PV buydown policy request [RE-wrenches]

Wed Apr 28 17:48:18 PDT 2004

<x-flowed>

===========================================================
Need to find the right school to fit your needs 
CollegeInformation.info has already found it. Get educated 
on your future – degrees, financial aid and more!
http://click.topica.com/caab8Lbbz8Qcsbz9JC9a/ College Info
===========================================================

I think the benefits of a credit scheme based on credits are clear,
but there are still some major issues.

1) I think the idea of developing a whole new inspection process is
relatively futile. A lot of expensive, duplicative effort that may not even
yield significant quality benefits in the end.

2) If the rebate funds are redirected from the capacity to production,
then it leaves a big initial capital outlay someone has provide. If you
then have to create a subsidized loan program, then new problems
are created.

3) Production credits provide an incentive for quality, but certainly do
not provide assurance.

4) With a loan program, who provides the surety?..... most likely the
customer (and the house). If the system fails to perform, the customer
will find out about it 1, 2, or more years down the road. Their recourse
from the contractor, years later, may not be assured. The contractor
may be out of business. Meanwhile, the customer is stuck making
payments for maybe decades on a system that could be faulty,
maybe overpriced, and maybe the performance predictions were
totally unrealistic from the start.

5) Who's responsible in the event of defaults on the [already
subsidized] solar loan program? Now we have more problems...

All in all, the simplicity of a relatively modest initial rebate
program (eg, CEC) coupled with feed-in provisions that are
favorable (eg, SCE or PG&E net metering especially TOU)
has a lot of appeal to me. Remember that our current retail
NEM arrangements already represent a significant feed-in
subsidy (solar generation doesn't have to cover bear the
cost of maintaining the transmission/distribution system,
grid stability, capacity reserves, and so on...).

/wk

At 09:20 AM 4/27/2004, you wrote:
>
>
>===========================================================
>Let University of Phoenix make 2004 your year. Evening,
>weekend or FlexNet® classes  over 130 locations. Look
>into our programs and get the degree that gets you going!
>http://click.topica.com/caab6aBbz8Qcsbdh77Ha/ UOP
>===========================================================
>
>
>
>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
>
>===========================================================
>Looking for a Promotional or Marketing Gift? Discover
>Crazy Aaron's Thinking Putty in grown up handfuls. It's
>the creativity unleashing, mood enhancing desk toy
>customized with your corporate image!
>http://click.topica.com/caacbbPbz8Qcsbdh77Hf/ Crazy Aaron Enterprises
>===========================================================
>
>- - - -
>To send a message: RE-wrenches at topica.com
>
>Archive of previous messages: http://lists.topica.com/lists/RE-wrenches/read
>
>List rules & etiquette: www.mrsharkey.com/wrenches/etiquete.htm
>
>Check out participant bios: www.mrsharkey.com/wrenches/
>
>Hosted by Home Power magazine
>
>Moderator: michael.welch at homepower.com

===========================================================
Let University of Phoenix make 2004 your year. Evening, 
weekend or FlexNet® classes – over 130 locations. Look 
into our programs and get the degree that gets you going!
http://click.topica.com/caab6aBbz8Qcsbz9JC9f/ UOP
===========================================================

- - - -
To send a message: RE-wrenches at topica.com

Archive of previous messages: http://lists.topica.com/lists/RE-wrenches/read

List rules & etiquette: www.mrsharkey.com/wrenches/etiquete.htm

Check out participant bios: www.mrsharkey.com/wrenches/

Hosted by Home Power magazine

Moderator: michael.welch at homepower.com
--^----------------------------------------------------------------
This email was sent to: michael.welch at homepower.com

EASY UNSUBSCRIBE click here: http://topica.com/u/?bz8Qcs.bz9JC9.bWljaGFl
Or send an email to: RE-wrenches-unsubscribe at topica.com

For Topica's complete suite of email marketing solutions visit:
http://www.topica.com/?p=TEXFOOTER
--^----------------------------------------------------------------

</x-flowed>