"cheap and fairly easy to install" [RE-wrenches]

[Joel Davidson]

Dear Pat,
Thanks for your valuable insights. If the rebates stopped today, a few
of us solar guys would stay in business in L.A. or get committed for our
commitment :-)
I have asked legitimate solar guys why the did not report the bad guys
to the contractors' license board or the district attorney during in the
40% federal tax credit days and was told (a) we did not want to get
involved; (b) we were too busy; (c) we were afraid of the gangsters
involved; (d) we did not know it was happening; (e) we did not care; (f)
some of above; (g) all of above. Are there any other reasons?
Best regards,
Joel Davidson

Pat Redgate wrote:

> Joel:
>
> Actually the installed per kW price seemed to be dropping (per CEC) until
> last year.  I know that our installed/watt price has dropped by 15% or more
> over the last two years and now I find myself buying in bulk to further lower
> my costs.  But I think the increases that the CEC is witnessing has more to
> do with the simple matter of supply vs demand and the inexorable entry of
> high profile marketing ventures (HVAC companies and GCs) with their attendant
> marketing and commission costs.  At the end of the last solar bubble (in
> California) HVAC and marketing firms were accounting for more than fifty
> percent of the dhw market and their closed lead costs were nearly $2,000 and
> commissions ranged from 10 to 20%.  These firms were offering hot water
> system for $10K at a time when the average price for a dhw system installed
> by our firm was $4K.  If a 2 kW grid tie system can be installed for $18,000
> a good salesman will find a way to gather another 10% commission (at least)
> and a boiler room/direct mail add campaign can pump up overhead by another
> 10% (easily).  At 22K it would seem there would be enough money for everyone,
> but Disney economics take over: the market will be charged whatever it will
> bear. In fact, the reason the ranks of PV companies have become so swollen
> (seen the CEC list lately?) is for this one very simple reason -- money.  The
> behavior of the California CEC aggravates the situation by stoking the
> fire-sale mentality by precipitously truncating programs.  Deadline frenzy
> can raise prices to astounding heights.
> If (when) the port union strikes (is locked out) again, just watch what
> happens to pricing.
>
> Oh, if only bureaucrats just understood business!
>
> Patrick A. Redgate
> AMECO
> Long Beach, CA
> (562) 595-9570
> www.amecosolar.com
>
> --
> [Non-text portions of this message have been removed]
>
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