DOWNLOADABLE LESSON never pay for electricity again your guide to solar panel savings SPONSORED BY As long as the sun is shining on this solar-panel array, the homeowner can enjoy lower electricity costs.
Solar harvest Photovoltaic panels have never been more affordable thanks in part to leasing options that mitigate the up-front costs A roof-mounted solar-panel array contains hundreds of silicon wafers that capture the sun s energy energy that would otherwise become wasted heat and turn it into clean, useful electric power. THERE S NO DISPUTING the value of using solar panels to generate electricity. They re reliable, long-lasting, and don t make noise or emit noxious gases. But until recently, the high cost of solar arrays put them beyond the reach of most homeowners. That all changed in 2009 with a big drop in panel prices, federal and state incentives that encourage the installation of solar systems, and a raft of new solar-service providers, such as Sunrun (sunrun.com), offering innovative leasing plans and power-purchase agreements (PPAs) that produce immediate savings. With the financial equation now tipped in solar s favor, it s possible for people from all walks of life to use the sun to lower their electric bills and to keep them low, even as utility rates go up. The key to this change is a technology called net metering, which allows power to flow both ways: into the utility grid when the sun is shining and household demand is low, and from the grid when the sun goes down or is obscured. Because utilities are required to pay for solar energy at retail rates, there s actually money to be made if an array is large enough. Use this guide to help you understand how these systems work, determine whether your location is suitable for solar, and sort through the buying and leasing options. Perhaps you, too, will join the growing number of homeowners who are enjoying the benefits of tapping the sun s power. 2
Vitals COST The average net cost to install a system varies widely, depending on state incentives. The national average is $17,000.* With a lease or PPA, the installation costs can fall to zero. SAVINGS They depend on the price of electricity, how much power the solar panels produce, and how many kilowatts the household uses. Because utilities are obligated to pay a preferential rate for any extra power the panels pump into the grid, expect savings of 20 percent or more on your electric bill. Nationally, the savings average out to $84 per month,* or about $20,000 over 20 years.* INSTALL This is most definitely not a DIY project. Hire only a certified contractor with experience working with solar panels. UPKEEP The panels have no moving parts, making them virtually trouble-free. But if a component does fail in a system that you own, you pay to fix it. On a leased system or PPA, all maintenance is taken care of. WARRANTY Manufacturers cover defective panels for 25 years, their expected life span. Installers typically guarantee their work for two to 10 years. Warranties on the inverter (see How it works, below) are good for five to 10 years. *Source: costofsolar.com To get the most energy out of a panel array, it should be pitched toward the sun at an angle equal to the latitude of its location. ILLUSTRATION: ARTHUR MOUNT 2 3 4 5 1 How it works As sunlight strikes the solar cells in the panels [1], it dislodges electrons, setting up a flow of direct current (DC). An inverter [2] converts DC to alternating current (AC), the kind that powers most things in our homes. That current goes into the house through the circuit-breaker panel [3], offsetting some or all of the utility power coming through the net meter [4]. When solar output exceeds household demand, the net meter runs backward, banking credits. At night or when the sun is obscured, the panels shut down and power comes in the usual way, turning the net meter forward. An optional solar-output meter [5] monitors panel performance. 3
Will solar work for you? It depends on where you live and how much sunlight hits your roof 3.5 4 5.5 6 3 4 6.5 7 6 6.5 To get the biggest bang for your solar buck, schedule a free site evaluation with a solar-service provider or an experienced installation contractor. (For guidance on finding one, turn to page 5.) Here are the factors that go into making that assessment. > Which direction does the roof face? If your roof has one side that faces due south, without trees or buildings to block its view of the sun, there s a good chance that it will make a suitable platform for a solar array. A westfacing roof is also desirable, because electric demand typically peaks on summer afternoons at a time when south-facing panels can t make as much juice. > How much sunshine do you get? The more sunny days your area has, the more power the panels can 4.5 6 5 5.5 This map shows the average amount of solar radiation (in kilowatt-hours per day) available to 1 square meter of solar panel facing due south and tilted to the same degree as the latitude. (Source: National Renewable Energy Laboratory) generate. The map above will give you a rough idea of how much solar energy is available in your area. Yearround rays are more intense in southern zones than in northern ones, where cloud cover can significantly reduce panel output, particularly in the winter. But with proper planning and installation, solar can still work in cloudy climates. To calculate the solar-power potential for your location and to see how it changes monthly, go to pvwatts.nrel.gov. > How much electricity do you use? A glance at your electric bill will answer that question. The more kilowatts you consume from the grid, the more dollars you ll save by going solar. > How much roof space do you have for panels? For maximum output, panels should be placed one beside 4 4.5 5 5.5 4.5 5 KILOWATT- HOURS OF SOLAR RADIATION PER DAY the other and cover as much contiguous flat space as possible. Armed with that information, a contractor can tell you how much power you can expect to get. > What about a ground installation? Groundmounted panels can work if they re in a sunny location for most of the day and safe from errant baseballs. You ll need to use racks big enough to hold them at the correct angle, and the vegetation underneath them has to be trimmed. > Does the type of roof matter? Or its pitch? The aluminum racks that support the panels can be attached to most roofs, but there may be extra charges for materials such as clay tile and slate. The racks can be fine-tuned so that the panels are pitched for maximum sunlight-harvesting power. 11,000 Average number of kilowatthours consumed annually by each U.S. household (Source: The U.S. Energy Information Administration) 16 Percentage of sunlight that a typical panel can convert into electricity* 250 Number of watts that a typical 17-square-foot panel can generate per day* 7Number of kilowatts that an average residential array in the U.S. can produce in a day * 463 Square footage covered by a typical roof-mounted solar array* *Source: Solar Energy Industries Association Satellite assessment Tech-savvy companies like Sunrun use satellite imagery to determine if your house qualifies for a panel array and to estimate its power potential before even showing up at your front door. 4
CHOOSE YOUR PATH TO SOLAR There are two ways to put solar on your house BUY OUTRIGHT OR FINANCE Paying for your system up front means that you own the panels and collect the tax credits, utility rebates, and state solar incentives. Service, repairs, and insurance are your responsibility. But if you can t afford the $17,000 for a typical 5-kilowatt array, consider financing the project. Many solar-panel providers offer loans to pay for the hardware and installation. You get the same benefits as an all-cash purchase, and the same responsibility to take care of maintenance and insurance. LEASE OR PPA For as little as zero dollars up front, a solar-service provider installs the panels on your roof and gets the system up and running. You pay a monthly fee that covers the roofing warranty, insurance, system monitoring, and maintenance. The provider owns the panels for the life of the lease and uses any rebates and tax credits to lock in your low electric rate. You continue paying the utility for the power you use and collect any net-metering credits. Total payments for electricity (lease and utility) should be less than what you paid before. Select an installer and a lease Ask these questions before you put your money down and get answers in writing A crew of professional solar-panel installers should be well equipped with safety gear, including fall-protection harnesses and cables. FOR THE INSTALLER > Are you NABCEP-certified? The North American Board of Certified Energy Providers sets the standard for solar-panel installations. In some places, installers must be NABCEPcertified to get a permit. To find these qualified pros in your area, go to nabcep.org. > How many installations have you done on this type of roof? The more, the better. Check all references and go online to search for reviews of the company s work. > Who repairs roof damage caused during the install? Look for an installation warranty to cover that. > Will you maintain the system? If maintenance isn t covered by a lease, get a service contract that spells out what has to be done and when. > Do you have worker s compensation? Working on a roof is dangerous you don t want to be held liable in the event of an accident. FOR THE PANEL PROVIDER > How long does the lease run? Can it be renewed? Most run for 20 years and are renewable. > Is power output guaranteed? Without a production guarantee, total payments could be higher than before. > Can the rate change? Leases are usually geared to the annual inflation rate. > Is the lease transferable? Most are, but be aware of any provisions that might affect would-be buyers. > Is there a roof warranty? If not, cheaper power isn t worth a leaky roof. > How much does service cost? The best leases provide maintenance at no charge. > Can the system be upgraded? An upgrade provision ensures the system won t become obsolete. > Can the lease be broken? Yes, but there will be penalty fees and charges for removing the system. 5
Panel up! 1 > Permits It s the installer s job to obtain the necessary permits from your town and coordinate the work with the power utility and an electrician. 2 > Support racks They re screwed directly to the rafters so that wind can t blow the panels off. Each screw must be flashed and sealed. 3 > Panels They re fastened to the racks, then wired together with waterproof connectors. 4 > Electrical A licensed electrician wires the rooftop panels to the inverter and solar-output meter and to the house s main circuitbreaker box. The box is then connected to the net meter installed by the utility. The electricity will be shut off for a few minutes during this time. 5 > Inspection The installer schedules final approvals by town inspectors and tests the system to make sure it s functioning properly. Solar panels can be mounted on most types of roofing, including concrete tile (shown) and standing-seam metal. Living with solar Actually, it won t be any different from your life before solar except for the lower electric bill. But if your phone has an app that remotely charts panel output, you may become fascinated with watching how much energy your panels produce. Nothing will change when there s a power outage, either. Unless you have a generator or a bank of backup batteries, your house will be just as dark as those without solar panels. That s because the panels automatically disconnect to prevent emergency workers from being electrocuted. 6
LET THE SUN SHINE ON YOUR BOTTOM LINE AD Save 20% on your electric bill. * Simply put, going solar is smart. But many think it s complicated. That s why Sunrun set out to make home solar as easy, affordable and accessible as possible. The result is solar as a service. For little to no money up front, Sunrun takes care of the system cost, installation, monitoring and maintenance. The best part is that you ll save 20% on your electric bill. So every month, you ll be reminded just how smart Sunrun solar is. To get started, visit sunrun.com. Actual savings will vary. Savings depends on several factors, including product type, system production, geography, weather, shade, electricity usage, and utility rate structures and rate increases. Savings estimated here assumes utility rates increases at 3.5% per year, payment by automatic debit, and stable customer utility usage rates. See sunrun.com/save20 for details. 7