Being certified as a NABCEP PV installer opens up several state sponsored incentive programs which opens up more business possibilities.

This is not the end all for PV installers, continued education and learning is always required.  Keeping up with the latest technology can be a chore, especially in a developing technology like PV.

In September, I intend to take the Solar Thermal Certification for all the reasons noted above.

To that end I purchased a book called Oil 101.  It is, indeed, a fascinating book that details the complexity of our current energy structure.  The book is an excellent primer on the oil industry, it is well written and easy to understand.  Anyone who drives a car, uses oil to heat their house, uses plastics or any other petroleum product should read this book.  That is to say, everybody should read this book.

What strikes me is how much effort is put into exploration, extraction, refining and shipping.  We take all of this for granted in this country, but any failure in any one of those steps would create a disaster of epic proportions.  Think Hurricane Katrina for the whole county.  The fact that so much of this energy depends on technology, specialized methods, and huge capital outlays should be at least slightly alarming.  That, and our entire economy is build on the availability of cheap energy.  As we have just seen, economic down turns can really put a damper on large cumbersome corporate operations.

It may seem natural to be angry at the oil companies when gas is $4.25 a gallon and electricity is $.20 a kWh.  However, when I read about all of the work and investment these companies have to make, all of the variables from bad weather to bad governments they have to deal with, it also makes me respect the oil companies for all that they do.

1. Sudden loss of income.  During the installation the customer looses his or her job.  This happens and there is almost nothing that can be done about it.  My business model has always relied on down payments, e.g. 1/3 on order, 1/3 on delivery and 1/3 on completion of a job.  Therefore, at any point in a project I am not that far behind.
2. Inability to pay.  This is completely preventable and can be determined during the early stages of a project.  It is the reason why a contractor should always completely explain the costs and get a signed contract with the customer.  If there are any doubts, as for a different payment plan, e.g. 1/2 on order, 1/4 on delivery and 1/4 with completion of the project.
3. The customer is an asshole.  This one should be apparent during the sales presentation.  Things to look out for; customer has a past history if stiffing contractors,  suing contractors, seems dishonest, etc.  Sometimes it is nothing more than a bad feeling.  Often times when this happens my schedule suddenly becomes booked solid for the next 6 – 12 months.

It is important to follow up on things.  This means sending out an invoice promptly when payment is expected.  After 30 days, a statement of monies due and a follow up phone call.  Often times, simply asking if they received the invoice and statement, then asking when you could expect a check will suffice.  Sometimes not, however.

In many cases, things can be worked out.  In case number one, often times a payment plan can be put into place.  Generally, these people want to do the right thing, but due to circumstance beyond anyone’s control, they cannot.

In the case where the customer never had the ability to pay, this is the fault of both parties.  The customer is at fault for lying and the contractor is at fault for not checking out his potential customer before starting work.  Chances are that this customer will never have the wherewithal to pay, nor would any legal proceedings be fruitful.  This may end up being a business loss that is written off at the end of the year.  It does happen occasionally, but a credit check can almost eliminate these situations.

If you are dealing with a customer that can clearly pay but for some reason has decided not to, then there is something called a Mechanic’s Lien.  This is a last resort measure and requires a solid paperwork trail.  The requirements vary from state to state, however, in New York, a Mechanic’s Lien must be filed within four months of the completion of work.  What then happens is the property cannot be sold, transferred or refinanced without the lien being satisfied.  Often times, on a new construction, the bank will not release the next draw until the lien is satisfied.  It becomes public record.  I would not go to this well very often, but if you are out a lot of money, it is a way to get payment.

In short, if you want to stay in business, then you need to get paid.

On the surface, this would seem to be a good thing.  The solar business is growing, more and more people are aware of solar, not just Photovoltaics, but solar hot water too.  More and more people want these systems installed on their homes and businesses to off set energy use and save money.  Those are the positive aspects.

However for a solar installer, it is difficult to get business if you cannot give the potential customer an installation schedule.  I am right now, waiting on several collectors to show up so I can finish two jobs.  I am also leary of Congress and the lack of progress on the renewable energy tax credits.  As I have said before, unless they pass, a great majority of home owners will not be able to afford solar thermal systems.  I do not want to take on a large inventory of flat plate collectors that I will not be able to sell in six months.

And so we wait.

I curse incentives and subsides.  Too much tinkering around with the market forces if you ask me.

It is a drag, but shopping around is necessary to find the best price. Here is what I found:

1. State Farm, would not even talk to me. I spoke with three of there agents who stated that the field (solar installations) has not been around long enough, and that I had not been in business long enough. I will remember that in a few years when “The good neighbor” comes a calling looking to sell insurance.
2. Local insurance agencies can vary greatly. Some people know what they are talking about, some do not.
3. I found the best insurance deal through my bank, the Hudson Valley Federal Credit Union. They have and insurance company called Insurance Agency of the Hudson Valley, who have been very helpful

Even so, I gave them as much information as possible. The issue with solar equipment installation is it encompasses many areas. For example, I may do some light plumbing during a solar hot water system installation, but I am not a plumber. I may also do some electrical work during a PV installation, but I am not an electrician. I may place solar panels on a roof, but I am not a roofer. The generic category that best encompasses all of the many areas a solar installer may work is “Millwright.” From the Bureau of Labor Statics web site:

Millwrights install, replace, dismantle, and repair machinery and heavy equipment used in power generation, including wind power, hydroelectric damns, and natural gas turbines, and in manufacturing plants, construction sites, and mining operations. The development of new technologies requires millwrights to work with new industry-specific and highly complex precision machines. Some of these machines have tolerances smaller than the width of a human hair.

The millwright’s responsibilities begin before a new piece of machinery arrives at the jobsite. Millwrights consult with production managers, industrial engineers, and others to determine the optimal placement of the machine in the plant. Some equipment, such as a metal forging press, is so heavy that it must be placed on a new foundation. Millwrights either prepare the foundation themselves or supervise its construction. As a result, they must know how to read blueprints and to work with a variety of building materials.

When the new machine arrives, millwrights unload, inspect, and move the equipment into position. To lift and move light machinery, millwrights use rigging and hoisting devices, such as pulleys and cables. With heavier equipment, they may use hydraulic-lift trucks or cranes. Lifting such heavy equipment requires millwrights to understand the load properties of cables, ropes, hoists, and cranes.

While that is not a dead on description, it is pretty close.

As far as limits go, pretty standard:

• $1,000,000 each occurrence
• $100,000 rented property damage
• $5,000 medical expenses any one person
• $1,000,000 Personal injury
• $2,000,000 general aggregate
• $1,000,000 products

• Home heating oil $3.484/gallon
• Propane $2.851/gallon
• Electric $0.138 kWh
• Natural Gas $1.926 therm
• Solar $0.00
• Wind $0.00

Will people get that? I know many are rushing off to trade in their SUV’s for fuel efficient cars, but will they consider the energy they use at home as well? Those are things that I want to find out.

Right now, the solar industry is dependent on government subsides, there are no two ways about it. Without generous help from the government (federal and state) neither solar thermal nor photovoltiacs would be viable except in situations where grid power was unavailable (i.e. remote cabins, telecommunications sites, etc). In fact, in the mid 1980’s the industry was brought down to almost nothing as the Reagan administration killed all the tax incentives that were then fueling the solar sector. Will congress restore the tax breaks? Only time will tell. Even if they do, it will take a huge effort to move them away from their corporate sponsors toward the less corporate renewables.

I was listening to an interesting report on the local NPR station on my way home from work today. Amid reports of troubled economic times and other bad omens, there was an upbeat report on the Solar economy right here in the Hudson Valley. You can listen to an .mp3 of the report here (opens media player window). Basically, the it speaks about TSEC (The Solar Energy Consortium) based in Kingston, NY. This is more along the lines of research and development, but that is what will fuel the green economy in the future. It is clear to me that the sustainable movement must be able to stand on it’s own, without government assistance, to succeed. This is a tall order, considering how unfavorably the deck is stacked against renewable energy due to the huge subsides given to coal and oil.

It is, however, possible.

For the short term, the solar energy sector may well be able to weather the up coming recession as more and more people are aware of it and are looking for ways to save money. As much as we would like to believe that the human race is altruistic and will alter it’s behavior of the benefit of the planet, economics trumps environment.

For the long term, the only way that solar, wind and other renewable energy sources will survive is if they become competitive with fossil fuels on their own. This means that fossil fuels have to become more expensive (than they already are) and renewable energy, particularly photovoltaics must become less expensive.

Perhaps it would take no fewer than five phone calls, three e-mails, one canceled order, one phone number miss-assigned, a threat to use the cable TV’s phone system and about three weeks for the phone tech to finally show up and wire it to my office. All this of course, provided by the so called “Primary phone service provider” in our area. No, it’s a good thing that I live now so that none of those things happened when I ordered my new business phone number.

By the way, if you wrote down the first number published for Sun Volt Solar, it is wrong. The correct number is (845) 626-2627.

They did say, do not publish the phone number until after it is installed, so I guess that I was warned. Now I can finally order my business cards.

Click on picture for hi-resolution view of site assessment.
This is why we offer solar site assessments using a Solar Pathfinder. This is a really good tool for determining how well a solar system, either PV or Thermal will work. Generally speaking, properly sizing a grid connected PV system is pretty cut and dry. Properly sizing a stand alone PV system can be tricky, especially if critical use situations like emergency communication sites. The Solar Pathfinder has associated software that will find the nearest National Weather Service (NWS) office data. This allows the software to access the 30 year average weather conditions on a month by month basis. All of this give a pretty accurate picture of local site conditions and the installer can budget for the worst case scenario.

Solar thermal installations also can vary. A typical solar domestic hot water system with a backup electric heating element can be sized according to the number of people living in a house. Solar space heating system, such as radiant floor system require much more planning and attention to heat loads. Again, the Solar Pathfinder can assist in these calculations. Although it is set up to do mainly PV sites, it can be used with solar thermal installations by using the energy output in kWh/M². I have an excel spread sheet which I can plug these numbers into and come up with an estimated system energy production in BTU and Therms.

Naturally, all of this takes time and effort to complete. We, therefore, have a policy of charging $200.00 for a site assessment, including a written report. This fee will be refunded if the property owner purchases the system from Sun Volt Solar. Some people have told me that for a little more money, they can buy their own Solar Pathfinder. That is true, however, just because someone owns a scalpel doesn’t make them a surgeon.

Conducting a solar site assessment for potential customers does several things. You get some one on one time with a potential customer. This can tell you a great deal about why the customer is interested in solar in the first place. Sometimes customers have greater expectations than are realistic. This is a good opportunity to educate them as to what is possible with solar systems. It should also show the best placement for the solar panels or collectors or any corrective actions needed, such as tree removal, by the property owner.

The site assessment should follow a standard report format. Beginning with a general site conditions, the expectations of the property owner, the type of system, type and size of structure, street address, geographical coordinates are nice to include.

Then more specific information such as the specific type and size of the system, how much and what type of energy is used by the building, and what percentage of this energy is expected to be offset by the solar system.

I always include the manufactures product brochures along with the site assessment. These usually have pictures of the equipment along with general information about the equipment and manufacture.

I felt that rather than become a pain in the rear end, I’d rather just come up with something unique for the area and be done with it. So, Sun Volt Solar it is. Good thing I have not printed any stationary or business cards yet. Soon. Soon.

What McConnell and the other Republicans are missing is the fact that change is in the air. The environmental and energy issues are too large to ignore, and enough people have taken notice that it can no longer be business as usual. Momentum favors the things that are in motion. At the risk of creating a public backlash to the Republican party in general, these Senators are on the road to greater dependence on oil and coal, not less. I hope and pray that the voters of this country are paying attention, taking notes and looking at the alternatives. If so, I would postulate that these stalwart Republican Senators, who are only interested in voting the party line as defined by Bush, are treading the path to their own reelection defeat and subesquent retirement ceremonies.

For myself, the decision on whether or not to jump fully into the solar business hinges on whether or not the tax incentives will be renewed. Without the tax incentives, both federal and state, it would be difficult to make a living in the solar business. We rely on incentives to even the playing field and make solar thermal, photovoltaic and wind turbine technology affordable to the average home owner. Even with the incentives, it can be a tough sell, especially to someone who does not fully understand the technology, or appreciate the environmental benefits of a solar installation.

If the big oil and coal companies were not receiving huge incentives from the government to produce cheap energy, these renewable energy incentives would not be necessary. This is the European economic model, they have very high energy prices, which makes renewable energy competitive with conventional energy systems including nuclear power. This would be what I would call, a true market system. Something to think about.

New York State has an excellent photovoltaic incentive program through NYSERDA. Unfortunately for those just starting, in order to qualify for those incentives, you have to be a certified photovoltaic installer through NABCEP. As they advertise in all the trade magazines, it is the certification “that is hard to get” mostly due to the experience requirements. Of course, this is a catch 22, how do you get the experience if you can not be a certified installer without experience?

Solar Thermal installations also have a tax incentive through New York State, but not enough to make it viable without the additional federal tax incentive.

As of now, my business plan includes both installation work and some type of retail sales. Without both these components, the business model does not work, I will not make enough money to feed my family and cover all my expenses, so my future in the solar business hangs in the balance. Here are some particularly critical swing votes that could push support for the energy bill over the critical, filibuster-proof 60 votes mark. If one of these Senators “belongs” to you, call, call and call again:

Coleman (R-MN)
Collins (R-ME)
Corker (R-TN)
Craig (R-ID)
Crapo (R-ID)
Ensign (R-NV)
Greg (R-NH)
Grassley (R-IA)
Levin (D-MI)
Lugar (R-IN)
McCaskill (D-MO)
McCain (R-AZ)
Sessions (R-AL)
Smith (R-OR)
Snowe (R-ME)
Specter (R-PA)
Stevents (R-AK)
Sununu (R-NH)
Thune (R-SD)

Anything you can do would be a help.