Frequently Asked Questions

FAQ Categories

Why Solar?

When you install a solar energy system on your property, you save money on your electricity bills and protect yourself against rising electricity rates in the future. How much you can save depends on the utility rates and solar policies in your area, but going solar is a smart investment regardless of where you live.
Solar power, like other renewable energy resources, has many environmental and health benefits. Going solar reduces greenhouse gas emissions, which contribute to climate change, and also results in fewer air pollutants like sulfur dioxide and particulate matter, which can cause health problems.

Studies have shown that properties with solar energy systems sell for more than properties without them. However, your property value will only increase if you own your system, rather than enter into a PPA.

How do solar panels work?

Solar panels absorb the sun's energy throughout the day and convert it into direct current (DC) electricity. Most homes and businesses run on alternating current (AC) electricity, so the DC electricity is then passed through an inverter to convert it to usable AC electricity. At that point, you either use the electricity or send it back to the electric grid.
The amount of power your solar energy system can generate is dependent on sunlight. As a result, your solar panels will produce slightly less energy when the weather is cloudy, and no energy at night. However, because of high electricity costs and financial incentives, solar can be a smart decision even if you live in a cloudy city.
Snow generally isn’t heavy enough to cause structural issues with your panels, and since most panels are tilted at an angle the snow will slide off. If snow does accumulate, your panels are easy to clean.
When you install solar panels on your property, you will still be connected to the grid. This allows you to draw from the grid when your system is not producing all of the power that you need, and send power back to the grid when you produce more than you use. It is possible to go off the grid with a solar energy system that includes battery storage, but it will cost significantly more and is unnecessary for the majority of homeowners.
Unless your solar energy system includes battery storage and you are fully off the grid, you will still receive a bill from your utility. However, you can dramatically reduce your bill, or even cut the amount you owe to $0, with a solar panel system that matches your energy use.
Solar panel systems are made of durable tempered glass and require little to no maintenance for the 25 to 35 years that they will generate power. In most cases, you don’t even need to clean your solar panels regularly. If something does happen, most equipment manufacturers include warranties, although warranty terms depend on the company. With a PPA, solar O&M is often built into the construction contract.

Solar and Carbon Credits

A solar renewable energy credit (SREC) represents the environmental benefits of producing 1,000 kWh of energy by a solar energy system.  The value of SRECs is measured in $/MWh (1 MWh = 1,000 kWh).

SRECs are also referred to as alternative energy credits (AECs).  AECs are tradable certificates that represent all the clean energy benefits of electricity generated from your facility.  They can be sold separately from the power produced by qualifying alternative energy facilities.
Yes.  Energy credits are based on all the energy produced by the generator.  For every megawatt (1 MW) of energy produced by your generator, you receive one SREC, which can be sold.

Yes.  The Federal Solar Tax Credit, also known as the investment tax credit (ITC) is currently 30% of the total installation cost of solar property.

Yes, law provides a special state and local tax rate for solar projects that vary state to state.

Generating energy from solar installations is a 100% carbon-free way to supply your business, reducing your reliance on imported energy from the grid. Depending on how your solar project is structured, your solar panels may be able to be installed with no upfront costs, enabling you to access this zero carbon technology with no capital outlay.
Carbon credits are generated from projects around the world that pull Greenhouse Gases (GHGs) out of the atmosphere or keep emissions from being released. Each time a project verifies they have reduced, avoided, or destroyed one metric ton of GHG, one carbon credit is created. If you emit one ton of GHG, and fund or purchase one ton of emissions reduction, you have a net carbon footprint of zero.  Solar can be an important part of a strategy to reach Net Zero as far as your carbon footprint.
Yes, solar panels offset approximately 50 grams of CO2 for every kilowatt-hour of power produced. The average solar equipped home has roughly a 10 kilowatt-hour system and would offset approximately 650,000 grams of carbon.  Every gallon of gasoline burned creates about 8,887 grams of CO2.
In parts of the US there is a formal market for carbon credits.  In other parts of the US (like the Midwest), the carbon market is a voluntary transactional market where regional institutions attempt to move toward Net Zero carbon through purchasing credits.

Metering

Generally your system will not produce during an outage because of safety reasons.  This protects your equipment from overloading and protects personnel who may be working on electrical equipment in your area to restore.  That said, see the next question for possible alternatives.
Yes.  Your system could be set up so that it can be isolated from the distribution system.  This protects utility work crews by ensuring that no electricity is delivered to the lines during the outage.  In addition, there are more sophisticated systems that can be net metered and still deliver power during an outage.

Net metering is the system that utilities use to credit solar energy system owners for the electricity produced by their solar panels. With net metering, you only pay for the electricity that you use beyond what your solar panels can generate. Net metering policies differ from state to state – from Massachusetts to California – so make sure to do your homework ahead of time.

Most states require the utility company to compensate you for the extra energy you produce.

 

The policy that requires compensation for excess solar generation is called net-metering. Net-metering increases the economic benefit of solar power by crediting you for the extra power your solar energy system produces.

 

So, when you produce 200% of what you use during sunny July, you bank credits that you’ll use to purchase utility power during the months where you don’t produce 100% of what you use.

 

The amount of energy you produce and use will vary over the course of the year. Net metering helps you account for this difference by crediting you for the excess electricity your panels produce so you can use it later.

For instance, Ohio’s energy market is de-regulated.  The rate you are credited for the power you return to the grid varies between different utility providers. Electric companies credit you at a net excess generation rate. The State of Ohio’s net metering policy does not require utilities to credit energy you produce at the full retail rate.

 

Additionally, using credits for fixed charges on your bill (distribution charges, other fees) varies between electric suppliers.

Your solar panels can produce energy even if they are covered in snow - but at a minimal output.  The capacity factor that is assigned to your system takes into account those snowy days as well the full sun days in July.  Also, solar panels are more efficient in cold conditions (absent snow). Like most electronics, solar panels function better at colder temperatures than under intense heat.

Battery Storage

There are a few different reasons to choose to install battery backup with your solar energy systems. First, utility rates have escalated at about 3% per year for the past ten years. We know rates will increase as the grid faces necessary upgrades, and many utilities consider a time-of-use rate structure, where electricity will cost more during peak demand hours.

 

Solar energy storage allows you to consume more of the solar energy you generate, maximizing your solar investment, increasing independence, and lowering your carbon footprint.

 

Second, batteries provide power during an outage. In some places, blackouts are common. We see an uptick in interest in solar battery backup anytime a significant weather event disrupts the grid and causes blackout. Solar batteries assure you have power in the event of a grid outage.

 

Third, battery storage is now available for the Federal Tax Credit. This means that your battery system maybe subsidized at 30% or more at the total cost.

What are my solar financing options?

Solar rebates and incentives vary depending on where you live. The most significant is the 30% federal investment tax credit (ITC), which allows you to deduct 30% of the cost of your solar energy system from your taxes. Some states offer additional tax credits, and certain municipalities and utilities also offer cash rebates or other incentives.

There are three solar financing options: you can purchase your system in cash, take out a solar loan to buy your system, or sign a solar power purchase agreement (PPA).

ESG

ESG (Environmental, Social, Governance) is an evolving world-wide regulatory regime for organizations.

Climate change has been a driving force behind ESG. The new ESG metrics have a number of carbon reduction related provisions. Renewable energy will benefit from these provisions.

In parts of the US there is a formal market for carbon credits. In other parts of the US (like the Midwest), the carbon market is a voluntary transactional market where regional institutions attempt to move toward Net 0 carbon through purchasing credits.

Should I Go Solar?

If you can afford to pay your electricity bill you can afford to go solar.
Southerly-facing roofs with little to no shade and enough space to fit a solar panel system are ideal for installing solar. However, in many cases there are workarounds if your property doesn’t have the ideal solar roof.
The size of your solar energy system will depend on how much electricity you use on a monthly basis, as well as the weather conditions where you live. Take a look at your past electricity bills and compare offers from licensed, pre-screened solar installers to determine the best system size for your needs.
Solar energy systems can last for 25 to 35 years, and it can be costly to remove and reinstall them if you need to replace your roof. If your roof needs maintenance in the near term, you should complete it before you finish your solar installation.
In general, solar panels are very durable and capable of withstanding snow, wind, and hail. The various components of your solar power system will need to be replaced at different times, but your system should continue to generate electricity for 25 to 35 years.