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Since I was mentioned along with my company's name in the
article, I would like to provide some added perspective.
Low Power Output from LA Convention
Center Solar Panels?
I believe the purpose and LADWP's design of the solar
power system at the LA Convention Center was not optimized for
power production, intentionally, since the solar panels were
not installed on the rooftop, facing south. The solar panels
on the convention center are located on the sides of a round
building and direct sunlight only strikes sections at any given
time. This PV system was designed as a showcase project, visible
from the intersection of the 110 and 10 freeways just south of
downtown. Public exposure was more important than sunlight exposure.
This highly visibly solar demonstration system is extremely effective
and has stirred the curiosity of numerous passers by, some of
which subsequently became my customers.
A Clear Message from my Customers…
Energy is fundamental to almost everything we do. We expect it
to be available whenever we want it, to be affordable, safe and
environmentally sustainable. They told us that they care about
the environment and that they want to play their part in tackling
climate change. They also believe the costs of action will be
acceptable - and the costs of inaction are potentially much greater.
We Have made a Good Start...
The LADWP Solar Program - A Phenomenal Success
At the start of the 21st century, Los Angeles is one of the world's
leading developers of clean and sustainable solar energy. With
some of the best solar resources in the United States, it's not
surprising that Los Angeles is tapping into this freely available
and renewable energy source.
The goal of the LADWP Solar Program was to establish the City
of LA as a solar leader through: Increased photovoltaic (PV)
manufacturing within city limits; PV-related job creation; Increased
customer investment in PV generation; Increased market penetration;
Reduced PV costs; Reduction of infrastructure upgrade costs due
to on-site generation, and Reduced emissions associated with
electricity production.
The Program has been a Phenomenal Success
over the Last Three Years...
Success indicators include:
 Three PV manufacturers have located
to LA, an additional two PV manufacturers are actively considering
locating in LA today.
In 2003, 366 solar companies
advertised their services on the LADWP solar website reflecting
conservatively about 1,000 solar related jobs in LADWP territory.
From 1999 through 2002, the amount
of customer-owned PV capacity increased by more than 4,000%;
between 2001 to 2002 PV total LADWP generation capacity increased
by nearly 500%.
From 2001 to 2002, the number
of PV customers within the LADWP service territory increased
by 262%.
The LADWP Solar Program has installed
3 MW of PV generation capacity between 1999 and 2002. By comparison,
the total PV generation capacity installed in the remaining California
IOU service territories during this same time period equaled
about 30 MW. Thus, LADWP represents roughly 10% of the total
California grid-connected PV market. Since California represents
about 60% of the national PV market, LADWP represents about 6%
of the total US PV market - A significant accomplishment!
According to LADWP figures, during
the second half of 2002, the average cost per installed PV watt
dropped by 7.8%.
Based on LADWP greenhouse gas
(GHG) emission factors reported for a 2 kW residential system,
over the 30-year lifetime of a PV system, 3 MW of new PV generation
capacity would reduce 460 million pounds of GHG.
Recommendations for Future LADWP Solar
Program Management...
In 1999, the City of Los Angeles entered into a "compact"
with the PV industry to achieve complimentary environmental,
technology development and job creation goals. The solar industry
has responded. The City responded to the clear solar success
trend by extending the Solar Customer Incentive Program through
2010. As a result, at least two new PV manufacturers, which will
generate new employment, committed to locate in LA.
The LADWP Solar Program has the fortunate problem of being
incredibly successful. A key challenge going forward will be
how to respond to the enthusiastic and growing customer response
to the Solar Program. Several suggestions on how to resolve this
enviable dilemma.
1. Clearly make the entire
$16 million per year in Customer Solar Incentive Funds available
to city owned and non-city customers. Currently $8 million per
year is available to LADWP customers - and this fund is over-subscribed
- while the $8 million reserved for LADWP/City-Owned systems
account is undersubscribed. Greater funding flexibility would
help maximize the efficient use of existing solar incentive funds.
2. Create an annual residential
'reserve' of 35% of the solar buydown program for PV systems
10kW and under. Remaining funds should be available to all other
PV system installation types, including residential, on a first
come first served basis.
3. The PV industry supports
planned decreases on the per watt buy down as part of joint on-going
effort to create a self-sustaining PV industry.
4. Require customers to provide
system purchase confirmation within 90 days. After this time,
return "reserved" funds to the overall incentive account
to enable the maximum number of customers to participate in the
program given limited incentive funds.
Problems that Need to be Addressed...
March 2001 my company installed the first system deployed under
the Green LA Solar Power Program. Numerous times in the past
few years I had a feeling that some people at LADWP didn't really
want to achieve their publicly stated goal of "100,000 solar
roof tops by 2005." There have been constant glitches and
delays, which have kept the pace of installations at a lower
level than was achievable.
It is my understanding, since deregulation of electricity
in California 2.85% of ratepayers utility bills are directed
into a Public Benefit Trust fund for environmentally friendly
projects, which benefit the public. It is my also understanding,
LADWP lobbied to get these funds under their control from the
City of Los Angeles for the Green L.A. Program. A predetermined
amount was set aside for a solar energy incentive. The problem
is the wording in the program. "Buydown funds not spent
each year may be used for Department solar photovoltaic projects".
This means LADWP gets the money for their own use.
It appears that some at LADWP may want to use as much of these
funds for their own projects as possible. I believe the reasoning
behind this is that the Department will not have to credit ratepayers
for solar generated electricity. In effect they get the ratepayers
to subsidize solar power for their grid without having to deduct
the amount generated from incoming revenue. Perhaps having the
revised department statement "the equivalent solar power
of 100,000 residential roofs" on LADWP roofs, sold as Green
Power, at higher prices, could allow for a higher revenue stream
as opposed to a reduction.
The problem with this scheme, it costs the Department about
$17 per watt for difficult installations requiring complex engineering,
installed under the requirements of public works guidelines,
at prevailing wage labor rates; Compared to $8 per watt average
for residential systems installed at lower contractor cost.
More solar power can be installed on residential rooftops
for each block of funding, for example: Residential PV systems
typically have solar panels installed on sloped roofs facing
south, resulting in increased efficiency when compared to less
favorable rooftop orientations and inclinations. LADWP solar
program funds are increased by the capital investment made by
those who purchase PV systems, allowing more installations per
block of funding. This cash flow benefits the local L.A. economy
due to contractors hiring and training new employees, acquiring
additional work vehicles, shop space, tools, supplies, printing,
etc, resulting in new jobs while providing stability for non-solar
industry employment. Job creation and environmental benefits
are just two of the numerous benefits solar power provides.
I remain sceptical with respect to utility procurement of
solar energy when Public Benefit funds are diverted and consumed.
Utilities are in the business of generating and selling electricity
and they may, perhaps, want to demonstrate and showcase inefficient
PV system performance in an effort stall customers from installing
a competing technology, which allows for safe, environmental
friendly, on-site, grid-stabilizing, self-generation.
My greatest concern is with respect to those who audit PV
systems; will power production be accurately monitored and measured
in kwh's averaged on an annual basis, and will additional value
for PV's full range of community benefits be included?
I am confident solar power is a viable source of energy for
now and the future.
Graham Owen, Principal
GO Solar Company
12439 Magnolia Blvd #132
North Hollywood, CA 91607
818-566-6870
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