Solar Southwest Florida

Florida House Bill 0277 (2013) has passed both the House and Senate unanimously. This bill makes official the de facto standard used by county property appraisers that excludes renewable energy (i.e. solar energy, wind energy) systems from assessed property values. This exclusion was inadvertently removed from law during a previous congress in 2008. Various attempts have been made to reenact the exemption, with no success until now.

According to the Florida Solar Energy Industries Association, “The bill implements a constitutional ballot initiative approved in the 2008 general election by Florida voters, which prohibits adding the value of certain home improvements specific to the installation and operation of a renewable energy source device and increasing the level of wind resistance protection to the assessed value of residential property. ”

I’ve been hyper-critical about the do-nothing Florida legislature in the past, but this appears to be a long-overdue victory for the Florida solar energy industry. I’ll give credit to them for finally getting it done. While the real impact of the new law will be minimal, at least it provides some peace of mind for those thinking of installing solar energy systems.

The exemption technically covers new solar energy installations completed after January 1, 2013, but based on the last 4-5 years of de facto exclusions, it is unlikely that any property appraisers will have an appetite to assess systems installed prior to this date. The broad definition covers most solar energy property including on-grid and off-grid (battery backup) solar electric systems, solar pool heaters, solar water heaters, solar attic fans, solar tubular skylights, and associated solar energy equipment.

House Bill 0277 is on the Governor’s desk for signature. Governor Scott is expected to sign it.

The Senate bill summary page can be found here: http://www.flsenate.gov/Session/Bill/2013/277

The full text of the bill can be read here: http://www.flsenate.gov/Session/Bill/2013/0277/BillText/er/PDF

Calling all real estate agents in Southwest Florida!

There is an updated form released by the Appraisal Institute® called the Residential Green and Energy Efficient Addendum (Form 820.04). This form provides a way to value solar energy systems on homes that allow the value to be included in residential and commercial real estate appraisals.

It has long been known that solar energy system increase real estate values and reduce the time on the market for home sales. Only recently have widely accepted tools been released. Since there are so many solar panel systems in Southwest Florida, it’s important that real estate professionals understand the implications during the valuation and buying process so they can advise clients accurately.

If you are a real estate professional that would like a complete valuation report for a solar energy system, or just a friendly ballpark estimate for a solar energy system you run across, let me know – I can help!

You may have seen the guy standing with a sign under the Veteran’s Parkway overpass or the truck driving up and down Del Prado Boulevard protesting Cape Coral’s proposed Public Service Tax that will “increase your electric bill by 10%.” Just like other utility electric taxes, you can beat the tax with simple conservation efforts, but also with solar electricity!

First to clarify, the tax would not actually raise any bill by 10%. The currently proposed 10% tax would be assessed on the customer charge and base utility rate only, excluding the power cost adjustment and all other taxes and fees. The real impact would be closer to 7% of the total bill. One of the major complaints is that it doesn’t tax unimproved property owners and many landlords whose tenants foot the bill. The tax is seen as unfair by many as a result. It also penalizes heavy energy users, even if their physical footprint or assessed property value is very low. It doesn’t take into consideration the impact of the taxpayer on public services, either. There is a Q&A on the subject from the City Manager dated 4/22/13 that you can download here.

Now that that’s out of the way, how can you reduce the impact of the proposed tax with solar electricity? Fortunately, LCEC has a netmetering program that allows you to offset your electrical usage with energy produced with solar panels. A grid-interactive photovoltaic (solar electric) system produces energy for your home that reduces your dependence on energy delivered by LCEC, and even sends excess energy back to the utility grid, further reducing your “net metered” electricity consumption. That means you have a lower billed energy use, and thus a lower tax!

Since other taxes on your bill are computed based on the net amount of energy consumed each month, those taxes are also reduced proportionately. If you completely offset your electrical consumption with solar electricity, your taxes will be reduced to almost zero – only small fixed taxes and tax on the base customer charge would be applicable.

Whether you’re ready to take the plunge and reduce your net energy consumption to zero, or you want to get started in solar energy with a small solar electric system or other solar product, Fafco Solar is ready to help its neighbors with the threat of increased electricity prices and taxes. Call today: (239) 574-1500.

Fafco Solar, 901 SE 13th Pl, Cape Coral, FL 33990, Florida State Solar Contractor License CVC56701

A big “thank you” to all of the residents of Sandoval in Cape Coral, FL who showed up to hear about solar energy in Southwest Florida. These events are critically important to help get the word out that solar energy is a realistic option for the masses. It’s so interesting to hear the questions and misconceptions that people have about solar energy.

If your community is interested in hosting a learn about solar energy event, we take care of everything. Just give us a venue – I love doing these events! I talk about solar in a practical, no pressure, no obligation  learning environment. Subjects include history of solar in SW Florida; products suitable for our area; prices, price history, and incentives; how solar works; the different kinds of solar; solar tech; emerging solar trends; and more!

NBC-2 News reported that a smart car charger caused a fire in Estero, FL yesterday causing $200,000 to a home. From the story I gather that the homeowner installed the smart charger himself. While I can’t say if he was qualified or if the fire was caused by installation errors or product failure, it brings an important issue to the forefront – electric car charging is going to bring a whole host of problems for home electrical systems.

The problem is that many homes already have fully loaded main distribution panels. Several tandem breakers may be installed to accommodate new circuits for things like lighting, appliances, and pool equipment added after the home was built. And electric car chargers use a LOT of power! For example, the Leviton Evr-Green 320 Charging Station is rated for 32A @ 240V, or 7,700 watts. The only appliances in your home that carry higher ratings are likely your electric range and the electric heater in your air conditioning system. Adding a Charging Station is no trivial matter in terms of power consumption.

People are getting interested in solar charging for electric vehicles at home. It doesn’t make much sense to install a solar-direct charging system because the solar panels would not function when the car is not at the home. It makes much more sense to install a grid-interconnected solar energy system and charge the vehicle with the home’s existing electrical distribution system. That way, excess electricity provided by solar panels is sold back to the utility company. Adding solar to a home can increase the power capacity of the home, but only if done correctly and safely in accordance with applicable codes.

A Charging Station can be safely added to any home with the right distribution equipment, and it doesn’t need to break the bank. It may be possible to simply add a new (dedicated) circuit for the Charging Station. Adding a second main distribution panel is sometimes the best option. This must be done by a licensed electrical contractor, and requires pulling the utility meter. A load analysis should be performed to make sure added circuits do not overload distribution equipment. Doing this during a solar energy installation is an ideal time. Since the solar electric system needs to be interconnected to the utility, updating the home’s capacity concurrently can be accomplished with minimal extra effort (cost). Better yet, some of the new distribution equipment may be eligible for the 30% Federal Investment Tax Credit because it is necessary and part of the solar energy production system.

A solar electric system can be used to offset the additional electricity that your home will use when you purchase an electric vehicle. (Side note: remember when purchasing an electric vehicle that you are still using fossil fuel to power it! If you plan to purchase an electric vehicle, be sure to let your solar installer know so provisions can be made for the future.

My heart goes out to the Schardein family. Losing a home to fire must be devastating. Hopefully the damage is fully insured and the impact is minimal.

FPL will open up the next round of solar rebate applications on October 16, 2012 at 8:30 am. Rebate applicants will need a licensed solar contractor to install their system, and are advised to contact Fafco Solar urgently to get an evaluation, conditional contract, and in the queue for a rebate application submission.

The total funding for this round of rebates is $9 million.

FPL took one of FlaSEIA’s recommendations and is allowing applications to go through once the available funds are exhausted. If successful applicants do not pursue an installation, the next applicant will be offered a rebate approval. That’s a step in the right direction for the beleaguered rebate program.

The average price of solar photovoltaic (electric) systems in Southwest Florida has continued to drop steadily for the last two years, and local prices are lower than national averages for both residential and non-residential systems. According the the Solar Energy Industries Association (SEIA) U.S. Solar Market Insight Report for Q2, 2012, the average price of a residential solar electric system dropped to $5.46 per watt. Larger non-residential systems averaged $4.38 per watt.

Average Solar Electric Installed Prices Q2, 2012. Source: SEIA U.S. Solar Market Insight Report

The comparatively lower prices in our local market result partially from lower than average labor costs and stiff competition, but the numbers are skewed in a way because some leasing companies in other states can sell systems at inflated prices and offer low monthly payments. You can see from the above graphic that the range of prices is quite large, ranging from $4-$8 per watt. Typical prices for the most basic installations in Southwest Florida are near the bottom of that range, with more complicated roof types and wind zones and premium products resulting in higher retail prices.

The good news for Southwest Florida residents and businesses is that light demand in our state results in prices of solar energy systems below that in other states where dealers have long backlogs of installations. While prices are very low now, I don’t expect that Florida’s retail prices will continue to drop at the same rate seen in other states. With margins squeezed as much as they are, the rest of the nation is likely to “catch up” with our already-low prices.

After an already depressed market in the first quarter of 2012, Florida’s solar electric installations fell to 18th among states in the second quarter of 2012 according to the Solar Energy Industries Association’s quarterly report. After rising to 14th among states in Q1 of this year, Florida regressed below it’s 2011 ranking of 17th among states. This follows a large spike in national solar electric installations with Florida installations remaining stagnant.

SEIA Report On Solar Installations Q2 2012

To blame, in my opinion, is:

• Continued disruption caused by the FPL rebate program
• The lack of a cohesive policy in the state regarding renewable energy
• Lack of availability of financing and reasonable long-term financing rates for solar energy home improvements
• An incorrect public perception that solar energy is only viable with generous rebates (said another way: the industry does a poor job of marketing)

Fortunately, Florida still has a thriving solar pool heating industry, which is not covered in the rankings. Solar thermal, including solar pool heat and solar domestic water heating, is an important contributor to Florida’s solar industry. Solar Photovoltaics (PV or soalr electric) are mainly addressed in the report. While to report is not encouraging, historically low prices are leading to increased installation of solar electric systems without incentives, but Florida is falling further behind other states with more progressive incentives and policies.

Today I saw quite a few interesting products that can be applicable to our market in Southwest Florida. Here are a few highlights.

• Canadian Solar is coming out with a three-phase AC solar module with a microinverter integrated. Release is expected in January 2013 pending UL listing. This could greatly simplify commercial installations.
• QuickMount PV has a great looking roof flashing for small conduit up to 1″. This will be great for bringing PV wires into the attic.



• Exeltech has a true AC PV module with the inverter completely replacing the junction box. The cabling solution allows varying distance between modules.
• A company right down the road in Marco Island is offering
  preengineered solar carports. This relationship will help us offer a locally designed option that meets local wind codes.
• I have to convince my boss to buy us a FLIR infrared imaging device to confirm solar pool heat panel and system flow performance. There are some very effective low-cost devices now available.
• S-5! has more than a few corrugated roof clamps for solar mounting. The array of clamps now available is amazing!
• I finally saw Outback’s battery and enclosure in person. The clear front on the enclosure is great for visual inspection. They also have a rack mounted lithium ion battery offering that works with Radian inverter systems.
• Enphase introduced the ArrayGun, which allows scanning of microinverter serial numbers and building the inverter array map at the installation site. This will speed up the process of getting PV data monitoring in place. I was on the leader board for “fastest gun.”



• The solar thermal section was very sparse, with only a couple of water heating companies exhibiting.

The word going around the expo floor was that the conference was not particularly well attended. There seemed to be much more elbow room for sure this year. However, President Clinton is preparing to speak, and a long line is forming.

Overall, the opportunity to meet colleagues in person on “my turf” was well worth the three hour drive up from Fort Myers. Hopefully the event brought light to the state of the solar industry in Florida. I look forward to fostering the new relationships forged here at Solar Power International 2012.

Under the mantra, “what happens at SPI stays at SPI,” I’ll just say that the SPI Block Party was fantastic. I left with the obligatory swag, most notably my competing orange and white Enphase and SMA sunglasses. Let the micro inverter battles begin!

Now it’s time to go see some bleary eyed exhibitors and learn what’s new.

The Expo floor is getting set up and the opening ceremonies are over. SPI is in full swing!

SunPower’s Groundbreaking New Warranty

SunPower Corp. announced a groundbreaking warranty today at Solar Power International. SunPower’s Maxeon cell photovoltaic modules will now have a full 25 year power output AND product warranty, an industry first.

Highlights of the warranty:

• Material defects & workmanship warranty increases from 10 years to 25 years.
• Power output will be at least 95% of the minimum peak power rating for the first 5 years, and decline by no more that 0.4% per year for the following 20 years.
• Limited warranty covers transportation costs (both ways), removal costs, and reinstallation costs.

The new warranty is backdated to July 1, 2012 for customers who recently had SunPower solar energy systems installed.

Fafco Solar is an authorized SunPower dealer in Southwest Florida through it’s relationship with Abacus Energy Group. LLC.

Solar Power International (SPI), the world’s premier solar energy tradeshow, starts today in Orlando, Florida. After being held the last two years in Dallas and Los Angeles, SPI 2012 is a prime opportunity for solar professionals in Florida to attend the event closer to home.

This is the time of year that the email autoresponders start working overtime. Solar manufacturer, supplier, dealer, and service provider facilities become ghost towns. Tons of email floods my inbox from exhibitors that want me to visit their booth. The solar industry essentially shuts down to focus for one week on what’s new. Exhibitors clamor for press coverage and recognition and attendees scurry around trying to gather the most information and knowledge possible while making new key contacts. And there is a little fun thrown in, as you might expect at a big conference.

I’ll be posting from SPI, updating you on the news I find interesting, and gathering key information about solar energy and how it relates to the industry and business in Southwest Florida. Stay tuned!

The Florida Solar Energy Industries Association (FlaSEIA) is voicing the solar industry’s dissatisfaction with the FPL Solar Rebate program. While touted as successful by Florida’s largest utility and a spectacular windfall for a few lucky rebate recipients, the solar rebate program has been disastrous for Florida utility ratepayers, solar energy contractors, and solar suppliers.

FPL and FlaSEIA are at odds over the FPL Solar Rebate Program

Solar Southwest Florida is in receipt of a series of letters between FlaSEIA’s former President, Bill Gallagher, and Florida Power & Light’s Manager of New Product Development, Oscar Gans. The letters detail results from the latest distribution of 2012 rebate funds, FlaSEIA’s position on the rebate program, and FPL’s response. There is some very important and disturbing information contained in the letters, and based on FPL’s response I am not confident that they share the same sense of urgency about the problems with the program.

There are really three overriding factors in this debate over the program in my opinion:

• The flawed reservation system and procedures that creates an unfair playing field for solar contractors and rebate applicants.
• The rebate amount is seriously out of balance with demand for those funds.
• The program does not accomplish the stated goal, which is to increase the number of photovoltaic energy systems installed in the state.

The Reservation System

Case in point for the flawed reservation system is that one contractor was able to secure 27 of the 119 approved rebate applications (23%). The top three contractors accounted for 50% of the approved applications, and the top five hoarded nearly two-thirds. The top four solar contractors for commercial systems garnered 71% of the business, with only seven other contractors securing one or two approvals. Only 26 contractors (out of hundreds of solar and electrical contractors licensed to do installations) were able to secure any rebate approvals.

The reservation system is an online application process that requires the FPL customer to log into their account and enter system details to an online form. In reality, contractors are asking account holders for their account information so they can have employees fill in the technical data required. The application forms go live at 8:30 am on the application date, and then it’s a race to see who can type fastest.

In the last round of funding, the funds were exhausted in under two minutes and further applications were rejected!

How did some contractors fare so much better than others? It is quite apparent that some have figured out how to use form-filling software to quickly enter rebate applications. While that is not cheating, illegal, or immoral in any way, it puts others at a severe disadvantage and give individuals virtually no chance of success in securing their own rebate approval.

Full disclosure to dispel any thoughts that this is just sour grapes: My employer had 11 people frantically entering rebate applications, and we had two people type fast enough to secure approvals, one of which went through with purchasing a system.

There are other problems with the reservation system, like not continuing to take applications after funds are exhausted so that unused funds can go to the next applicant in the queue. Another problem is not requiring that the applicant have serious intentions of actually going forward with an installation. The main problem at this point is the skewed distribution of the funds – the fairness factor. A lottery process has been suggested by others, but that isn’t a process through which industry members can build reliable and predictable sales (read: jobs).

Supply and Demand

Why did the rebate funds run out in under two minutes? Because the rebate amount at $2 per watt is insanely generous in today’s photovoltaic market. It’s no secret that the price of photovoltaic modules themselves is now under $1 per watt. The total installed price being offered by retailers in Florida is well under $6 per watt, and can be under $4 per watt in many circumstances. The combination of a 30% tax credit and the utility rebate exceeding 70% of the remaining cost in many cases makes the return on investment look like stealing power from your neighbor. There is no reasonable financial argument against installing a solar electric system if you are able to secure a rebate for your home or business.

Unfortunately, the rebate funds are limited, so the number of applications approved (119 in the last round) falls grossly short of the demand.

To put things into further perspective, the State of Florida ran a wildly successful $2 per watt rebate program a few years ago when systems were selling at $8-$10 per watt retail price. Because of the plummeting cost of photovoltaic panels and components over the last few years, it is now cheaper to buy a system without rebates than it was a few years ago with rebates. Even at “those prices” a $2 per watt rebate amount was so successful that the State ran out of funds and ultimately paid many people just 52 cents on the dollar. On a good note, the FPL program guarantees that approved applications will be paid as long as the program standards are met.

The bottom line is that the rebate amount is far too generous. People are reluctant to install a system without rebates when their neighbor received a $20,000 handout from the utility. They are far more likely to roll the dice in the next round of funding and hope for a windfall.

Other states and utilities offer far less generous rebate programs and are seeing huge levels of solar energy adoption. For example, Arizona utilities offer rebates in the range of 20 to 50 cents per watt. The programs are wildly successful and at least one utility has exhausted funding for this year.

You will see in the letters that FPL spent $3 million advertising the solar rebate program. It clearly did not need to be advertised. This amount put toward actually installing solar energy systems would have resulted in 1.5 megawatts of additional capacity for ratepayers, and far more if the rebate amount was in line with demand.

The Goal

The stated goal of the FPL Solar Rebate Program is to increase the adoption of distributed solar energy installation in the state of Florida. This rebate program is effectively capping the installed capacity in FPL’s service area, having the exact opposite effect! If $4.5 million is actually reaching ratepayers as noted in FlaSEIA’s letter, then simple math indicates that 2.25 megawatts of capacity will be installed. As stated above, and proven by ample anecdotal evidence, other ratepayers are not going to proceed without a rebate if they know a rebate program is in place.

To put this in perspective, the state of New Jersey saw 173.8 megawatts of capacity installed in the first quarter of 2012 alone.

Statistically, Florida fell to 17th among states in 2011 for total installed solar electric capacity, down from 8th place, right at the time that FPL’s rebate program came into existence. In the first quarter of 2012, the total capacity installed in Florida was a paltry 2.8 megawatts. This was 14th among states, and only 1.8% of the amount of solar capacity installed in the top ranked state, New Jersey.

FlaSEIA recommends that the rebate amount be reduced to 50 cents per watt, which would result in a four-fold increase in the capacity installed. I believe a more aggressive reduction is in order – 25 cents per watt. I truly believe that and eight-fold increase in installed capacity is possible with today’s current retail price of solar photovoltaic systems and a 25 cent per watt rebate. Furthermore, a small rebate amount will not dissuade ratepayers who are not lucky enough to obtain an approved rebate application.

Conclusion

The FPL Solar Rebate Program is clearly flawed. FlaSEIA, with its limited funding and power, is admirably taking the industry’s complaints to FPL and the Public Service Commission. Moreover, this is a battle for the Florida electricity ratepayer who is willing and able to install a solar photovoltaic system, but is stymied by the process and conflicted over whether to proceed without a rebate handout. The fact of the matter is that Floridians were installing solar energy systems in larger quantities while systems were sold at higher net costs before the rebate program came into existence.

Am I asking for the rebate program to go away? Certainly not. I do believe utility rebates encourage the adoption of solar energy. Unfortunately, because of the way this program is being administered, and the supply and demand being so far out of whack, FPL’s implementation is having disastrous results on the industry (jobs), and is having the direct opposite effect as the stated goal.

The series of letters can be viewed here:

FPL Letter May 29, 2012

FlaSEIA Letter July 30, 2012

FPL Letter August 14, 2012

With the fantastic monitoring tools available today, we can see exactly how much energy production drops on cloudy days and when storms pass by. Tropical Storm Isaac just passed by Southwest Florida, and I’ve been reviewing energy output from many of  the systems we have out there. Saturday and Sunday were completely cloud covered days. Sunday August 26, 2012 was not only cloudy, but it was dark and rainy virtually all day long.

Despite the cloud cover, photovoltaic systems continued to put out significant amounts of energy. In general, most systems across Southwest Florida had production cut in half on Saturday and lost almost 3/4ths production on Sunday. Here are a couple of examples:

PV Energy Output During Tropical Storm Isaac

PV Energy Output During Tropical Storm Isaac (Residential)

The last two days were extraordinary, of course. It is interesting to see the performance of the systems during a storm, because there would definitely be an impact on battery backup systems if a power outage were to occur during a storm. Fortunately, there is usually plenty of sunshine to recharge batteries the day after a storm. We still have off and on rain today, but I have seen glimpses of blue sky already. Go Sun!