California North Coast solar company leader keeps an entrepreneurial spirit
An entrepreneurial spirit is what allows Phil Alwitt to be flexible in the ever-changing world of solar energy.
“It is an evolving industry so it’s not static in any way. It keeps me on my toes—the politics, policies, finances and employees,” Alwitt said. “So, I am really entrepreneurial in the way I run the business.”
As CEO of Novato-based SolarCraft, the 56-year-old is tasked with keeping up-to-date with state and federal regulations as the world becomes more electrified in regards to what people drive, the homes they live in and the places they work.
His biggest complaint, though, is with the state.
“The state does not make it easy. It claims to be climate friendly, but at the same time it is union friendly and unions are not friendly to distributed solar,” Alwitt said. (Distributed solar in general refers to the panels that sit on rooftops.) “We are getting the brunt of it. We are hit with policies that diminish distributed solar generation, but at the same time big unions can flourish building systems for PG&E.”
When not dealing with issues related to the nearly 50-person business, Alwitt burns off stress by hiking the 680 Trail near his home in Marin County or wing foiling on the San Francisco Bay.
The following is a Q&A between the Business Journal and Alwitt that has been edited for space and clarity.
What concerns do you have for your business and industry looking out five years?
The solar industry is constantly changing; from equipment to public policy, financing to code compliance. PG&E, the CPUC and the IBEW labor union are very powerful, self-serving entities that are nervous about the changing electric infrastructure.
If they throw their weight in the wrong direction and discourage the adoption of solar by implementing unjust licensing requirements or taxing solar, the industry could get knocked off its path—as can mitigating climate change.
What one government regulation would you change and why?
AB2143! AB2143 was signed into law in August and requires that virtually all commercial solar installation use prevailing wage labor, a minimum percent of certified electricians, and administrative requirements were defined that burden the customer.
There are not enough certified electricians in the state to satisfy the requirement. By requiring prevailing wage for small commercial projects, the disparity between residential and commercial pay will negatively affect both residential and commercial prices.
Putting the burden on a consumer for a solar contractor's responsibility is unjust and reckless of the state. We need to promote all solar and clean energy options, and stop pandering to special interests and big money.
How will the $739 billion Inflation Reduction Act of 2022 affect your business?
The IRA is a great start to enable people to further realize that the small changes they make can together have a huge effect to mitigate the damaging impacts of climate change.
The IRA provides a number of rebates for electrical upgrades such as changing out electric panels and upgrading to heat pump heating and air conditioning. Customers who install these items will find that their electricity bill will rise and their gas bills will decline. Although they can't generate their own gas, they have the option to generate their own electricity by installing solar. They have the ability to control their costs and save a large amount of money at the same time. So just the electrification movement prompted by the IRA will positively affect SolarCraft.
The nuts and bolts of the IRA are also quite good for SolarCraft and the solar industry. The federal tax credit was set to drop to 22% in 2023. The IRA raised it to 30%. This additional 8 percentage point discount is a huge benefit for our customers—about $2,000 to $5,000 additional savings for typical jobs and a great motivation for people to install solar.
What is your opinion about Net Energy Metering 3.0, the state Public Utilities Commission’s ruling this month that changes the monthly energy bill savings for solar customers in California?
NEM 2.0 has been a great stepping stone. It has enabled people to install solar on their homes and businesses at very reasonable costs. In return they are able to save a lot of money for themselves as opposed to paying PG&E to chip away at their wallets year after year. It has allowed the solar Industry to mature.
While NEM 3.0 will not be as generous to consumers, it still allows people to save a substantial amount of money and it promotes a more stable grid. It will encourage more battery storage; a perfect way to separate from PG&E and provide backup power during power outages.