What’s in Your Solar System

The key components of any Solar System are dependent on whether it’s mounted on your roof or on the ground.  For roof mounted systems, there are 3 parts:

1)      The mounting system – this includes the foot jacks that attach to the roof and the racking systems that support the solar panels

2)      The panels – this includes the attachments to the racking system and the wiring necessary to move the DC current to the inverter(s)

3)      Inverters – this part converts the DC current generated by each panel into usable AC current.  Some systems have a single inverter, where each panel is connected to a central wire and fed into the inverter, and the current is converted to DC.  Some systems have micro-inverters on each panel, which means that every panel is sending AC current to the electrical box

4)      Wiring to and from the Electrical Box – this includes all wiring from the box to the meter and the shut off switch, connecting through conduits to the inverter or the panels on the roof

For ground-mounted systems, the parts are similar except for the addition of several support poles that hold the panels above ground.  Additionally, most ground mount systems require an underground trench so that wiring from the panels can be connected to the Electrical Box without being exposed to potential damage. 

These components can usually be installed in 2-3 days, but the system is not fully operational until all inspections (state, local, utility) are complete. 

Visit our website for more on solar!

Why is now such a good time for Solar?

Despite some of the bad publicity about a few Solar companies, specifically Solyndra, the industry overall is very healthy and provides significant financial and environmental benefits to homeowners and businesses. 

There are 3 good reasons why going Solar now is an ideal option – it’s all about saving on your utility bills.

1)      You can save immediately on your electric rate, and lock these rates in for 20 years with a Power Purchase Agreement!  This is very attractive when utility rates continue to climb at 3-5% per year

2)      Current Lease and Power Purchase Agreements do not require an upfront investment – a huge hurdle for many

3)      Panel prices have come down significantly and Financing companies can pass this on to homeowners

The two most common ways for homeowners to go Solar are through a standard Lease or a Power Purchase agreement.  A Solar lease means a homeowner will have the system installed on their roof, or in their yard, and a pay a flat monthly rental fee for the use of the electricity generated by the system.  A Power Purchase Agreement means the homeowner agrees to purchase the power generated from their roof at a lower cost (per KWh) than the utility provides, and lock in these rates for 20 years or more.  This ensures the homeowner will have a hedge against utility price increases for many years. 

So, there’s never been a better time.  If you and your home qualify, it makes perfect sense to go Solar!  Why do you want to go Solar?

For more information on residential solar, click here:  http://www.1stlightenergy.com/solar-services/residential-introduction/

Solar Financing or Purchase Options

With all the options available today for designing and installing the right Solar System for your home, there are really only 3 considerations for financing or purchasing the system.  These are:

1)      Purchase – depending on your tax and cash flow status, this may the best option.  The average cost of a system is $25-30K, so be prepared.  You will immediately receive a 30% Federal tax credit, and will also see the most significant reduction in your utility bill.  Depending on the size and configuration of your system, the payback period is usually between 5-7 years.  However, after that you will have free electricity for as long as the system is in operation, usually 20-25 years or more.

2)      Lease – this is a standard agreement where the homeowner pays a flat monthly fee for having the ability to use power generated from the system.  There will be immediate savings on your utility bill, and those savings will increase in future years because the of the typical utility company rate increases of 3-5% per year.  Also, the homeowner usually has the option to purchase the system at a fair market value, if it makes financial sense to do so. 

3)      Power Purchase Agreement – this is a relatively new option, and is similar to a lease.  The difference is that the homeowner agrees to purchase electricity generated from the solar panels at a reduced rate, instead of from the utility.  The PPA also allows homeowners to lock in their rates for the length of the agreement (typically 20 years or more), so they have a hedge against the typical utility company rate increases of 3-5%.

With each of these options, the home must qualify by (1) being relatively free of shadows to allow the maximum amount of the sun’s rays at all times of the year, and (2) having few obstacles on the surface of the roof so there can be an optimal number of panels.  Either way, it’s a great time to install Solar, so you can generate a lifetime of savings!