Homeowners, rooftop solar companies rush to meet upcoming deadline

Mar. 4—Local homeowners who were on the fence about whether to have solar panels installed on their roof are suddenly rushing to have the work done in advance of a state deadline a little more than a month away.

Solar contractors say they're doing all they can to place orders and turn in paperwork in time so that homeowners can take advantage of electricity reimbursement rates that are about to become less generous than they have been.

The change to California's Net Energy Metering program will be significant — the difference between saving enough money to pay off a solar investment in seven to eight years, as things stand now, versus 10 to 12 years once the new system kicks in April 15, according to one industry estimate. Homeowners with photovoltaic solar panels in place by then will not see a change in their power reimbursement rates, hence the collective haste to sign up fast.

But while solar systems by themselves won't be as lucrative as they have been, the new rate structure will bring new incentives for people to buy home batteries that can help make California's power grid more reliable. For that reason, solar companies bracing for a drop in solar installations are also looking forward to a jump in battery orders.

CEO Jack Darrah at Bakersfield-based solar contractor Bland Co. estimates his sales from this month and last are almost triple what they were a year before, such that he has had to hire more people just to handle the higher call volume.

"It's very busy," he said. "It definitely is advantageous" for business.

Francisco Herrera, sales manager at Bakersfield's BSW Roofing, Solar & Air, said he's also seeing a surge in business, even though the company hasn't increased how much it spends on advertising. The last couple of months have been hectic, he said, as callers respond to ads calling on homeowners to beat next month's deadline.

"Everyone's promoting it," he said.

The bump in business caps what has been a contentious process before the California Public Utilities Commission, whose consideration of reducing rates paid to homeowners selling power to the grid was bitterly fought by the rooftop solar industry.

A primary reason the CPUC opted to move forward with the change in mid-December was a concern that residents with solar ended up paying so little for their use of electrical infrastructure under the existing rates that costs were shifting inordinately onto others who, for one reason or another, are without rooftop systems.

But now a different worry is arising that has more to do with the impending deadline. As homeowners hurry to sign up for new solar panels, there's a concern that due diligence is flying out the window.

The California Solar & Storage Association trade group has been cautioning homeowners to keep their own interests in mind. That is, make sure the contractor who puts in the system is licensed to do the work and, ideally, has a membership with a reputable trade association that emphasizes regulatory awareness and ethical operations.

"Don't go with whoever called you up," said the group's executive director, Bernadette Del Chiaro.

Her association emphasized in a recent news release that consumers should shop around for bids and be skeptical of offers that sound too good to be true, such as an end to monthly electric bills and promises of an unlimited power supply, because those expectations are unrealistic.

Another important point to keep in mind is that there's no need to have the system in place by midnight following April 14, as long as three specific documents are on file by that time.

The first is a detailed contract drawn up and signed by the contractor that shows exactly what size system is being put in, where and at what cost.

Also needed is a permit indicating local government has given approval for the construction necessary. Lastly, the local electric utility, such as Pacific Gas and Electric Co., must file a power interconnection notice.

But if all that sounds easy enough to get, it's no excuse to hold off until the last minute.

"You don't really want to wait until April 12," Del Chiaro said. "If you want to go solar, you really need to move fast."

She noted that business this year is already up statewide by more than a third. The reported number of power interconnections carried out in January, 21,412, is up 37 percent over a year before.

Data shows Central Valley customers have seized the opportunity to a greater degree than homeowners elsewhere in the state.

PG&E reported that ratepayers in Fresno and Kern counties lead its territory in rooftop solar installations. Kern alone had a total of 67,182 rooftop interconnections as of Jan. 31, for a total of 765 megawatts of power capacity, the utility said.

Bland's Darrah said companies like his want to help homeowners meet the deadline. He said customers need to move quickly and then be patient.

"It's fun right now," he said. "You know, we're busy as heck, doing everything we can for customers to get them in under the gun, if you will."