By Ivy Main, cross posted from the Power for the People VA blog:
Dominion Energy never used to be happy about customers producing their own energy from solar. “Hostile” is more the word that springs to mind. The company has traditionally seen privately owned solar arrays as competition: The more solar panels people put on their roofs, the less electricity they buy from their utility.
But Virginia has long allowed net metering, and in 2020 our General Assembly came down firmly on the side of customers by expanding opportunities for onsite solar. Consumers responded with the enthusiasm legislators hoped for. Industry statistics show annual residential solar installations in the commonwealth roughly tripled from 2019 to today.
If you can’t beat ‘em, join ‘em. Virginia homeowners and businesses in the market for a solar array can now buy it from a wholly-owned subsidiary of Dominion Energy called BrightSuite. The BrightSuite website touts some of the same customer benefits that solar advocates have been pointing out all these years: consumer savings, carbon reductions, stable electric bills. And why shouldn’t Dominion sell solar? As the website declares, “We embrace change with a commitment first and foremost to meet our customers’ evolving energy needs.”
Well, amen to that! With climate chaos impacting people’s lives and high fossil fuel prices driving up utility bills faster than the rate of inflation, customers’ energy needs certainly have evolved, and they do now include onsite solar arrays. We just didn’t expect to hear that from Dominion.
But that’s okay, we welcome latecomers! Moreover, while Dominion’s entry into the residential market will make some people uneasy, it could goose demand, growing the distributed solar market for everyone while pushing out the price-gougers.
First, though, let’s address that unease. Having an affiliate of the local utility compete for a homeowner’s business puts independent installers at a definite disadvantage. Dominion has a much broader marketing reach, and BrightSuite’s use of the Dominion name carries an implied promise of trustworthiness. In a market crowded with competitors, name recognition and the assurance that a company isn’t going away any time soon are distinct advantages.
But Dominion’s entry into the retail solar business could ultimately be good for independent installers. Dominion doesn’t do anything inexpensively, and its home solar offering appears to be no exception. If Dominion persuades more customers to look into home solar, and those customers then comparison shop, companies that can offer a better deal will get more business.
Sarah Vogelsong recently wrote about a project of the HR Climate Hub, which solicited quotes from solar installers for the same single-family home in order to compare prices and service, and to flag potentially predatory sellers. The website offers helpful advice to Virginia homeowners about how solicit and compare offers. It also lists prices and terms from a dozen companies, ranging from a low of $2.10 per watt from Tesla to a high of $5.62 from Power Home Solar. Two small, well-regarded Virginia Beach installers submitted bids of $2.80 and $2.85. BrightSuite’s quote (added after the Mercury article ran) came in at $3.25.
HR Climate Hub’s figures square with information from the Solar Energy Industries Association, which provides advice for consumers and tracks the average cost of residential solar systems through a service called SolarReviews. According to the website, “As of Jun 2022, the average cost of solar panels in Virginia is $2.66 per watt making a typical 6000 watt (6 kW) solar system $11,797 after claiming the 26% federal solar tax credit now available.”
I asked HR Climate Hub for additional information about the BrightSuite quote and was glad to learn the company uses high quality REC solar panels that carry a 25-year warranty, along with microinverters made by Enphase, a top-quality American company. So, no bottom shelf components here. However, the quote did not mention warranty or maintenance information for the installation work. These do not appear on the BrightSuite website either, apart from a one-year performance guarantee.
It goes without saying that anyone investing thousands of dollars on a major home improvement should shop around, compare prices, and read warrantees. Prices listed on HR Climate Hub and SolarReviews are a good starting point. Where available, bulk purchase programs like those offered by Solarize NoVa and Virginia Solar United Neighbors provide discounts as well as expert advice.
But it wouldn’t be surprising if even well-informed consumers choose to pay a premium to get a solar installation from BrightSuite simply because the company is associated with their utility. Name recognition goes a long way in marketing, and a lot of customers will want the security of knowing Dominion Energy isn’t likely to take the money and disappear into the night. With this marketing advantage, I expect BrightSuite will quickly emerge as a market leader in spite of its higher-than-average price.
Ultimately, however, Dominion’s entry into the market may grow the pie for everyone. Homeowners who have held back from installing solar because they don’t know who to trust may feel confident enough to call BrightSuite. Once they have one quote, many will comparison shop.
At the very least, Dominion’s entry into the home solar market should set a price ceiling. Why would anyone pay $5 per watt or more for a solar array from a company they probably don’t know anything about, when they could get $3.25 from their utility? Price gougers, beware: your time here is up.
This article appeared in the Virginia Mercury on June 17, 2022.
Dear readers: Many of you know that although I write independently of any organization, I also volunteer for the Sierra Club and serve on its legislative committee. The Sierra Club’s Virginia Chapter urgently needs funds to support its legislative and political work towards a clean energy transition. So this summer I’m passing the hat and asking you to make a donation to our “Ten Wild Weekends” fundraising campaign. Thanks!