Going Solar Heats Up With State-Approved Financing
By Gina Dostler
David Savarese, project development director at Irvine’s Sullivan Solar Power, has an agenda. His mission is convincing homeowners they can reduce their carbon footprint with solar panels by taking advantage of a newly approved financing method that stretches out the investment cost. Newport Beach is one of several cities in Orange County that have opted into this program. He offers some insight for those considering using solar power.
Q: Tell me about yourself?
A: I started with Sullivan Solar Power in 2011 and headed up the Riverside office. Dan Sullivan who started up the company has been my best friend since third grade. Sullivan Solar Power is a very family oriented business and many of the employees are friends we grew up with as children. As director of project development I oversee all of sales and with 14 project developers we are designing and finding the most cost effective solar solutions for homeowners.
Q: What exactly is HERO?
A: It is a residential and commercial program that allows residents of participating jurisdictions to get financing to install energy efficiency, renewable energy and water conservation improvements. It gets re-paid through property taxes and a transferable assessment meaning the financing stays with the property, not the individual. It’s authorized by state law AB 811 and AB 474.
Q: So it’s a new way to borrow money for energy improvements.
A: Exactly. Approvals are based on the amount of equity in the home. If the property is sold, any remaining balance can be legally passed on to the new owner. This diminishes the risk of long-term home improvement investments and attractive financing terms gives incentives for property owners to make the energy efficient choice when upgrading appliances permanently affixed to the property.
Q: Who is eligible for this?
A: Anyone with 10% equity in their home can qualify for the program. You cannot have unpaid property taxes or late payments on your mortgage. It’s a great and innovative way for homeowners to go solar. It costs $0 money out of pocket and is not based off credit scores. The really cool thing is at the end of the year, the annual loan amount is added to the property tax instead. Yes, the property tax goes up, your SCE bill is eliminated, and the loan can be included in the property tax write off. The interest on the loan is tax deductible.
Q: For example?
A: If you have on average $300 a month utility bill, do the HERO program and install solar panels, you’ll have an approximate payment of $250 which drops to about $160 a month once you factor in the tax benefits at the end of the year. So it makes sense to install solar as you will lock in your payments for the term of the loan and not be subject to rate increases by the utility company. Once your system is paid off, you will receive free electricity. This investment transfers over to the new homeowner along with any outstanding financing provided by the HERO program.
Q: How is Sullivan contributing to this renewable energy revival?
A: We have an exclusive program run by Sullivan Solar Power just for Orange County, the Orange County Solar Program. Sullivan Solar Power is paying homeowners up to $2,000 cash back for going solar with us through the end of 2014. This is a way for us to give back to the communities that we sell into, and help meet the renewable energy goals of California by creating solar communities. Furthermore, Sullivan Solar Power is the only installer that donates one solar panel for every job we sell to GRID Alternatives, which is a non-profit organization. This organization allows low income households to go solar with no costs. Grid Alternatives will be installing over 90 systems using the panels that Sullivan Solar Power donates. That’s approximately 14 panels per household, making our donations quite a success.
Q: Why is going solar a good option for homeowners?
A: It’s financially beneficial and not subject to the rate increases by SCE (Southern California Edison). With the loan at a fixed rate, you are not hit with the utility rate increases that have been going straight up for the past 30-40 years. And it is definitely better for the environment and making us less dependent on foreign nations to provide our fueling and oils for us. Sullivan Solar is very passionate about what we do and part of that involves setting up a better life for future generations. There is this misconception that we have an energy shortage. In Southern California we have the most abundant source of energy sitting right above us: the sun.
Q: Is there a set amount of panels each house requires?
A: No. We do a thorough analysis based on energy usage of the household to determine how many panels are needed. We design it to offset the electric system completely so the household is able to run completely solar. Our goal is to eliminate the whole utility bill. Typically we don’t oversize the system where the system can go over 100% of the energy used. SCE won’t allow us. But we take it to 98-99 percent of the kilowatt hours, which equals 100% of electrical usage. One thing we do very differently from other solar companies, as project developers we take shade readings, measurements and lay out the system in a computer program so we can pinpoint the exact system required.
Q: Has technology advanced in solar panels?
A: No, it is still the exact same thing. But what has gotten better is the efficiency on the panels. Better efficiency means better performance over time. Panels degrade, but with this increase of efficiency, it will be at a lower rate. There are so many different panels out there, but Sullivan only uses North American-made products. The key is putting the right products over the roof to last a long time so we align with companies that will be around for the long haul to support the warranty.
Q: What makes Sullivan Solar Power different from other solar companies?
A: Founded in 2004 by Daniel Sullivan, a master electrician, in 10 years Sullivan Solar Power has become the largest residential installer in San Diego. We now have an office in Irvine as our headquarters in Orange County. With our A+ rating with the Better Business Bureau, we have never had one complaint in over 2,600 systems. We do not subcontract a single portion of the job. And most importantly, all of our installers are actual certified electricians. Sullivan is one of the 10 first solar installers in southern California.
David Savarese
Director of Project Development
Sullivan Solar Power
16 Technology Dr. Ste. 122,
Irvine, CA 92618
(949)379-0775
www.OCSolarProgram.com
