BUSINESS SPOTLIGHT:Suddenly seeking solar

When the summer heat descends upon Glendale, utility meters will race to keep up with reawakened air conditioners all across town. And as the temperature rises, so does the electric bill.

But for a growing number of residents and business owners who are installing solar panels on their roofs, the spinning meter puts a smile on their face. Because when the sun shines the brightest, their meters spin backward.

Due to a package of local and federal investments incentives, more ratepayers are finding the cost of installing a photovoltaic system to be cost effective.

In 2000, when Glendale Water & Power implemented a solar rebate program, not one of their customers had a system. Today, there are 29 participants in the city and at least 10 more have signed up, said Craig Kuennen, Glendale Water & Power public benefit programs marketing director.

One of those customers is Everet Milner, a property manager who equipped one of his buildings with solar panels last year. Milner had considered solar power before, but always found it too expensive, he said.

But with a rebate of about $40,000 from Glendale Water & Power, which is calculated at $4 per watt, the cost of the $96,000 system was shaved down to close to $56,000. That was worth it for Milner.

He also got a federal tax credit of another $2,000.

Because Milner’s annual electric bill was about $9,000, his new solar system should be paid off in five years, he said.

“After a couple of years, when the rates go up, my investment is still in place,” Milner said. “With the lifetime expectancy of these panels at 20 years, I expect this line item on my budget to be zero for a while.”

For Glendale resident Michelle Walton, the incentives reduced the price of her $22,000 solar system down to about $12,000.

“We estimate that we’ll get a return on our investment in eight years,” Walton said.

Customers are not the only beneficiaries of the various rebates and investment incentives that have reduced the cost of installing solar systems. Solar companies that manufacture, install and or provide consulting services for buyers have also come to rely on the rebates.

“Right now, solar is a low margin business because the cost of materials is so high,” said Maureen McDonald, owner of Pasadena-based Solar Engineering Industries Inc. “Without the rebates, there would be no business at all.”

McDonald’s company provided the materials and installation services for about 40% of all Glendale residents who have gone solar, Glendale Water & Power spokesperson Atineh Haroutunian said.

Since starting her company in 2000, business has increased steadily every year with the most significant gain coming last year, McDonald said. To accommodate the bulk of new orders, she tripled her staff in 2006.

Still, there may be a down side to the increased demand, she said.

“The problem has been that the prices of the modules have not been going down,” she said. “The demand is outstripping the supply.”

Though cheaper installation costs have been a critical component of the formula that has driven up demand for solar power, other buyers have acted out of concern for global warming and energy security.

“It’s the right thing to do,” said Lisa Yesko, who installed a system in 2002. “I would have done it even without the rebates.”

But to Hugh Watts, who installed a system last year, the primary imperative is economic.

“My electric bill went down to $11 from about $100,” Watts said. “It’s not a holier than thou sort of thing, it’s just that the price of energy is not going to go down. It’s only going to go one way.”