Don't Get Left in the Dark

Over 15,000 homeowners in San Diego Gas & Electric (SDG&E) utility territory have gone solar since last year, and the vast majority are likely unaware of the financial impact they will experience as a result of new solar rates. A typical homeowner may lose tens of thousands of dollars in savings over the lifetime of their solar power system if it is not designed to consider the new solar rules and rates.

Under former solar rules, it was simple for solar companies to design a solar power system that resulted in a $0 utility bill. A solar company looked at how much energy a household used on an annual basis and designed a solar power system to produce that same amount of energy per year, regardless of when the system produced energy or when the home consumed energy.

Since April 1, solar customers in SDG&E’s territory have been on new solar rules, which includes placement on a mandatory “time-of-use” rate. Before then, new solar customers could elect to be grandfathered into the traditional tiered rate structure for five years. Now, an in-depth analysis is needed to design a solar power system because with time-of-use rates, SDG&E charges more for the electricity depending on when a home uses energy in a day, not just how much the home uses in a given month.

SDG&E now charges solar homes on time-of-use $0.29 for electricity consumed during the daytime “off-peak” hours, and $0.54 for energy consumed in the evening “on-peak” hours. Solar doesn't work at night when the utilities want to charge more, so a battery allows homeowners to store their solar power and use it when electricity is most expensive. Systems not equipped with a battery will not be able to mitigate these new charges as effectively as system with batteries, according to Southern California-based Sullivan Solar Power.

A typical family who goes solar with a battery saves roughly $80,000 over a 20-year period. If their neighbor goes solar without a battery at the same time, the neighbors will pay hundreds of dollars per year in additional unavoidable costs. Over 20 years, using a six percent rate escalation, the family without a battery will have missed out on $8,400 in savings.

“Many local solar companies are saying batteries are unnecessary or are only for back-up power, and that's patently false - batteries allow solar customers to maximize their return on investment,” said Daniel Sullivan, founder and president of Sullivan Solar Power, “The majority of families going solar in Southern California have no idea about the huge financial impact these new rates are having because their solar company doesn’t fully comprehend it, therefore these companies do not teach people the importance of incorporating a battery.”

For more information about solar paired with energy storage, residents are invited to attend the La Jolla Solar Experience on Aug. 4, 2018 at the La Jolla Riford Library. To learn more about this event, visit www.sdsolarexperience.org.

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About Sullivan Solar Power

Sullivan Solar Power is a turnkey solar system provider that delivers solar electric projects from concept to completion. The company has installed over 70,000,000 watts of solar power ranging from small-scale residential to large-scale commercial and municipal systems. Sullivan Solar Power was founded by Daniel Sullivan in 2004. Sullivan Solar Power has a longstanding A-plus rating with the Better Business Bureau, with no complaints filed since the business began. The firm has been named one of the fastest growing energy companies in the nation by Inc. Magazine and services all of Southern California. Sullivan Solar Power is currently installing solar at Petco Park for the San Diego Padres, which will be the largest solar power system in Major League Baseball. Regardless of project size and scope, Sullivan is committed to delivering the best products and the most qualified professionals to its customers. Visit www.sullivansolarpower.com for more information.