Green Real Estate Appraiser

Power Shift – Utilities Want Consumer Protections Removed

Posted on July 19, 2013 | Leave a comment

California is reconsidering landmark consumer protections and energy conservation measures that were written into residential utility bills during the state’s 2000-2001 energy crisis.

State lawmakers and utility regulators are preparing to restructure utility bills for more than 23 million residents.

In San Diego, proposed changes are likely to spread the pain of pending rate increases to more customers and provide relief for big users of home electricity. They also may usher in an unpredictable era of time-based pricing, in which bills hinge on electricity use during a few hours of the day.

Do you pay over $150 a month for electricity? You may want to consider making your home more energy efficient and adding solar. Will this add value to your home? Contact the appraisers at www.scappraisals.com for your value questions.

San Diego Gas & Electric views current rates for high-end users as unsustainable and unfair, warning those customers of pending rate hikes last month in a tailored mailing.

Current rates reward conservation by stepping up the price per kilowatt hour for those who use the most in any given month. The arrangement accentuates the savings from green home investments such as energy-efficient windows and light bulbs to rooftop solar arrays.

And all customers are afforded a modest monthly allowance of electricity at below-cost prices.

The price for that allowance has been frozen or capped since the state’s energy crisis, in which market manipulation triggered rolling blackouts and wild wholesale price fluctuations.

Over time, the discount has thrust cost increases for bundled electrical service disproportionately upon large users of home electricity.

The imbalance is set to tip further in September for utility customers in San Diego and southern Orange County, when San Diego Gas & Electric begins the delayed collection of a roughly $500 million revenue increase for the 2012-2015 period.

The trend, regulators and electricity retailers warn, could ultimately threaten the ability to recover revenues to maintain infrastructure and fulfill energy-policy mandates.

Do Rebates Make Solar System a Wise Investment

Posted on July 18, 2013 | Leave a comment

Erika Schweickert of Capital City Solar in Rocklin, Calif., has seen a surge the past couple of years in customers interested in investing in solar energy systems for their homes.

A solar energy system can significantly reduce — and in some cases eliminate — your monthly electric bills. Photovoltaic, or PV, solar systems work by converting sunlight that hits solar panels on the roof directly into electricity through an inverter attached to the house.

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“Some people do it to be green, but 90 percent of our customers are doing it because of the financial payback,” Schweickert said.

Kent Crook has spent 30 years working as an electrician as the owner of Wiremasters Electric Inc. in Miami, but for the past five years has built a business as Mr-Solar LLC. He’s sold on solar as a solution to our dependence on fossil fuels.

“It’s going to change the way we live,” Crook said. “We’ve got to do something with foreign fuel, with the carbon we put in the air. I feel solar is not the (only) solution, but it’s one of the solutions to help with these things.”

Solar systems have become much more affordable in recent years. Photovoltaic prices are determined by watts, with the national average about $3 a watt, nearly half of what it was in 2010. Add to that a 30 percent federal tax credit available for residential solar panel installation good through 2016, plus a variety of rebates and incentives offered from local utilities, and it makes the investment significantly less. Systems can range in price from a few thousand dollars to $50,000 before credits, incentives and rebates kick in, depending on the manufacturer and how many panels are installed.

“There’s not a better time than now to put it in,” Crook said.

In most states, home-owners with solar photovoltaic systems can sell back extra energy they don’t use to their local utility companies. In the arrangement, called “net metering,” customers earn credits for excess solar energy sent to the utility provider’s electrical grid from their house.

The number of panels homeowners need depends on their energy consumption and the amount of daylight the home receives. Ideally, panels should be installed on the south-facing side of the house.

If you’re thinking about adding a solar system, be sure to research the products and installers before you invest. One reason prices have fallen is because of a glut of manufacturers producing the products. Both Schweickert and Crook said quality of the panels can vary greatly, as can the quality of the installer.

Disclaimer: for information and entertainment purposes only

Want Solar but Can’t Afford-Leasing May be a Good Option

Posted on July 17, 2013 | Leave a comment

I’d like to buy a solar electric system but am not sure I can afford to purchase one. Is leasing a system a better option?

I hear this question a lot. Solar electric systems have never been more affordable than they are right now, thanks to record-low module costs, generous federal tax incentives and financial incentives offered by many local utilities. Even so, out-of-pocket costs for a system that would meet the needs of a family of four for at least 30 years could run as much as $15,000 to $25,000 — or even more, depending on available incentives and the household’s annual energy consumption. Not surprisingly, a price tag like that creates sticker shock in a lot of potential customers.

Will a leased system affect the value of my home? Contact the appraisers at www.scappraisals.com for your home value questions. What happens if you want to sell your home?

Don’t despair! For those who can’t afford the upfront cost of a solar electric system, one option is to secure a loan so that you can make monthly payments. In some cases, this option can result in payments lower than your current monthly electric bill. And, as you suggested, solar leases can be another good option.

You could potentially lease a solar electric system from any third party, but it would typically be from a company that specializes in solar leases. Two such companies are SunRun and SolarCity, but you’ll want to search online to find what’s available in your area.

In general, two types of solar leases are available. The most common is an operating lease. In this case, the third party (the lessor) installs the system at its expense and is therefore considered the owner of the system. It receives all the tax benefits, such as the current 30 percent federal investment tax credit, and local utility rebates, if any. The terms of lease agreements vary considerably and are often tailored to the finances of the homeowner or business owner (the lessee). Some operating leases require no upfront payment, while others require a small down payment. The cost of maintenance and component replacement may fall on the shoulders of either the lessor or the lessee.

Disclaimer: for information and entertainment purposes only

Power Shift – Utilities Want Consumer Protections Removed

Do Rebates Make Solar System a Wise Investment

Want Solar but Can’t Afford-Leasing May be a Good Option

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