PlumbingandMechanical Solar Thermal Report Summer 2011 : Page 3

The Ewa Villages housing development features solar thermal technology. Hawaii’s climate allows for open solar thermal systems to be installed where freeze-control mechanisms are not needed. Hanson 1,500-gallon storage tanks are part of the solar thermal system at the Waikiki Shores condominiums. “By the time I opened my business in 1983 I was thoroughly knowledgeable on installation and application. The first solar job I did was this two-tank, 6,000-gallon solar system for a condominium. I went for the big stuff right away. I’ve done as large as 5,500 gallons with my own company. That’s a lot of panels.” Solar everywhere: Higher energy costs have contributed to Hawaii being the nation’s hot spot for solar thermal installations. “We have the highest utility rates in the country,” Allen points out. Thus, it is not surprising Hawaii was responsible for nearly 80 percent of solar installations in the country in 2009 (Allen cites 14,000 installs in the United States that year with 8,200 coming from Hawaii). Allen notes in the counties that encompass Oahu and Maui, 3,656 residential systems were installed in 2010. Allen’s company does about 200 to 300 solar thermal residential installations per year. Those add up to $2 million in annual revenue. “Realistically, I could do 400 a year. The commercial sector is still huge,” he says. “We’re in a unique environment and marketplace here. There is nothing else like it in the country. We don’t have freeze problems [the majority of Allen’s systems are open, meaning no heat exchangers, glycol solutions or freeze-control mechanisms are used]. Piping installations are as basic and simple as they can be.” While Hawaii continues to be at the forefront of solar, Allen feels certain potential hot spots in the country are missing the solar boat. “Germany installed 100,000 solar thermal units in 2009,” Allen points out. “The U.S. did 14,000. Why is Germany so pro-solar? It’s cultural. Nobody cares here. Burn it and burn it some more. The southern belt of this country has 90 million people in it. It’s basically untouched. It’s ridiculous what is being left out on the table.” Plumbers, step forward: Allen is a strong proponent of having plumbers install solar systems. “I don’t think the solar industry will become anything unless plumbers tackle it and embrace it,” he states. “If the plumbing industry does not take this seriously, solar will not take off as an industry like it needs to. There are guys here who are not plumbers but are running solar companies as sales and installation outfits. I believe plumbers don’t do solar work because of the sales and marketing aspect. Solar contractors are not technical enough to handle the larger installations with pipe sizing and the more mechanical applications. If you are a plumber, you can kick butt with this.” Like any other industry, competition factors into the equation. “Every business of any type is competitive,” Allen says. “I don’t care if you are a roofer, a contractor, a solar dealer or a solar contractor. You have to be good at what you do. Right now, the business margins aren’t quite where I would like to have them.” While Allen is highly regarded for his technical expertise in the field, he’s also mindful of the ultimate result of taking care of his customer base. Kane Coyle , the operations manager at Allen’s, has seen his boss work his magic around Hawaii for the last 18 years. “The reason he has been so successful is his purpose is in the right place,” Coyle notes. “He always has been on the driving side of the solar energy industry. Hot water is very much a part of what he does and he brings that attitude to the whole division of the company. Even with tankless gas, he comes up with ways to make it work on the solar end. If we’re doing a commercial job, how do we size it correctly so we’re not over-creating hot water? “He doesn’t want us putting in systems just to put in systems. He wants to put in systems that are right for the end user.” Solar ups and downs: In 2008, Hawaii became the first state in the nation to pass a law requiring that all new homes built after Jan. 1, 2010, be equipped with solar or other energy-efficient hot water systems. Allen is not a fan of the legislation. “I’m a board member of the Hawaii Solar Energy Association and our organization wishes the legislators hadn’t passed the new construction solar requirement mandate,” he says. “Our industry had it just right and they have messed up the positive position we had developed with builders prior to this mandate. We are working with Summer 2011 Solar Thermal Report 3

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