Recently, a solar powered homeowner inquired about adding a Level 2 charger for a 2013 Nissan Leaf, typically a $400 installation. Most solar companies would refuse the job due to low profit.
In Case of Emergency, An “Energy Upgrades Lifeline” Pays For Itself.
Makello rose to the challenge and used our Energy Analysis tool to present an “Energy Upgrades Lifeline” option that improves the homeowner’s cash flow and can provides a “6 Month Emergency Fund”.
Parcel level GIS mapping software made by Makello, is used to determine eligibility qualifications for a wide variety of energy upgrade grants, rebates, discounts, credits and deductions.
Makello works with non profits and other agencies to create maps for Environmental Justice initiatives.
The rooftop solar on the home was installed for free in 2012 by Grid Alternatives through the SASH program, for qualified low-income residential California homes. An Energy Upgrade Lifeline can work even if the property already has solar.
One of the homeowners was temporarily laid off due to the pandemic. An Energy Upgrade Lifeline can qualify for financing by the State of California based on prior year tax return.
Makello’s Ethical Energy & Cost Savings Analysis provides $23,448 Incentives upfront for adding more solar, energy storage, a 2nd EV and a Level 2 charger.
What makes the solution possible is a Property Assessed Clean Energy (PACE) financing method that does not appear on the credit report, is not a loan, does not trigger a property reassessment and can transfer to the next home buyer.
PACE financing ranges from 5 to 30 years term for solar, 10 years for energy storage, and can be used for other energy efficiency improvements. PACE can be as low as $0 down, it provides tax deductible interest, there are no pre-payment fees, and no credit minimum.
The PACE program is intended for use by those that can demonstrate the ability to pay. There are safeguards to protect against abuse, such as a soft pull credit check, income verification from a recent paycheck or tax return, and a requirement that the energy efficiency project is cash flow positive, as it is here:
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What makes the solution a “Lifeline” is that the incentives payments can be used as a reserve. In an emergency, the basic expenses such as mortgage payment, food, and medicine are met. The system is designed to be cash flow positive, meaning lower cost monthly and annually, than the baseline status quo.
Makello’s “Lifeline” Incentive Payment timing gives the homeowner flexibility to make decisions on what to do with the money and when to put the reserve to use. In this case, after 6 months, the homeowner can decide to use some or all of the Incentives to purchase a Plug-In Vehicle to further increase energy cost savings, or for another important use.
Simple Payback is possible in 3.7 years through Annual Energy Cost Savings. That means it’s a good deal for a cash purchase or loan. For those on a fixed income, traditional loans might not be a viable option. In the cases where PACE financing is Cash Flow Positive, we can present the PACE option as an alternative.
(Click to enlarge) As you can see in the savings over time graph, the system is cash flow positive every year through the 10 year PACE financing and then savings accelerates.
Book a FREE 15 minute appointment to: 1) Find out how Makello can help you. 2) Discuss your energy needs. 3) Get a FREE Energy Savings Estimate.
Makello’s Optimal Cost Savings Plan has other benefits for California in 2020, such as emergency backup power for home and vehicles, water pumps, air-conditioning, air-purifying and fire-fighting equipment.
Makello is ethical in our approach, offering full disclosure about PACE terms and program information, bank and credit union loan alternatives.
The value homeowners realize from having solar panels installed varies from state to state in the U.S. This value is most often measured as a solar payback or investment return. The solar payback period refers to the length of time it takes to realize enough electricity savings from a solar system to pay for the cost of installing it. The shorter the payback period, the greater the return on investment.
Book a FREE 15 minute appointment to: 1) Find out how Makello can help you. 2) Discuss your energy needs. 3) Get a FREE Energy Savings Estimate.
Any size solar array reduces the electric bill and provides access to discount utility rates. Makello’s Optimal Cost Savings determines the fastest payback and lowest upfront cost for the site characteristics and owner goals.
What is the typical payback period for residential solar installations in San Diego?
To determine a typical payback period and return on investment for a residential solar installation in San Diego two factors must be considered: 1) the cost of installing the solar panels; 2) the revenue earned by the solar system. The costs are typically easy to determine. A solar company will usually quote one fee that includes the cost of the solar panels and all approvals, permits and inspections for the authority of jurisdiction and SDG&E.
The revenue produced by a solar system is a function of the amount of energy it produces each year compared to what would have been paid to the utility if the same amount of energy had been purchased from the utility without the installation of solar panels.
Book an appointment to receive Makello’s Ethical Energy Savings Report, which is the result of a detailed trade-off study of discount utility rates, grants, rebates, tax credits, and equipment options, to determine the fastest payback and highest return on investment to meet your home, business and vehicle energy needs.
The fee for the Ethical Energy Savings Report is refundable (less the 3rd-Party $15 utility data access charge) or credited towards our installation services, after you attend the presentation meeting and complete a 5 minute survey after permission to operate.
Includes up to 5 hours research by the Makello team, and 1 hour Q&A, by Makello’s Ethical Energy Efficiency Expert.
Fundamentally, the amount of solar energy a residential PV system produces depends on weather conditions and climate. And most importantly, the amount of sunshine (the incident solar radiation or solar insolation in a given location). No surprises here that Southern California hits it out of the park on energy generation from solar panels. You can go weeks without seeing a cloud in San Diego. Electricity generation of up to 1,650 kWh per year per 1 kW of peak DC solar panels installed makes San Diego a very attractive location for solar panels.
Open air flow under carports can cool the modules and increase annual production. Beware of solar companies that tout extra short roof jacks and stylish tapered bumper edges that restrict airflow, causing overheating and reduced production.
Moving down to the bottom line, the financial incentives available for residential solar energy systems can make or break an investment decision. These vary widely across the US. In California, the most important incentives are the 26% federal solar tax credit and the NEM 2 net metering law passed by the California PUC. If we run numbers for a typical household, in San Diego, with a $250 per month SDG&E electric bill, through the “solar panels cost and savings calculator” we see the recent average cost of installed solar systems in San Diego and SDG&E electric rates, for all site location types, including clay tile, flat roof and ground mount systems that are more costly.
To what extent do high SDG&E electricity rates contribute to return on investment for solar users in San Diego?
San Diego topped a ranking of installed solar energy capacity and ranked second in installed solar energy capacity per capita in major US cities, according to a report from the California Environment Research & Policy Center. In so doing, San Diego surpassed Los Angeles, the previous first place holder, and trailed only Honolulu, Hawaii in the per capita ranking.
Let’s dig a little deeper and look at whether it’s actually worthwhile for a San Diego resident to invest in a solar PV system. To do so, we’ll make use of residential solar information resources of utility energy costs in major cities and metro areas across the country. To zoom in on the likely cost of actually having a residential PV system installed in San Diego, we’ll also make use of our tried and true, local guide to solar installation companies and residential solar cost calculator.
What we note from this is that SDG&E, the electric utility serving San Diego, has some of the highest electric rates in the nation. This, along with the exceptional amount of sunshine in Southern California, is why San Diego has the shortest payback times in the nation (and therefore the highest return on investment) for residential solar panels in California.
What incentives are available, in San Diego, to help with the cost of installing solar panels?
There are a variety of residential solar incentives available across the US. As the Solar Energy Industries Association explains: “Effective direct incentives can take a variety of forms depending on the particular situation and administrative abilities of a given state. Some states have chosen to offer tax credits, others to offer up-front rebates administered by state agencies or utilities, and still others offer performance-based incentives that are paid by an agency or utility over time based on kilowatt-hour production.”
Are you ready to save money on solar power, EV charging or Energy Storage? Get an instant quote from Makello!
Sorting through all these incentive programs, much less doing all the paperwork required to qualify for them, can be daunting. In all likelihood, you will be able to find and work with a solar finance/installation company that will assume much of the bureaucratic burden. Make it a point to include this on your checklist when shopping for the right provider.
For certain Low-Income qualified homes, it may be possible to have a solar system installed for free, through subsidies. Makello will tell you if you qualify, even if it means there is no sale opportunity. That is one of the ways we contribute to making solar accessible to everyone!
California continues to be a nationwide, and worldwide, leader when it comes to solar and “green” energy policies and programs. The most important incentive, by far, is the 26% federal solar tax credit and the NEM 2 net metering law that gives you almost full retail value for excess solar power exported into the grid during the day.
How much does San Diego’s high degree of sunshine contribute to the attractiveness of solar there?
Although we have touched on this topic, measuring the amount of solar energy a residential PV system is likely to generate over any given period of time is not as simple or straightforward as it might appear at first glance. It’s important to be sure you’re comparing apples to apples here.
By scientific convention, the amount of solar radiation available per unit area in a specific location is measured in kilowatt-hours per square foot per day, or for those more physics-minded, in megajoules per square meter per year. Other variables come into play, such as whether or not “direct” radiation, aka “direct-beam” radiation, or “diffuse” radiation is being measured. The former, as the term suggests, only measures the light that hits the earth’s surface directly, not any scattered or reflected sunlight. Diffuse radiation is a measurement of scattered sunlight while “albedo” radiation measures light reflected by the earth’s surface. As we have seen, 1 kW DC of solar panels installed in San Diego produces up to 1,650 kWh of energy per year. In comparison, many places in the north-east of America produce around 1,200 kWh per year. Using these numbers, San Diego produces up to 37% more power than the same panels would if they were installed in the north-east. This is a major contributor to making San Diego one of the most profitable cities in America for utilization of solar panels.
In San Diego, peak annual solar production is achieved by optimal orientation (180 degree south at 32.5 degree tilt), no near object and low horizon shading, with excellent air-flow underneath the modules and frequent module washing. Summer peak production is 17 degree tilt at 180 degrees south. Winter peak production is 47 degree tilt at 180 degrees south. If your south facing roof is shaded, Makello can install on the north roof with reverse tilt to the south. East tilt is 12% less than south and west facing tilt is 10% less than south.
Your roof could leak from a poor quality solar installation
The solar industry is in extreme competition with narrow margins. Companies cut corners in workmanship quality and balance of system, to match lowest bids, while salespeople oversize systems to maximize commissions. Whether you buy too much, or compromise the waterproofing to get to the lowest cost/watt, either way, you’re all wet. Makello has a better way.
Optimal Cost Savings is a new concept for the solar industry. The goal of 100% solar production vs use is an outdated strategy that does not address the current and future Time-Of-Use utility rates and the Net Energy Metering agreement with the utility.
Are you ready to save money on solar power, EV charging or Energy Storage? Get an instant quote from Makello!
Makello’s Optimal Cost Savings is based on how you use power.
In San Diego, utility electric cost savings is dependent on the time of day that power is produced and consumed. Since every home has a unique pattern of utility electric use, an effective cost savings strategy must match solar production and energy storage to the historical and projected time-of-use interval data. A detailed trade-off study of available site orientations and equipment options is necessary to identify the incremental costs and return on investment.
Makello’s Energy Analysis determines the optimal system for fastest payback, lowest cost and highest quality. In almost all cases, the optimal sized solar system is much smaller and less expensive than you would expect.
Before you buy, ask yourself:
Does a large system size change the home aesthetics? Can I afford the upfront costs? Will I relocate before the loan or lease ends? Will the new home buyer value the energy production?
Have I received a proposal that offers alternative sizes and orientations to produce and store power for when I use it? Has anyone provided an analysis which identifies the incremental cost factor, payback and return on investment for each additional module greater than optimal?
Would I trust a contractor or subcontractor, without proof of workmanship quality on my installation, knowing that the permit inspection does not include key areas on or under the roof, or below the array, where unseen conditions could void manufacturer warranties, compromise the roof structural integrity, or risk fire or roof leak, possibly years later?
Recently, upon arrival at a customer’s home in Valley Center, I declared I knew of a solution to his $24,000/year electric bill, that costs less than $2,000, and wouldn’t require trenching, electric panel upgrades or a SDGE service upgrade.
Judging by his reaction, I knew we had something big…
There was no sales gimmicks involved. Other companies were bidding $45K – $55K for his job. How could we do it for $2K? The answer comes from years of industry knowledge and experiences. I call it: “Makello”, as in “Make it low”, or “make your energy bills as low as possible, for as little investment as possible”.
By eliminating their energy bills, the average San Diego family can save enough money to put a child through college. We’re talking about roughly $250,000 over the lifetime of the system.
This graph shows approximately how much you pay SDGE per year using various amounts of electricity, specifically as an average of the Coastal and Inland areas.
“SDGE’s Electricity Rate Hike”: How to Read It If your home uses about 900 kWh of electricity a month (found on your electricity bill), find 900 on the horizontal axis, and then go straight up to the orange line (how much SDGE charges after the rate hike in September 2013). Your annual bill is approximately $3,000, which is close to $1000 more than before the September 2013 rate hike. Compare that to your potential electricity bill with Wipomo’s Energy Ecosystem: almost nothing every year.
SDGE’s Annual Charge to You The annual cost of electricity from SDGE was made from SDGE’s own data posted on their website, here. We took the average cost of the Coastal and Inland areas at each monthly kWh usage (after the rate-hike) and multiplied that by 12 months. The result is the average annual cost of electricity for a given monthly electricity use.
To calculate how much SDGE raised your electricity bill, we did the same procedure with the cost of electricity before the rate hike, and then found the difference.
You can see from the graph: the more you use, the more money it costs. On the other hand, the more you use, the more Wipomo’s Energy Ecosystem can save for you. Your annual cost could be nearly $0 if you buy it upfront. You may even see that SDGE pays you if your system produces enough energy. SDGE will still charge the standard service fees for being connected to their electricity network, but on a per-year basis, a typical San Diego home (4 person household, 4 bedroom, 2 bath), could save as much as $5,000 annually, depending on their actual electricity needs. If you can’t purchase the system, it’s likely not a problem. In many cases, you can save instantly by financing the Energy Ecosystem. That means your monthly payments could be lower than your electric bill. What about the initial cost of purchasing the energy ecosystem? See below.
Lifetime Energy Cost – 25 years: How to Read It
The lifetime saving graph captures a fuller picture that includes the cost of purchasing the energy ecosystem. And in this case, it also captures the cost of fueling 1 vehicle. Just like in the annual graph, find how much energy you use per month on the horizontal axis. As an example, we’ll take 900 kWh again. The red line shows how much you will likely pay SDGE for electricity in 25 years. At 900 kWh, that’s about a whopping $250,000! What could you buy with $250,000 if you could keep it? With Wipomo’s Energy Ecosystem, you can keep the lion’s share of it. The green line shows how much you will likely pay for electricity if you buy only the Solar Photovoltaic part of the Wipomo Energy Ecosystem. At 900 kWh, the 25-year-cost comes in at a much lower $115,000, approximately. That’s almost $150,000 that you don’t have to pay SDGE. The blue line shows you can save more if you use an electrically powered vehicle. If you break free from SDGE, you can do the same from the gas companies: power your car with your own fuel from solar photovoltaic electricity at less than 1/3rd the cost of gas.
The Cost of Doing Nothing The Cost of Doing Nothing is calculated using Wipomo’s cost projection models. We started from the base scenario: a residential home with 1 Toyota Tundra. We used this base scenario across different amounts of energy consumption (kWh). Our model assumes that SDGE continues raising its rates at its historical level across all tiers: 6% per year. The model also calculates the annual fuel cost of a vehicle fuel rating of about 22 MPG and average annual use of 15,000 miles. The model used a flat rate cost of fuel.
Wipomo Solar Power We’ve been developing this model for years so that we can hand over nearly instant quotes. Our model calculates exactly how much Solar Power you need (in kW and dollars) to produce any percentage of energy use for home or business. At every point along the horizontal axis, the cost of purchasing solar is in the final life-time cost.
The life-time cost of purchasing solar explained.
We try to be as detailed as reasonably possible, so within the lifetime cost, we’ve added a few other figures: 1- the cost of fueling your vehicle, for comparison purpose 2- the lifespan of solar modules and 3- future SDGE rate hikes. For point 2, solar modules actually have a very long lifespan of up to 30 years. Their efficiency does start to degrade slowly, however. So by year 25, the solar modules can produce only approximately 80% as much energy as they can in year 1. If your solar modules’ energy production falls below your consumption, you will have to pay SDGE the difference. That’s why we also include future SDGE rate hikes because you will be paying the higher rate. Still, you’re saving a lot of money and you can always add more solar modules later.
Wipomo Solar Power + 1 Electric Vehicle Adding an electric vehicle into the mix increases your savings. In this graph, we modeled switching out an inefficient vehicle for a Super Prius: a Prius upgraded with Wipomo’s EV battery pack and plug. You can charge your vehicle with your own solar electricity. The model accounts for needing more solar modules to cover the extra electricity you need for an electrically powered vehicle. Although there is an upfront cost of purchasing a new EV or upgrading a Prius to a Super Prius, over the lifetime of the solar system and electric vehicle, you save even more money.
If you are tired of paying SDGE, tired of electric energy rate hikes and ready to see how much money and how quickly solar photovoltaics and/or electric vehicles can save for you, call, email or request a quote today. -Joseph Ocampo, Wipomo Research Intern
