Backup & Standby Power Systems – What You Need to Know

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With the recent power outage in SDG&E territory and the ever increasing raising electricity rates, customers are asking us about backup power systems and going ‘off-grid’ (i.e. being completely independent of SDG&E). There are a few different ways of looking at backup and off-grid power. Given that we have almost consistent, constant sun in San Diego, we are the ideal candidate for backup and off-grid systems.

Option 1: Emergency Backup Systems – When the Grid Goes Down

This is the most typical way of looking at back-up power systems. This type of system usually consists of a backup generator (gasoline or propane) designed to run a pre-wired critical-load electrical panel for a short period of time (1-3 days). This electrical panel will provide a couple/few outlets enabling you to run your refrigerator, some lights, a TV/radio and power and charge your small electronics – for a limited time. These systems typically range anywhere from $2,500 – $25,000+ depending on how many days backup you want, whether you want the system to automatically or manually turn on during an outage and how much power you consume (among other variables).

While these types of backup systems can be designed with PV and batteries, these types of systems are best if they are initially designed for that purpose. Retrofitting an existing grid-tied PV system to make it a backup or off-grid system is absolutely possible, but it can be costly.

Option 2: Off-Grid Systems

Off Grid Inverters, Charge Controllers and Safety Switches

No utility needed here. Unlike traditional ‘grid-tied’ PV system that goes down when the grid fails, these systems give you the peace of mind, knowing that you are in charge of your power supply. This type of system requires additional components and more space for storing equipment and batteries. These systems can cost roughly double the cost as compared to an ‘equivalent’ grid-tied PV system and are typically only installed in locations where grid power is not available. Additionally, depending on the type of batteries you choose, regular maintenance may be required. Typically, the batteries will last 5-8 years with consistent use.

Backup Batteries - This Customer is 100% Off-Grid

If you are thinking about going off-grid and are already serviced by an existing utility you could have additional requirements which may include the addition of a large backup generator, as well as the burden of proving to your jurisdiction (County/City of San Diego, City of Escondido, etc.) that you have enough backup power to run your house.

Option 3: Hybrid Systems

The SMA Sunny Island - Design for Hybrid On/Off-Grid Use

This type of system is gaining in popularity and notoriety. A hybrid system can be a win-win for some customers by providing both an off-grid/back-up system as well as a grid-tied PV system. The costs run more than a grid-tied PV system but less than a completely off-grid system. When configured as a grid-tied system with backup capability, this system functions much like Option 1 – but with solar and batteries.

This type of system can also be configured as a primarily off-grid system with excess capacity pushed into the grid. This gives you the best of both worlds by providing you with clean renewable power most of the time, but if you consume more than average, you pull power from the grid when you need it.

Editor’s Note: While backup, off-grid, and hybrid systems are gaining in popularity, roughly 90%+ all PV installations are grid-tied only. That means when the grid goes down, so does your PV system. That being said, PV and backup systems have been around for a long time (20+ years). When systems are designed, installed and maintained correctly, they are just as reliable, if not moreso, than the grid itself.

If you would like more information on back-up or off-grid power, please contact us in the office at 760-480-4400 or by email at kevin@skellyelectric.com and we’d be happy to help.

NEST – Smart, Automated Home Thermostat

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As the holidays roll around we thought we’d feature a neat bit of technology that could help save money on your electricity bill when you cool or heat your house. The soon-to-be-released NEST thermostat was developed by Tony Fadell, the original creator of the iPod and the first three generations of the iPhone.

Essentially the NEST is a smart thermostat with an LCD display that programs itself by learning your usage patterns. It has built in Wi-Fi for accessing local weather for determining how your heating and cooling patterns change with the weather. In addition, it can be accessed from the web or mobile devices and even stores your energy consumption history, letting you know how much you save or spend on heating and cooling. Now that’s a smart device!

At $250 retail, it may be somewhat overpriced for a thermostat, but the company believes it could save consumers much more than that in energy savings. Supposedly It will come with a 5-year warranty when released.

Read more about the NEST here: http://www.nest.com/

Cities choose to stand up to SDG&E in 2011 rate case

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News from the San Diego Solar Coalition:

The City of San Diego NR&C (Natural Resources & Culture) Committee couldnt have gone better; the committee was responsive to all the feedback and letters that they have received from San Diego solar constituents. The committee made a motion to further the discussion in a closed session with the Council to speak with their lawyer about the actions that they can take, given the city’s intervenor status with the PUC rate case filing. Councilmember DeMaio told SDG&E to “go back to the drawing board” and expressed his outrage with the proposal and its impact on local jobs. He also requested that if the utility does not drop this proposal, that the public should join together with one collective voice and all protest this rate case.

In the second meeting with City Council of Solana Beach, there were many many solar homeowners in the audience showing strong opposition and giving comment on the subject. The meeting went late into the evening and presentations were given by representative from SDG&E and SDSC member Daniel Sullivan. After over an hour of comments from the upset solar public, the City of Solana Beach UNANIMOUSLY passed a decision to pass a resolution in opposition to GRC2 and also to send letters of opposition to the CPUC, the Governor and SANDAG.

Keep on fighting the good fight!


 

San Diego County Supervisor Dianne Jacobs “Vehemently Opposes SDG&E 2011 Rate Hike”

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Dianne Jacobs letter to CPUC opposing SDG&E's 2011 Rate Hike

On October 10, San Diego County Supervisor Dianne Jacobs officially drafted a letter to the Calfornia Public Utilities Commission – Commissioner Foerron vehemently opposing the 2011 SDG&E rate hike. Read the entire letter here:

Dianne Jacobs Letter to the Commissioner

 

The 2011 SDG&E Rate Case – Boiling Frogs

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Just take a look at these graphs. These were provided by the California Center for Sustainable Energy (link at bottom of the post) – a non-profit advocacy group in San Diego. Keep in mind, these would be slated to be ‘phased in’ over the next few years. Kind of like boiling a frog in water.

A Real Life Example - SDG&E to make schools 'pay' : Impact to more than 100 elementary schools in San Diego with solar. This is what their bill could look like with the current proposed rate case. We've heard estimtates that this could cost schools with solar between $1.5M - $3M extra A YEAR.

 

Elementary School Customer Profile

  • Applicable utility rate is SDG&E’s DG-R tariff.
  • New rate structure in full effect by 2014.
  • Chart shows 2014 impacts.
  • 170,000 annual kWh consumed and MAX annual demand of 163 kW. 61 kW- AC solar photovoltaic system offsets 90% of annual kWh consumption.

A Real Life Example - Expect Higher Water Prices: This analysis was done by the California Center for Sustainable Energy, and it was done with real interval data from the customer. This is not a theoretical calculation. Expect higher electric AND water prices if this goes through -- in any form, "watered" down or not.

 

Water District Profile

  • Applicable utility rate is SDG&E’s DG-R tariff
  • New rate structure in full effect by 2014. Chart shows 2014 impacts.
  • 1,050,000 annual kWh consumed and MAX annual demand of 750 kW
  • 500 kW- AC solar photovoltaic system Offsets 93% of annual kWh consumption

A Real Life Example - Annual Increase for Solar Homeowners: This is a real life example for a customer with a 4kW PV system that offsets roughly 75% of their consumption. There are many variables such as what time of day you consume the majority of your energy, and how much consumption your PV system offsets. This is just one example. Some are better. Most are worse.

 

Residential Solar Customer Profile

  • Applicable utility rate is SDG&E’s DR tariff.
  • New rate structure in full effect by 2015. Chart shows 2015 impacts.
  • Average solar home where 10,300 kWh consumed annually.
  • 4 kW- AC solar photovoltaic system offsets 75% of annual kWh consumption.

 

Annual Utility Bill Increases for customers with solar. Seems fair, right?

Source: SDG&E Proposes New Rates for Solar Customers

Feeling the heat? ACT NOW, sign the petition. 

A Real Life Example: The effects of SDG&E’s proposed rate hike for solar customers

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Many customers have been asking about specifics on how the proposed SDG&E rate hike will affect them. For an example, one of our residential customers recently installed a 14kWdc PV system and is currently paying $5 per month, offsetting 100% of their consumption. Assuming the comment that was made to NBC San Diego by J.C. Thomas, the utility’s manager for government and regulatory affairs, the rate hike could be as much as 4-5 cents per kWh. [As "Solar 1" in the comments pointed out (thank you, by the way) , solar customers will be charged for both incoming AND outgoing power. The calculations have been revised as compared to the previous post.]

The rough math is as follows:

The energy produced in the last 4 weeks by this customer is 1,760kWh. We can look at the “network use charge” (let’s call it the NUC) a couple of different ways. For illustrative purposes, let’s say the NUC assessed a charge of 4.5 cents per kWh transmitted.

Example 1: Lets assume our customer consumes 90% of their energy at night.

1,760kWh x 90% x 4.5 cents x 2 = 142.56 increase each month

$142.56/month x 12 months = $1,710 additional per year due to proposed NUC

Example 2: Lets assume they consume 50% of their energy at night and 50% during the period their solar system is producing energy (thus consuming only energy from the PV system 50% of the time, and NOT from SDG&E during that time).

1,760kWh x 50% x 4.5 cents x 2= $79.20 increase each month

$79.20/month x 12 months = $950.40 additional per year due to proposed NUC

This is important to illustrate the impacts to solar customers, but this is an issue for all SDG&E customers. SDG&E is proposing to raise rates on ALL customers (residential and commercial) between 3-7%, despite the Utility Consumers’ Action Network – non-profit, public interest consumer advocacy group’s findings (along with the Public Utilities Commission themselves) that SDG&E should actually decrease rates by 3%!

Please forward this petition to all your friends and family in San Diego to help fight the rate increase.

Stay tuned for more developments!

Why Going Solar Makes Sense Today

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Many people ask why now more than ever solar makes sense. They wonder how the solar industry continues to grow despite a declining economy. After all, the last time you looked into it, it was thousands of dollars and gave you a 10-12 year payback…

Times Have Changed…

Solar Module Prices

credit: Solarbuzz.com

Since the beginning of 2011, solar module prices have dropped roughly 40%

Overproduction, increased competition, a worldwide economic slowdown and expiration of solar incentives have forced prices down. Prices are so low, some companies (manufacturers and installers) are selling solar at cost to keep their doors open and move inventory. Be careful though! These are some of the same companies that are offering 10-year warranties. Make sure you choose a solar company that will be around to service your warranty. In business for more than 37 years, we’re currently servicing companies warranties that have gone out of business.

 

Utility Cost Increases

Average utility increases assumed to continue at 4.5%+ per year

That’s a 55% increase in cost over 10 years! You can afford solar now! 

The cost of almost everything is increasing

Families are tightening their belts and companies are looking for better ways to be innovative while cutting costs. According to the Bureau of Labor Statistics, in San Diego alone, utility costs increased 4.5%, on average, over the past 5 years. That’s like saying a $300 bill today is equivalent to a $374 bill in 2016, just 5 years from now.

For example: If you have approximately a $300 a month bill right now, installing solar could save you more than $8,900 in the next 5 years – that’s with $0 down! If you cannot afford to purchase a solar system, you could still save every month with a $0 down lease. Your monthly payments (solar payment plus your remaining electric bill) could be less than what you’re currently paying now – with no upfront cost, for customers with $150 per month electric bill or more.

Solar incentives are still fairly high – 30% plus!

While rebates are dwindling, they are still available. For a direct purchase, a 30% federal tax credit will continue to be available until 2015. For commercial customers, the Federal Grant in lieu of the 30% tax credit expires at the end of this year. Coupled with a drastically reduced cost, we can provide a quote to show just how much money you really could be saving.

Frequently Asked Questions about Solar Leases

How does a Solar Lease work?

A solar lease is for customers looking to save money immediately, without the up-front cost of purchasing a solar system. We can provide you with a low montly payment with little or no down to install a solar system on your rooftop. We also have an option where you can pre-pay a lease.

How can a Solar Lease be such a “good deal”?

A solar lease is somewhat similar to a car loan, except a third party owns, monitors, maintains and guarantees the output of the solar system over the life of the lease (20 years). By treating the solar system as a “commercial asset,” investors are able to use incentives associated with a commercial solar system, and then pass the savings to the homeowner in the form of overall lower monthly payments.

How does a lease compare to a solar home loan or direct purchase?

This is a sample customer with a  $418/month electric bill

Can I buy the lease out?

Yes. Generally you can buy the lease out after year 5. The cost will vary depending on the size of your system, the original system cost, and the terms of your lease agreement.

Can I pre-pay the lease?

This is an excellent option for those who want the benefits of the solar lease (monitoring, maintenance and a power output guarantee for 20 years) without the monthly payment. Additional information can be provided upon request.

There are many benefits you may not have thought about…

    • Insulation from utility rate hikes (currently at 4.5% over the past 5 years)
    • Lower utility bills means more income for things like higher quality food, paying off debt, or saving/investing in your future
    • Increase your property value $5 per watt for every watt of solar installed (without increasing property taxes)
    • Increase the desirability of your property (if you’re considering selling in the future)
    • Solar allows you to save more pre-tax dollars (if you have a 401K) because you no longer are paying your utility bill with after-tax dollars. Your solar system effectively pays your electric bill with non-taxed dollars. That’s like saving an additional 30% on your electric bill!
    • If paid with a Home Equity Line of Credit (HELOC) or bundled in with a home-loan refinance,  you will have a tax-deductible interest payment – this is the next best option to purchasing if you qualify
    • You will be reducing your carbon footprint and reliance on foreign sources of energy.

 

Skelly Electric, Inc. is one of San Diego’s most experienced design-build electric, solar and EV charging station contractors. In business for more than 37 years, Skelly Electric specializes in whole-building electrical, solar power, and car charging systems. Skelly projects reach from San Diego to Sacramento, commercial to residential. Founded in 1974, Skelly is a woman-owned small business, holds a current class C-10 contractor’s license (#328332), and is incorporated in the state of California. Skelly’s primary expertise is in designing and building turnkey commercial electrical and renewable energy projects. Skelly provides carefully planned designs with an emphasis on quality, reliability and affordability. Visit our website for more information. References gladly provided upon request.

Call us now at 760-480-4400 and let us help you save money on a solar system today! Visit our website for more answers to Frequently Asked Questions.