Pero Family
Ahwahnee, CA
7.6 kW

“I got tired of paying thousands of dollars a year for electricity.”

Situation:

When John Pero moved to California from northeast Texas in 2001, with his wife Jannai and their four children, he soon began paying twice as much per month for electricity for less energy consumption.  In Texas, Pero was accustomed to paying an average of $200 for 1,800 kWh of usage per month. In California, however, his monthly electricity bills averaged $400 for only 1,300 kW of usage and the Pacific Gas & Electric (PG&E) rates were increasing by more than 7 percent per year.

Located near Oakhurst and approximately 45 minutes from Fresno, the 3,400 sq. ft. Pero home is situated on 40 acres. The house was built in 1996 with some energy-efficient features, such as triple pane windows, extra insulation in the walls and ceilings, zoned heating and cooling, and a solar water heater for the pool. In addition to routine power needs for appliances, lighting and electronics, the Pero family needs electric power to operate the pump for the family’s swimming pool and two water well pumps.

Challenge:

The Peros expected that their utility bill would continue to increase at more than 7 percent per year and would soon be paying more than $5,000 per year for electricity.  They also had concerns about the possibility of paying even higher energy prices if Congress were to pass any type of carbon regulation legislation.

Both John and Jannai are self-employed, and have supported their children’s education, from home school through college, and are committed to being financially independent and responsible.  John runs a consulting business focused on instructional design related to technical training in Silicon Valley. Jannai is a public speaker, health educator, and Senior Sales Coordinator with Juice Plus.

Solution:

a 7.6 kW ground-mounted solar system from Acro Energy.  John likes having a ground-mounted system because the family has ample open property bathed in great sunlight. This design also allows easy maintenance for hosing off dust and bird droppings in the summer and clearing snow in the winter. It also prevents the system from being obstructive in any way on the house’s roof.

What prompted the Peros to transition to solar power?

“I got tired of paying thousands of dollars a year in electricity bills,” John Pero commented. “For me, this was purely a financial decision.” It was a financial ‘no brainer’ when he saw his energy bills increasing each year versus paying a fixed loan payment that was less than his electricity bill.

John said that one of his neighbors told him that he had purchased a system from Acro Energy and wanted to know if he was interested in a system as well. From there, John contacted Acro Energy for an estimate.  He felt that Acro Energy’s pricing was reasonable, the timing of the installation worked for him given rebates and tax incentives, and Acro Energy could install the system he needed quickly and professionally.

A year and half earlier, he had another solar installer provide an estimate, but he had a sense that the other solar company was too small and lacked the depth of experience or staffing to support his system from a service and repair standpoint. The Peros were so impressed with Acro Energy and their representatives.

Result:

John said that his solar system is powering 100% of his entire home, the swimming pool pump and water well.  Current usage at the Pero property averages 32 to 36 kWh per day throughout every season of the year.  After switching to solar, they converted to a Time-Of-Use meter, which measures electricity usage hourly, making the family eligible to save more with solar.   The Time-of-Use meter allows the family to sell their solar electricity to the grid during the day when electricity prices are higher (peak) rates and buy electricity from the grid at night when they are lower (off-peak).  John and Jannai like selling high and buying low, saying that it’s a way for consumers to secure an energy credit even if they use a little more power than they make throughout the year.

“For the entire year we have generated a little more credit than we have used,” said John. “At this point we have a credit of $375 that should carry us over to our annual 'true-up' period.” The Peros have paid only $98 in 2009 to PG&E versus what would most likely have been more than $4,800 without solar power. This amount includes approximately $12 per month in transmission and meter rental fees.

John Pero estimates that his return on investment (ROI) in the solar system is six years if one factors in $4,800 per year plus a 7 percent rate increase and solar rebates. However, John uses a different method arriving at an ROI in only three years.

“Since Jannai and I are self-employed, by the time we pay federal, state and social security taxes, we are taxed at over 50 percent of what we earn,” John said.  “This means that to pay a $400 electric bill, we need to gross $800. If we reduce our expenses by $400 a month, this is $800 less per month that we have to gross just to break even.  This cuts the ROI in half. So, in terms of real dollars, the ROI in our system is three years  -  not six years.  And I like those numbers.”