SolarUnion

“We want to be a reliable, long-term partner, so we focus on providing our clients with quality installations, strong guarantees and timely maintenance for their clean energy investments. Our goal is to enrich the lives of our clients. That’s our North Star. Every smile makes our day.”

California homeowners have a lot to gain by investing in clean solar energy. The residential solar industry is booming across the United States, but experts say residents of California are uniquely situated to reap more benefits from solar ownership than people living in other parts of the country. “The attractiveness of Solar as an Investment (SaaI) is a function of the quality of the sunlight and the prices imposed by electric companies,” explains Renzo Castillo, co-founder of SolarUnion in San Francisco. “Based on those two simple criteria, California is a great market. The quality of the sunlight is excellent and utility prices are extremely high compared to other areas in the continental U.S.”

On average, California homeowners see more sunny days and clearer skies than people living in the rest of the country, so, all else equal, solar systems in California perform better and produce more energy (kWhs) than those in other states. Because those same systems are offsetting higher energy costs from local electric companies, homeowners enjoy a much better return on their investment and faster payback periods.

Mr. Castillo says this presents a clear and immediate call to action. “Based on these positive factors, California homeowners should start looking at the savings they can get now instead of waiting three to five years to invest in their solar systems. If you wait and see under the assumption that technology will improve in a few years, you’re passing up an opportunity for tangible savings now. Would you rather take $1 in savings now versus $1 in savings in five years? If done right, homeowners will enjoy payback periods on their solar investments of six years or less. I see no compelling to reason to wait. The only caveat is that homeowners need to do their homework to protect their investments by selecting a solar company that offers a quality system with a reliable, credible performance guarantee. If the solar company does not guarantee output or just carries a limited workmanship warranty, keep looking. After you properly control for execution and warranty risks, the sooner you install your system, the sooner you’ll start seeing results. It’s on you. If you want to convince yourself about the need for action, just go through a quick exercise. If you didn’t own a system the past five years, do the math and estimate how much cash you burned during that period by not exercising your option to save with solar. Or just call your electric company, ask them to give you the year totals, and sit down and reflect. You could have transferred all that cash to your kids’ college funds while going Green…a double-bottom line approach.”

Current rebates, incentives and financing plans mean any solar-curious homeowner should explore the option to own a solar system. “Today, even lower-income families are able to own a solar system and, as a result, secure more savings in the process,” says Mr. Castillo. “Owners of solar systems own all rebates and incentives that effectively lower the price of and the bar for ownership. A few nonprofits allow these low-income families to take solar loans and finance the systems, $0 down, with average monthly payments set under what these homeowners would typically spend on electricity otherwise. Where should the industry go? With these federal and local financing tools in place, the industry should gradually transition from third-party ownership (leases) to a model geared towards direct ownership, which guarantees the highest savings for homeowners. Ownership should be an option regardless of the credit quality of the homeowner. Then, we will approach solar savings as an issue of social justice. Solar companies’ executives and boards should not just focus the conversation on serving premium, affluent zip codes. This is pervasive and weakens the spirit of solar and its pioneers. It makes solar regressive, not progressive. Let’s change our mindset and be more inclusive.

“Consider, for instance, that in many California zip codes, families earning minimum wage allocate at least 15 percent of their income to the electric company,” he continues. “With no action, they will see their income erode as time goes by. Look at historical data. We know their income will hardly ever increase. We know their utility rates will likely always increase. With solar ownership, these families may effectively lock their electric rate at a deeply subsidized (and clean) rate and become insulated from the periodic, lawful rate increases imposed by their utility company. These are the families that will benefit from solar ownership the most. They will save from day one and free up cash to address other pressing needs in their budgets. Their savings with solar will be in the tens of thousands of dollars. As an industry, we should make a concerted effort to empower these families and give them the option to embrace the clean energy, financially savvy option as well. What are we waiting for?”

Solar companies are constantly looking for ways to differentiate themselves from their competition, and those that have earned the prestigious Diamond Certified award are already several steps ahead. In addition to its Diamond Certified status, SolarUnion sets itself apart by offering solar ownership from day one under a comprehensive performance guarantee that covers components, workmanship and, most importantly, output for 25 years. "Unlike standard solar installers that offer limited product or workmanship warranties (five to 10 years), we operate under a solar developer business model, with all sites carrying a 25-year, bumper-to-bumper performance guarantee," says Executive Director and Founder Renzo Castillo. "We recognize that the value proposition of solar ownership is not driven solely by the installation of the system, but by its long-term operation and maintenance. In order to mitigate the risk of underperformance, we use quality components and install them with solar electricians with decades of experience in the industry. Once we interconnect the system to the grid, an Operations Agreement goes into full effect. Under this agreement, we define a performance guarantee that translates into predetermined minimum annual production numbers (kWhs) for the useful life of the system. For complete transparency, both parties gain immediate access to a mobile application that tracks system performance at the module level in real time. If we fall short of the required output as stated in the agreement, we must bring the system back to optimal performance and indemnify (pay) the homeowner for any lost output during the time of underperformance. When the system overperforms (which is likely with our high-efficiency systems), the homeowner takes the extra output at no extra cost. Under this solar development model, the homeowner enjoys the upside and we, the solar developer, absorb and mitigate the risks of the downside."

SolarUnion has been providing comprehensive solar services for residential and light commercial customers throughout California since 2011. The company sells, installs, services and operates photovoltaic (PV) solar systems utilizing proven technology from manufacturers with some of the strongest balance sheets in the industry. The SolarUnion team conducts energy audits, savings estimates and roof inspections; runs and pays for electrical, building, and fire permits; performs electrical panel upgrades; installs electric vehicle charging stations; and more. "We're a true one-stop shop for our customers' solar needs," says Mr. Castillo.

Unlike mainstream solar companies that focus on leasing systems or installing peak-shavers to partially and temporarily lower electric bills, SolarUnion takes a radical, long-term approach and designs systems for permanent electric consumption offset. "With a SolarUnion system, our clients fully monetize the value of their roofs and real estate," explains Mr. Castillo. "We educate homeowners to look at Solar as an Investment ("SaaI") and advise them to attack their electric bills completely and on a permanent basis. With ownership of a SolarUnion system, homeowners effectively lock their electric rates at a fraction of what they would pay to their utility company. The impact on the electric bill is immediate (savings from day one) while the most significant gains occur over time, as homeowners become fully insulated from the periodic rate increases imposed by the utility company. We train our energy consultants to justify the investment with hard data (e.g., payback periods and rate of returns) and equip homeowners with the tools to make rational, logical and unbiased decisions. We let the numbers speak for themselves."

To further differentiate itself from its competition, SolarUnion designs systems to accommodate different budgets and aesthetic preferences. "We offer value, premium and platinum efficiency options, so each client can choose the best solution for her specific situation," affirms Mr. Castillo. "We design under the smart module-optimizer-central inverter configuration, which is the most robust and reliable technical solution in the market. Our CEO and founder, Ivan La Frinere-Sandoval, has overseen large scale installations (with millions of modules at play) worldwide. He has done extensive research and narrowed down our offering to the best possible options in the market. We bring that additional value to the table, and our customers deeply appreciate it. After comparing for weeks or even months, our prospects come back with absolute conviction that with SolarUnion, they will partner with a team of solar and project finance experts, own a state-of-the-art system with guaranteed performance, fully offset their electric bills, and maximize savings for the long run."