Local green energy company installs 20,000th solar power system in SLO County
In 1975, Cal Poly graduate Mike Emrich founded a green energy company in San Luis Obispo County after the 1973 oil embargo began to strain the energy industry.
That company became Solarponics, which, according to its website, was one of the first to begin installing solar power systems in SLO County.
Some 47 years later, Kristian Emrich — Mike’s son and current president of the company — oversaw the installation of Solarponics’ 20,000th solar power system in the county.
Emrich said the milestone is a “validation” of his father’s vision for sustainable energy on the Central Coast, which started with the installation of solar water heaters, some of which are still in use today.
“(Solarponics has existed) a lot longer than I think (Mike) ever anticipated, and maybe it’s even exceeded his expectations in some ways,” Emrich said. “I think he’s sitting there in retirement, enjoying the direction that the world’s going at this time.”
20,000th customer touts local approach
Todd Davidson, owner of Los Osos-based Sage Ecological Landscapes, said his company — which specializes in revamping landscapes to be more ecologically friendly by replacing water-inefficient grass lawns — wanted a local approach when it considered going green.
Davidson said as a pair of companies that have “shared core values,” the partnership made sense.
“There’s a lot of really huge solar companies out there — you’ve got Sunrun, and a bunch of others that are ginormous corporations, yet, Solarponics is still a long-haul operation right here on the Central Coast,” Davidson said.
Sage Ecological Landscapes’ 1,000-square-foot headquarters — atop a mixed-use development that includes Davidson’s own home — contracted Solarponics to install a solar power system to power the building and the workshop it houses.
Davidson said the installation was quick and easy, and is designed to nearly completely replace their reliance on the power grid.
“(Solarponics) took our last year’s worth of electrical useage, going through winter, spring, summer and fall, and basically designed a system that would would offset us,” Davidson said.
Now, that power system, which was installed near the building’s roof deck on Nov. 17, supplies all of the power to Davidson’s shop. Davidson said the installation cost around $23,000 in total.
PG&E still supplies some power to buildings that receive solar power, Emrich said, but functions more as a “backup” than as the main power supply.
“It’s almost like (PG&E is) the generator. They’re the emergencies energy supply, but you are self-sufficient between your solar (array) and battery as much as possible,” Emrich said.
In a residential setting, which Emrich said makes up around 90% of Solarponics’ install base, the average customer can expect an installation cost between $20,000 and $25,000 before tax incentives.
Emrich said while that initial cost may be high, the energy savings over time will pay for itself.
“If you compare what you’re going to pay the bank monthly versus what you’re paying PG&E, you’d be saving about 20 to 25% out of pocket,” Emrich said.
Solar to become more expensive despite benefits
According to Solarponics’ news release on the milestone, the company’s 20,000 power systems in SLO County will save homeowners around $600 million in energy expenses over the lifetime of the systems.
Over that same lifespan, the solar energy systems will also provide significant carbon dioxide offsets, the release said.
“These systems alleviate grid stress and reduce the risk of grid outages,” the release said. “More importantly, these solar energy systems will offset 4,320,000,000 pounds of CO2, the equivalent of burning 216 million gallons of gas, or 4.5 million barrels of oil.”
According to Construction Monitoring, a site that tracks renewable energy adoption, the release said, about 25% of owner-occupied homes in SLO County have some form of solar energy supply.
The Solar Energy Industries Association’s data on the subject showed that rate is slightly higher than the state of California’s 19%, and far higher than the country’s solar adoption rate of 2%, the release said.
However, Frank Scotti, a spokesperson for Solarponics, said newly adopted changes to the state of California’s solar subsidies may hurt the cost effectiveness of solar for consumers.
On Dec. 15, the California Public Utilities Commission reduced subsidies for rooftop solar installation known as net energy metering (NEM), a form of compensation home solar owners can receive for their excess energy.
This loss in subsidies could disincentivize solar adoption, Scotti said, potentially leading to a 40% drop in solar adoption in 2023, and another 40% drop the following year.
Solar owners are currently getting rates from NEM 2, Scotti said, which reimburses owners for the full retail value of each kilowatt hour of energy they return to the energy grid at around $0,30, while NEM 3 reduces this reimbursement to $0.08 per kilowatt hour.
“NEM 3 will encourage battery storage adaptation, but it will also greatly hinder solar PV adoption,” Scotti said. “It really is one step forward, two steps backwards.”
However, Scotti said anyone who submits an application for solar by April 14, 2023, will potentially secure a NEM 2 rate plan for the next 20 years, which is guaranteed by the rule change.
That could lead to greater demand for solar power systems and solar batteries in the first quarter of next year, Scotti said, though this option would likely be twice as expensive for consumers.
Emrich said while as current solar arrays are more efficient and powerful than ever, the solar power model is “not light-years ahead of what what it was 10 years ago,” and the rapid cost depreciation that the industry saw form 2008-2016 has largely passed.
With more tariffs, global supply chain problems and inflation, Emrich said prices on solar power systems are more likely to appreciate than fall, but not to the same extent of standard energy costs.
“We’re hearing that due to inflation and fuel costs and all that, PG&E is putting in requests of 20 to 30% rate hikes over the next year or two,” Emrich said. “You’re pre-paying at a cheap price for your energy for 25 years. It’s a heck of an opportunity.”
This story was originally published December 26, 2022 at 5:30 AM.
