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The Utility Fox is Guarding the Solar Henhouse

by Dale Julin, Stardate Solar
Published: June 4, 2007

"All the best forms of corruption are legal!" Credit the late newspaper columnist Molly Ivins for that humorously skeptical remark. It neatly sums up what's happening now to the California Solar Initiative (CSI).

What's going on here? How much money has the California's Public Utilities Commission allowed the utilities to keep in their bank accounts for almost six months now, drawing nice interest rates? Millions? Where does that extra money go? To the CSI program? To the utility's other programs? I'm waiting for answers to those questions.

The CSI, begun in January, was widely touted as a more than two billion dollar program that would pump up solar energy production statewide, and foster new solar-related businesses. But so far, it has instead turned into a bureaucratic/ utility company squeeze play that is sapping the financial strength of smaller solar companies. And it's all going on under the media's radar screen.

Don't get me wrong. I do a weekly radio show about the coming solar energy-powered economy. I was in the audience last fall at Solar Power 2006 in San Jose, when California Governor Arnold Schwarzenegger told us "the future is renewable energy. " Going green is now smart politics. At first glance, I thought the CSI was a smart solar plan.

But as any journalist, accountant, or I.R.S. agent will tell you, the dirt on a deal is always in the details. And almost six months into the program, the dirt is this: The CSI is backed up.... big-time. "The powers that be" are benefiting at the expense of smaller solar companies, and hundreds of homeowners.

I've heard the rumblings from my solar business colleagues for months...

There used to be a simple, one page rebate application form. Now the state and the utilities want much more information about a proposed system's solar savings, or "proof of performance."

The utilities say the longer application and additional information is important. They say they're worried that an unscrupulous installer will commit fraud, by over-promising how much a system will produce, thereby qualifying for a larger rebate.

But many installers say they already back their installations with warranties and guarantees. If there's a problem, they'll fix it. They're begging the State's Public Utilities Commission to streamline the process. Until it does, many installers say they're shying away from installing systems on homes, instead concentrating on commercial installations. They're seeing their home system sales dropping dramatically, because their sales people must now do all kinds of new estimates. It's a lot of work for what used to be a simple kind of small-sized sale.

Just as before the CSI took effect, installers must precisely check on the pitch of the roof, the angle of the sun, the possible shading produced from other nearby homes or telephone poles. Now they are even being asked to determine the species and growth rates of nearby trees, for fear that they'll someday grow too big and cast a shadow.

The installers I know say they're complying with the new requirements by telling their salespeople to greatly underestimate the potential power produced by their solar systems, even though the systems will certainly produce more power. But underestimating production makes it harder for a homeowner to see the savings that going solar will really give him. That makes for a harder sale. Add to the equation the fact that there are now different sized rebates for different zip codes. The new requirements are so complicated that one veteran solar installer jokingly told me he now has to use a crystal ball when he gives an estimate to a customer.

If all of this isn't bureaucratically bad enough, here comes PG&E's version of the hand that giveth, and the hand that taketh away. I recently attended a PG&E sponsored solar installer's workshop in San Francisco. About 30 of us walked in, past all the displays that tell us the monopoly now thinks of itself as a green company... "Because the future is renewable energy."

That's what we all thought as well. But that's not what we heard at the workshop. The PG&E representatives agreed that the CSI process needed to be streamlined.

"We feel your pain" they said.

Then an installer asked... "How many applications for new solar home installations have you received?

"More than one-thousand" said the earnest young PG&E representative.

"How many have been deemed "completed?"

This was a good question, because unless a new system is deemed "completed" the homeowner cannot turn it on. That means the installer must wait for his check.

The young PG&E representative answered honestly, if undiplomatically:

"None"... he said.

"None?" we asked.

"None was the reply.

The other PG&E representatives in the room quickly tried to explain. The company hired outside inspectors. They're working as fast as they can. The first checks should go out anytime now.

As the saying goes "The check is in the mail." Imagine the cash-flow problems for solar companies when no cash is flowing. Thank goodness PG&E provided a free lunch to go with the bad news. That kept the installers in the room from just walking out, so they could start looking for other lines of work. Dessert anyone?

That workshop was held two weeks ago. As of May 31st, every one of the many installers I know is still saying one thing "Show me the money." Some final notices have now finally been sent out. That's nice. But you can't cash a notice. Where's the money?

Don't believe there's a CSI slowdown? See for yourself. You'll find documentation on the PG&E website: click on "CSI and SGIP statewide average systems cost, May 2007" and check the dates for "completed" systems after January 1, 2007. None. The same goes for residential and commercial applications in Southern California Edison, and San Diego utility territories. As of May 31st, when this article was last updated, there was not a single system marked "completed" for 2007. None.

What's going on here? How much money has the state's Public Utilities Commission allowed the utilities to keep in their bank accounts for almost six months now, drawing nice interest rates? Millions? Where does that extra money go? To the CSI program? To the utility's other programs? I'm waiting for answers to those questions.

Meantime, hundreds of homeowners are still waiting to turn on their solar systems, and dozens of solar companies, many of them start-ups, are wondering when California's solar revolution will really...start-up.

Dale Julin is the owner of Stardate Solar, a Santa Cruz, California based solar power company. He is the host of 'The Stardate Solar Power Hour,' Saturdays at noon on KRXA 540 am, in Monterey, California. A long-time solar advocate, Julin is a former TV news anchor and investigative reporter. His many awards include the Peabody, which is considered the Pulitzer Prize of broadcasting. Solar enthusiasts can listen to the show online.

This article was adapted from Julin's original commentary article that appeared in the SantaCruzSentinel.com.

Additional Information

The information and views expressed in this article are those of the author and not necessarily those of RenewableEnergyWorld.com or the companies that advertise on its Web site and other publications.

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Comment
1 of 23
June 4, 2007

Hardly a surprise the utility companes are  sabotaging this.

I wonder if there's a technical work-around? Like adding batteries to soak-up excess PV power and a uC controlled power switch to direct the load to either the Grid or the PV inverter.

BTW do you have Time of Use metering in CA. This could prompt the use of batteries for time shifting of power. 


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Comment
2 of 23
June 5, 2007

Dale, Dale, Dale,

your article is putting a black mark on solar. I know that is not what you intended, but it is misleading people. We have systems installed and interconnected under CSI. PG&E is working on inspecting these jobs. To date they have inspected "NONE". The article in the Herald was not good for the solar business. Please be more careful in the future


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Comment
3 of 23
June 6, 2007
Wow!  I went to our brand new electric store today.  They sell all the stuff for the electrician.  I asked one of four men in there, "Do you sell Solar Panels?"  No??????????????  I asked "Do you install"  NO! "I said well, they have all that information on Renewable Energy Access.com and there is a shortage for solar panel installers, I think that is a good job?"  They told me to call the local electric company.  I said OK.
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Comment
4 of 23
June 6, 2007

 

Thank you all for your comments. Tell me more. I'm also hearing plenty more from my installer friends. As of June 5th, PG&E had still not updated the website I mentioned in the piece. Still not a single "completed" system noted on the website. A PG&E representative did call me to say that checks are now starting to go out. But I've not heard of anybody actually receiving a check. Have any of you? " Let me know and I'll gladly update below. Meantime, I've begun a petition drive. The petition says simply... 

"Hey California Public Utilities Commission... fix the C.S.I... before all of our best small solar companies... die!"

Please join my radio show listeners, other solar installers and solar supporters and sign the petition. E-mail me at contact@stardatesolar.com and I'll include a copy of your email, and send it along with your names on the petition.

Thank you..."Because the future is Renewable Energy!"

Dale Julin  


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Comment
5 of 23
June 6, 2007
I don't know whether the CPUC, the CA legislature, or the utilities should get the most blame, but they really screwed the pooch with the new incentive programs. It's a complicated mess that even PG&E reps can't always navigate, let alone solar contractors. It could have been so easy, too: just measure kWh consumed & put back on the grid, & just bill & credit accordingly, full stop! Instead we have a bureaucratic nightmare that has effectively killed the CA residential PV market.
Comment
6 of 23
June 6, 2007

Hi All:

I am surprised PG&E is fighting the solar PV. Usually its the power companies that like it because it lowers the peak demand rate they have to pay the major grid providers in the Summer. Does anyone no who the grid provider is for the PG&E's region..??..

 .....Bill

PS: James, next time please leave out the "white space"!! and you don't need any special fluid to keep solar liquid thermal from freezing...its called drain back...


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Comment
7 of 23

CA does have Time of Use metering - with a big fee for the meter itself. 

I had PV installed about 2 years ago and even then, after completion of the install PG&E took their sweet time to come out to inspect. It took so long that the company said 'go ahead, turn on your system, and we'll just turn it off the day they inspect'.... sad when you have to go to those lengths. 

Going 'green' for many companies is a way to appease the masses.. until corporate philosophies change and they realize the benefit to them of truly going green (and detriment of NOT 'going green') you'll have the ruse thats going on everywhere today. I'd love to see this article in the SF Chronicle!  Turn up the grass roots pressure on PG&E.


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Comment
8 of 23
June 6, 2007

Dale,

Tell it like it is!  Perhaps it is time to put together a grand jury investigation on the members of the PUC.  If they won't push the buttons like the good monkeys they're supposed to be, then let's get some new monkeys.  What about that interest money?  Get it rolled back into the fund.  We live in a democracy full of apathy.  But...PG&E is a rich target for lawyers, they're not so apathetic.  Get a bigger hammer.

PG&E knows solar is the long term solution.  They're like chipmunks; save it for later, bury it for now.  Asia isn't waiting.  They intend to dominate the world market.  Not only are not putting up a fight, we're being forced, by our own policies to hand, techology to them to survive in business.  Like parking our ships in a row at Pearl Harbor, folding our hands and believing in the best is having dire consequences.  Although PG&E may not see it this way, PG&E's behavior is a threat to national security.


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Comment
9 of 23
June 6, 2007

James,

Life is too short.  I enjoy watching the mistakes by our utility companies and our leaders.  It's our system.  It's still all about oil, coal, utilities and gov't's.  It will always be too expensive and we will always pay top dollar.  I am pleased Dale & California woke you up.  Especially when Germany, Japan and China are cashing in on our technologies.  I have been touting PV for years and am struggling to get paid by all involved with my projects.  We need to wake up and enjoy our lives and someday things may indeed change. 

Sam...


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Comment
10 of 23
June 6, 2007

The problem is that California is afraid of a $25 utility meter on the output of the inverter and opted for an "expected performance buy back" EPBB instead of simply relying on a simple meter read.  EPBB has all of the disadvantages of a rebate program and a performance based program without any of the benefits.  The disadvantages are high administrative costs, uncertainty of actual performance, and uncertain production payments over an extended period instead of an upfront known amount. 


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Comment
11 of 23
June 6, 2007
This is the problem with relying on the government (ie - our tax money) to inefficiently bring alternative energy.  Most states are like parts of Canada where there is nothing.  Nevertheless, as costs come down for RE and rise for traditional no one will be able to stop the free market from pushing everyone to RE.
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Comment
12 of 23
June 6, 2007

California has always done an inefficient job of leading the nation toward renewable energy and utility reform.  During the 1980s, the state offered huge tax credits for windpower based on installed capacity instead of production, and the result was fraud including "paper windmills."  The state ruined deregulation in 2001 by letting the utilities write the rules during the 1990s.  Now, the state appears to be trying to prevent the wind mistake with bureacratic rules for solar.  What they really need is to design a simple verifiable model to estimate actual production.


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13 of 23
June 6, 2007

You think you have it tough down there?  Try coming to Canada!  There is NOTHING for someone like myself who is building an energy efficient, off-grid home.  We have tried to get grants, incentives etc., for the extra costs of building a well insulated, passive-solar designed home, and dropped more than 40K out of our own pocket for RE equipment....what do I get from my government (Federal, state or local??)....you guessed it....NOTHING.

 I would take a delay in a promise of money over nothing anyday....!  keep up the good fight people - we'll get there one day!

 Tom


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Comment
14 of 23
June 6, 2007

Too many politicians insisting on bribes before they will pass legislation.

Too many corporations using their money to get government to pass legislation protecting old companies from new companies.

When lies are treated as truth, and the truth is deemed traitorous, should anyone be surprised at what passes for democracy?

 Thank you for speaking your minds.


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Comment
15 of 23
June 6, 2007



Wow, its remarkable that someone has the guts to write the truth abouthow all the pencil pushers got involved in solar.

When I first started, in thermal around 1980, there were about120 companies, with  guys working in solar, Arco came out with their G series thinfilm,

Exxon was closing shop, so was Shell, and solavolt, and SolarEx and

Chronar were busy getting executives wicked women for contract signatures.

Now its done with more smoke and mirrors from Sacramentoand Washington and Scottsdale and Chicago and Osaka and Milan, the real sad aspect is that most of the solar companies were allowed to be sold to foreign countries with both democratic and republican jerk offs involved.  Yes that's right, Everyone was in it.

 The Uitlity groups were busy getting EPA air quality control permits,

by getting one or two kilowatt arrays, and everyone was telling

James Young and myself that we were crazy for trying to market

Sovonics which is now called UNI SOLAR, who knows what they will

call themselves next month.

 

My oh my, some things never change, from research forever  FSEC with their

3 million dollar leaking roof, and those cool condos nearby,

to the new trash center for SOLAR KING out of Waco [ speak it like it sounds ]

Texas, to the failure of Packerland Solar, to the new 200 thousand

unit solar thermal fiasco about to happen in San Diego.

 Get the word out, government workers drones, and there seems to be a whole lot  of them pushing their pencils, never, and I mean never make anything good

out of something worthwhile.

Everything the CEC does has something done wrong, in fact, not one solar array

in California is set up for a good cleaning wash during the dusty summer.

Very few systems are properly designed, because the inspectors

really have no clue about reflection, the gravity of the moon,

and lightning does not mix well with metal structures,

what ever happened to pull trusion fiberglass racks?

The only guys and gals making any real money in solar in California

are those office pencil pushers in Sacramento and places like LA, selling the concept that its okay for systems to be overpriced and that its okay to design tacky  systems for  commerical

end users, taking the money ear marked for home owners,

and then verbally overstating about how they are helping the planet.

I have seen the writing on the wall, back in 1990 in Austin

while looking out my hotel room at the crafty ones  planning their next takeover

from Sandia and Nrel and the like while at the Austin Solar whatever

back in 1990.

 One thing for sure, those pencil pushers sure are good at screwing the public.

China is now off loading solar with Japan through German owned companies

all over here in the USA, and everyone, and I mean everyone just sat

back and let it happen, including me.

 Now, the only way to get even with the Chinese, the Japanese and the Germans,

is to tax the solar being imported like crazy to pay the rebates.

As for solar hot water, unless you make the system totally freeze proof,

and that cannot happen with Glycol, it can happen with a refrigerant

that is already EPA approved, and there are a few jerks trying to capitalize

on another of my ideas, then you might make a go of things,

with solar hot water systems.

PV home systems will never pay off the ROI unless you change

the compressors from 240 AC to 24 volt DC, and even then you

need a large array with batteries.

 

Its funny how the utilities set up the design of inverters from battery charging

to only grid tie.

 

Amazing, simply amazing,.........

oh, by the way, I do know what I am writing about,

and there are only a few solar guys living on the planet who knows more about

radiation electron interphasing than me, ooops exvept

maybe Dr. Hauser of Etoy, Habbi over in Lebannon, ETA and their gadgets,

and Garrett in Fort Lauderdale-Miami, everyone else plays in the stuff,

we had to make our own 24 volt dc transformers, our own pump systems,

and our own solgans, like the future is now, and then find out about

other people capitalizing on our ideas.

I think if all the projects planned, and being designed were

to really work well, the first thing would be to tar and feather those

damn pencil pushers and replace them all with new pencil pushers,

at least that way some of the trash in governemt would get a toss.

Hmmmmm, did I get enough of you out there to start thinking again?

 Hey Scott, up in DC, hi there, and to Smitty at AAA in New Mexico,

James Seidel is back in the saddle and playing in the sun and I am

doing it my way too.

 

 


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Comment
16 of 23
June 6, 2007

 Dale.

I can understand your frustration, we should all be hollering from the rooftop.

"Cut out the red tape and give us the green tape to forge ahead with a much needed solar programme"

Mike H. founder HYDROGENHEADS

 


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Comment
17 of 23
June 7, 2007

Maybe it is............

TIME TO TAKE OUT THE BIRCH ROD! :

 

THE BIRCH ROD IN THE CUPBOARD

Franklin D. Roosevelt in a 1932 speech

"I therefore lay down the following principle:

that where a community, a city, or county, or

district is not satisfied with the service rendered

or the rates charged by the private utility, it has

the undeniable right as one of its functions of

government…to set up…its own governmentally

owned and operated service…the very fact that

a community can, by vote of the electorate,

create a yardstick of its own will, in most cases,

guarantee good service and low rates to its

population. I might call the right of the people

to own and operate their own utility a birch rod

in the cupboard, to be taken out and used only

when the child gets beyond the point where more

scolding does any good."


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Comment
18 of 23
June 7, 2007
We need to scrap the residential part of the California Solar Initiative. In its place we need to intall a European style Feed In Tariff (Germany, Italy, Spain, France). The Europeans are so much more advanced in the Fed in Tariff issues. That way all residential users will be incentivized to put solar on thier homes and get paid 45¢ a kWh for each kWh they pump back in the grid. There whould be no hourly rate for residential home owners who manufacture solar power. Right now small solar users who install small solar systems get stuck with unfair high hourly rates. So a residential user wouyld have to install a 5kw or a 6kW system to completely cover his needs, and few can afford such an expensive system.
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Comment
19 of 23
June 8, 2007

I wanted to update you all on what I've learned in just the past hour from P.G.&E's S.F. H.Q. "A small but rapidly growing number of checks are now going out. They also are going to update the state-mandated web page they run, the one still showing no "completed" systems, to reflect the fact that checks are now going out.

I invite you all to join me to talk about this and other solar issues on saturday's Stardate Solar Hour. You can use www.stardatesolar.com to get to the show. Just click in and tune in at noon west coast time. My guests are Bernadette Del Chiaro, Renewable energy advocate for Environment California. And Clint Wilder,  Contributing Editor for Clean Edge, and Co-author, The Clean Tech Revolution www.thecleantechrevolution.com

I invite all members of the Renewable Energy Access community to join us.  


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Comment
20 of 23
June 8, 2007
Sounds like some good old ENRON ethical techniques, have not gone to waste.Time for the Govenator to step in?Out here in old M-ASS-A-Chew-Sits, the almighty Renewable Grant Bequeather, MTC Mass Technical Collaborate, has a good amount of red tape & hoops to jump through to be considered for their 30% grants, but they are getting some good public projects through.  Although MTC is virtually standing still compared with New Jersey.   Mass is supposedly tiring to be the Nations Leader (In their own minds) in Sustainability. I think if they got rid of the two pages worth of Fat Cat Board Members 31+, and just went with a Renewable Flat Tax Credit of 60% (the money available minus – the Fat Cat Board & Chair etc etc etc Members) twice as  many more real “Renewable” projects could be completed, especially in the home owner & real people sector. Does anyone remember the State & Federal TAX CREDITS (10% to 25% State & 45% Federal) available in the early 1980’s.  That system worked just fine (The Fat Cats, Utilities, & Politicians couldn’t get their hands on it). This system worked “For the People” this is what we all Need again.All in favor, Speak Up, Register to Vote, and Do It.

 


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Comment
21 of 23
June 8, 2007
FYI,  I am on my way to a PGE interconnection right this very minute.  We completed the job 1 week ago.  The customer will be able to generate and gain credit as of today.  We may not get paid the rebate for a while, but the customer is taken care of and selling power only 1 week after job completion.  I am not defending the robber barons, just clarifying the situation on the ground a little.
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Comment
22 of 23
June 9, 2007

Schwarzenegger Signs Legislation Fixing CSI "Flaw"
California Governor Arnold Schwarzenegger today signed AB 1714, which is designed to fix an unintended flaw in legislation passed last year hindering the California Solar Initiative (CSI). The program, administered by the California Public Utilities Commission (CPUC), has been touted as the best in the country. But issues with Time of Use (TOU) rates have slowed applications for residential solar systems significantly.

http://mailcenter3.comcast.net/wmc/v/wm/466B09E80003F280000072FB221656627697049F9F9AAC0902070B04079ABD020A0A9DB99C9C0A9D9B9D01B0?cmd=Show&no=53&uid=25638&sid=c0


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Comment
23 of 23
August 16, 2007

Hi Dale...

Just stumble upon your article and yes, it' been a wild ride this year. One very important point I'd like to make is that before the CSI some PV installers were selling systems that were too big, absurdly shaded, and very poorly installed systems. In Fresno I've seen roof mounted PV modules installed on wood, nylon ties used to bundle wires, cheap pvc conduit on the outside of homes, and systems that were shaded most of the day. 

The CSI, with all its flaws, is here to ensure the reputation of the industry. Remember back in the 1980's when Federal programs paid for most of the Domestic Hot Water systems? We had companies all over throwing up junk that eventually failed...sometimes in a very short time. The reputation of solar power (for most people there is no distinction between PV and DHW) suffered greatly and that bad taste in the public's collective mouth remained for decades and even now we are defending the durability of solar to too many people. 

So the CSI, in the longrun, will benefit the industry by weeding out the cheap installatiions and hopefully purging the solar "salesmen" and replacing them with solid solar professionals and knowledgeable solar consultants.

Cheerrs, 

 

John Richau

Design Consultant

Akeena Solar 


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