solar installation company and talk to them about your needs and your desires. they should be able to look at your historical energy usage over time. they'll look at your past electricity bills. they'll come out and look at your house and work with you and also discuss your budget with you and come to a reasonable conclusion on what you can afford. how much power you need to generate, how long the payback is going to be on your system, what financing options are available and hopefully get you a soler power system designed and installed. >> well, i think i am going to need to graduate from pete's class first. i'll see about the next step. >> sure. >> thank you so much for all of these very useful information. >> my pleasure. >> really. >> yes. [laughter] >> i say it's going to cost you

$30,000 for a solar system or $20,000. most people get sticker shock and run away. they forget what they're paying now. let's think of what you're paying compared to what? so, what you have now is typically a bill from p.g. and e., a gas portion and an electric portion cleared marked. look at the electric portion. you'll get a usage area and a box at the end. it will break down like this. it says five rate tiers you call them. you get a baseline rate at a cheap amount. you get another 30% amount at a cheap rate. this is your baseline rates, these two. but when you use more, you pay more. and what it looks like graphically is, boy, there is a lot up here. so these rates are where your big expenses come. if you're in these rates, solar can make a lot of sense. they go up very dramatically, 222 cents, 32. let's say we have a case study. you have a $100 electric only.

that's $1,200 a year. after 10 years, it's $12,000 if rates don't rise. let's assume that rates rise at the historical average which has been 6% over the past 30 years. so let's assume -- i think that might be conservative, let's assume that. so that means that after 10 years, you'll probably have paid out $16,000 and your bill by then will be $169, $170 amonth. you would be out that much money and you would have a higher bill and look forward to, hopefully not, but probably increasing rent payments for ever and ever paying it off. can solar beat that? that's where you want to start. if it can't, don't buy it. if it can plus all of the other benefits, it's a great deal. there is ways to reduce the cost and eliminate the sticker shock and one of these ways is the california solar initiative, that wonderful law that we started at the beginning of the year. the incentives are of two kinds. if you win the lottery, you can

either take an upfront payment or you can take an ongoing payment for x number of years. the same thing applies here. you can take what's called an epbb which is one of the world's great ack named called expected performance-based buydown which is a mouthful for rebate. the payment is by watt of capacity. so that's what you're going to get right up front to knock down the cost. if it was $25,000 or $30,000, that's a lot, but you get something knocked off. a lot of time the installers, the people that you deal with, the one stop shop that does the whole thing for you will carry the rebate for you. not all, but most of them do. so you don't even have to finance that and wait a few months to get it back from the state. they incur that floating finance charge for you. it's a real nice service and it lowers the cost right up front. so there is another incentive, two ways of lowering the cost.

one is that rebate payment that i talked about with the state. this is from the federal government, ok. this is tax incentives. you have to have tax liability. you have to pay taxes to make this thing valuable to you, but most people do. the law is written at 30% of the cost you can have a tax credit of 30%. let's talk about real numbers. what am i paying now and what am i going to be paying in the future? if i can make money today on my monthly payment and go green, why not? solar kind of reverses the effect. it's like tax brackets. the return on investment typically is higher if you got a big bill. there is also another thing about time of use rates. i want to go over it very briefly. it does have some effect and you will hear it about on your bid. the time of use rate is a way that you tilts are trying to help -- utilities are trying to manage their peak demand.

you charge people more during peak periods. you make it up to them by charging the low market rate off peak. this is off peak and you'll be charged a very low rate for it. at shoulder peak you'll be charged more. at on peak, you'll be charged the most, another shoulder, another off peak. so what happens is that your production looks like this on the hours of the day. you're going to produce more obviously during the suspect with peaking around noon. when you overlay the curve, they kind of look like this. so solar lines up very well with peak usage. remember when you're overproducing and selling during the day and buying at night, you can use this differential so you're selling high and buying low. that differential can actually use to your advantage depending on your lifestyle. ok, your paybacks ranges from eight to 18 years if you have to look at it that way from people who typically buy. the return anywhere from 5 to

15% or 18% or more on those big systems. so it's not a bad return for a very, very low risk investment. let's say you have 7% on p.v., you're going green. if you got that from your stocks, your principal would be going into risk. so anyway, stocks can go down as we well know. this is very solid. monthly cash flow, let's talk about that. if you were to finance this by a home secured loan like i did on my home equity line of credit, that interest on that loan is tax deductible. if you do that and assuming that we have the same historical rate of escalation, you can start going cash flow positive from the first day. in other words your payback can be immediate, now. making money. are there any hidden costs? the inverter typically is has a 10-year warranty that will last about 15 years we're estimating and they're getting better all the time. the solar people will build that replacement cost into your financial analysis and

maintenance. the only maintenance that i ever do on my panels is a keep them clean when the pollen starts going. i don't live in a dusty area and i don't have birds nesting above the panels. i discourage that for obvious reasons. if they're tilted, you're going to be fine. on a real test, the maximum loss is around 7% even if they didn't wash them. most of the solar homes bought in the last five years and they're just starting to turn over. we're getting hard data on what this does to appraisal values. there has been some study that supports sort of the idea that, yeah, if two homes, all things being equal and the p.v. system looks decent, that if a home has $150 electric bill and this has a $10 a month, that going to be more valuable and have $140 available for mortgage payments, so you can pay more.

we'll see if the figures will hold up. we need hard data to support that. it's very likely. there is also another thing about home ownership, california passed a solar rights act which is basically a law that basically supports solar, but it's very supportive law for h.o.a.'s and homeowners association and other condo things that can't privilege allowsly oppose solar. it's hard to oppose on a don't like the look of it, obviously you want to get along with the neighbors, but the law is on your side. now you're thinking maybe i want to continue to do this. first off do the energy audit stuff and find an installer like you would do any other contractor. he takes care of the paperwork and the permits for you and floats the rebate. you just got to get one you like and want and sign those papers. how do you find an installer and how do you choose the ones you want? just like anyone else, you screen some people out, you do

personal references, you check their website, you talk to them about the basics and ask for the address to see if you have some good roof space. if you decide it's ok for a salesperson to come out, they'll do that for you. it's all free. if someone tries to charge you for bids, almost no one will. pass on it. i want to give you the key information that you need to compare bids properly. there is just one little area in there. there is a d.c. and an a.c. system size. i don't want to into details on that i want to make sure you get the right -- that's the only area of confusion that i have seen on bids that can affect the sales part of it. so first off, i want you to get the full price. that means the maximum you'll be charged. that includes any additional things that they may charge you because you have a difficult roof or steeply pitched roof or concrete tile or whatever they might see. you get that full price. that's before rebate, before tax credit. then you take the system size in cec, california energy

commission a.c. watts. that term is understood by the people in the industry. that means they use the c.e.c. ratings to determine the a.c. wattage. you get the per watt price. you divide this by this. you get the price per a.c. watt. you want to ask about permit fees as well. each city typically will charge fees. now those fees are coming down and we're working very hard to get them standardized and clear. there is some cost. sometimes the installers will pass that on to you. ask how they're dealing with it. you say, ok, what's my watt. let's see it was four d.c. but you'll have 18% less here, so that's the number you want, you divide this by that and you get that. so this would be 926 a watt. therefore, you can compare apples to apples. they have a standard calculator that they use on the web and they include that printout on your bid and they have to file

that printout in your rebate application. so there is another possibility of lowering costs, the group buy. when i went, in i went in with a bunch of friends because i thought i wanted to bring people in because i knew all of these people, these greeny homeowners that were needing to walk the talk and because i brought a lot of businesses vendor, they lowered all of our price because this economy is of scale. maybe that price can drop 50 cents a watt or more. that's another idea. there are ones that are just beginning where you can actually lease the system. you don't have to put any money up front at all. somebody else will own the system for you. you may pay an upfront cost a little bit that is less than what you might pay normally or some of them may not at all, depending on how they can make the finances work. the whole goal is to try to get you into p.v. with the least amount of resistance possible. instead of paying maybe the utility per month, you're going

green and paying somebody else. thank you very much for your time. it's a pleasure. i'll take questions and i'll be here afterwards as long as you need me. thank you very much. [applause] >> so that's it, solar basics. first we talked about the technology, how it works and how it all hooks together. then we talked about net metering and how that makes solar easy and worry-free and finally we talked about the incentives from the state and the federal government that lower the cost and makes solar affordable. for further information visit our website or come visit us in person. all the classes at the pacific energy center are free of charge. thanks for showing us an actual system being installed and thank you for being with us. hope to see you soon.

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[applause] >> de want to sit down? that is perfectly all right. -- do you want to sit down? let me called this meeting to order. it is the occasion when the mayor of san francisco is to take the oath of office. i believe this is probably the first major who has had all the other living mayor's as the 16

county of san francisco president for this swearing in. [laughter] but i do not take it personally. i did not even notice it. [laughter] of course, i should identify them quickly. to my left, she will be on later on in the program, but we will start with dianne feinstein, the only woman who was ever held the mayorship of the city of san francisco. united states senator. [applause] start with the man who most recently left this job and went on to become the lieutenant governor of california, gavin newsom. [applause] frank jordan, former mayor frank jordan, former police chief of

the city of san francisco. [applause] and my colleague from the legislative years and mayor of sanford says go, are new and tho san francisco. [applause] now that the stage is set, it is time clearly for prayer. reverend james, please come and give us the invocation. >> the per i offer todrayer i os on behalf of the more than 800 organizations in the city of county of san francisco. many of the agencies have served the people of san francisco for

over 100 years. let us pray. got we come to you and prayer for our mayor, and when we. edwin lee. -- god, we come to you in prayer. as he renews his commitment to serve as our mayor, we ask you renewal his zeal for public service. grant him good health. give him the gift of patients, care for all people, but above all, the gift of wisdom here that surround his occupation with men and women dedicated to public service. fill him with your love so that he is not afraid. for as the scripture says, but perfect love cast out of fear. finally, we pray for ourselves

as citizens of the city we love it. drive from us and our elected officials all cynicism and slavish ideology. in your mercy grant us just and honest, rep. all men. -- and honest government. -- amen. >> please welcome the color guard in the san francisco girls chorus. -- and the san francisco girls chorus. where are they? [laughter] [laughter] [applause]

>> i pledge allegiance to the flag of the united states of america. and into the republic, for which it stands, one nation under god indivisible with liberty and justice for all.

♪ [chorus singing]

banner"]

[applause]

forward. halt. forward march. [applause]

>> you may be seated. i moved a little bit ahead of schedule by introducing all of you. i was supposed to do that at the end of that. and understand if you have been in my position, i would have wanted you to introduce me first. in [laughter] you understand why that happens, mr. mayor. ibm, of course, delighted to have so many of my yearayor le'

good friends from throughout san francisco and the bay area and the country. mayor lee had some special things he really wanted done on this occasion, and the girl's chorus was one of them, and the boys' chorus would be another of the special activities that he would like to see occur. his emphasis is obviously on including everyone in the city, so from early morning to day until the present time and on through another part of the day there will be various cultural organizations and groups all on the performance arts side who were participating on the state of inauguration of our city. at this time, we would like very much for the boys' chorus to appear and do one of the

favorite tunes that this mayor likes, other than what m. c. hammer does with "too legit to quit." san francisco boys chorus, " america the beautiful." ♪ [boys chorus singing "america the beautiful"]

♪ [boys chorus singing "america the beautiful"]

♪ [applause]