parowan, Utah, and deployed more than 340,000 PV solar modules on a single-axis tracking system.

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