CEC Rebate for Contractors [RE-wrenches]

[Joel Davidson]

Dean,

Thanks for the feedback. Selling the PV system to the wife seems to be the
only work-around for a licensed contractor to put PV on his own house
without getting dinged by the discriminatory 15% rebate reduction for
self-installed systems per rebate Guideline Appendix 5,B.

I was told that this rule was made to encourage homeowners to hire licensed
contractors which would, in turn, result in better, safer PV systems, create
more jobs and expand the industry. Instead, this rule has discouraged
do-it-yourselfers from going solar. It also has done little to improve PV
system quality because we still hear the same old stories about unsafe and
poorly designed systems. Ironically, this rule has turned around to bite
contractors who want PV on their own homes and businesses but are not
married or are uncomfortable with the work-around. The original classless
rebate rules were fair. Discriminatory rules that create different classes
of citizens are just plain bad.

(From my December 9, 2002 letter to the CEC recommending that the Guidelines
do not include a 15% "discount" rebate for owner installed systems.)

A lesser incentive for owner or self-installed PV systems is discriminatory,
fails to meet the needs of this emerging technology during the very
early-adoptor market stage and is tantamount to a subsidy for contractors to
charge more for some PV systems that could otherwise be installed by owners
at a lower price.

First, a lesser incentive discriminates against home and business owners
with the skills, experience and desire to install their own PV systems. Many
PV early adoptors are engineers, technicians and individuals who have the
skills and experience to do their own work. Many owners prefer to do their
own work because they have had bad experiences with contractors. Owners who
install their own PV systems have to comply with the same program rules and
code requirements as contractors, but often invest more for their systems
because their labor costs are not subsidized by the incentive.

Second, PV is like other not-yet-fully-developed or emerging technologies
that require active participation by the end-user which sometimes includes
system design and installation. PV is similar to other component-based
systems like entertainment systems and computers. Early adoptors often had
to build their own systems because they had more expertise than contractors.
Had these skilled “do-it-yourself” stereo and computer owners been
discouraged and discriminated against, many user-friendly innovations would
not have evolved. Likewise, equal incentives for self-installed PV systems
will encourage diversity in design so necessary for a technology to become
more user-friendly and have broader appeal.

Third, a lower incentive to owner-installers is a self-serving contractor
subsidy. Contractors actively discourage the “do-it-yourselfer” because they
lose that business. Yet, contractors can and should compete with
owner-installers in a free marketplace. Contractors should not be given a
subsidy advantage over owner-installers. This subsidy advantage will not
drive down prices and some contractors will even use the subsidy
differential to charge customers as much as the market will bear. Giving
contractors a higher subsidy will not help to achieve the ERP goal “to
reduce the net cost of on-site renewable energy systems to end use
consumers.”

Finally, a lesser incentive to owners who install their own PV systems
discriminates against people exercising their fundamental right to build and
improve their own property and practice the self-reliance that attracted
them to PV in the first place.

Best regards,
Joel Davidson


"Dean T. Newberry" wrote:

> Ho y'all, I believe your electrician is right I sold my wife a system
> last year, but they have since changed the rule.
>
> Cul deant
>
> -----Original Message-----
> From: joeldavidson at earthlink.net [mailto:joeldavidson at earthlink.net]
> Sent: Tuesday, August 05, 2003 11:16 AM
> To: RE-wrenches at topica.com
> Subject: CEC Rebate for Contractors [RE-wrenches]
>
> Has any California wrench installed his own PV system and received the
> full
> rebate?
>
> I just got a call from a C10 licensed electrician who was told this
> morning
> by the CEC that he must hire another electrician to install a PV system
> on
> his home/office or he will not get the full rebate. He referred the CEC
> person to the Emerging Renewables Program Guidebook, Appendix 5 Atypical
> Incentive Applications, Section B. Systems Installed by Sellers or
> Contractors for Their Own Personal or Business Use (next to last page)
> that
> allows contractors to get the full rebate but to no avail.

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