Subscribe to Free Hot Water Solar Blog
Receive the FHW Monthly Newsletter
|
Free Hot Water Blog
Posts Tagged ‘Solar Thermal Economics’
The Plumber’s Guide to Solar Water Heating Marketing
Tuesday, August 9th, 2011 by Solar Fred
 Photo: Flickr/srqpix
It’s no secret that many plumbing contractors are starting to look at expanding their business to include solar water heating sales and service. It’s a natural fit, since there are many similar water and space heating concepts, including pumps, tanks, pressure valves, etc.
Of course, you have to learn some new solar concepts too, such as shading and insolation, and ideal solar orientation and angles, not mention some roofing concepts.
But let’s say you learn all that through some program, such as, I don’t know, Free Hot Water’s 6-Day intensive training classes through Boots on the Roof.
Now that you’ve got the knowhow, where do you find prospects?
Plumbers have several advantages that non-plumber solar water heating contractors don’t have: Broken hot water tanks, clogged sinks, clogged tubs, leaking pipes, etc. If you’re a heating and cooling contractor, as well, even better.
The following solar water heating marketing guide is for plumbers and general contractors who visit homes and businesses for non-solar jobs.
Step One: Be ready with an elevator pitch.
The elevator pitch is an old marketing term. Essentially, it’s a 30-second pitch about your service, which you could tell to a prospect during the time of a short elevator ride.
Don’t take this literally, of course. The point here is to always have a brief, conversational opening about your solar water heating service. For example:
“I noticed you have an electric/gas/propane water heater tank. Ever thought about going solar instead? There are some great rebates and tax credits now, which have brought down the cost a lot. If you’re interested, let me know, and I can give you a free estimate.”
Don’t force this, but if you find an opening in your conversation about your current work, go for it, and see where that new solar conversation leads.
Step Two: Have your solar site evaluation tools with you.
Keep your sun eye site evaluation tool, a ladder, and perhaps even your lapt0p or iPad in your truck or van. If the above elevator pitch generates a serious conversation about solar water heating, try to do an assessment immediately. If you don’t have another appointment, the customer is free, and it’s during the day, at least do a rough evaluation. Check the integrity and type of plumbing, the roof, or pool system. Note the size and placement of their current storage tank. Ask about their water heating bills, number of people in household, etc. The more useful, valuable info you gain, the easier it will be to make the case for solar.
Step Three: Use and demo Free Hot Water’s Online solar thermal calculators
Another reason to have your laptop or tablet computer with you is so that you can use our online calculators. These tools can give you a lot of resources on-the-go, which you can use for your site assessment and/or estimate.
Also, keep in mind that Free Hot Water’s solar calculator’s price estimates are programmed at full retail markups. That’s good, because then you can use our quote to beat the calculator’s price. Of course, as a Certified Free Hot Water installer, you receive a generous discount off the components, so you’ll know your margins and size needs, especially for our pre-engineered residential and small commercial systems.
Step Four: Have brochures, estimate forms, or even better… iPad examples.
You may have come to fix a clogged sink, but that doesn’t mean you shouldn’t have gorgeous solar marketing materials on hand to show off . Those materials could  also include a photo slide show on your iPad, showing your successful solar installations. Integrate these rich, color photos into your regular presentation and allow the prospect to flip through these photographs. You might even offer to email a PDF with the photos and your brochure.
Step Five: Do a great install with quality products and great customer service. Whether or not you select products from Free Hot Water’s catalog of products, the most important marketing tool is a satisfied customer who likes your work and you.
We’re assuming you are always helpful and polite during the sales and install process. But also remember that this is the beginning of the customer referral process. So, after the install, make sure you touch base with your new solar customer every once in a while to make sure everything is working right. I guarantee that high customer satisfaction, whether for plumbing or solar installs, will lead to more referrals and more business.
That’s the plan, solar-plumbing contractors. Now get to work on that elevator pitch.
Tags: solar hot water, solar hot water calculators, solar marketing, solar referrals, Solar Thermal Economics Posted in Residential Solar Hot Water, Site Assessment, Solar Thermal Economics, Solar Thermal Training | No Comments »
Interview with CEO of SunReports on Avoiding Silent Solar System Failures
Monday, May 30th, 2011 by Solar Fred
 Don't cry over silent solar system failures...Use SunReports
The following is a shortened version of an interview with Tom Dinkel, the president and CEO of our solar monitoring partner SunReports. The interview originally appeared on SmartPlanet.com.
Tom is not only the CEO of SunReports, but he’s also a strong solar energy advocate for both PV and solar hot water. In the interview below, he discusses the advantage for solar hot water installers offering an easy to install monitoring system for customers.
***
SmartPlanet: What happens when we don’t monitor solar installations?
Tom Dinkel: The failure of the system is very quiet. There’s no smoke, klaxon horn, no flashing lights.
The problem is that you still have power — for hot water, you still are taking warm showers — but your solar generation system could be down weeks ormonths before you notice. That’s not a very good return on investment; that would be zero.
The homeowner gets a bill. They might notice that their first bill is a little higher than normal, but they pay it. The second month that it’s out of whack, it’s “Honey, why is this bill so high?” You’ve just wasted more energy than the thing costs.
We know for sure that over the course of the system — these panels live 25 years plus, inverters live maybe 8 or 10 years — you’re going to have one, probably two inverter failures. I would want to know when my inverter has pooped out.
 Free Ho Water's SR1000
It’s ironic: you’ve spent more on your solar array than your [Toyota] Prius, but there’s no dashboard on it.
Installers in California are required to provide a 10-year warranty on these systems. But they have no risk mitigation strategy. So we give them one dashboard, one Google Maps-based portal, where they can see their entire installed base. They can manage their entire installed base by exception. It’s a really useful tool.
SmartPlanet: How do you get installers to bite?
Tom Dinkel: It hasn’t been particularly hard. The hardest thing has been getting word out that the technology exists. Traditional monitoring has a power supply, web server and data logger that all have to get pinned together. The typical installer does not know what a subnet mask is.
We’ve designed a plug-in process. Our most common call from the field is, “I just did this really quickly, did I miss a step?”
The solar hot water guys have never thought of solar monitoring. The solar panel guys generally don’t unless they’re vertically aligned. It’s the inverter guys that have baked-in solutions. Where it falls down is when the customer calls. A visit by a repairman costs more than my product does.
***
In addition to being part of our online catalog, Free Hot Water is using SunReports’ solar thermal monitoring system for our own installations.
To see how easy it is to track solar thermal performance with SunReports, check out our live data feed from our recent solar thermal installation at Toadal Fitness center, a gym in downtown Santa Cruz, California.
Tags: Solar Hot Water Monitoring, Solar Thermal Economics, Solar Thermal/Solar Hot Water Posted in Solar Business Resources, Solar Hot Water, Solar Hot Water Monitoring | No Comments »
Very Interesting Graphics and Charts for Solar Thermal Potential
Tuesday, May 24th, 2011 by Solar Fred
No matter what you think about the current presidential administration, the current US Department of Energy is huge proponent of solar technologies under Secretary Steven Chu, a Nobel Prize winning scientist. Case in point is the DOE’s development of Solar Heating and Cooling Roadmap, which should be released in its final version this year.
We wanted to share a few of the charts in the draft of the roadmap, which show how solar is being used around the world, its potential in the U.S., and our “take-away” from these graphics.
Chart 1: First, let’s look at the number of solar hot water installations in the U.S., from 1974 to 2010. As many solar water heating veterans and arm chair historians recall, there was a big boom and a bust in solar water heating in the 1970’s and early 1980’s. The boom was driven by energy independence incentives driven by the OPEC oil embargo. The bust was a result of the embargo ending and President Reagan ending those subsidies. The take away: The US needs pro-solar policies and incentives in order to grow solar water heating consistently. That’s why Free Hot Water is a member of SEIA, and we urge you to support them, as well.

Chart 2: Now, let’s look at the water heating energy sources in the U.S. As we can see, solar is a sliver in the chart, natural gas takes up 54%, but there’s that 39% of the U.S. who are using inefficient and expensive electricity to heat their water. The take away: There’s a huge untapped electric water heating market ready to be replaced by solar water heating. Build a marketing message to those customers.

Chart 3: Let’s move on to energy usage for residential energy. Between space heating, space cooling, and water heating, there’s an amazing 72% of the pie chart that could be replaced with various solar thermal technologies. The take away: Again, the U.S. has so much potential for clean solar water heating technology, but they just don’t know it. More marketing and strong solar policies are needed to help grow demand.

Chart 4: We love this one: A survey of 21 countries by the International Energy Agency, Solar Heating and Cooling. Program shows actual uses of industrial solar thermal systems, demonstrating the wide range of potential uses for solar thermal technologies. The take away: If you’re looking for commercial solar thermal applications in the US, here are some of the industries to target.
 (Click to enlarge)
(And don’t forget that our Free Hot Water engineers can design commercial systems for all of these applications, not to mention large apartment complexes.)
Tags: solar hot water incentives, Solar Rebates, Solar Thermal Economics, Solar Thermal/Solar Hot Water, solar water heating for homes Posted in Residential Solar Hot Water, Solar Business Resources, Solar Hot Water, Solar Hot Water for Apartment Buildings, Solar Hot Water News, solar hot water resources, Solar Hot Water Value | 1 Comment »
Free Hot Water’s Making News with Largest CSI Solar Thermal Install to Date
Thursday, May 19th, 2011 by Solar Fred
 A diagram of The Trade Winds Installation
Just wanted to share with our solar community about the news that Free Hot Water is about to start the largest solar water heating project under California’s new solar thermal rebate program. The Tradewinds, a lage condominium complex nestled in the heart of San Jose’s Blossom Valley, is a community of 320 residential units, approximately 80% of which are owner occupied.
How large is large? Well, the compound uses an average of 10,000 gallons of hot water per day for showers, laundry, dishwashers, and other residential hot water necessities. Heating water with solar energy rather than with natural gas will reduce the building’s water heating bills by as much as 60%.
Our engineering department at Free Hot Water designed a system that willl use a total of 183 commercial grade FHW7000 series solar hot water collectors that will be mounted on five tar and gravel roofs of the two story buildings in the Tradewinds complex. Additionally, our COO, Paul Burrowes, calculated that The Tradewinds will produce over 5 million BTU’s daily and save over 250,000 pounds of CO2 on an annual basis.
The Tradewinds will benefit from long-term cost and environmental savings–and also from the new California Solar Initiative (CSI) Thermal Program. The initial calculations for The Tradewinds show a CSI-T rebate value of approximately $186,240. That’s a lot off the top, but as a non-profit home owners association (HOA), the project would have saved even more from the 30% federal investment tax credit and other tax incentives that can be applied to for-profit building owners.
Free Hot Water couldn’t have done the project without the help of TBI Energy, the project manager, and Comfort Energy, the system installer and contractor of record. Breene Kerr, TBI Energy Project Director stated in our joint press release, “TBI Energy is excited to be a part of the largest solar thermal system yet installed under the CSI thermal program. This is a complex installation with three independent solar thermal systems serving hundreds of residents in five different buildings.  TBI Energy’s extensive construction management experience along with Free Hot Water’s proven products and technology gives us the confidence that this project will be successful.  California needs more installations like this one. We look forward to  providing a highly visible example of why solar thermal systems should become as common in this country as the are throughout the rest of the world.”
Comfort Energy’s president, Harry Abbot adds in the release, “It’s successful incentive programs California’s CSI program that make these large projects possible and help create more clean energy jobs for California’s present and future.”
We’re about to start installation and will post some blogs and photos of our progress. If you’re one of our partner installers in California, please let us know how we can help you benefit from the new CSI program.
P.S. Here’s the link to a news item in Builder Magzine about the project.
Tags: California Solar Iniaitive, solar hot water for apartments, Solar Hot Water News, Solar Rebates, Solar Thermal Economics Posted in Solar Hot Water for Apartment Buildings, Solar Hot Water News, Solar Rebates, Solar Thermal Economics | No Comments »
Can You Qualify for the “Section 1603″ 30% Cash Grant Program to Buy Solar?
Monday, January 24th, 2011 by Solar Fred

At the end of 2010, Congress passed and the President signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. As part of this law, the U.S. Department of Treasury – Renewable Energy Grants program, sometimes referred to as “Section 1603” program, was extended for 2011.
So, what is this grant program and who can benefit from it? We’re going to do our best to give you the basics, and hopefully you can use resources below to apply—if you’re eligible.
What is it? As part of the original stimulus packaged passed in 2009, “Section 1603” allows commercial businesses to receive a 30% cash grant from the Feds instead of the 30% Federal Investment Tax Credit. (See prior blog post about the 30% solar ITC.) Essentially, the 1603 program allows for-profit businesses to receive a 30% refund off the gross cost of their solar system.
Who is eligible? The provisions are fairly broad—for businesses. That is, you can’t get this 30% solar grant if you’re a resident, a non-profit, or a government entity. You’ve got to be a business that pays taxes, though it doesn’t mean you have to owe taxes. Quite the opposite. Unlike the 30% investment tax credit, you actually get a check from the Feds, not just a credit that you can use towards paying your taxes.
For potential solar hot water customers, this means that you can own a hotel, apartment building, Laundromat, nursing home, for-profit hospital, car wash, and qualify for this 30% cash-back program from the Feds. On the other hand, if you’re a residential homeowner, a school, college, or non-profit hospital, for example, you will not qualify. However, if you own a single family rental home under an LLC or Inc. and want to provide solar water heating for your tenants, that will qualify. Also, if you are a real estate developer with multiple single family homes, purchasing a residential solar water heating system for each home will also qualify for the cash grant.
What kind of solar system is eligible? Pretty much, any solar system can be reimbursed except for solar pool heating and passive solar construction. So, if your for-profit business wants to heat or cool the building with a solar thermal system, now’s the time. Naturally, solar water heating is also eligible, as well as solar electric systems.
By when do I have to have solar system installed? Your solar system needs to be installed sometime between 2009 and the end of 2011. They’re also allowing construction on the system to have begun by 2011.
Grant applications must be submitted by October 1, 2012, however. The U.S. Treasury Department will make payment of the grant within 60 days of the grant application date or the date the property is placed in service, whichever is later.
Can I get the solar 30% 1603 cash grant AND the 30% Investment Tax Credit too? No. It’s one or the other, and don’t even think about trying to do both. The IRS knows all. However, you are still eligible for any local or state rebates, so that’s nice. Also, you can receive any other local or federal tax benefits (other than the 30% investment tax credit.)
Those are the broad strokes of the program. If you want to find out more and apply for the grant, use this handy-dandy government website.
More questions? Give us a shout. We’ll do our best to help.
Tags: 1603 Treasury Grant Program, solar hot water for apartments, solar hot water incentives, solar hot water rebates, Solar Thermal Economics Posted in Hotel Solar Hot Water, Restaurant Solar Hot Water, Solar Business Resources, Solar Hot Water for Apartment Buildings, solar hot water resources, Solar Rebates, Solar Tax Incentives, Solar Thermal Economics | 4 Comments »
Introducing our new solar thermal cost calculator… plus bonus calculators
Wednesday, December 29th, 2010 by Solar Fred
 Our New Solar Thermal Cost Estimator... and More
“How much?” That’s perhaps the most frequently asked question in the solar business. Customers are always asking about the cost first and the technology, quality, and durability later. Okay. Fine. We get it. So, that’s why Free Hot Water has introduced a new solar thermal cost estimation tool.
Although solar thermal rebates change often in all 50 states and Puerto Rico, we receive state update news almost every week, so we’ll keep our rebate and incentive numbers as up to date as possible, give or take a few days.
Among the calculated data in our new estimation tool, you’ll receive these “bottom line” solar hot water cost figures:
- Solar Thermal System Price (est.)
- Estimated Installation Cost
- State Tax
- Total System Installed Value
- State Rebate
- Federal Tax Credit – (30% of installed cost)
- Possible 179 Deduction*
- Federal Tax on State Rebate*
- Possible MACRS State Depreciation*
- Total Estimated Net Cost
- Estimated Annual Savings $
- ROI (Return on Investment) Years
* Check with your accountant
Please keep in mind that the final estimated cost figures in our calculator are customer retail numbers. Your labor and final costs will be less as one of our partner installers, so sign up now if you aren’t one already.
On the same web page, you’ll also find several other new solar installation calculators. Once again, Free Hot Water wants to make your engineering, installation and sales process easier, so we’ve created the following new calculators:
If you have any questions or comments about the above calculators, please contact us or leave a comment below! Thanks.
Tags: solar hot water calculators, solar hot water rebates, Solar Thermal Economics Posted in Site Assessment, Solar Business Resources, Solar Hot Water, solar hot water resources, Solar Thermal Economics, Solar Thermal Training | No Comments »
A Telling InfoGraphic: The Average American’s Energy Consumption. Is this you?
Saturday, September 11th, 2010 by Solar Fred
 InfoGraphic from VisualEconomics.com (Click for Larger Image)
I love infographics. Anyone can throw out facts and figures about the average American’s use and source of energy, but it’s another thing to show that information visually and comparatively.
At a glance of the above, I know that:
- 20% of our home’s energy usage goes into heating water. 20%. That’s a huge chunk. Obviously, solar hot water would eliminate a good portion of that chunk, but let’s go further.
- We can also see that 41% of our energy cost is from space heating, to heat our homes. Guess what. Solar thermal (hot water) systems can also be configured to eliminate most of those costs as well. So now we’re up to 61% of our energy costs that could be significantly reduced. But wait there’s more.
- Another 8% is used for air conditioning. And wouldn’t you know it, there are some new solar thermal systems that can be used for cooling air to for air conditioning. So, let’s add another 8% for a grand total of 69% of energy costs that could be eliminated with some type of solar thermal system.
- Naturally, many people use electricity, so if you wanted to kick in purchasing a solar electric system (a different type of solar panel/system than solar hot water/thermal), you could eliminate the other 31%.
Of course, you can go down to the bottom of this infographic and quickly see that most of our energy is currently coming from coal, gas, and oil. But there’s something that this infographic can’t tell you, and that’s to act.
Whether you’re concerned about the recent environmental disasters, increasing costs, or our dependency on foreign oil, don’t just shake your head about this graphic. At the very least, you can:
- Get an energy audit. Knowledge is power (pun intended), and you’re unlikely to do anything until you know where you stand. (We can help you do that, by the way.)
- Research the solar upgrade costs by getting a quote. Again, you may be concerned that doing something is too costly, but you can’t know that until you get a real estimate–which is free–so what can you lose but a little time? (Have you seen our case study of an apartment building going solar?)
- Support clean energy politicians and initiatives. At last, U.S. policies are beginning to support solar and other types of renewable energy, but that could change every time there’s a local or national election. If your candidate is still supporting oil and coal, then tell them to stop and/or vote for someone else. Coal, oil, and gas companies have been getting subsidies for a 100 years now. Shouldn’t they be mature enough to make it on their own now? I think they’ve had more than a fair share of our tax dollars, don’t you?
Tags: Solar Hot Water News, Solar Thermal Economics Posted in Site Assessment, Solar Hot Water for Apartment Buildings, Solar Hot Water Value, Solar Thermal & Solar Hot Water News | 1 Comment »
A Level Playing Field: Why Solar Subsidies are Just as Fair as Oil and Gas Subsidies
Tuesday, July 20th, 2010 by Solar Fred
Many times in this blog, we inform our readers about solar hot water subsidies and tax breaks. Well, some people comment to me that solar should stand on its own and shouldn’t be subsidized…except what about all of the oil and gas and coal subsidies?

And yet, a number of people say that solar shouldn’t have subsidies, and that the technology should stand on its own and that the government shouldn’t be supporting solar subsidies. My answer to that is this: fine.
That is, I understand the concern that tax payers shouldn’t subsidize a relatively new energy technology and that the market should determine price.
However, if you’re going to play that free market game, then it’s only fair that oil, coal, and gas companies play by the same rules, right? Therefore, oil, coal, and gas companies shouldn’t get subsidies either, and boy do they get subsidies.
- FACT: From the New York Times: “According to the most recent study by the Congressional Budget Office, released in 2005, capital investments like oil field leases and drilling equipment are taxed at an effective rate of 9%, significantly lower than the overall rate of 25 % for businesses in general and lower than virtually any other industry.”
- And with oil’s windfall, low-taxed profits since 2008, when oil prices sky rocketed, talk about a subsidy! But let’s dig further.
- FACT: Also mentioned in the same article is the fact that the oil and gas industry spent $340 million on lobbyists since 2008, according to the nonpartisan Center for Responsive Politics, which monitors political spending.
- FACT: According the Environmental Law Institute study, between 2002 and 2008, the coal and oil companies received $72 billion over the seven-year period, while subsidies for renewable fuels totaled only $29 billion. That’s 3.5 times as much. But we can dig even further…
- FACT: President Obama’s 2011 fiscal year budget proposal sent to Congress calls for eliminating more than $2.7 billion in tax subsidies for oil, coal and gas industries. If passed, U.S. Tax payers will save (not give oil companies) 38.8 billion dollars.
I don’t get it. Why should we be subsidizing technologies that have been around for 100 years? Shouldn’t the oil and gas industry “stand on its own” and let the free market decide the winners and losers?
So, yeah, solar needs subsidies to encourage Americans to change their minds and break from the coal and oil status quo. But if you want to talk about solar’s high cost, then one wonders how much coal and oil would really cost without American tax payers subsidizing their dirty-air profits.
One last dig into coal and oil costs:
- 29 miners lives were lost in the Upper Big Branch Mine disaster in 2010.
- Another 11 lives were lost in the BP oil explosion.
- Thousands more lives have been lost in similar fossil fuel energy accidents in the last 100 years.
There has never been a single day in recorded history when so many lives were lost to solar technology in one day in a single event, and I doubt there ever will be.
.
Tags: solar hot water rebates, Solar Thermal Economics Posted in Hotel Solar Hot Water, Solar Rebates, Solar Tax Incentives | 5 Comments »
The Marines Are Coming…for Solar Hot Water
Tuesday, June 22nd, 2010 by Solar Fred
 Photo:Flickr/Dave Kleinschmidt (not Camp Lejeune)
The Marines are marching to the beat of solar hot water. Listen to this NPR report for more details, but the gist is that the Camp Lejeune Marine Corps Base in North Carolina is putting solar hot water heaters on its on-base housing units.
These houses are generally rented to Marines with families, but the report says that the base will be using solar hot water for other base facilities as well, such as the hospital. The Marines don’t actually buy the solar panels, but instead are using a relatively rare solar hot water power purchase agreement (solar PPA).
Solar PPA arrangements are rare with solar hot water systems, but much more common with solar electric (PV) systems. With a PPA, the solar company installs the systems for little to no up front cost, but the panels are not owned or maintained by Camp Lejeune. Instead, the panels are owned by the installer. So how does the installer make money?
Basically, by becoming a mini-utility. With today’s solar hot water monitoring systems, the solar installer can re
motely measure exactly how much solar hot water is being generated by the home’s solar panels. Then, similar to a utility, the home owner is charged a rate per therm of solar hot water generated.
To see a live example of a solar hot water monitoring system, check out our own Apollo1 monitoring system from Sun Reports. The data you see here is live and coming from the our 4000 series solar collectors that areinstalled on the roof of our San Jose headquarters.
Just like buying versus leasing a car, you’ll save more money over the long run when buying rather than PPA structures. That’s especially true with all of the rebates and incentive programs available right now.
For more information about innovative solar financing or any financial questions about solar hot water for your home or business, please contact us. At Free Hot Water, we sincerely want our customers to understand solar economics as well as solar technology.
Tags: Solar Hot Water Monitoring, Solar Thermal Economics Posted in Solar Hot Water Monitoring, Solar Hot Water News, Solar Hot Water Value, Solar Thermal & Solar Hot Water News, Solar Thermal Economics | No Comments »
|