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

[matthew tritt]

Don't forget lawyers, lawsuits, counter-suits and bankruptcy. Criticizing
someone else's work is an American pastime, but "turning someone in" for
perceived negligence in design and performance needs to remain in the realm
of the system's owners. Think of the chaos that would ensue if all trades
people were to engage in turning each other in for the other's lousy work.
Where would it end? This comes back to the subject of training building
department plan checkers and building inspectors in PV installs.

Matt
----- Original Message -----
From: "Joel Davidson" <joeldavidson at earthlink.net>
To: <RE-wrenches at topica.com>
Sent: Saturday, November 16, 2002 2:01 PM
Subject: Re: "cheap and fairly easy to install" [RE-wrenches]


> 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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