Photovoltaic arrays can be used to
generate electric power for just about anything. The power systems can be either connected to
the electric utility grid “grid tie”, or be "off-grid".
The economics of the PV system are determined by both the capital and operating costs and long-term
benefits. The analysis varies according to the type of PV power system: off-grid or grid-connected.
Off-Grid PV
PV systems are currently cost competitive with electric utilities for many areas of applications such as: Situations requiring utility line extension at high cost (generally for extensions of over 0.5 miles, charged to the customer), remote cabins or homes that do not have access to conventional power suppliers or applications. Another common use is for small power use equipment such as roadside call boxes, irrigation control equipment, small lights, etc. In most cases it is more economical in the long run to provide PV power than to install conventional power if there is not a conventional power source within a reasonable distance. An added benefit is, once the PV system is paid for you continue to produce free power for many years which can save a significant amount of money.
Grid Connected PV
Government subsidies, tax rebates/exemptions and the enhanced value of "Green" power to a utility, has made PV systems practical in California and Arizona.
Grid-Connected PV systems are interactive. An interactive system uses inverters that are capable of converting the DC power from a PV system into AC power.
CPR builds quality solar energy systems that meet the power quality required by utility companies which in turn allow excess power to be fed back into the utility system.
For example, in some cities, if you qualify for the maximum state and federal tax credit and have a generous rebate from the utility
company, a $40,000.00 system would end up costing approximately $12,000.00.
A non-interactive PV system can only use utility power to supplement the PV system and is not capable of feeding power back into the utility electric grid. Once a system is commissioned, the power it produces is fed into your main panel. Any power you consumed is used and any excess is "back fed" into the grid.
Net Metering
Net metering is a practice offered by some electric utilities to help encourage PV system interconnection. With net metering the homeowner can offset some of the costs of purchased electric power by feeding surplus electric power back to the utility. This is an interactive PV system as described above. The net period can be monthly or annual (depending on applicable laws, regulations, and utility policy). Typically a PV system produces more power during the peak sunshine period of the day than the home can use at that time. In a grid connected system with net metering, the value of the excess power that is fed back into the utility system is deducted from the customer's billing invoice. This is generally an offset to the purchased power such as nighttime use when the PV system is not producing power.
COMMON QUESTIONS
What are the economic benefits of a solar electrical system?A solar electrical system protects you from future rate increases and allows you to “fix or freeze” your utility rates for the next 30+ years.
Systems are designed to lower, or in many cases eliminate, your monthly electric bill!
The best part is that you are adding a significant value to your home yet your property taxes will not increase because of the upgrade!
How much does a solar system cost?
It depends on your electrical usage and your service area. Residential systems can range from $15,000 to $100,000 BUT once you deduct your local utility company rebate plus federal and state tax credits the cost could be lowered by as much as 70%. For example, in some cities if you qualify for the maximum state and federal tax credit and have a generous rebate from the utility company a $40,000.00 system would end up costing approximately $12,000.00. That may sound like a lot but it doesn’t take long to pay it off if your bill is averaging $300.00 – $400.00 per month. If you would like to find out what your cost and savings could be, call for a free site visit and quote.
What is the payback time?
With a solar PV system you are buying power at a known fixed cost of today's market. Payback can be calculated by the estimated future energy cost which is impacted by supply, inflation rates, and other market factors. The other variable is how the system is financed and the cost information listed above. Our company can provide a variety of financing options.
Can the meter spin backwards?
Yes, if more energy is generated than used, it is fed back into the utility grid. The owner of the PV system is compensated by having the cost of the power generated deducted from their monthly utility statement. It is common for the utility company to settle up at the end of each 12 month period. The compensation rate depends on the utility company and State requirements and law.
What size system do I need?
There are several variables that determine what size system you need, and in the end, what size system you will be able to install.
Determining what you need:
If you install a PV system the utility company will “credit” your account for energy produced each month. You will receive a statement each month that shows where you stand.
You may produce more than you use during the long days during the months of summer, then produce less than you use during the short days of winter. On the end of each twelve month period a settlement statement is sent.
At this time in California, if you have produced more power than you have used during the 12-month period, you do not
receive any money for it. The cycle simply starts over again from zero. However, legislation is being processed to require the
utility company to pay PV owners a predetermined amount for overproduction.
We request a spreadsheet from the utility company that shows at least 12 months of kW hours billed to you. We then size your system to produce the same or slightly less than the average amount of power previously used. We strive to design systems that come as close to meeting all of our customers needs as possible without “giving” additional power to the utility company to sell to someone else. You do not want to pay for something that will not be of direct benefit to you.
However, all of our PV systems can be added to at a later date. So, if legislation is passed that requires PV owners to be paid for excess power produced, our customers can add to their systems if they choose to produce and sell excess power to the utility company.
Determining what size system you can accommodate:
On occasion we find that a customer's needs are for a larger system than they have room for.
Solar systems should be installed so as to face true south with a tilt of approximately 30 degrees for optimum power production. Minor deviations from these ideal conditions will usually reduce power production by 5% or less. However, shade issues can substantially reduce production. It is important that you have an installation location that is as free of shade as possible and allows a south to southwest facing installation. If your solar array location is not within acceptable parameters, the production will not justify the cost. This is a very important factor in realizing an acceptable payback period for your investment.
Typically, solar systems are installed on roofs, patio covers, carports, and on ground mount systems. However, you may not have enough space to install the size system you need. Many of the newer homes have many pitches and angles making it very difficult to fit a properly directed system large enough to meet the household needs. If this is the case, you may opt for a smaller system that will still significantly lower your utility bill. Or, if you have the room, our general contractor can build a variety of patio covers or ground mount racks that will accommodate a solar system. Our photo gallery will give you an overview of typical installations that we have done.
