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The Basics of Solar Installations
Erdmann Electric diversified into doing solar/PV installations years ago. Here are some basics you should know.
Just as many other integrators are only now "seeing the light" in doing solar/PV installations, Erdmann Electric diversified years ago into the field.
"We have done photovoltaic solar system design and installation for more than 10 years," says Ken Erdmann, president. "We started doing these installations for customers with homes in remote areas with no other options for electricity other than to generate their own.
"There was renewed interest in these systems as energy prices started to climb. We are able to do the high-voltage wiring needed to connect these alternative energy systems legally into the customer's home.
Most of the PV jobs are residential, but not where the home is being taken "off the grid." Rather, Erdmann is typically installing about 12 to 14 panels PV panels that generate between 9KW to 11KW of power, along with a 6KW inverter and a bank of batteries.
A typical job is done by two to three men over two to four days, depending on the size. That includes one day to install the panels, and the remainder to wire the attic and inverter. In total, the average job is 80 man-hours.
Alternative Energy Webinar
Three CE Pros explain their alternative energy business models for solar power and wind turbines. Sign up for the live interactive Webinar here. Free for CE Pro VIPs.There are two other very important partner contractors involved in every one of Erdmann's PV jobs: a roofer and a structural engineer. They are brought to every job to check the roof condition and the orientation of the roof to optimize PV panel placement.
Another key ingredient to success in the market is the paperwork. Erdmann Electric will either file for rebates on behalf of the customer or help the client. Either way, it's necessary to help them through the maze of dealing with the state, federal and local power company rebates.
In terms of margins, Erdmann says the PV installation business has gotten much more competitive recently. "In the early days, there was a lot of markup. No one else was doing it. We could earn 35 percent to 40 percent on the equipment, plus our labor," he says. But those days are gone.
Overall, the company maintains the same labor rate for all its work. Years ago, Erdmann had different hourly rates for line voltage, A/V and solar, but he unified them into one.
"Solar is a valid business to be in. Any integrator should look at it. I know it's hard for many dealers to go outside your core business, but for those with a ‘green bent' or who want the challenge, it's great to be in," he adds.
One of the advantages of doing both high-voltage and low-voltage installations is the ability to monitor or shed energy loads.
"We've always done this," comments Erdmann, adding that load shedding has been required in commercial work for years. "We promote heavily the fact that we can turn off power and reduce standby power draw by turning off circuits. In homes, we only can't turn off the cable box and the media server."
Lighting control is another staple in this green area. Erdmann uses Lutron HomeWorks to program global limits for lights in the home and all-off commands at midnight, for example. As an interface for the homeowner, he is using the Control4 energy dashboard.
One of Erdmann's best sales tools is the plug-in Kill-A-Watt unit that shows the power draw of anything plugged into it. During a sales call, he simply walks around the house and plugs homeowners' various TVs and appliances into Kill-A-Watt. Then, he uses that information to show the homeowner how much power is being wasted.
Smart Energy is one of 6 pillars of EHX Spring 2010, Orlando, Fla.
"We have done photovoltaic solar system design and installation for more than 10 years," says Ken Erdmann, president. "We started doing these installations for customers with homes in remote areas with no other options for electricity other than to generate their own.
"There was renewed interest in these systems as energy prices started to climb. We are able to do the high-voltage wiring needed to connect these alternative energy systems legally into the customer's home.
Most of the PV jobs are residential, but not where the home is being taken "off the grid." Rather, Erdmann is typically installing about 12 to 14 panels PV panels that generate between 9KW to 11KW of power, along with a 6KW inverter and a bank of batteries.
A typical job is done by two to three men over two to four days, depending on the size. That includes one day to install the panels, and the remainder to wire the attic and inverter. In total, the average job is 80 man-hours.
Alternative Energy Webinar
October 14, 2009
Three CE Pros explain their alternative energy business models for solar power and wind turbines. Sign up for the live interactive Webinar here. Free for CE Pro VIPs.
Another key ingredient to success in the market is the paperwork. Erdmann Electric will either file for rebates on behalf of the customer or help the client. Either way, it's necessary to help them through the maze of dealing with the state, federal and local power company rebates.
In terms of margins, Erdmann says the PV installation business has gotten much more competitive recently. "In the early days, there was a lot of markup. No one else was doing it. We could earn 35 percent to 40 percent on the equipment, plus our labor," he says. But those days are gone.
Overall, the company maintains the same labor rate for all its work. Years ago, Erdmann had different hourly rates for line voltage, A/V and solar, but he unified them into one.
"Solar is a valid business to be in. Any integrator should look at it. I know it's hard for many dealers to go outside your core business, but for those with a ‘green bent' or who want the challenge, it's great to be in," he adds.
Monitoring Energy Loads
One of the advantages of doing both high-voltage and low-voltage installations is the ability to monitor or shed energy loads.
"We've always done this," comments Erdmann, adding that load shedding has been required in commercial work for years. "We promote heavily the fact that we can turn off power and reduce standby power draw by turning off circuits. In homes, we only can't turn off the cable box and the media server."
Lighting control is another staple in this green area. Erdmann uses Lutron HomeWorks to program global limits for lights in the home and all-off commands at midnight, for example. As an interface for the homeowner, he is using the Control4 energy dashboard.
One of Erdmann's best sales tools is the plug-in Kill-A-Watt unit that shows the power draw of anything plugged into it. During a sales call, he simply walks around the house and plugs homeowners' various TVs and appliances into Kill-A-Watt. Then, he uses that information to show the homeowner how much power is being wasted.
Smart Energy is one of 6 pillars of EHX Spring 2010, Orlando, Fla.
Alternative Energy: What You Need to Know
 | 4 Ways to Profit from the Smart Grid Four avenues — demand response, energy management, energy storage and home area networks — to making money. Alternative Energy: What You Need to Know Integrators create business models surrounding energy management and solar panel installations. Demand is strong, margins are OK, and competition is scarce. The Basics of Solar Installations Erdmann Electric diversified into doing solar/PV installations years ago. Here are some basics you should know. How Many LEED Points Can You Earn? Courtney Baker, manager of residential operations at the USGBC, says the number of LEED points an integrator can earn is "murky" right now. Alternative Energy: The Next Frontier Would you rather claim the title of "Mr. Energy" or cede the entire market and its incredible potential to your local utility, electrician or HVAC contractor? Erdmann Electric: Alternative Energy Supplier Ken Erdmann decided his integration company should be an alternative energy supplier. Now, as CEDIA chairman, he wants you to do it, too. Smart Grid: A Trend to Watch in 2010 Consumer Electronics Association hails smart grid's energy efficiency, other green technologies. | |
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About the Author
Jason Knott, Editor, CE Pro
Jason has covered low-voltage electronics as an editor since 1990. He joined EH Publishing in 2000, and before that served as publisher and editor of Security Sales, a leading magazine for the security industry. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. He is currently a member of the CEDIA Education Action Team for Electronic Systems Business. Jason graduated from the University of Southern California.
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