What the Japan Quake Means for Your Energy Costs
    Thursday, November 17th, 2011 Solar Energy and Solar Power Systems Blog

    What the Japan Quake Means for Your Energy Costs

    Executive Minute #16

    Japan is still being rattled by the March 11 earthquake — and so is the rest of the world economy. In addition to the appalling toll in lives and property, Japan lost 7% of its electricity generating capacity, resulting in rolling blackouts, interrupted factory operations and disrupted transportation services.

    Japanese utilities have already increased purchases of coal and natural gas from the U.S., Russia and Australia – thereby impacting world energy markets. Consumers worldwide, meanwhile, are dealing with the psychic damage of witnessing a modern society suffer unspeakable damage, followed by the silent danger of radiation from the Fukushima nuclear plant. As a result, older nuclear plants worldwide will be retired, and plans for new plants are already facing more regulation and opposition.

    The price of traditionally generated electricity will certainly increase.

    Consequently, the already high interest in green renewable power is now soaring. Companies that consume large quantities of electricity, or depend on steady supplies, will demand safer, more sophisticated systems that can deliver after the grid goes down. This puts solar in a prime position for growth.

    The challenge? Earthquake-related damage and disruptions are also affecting solar cell and module production in Japan, possibly leading to higher prices here. That’s why we’re continuously monitoring the global solar market and multiple suppliers to help our customers meet their solar-energy needs.

    At SunGreen Systems, our thoughts and wishes are with the people of Japan. At the same time, we’re helping build a brighter, greener tomorrow.



    Global Events and Why Businesses Need to Go Green
    Friday, October 14th, 2011 Solar Energy and Solar Power Systems Blog

    Global Events and Why Businesses Need to Go Green

    Executive Minute #15

    Over the past few weeks, we’ve seen events in the Middle East impact the daily cost of running a business here. While America’s economic recovery is picking up steam, soaring oil prices now threaten to derail it. Of course, growing economies often increase oil demand (as we predicted in an earlier Executive Minute), but this year, oil price increases have far outpaced demand.

    Fortunately, there’s something we business managers can do about it — but we have to do it together: replace fossil fuels with clean, safe, renewable and predictable energy sources, such as solar and wind. This isn’t science fiction or wishful thinking; it’s something we can start doing now.

    Let’s begin with our own offices. According to a recent article in the Harvard Business Review, urban buildings consume 40% of the world’s energy, and that consumption can be reduced by up to 75% with readily available techniques, from LED-lighting to weather sealing. Obviously, we at SunGreen Systems have our biases and vested interests, but we endorse all kinds of green practices, even if it means planting grass on your rooftops instead of solar panels.

    As the HBR article noted, most of us would jump at the opportunity to reduce our mortgage payments by 25%, even if it required upfront refinancing fees. But we’re reluctant to make the same kind of investment in energy savings. Perhaps oil’s continuing rise will make more of us realize that green energy isn’t just good for the environment, it’s great for business.

    We’ll keep you posted on new, smart ways to go green in future issues of the Executive Minute.

    Until next time, stay sunny!



    Putting E-Books to Work for Your Business
    Friday, September 16th, 2011 Solar Energy and Solar Power Systems Blog

    Executive Minute #14

    Putting E-Books to Work for Your Business

    At SunGreen Systems, we love cutting-edge technology, and not just solar. As frequent travelers, we closely follow mobile-tech developments – but even we couldn’t predict the popularity of digital books. Yet suddenly, e-readers and tablets (like Apple’s iPad, Amazon’s Kindle and Barnes & Noble’s Nook) are the must-have electronics.


    So the question for all you tech-savvy executives: are you on board yet – not just for your reading pleasure, but for your business?


    To reach hundreds-of-thousands of avid e-book readers, your company can now publish its own e-books ( Kindle’s direct publishing service is one option). We envision corporate-branded product manuals and reference books on everything from fashion to cooking to auto repair, all featuring a company brand.


    It’s both advertising and useful content wrapped in one digital package.


    Any interest or profession can be catered to through branded e-books, which you can sell or give away. If they’re reference books, readers will turn to them again and again, creating more brand impressions and a positive feeling toward your company.


    Environmentally speaking, we could debate how green it is to replace dead-tree paper with plastic/metal/glass devices. But that point may be moot since the market is going digital. As for all that electricity e-readers consume? Well, we’ve got a green solution for that


    Until next time, stay sunny!




    Energy-efficient homes seem to sell faster, fetch higher prices
    Thursday, September 8th, 2011 Solar Energy and Solar Power Systems Blog

    Some research projects in California, Oregon and Washington offer hints that energy efficiency and sustainability certifications for homes may result in easier sales and higher prices.

    Energy-efficient windows

    Window film is applied to a dining room window in Los Angeles. The film will cut down on the heat from outside so less energy is needed to cool the house. (Anne Cusack / Los Angeles Times)
    By Kenneth R. HarneyAugust 28, 2011

    Home energy efficiency and sustainability have been major policy priorities for the Obama administration, but lurking in the background are two consistent questions: Beyond the documentable savings on utility bills, do such steps add to the resale value of a home? And do they make it easier or faster to sell your property?

    Housing groups and housing officials say that definitive statistical data covering multiple regions of the country are scarce. But some localized research projects in Oregon, Washington and California offer promising hints.

    In a study covering existing and new houses sold from May 2010 through April of this year, the Earth Advantage Institute, a nonprofit group based in Portland, Ore., found that newly constructed homes with third-party certifications for sustainability and energy efficiency sold for 8% more on average than noncertified homes in the six-county Portland metropolitan area. Existing houses with certifications sold for 30% more.

    The raw sales data in the study were provided by the Portland Regional Multiple Listing Service. “Certified” houses were defined as those carrying Energy Star or LEED for Homes designations or Earth Advantage home certifications. (LEED stands for Leadership in Energy and Environmental Design.) The latest study was the fourth in an annual series conducted by Earth Advantage, each of which has shown clear price premiums for certified houses.

    But officials caution that using average sales prices pulled from MLS data without trying to measure “comparable” homes against one another directly may not be conclusive. For instance, newly constructed certified houses may be more expensive to start, and existing certified homes may be larger and more likely to be in higher-cost neighborhoods where homeowner adoption rates for energy-efficiency measures are higher.

    Nonetheless, said Dakota Gale, Earth Advantage’s manager of sustainable finance, looking back at four years of studies, “we can still see a consistent trend that third-party certification continues to result in a higher sales price, even during the past year when home sales were down.”

    A study conducted two years ago by the institute in Seattle and Portland identified what may be another plus: Homes marketed with energy-efficiency certifications appear to sell faster on average than those without. The study tried to come up with rough comparability in appraisal terms between certified and noncertified properties, and it found that in Portland, certified homes spent 18 days less time on the market after listing than noncertified counterparts. In both Portland and Seattle, researchers documented price premiums — 9.6% in Seattle, 4.2% in Portland — in a statistical analysis with a 95% confidence level.

    A recent study on houses in San Diego and Sacramento published by the National Bureau of Economic Research took a different tack: When you install photovoltaic solar panels on your roof, how much do you get back in market resale terms, beyond monthly energy savings?

    Researchers examined a sample of home sales in the $500,000 range in both metropolitan areas between 2003 and 2010 and found that, on average, solar panel installations cost owners $35,967. But with federal and state subsidies, the net average cost came down to $20,892. This net expenditure, in turn, yielded an increase in appraised value by $20,194 — a 97% rate of recovery on the investment.

    Though less than 100%, the rate is much higher than most home improvements in the most recent “Cost vs. Value” study conducted by Remodeling magazine — well above major kitchen and bathroom renovations.

    Kevin Morrow, senior program manager for green building at the National Assn. of Home Builders, says that although many newly constructed homes come with energy and sustainability certifications, banks don’t necessarily recognize their value when it comes to providing mortgage money.

    For example, bank underwriters often do not include reduced monthly utility costs in the household income/household expense ratios that affect the maximum mortgage amounts available to buyers.

    “The case needs to be made” to lenders, he said, “that, hey, these houses will cost less to operate, so they should be worth more.”

    Morrow added that appraisers are part of the issue as well if they don’t have the training to recognize and credit extra value to houses that have money-saving solar installations, geothermal heating and cooling, Energy Star appliances, water conservation features and other green improvements.

    The Appraisal Institute, the largest group representing that industry, says it has sponsored “green” appraisal courses for 2,300 appraisers during the last two years. It says it strongly supports efforts to better incorporate energy and environmental factors into mortgage underwriting and home valuations, including a possible congressional mandate requiring it.

    kenharney@earthlink.net

    Distributed by Washington Post Writers Group.



    How To Bill The Midnight Oil
    Monday, August 29th, 2011 Solar Energy and Solar Power Systems Blog

    Executive Minute #13

    How To Bill The Midnight Oil

    Working overtime is a good sign, since it means you’ve got more business than you can handle during regular hours. The issue: “burning the midnight oil” means incurring extra costs — even if you’re using alternative energy instead of oil. In addition to utilities, you might incur additional labor costs, materials and even indirect costs, such as security and wear-and-tear.

    Many companies simply allocate those costs (particularly indirect ones) to general “overhead.” There’s a smarter approach: allocate ALL costs to the products or clients that incur them. This includes all regular production costs, not just overtime.

    Let’s say you have a huge order that requires extra shifts. Most companies include the added labor in the cost of goods sold — but forget to include related expenses like utilities. Indeed, were they to wisely invest in a solar energy system to compensate for the extra utility load, at least part of that investment should be allocated to the client or product that made it necessary.

    Granted, it might be difficult to charge certain clients for all the expenses of serving them. But by allocating costs in this way, you can see which clients are most profitable, and which are actually causing you to lose money. Smart growth means knowing how much that huge deal really costs, and saying “yes” only to those actually help you grow and aren’t just making you busier.

    Until next time, stay sunny!



    Green jobs gaining traction in California
    Monday, August 15th, 2011 Solar Energy and Solar Power Systems Blog

    Green jobs gaining traction in California, but more jobs needed in all sectors

    By Kevin Smith, Staff Writer
    Posted: 08/06/2011 07:09:37 AM PDT

    A worker for Verengo Solar installs solar panels on a home in Whittier. (Photo courtesy Verengo Solar)
    A new report by the Environment California Research & Policy Center says more than 500,000 people are employed in “green jobs” in California, and that number is expected to increase.
    More than 500,000 people are employed in “green jobs” in California and that number is expected to ramp up in the coming years, according to a report released last week.The Environment California Research & Policy Center report, “Building a Clean Energy Workforce: Preparing Californians for New Opportunities in the State’s Green Economy,” additionally documents nearly 300 green job training programs at more than 130 institutions throughout the state.

    Those programs have as many as 15,000 students enrolled annually, the report said. Bernadette Del Chiaro, the center’s director of clean energy programs, said green jobs are giving the economy a boost.

    “Thousands of Californians are seeking refuge from the recession via the growing green energy economy,” she said. “Job training programs are a critical engine for developing the work force needed to achieve the state’s environmental goals.”

    That may be true. But some, including economist Christopher Thornberg, figure there’s some wiggle room in defining exactly what a “green” job is.

    What is a green job?

    “Who the hell knows what they classify as a green job?” Thornberg said. “That’s what it boils down to. There are very few jobs you could say are truly green – maybe a solar panel installer … but who else?”

    The report says that the skills required of a worker in a green job often overlap with those needed for more traditional occupations.

    Many workers can transfer their existing skills to a new green job, the study said, if they receive specialized training to fully take advantage of opportunities.

    Electricians, for example, must perform many of the same steps when working in an efficient building as in a conventional one. But they must also be aware of the building’s overall energy usage and avoid compromising its insulation or allowing air to leak in.

    Likewise, a mechanic servicing an electric vehicle may require additional training to deal with more sophisticated electronics and braking. But other systems within the electric car may be identical to a conventional, gasoline-powered car.

    There may be some debate as to how green those jobs really are. But Verengo Solar is purely green. The Orange-based company specializes in residential solar systems and has done installations throughout California and New Jersey.

    “We do about 175 solar installations a month,” said Ken Button, Verengo’s president and co-founder. “We have a staff of 400 people and more than 100 of them were added just over the last year. I see our pace of growth accelerating.”

    Univoip in El Segundo installs green telephone systems that are linked directly into a company’s computer network.

    The technology has several advantages, including a big cost savings, according to Wilson Guzman, a Univoip marketing representative.

    “If a company with 100 employees moves from one location to another, that could cost them $160,000 to buy and install a new phone system,” he said. “But our system cost would be about $3,000.”

    And growth? Guzman says he’s seeing it first-hand.

    “We’re growing faster and faster, bringing people in all the time,” he said.

    Emphasis misplaced?

    No one would deny that California needs more jobs – green or non-green. But are we placing too much emphasis on green jobs?

    Gino DiCaro, a spokesman for the California Manufacturers & Technology Association in Sacramento, has some thoughts on that.

    “By any estimate, green jobs are a small percentage of California’s overall work force,” he said. “The Brookings Institution was counting green jobs throughout the country and they said California had about 332,000 green jobs – and they’re including public mass-transit operators.”

    DiCaro agreed with Thornberg that there has been broad latitude in defining what constitutes a “green” job.

    “My point is they had a loose definition of it, and they only got to 332,000 jobs,” he said. “That would still be only about 2 percent of our overall work force. If this other report says there are 500,000 green jobs what would that be – what, about 2.5 percent?”

    Regardless of the percentage, few would argue that a growing number of jobs in the building and transportation industries are embracing green policies and standards.

    Jobs needed in all sectors

    The Environment California Research & Policy Center report notes, for instance, that California’s Clean Cars Program and the low carbon fuel standard will result in sweeping changes in vehicle and fuel technology.

    If the latest updates to the Clean Cars Program are adopted, up to 14 percent of new vehicles sold in California in 2025 could be electric vehicles and up to 68 percent could be hybrids.

    The study also highlights the rebates that are offered by utilities to consumers on energy-efficient appliances, such as washers, dryers and refrigerators.

    There’s no doubt that these kinds of incentives have created and will continue to create green jobs. But DiCaro says the nation’s economic malaise calls for aggressive job-creation across the board.

    “We need large-scale job creation in every sector,” he said. “California’s manufacturing job base has lost a third of its employment over the past decade – just over 630,000 jobs. We can’t pick one winning sector and leave behind other losing ones.”

    http://www.sgvtribune.com/news/ci_18630103 kevin.smith@sgvn.com

    626-962-8811, ext. 2701



    Growing Pains? End Sibling Rivalries – And Put Them to Work
    Tuesday, August 9th, 2011 Solar Energy and Solar Power Systems Blog

    Executive Minute #12

    Growing Pains? End Sibling Rivalries – And Put Them to Work

    During the recession, it was every company for itself. With most markets flat or shrinking, companies fought over market share, and no customer was too small or too difficult to pursue.

    Now growth is back in style (particularly for green business!), so it’s time to end those sibling rivalries and consider some of your competitors as your new best friends.

    Antitrust laws prohibit many forms of collaboration between competitors, such as price fixing, but there’s one way to collaborate where everyone wins: referrals – or, in sibling terms, “hand-me downs.”

    Let’s say you meet a prospective customer who can’t afford your prices, or whom you’re too busy to serve. Don’t just decline their business – refer them to a smaller competitor, who would then give you a “finder’s fee” similar to a sales commission.

    Likewise, if you meet a prospective customer who’s too large for your staff and resources, and you can’t ramp-up production or increase your staff just yet, refer that customer to a “big sister” company. That company can give you a finder’s fee and also refer smaller customers to you.

    The key is not to think of it as strengthening your competitors, but as expanding your opportunities. While it’s natural for siblings to compete, there’s a lot to be said for family values…

    Until next time, stay sunny!



    Econ 101: Solar Panels Increase Home Values
    Friday, August 5th, 2011 Solar Energy and Solar Power Systems Blog

    Econ 101: Solar panels increase home values

    By: August 5, 2011 8:54 AM PDT

    It stands to reason that adding an asset which cuts your electricity bills–solar panels–will bump up a home’s value. Now an economic study attaches numbers to solar panels’ real-estate value.

    The National Bureau of Economic Research (NBER) recently released an analysis that found solar panels add between 3 percent and 4 percent to the value of a home. That result is consistent with a study released in April by Lawrence Berkeley National Laboratory which found that solar photovoltaic (PV) panels have a “sizeable effect” on home prices.

    (Credit: SunRun)

    The NBER study looked at prices in San Diego and Sacramento, Calif., to measure the effect of solar panels. The homes studied have panels generate electricity (not hot water) and are connected to the grid so households draw from the regular electricity system when panels are not generating.

    “Our evidence suggests that similar to other home investments such as a new kitchen, solar installation bundles both investment value and consumption value,” conclude the authors, who are California-based economists. The “investment value” increases the sale price of a home and the “consumption value” is the benefit of having an environmentally friendly energy source. (Click here for paper.)

    In neighborhoods that favor green-branded products, such as hybrid cars, solar panels add more to a home’s value, the study said. “Some households may take pride in knowing that they are producers of ‘green’ electricity and ‘warm glow’ may triumph over present discounted value calculations in determining a household’s install choice,” the study found.

    In the San Diego area, the price premium of solar panels equated to $22,554 which, when state and federal subsidies are included, is roughly the cost of installing the panels. “This comparison suggests that, on average, homeowners fully recover their costs of installing solar panels upon sale of the property,” according to the study.

    (Credit: SolarCity)

    The Berkeley study calculated the solar premium as a function of the amount of power an array of panels will generate. It found that in California, the premium was $3.90 to $6.40 per watt, corresponding to about $17,000 for the average-size 3,100-watt photovoltaic system. It also found that the premium for solar PV panels decreases over time, although the reason for that was not clear.

    The NBER analysis did seek to factor in the non-tangible benefit of leading a greener lifestyle from installing solar panels. But it’s worth pointing out there are societal benefits of a renewable, distributed energy source beyond a homeowner’s personal satisfaction.

    Solar panels help reduce air pollution and greenhouse gases by lowering the use coal and natural gas for power generation. Rooftop solar panels also provide power to the grid during some of the peak demand hours of the day, which lightens the load on power plants which are straining to meet demand in many parts of the country this summer.

    Another way to look at the financial benefits is the savings from lower electricity bills. This week, Go Solar California released an online calculator to estimate the present value and annual savings of solar panels, separate from changes in home value.

    These economic studies only considered purchasing solar panels, but leases or other financing options can be an attractive route to solar power. Buying panels cost roughly $20,000 to $40,000 upfront depending on the size. Increasingly, solar installers offer financing plans to avoid the upfront cost, while lowering monthly electricity bills.



    Community Solar Gardens are Starting to Bloom
    Thursday, July 28th, 2011 Solar Energy and Solar Power Systems Blog

    By Ucilia Wang at GigaOm

    Thu Jul 21, 2011

    Unlike other sources of electricity, solar is a type of power that is flexible enough to fit into many kinds of spaces, from a sloping roof on a home to a field in the middle of the desert. The latest novel example of this is so-called “solar community garden,” which are solar systems that are community-owned and shared.

    Community solar gardens ideally are located within a town or city limit and serve a bunch of residents who either pay to own a piece of it or subscribe to the project without owning the equipment. Electricity from the solar panels goes to the grid and is sold to the local utility, which then credits the sale to the owners or subscribers of the solar garden. The credits then show up on each of their utility bills.

    The goal is to allow renters, or anyone who doesn’t or can’t put solar on their rooftops, to still benefit from localized solar electricity generation, which is encouraged by federal and many state governments through rebate and tax incentive programs.

    “We think of it as owning a garden plot in a family solar farm,” said Matt Cheney, CEO of CleanPath Ventures, at the Intersolar conference in San Francisco last week.

    What are the barriers?

    A community solar garden isn’t common because many states and utilities don’t have policies in place that allow such communal ownership and credit-sharing of a solar system. What is more common is net metering, where a home or business owner can put solar on their roofs and sell any excess electricity at retail rates to their utilities. The sale shows up as credits on their utility bills. Net metering rules often tie the solar equipment to a particular utility customer’s account, so there is no sharing of the credits.

    California is working on expanding net metering to renters who don’t own roof space for solar panels. Called virtual net metering, these tenants of residential or business complexes can share the credits from the sale of electricity from a single solar installation. Landlords also will be able to share the credits because they, too, are electric ratepayers on the premises (they pay for electricity that lights up the garage, hallways and other parts of the complex).

    But virtual net metering requires that the installation has to be located on the premise. Not every rooftop has the space to accommodate solar panels. And landlords may not see enough incentives for them to bother with a solar system construction on their properties.

    In contrast a community solar garden could be located elsewhere and on the ground instead of rooftop, and it could allow for a transferring ownership or subscription. It also should be cheaper to install because it’s likely to be larger than a typical residential rooftop system.

    “You can sell that on Craigslist,” Cheney said. “You can give your friends a wedding gift of 250-kilowatt of solar capacity.”

    Potential change in California law

    Cheney used his talk at Intersolar to tout the California Senate bill, SB 843, that would make community solar gardens possible.  The bill has made its way to the state Assembly and is waiting for its first hearing.

    One of the discussions about the bill deals with how much community solar development owners or subscribers would get from selling electricity to their utilities, said Peter Olmsted, a policy advocate for Vote Solar, an advocacy group in San Francisco. Currently, the bill wouldn’t provide retail rates for the electricity sale, Olmsted said. The idea is that if you aren’t paying for the full distribution cost of bringing electricity to your home, then you aren’t entitled to get paid to offset that cost.

    “We are trying to get our arms around how this would actually play out and if it’s going to create an attractive program for a broader community,” Olmsted said.

    Political leaders in California and other states have touted small-scale solar generation as an important element of their plans to gradually replace power from coal or natural gas and cut greenhouse gas emissions. Installing smaller solar projects, that can be installed within urban or suburban areas, makes it unnecessary to build expensive transmission lines to ferry solar electricity from remote regions. Some solar power advocates also want more of this type of power projects instead of solar farms that require a large swath of land and often spark opposition from environmental groups.

    Although community solar garden is a good idea, implementing it may not be so easy. There is still the issue of land availability – properties in large cities could be pricy, making a solar project economically unfeasible. What is the minimum size of a piece of solar system that a resident must pay for or subscribe to? If the minimum is set too high, then some people may not be able to afford it. Can people take their stake in the community solar garden when they move out of town?

    Community solar gardens already are popping up in some places in the country. Two in Colorado have gotten some press coverage, including this 858 KW system that serves 350 people. The state passed a community solar garden bill last year. A Colorado congressman, Mike Udall, also has introduced a bill that would entitle community solar garden owners to take advantage of a 30 percent investment tax credit.

    http://www.reuters.com/article/2011/07/22/idUS282339983220110722



    Los Angeles DWP to again offer solar rebates
    Wednesday, July 20th, 2011 Solar Energy and Solar Power Systems Blog

    The plan, suspended because money ran out, involves smaller rebates and higher rates. Customers who generate extra power could sell it to the utility. Commission and council approval are required.

    ”"

    By Ashlie Rodriguez, Los Angeles TimesJuly 15, 2011

    Los Angeles once again will pick up part of the tab for residents who want to go solar.

    The Department of Water and Power announced at a public workshop Thursday the relaunch of its Solar Incentive Program, which offers rebates to businesses and homeowners who generate their own electricity.

    The program, which began in 1999, was suspended in April because a flood of applications caused funding to run out. The DWP originally budgeted $30 million for the initiative, but about $112 million in rebate requests poured in from those keen to install solar panels in order to cut their power bills and help the environment.

    During the program’s three-month hiatus, the department formulated a plan to pay for $60 million in rebates over the next three years with future revenue collected from ratepayers, who can expect their monthly bills to go up $4.59 on average by 2016.

    In addition to the solar incentive, the DWP on Thursday outlined another program, called the “feed-in tariff,” that allows customers who do not use all the energy generated on their rooftops to sell it back to the utility. The feed-in tariff will work primarily for larger installations, such as commercial and warehouse rooftops.

    “These two initiatives, if approved, will … contribute to our renewable energy goal of 33% by 2020,” DWP Senior Assistant General Manager Aram Benyamin, told about 135 homeowners, solar system contractors, activists, government workers and business owners who showed up for the first of four planned workshops at the agency’s downtown headquarters.

    To stretch its funding through the end of the program and allow more ratepayers to participate, the DWP will reduce the size of the rebates. For an average $32,000 solar power installation, the program previously covered up to 50% of the costs for commercial customers and 45% for residential buildings. Officials said the new rebate levels would be determined on a case-by-case basis — taking into account variables such as how much time a building’s roof is shaded — and did not specify reimbursement rates.

    Trying to lessen the blow of lower rebate levels, officials pointed out that many solar companies currently allow homeowners to finance their systems over several years, thus eliminating hefty upfront costs.

    And customers can receive credit on their monthly DWP bill for energy generated but not used. This “net metering” credit can be cashed in when customers consume more energy than their solar systems generate, such as during the hot summer months.

    “One of the reasons solar incentive is so popular in Los Angeles is because it essentially pays your electric bill,” said Evan Gillespie of the Sierra Club.

    Another factor that should help conservation-minded consumers is a drop in the price of solar equipment.

    “These prices mean that in a sunny region, solar power can be generated for $0.18 per kilowatt from large projects and $0.20 per kilowatt from retail rooftops,” said Michael Liebreich, chief executive of Bloomberg New Energy Finance. “Compare that to daytime electricity prices in some markets equivalent to $0.20-$0.25, and you can see things are about to get really interesting.”

    More than 40% of the DWP’s electricity currently comes from coal-fired power plants outside California, which are a major source of air pollution as well as greenhouse gases.

    David Graham-Caso, a Sierra Club official for the L.A. Beyond Coal campaign, predicted Thursday that once the alternative-energy market takes off, solar technology prices will drop and eventually make rebates unnecessary.

    “In the short term, the program requires investment,” Graham-Caso said. “But over time it will save money, create jobs and move us away from coal.”

    Of the estimated 60,000 homes statewide with solar panels, fewer than 2,000 are in Los Angeles.

    “I think this is going to be a much bigger program than anyone expects,” Gillespie said. “And the bigger it gets, the more affordable it will be for everyone to participate.”

    Both the solar rebate and feed-in tariff proposals must be approved by the DWP’s board of commissioners and the City Council.

    ashlie.rodriguez@latimes.com
    Source: http://www.latimes.com/news/local/la-me-dwp-solar-20110715,0,7595146.story