When it comes to using solar energy to power your home, does it seem like you are choosing between your pocketbook and the planet? June of 2011 was the first month ever in which more Californians opted for third-party-owned solar over cash purchases - meaning they install solar panels on their roofs without having to own them. A major factor in this trend is San Francisco's SunRun, the company that invented this business model for home solar.
Since 2007, SunRun has been making solar affordable nationwide, allowing homeowners to install for as little as $0 down. SunRun, the country's top home solar power company, and PV Solar Report, an authority on California solar market data, recently released a report announcing the top solar cities in California for the first eight months of 2011. I asked Lynn Jurich, SunRun's president and co-founder, about why these California cities are leaders in solar power.
How SunRun works
SunRun does not manufacture solar panels. Instead, they let American families switch to solar energy without spending $30,000 in startup costs. As part of their $0 upfront offer, SunRun installs the panels, maintains the system, and pays any additional insurance costs. Once this clean energy source is on your roof, homeowners pay a fixed energy rate for the next 20 years that is comparable to their previous monthly energy statement and often lower. Over time, they save tens of thousands of dollars.
Secrets behind California's solar success
When reviewing the cities that were chosen by SunRun and PV Solar Report, the first question you ask yourself is why they were selected. In the press release , it said that the cities highest on the list also have higher utility bills compared to other cities in the state. For this reason, solar makes even more sense in these cities because it's such an affordable alternative to the traditional utility.
The list is based on the California Solar Initiative's (CSI) database of residential rebate reservations through August 31, 2011, and includes San Jose, San Diego, Bakersfield, San Francisco, Fresno, Corona, Simi Valley, Santa Rosa, Murrieta, and Lancaster. The CSI data was compiled from California utilities reports for SDG&E, PG&E, and SCE.
"Making the monthly cost of using solar affordable is the key," according to Jurich. She went on to say, "In order for solar to become mainstream, we needed to make the decision easy. The more educated the consumer, the more likely they are to go solar." Studies have shown that solar adds to the resale value of your home, and Jurich verified, "When you sell your SunRun home, the contract transfers to the new home buyer at the rates you locked in."
Myths around the solar industry
PV Solar Report's analyses also indicate that going solar without buying the panels - known as third-party-owned solar or solar power service - is becoming the preferred option in California. This does not surprise Jurich, who spent time over the past year dispelling the miseducation of consumers' attitudes toward residential solar affordability.
"The big myth out there is that solar is too difficult and too expensive. SunRun does a free evaluation with each potential client and shows them exactly what it would cost to install solar in comparison to what they are paying today. For many Americans, solar is affordable now."
Jurich continues this idea by explaining that home solar is becoming affordable in large part because of the solar service business model that SunRun developed. She said, "What we learned early on is that most homeowners want to switch to solar, but it's a hassle to buy the system and worry about maintaining it. SunRun eliminates this barrier because we own and maintain the system on your roof, and the homeowner simply pays for the power it produces."
SunRun helps create jobs
Jurich was proud to report, "The idea that the green industry isn't creating jobs is another myth. SunRun is contributing to green job growth, which is currently at nearly 7 percent green as opposed to 0.7 percent for the general economy in 2010. For every eight houses that go solar, it creates one full-time job." As the largest provider focused solely on residential, SunRun increased headcount by 200 percent in 2010, and their partner network supports 3,000 employees.
It also appears that their ability to create jobs will only continue. SunRun's current addressable market is 3.7 million homes and could grow to 12.5 million by 2012. By undercutting utility rates in nine states, they are expanding into new markets rapidly and educating consumers along the way.
How can cities incorporate more solar power?
Although SunRun is focused on residential solar, they are fully aware of what cities can do to incorporate solar power in their communities. Again, Jurich sees the main barrier to more solar power as a permitting issue at the local and state government levels. "We are working in nine states, but a big barrier is local permitting costs. One major thing cities can do to make solar more affordable is streamline permitting. Unnecessary red tape costs an estimated 1 billion per year across the industry." SunRun has developed two extensive reports on this issue that are available at SunRunHome.com under their permitting tab.
Jurich goes on to suggest that local lawmakers could make more of an effort to review recommendations from the U.S. Department of Energy. At their SunShot Initiative webpage at SolarAmericaCommunities.energy.gov, they have a link to "Solar Powering Your Community: A Guide for Local Governments." This is an informative best practices guide in which the federal government discusses red tape terminology that stands in the way of solar energy reform.
Maryam Louise is a former English instructor and materials developer for the Department of Defense Refugee Resettlement and Education Program in Louisville, Kentucky. Since 1997, she has contributed to academic works on the topic of gender. She has been living in the Bay Area since 2009, continuing her 15-year career in media.
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