California Metals, Inc. operates a diversified full-service recycling and metal sales operation in El Cajon, California. Founded in 1978, the organization specializes in the recycling of scrap metals, the recycling and re-marketing of IT surplus, and the sale of new metal. The organization’s recent PV installation is consistent with its mission of helping the community at large to transition to a sustainable model of commerce.

Challenge

Ever since the California Energy Crisis of 2001 the owners of California Metals have been troubled by the high costs of electricity provided by the local utility company, San Diego Gas & Electric (SDG&E). When California Metals started operations in 1978 their electricity rates were $.03 per kWh. Between then and 2004 California Metals saw their rates increase by over 600%. resulting in bills over $850.

California Metals had two meters. The meter with the larger loads was on a time of use rate schedule or the ALTOU tariff. Under this rate schedule, energy used during peak times is billed at a higher rate. The other meter was on a fixed rate schedule or the A tariff.

Each meter supplied power to multiple buildings with multiple roof types and pitches. No roof was large enough on its own to house an array able to provide 100% of the energy usage.

California Metals was looking to zero out their electric bills without having a significant affect on their company’s cash flow.

Solution

Borrego Solar was charged with the task of designing and installing a solar electric system that would zero out their electricity bills, and fit on the limited roof surfaces. In addition the financing costs of the system had to be similar to what customer was accustomed to paying the utility company.

One of the areas available for the solar modules was an old, foam roof in poor condition. Borrego Solar designed a no-penetration system for this roof to minimize wear and tear and preclude any possibility of leakage.

Every available, unshaded roof area was used in order to fit the 225 solar modules.

Borrego Solar’s installation at California Metals was the first commercial installation in the City of El Cajon.

Financial Benefits

Solar electric systems produce electricity during peak times, therefore California Metals was given a credit for energy produced at the peak rate. This enabled them to zero out their bill, even though they used more energy than the solar system produced.

California Metals received a 50% rebate from the state of California, a 10% Federal tax credit, 7.5% California state tax credit, and accelerated Federal depreciation. By taking advantage of these government incentives California Metals was able to finance their system so that their monthly energy bill savings and tax savings were nearly equivalent to their monthly loan payments.