Edison and DWP Rate Hikes--Why NOW is the time to GO SOLAR

By now, you've no doubt read about or had ample time to digest the rate hike announcements from Southern California Edison (SCE) and the Los Angeles Department of Water and Power (LADWP). If you haven't, here's the gist:

• In May of 2011, Edison announced a plan to increase rates by $3.2B. This represents an average 9% rate hike overall to their customers. The reason for the increase? Massive grid improvements to "preserve grid reliability."
• In Mid 2010, LADWP announced that it will need to increase rates 5% per year over the next 3 years to improve their aging infrastructure. The agency announced On February 1 that a rate payer advocate has been appointed (by voter mandate) to represent the "voice" of the consumer. Said advocate, Frederick Pickel, is getting paid an astounding salary of $276,000/year.

There have been citizen groups, such as the AARP, who are arming up on behalf of their constituents to fight these increases. Many environmentalist groups favor the hikes, which would expose consumers to the "true" costs of electricity generation and distribution.

Regardless of your personal position, one thing can't be ignored: utility rates in California are going up. A lot. And they will CONTINUE to increase. A lot. The rate hikes that Southern California's largest utilities recently announced are NOT in response to the electorally mandated 30% increase in renewables that they have to add to their fuel portfolios. This is just business as usual increases: modernizing ancient pipes, greatly outmoded technology and aging infrastructure. The LA City Council is decrying DWP's employee salaries and benefits. And so goes the usual strum and drang that is the intersection of politics, commerce and consumer advocacy.

The opportunity, however, that consumers have now is that they can opt-out completely of the utility inflation game. Our goal is always to educate homeowners and business owners not only on the obvious environmental benefits of solar but PRIMARILY the ECONOMIC advantage of installing solar. We have only seen the beginning of what will become a nationwide trend of utility rates jumping to record highs. If you could OWN this commodity, why wouldn't you?

Our objective when we design any system is two-fold: one, ensure that the pay back period (ROI) is between 7-10 years and two, that if we aren't able to satisfy 100% of the home owner's usage that we are able to knock out the non-subsidized rate tiers for both Edison and DWP customers. We have a number of programs--from 0 down lease options to pre-paid leases--that make the solar option surprisingly affordable.

Even during this election year, with an upcoming presidential election and a mayoral race in Los Angeles (no surprise that one of DWP's greatest detractors is Jan Perry, herself an announced candidate for the mayor's race), this is an issue to follow. Now is the time to ask yourself not whether or not you can afford to go solar, but whether or not you can afford NOT to.