Frequently Asked Questions
FAQ Categories
Solar and Carbon Credits
1. What is a Solar Renewable Energy Credit (SREC)?
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.
2. Will my solar energy system produce alternative energy credits that I can sell separately from the energy produced?
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.
3. Can I receive a federal tax credit for going solar?
Yes. The Federal Solar Tax Credit, also known as the investment tax credit (ITC) is currently 26% of the total installation cost of solar property which has begun construction through 2022.
4. Are there state and local incentives in Ohio?
Yes, Ohio law provides a special state and local tax rate.
5. Is solar power carbon free?
Generating energy from solar installations is a 100% carbon-free way to supply your business, reducing your reliance on imported energy from the grid. Your solar panels can be installed with no upfront costs, enabling you to access this zero carbon technology with no capital outlay.
6. What is a Carbon credit?
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.
7. Does solar power generate carbon credits?
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.
8. Is there a market for carbon credits?
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.
Metering
1. Will my generation system produce energy during a power outage?
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.
2. Could generation systems be modified to supply power during a power outage?
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.
3. What is net metering?
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.
4. What are the net-metering rules in Ohio regarding excess compensation?
Your utility company is required to compensate you for the extra energy you produce in Ohio.
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.
5. How does Ohio address Net Excess Generation?
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.
6. Does solar work in the wintertime?
Can my solar panels produce energy if they are covered in snow? Yes, 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
1. Should I include a Battery in my system?
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 in Ohio, 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.
Why Solar?
1. What are the financial benefits of solar energy?
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.
2. What are the environmental benefits of solar energy?
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.
3. How do I find out how much I pay for electricity?
The easiest way to find out how much you pay for electricity (and how much electricity you use per month) is to take a look at your utility electricity bill.
4. How does solar impact my property values?
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, most parts of the country, going solar will actually increase your property value more than a kitchen renovation.
How do solar panels work?
1. How do solar photovoltaic (PV) 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.
2. Do my solar panels produce power when the sun isn’t shining?
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.
3. What happens if there is snow on the solar panels and racking?
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.
4. Can I go off grid with solar panels?
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.
5. Will I still receive an electric bill if I have solar panels?
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.
6. Do solar panels work in a blackout?
If your solar panel system is connected to the grid, it will shut off in the event of a blackout. This is to prevent emergency responders and electricity utility repair-people from being injured by your panels sending power back to the grid. However, there are certain inverters you can buy that provide backup power in a blackout when paired with a battery.
7. How much will solar panel maintenance cost?
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.
What are my solar financing options?
1. What solar energy rebates and incentives are available?
Solar rebates and incentives vary depending on where you live. The most significant is the 26 percent federal investment tax credit (ITC), which allows you to deduct 26 percent 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.
2. What are my solar financing options?
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). Which is better – solar loans or solar leases?
ESG
1. What is ESG?
ESG (Environmental, Social, Governance) is an evolving world-wide regulatory regime for organizations. In the US, the SEC is expected to issue ESG metrics in 2022.
2. How does ESG impact renewable energy?
Climate change has been a driving force behind ESG. The new ESG metrics are expected to have a number of carbon reduction related provisions. Renewable energy will benefit from
these provisions.
3. Is there a market for carbon credits?
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?
1. Can I afford to go solar?
If you can afford to pay your electricity bill you can afford to go solar.
2. Is my roof suitable for solar panels?
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.
3. What size solar energy system should I get?
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.
4. Do I need to replace my roof before installing solar?
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.
5. How long will my solar power system last?
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.