PV buydown policy request [RE-wrenches]

Tue Apr 27 10:34:03 PDT 2004

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All,

I won't say much because Bob said it so well, I'm in agreement with all of
his points especially the 'kicker for NABCEP'.  As always keep up the good
work Allan!.

Ezra Auerbach
DragonSun Consulting

----- Original Message -----
From: Bob Maynard, Energy Outfitters <bob at energyoutfitters.com>
Sent: Tuesday, April 27, 2004 9:20:55 AM
To: <RE-wrenches at topica.com>
Subject: RE: PV buydown policy request [RE-wrenches]

>  
> 
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> 
> Hi Allan,
> 
> Oregon's upfront rebate program is now about a year old and many lessons
have been learned.  We originally argued for a production credit program
for all the obvious reasons.  In the end the decision was upfront rebates. 
Now a year old, the program has sold out twice, driven by a couple of
aggressive sales companies pre-selling lots of systems and reserving the
funds.  These companies typically sold 3 kw res. systems for $6.50/watt
installed, made little money, and may not be around long enough to honor
the warranties!  The program managers now realize the negative impact on
the program and the industry and are beginning to discuss the "new " idea
of production credits.
> 
> While upfront rebates get things moving much faster, it doesn't encourage
sustainable business models, systems designed with performance in mind
first, and customer involvement.  A production credit of $.40-.50 per kwh
with an 8-10 year contract combined with a no-low interest loan program is
right in my opinion.  The production credit should pay 50-60% of the loan
payments.
> 
> The Oregon program has regional inspectors that visit the installation
after the local inspector is done.  This has worked to some degree, but has
been expensive, inconsistancy in standards between inspectors has been a
problem, and now they are talking about "an inspectors" inspector!  With
production credits this waste of precious program $'s could be eliminated. 
Just put a utility grade meter on the output of the inverter, and a once a
year reading, and thats it!
> 
> Other than the legal requirements, possibly look at NAABCEP certified
installers being able to offer an extra $.05-.10 per kwh kicker. 
Production credits drive the demand for expertly designed and installed
systems.
> 
> My 2 cents!
> 
> Regards,
> Bob Maynard
> Energy Outfitters
> 
> Fellow Wrenches,
> New Mexico is exploring some PV buydown options. As I understand it, this
is
> not a state government-funded buydown, but a program to allow the
regulated
> utilities to purchase the right to claim distributed, customer-owned PV
> toward the mandated Renewable Portfolio Standard.
> 
> I need help with a few questions, from others who have been through this:
> 
> 1. Should a utility PV buydown be production-based or based on an upfront
> rebate (such as a flat $4/watt rebate for systems meeting certain
> requirements)? It seems to me that production-based will promote higher
> quality installations (thus giving my business a competitive edge) over
some
> type of formula based on nameplate rating. How is this done in Europe,
where
> incentives are mostly production-based?
> 
> 2. What type of technical system requirements should be imposed, and how,
> when, how often, and by whom should systems be inspected?
> 
> 3. What requirements should be placed on installers?
> 
> There are more questions, but these will help me offer well-reasoned
> suggestions.  Thank you in advance.
> 
> Allan at Positive Energy
> 
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