Tag Archives for " solar rebates "

California Solar Tax Credit: What you Need to Know

california-solar-tax-credit

The California Solar Tax Credit is the California Solar Initiative

California is the biggest market for residential solar in the country. In fact, among the 10 states with the most solar, California alone has more solar than all the others combined! I think we can safely say that in California the solar industry – unlike in other states where solar is only now just catching on – is a matured industry, with a lot of experience and growth under its belt.Continue reading

Net Metering: A Comprehensive Guide

net metering

Net metering is the policy that enables a homeowner to be credited by their utility when they generate more electricity from a solar array than they use.

You would think that those who go solar would be celebrated as heroes – because if everyone who could go solar did go solar, we’d all have a lot better shot at a livable climate. But instead, a nasty campaign of rumor-mongering is trying to take these true heroes down.

Continue reading

How Much Can Solar Panels Save Me Over Time?

solar panels on roof

Residential solar panels can seem like a hefty investment. And truth be told, without federal tax credits or state incentives, they can be. But if you’re asking how much money solar panels cost, you’re asking the wrong question.

What you need to ask is: how much money will I save installing solar panels?

The Cost of Solar

Solar panels are not the cheapest to install, otherwise everyone would have them. But with federal tax credits, state tax credits, and other local rebates, you’ll save already on the installment process.

Obviously, you’ll also save on the amount of energy you use because you won’t be paying the same price for high energy bills. Electricity is much cheaper in some states than it is in others, so solar is really going to benefit you if you live in a state that offers high prices and tax breaks.

Read our extended post about the cost of solar panels here.

The Cost of Your Solar Depends on…

1. Your region’s insolation (how many hours of sunlight your roof receives an average year)
2. Your region’s policies (ranging from rebates, subsidies, tax credits, net metering and utility decoupling)

Any one of these conditions will affect your cost to go solar. So, worst case scenario; if your state had low sunlight, offered no incentives to help you buy solar, and lets your electric utility charge you more if you use less of their electricity (which you will if you go solar, right?) then solar might be more expensive for you.

Luckily, no state in the US has every one of these potential cost drivers.

In general, some of the more sunless states – for example in the Northeast – have tended to counter their solar deficiencies by offering state incentives and decoupling their electric utilities so that the higher costs of lower insolation won’t hit you too hard in the pocket book.

How much can solar save you?100% free solar estimates

Conversely, abundant sunshine can still mean you need less of an outlay to buy a solar system that supplies your needs in states like Nevada and Arizona, even though they have poor net metering policies and low incentives, because 10 hours of sun a day makes it easy to generate from a smaller (cheaper) system. So each of these elements can be balanced out to counteract the worst effects.

Here’s how much cost is affected by each of these elements:

Insolation

Northern states get fewer than the national average hours of sunlight a year. Alaska is the most extreme example. It gets an annual average of just four hours of sun daily. How can that add to cost?

A solar system will need to be bigger if you live in the northern part of the nation where the hours of sunlight daily tend to be lower, so that it takes a bigger system to supply the same amount of electricity. The further north you go, the fewer hours of sun are available to make your electricity in. For this reason, someone living in Connecticut will have to outlay more money – just for more panels – than someone living in San Diego, for example, in order to go solar. More panels also take more space, so you also need a bigger roof to go solar in Maine than in Arizona.

Federal State and Local incentives:

Rebates, Subsidies and Tax Credits

Solar panels are not the cheapest to install, otherwise everyone would have them. But with federal tax credits, state tax credits, and other local rebates, you’ll save already on the installment process.

The Federal Investment Tax Credit is the biggie. At 30%, this affects every state equally and allows you to use a third of the cost of your solar system to reduce your Federal income tax.

There are so many individual state incentives and they change frequently so it is best to check your state’s current incentives in the DSIREUSA database or contact a solar firm in your area for a free estimate (it is their business to stay up to date on what is available locally).

Net Metering 

Under net metering, the solar power your system produces, offsets the grid power that you use. The meter runs forwards when you use electricity and backwards when you generate electricity, and at a predetermined “true up” period, your electric utility then credits you back for the kilowatt-hours your solar system generates, reducing your electric bill.

The various states have various net metering rates, and you can find yours here, or by arranging a free consultation with a solar firm that installs in your area.

With net metering, the solar panels are offsetting the kilowatt use of the home on which they are installed and the state will pay full retail value per watt to the homeowner; the system works using one meter that can count up and down as electricity is produced or consumed.

Map_utilities_decoupling_for_electric_utilities

Decoupled Utilities 

If you live in the states whose Public Utility Regulator (PUC) allows utilities to charge you more money for using less electricity, your electric bill before going solar will be higher on average than electric bills of people living in the states that have regulated their electricity providers and “decoupled” earnings from sales.

Decoupling utilities gives those utilities an incentive to help you save electricity, rather than to try to sell you more. So utilities in decoupled states like California earn more if you use less electricity.

Conversely, utilities in states like Alabama charge customers more if they use less electricity. So if you live in Alabama and pay the state average of $1,740 a year ($145 a month) chances are good that your electrical use is much lower than a Californian who pays that high of a bill.

One Example Shows Why it’s a Complicated Equation

Let’s look at a typical utility bill. You can find the EIA data on average utility bills in each state here.

Let’s say you live in Alabama, and you pay the highest average bill nationally; $145 a month. That comes to $1,740 per year. But notice; Alabama is not a decoupled state, so this very high bill does not correlate to higher energy use. Alabama utilities are allowed to charge you more if you use less of their electricity.

How does that affect your savings in going solar? That deceptively low use becomes a plus when sizing a solar system. The less electricity you really use, the smaller your solar system needs to be to supply it. The smaller the solar system, the cheaper it is, obviously.

Therefore, even though now you (in Alabama) pay the highest in dollar amount, you might find that a solar system large enough to supply your usage actually costs quite a bit less than average nationwide, simply because you really don’t need as large of a solar system.

You might well not use enough electricity to warrant getting a 5 kW system, the average in these previous examples. You might only need 2.5 kW, which will be a lot cheaper.

OTOH, though, since Alabama is decoupled, your utility could turn around and charge through the roof for those last few electrons you still get from your electric utility. So, in a state like that, it might turn out to be preferable to simply go off the grid, so you don’t get dinged a high rate for using too little utility power.

So, these averages don’t tell you what your case might be.This is why you should consult with a solar company in your state.

So What’s the Real Cost of Installation?

In 2016, installed solar now generally comes in at a bit over $3 a watt, according to the Solar Energy Industry Association (SEIA). A 5kW system, on an average-sized house in 2016 — which would need about 500 square feet of roof space — would cost between $15,000-$18,000 fully installed in most of the US. This is a definite drop in price within even the last few years.

In fact, as of the first quarter of 2016, solar panels have dropped an astonishing 70 percent in price since 2006 according data tabulated by the SEIA.

Keep in mind that this cost applies only if you will be investing in buying your own solar by paying cash for solar systems, as opposed to leasing them.

(Yes, Virginia, You Can Host Free Solar Panels on Your Roof!)

There is no cost if you simply switch electricity providers from your current utility to a Third Party Owner (TPO) like SolarCity or Sungevity. TPO’s are sort of the new electric utilities, they sell you the (solar) power, but they can sell it at a lower cost than your utility by housing your individual solar plant on your own roof, instead of building a dirty fossil fuel power plant far away and then sending that power to your house.

So, renting power from a TPO is more akin to simply switching to a cheaper internet provider and paying less from the first month. There is no investment involved. There are savings, but nothing like the savings possible if buying your own. No pain, no gain.

So, this article only applies to those planning to invest in their own solar:

And What’s the Real Savings with Solar?

This infographic gives you a great look at each state and how much you could actually save just in the first 20 of those years, when you buy your own solar system.

solar-savings

Going solar will affect your finances but in a good way. The thing to look at is how much it can save you, and how soon you can start saving.

In general, you could save between $10,000 and $70,000 – depending on where you live – over the course of the usual warranty period for a solar array, 25 years.

As mentioned earlier, certain states just aren’t going to have as great a savings as others. This is because every state has its own unique combination of the factors; insolation and policies, as not every state offers the same kind of benefits for installing solar, and has the same hours of sun.

Going solar in California can save you nearly $35,000 over 20 years, because California offers lots of incentives to install solar. In an up-and-coming solar state like Georgia, you’ll save a little more than the average. However, if you install a residential solar system in Kentucky, it’s only going to save you a little over $14,000 over 20 years. Still, $14,000 is nothing to scoff at.

Living in Hawaii isn’t so expensive once you’re saving that much money — residents who go solar save an average of $64,000 after 20 years, and $73,000 over 25 years!

Interestingly, these numbers are based on research from 2011 and the prices of solar panels have dropped since 2011 by 60 percent, so take that into consideration when you’re tallying up the savings. In fact, the average price of a completed commercial solar photovoltaic project in 2014 dropped by 14 percent and by more than 45 percent since 2012.

The Savings on Solar are Greatest When You Buy

But by far the biggest savings long-term come when you buy your system, by paying cash if you can (or by borrowing) and paying upfront. This is the big advantage in paying cash for your solar system as opposed to leasing it, or renting the power it produces – the incredible savings over the long-term.

States vary when it comes to rebates and tax credits, but you will see 30 percent upfront savings due to the Federal Investment Tax Credit (ITC) of the gross cost. If you live in a state that has energy saving policies, you’ll see even more savings. It’s best to talk to your solar installation company and research the policies in your state.

Besides the actual credits you receive, there’s hundreds of dollars of year you’ll save on energy usage, depending on your home’s size. Plus, there’s what owning solar panels will do to the property value of your home. A study by the Lawrence Berkeley National Laboratory in Berkeley, California found homes powered by solar sell for nearly $25,000 more than traditionally powered homes. In states where the cost of energy is higher, like New England, Alaska, Hawaii, and the Southwest, these panels are sought after. This means you’re investing not only in a cleaner future, but a more profitable one to boot.

Like any home installation or repair, it’s best to talk to multiple providers. Rates will vary depending on where you live, so do your homework and look into what the total savings will be for you and your home. Just know that the savings are there, and they will be more significant than you think.

So — will solar cost? Yes, but that’s not as important as how much solar will save.

Have you gone solar? How much are you saving on average? Let us know in the comments!

Solar Policy Shifting in North and South Carolina

In terms of developing and producing clean solar energy, Georgia and Florida are doing their best to catch up to the Southwest. Now, it looks like their neighbors to the north are also playing catchup.

How South Carolina Solar Could Get Much Better

Both North and South Carolina have rapidly growing clean energy markets. Since legislation was signed last year, solar has been able to expand in South Carolina. And Duke Energy proposed solar programs to the Public Service Commission of South Carolina, which would produce a total of 110 megawatts of solar power — 50 MW that’s utility scale, and 60 MW of solar through incentive programs — within the next six years. That’s a huge jump, considering there’s only two megawatts of solar capacity connected in South Carolina now.Continue reading

California Solar: Going Solar the Golden State

california_school_solar

Interested in going solar in California? Who wouldn’t be?

Do you live in California? Are you interested in going solar? Then it’s your lucky day. Given the wide range of incentives to choose form, plus the state’s hefty renewable portfolio standard (RPS), installing solar power in your home is easier than you think. Here’s why you should, and options on how to go solar to help you get started.Continue reading

When Does the Federal Tax Credit for Solar Energy End?

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UPDATE: https://understandsolar.com/solar-itc-gets-extended/

Old post:

Yes, the whopping 30% Federal Tax Credit is going to expire.

Did you know that if you install a residential solar energy system in your home, you’re eligible for a whopping 30 percent tax credit? That’s on top of any other incentives offered by your state! But when does the federal tax credit end? How long will it be around? Here’s what you need to know:

Federal Tax Credit? What?

The Energy Policy Act of 2005 initially stated the federal tax credit for residential energy could be applied to solar electric and water heating systems. Then in 2008, the tax credit was extended to geothermal heat pumps. Afterwards, the credit was extended another eight years.

Now, the credit is due to end December 31, 2016. Taxpayers can claim a credit of 30 percent of systems owned and used by a residence, including the cost on the system, installation, and other labor. However, to take advantage, all solar systems must be in service by the 2016 expiration date to count. Other requirements apply depending on the type of solar energy system you install.

How Does the Credit Work?

Instead of a deduction from your taxable income, the credit is applied off your tax payment. Claim it for your primary residence, vacation home, or a new home under construction. The best part is that there is no limit to the dollar amount of the credit! All you have to do is file your tax return and figure out the credit on the form. You won’t get money from the IRS if the credit exceeds your taxes due, but it will roll over into the following tax year.

Note: if you own rental properties, you can’t claim the credit, unless you live in the house for part of the year (e.g. you rent your vacation home during the winter when you’re not there). If you’re not living there all the time, the credit is reduced somewhat — three months of living in that home means you can claim 25 percent of the credit.

How Has the Tax Credit Helped?

The Solar Investment Tax Credit (ITC) has helped homeowners and businesses alike invest in solar energy, driving up competition between manufacturers and installers, and in turn lowering the cost for everyone. It’s been so successful that according to the Solar Energy Industries Association, it helped annual solar installation grow by over 1,600 percent since it began. Yes, you read that right.

How Long Until the Credit Expires?

Unless the federal tax credit is extended further, you’ve got two years to get your solar system installed in your home. Given the way the credit has increased solar manufacturing and growth in solar energy overall, it seems like a great idea to keep the credit going. However, you never know. That’s why if you’ve been debating whether or not to install solar, it’s best to do your research now and act soon, just in case you can’t take advantage of the credit later. Between the federal tax credit and whatever rebates and credits are available in your state, you should be able to reduce the cost of installing solar panels significantly.

The bottom line: Don’t wait to go solar, click the button below to get a solar estimate today.

Image Credit: Tax Credit at Flickr under a Creative Commons license

Opinion: Controversy Over Net Metering Laws

net metering

Net metering and the solar investment tax credit

Net metering, according to Michael J. Sandoval, research associate for the Independence Institute’s Energy Policy Center, is a gift funded by ratepayers that benefits solar companies like SolarCity. But the issue is larger than net metering, and has its roots in the Solar Investment Tax Credit, or ITC, of 2006.

Originally drafted to benefit a wide array of electricity consumers, the 30 percent (investment) tax credit, or ITC, has since become the “sweet spot” for solar firms operating as leaseback entities, for tax equity investors, and for companies who install solar panels using federal, local or regional tax benefits that they can “swap” for additional credit. Originally written to expire at the end of 2008, the ITC – a part of HR6111, passed by the 109th “lame duck” Congress – now “steps down” to 10 percent at the beginning of 2017.Continue reading

How does your State Rank for Solar Power in 2015?

new-york-solar-panel-house

When it comes to a solar policy, how does your state rank in 2015?

If you’re in the Northeast, chances are it’s pretty good. New York, Massachusetts, Connecticut, New Jersey, Vermont, and Maryland scored high marks. Oregon, Colorado, Minnesota, and New Mexico helped round out the top 10.

Those in the South? Not so much. Alabama, Arkansas, Mississippi, Kentucky, and West Virginia came straggling in at the end. Idaho has the worst score this year, with nearly all F’s across the board.Continue reading

Solar FAQ – Your Most Common Questions Answered

solar panel faq

Answers to common questions about solar panels:

Here are your most common questions answered. Feel free to submit more and we’ll add them to the list!

Solar Basics

Roof Related Questions

Prices, Savings, Incentives

Solar Technology

Other

How much can solar save you?100% free solar estimates

How much do solar panels cost?

This is the question, but it’s the same as asking “how much do cars cost”? What kind do you want? How much do you want to save?

There are numerous factors that go into the cost of a solar array for your home, including the state you live in, the size of your electricity bill, the direction your roof faces (South vs. North), and so on.

But this is the primary reason why solar calculators have limited value: every additional factor that gets added in the calculator can dramatically change its accuracy. In many cases it’s going to be far more effective to get a qualified solar installer to review your details to come up with a hard cost estimate.

How long do solar panels last?

See our post: How long do solar panels last?

Many customers wonder about ‘new solar technology’, but actually the technology was developed in the 1950’s, and has been consistently improved upon. Initially solar panels were mainly used by NASA, so the fundamentals are strong enough to support satellites and astronauts.

Solar panels like the ones that will go on your roof are designed, tested in labs and real life to withstand rain, snow, hail, wind and of course the sun. The predecessors of modern solar panels made in the 1970’s are still producing power. Today’s panels also benefit from 60+ years of development and improvement!

Bottom line: All panels are guaranteed to be producing power in 25-years, and most installers will offer a 10-25 warranty on workmanship and a power production guarantee.

Can’t I just get a ball-park price online?

There are indeed some ways that a ‘ball-park’ price can be given through an online tool, however these are often not accurate because no two homes are the same. If you answer 5-10 questions, and you’re guessing at some or all of them, then the answer you get back is going to be very wrong. Reputable solar companies use sophisticated software, years of experience and take into account the complicated utility bill structures, finance options, etc. to give you a customized proposal that is specifically tailored to your home.

Given the complexity, wouldn’t you rather have an expert’s opinion? We recommend speaking with a couple of installers to make sure that you understand your options. All good solar companies will happily take the time to answer your questions.

What’s best place to get solar panels?

You may be surprised to learn that some states – not especially known for the amount of sun they get – have the best payback rates for solar panels due to the presence of local incentives.

Solar panels don’t necessarily work better in sunnier areas (hotter panels can be less efficient). The largest factors in determining the payback of a solar array is the cost of electricity in your area and the presence of incentives, tax credits, or other programs designed to make solar more affordable.

Is my roof suited for solar?

About 60% of roofs are suitable for solar. If your roof is not suitable, you might be able to place the solar installation elsewhere on your property.

There are many variables in determining if a roof is suitable for a solar system, but the three main ones are: orientation, shading and roof condition.

Orientation: your roof should be facing South, West or East.

Shading: solar panels need direct sunlight for best performance, but some shade during parts of the day is OK.

Roof structure and condition can be hard to assess, but generally speaking if your roof is in good condition and your home is less that 25 years old you should be fine.

On average, you’ll need at least 300-500 square feet of roof space that is facing the correct direction, gets good sunlight and is in good condition.Complex roofs may require a more custom design, however current micro-inverter technology should allow for a successful design and installation. A qualified installer will be able to help you with the specifics of this.

Check out our post on the topic: how does roof position affect solar panels?

If I have solar panels installed how will this affect my roof?

Current solar mounting hardware and techniques should cause no more harm or risk to your roof than any other ventilation duct or roof penetration.

You can ask local installers: ‘what is your method of waterproofing any penetrations you make?’

Do I need to have the roof renewed before the solar panels go on?

When you install a solar array it does add quite a bit of equipment on top of the roof: the entire scaffolding for the panels, wiring, etc. This means that any roofing projects should be taken care of before the panels go up, if possible.

How will solar affect the aesthetics of my roof?

Having solar panels installed raises the value of your home, saves you money, and gives a modern look to your house.

The effect of the installation to the roof is minimal and when installed, panels don’t create noise, not even in windy conditions.

Besides the traditional blue color, there is a possibility to choose black panels for those who desire an appealing technological look while maximizing efficiency.

Isn’t solar expensive? How much do solar panels cost?

In a word: no. Solar is quickly becoming mainstream technology and over the last 7-years or so, the price of solar panels has fallen by 80%! The biggest benefit of solar is that you can lock in years of predictable and affordable power (the sun’s energy is free after all), and the biggest hurdle has been costly equipment.

With the dropping prices, more efficient permitting and installation processes plus innovations in financing – solar is more affordable than ever.

Are prices going to drop quickly in the near future? Is it better to wait?

While it is likely that prices will continue to decline slowly, a much bigger impact on the final price you pay are the incentives. The biggest and most effective incentive is currently available only until the end of 2018.

So, how do I save money with solar?

Thought you’d never ask! The main savings from installing solar is replacing your expensive and volatile electricity bill with a new source of more stable and cheaper power. Your power bill is rising each year (and sometimes by large amounts!), and most estimates calculate that your bill will be 2-3x more expensive in 20-years. So when you install solar you are signing up for cheaper power for a 20-year period. You are eligible to receive incentives to help reduce the initial cost (see below) and then solar power off-sets the bulk of your utility bill.

This off-set is known as “Net-Metering.” You receive a credit for power produced from solar, typically during the day when prices are high. Then at night, when we are using most of the electricity you are charged normal retail rates. During the course of the year you will average out that your credit offsets the most expensive parts of your bill – saving you money!

What about my home value? Will solar have a negative or positive effect?

This is a great question, and definitely a concern for most homeowners that go solar. There are two sides to this question:

– Firstly you’ll want to make sure that you go solar with an experienced and reputable company that will properly install the solar panels on your roof. “An ounce of prevention is worth a pound of cure.” Solar installations do not cause any long-term damage to your roof when properly installed.

– Secondly, now that we know the solar will be properly installed, there have been many studies, by the National Appraisal Institute, Wells Fargo and Lawrence Berkeley National Labs that suggest solar adds significant value to a home – often the added value in equity is more than the cost of installing solar in the first place!

So in simple terms, solar increases the value of your home and can help reduce the time to sell your home.

When does the Federal Tax Credit for solar panels expire?

The 30% solar ITC (Federal or Investement Tax Credit) has been extended till the end of 2018!

The ITC will now continue at 30% untill the end of 2018 for both homeowners and businesses, and then step down over the next three years to 25%, then 20%, then 15%, until it is just 10% in 2022. The ITC is essentially a 30% discount on the cost of going solar.

See our full article on the extension of the solar Investment Tax Credit.

 Is a solar lease a good idea?

Like everything else in solar, it depends on you circumstances – credit score, available cash, size of solar array, and the specific financing options available to you.

It also depends on whether you want to save more money now or over the lifetime of the system. Buying outright can earn you a lot more if you’re willing to wait for it, but both options will save you money.

We’ve written a full article on this, please take a look: Advantages of Paying Cash for Solar Systems

What incentives are available for me?

There are three major types of incentives: Federal, State and Utility/Local:

– The main Federal incentive in the 30% Investment Tax Credit. If you lease your solar system, this is factored into your lease payments, so you take advantage of the savings from day one. If you own your system, then 30% of the value of the system will be credited as a tax incentive (e.g. you system has a value of $30,000, then you will receive a $9,000 tax credit, which means you must have at least that much eligible tax liability after all of your other deductions!* Speak with your accountant to understand how this could benefit you and if you qualify.)

– State incentives vary from up front rebates to additional tax incentives. Currently many states offers both up front incentives and additional tax incentives.
– Some Utilities, Counties or Cities offer rebates as well. This will vary greatly from region to region, so it’s best to ask your local installer, although there is some information here.

What financing options are available (lease, loan)? Should I lease (or use a PPA) or buy my solar system?

Ah, to lease or buy a solar system – this is a great debate. Ultimately both have their pros and cons, and here we try to break this down for you. If you choose to own a system, it will likely require $20,000 – $50,000 up front (you’ll get 30% back as a tax credit on the current tax year) and you may have more long-term financial benefits, but the risk and cost are yours to manage. With leasing a system you will have more immediate benefits, including immediate savings and no maintenance worries, but you will forgo some of the long-term financial benefits of ownership.

Purchase Option

OWN/SOLAR LOAN: If you can afford to a own a system (either cash or loan) and your simple-payback is shorter than the period of workmanship warranty, and you don’t mind concerning yourself with maintenance issues, then ownership might be a good option.

LEASE / SOLAR PPA: If you like the idea of 15-30% savings on your electricity costs for years to come without the risk or complications of ownership, or you don’t want to invest the money or don’t have the tax liability, then leasing might be a good option.

BOTTOM LINE: Most reputable installers will be able to talk through a couple of solar financing options with you, so you can see in more specific details the cost-benefits of both models.

How do I know if I qualify for a lease program?

There are four general requirements for a lease program, and there may be some specific requirements from your local utility that you will need to clarify with your local installer. That being said, generally speaking:

– Leases are offered in these states (* denotes broad lease coverage): Arizona*, California*, Colorado, Connecticut*, Delaware, Hawaii*, Indiana, Louisiana, Maryland*, Massachusetts*, Missouri, Nevada*, New Jersey*, New Mexico, New York*, Oregon, Pennsylvania* & Texas

– Typically you must have an average electricity bill of $100 or more.

– You must own your home, and plan on living there for at least 2 more years.

– You must have good to excellent credit. Most programs require a FICO score of at least 650.

And of course you have to want to go solar!

Can you confirm that I would not need to put any money down to go solar?

In many of the above states with Leasing or PPA programs, it is very likely that you will be able to go solar with $0 down. You will need to speak with a solar installer to confirm this.

What should my monthly Solar Lease or PPA payment be?

Roughly speaking, most people see about a 15-30% savings per month on average as compared with their electricity bill. This amounts to an average of roughly $40 in savings per month.

What happens after a solar lease or PPA agreement ends?

Great question. Most providers offer essentially the same three options:

– You can buy the system at ‘fair market price’, which would theoretically be pretty low at that point.

– You can have the system removed by the original installation company

– You can extend the term of the lease period.

Should I wait for better technology?

It’s always nice to think of a ‘silver bullet’ technology, or massive short-term improvement, but solar technology is actually pretty established (and boring), so massive changes in the short-term are unlikely.

The cost and efficiency improvements are incremental, and mainly do to small efficiency gains and manufacturing improvements.

After all, there are lots of PhD’s in Physics, Chemistry, Engineering and Industrial Design working on this all the time!

Add to that – your technology has to stand the test of time, so any ‘revolutionary’ new technology will have to be proven before you want to take the chance on it.

Solar panels are already revolutionary technology that is ‘better technology.’

Does solar work on cloudy days? What about cold or snowy days?

Solar panels do require sunlight to make energy, however with light or intermittent clouds, your system will continue to produce energy. If there are thick, dark clouds, your system might still produce energy, but it may also temporarily shut down and automatically turn on when their is adequate sunlight.

Solar energy has been massively adopted in Germany (not your sunny vacation destination) and also US states like New York and Massachusetts (even more than Florida!).

Solar energy works great when there are cold or crisp sunny days. Of course, there are fewer hours of sunlight in the winter, but winter can be just fine for producing solar energy.

Which brings us to the question of snow. Snow does affect solar production when the panels are totally covered, however there are two factors that make this only a minor issue:

1. Most installations are installed at an angle, so the snow will melt and slide off.

2. Because the solar panels are dark, and snow actually allows a lot of light to pass through it, the snow will melt quickly off your panels (think about how a sunny patch of your driveway or the road is quickly free of snow.

Related: 

What are the most efficient solar panels?

All solar panels that will be offered to you work in essentially the same way: they all convert the sun’s rays directly into DC power. Solar panels consistently make small improvements in efficiency, but the biggest benefit of solar technology is that it’s time-tested and proven; that the technology lasts and continues to produce power for 25 years at least.

There are three main categories of Solar PV panels (or modules):

1. Mono-Crystalline: These are the most ‘efficient’ at turning sunlight into energy. These panels will require the least amount of roof area required to produce 1000 kWh. They are often a darker blue, and are also typically used to produce the effect of an ‘all black’ solar panel. They are also the most expensive.

2. Poly-Crystalline: These panels are very similar to Mono-Crystalline panels in their basic form, but are slightly less efficient. The cells are often a brighter blue, and may appear more ‘speckled’, although they are also often available with a black frame or black background (technical term ‘back-sheet’). These are the most widely used solar panels as they have a good blend of efficiency and affordability. They are less expensive than mono-crystalline panels.

3. Thin-film: These panels are often not made with silicon wafers, but made by applying a very, very thin layer of a special ‘paint’ of very fine particles of specific metals. This technology is the relative ‘new-comer’ on the block and has the benefit of a very even coloring. Often the cost of the panel is the lowest, but the most amount of roof space is required and sometimes installation labor can offset the savings. These panels have some additional benefits, but are least widely used in residential applications because they require more roof area.

Check out our post on the most efficient solar panels.

Should I buy American made solar panels?

This is a great and relevant question and topic. Solar, like many of industries, has become a truly global industry, and like many other manufacturing industries, China has taken a general ‘lead’ in terms of volume of products manufactured. Take a look at your phone, your computer, your clothes, etc. So, while I support the growth of the American economy as much as anyone, it’s difficult to say that you should purchase American made solar panels.

In terms of job creation, installing solar and helping your friends go solar will create far more jobs than simply purchasing American made solar panels – so that’s the good news!

Then there is the complication of how solar panels are made and understanding global corporations. Some companies used to manufacture a small percentage of their product in the USA, but were Chinese corporations. There are “American” companies, with headquarters in the USA that manufacture in Asia. There are German companies that manufacture in the USA.

Ultimately whether you decide to purchase American Made solar panels or solar panels manufactured elsewhere in Asia, you can rest assured that your decision to go solar has a positive impact on American job growth! Plus you’ll benefit financially, create a cleaner, safer and more robust energy system for the whole country, contribute to cleaner air for your children and community… the list goes on!

Will I be ‘off the grid’?

Ah the image of the cabin in the woods with a solar panel! This is what most people think of when they think of going solar.

You will most likely be installing what is called a “grid-connected” solar system, so no you will not be “off the grid.” This means that you will continue to draw power from the power lines at night, but during the day you will use your solar power, or “spin the meter backwards” and you will get a credit for what you produce that offsets the cost of buying electricity at night. This is called net-metering.

What is net metering?

Net-metering is one of the most important concepts of saving you money with solar panels. The basic concept is that your energy meter looks at the ‘total net production/consumption.’ So you will receive a credit for all the energy you produce from your solar panels that you don’t use (think during the day, solar panels are making electricity, but no one is home (and the lights are off, right?)). Then at night, when everyone is home, the lights are on, etc. you will be charged for the power you use. So you get a credit during the day, and you use that credit to offset the power that you purchase at night. That’s the basics: charged for power you use – credit for power you produce = total amount you own. And that accounting process is called “net-metering.”

Do I need batteries for storage?

No, you will not need batteries for storage. However, as the price of batteries comes down, and their benefits are better understood, batteries will likely become a more affordable and mainstream technology. So go solar now, and add batteries later!

Caveat: if you live in an area with frequent blackouts, or having power is critical, you can speak with your local installer about battery back-up systems. Batteries do add a significant cost in materials, installation and ultimately maintenance, so you’ll want to be sure about your options.

Will my solar work if the power goes out?

No, your solar system will shut off automatically if the power goes out to protect maintenance crews that might be working to fix the problem. If power goes out regularly in your area, you can discuss options with your solar installer, as there are ways to add batteries and specific products that can help you have at least some basic power during power outages.

 

Do I need a battery backup system for my solar panels?

Short answer: probably not.

Most solar arrays are grid-tied meaning they have no batteries and simply feed energy into and out of the grid.

There are major cost and maintenance advantages to not having to deal with batteries. See our full article here: how does grid-tied solar work.

What happens if it snows on my solar panels?

Great question. Obviously any physical obstruction to light is going to keep solar panels from producing electricity, and one important thing to keep in mind is that if one panel in a solar array is significantly covered with snow or debris, then it compromises the output of the entire system (think Christmas lights). This can be circumvented with panels that carry their own microinverters, but that’s another topic.

Why would I want a phone call from a solar installer?

There’s only one way to know if solar will work for you: get an estimate from a professional. The reason is that each system is unique, and the costs of installation depend on your geographic location, incentives, roof shade, among other factors.

We’re big fans of having options and our goal is to get you at least a few different solar quotes to evaluate. Once you have a few proposals you can decide which one is right for you.

We feel that solar panels are the next refrigerator: at some point we’ll wonder how we lived without them. As solar becomes cheaper than traditional electricity in the US and other parts of the world, this trend will only become more obvious.

How do I get a solar quote?

We’d love to help! Click the button below and fill out the signup form and we’ll get you started.

By filling out the signup form on the site we’ll help you get in touch with solar installers in your area who can answer questions and provide a specific estimate. Our goal is to get several estimates in your hand that you can use to compare options. With a little additional research you should be able to determine the best solution for your needs.

What happens if I move?

Great question, as we know now that solar leases last around 20 years, and solar panels at least 25 years… and there is a good chance we’ll move in the next 20-years!

Of course each market will be slightly different, and it depends if you own or lease, but here’s the simplistic answer:

If you lease your system, you have a couple of options:

– Your buyer will need to assume your lease, although if this is still a good option for them, as it likely will be, they will be interested in assuming the lease.

– You can also buy-out your lease from the provider at that point, and this should increase the sale price of your home.

If you own your home, it’s pretty simple:

– Solar installs increase the value of homes and reduce the time on market. So as long as your solar system is in good shape, this should make it easier and more profitable to sell your home.

Of course you will hear horror stories of things gone wrong in selling a home with a solar lease or solar panels. However, if you have a marketable home and reasonable sales expectations and a good real estate broker, solar will be an asset, not a deterrent. This is the case in the vast majority of home sales. What is certain is that you will need to be aware of the solar, just as you would be prepared about questions regarding a pool or a recent remodel.

Photo Credits (all CC license via Flickr): [1]

New York Solar Panel Rebates

New York State Solar Panel Rebates

New York has excellent solar rebates that pay homeowners a lot of money back after they’ve installed solar. Some rebates you can even get up front through the solar installation company.

New York’s Basic Solar Rebate: $1,750 back for every 1kW of installed solar.

The only caveats here are that there is a cap of $12,500 and you can only claim up to 40% of the total system price. For an average-sized system of 5kW, this rebate will give you $8,750 off the cost of the system.

Note: some solar installers in New York may offer to pay you the rebate up front so that you don’t have to wait to get the money back.

New York’s Solar Tax Credit: 25% off the cost of the system

This is another great credit because it pays for a huge chunk of system cost. All you have to do is file for the tax credit with the IRS after you’ve purchased the system.

Where do I learn more?

The best place to learn more about solar panel rebates in New York is to get a free estimate with a local solar installation company.