How Much Does SDG&E Pay for Solar Power? (2019)

In San Diego, most homeowners are now on a utility rate structure with local utility, SDGE, that is called “Time-of-Use”. With this rate structure, SDGE charges different rates for power use depending on the time of day, hence the name “Time-of-Use”. They also buy back excess solar power being produced by home solar systems based on those rates, so solar power is worth more or less depending on the time of day it is being produced. There are multiple Time-of-Use rate structures homeowners can choose from, all with different rates, so homeowners do have a choice they can make based on their electricity usage.  So when asking the question of how much SDG&E pays for solar power, the broad answer to this question is that the value of electricity -- whether you're buying or selling -- changes depending on the time of day. High electricity prices are only bad if you're buying; when you're selling, high electricity prices are good. So in order to understand how we got to this point - let’s look at the history of SDG&E paying for solar, how it has evolved, and the current rate structures used to determine payment. The History of SDG&E and Solar Power When it comes to how homeowners with solar installed are billed by the utility, Net Metering was the original arrangement. Originally established in 1996, Net Metering was created to reimburse solar homeowners for the extra power their solar generated and sent back to the grid. There have been several iterations of Net Energy Metering since then, but the core idea of selling extra power created by the solar during the day for credits to zero out the electricity usage at night has remained at the core of the current iterations. Note that in these early versions, all electricity prices were based on the "tiered rate structure" which means that the cost of electricity was based on the total amount (volume) you used for the entire month. For example, 0-350 kWh was priced at 12 cents/kWh and the next 150 kWh was priced at 18 cents/kWh and so on. But with solar --- as long as you produced the same amount as you used, your NET usage was low or zero and so your actual charge was little or nothing. When SDG&E starting charging for WHEN the power was used (instead of HOW MUCH per MONTH was being used), the solar net metering rules were changed to mirror SDG&E's charges throughout the day. Net Metering 1.0 (1996 - 2016) The original version of Net Metering, Net Metering 1.0, established the system by which homeowners could sell their excess solar energy back to the utility for credit. During the day, when the Sun is high and hitting a home’s solar panels, the solar panels create more power than the home is using. With Net Metering, that excess energy goes through the home’s electric meter to the energy grid, which runs the meter backwards, crediting that excess energy to the homeowner’s account at retail price. Later, when the Sun goes down and the solar is no longer producing, those credits accrued earlier in the day are used to purchase power back from the utility.  So this balance of creating extra energy and earning credits during the day, and then utilizing those to buy energy back later at night is what creates the “offset” which allows homeowners with solar to zero out their electric bills. Homeowners cannot make money from oversizing their system and receiving extra credits, it only allows for zeroing out charges. Under California’s State Net Metering policy, Net Metering 1.0 in SDG&E territory had a cap of 5% of total peak electricity demand. That cap was hit in 2016, after which the California Public Utilities Commission created Net Metering 2.0 to ensure that the solar industry would be able to maintain its momentum. So at the time, all homeowners who went solar in SDG&E territory went on Net Metering 2.0, of which, at the time, there was no cap.  Net Metering 2.0 (2016 - Present) Net Metering 2.0 was essentially the same as Net Metering 1.0 except for a few changes. The core of it, receiving retail rate bill credits, as in, per kWh bill credits, from the excess solar power equal to the rate of a kWh of electricity, remained the same. What was changed were three things: Time-of-Use rates, interconnection fees, and non-bypassable charges. While these changes were not estimated to make a significant impact on bills, (approximately $10 a month increase) it did have a temporary impact on the local demand for solar.  Interconnection Fees Under Net Metering 2.0, every customer who goes solar has to have a representative from the city come out to do an inspection on the installation and sign off on its activation. The fee for this is $132 in SDG&E territory, and is required for all residential and commercial installations. While a small fee, it is one of the main differences between Net Metering 1.0 and 2.0 Non-bypassable Charges Also included under Net Metering 2.0 are what are known as non-bypassable charges, which are per kWh charges that are built into rates. These are mostly insignificant, 2 - 3 cents per kWh, and they go to low-income, customer assistance, and energy efficiency programs. These don’t add a huge amount to the bill, but are still there and should therefore be considered. Time-of-Use Explained With Time-of-Use, electricity costs different amounts depending on the time of day it is being used. This is due to the demand for power being different at different times of the day, and therefore SDG&E has to charge more for when there is a higher demand. These prices also apply to excess solar energy being sold back to SDG&E for credit, as in, when the excess energy is being created affects the amount per kWh SDG&E will pay for it.  You can compare Time-of-Use Rate structures to buying a ticket from an airline -- the ticket prices are variable. When they have a lot of inventory, they cut the price. When there's a Super Bowl in Atlanta and everyone wants to fly there, ticket prices go up. At least with SDG&E, they tell you ahead of time when the prices are highest: from 4pm to 9pm in the summer months, M-F. And also when they are the cheapest: from midnight to 6am. And this is true whether you go solar or not. You always have the opportunity to use less power from 4pm - 9pm and use more power overnight, if you can adjust your habits accordingly.  If you have solar, you will almost always be making more power from 9am - 4pm on most days; which means you'll be buying less from SDGE and maybe be selling more back. In order to offset the power you use from 4pm-9m, you have to make (sell) twice as much during the middle of the day, because the value (price) of the electricity doubles after 4pm (or, conversely, is worth half as much from 6am-4pm, M-F. There are multiple Time-of-Use rate structures to choose from, but the common thread amongst all of them is that there are three price periods in a day:  On-peak, when the demand for electricity is highest and prices are highest - typically in the late afternoon / evening.  Off-peak, which is when the demand is less high and prices are in the mid range - typically during the day. Super Off-peak, when demand is low and prices are low - typically at night. Prices for all these categories also differ between Summer and Winter months. So every TOU structure has different prices based on time of day and what time of year it is. They also have different terms that go along with them. Which structure you choose is based on a number of factors, including whether you have an electric vehicle or not.Time-of-Use in SDGE 2019 While Time-of-Use in SDG&E has been around for over a decade, as of March 2019, SDG&E has been switching thousands of their customers over to this new rate structure in hopes of switching all their customers over eventually. There are different types and tiers of Time-of-Use rate structures, and depending on when you installed your solar, you are subject to different options as to which one you want to transition to: Homeowners in SDGE territory whose solar was activated before June 29, 2016 can stay on the Net Metering 1.0 Plan until the 20 year anniversary of their solar Homeowners in SDGE territory who received their solar PTO before March 30, 2018 can delay the change to TOU until either five years from the date of their solar installation or in June 21. SDGE Customers who received PTO after March 30, 2018 are already on a Time-of-Use Plan Using Solar + Storage to Offset Peak Time Installing solar and accompanying it with battery storage is a great way to make the most out of your solar system and get around SDG&E’s on-peak charges. While the Sun is high and the solar is producing excess power during the day, the battery is charged with the extra power. So instead of selling that extra power back to SDG&E at the off-peak prices, it is being produced and then saved for later to be used when pulling from the grid is at on-peak prices.  That makes the value of the excess solar power worth more, and therefore, you will ultimately have to pull less power at on-peak prices and will save more money. 2019 SDG&E Rate Structures and Prices So when asking: how much does SDGE Pay for Solar Power? The answer is dependent on what Time-Of-Use plan you are on, what month it is, and what time of day it is.  Listed in the graph below are the prices for power by kWh, and therefore excess solar power, under the different plans. Remember, the Summer Period is between June 1 - October 31, and Winter is between November 1 - May 31. All of these rates are effective June 1, 2019.You should know that with TOU-DR, there is a baseline adjustment credit, which brings the rates down. Our energy consultants at SunPower by Stellar Solar recommend it for this reason.Note that we're explaining all this so you know how the rates are calculated but the bottom line is that you can work with your solar specialist from SunPower by Stellar Solar and they will advise you about how much solar you need to minimize your SDGE bill. So there you have it, the current rates for what SDG&E charges for power, and also credits for excess power generation from solar. You can see from these charts that rates vary widely based on rate structure, time of year and time of day, and they are likely to change again soon. If you’re looking to learn about what rate structure works best for you, feel free to contact us to speak to one of our energy consultants today.

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20 Years of altE Store – Part VII

41 Years of Real Goods   In August of this year altE acquired Real Goods, the original purveyor of off-grid living supplies. altE’s founding CEO, Sascha Deri, commented, “As a teenager I remember reading the Real Goods catalog and Solar...
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San Diego Solar Rebates: Are They Real?

You’ve probably seen the ads. They read like: “San Diego Solar Program” or “San Diego Solar Rebates”, or “No-cost solar Program in San Diego”. If you’ve been in the market for solar, they’ve likely shown up in your Facebook feed, as banner ads, everywhere you go on the internet. These types of programs seem official, so as a consumer, you may ask yourself: are these types of solar rebates in San Diego real?  The truth is, that no “San Diego Solar Rebates” exist, and the claims that there are such rebates and programs are false. They are typically marketing scams meant to collect your information by lead generation companies, that then sell your info to solar companies for compensation. What Government Solar Programs Actually Exist The Federal Solar Tax Credit There are just a few ways that a government agency will give you some money back when you buy solar, which makes solar even more affordable. The main one is the 30% Federal Solar Tax Credit, which is the main government incentive for installing solar, where if you install solar, you can receive a tax credit worth 30% of the cost of your solar installation. Unfortunately, that Tax Credit is phasing out after this year, by 4% over the next three years before it goes away completely for residential installations in three years. It will stay around at 10% for commercial installations. California Solar Initiatives (CSI) There are a number of solar initiatives through the state of California that are available to low-income households. Specifically, there is the SASH program that provides upfront rebates for single-family, low income homes to help more low income families go solar. The program was scheduled to be sunsetted in 2015, but was recently extended to 2021. The program, which is executed by Grid Alternatives, has already installed systems on over 5,200 homes in California.  Another solar initiative at play in California is the Multifamily Affordable Solar Housing (MASH) program, which provides incentives to offset the initial cost of installing solar on multi tenant housing projects in California. Since its inception it aided in completing 358 solar projects throughout the state, equaling out to around 23.6 megawatts of electricity. Unfortunately, the funds allocated through this program for SDG&E are exhausted, but still exist for PGE and SCE territories. So those are the only programs that exist: you have the 30% Federal Solar Tax Credit, and you have the California Solar Initiatives, and that’s it. No other programs exist, and no other are planned for the future. There is the California mandate that every new home built after 2020 must have solar, but other than that, there are no city specific solar programs or rebates, and any advertisement that claims to have a signup for such a program is false. Deceptive Advertising So now that you know what the actual rebates are in California, you can spot the often used deceptive advertising used in solar marketing. Many ads that you see on Facebook, or in banner ads on websites, will often be designed and worded to look like they are paid for by the government. The ad will say something like: “San Diego Solar Rebates Expiring Soon: Claim Yours Today”. Often times, the landing page or website itself will be designed in a way that makes it look like an official government website - or some form of awareness program. This often leads consumers to believe that they are signing up for something that is an actual government program - when in reality they are likely submitting their information to a solar lead generation company that will distribute their information to several solar companies in exchange for money.  Let’s look at some examples of these kinds of ads and landing pages to see what techniques they are using to lure people in.  “2019 Zero Down Solar Program” This is deceptive with its use of the word “program”. This implies that it is a government funded or instituted program, when no such program exists. Zero down solar is a common way that solar companies finance systems, where the customer does not have to pay anything upfront when financing the system.  “2019 $0 Solar Program” Similar instance here. This goes even further though, implying that the solar literally costs $0.  “Solar Program Finder” Again, this emphasis on “program” makes it sound like this is a government mandated program - it’s just another way to get you to fill out a form.   Here’s a good example of what some of these ads may look like:The common thread, as you can see, amongst all of these, is that the advertisers’ use language that makes it seem like they are not advertising to you, but they are informing you of a program. While there are certain state programs, as we have explained about the California Solar Initiative, they are mostly only for low income homes, and are in the form of rebates. There is no government zero down solar program, no matter how official the ads look.  Other Warning Signs of a Bad Solar Company Like we said before, it is typically solar lead generation companies that are creating these deceptive ads about fake government solar programs. When they get your information, they will then distribute it out to several companies, who will all bombard you via calls and emails. Often homeowners who submit their information to these types of companies aren’t even aware that it is being distributed, and are often deceived into believing they are signing up for a government program. That’s why it is extremely important to research whatever company you are submitting info to. Here’s a couple of things to look for and validate before submitting information to any solar company or solar “program” Scammy Company Names: Companies with very generic names are typically ones to look out for. “San Diego Solar Company” or “San Diego Solar Program” are examples - you should be skeptical of any company that has an overly generic name. While not always true, it's generally a good indicator that you should at least do more research about the company. Skimpy Social Media Profiles: A good indicator of the legitimacy of a company is their social media presence. If they’ve got little to no followers or posts on their Facebook page, or don’t have one at all, you should probably be skeptical. Skimpy Websites: Before you fill out a form anywhere, make sure you check out the website of the company asking for your information. If it is a one page website that is extremely generic, or you can’t find information about the history of the company or anyone who works there, you should be skeptical. Bad or No Reviews: This is an obvious one, but you should check out Yelp and Google Reviews to make sure that the company is legitimate and doesn’t have a ton of bad reviews. If they’re not on these platforms, or have overly bad reviews, you should probably steer clear.  No other presence online: If you Google the company and they don’t have at least 10 listings on local directory sites, you should be skeptical. Any real and respectful company will have a presence online larger than just their website and social media.  So if you’ve been wondering about advertisements you’ve been seeing regarding “San Diego Solar Programs” or “San Diego Solar Rebates”, know that these are deceptive claims - and that no such programs exist. These are simply ads designed to get your information and distribute it to as many companies as possible. It cannot be stressed enough that, before submitting your information to any company or “program”, that you should do your due diligence and know that you are submitting your information to a real, legitimate company.

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Solaria Vs. SunPower Solar Panels (2019)

When doing your solar research, you may come across Solaria solar panels. Founded in New Mexico in 2000, this company has been around for awhile and as a result many local solar companies install their panels. When comparing solar panels, you may consider installing Solaria panels as a cheaper alternative to a premium panel. Is this a wise decision? Well, if you’re looking for a higher efficiency panel that produces more power for longer, with a better warranty and backed by a solid company, SunPower panels are for you. Let’s look at the details of these facets to see just how much better SunPower panels actually are. Solaria Solar Panels Efficiencies Solaria has a variety of both commercial and residential solar panel models, but for the sake of this blog we will look at just the residential models.So there efficiencies range from 19.4% for their 350 watt models, up to 19.9% for their 360 watt models. Let’s see how these compare with the top SunPower solar panel models. SunPower Solar Panel Efficiencies SunPower has a wide variety of solar panels options that range from 335 watts up to 425 watts. Let’s take a look at some of the more popular X and A Series SunPower Modules to see how they stack up against Solaria.So as you can see, the SunPower solar panels X and A series solar panels, even the lower wattage ones, have a higher efficiency than the most efficient Solaria panel. Even their 360 watt panel only comes in at 19.9% efficiency, compared to SunPower’s lower-wattage 335 model. Since these panels have a higher efficiency, they can produce more power with less roof space, so if you’re trying to maximize your roof space to produce the most power possible, you’ll want to choose SunPower panels. To visualize the difference between SunPower efficiencies, and Solaria efficiencies, see the chart below:Power Guarantees Every solar panel naturally produces less power over time. This occurs for a number of reasons, but how much efficiency a panel loses a year is a big part of what determines its overall quality. Most solar companies have a power guarantee that is included in their product warranties, which guarantees that the panel will not lose more power production than a certain percentage over a 25-year period. Let’s look at the power guarantees of both Solaria and SunPower panels to see which warrants more production over time. Solaria Power Power Guarantee If you look at Solaria’s product warranty, you’ll find that they warrant that power degradation will not exceed 2% in the first year, and .5% every year after, ending with 86% in the 25th year after shipment. So that’s about a 14% power degradation over 25 years. That means that in the last few years of the warranty, the solar panel will be creating at least 10% less power than when they were originally bought. SunPower Power Guarantee If you take a look at SunPower’s product warranty, you’ll see that they warrant that their panels will not lose more than 0.25% efficiency every year. So that means at the end of 25 year warranty period, they panels will only lose 8% of their initial efficiency compared to Solaria’s 14%. So that means that SunPower panels lose 6% less efficiency than Solaria panels, and therefore will create a lot more power in the later years of the warranty. You can see here the difference:So if you’re looking to get the most power out of your system, SunPower panels clearly produce more power for longer, especially the A-series, which produce almost 60% more energy at year 25 of operation than conventional panels. Solaria Vs. SunPower Warranty A warranty on your solar panels is extremely important as it determines how much you will be able to rely on your solar company to keep your system up and producing. One thing to be noted when talking about warranties is that with most solar companies, every part of the system - the panels, racking, monitoring, are under different warranties as most of the time, each of these elements are made by different companies. Installing Solaria would get you that. Yes, you would have a warranty on your Solaria panels, but not on any other elements of the system. With SunPower, every part of the system is warranted under one warranty. That’s because all the elements SunPower systems are made by SunPower - from the racking to the panels. So if any part of the system goes wrong, SunPower has your back.  The Solaria Warranty Let’s take a look at Solaria’s warranty to see what is included. Their product warranty is for 25 years from the date of shipment. That only includes the panels, and basically warrants that production will not decrease by more than 2% in the first year, and 0.5% in the years after.  If the efficiency drops below that, the company will come out and replace the panels. This warranty only covers the solar panels, and does not include the racking, microinverters, or any other part of the system. So if anything other than the panels malfunction, then it will not be covered under the warranty.The SunPower Warranty As we have said, with the SunPower warranty, every aspect of the panels is covered by the warranty. For 25 years, the panels, microinverters, racking and power production are all covered. For 10 years, the monitoring hardware is covered. This coverage is among the most comprehensive in the industry, with a record breaking .25% a year power loss warranty, so if power degradation goes above that, SunPower will replace your panels. SunPower will also ship any new parts needed for replacing any damaged parts to this system for free.Company Health The other aspect of a warranty that needs to be considered when researching solar is the health of the company you are buying from - as a solar manufacturer that goes out of business cannot fulfill the stipulations of the warranty they sell. What we know about the solar business is that many companies, both manufacturers and installers, have come and gone since the beginning, and with the ups and downs in the industry that come with government incentives coming and going, there doesn’t seem to be an end in sight for that pattern. So choosing a manufacturer that will be in business that is financially healthy, and therefore will be in business for the long run, is now as important as ever. When you look at SunPower’s financial health, they have been on solid ground for quite a while. SunPower is a public company and its present market cap (value) is $1.9 billion with 6,600 employees. Also, while the company’s stock did bottom out around 2017, it has gone up over 100% in 2019 alone. So clearly, professional investors are optimistic about SunPower, and with their brand being internationally associated with quality and high efficiency, you can rest assured that they will be around for the long run. While it is hard to find financial information on Solaria as they are a private company, they did publish a press release recently that states that they are now subcontracting out the production of about half their panels to a Chinese company called Shingsung E&G’s. So Solaria as a manufacturer is now not even producing half of their panels. That is an indication that the company can not handle the scale of production required to keep up with the demand, which is an indicator of unhealthy financials and management. So as you can see, when comparing SunPower and Solaria solar panel systems, SunPower panels have better efficiency, less power degradation, and a better warranty that is backed by a healthier company. So homeowners who are looking to get the most power out of their roof for longer, and a system that has all elements of it warranted by a financially stable company, should choose SunPower. Contact us today if you’d like a quote on aSunPower system for your home.  

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20 Years of altE Store – Part VI

The History of altE U   They say knowledge is power. Never were the two so analogous as when altE taught classes on the design and installation of alternative energy systems. For Sascha Deri, CEO and co-founder of altE, education...
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What is the Average Size of a Solar Installation in San Diego County? (Study)

When homeowners in San Diego County start doing their solar research, a common question they have is: What is the average sized solar system in their area?  This is a complex question, as the average size of a solar installation in any given community is based on a number of factors including: median home value in that area, distance from the coast, density of homes in the area, etc. Despite the complexity of this question, we wanted to attempt to address it. But instead of looking at San Diego in general, we looked at 20 of the top solar municipalities in San Diego County, and, by tapping into our database of over 10,000 installations, we calculated the average system size (in kW not number of panels) for each of the communities. We also looked at how average home values and distance from the coast correlated with system sizes, to see how influential those factors were.  What determines the size of a solar system? Before we begin, we have to define the term “size” when it comes to solar systems. When we talk about the “size” of a solar system, we are not speaking about literal physical size - we are talking about electrical rating or output in kilowatts; however, sometimes a higher output system will also be physically bigger. But since modern panels produce more kW per panel than older ones, a physically smaller system (in square feet or  number of panels) can now create the same amount of electricity (in kW) as older systems that simply take up more space. So just because a solar system is physically “bigger”, doesn’t mean it has a larger electrical rating in output. Our Methodology Our methodology for this study was simple: we took our database of thousands of installations throughout Southern California and sorted them by the number of installations we have completed in that area. We then calculated the average of all the installations in the area.We also used data from Zillow on the average value of homes in each of these areas, and sorted them by that number. So, as a disclaimer, this data is based on our own customer data, not data from all solar installers in the area. For this reason,  the data may not be completely universal. Our Assumptions Many critics of solar energy say that solar panels, due to their cost, are only a good solution for wealthy homeowners. If these critics are correct, you would expect that the higher the home value, the larger the solar energy system. However, we've sold a lot of solar to all areas of San Diego County and to all demographic groups. What we ourselves would expect (based on our experience) is that the farther the community is from the coast, the higher the electric bill and therefore, the larger the system size. Let’s take a look at the data to see if it backs up those assumptions. Our Findings Our findings somewhat surprised us and defied some of our expectations - but when you look at the different factors at play, mostly make sense. We ordered the cities in ascending order by home values, to get an idea of any correlations that exist in size as home values go up.The average system size in San Diego County is 7.49kW, or 23.4 panels. The range is large between municipalities like Santee and Rancho Santa Fe, but you can see that most cities have an average of around 6 - 8.5 kW and 20-25 panels. So as you can see, there isn’t a very strong correlation between system size and median home value, that is until you get to the $2,000,000+ range, where both the system size in kW and home value spike. There is a little bit of a correlation when it comes to inland cities like Poway and Jamul that lie in the $600,000 - $700,000 range but other than that, system sizes are mostly consistent, between 6 and 8.5kW. You can see with high value real estate cities like La Jolla and Coronado, that are close to the ocean, that home values do not really correlate with bigger systems. Average System Size in kW vs. Distance from Coast The other assumption we had going into this study was that distance from coast and system size would correlate. Let’s take a look to see if that assumption was correct. So, as you can see, there does appear to be a correlation between distance from coast and system size, especially as home values go up. In Poway and Jamul, which both are in the medium-high range of average home value, and are also over 15 miles from the coast, you see the strongest correlation. You can also see the correlation in the Ramona and Santee areas although they are on the lower end of average home value. The only oddity here is the spike at 5.8 miles, but that is because that distance represents Rancho Santa Fe, which has the highest home values of all the municipalities. Takeaways Clearly, very large homes have big energy footprints no matter where they are located (La Jolla or Rancho Santa Fe) and very large homes usually cost more. However, because land is cheaper further from the coast, such as in Jamul, people tend to build larger homes there and also have added land to build larger ground-mounted systems. It makes sense then that, as we saw from the data, that system sizes spike in areas where the home values are higher, as well as being further from the coast. There isn’t much of a correlation with just home values because homes near the coast that aren’t as large and don’t use as much energy as the inland large homes may be just as or more expensive than those large homes with big energy demands. The point being that solar can work for everyone, but is especially beneficial to those with larger homes that live inland. What should be noted as well is that these are averages, and the range of system sizes within each of the municipalities is relatively wide. Just because there is an “average” system size for any given municipality, these averages should not serve as an indicator as to what your system on your home will be - as every home is different and there is a wide range of home sizes in every municipality. To know for sure what your system size will be, you need an energy consultant to work up a quote for you. If you’re interested in what size system you will need for your home - contact us today and one of our energy consultants will reach out.  

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