FAQ

A solar system using batteries for storage can "ride-out" utility blackouts. Batteries add significantly to the expense of a system while providing no payback, need weekly maintenance, are hazardous and will need replacing every five to ten years. For this reason most city dwellers are opting for a "grid-tie" system.

Today in California you may connect your solar system directly into the wires of your utility. Since the "Net Metering Law" allows you to do this you will actually be spinning your meter backwards when your system is generating more power than you are consuming. When you generate excess electricity (more power than you are using) it will enter the grid and be used by your neighbors. Your meter will tally the excess and give credit your account. After a year the excess credits are eliminated and you balance is adjusted back to zero again. In effect, if there are any unused energy credits at the end of the year, the utility received this solar power for free.

Because of the Net Energy Metering (NEM) law, Californians are allowed to "sell" clean solar generated electricity to the utility at the same price at which it was purchased. This is fundamental to the economics of generating your own power and has been instrumental in the development of Distributed Generation (DG) of power. Without Net Metering, the utility would, as it has in the past, sell energy to you at retail but buy any energy from you at wholesale pricing. This is a huge benefit to anybody owning the property now and in the future as there are only a limited of Net Metered systems being allowed in any utility's territory. The current statewide cap of 2.5% of any utility's customer base is will soon be reached and NEM systems will no longer be available. The comparison to the HOV yellow stickers awarded to buyers of qualified hybrid vehicles would apply here. Only 60,000 of these stickers were issued and cars with the privileges of the "fast lane" commute are worth more than even newer versions without the stickers.

Typical residential Solar PV systems range in size from fifty to six hundred square feet. A system composed of the very highest efficiency mono crystalline cells will produce 1kW per hour for every 60 square feet. Less efficient polycrystalline cells will require 90 to 130 square feet while thin-film systems need the largest area of all - sometimes as much as 300 square feet to generate 1 kilowatt.

New York’s investor-owned utilities must offer net metering on a first-come, first-served basis to residents that install a photovoltaic (PV) or other renewable generation system up to 25 kW in size (farms and businesses may net meter systems up to 2 megawatts in size). The state passed a law that went into effect June 2011 that allows agricultural customers (not residential) to participate remote net-metering, meaning customers who generate an overabundance of solar power can sell credits to other customers in the same utility region and load zone. Publicly held utilities do not have to offer net metering, but some, like the Long Island Power Authority, offer programs similar to those offered by Investor-owned companies. Utilities will continue to sign net metered PV systems until net-metered PV, biogas systems, micro-combined heat and power, and fuel cell systems together make up one percent of their 2005 energy demand. Utilities may choose to allow a higher percentage of net-metered systems into their energy mix. In most net-metered systems, net excess generation in a month is credited toward the customer/generator’s next monthly bill at the utility’s retail rate. At the end of the year, customers that produced more energy than they used are reimbursed at the utility’s avoided cost rate. The owner also will install a protective device that will unhook the system from the grid if the utility’s generators fail.

The savings will depend on the size of your solar system and the amount of electricity you would normally have consumed. A 2kW PV system which is replacing electricity at 30 cents a kWh might save $1,125.00 per year (CEC Consumer Handbooks "Buying a Photovoltaic Solar Electric System," p.7 or "A Guide to Photovoltaic System Design", p. 8 and 9). Rates in California are increasing dramatically - so savings will also increase proportionally. The highest tier in Edison territory has reached 32 cents, not including state and local taxes.

How long does it take for a PV system to pay for itself? It is more instructive to think of solar as an investment that yields an annual return, much as a bank savings account provides interest. A solar PV system may generate savings that would equal an annual Return on Investment (ROI) of 7% to 15% per year at today's electric rates. These savings is not taxed as would be the interest earned from a bank savings account. Thus you would have to find a bank account or investment yielding 14% to 28% to equal the return on a solar electric system. No matter what ROI your system would generate, this is ultimately a choice about how you will be buying your power - not whether or not you will be paying for it! You may prefer to pay the utility bill forever, or you may choose to become your own utility with solar PV, instead. For more information on payback, please go to our page "The Economics of Renewable Energy."

As systems get larger, the cost per watt is lower. A two (2) kilowatt system may cost between $16,000 and $20,000 ($8.00 to $10.00 per watt), while a five (5) kilowatt system may be installed for as little as $35,000 ($ 7.00/watt). All of these prices are figured before the rebates or tax credits. The final cost may be as low as $2.50 per watt (or $12,500 for a 5 kW system) depending upon which incentives your utility may offer.

There is currently a federal tax credit of 30% for any qualifying residential or commercial solar system. This tax credit is slated to expire at the end of 2016. The Federal (MACRS) and State accelerated depreciation deductions can also significantly reduce the final cost of a system used for commercial applications.

In California the value of your property may not be re-appraised by the County Assessor's Office for solar related property improvements, at this time.

It depends upon where you live. Some municipally owned utilities have established their own programs and some credit unions and banks have special loan rates. For a comprehensive list of incentives, rules and regulations affecting solar energy go to http://www.dsireusa.org/index.cfm?EE=0&RE=1

Although any solar component that qualifies for the CEC rebate must meet certain minimum criteria, there are wide variations in the way PV modules are made and assembled. Some of the modules recently entering the American market are made in Asia and are less expensive than European or US brands. Also, the cost of installation varies upon whether or not you hire a contractor that uses employees or temporary labor and subcontracts the installation. If you use a firm with an established reputation, one that has employees, carries workman's compensation and liability insurance, you may pay a little more for "peace of mind." Frequently, a firm that has just recently entered the solar arena may offer discounts to gain market share or experience. The New York Energy Commission and the Public Utilities Commission do not check the history or background of its participant "contractors" before listing them. As long as its state license is valid a company will be "approved." Although the solar equipment listed on its website is "approved," the NYEC & the PUC in no way endorses any of the vendors on its list. The old rule, "Caveat Emptor," definitely applies when you select your installer and equipment.