If the sun is beating down on your roof every day and you haven’t gone solar, now is the time to do so. Deployment of solar energy systems in the East Bay exploded over the past decade. We pay some of the highest rates in the country for electricity; we get a lot of sunshine; costs have dropped; and new ownership and financing models allow more people to choose solar. Going solar is a significant decision, similar in scope to buying a car. You should understand the basics of solar energy, your options to go solar, and what questions to ask solar professionals. You are more likely to be satisfied if you are an informed consumer.
How Solar Works:Photovoltaic (“PV”) systems do their thing through two main components: Panels (or modules) convert sunlight to electricity; and Inverter(s) that convert direct current (DC) from the solar panels to alternating current (AC) for use in your home (and to the PG&E grid).
Generating Electricity: The amount of electricity (measured in kilowatt-hours, or kWh) produced by any solar system depends on two factors: The power rating of the system (measured in kilowatts, or kW); and the amount of sunlight that the system receives. Calculating the amount of sunlight a solar system receives depends on several factors: The orientation of the planned system (the roof angle/pitch, and compass direction impact how much sunlight hits the panels over the course of a year) and shading from nearby objects (such as chimneys, and trees). In the Bay Area, a South facing roof with no shade is ideal as the sun is generally south of us for the entire year and high-noon is south, so such a roof will get sun all day, all year.
Your Ownership Options: Today, ownership options for solar are similar to those for cars. It’s important to understand the differences and choose the one that’s right for you. Purchase a system with cash or a loan and own both the system and all the power it produces for its lifetime (30 yrs or more). You also are the beneficiary the 30% Federal Tax Credit (which expires at the end of 2016). Lease a system and own the power it produces over a set period (typically 20 years) in exchange for monthly payments. The tax credit goes to the leasing company. A “power purchase agreement” (PPA) is very similar to a lease in that you buy the power from a system owned by a solar company at an agreed-upon rate over a set period.
Moving Forward: When evaluating your options to go solar, you should always do your homework. Talk to friends and neighbors who have chosen solar, use common sense, and be active and engaged in dealing with solar companies. Below are some suggestions on how to become an informed consumer.
KNOW YOUR SITUATION: Know your electricity usage. You should understand how much electricity your home uses. Your PG&E bill will show your electricity usage in kilowatt-hours (kWh) and the amount you pay for that electricity. Are you planning any changes that will affect your electricity use (such as buying an electric vehicle, planning an addition to your home, improving your home’s energy efficiency, or kids leaving the nest)? Discuss your usage with the solar companies you interview to get a system sized for your anticipated needs. Know your roof. Is your roof appropriate for solar? Look at its physical features and discuss with a solar professional. A solar professional can calculate the amount of sunlight expected to reach a planned system over the course of a year. Does it receive a good amount of sunlight or is it mostly shaded? What about the age of the roof? If you plan on replacing it soon, you may want to replace it prior to a rooftop solar installation. Know your finances. Like any major decision for your home, it’s wise to understand your finances when shopping for solar systems. Although sunlight is free, buying or leasing solar systems, or paying for electricity under a PPA, are not.
DO YOUR HOMEWORK: Get the best deal (which may not be the lowest price). As with any major purchase, make sure to get multiple bids for your solar system. You will find the market quite competitive, with multiple solar companies competing for your business. Research your solar company. Before entering an agreement with a solar company, find out how long they have been installing solar (as long as their warranty?); ask for references of solar installations in your area and call them; ask for proof of licensure, and check with the CSLB to ensure the firm is in good standing; ask if they are a member of the Solar Energy Industries Association (SEIA), the national trade association for solar that requires all its members to abide by a Code of Ethics. You can also check with the Better Business Bureau, Yelp!, Diamond Certified, and other consumer guides.
KNOW WHAT YOU ARE BUYING: You would never purchase or lease a car without knowing what type of car it is and maybe how it performs, the manufacturer, the warranty, etc. Same with solar—some leases and PPAs do not even specify a type/brand of panel. What good is a guarantee if the company is not around in 20 years to honor their warranty? Twenty five years is a long time! Choose modules from name brands that you recognize, not a start-up, solar-only company that is here today and gone tomorrow. Remember the Delorean? It came with a 100 year warranty. You don’t want to be left with a problem on your roof down the road. Questions to ask before entering an agreement: How many and what brand of solar panels? What is the system size? How much electricity will the system generate each year? How much money can I expect to save with this system? Based on what assumptions? How much do I pay up front, and how much over time, for how long? What will the system look like once installed? Will I receive a system design for my review and approval before installation? Will I be required to make any changes to my home (e.g., roofing upgrades)? What do the warranties cover and what are their durations? For leases and PPAs: What is the length of the lease or PPA? Will my payments increase over time? By how much? What happens if I wish to end the lease or PPA early? Can I purchase the system, either during the agreement or once it ends? What are my options when I sell my home? Who is responsible for repairs and maintenance on the system?
Bottom line: Solar is a great investment—it is very reliable, predictable and is much more affordable than power from the utility, but make sure you know what you are buying, from whom, and how you are going to finance it. Good luck—enjoy the free sunshine!
Bob Winn
President
Sky Power Solar – San Ramon
www.SkyPowerSolar.com
(925) 202-2783