The lack of regulations and guidelines for solar panel systems in the Valley does not make Graeme Walker happy. The CEO of Alba Energy, an Austin-based solar firm which installs and monitors solar power systems, said solar installation guidelines like the ones he has worked with in Austin “technically make our life easier.”  With regulations, all companies in the market have to follow the same regulations, the same playbook, from project assessment and sizing the system to design and installation requirements.

While being one of the first solar energy firms along the border lets Alba steal a jump on the competition, it also means that Alba has to spend considerable effort on the education of both commercial customers and municipal staffs dealing with permitting and inspections.  Regulations, he noted, also deflect fly-by-night installers who can give the industry a bad reputation.

Walker first saw the Valley six years ago as an executive with a renewable energy company researching the offshore wind market. A CPA with renewable energy experience in the UK and the U.S., Walker said, “I could see the growth coming here,” and decided the Valley would be the next place to go.  Alba was founded in 2013, assembling a portfolio of commercial solar projects in Austin before opening its Valley office in 2015.  Surprisingly, despite its reputation for sunshine, the Valley does not receive that much more solar energy than Austin.

Alba, which has a professional engineer on staff and is licensed as an electrical contractor, approaches every project as the start of a long-term relationship with a customer, reinforced by quality and service.  “We do our assessments the way they should be done.  We’re very focused on not outsourcing installation.  It’s more expensive for us to hire, train and maintain people. But we keep control. That’s what sets us apart,” Walker said. The local crew, which includes UTRGV engineering graduates, installs panels warranted for 25 years.

Initially, Alba remains in control by including a five-year “headache free” period of full maintenance and Wi-Fi monitoring in the commercial installation package. “Every system (commercial and residential) we do is linked to a data base. We monitor to make sure we are delivering. It lets us catch any problems.”  If a panel’s production dips, the tech gets an alert.

“Residential installations help seed the local market,” Walker said. “But the goal here is to do a lot of larger commercial projects. We look for manageable sustainable growth.”

Large power consumers include cold storage facilities, manufacturers, automotive dealers and fast food chains.  “They are getting pressure from their supply chain, which want to see them go more green,” as an indicator of corporate responsibility, Walker said. “One of main reasons we are in the Valley is the opportunity for PACE financing, which is private money administered through county tax assessments.”   The PACE mechanism is now in place in Cameron, Hidalgo and Willacy counties.

“We have a lot of larger projects that will be using PACE,” he said.  Alba has already closed contracts with some, and the companies are arranging financing with their banks.  PACE requires third-party validations of the engineering, which Walker said is a good thing.

Two main forms of federal tax credits (accelerated depreciation and 30% investment credits the first year) apply to solar installations, Walker said. “These two combined add up to 60% of the system costs in the first few years.”  An additional incentive to install solar is the ROI of five to eight years. “You save money from year one on your energy bill, plus you get tax credits.”

Walker doesn’t recommend oversizing a solar system, because any overproduction does not get significantly reimbursed by power companies currently. “Typically we size a solar system to offset 75% of annual use.”

“Some electric providers will only give you the fuel rate. A provider like Green Mountain has a very generous buy back,” said Walker. As a business’ electric contract ends, he recommends switching to one like Green Mountain that is structured for solar.  Unlike Austin, no local utility is giving rebates here for solar installation, which should change with customer demand.

Alba has provided informational best practice training for McAllen city inspectors, “showing them the standards we were held to in Austin, telling them about national solar codes,” which covers things such as distance to roof lines. Alba Energy has installed solar panels at the McAllen EDC office as well as on homes in the region.

“We’ve grown fairly quickly and acquired divisions of other complementary companies,” Walker said.  “We are here as a Valley-based company,” noting that Alba gave a verbal commitment to the EDC to grow and sustain growth here

For more information, see albaenergy.com. 

This story by Eileen Mattei appears in the December 2016 print edition of Valley Business Report.