Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Steve K.

Steve K. has started 29 posts and replied 2790 times.

Post: California to make "Solar "mandatory for new Homes!!!!!!

Steve K.#4 Wholesaling ContributorPosted
  • Realtor
  • Boulder, CO
  • Posts 2,893
  • Votes 5,164
Originally posted by @Christopher Lombardi:

You seem very defensive.  You need to do some  more research though.  Maybe posting questions here isn't a good way to do it since you clearly have issues with the responses.  

 Nobodies defensive, it’s sad your opinion is formed with false or outdated information, that’s all.

Post: California to make "Solar "mandatory for new Homes!!!!!!

Steve K.#4 Wholesaling ContributorPosted
  • Realtor
  • Boulder, CO
  • Posts 2,893
  • Votes 5,164
Originally posted by @Eric Schultz:

Steven Picker

I do commercial construction for a living. One of my current clients is a leader in the state of California for Zero Net Energy (ZNE) and LEED Gold new construction projects. It’s only a matter of time (maybe a decade or two) where the California Building Code will require a combination of photovoltaic (PV) systems with battery walls and building system submetering on all new construction.

What most people don't realize is that PV solar panels have what is called a degradation factor. The panels' energy output reduces by 0.25% - 3% per year depending on the make/model. The panels also must be cleaned regularly. Between these two things the advertised energy cost offsets for the property owner slowly decreases year after year, reducing the ROI.

Also, recent tariffs on PV panels and inverters has driven costs up lately.

Current price points are not where they need to be to make this economical statewide yet.

Of course the degradation factor is taken into account when we do energy forecasts. It's less than 1% on avg., high quality panels less than .5%. 

I have never cleaned my panels nor do many of my 1,000's of customers (only the really anal ones, or the large scale bank-owned ones required to do so by investors). All of these systems are producing better than forecasted, dirty or meticulously cared for, basically same end result. If there's a dust storm or something, they can easily be cleaned or you can just wait for it to rain like I do. If you clean them daily you might make a few extra pennies a day. Or if you think it's necessary, as some managers of large scale arrays lead us to believe (mostly to justify their position "managing" and array with no moving parts, or to appease investors who have little solar knowledge and just like to have something to point out and think it's important), then paying some guys to run around with spray bottles and squeegees for a few hours isn't going to be a deal breaker on a multimillion dollar system. Soiling is a non-issue in my experience. In areas with heavy dust like the Mojave or the Gobi where the largest solar arrays are, cleaning them is a teeny tiny expense compared to the many millions of dollars worth of electricity those large arrays produce. 

Yes, the recent tariffs increased the cost of imported panels by 30%, and the same president signed off on extending the 30% tax credit. So now we mark them up 30% and then down 30%. Makes sense to me... free market! Interesting fact: both policies were signed into law by the party of "less government"; the 30% tax credit in 2005, extended in 2017, and the 30% tariff in 2017. Less government achieved by more government? Energy subsidies are extremely complex, and solar isn't unique in that regard. If you look into subsidies for any form of energy it's migraine-inducing. Despite the tariffs panel prices have dropped by 75% since 2009 and will continue to drop as they are increasingly mass produced. 

Current prices have been more than economical for renewables in CA for quite some time that's why almost all new generation is coming from solar and wind. 

Post: California to make "Solar "mandatory for new Homes!!!!!!

Steve K.#4 Wholesaling ContributorPosted
  • Realtor
  • Boulder, CO
  • Posts 2,893
  • Votes 5,164

@Andrew Smith you beat me AGAIN! And you even had more updated info than me... I stand corrected, nuclear is down to 9% of the CA energy mix, I'll have to update my number of 14% from a few years ago. It's quickly on its way to zero. 

Whatever question is being asked about energy, nuclear is never the answer. How did we forget to account for the cost of managing the nuclear waste for literally 100,000 years? Taxes pay for that, and if we don't protect it, it can be made into dirty bombs. Great idea indeed but solar "doesn't make sense".... ok. 

Post: California to make "Solar "mandatory for new Homes!!!!!!

Steve K.#4 Wholesaling ContributorPosted
  • Realtor
  • Boulder, CO
  • Posts 2,893
  • Votes 5,164
Originally posted by @Christopher Lombardi:

@Steve K.  I agree, NJ is screwed as well.   CA, IL, NY and NJ, the 4 states that have a mass exodus happening right now.  These politicians are idiots.   As for the solar panel thing, financially, solar panels never make sense.  They cost much more than getting your electricity the traditional way from the power companies.  I'm not sure how CA plans to pay for it or specifically what the law said, but I'm sure its going to hurt everyone.   As far as how good they are for the environment, solar panels dont last very long and when disposed of, the toxic metals that they contain are very harmful to the environment.   Right now they dont have enough solar panel recycling facilities to have them recycled so the way it is now, instead of polluting with fossil fuels, its polluting grounds and water with toxic metals.  

Actually, isnt CA almost exclusively nuclear power anyway right now?

California's population is growing consistently by 300-400,000 people each year over the last 10 years. Some residents are leaving, but more are moving in. They definitely don't have a problem with a "mass exodus", if anything the opposite is true, they're struggling with ways to accommodate their growing population. That's why it makes sense to include a power plant with every new home. Build a new roof, power the home with that roof. 

Financially solar panels make a ton of sense. There's an upfront cost but over time the power they produce is far less expensive than traditional energy sources. 

Solar panels don't last very long? That's utter hogwash. Down the street from me is NREL, where they test new technology. They have an array consisting of solar panels from the 70's and guess what? Still producing power. Why would we recycle them when they still generate valuable electricity? Modern solar panels are even better, they come with 20-25 year warranties, degrade less than 1% per year, and will still be producing valuable electricity in 30-40 years at least. If you want to "recycle" some panels, just bring them over my house, I'll plug them in and sell the electricity.

Also not sure what "toxic metals" you think solar panels are made of. They're made mostly of silicon which is the eighth most common element in the universe that is non toxic and easily recycled. The embodied energy in a solar panel, the amount of energy it took to produce it including mining the aluminum for the frame, all the materials in it, assembly, shipping and everything, is offset by the production from the panel in 1-4 years, so they pay for themselves in terms of energy return on energy invested many times over during their useful life, that's why they make so much sense environmentally. 

"Actually, isnt CA almost exclusively nuclear power anyway right now?"

 Nope. Currently about 14% of CA energy comes from Nuclear, compared to 19% from solar. California is not big on nuclear. They’re shutting down the last remaining nuclear plant and not building new ones. Fukushima was the last nail in the coffin for nuclear. We realized having these facilities was too much liability, especially next to the ocean and on top of major fault lines. Side note: Did you know there’s a nuclear plant in NJ that's the same dangerous design (Mark 1 by GE, 1960's technology that we've known was faulty since 1972) as Fukushima? The biggest job maker in nuclear currently is the decommissioning industry. It takes over ten years and costs billions of dollars to take these things apart. Guess who pays for that? Taxes. Meanwhile people think recycling solar panels is a problem SMH.

Post: Is it illegal to remind tenants of the consequences of eviction?

Steve K.#4 Wholesaling ContributorPosted
  • Realtor
  • Boulder, CO
  • Posts 2,893
  • Votes 5,164

@Cody Furman Just serve notices, every time. That should be enough of a reminder, and starts the clock ticking. I’ve spoken to tenants about it like you mentioned; explained calmly and as kindly as possible that a judge will evict them and a sheriff will come remove them if they don’t pay, that it’s hard living with an eviction on your record, that I have my own payments I have to make to the bank and the bank doesn’t have a heart either, that they’ll lose their security deposit because I’ll keep that for unpaid rent and go after them for additional monies if they cause damage, etc. Didn’t help at all in my experience. The moment it becomes real is when the judge asks them, “Will you be out by tonight, or do I have to send a sheriff to forcibly evict you.” That’s when they get it. To answer your question though I don’t know if it’s illegal, but you definitely want to avoid doing anything that could be viewed as threatening and anything in writing can be used against you. I don’t think it hurts to have a calm polite conversation if you have a good working relationship with a good tenant, one last attempt to find out what’s really going on. But be careful and I wouldn’t send a formal letter or an email, that’s what the notice is for. Anything additional after the notice is kind of like a triple dare. Nobody that double double dares is serious. As others have said your landlord tenant handbook is your manual. Definitely don’t text a message that Bruno is on his way to their house and he’s coming for their kneecaps. Good luck!

Post: California to make "Solar "mandatory for new Homes!!!!!!

Steve K.#4 Wholesaling ContributorPosted
  • Realtor
  • Boulder, CO
  • Posts 2,893
  • Votes 5,164

@Christopher Lombardi Says the guy from New Jersey. Haven’t you guys been in danger of defaulting on your massive debt for years? What is it up to now, $150B? I just read today everybody is dumping NJ bonds, again. It seems like every week the S&P is downgrading New Jersey. But yeah CA sure has it rough.

Post: California to make "Solar "mandatory for new Homes!!!!!!

Steve K.#4 Wholesaling ContributorPosted
  • Realtor
  • Boulder, CO
  • Posts 2,893
  • Votes 5,164
Originally posted by @Andrew Smith:

 That’s crazy Andrew, we should just keep digging up fossils and burning them until we completely smoke  ourselves out. Because, you know, market forces and windmills and China.

Post: California to make "Solar "mandatory for new Homes!!!!!!

Steve K.#4 Wholesaling ContributorPosted
  • Realtor
  • Boulder, CO
  • Posts 2,893
  • Votes 5,164
Originally posted by @Rhonda Wilson:
Originally posted by @Steve K.:

Sure, it's annoying to have to be forced into using solar. But I believe in 20 years we'll look back and ask ourselves, "Why didn't we make that switch sooner?"  That's all CA is trying to do. 

Perhaps photovoltaic solar is as good as it gets, but I believe that the best is yet to come. What it will be, I can't say. Someday fusion but that always seems to be a couple of decades away. China actually has 58 nuclear reactors in the works. Those include thorium MSR reactors which are much safer and create safer waste compared to uranium reactors. Bill Gates and Jeff Bezos are investing heavily in forth-generation nuclear reactors. They do not want to see the United States fall behind China as the leader in nuclear power because they believe that nuclear is an important component of a low carbon energy future. 

Honestly, I don't know if MSR, forth-generation or fusion will be major energy sources in 20 years. Twenty years ago I might have guessed that natural gas or bio-diesel cars might have replaced a lot of our gasoline cars by now since peak oil seemed like a sure thing. That didn't happen. Let's admit that none of us knows and not lock ourselves in to a single technology.

 Agreed. If somebody perfects the Mr. Fusion Home Energy Reactor coupled with a flux capacitor I can use to power my DeLorean, I'm all for it.  

Post: California to make "Solar "mandatory for new Homes!!!!!!

Steve K.#4 Wholesaling ContributorPosted
  • Realtor
  • Boulder, CO
  • Posts 2,893
  • Votes 5,164
Originally posted by @Steve K.:
Originally posted by @Andrew Smith:
Originally posted by @Ryan D.:

Ideas so good, they have to be mandatory ;)

 There's a few of those like clean air acts, clean water acts, DUI laws, health and safety laws...... :)

 I for one am thankful for catalytic converters being mandatory, as an example. Those old cars were nasty. Seatbelts too, that was a good idea. I think a lot of good ideas become mandatory, don't they?

Also solar doesn't have to be mandatory, it's already the fastest growing form of new energy, and the mandate doesn't start until next year. 

 Lead paint, asbestos... technically bans not mandates, but related in that govt. stepped in to protect the public from harmful building practices. Lead paint was a great paint, but it gives people brain damage. Asbestos was a great fire retardant, but causes lung cancer and mesothelioma.  

Central power plants powered by fossil fuels or nuclear were the best way we had to power a lot of homes, so we built a lot of them and wired all our houses up to them. As it turns out, emissions from fossil fuel plants causes increased rates of lung cancer and shortens life expectancy. Nuclear is not a viable option because in 60 years of using it we still haven't solved the waste issue, plus govt. has to insure them since no private insurance company would be dumb enough to seeing how disasters are extremely expensive not to mention catastrophically costly in terms of human lives, so nuclear is dead. Fossil fuels get more expensive as they become more rare so the government has to spend more money subsidizing them to keep our economy afloat since we depend on them. Now we're retiring those old power plants, not building many new ones, and for lack of any better solutions to move on to, solar and wind are getting increased adoption.

Wind is already cheaper and solar is on track to be cheaper than legacy fuels in a few short years (even with legacy fuels keeping their subsidies while renewables lose theirs), so makes economic sense even health issues aside but especially considering those external issues among others. Market evolution. It's already happening, CA is just pushing the issue to speed things up further. 

Builders will have to pivot just like when we had to stop using lead paint and asbestos, or car manufacturer's had to start putting catalytic converters and seat belts in every car, or any number of other examples of things the govt. forced us into that was for the public good. I'm sure there was pushback on all of those changes too, as they made things more expensive initially and people had to adjust. Yet in hindsight I hope we all agree society is better off thanks to those changes, and would have been better off had we made those adjustments sooner. 

Sure, it's annoying to have to be forced into using solar. But I believe in 20 years we'll look back and ask ourselves, "Why didn't we make that switch sooner?"  That's all CA is trying to do. 

Post: California to make "Solar "mandatory for new Homes!!!!!!

Steve K.#4 Wholesaling ContributorPosted
  • Realtor
  • Boulder, CO
  • Posts 2,893
  • Votes 5,164
Originally posted by @Rhonda Wilson:
Originally posted by @Andrew Smith:

 Personally I believe a carbon tax would have been far more appropriate than mandated solar. It would finally level playing fields in terms of fossil fuel and related energy production paying true cost of energy. That would be a much faster step towards eliminating subsidies too and preserve freedom for consumers to choose. Even with the decks stacked in favour of fossil fuels, solar is the energy of choice for exponentially increasing numbers of homeowners, States and utilities. Imagine what it could look like with a carbon tax to level the playing field some.

This kind of gets back to the "Tragedy of the commons." Individuals don't pay the price for their impact to a common resource, specifically the atmosphere. Not everyone agrees about the impact of carbon, but realistically that is something we elect governments to decide. So yes, I wouldn't like it, but I agree with you. A carbon tax would be far more appropriate. By mandating a specific technology, we limit everyone to what seems to be best for a majority at this point in time. It doesn't take into account unique situations or future innovation. I fear that 10 years down the road someone will come up with something better but the law will stay on the books because special interests (the solar industry) will lobby to keep it there. It will be like the ill-considered mandate for 10% ethanol in our gasoline which substantially reduces fuel economy but funnels a lot of money to corn farmers. 

Yup you nailed it with the tragedy of the commons. I so wish you hadn't compared solar to ethanol though, that was such a disaster and I really hope we're not going down that path, and doubt we are.