I’ve already told you many solar resources for various states. The most comprehensive one is DSIRE, a government site that summarizes all of the solar and energy efficiency programs offered by each State.
I’ve recently discovered a blog by two solar enthusiasts called SolarPowerRocks.com. One blogger is a beginning solar sales associate, and the other is one of the founders of 1BOG.org (1 Block off the Grid), the organization that collectively bargains for low cost solar for a group of area residents. I mentioned them in an earlier post.
The guys at SolarPowerRocks have created several great resources.
- One is that they have a free solar installer referral service. Just spend a few minutes inputting some info about your home electrical usage, and they’ll have an installer in your area give you a should.
- Secondly, they have taken the time to rate and summarize the State programs and their commitment to Solar. These various State buttons on the side of the blog will tell you in plain language about your State’s solar initiatives and affordability.
- They constantly update their State summaries as new solar initiatives are past, as well. However, some posts are out of date. For example, the Federal 30% tax credit is no longer capped at $2000, and that’s still in the calculations of some posts.
Take a look, but please come back here for information, as well! And please let me know if you have any questions about solar. It’s kind of the point of “Dear Solar Fred.”
A friend pointed out this great 5 minute video from the New York Times. It’s about a housing complex being built from the ground up with great insulation and solar panels for not electricity, but also for hot water.
The homes are so well insulated that they couldn’t buy a central heating system for each home. Even the smallest heater would have baked the home owners. Instead, they rely on small, built in natural gas wall heaters.
If you’re a housing developer in California, you can do this too if you consider solar as a standard feature. The State has generous cash rebates for builders who develop units with solar under the new solar home initiative.
If you don’t live in California, check out builder incentives in the DSIRE database of state rebates. You’ll be surprised what’s out there.
Dear Solar Fred,
Are there any Federal government programs geared toward giving home owners low interest loans for solar?
Anna in Ohai, California
Dear Anna,
Yes, indeed,Uncle Sam has several national programs that will help you to finance your solar system (and other energy efficiency projects) for your home. Click here and download this flyer to give you a summary of the programs. (If these don’t work, be sure to check out my Cash Poor financing series of posts.)
Your best bet may be through fannie mae and freddie mac through energy efficient mortgages.
(EEMs). The advantages are spelled out on this site, and I quote:
“The government-sponsored loans have several special benefits. First, they let you add on the money for the improvements to your mortgage even if this means you exceed traditional loan limits. Second, you don’t have to qualify for the additional money. Third, and probably most important, 100% of the cost of the improvements can be financed. Since all improvements must be cost effective to qualify, this means there are no out of pocket expenses. Your mortgage payments go up a little, but your utility bills go down more. You can even realize a positive cash flow. It’s like getting paid for improving your home.” (Solar Fred’s emphasis.)
Sounds pretty good to me. Get started with a list of numbers and websites here.
Little Point Sable Michigan, courtesy of n. weaver
Consumer’s Energy, a relatively small utility in Michigan, recently proposed a feed-in tariff! Expect other Michigan utilities to follow suit once this program gets rolling. Full details on our Michigan page, updated today.
Dear Solar Fred,
What’s the cost difference between having a system with batteries and a system without batteries? Is being off the grid worth it?
Sincerely,
Sam in Los Angeles
Dear Sam,
Great question. Short answer is that battery tied systems are NOT worth the extra cost for many reasons. Let me count the ways.
- Most if not all State cash rebates require your solar panels to be connected to the utility. So you if you’ve got power going to your house already and you want free money from your State, then I would stay on the grid. (Go to the DSIRE site for summaries of state incentives.)
- Grid tied only systems are relatively easy to install, requiring less time and money for installation costs.
- Similarly, without batteries, you have to buy fewer pieces of electrical and safety components.
- Being tied to the grid, you can take advantage of net metering and time of use rates.
- Grid tied systems are very low maintenance. Battery systems, even those that are just backup systems, are less efficient, require more space and maintenance, not to mention frequent battery replacement costs.
- For the 25 to 30 years of your solar panel life, the grid will almost always back you up at night and on cloudy days. It is extremely rare in America when the electricity goes down. Power is generally restored within hours or within a few days at the very worst.
- If you consider that you’re not eligible for state rebates, you could be losing $20,000 or more between the rebate cash that a State like California would have given you, plus the extra equipment and labor costs.
To be balanced, battery tied people have some non-financial advantages:
- You can have it both ways. That is, you can be on the grid and have a battery backup system in case of a black out. (Consider how often this happens, however. In most of grid-tied of America, a black out may happen once a year or less. Is that worth 20 grand? If you’re in a rural community with no utility wires for miles, then it could be worth it.)
- Grid tied systems with a battery backup are still eligible for most State cash rebates and the 30% Federal Tax Credit. (However, neither of these discounts will apply to any batteries or battery components.)
- Grid tied systems with a battery backup need fewer batteries, less maintenance, and less space than a system that has batteries only. (But you still have higher install labor costs, extra equipment, and you’ll eventually have to replace the batteries.)
- With a battery system that is not tied to the grid, you can proudly say that you are completely independent of coal burning utility companies, that you use 100% renewable energy from the sun, and that your lights and refrigerator will be on after an earthquake or problem with the grid. (However, as noted earlier, you are also responsible for a separate, well ventilated space to house the batteries, maintenance of the batteries, and the inevitable replacement costs every 5-10 years–depending on how well you maintain your batteries.)
So it’s up to you, but if you really want the most affordable system that is 95-99% reliable and less expensive, I would go with a solar system that is only tied to the grid without backup.
Dear Solar Fred,
I admit that my family and I are energy hogs and spend $350 a month on our electric bill. I know if we size it right that we’ll see a payback in around 12 years, but right now, we don’t have enough home equity for the up front costs. Is there any other way to buy solar without settling for leasing?
Sincerely,
Pete in Palo Alto
Hey, Pete,
I have a good suggestion that may save you a lot of money and allow you to go solar. Instead of trying to offset ALL of your home’s electric bill, get your installer to size a system that will take care of 50% or 60% of your electric bill. There are a lot of money saving advantages to this. Obviously, you’re going to be paying less up front because you’ll be paying for less solar. That’s savings number one. But the real big savings may come in rate tier savings:
- In many states–certainly in Palo Alto, California–there are different rate tiers charged for usage. The more power you use, the higher your rate jumps to a higher tier for that above average usage.
The lowest rate in your territory is about 11 cents per kilowatt hour (kWh) for the “base tier.” Everybody, including you, get this rate for a certain amount of usage.- When you use energy above this level, the utility charges you HIGHER rates. The next rate tier above 11cent is 25 cents/kWh–more than double. If you use even more, the rate jumps even higher to 35 cents/kWh. The utilities do this to penalize energy hogs like you and to encourage you to conserve. One way to do that: Go solar.
- If you buy enough solar panels to offset your usage by say 50%, you’re sort of tricking the utility into thinking you use a lot less energy. In reality, your solar panels are generating enough to get you out of the higher tiers back into the lower tiers.
All this being said, it would still be a good idea to really cut your energy use through some basic energy efficiency.
Dear Solar Fred,
What the heck is “Time of Use?” It sounds like a warranty or something. Should I get it, whatever it is?
Sincerely,
Busy Barbara
Dear Busy Barbara,
Time of Use (TOU) has nothing to do with a warranty. It’s actually a rate plan that your utility may or may not have, though most do for solar and/or wind. Time of Use works with net metering, something we’ve discussed earlier, to make your new electric bill lower–and therefore make solar have a faster payback. Here are the simple basics:
- During the day, especially during the longer days of summer, your solar panels produce more electricity than your house needs. So you send the extra energy back to the grid for storage, and at night, when the sun isn’t shining and your solar panels aren’t producing, your electric company sends you back the electricity that you didn’t use. This is basically net metering.
- That power that your panels generate during the day and send back to the grid is the most expensive power of the day. Businesses and factories need that power and are willing to pay top dollar for it. –So does your utility company.
- With Time of Use Rate, the Utility buys the energy your solar panels produce at the high day time “peak” rate. Now here’s the big savings:
- At night, when you the sun isn’t shining and you buy some or all of that power back, you buy it back at the cheaper night time rate. So you sell the solar electricity high, let’s say 10 cents a watt, and buy back the night time “off peak” electricity at 5 cents a watt. You make a profit of 5 cents a watt on the energy your panels produce! That’s Time of Use.
- Your utility and the its various TOU rate plans determine the “peak” time periods. Some peak times are broken up to into 4 time periods, morning, night, and afternoon, and evening and weekends, each with its own rate. Others, like Southern California Edison, have peak rates set at M-F, 10am-6pm. All the other times are off-peak.
- Solar Fred Caution: If you’re a stay-at-home-Mom or person with a home office, you may not benefit from Time of Use because you’re using up all of your solar power, plus buying extra coal power to run your computer(s) and the diaper genie. So you may be better off with the regular flat rate if this is the case. Consult with your installer about your energy usage during the day and the TOU rate plans. You’ll still have net metering, but you won’t have that bonus profit.
- Solar Fred Tip: Properly factoring in TOU into your initial solar panel design can decrease your system size because of the extra savings. Remember: With net metering, utilities generally DON’T pay you extra if you lower your yearly bill past zero. So you want to make sure you have just enough solar power to get your bill close to a zero, but not lower than that.
Dear Solar Fred,
We’re thinking about buying solar, but even if we go for $0 down financing, the monthly payment is going to be too much. Suggestions to get our monthly costs down?
Sincerely,
Solar Tom and Tammy
Hey, guys:
By far, the best way to reduce your solar cost is to reduce the amount of electricity that you use. If you use less electricity, you don’t have to buy as many solar panels. It’s as simple as that. So what can you do to reduce your electricity usage? Here are the 3 best ways that make a tremendous difference:
- Use CFL Light Bulbs. If you haven’t already done this, replace all of your incandescent light bulbs with compact florescent lights (CFLs). Their quality has gotten much better and the energy savings is tremendous. Regular light bulbs use a whopping SIX TIMES the energy of a compact florescent that produces the same light. If you’re worried about Mercury, see this website from the government’s energy star program.
- Replace Your Old Refrigerator. Speaking of energy star, if you’ve got an old refrigerator and/or freezer, this can be an expensive energy drain–and a money drain. These things are on ALL THE TIME, so getting a new energy star appliance (refrigerator, freezer, dishwasher, dryer, television) will save you another solar panel or two, further reducing your costs. Plus, your state or city may give you cash for trading in that old refrigerator. Check out the government’s DSIRE website for your local incentive programs.
- Reduce “Phantom” Loads. Phantom loads are the “silent” bleeders of energy around your house. You think these things are off and not draining energy, but they’re actually wasting a ton of watts. Any appliance with a plug that has a square black box attached to it is a potential phantom load. Examples include:
- Your VCR/DVD players
- Your Wii/Playstation/Game System
- Your Stereo System
- Your Computer printer and/or Scanner
- Your Computer (when it’s “off”).
- Your T.V.
- Your Electric Tooth Brush
- Your Microwave Oven
- Your Cordless Electric Phone
- Your Dust Buster
- Your Cell Phone charger and Blue Tooth charger
To kill these phantoms:
- Use a power strips to collectively turn off your entire stereo system at once. If your through with your laptop and it’s fully charged, pull the plug as well.
- Similarly, you don’t need your cell phone charger plugged in if your cell phone is in your purse at work. Use a power strip and turn it off after charging.
- Switch to a more “corded” phones. Have just one or two cordless phones.
- Unplug your dust buster and toothbrush when they don’t need charging. They have batteries. (However, be sure to replug them in every few days.
Check out this video about a new electric strip with a “light switch” you can hang on the wall.
Please enable Javascript and Flash to view this Flash video.
If you make these changes, especially 1 and 2, you’ll be surprised how much your initial solar system costs will be lowered.
Dear Sincere Solar readers,
Many of you may have seen infomercials and websites about “Citzenre” a company that says it will rent you solar panels. See this wikipedia post and criticisms at the bottom of the article. This is just a quick warning for you to NOT wait for this company.
The company behind Citizenre has broken many promises and is woefully underfunded. Its business model relied on manufacturing its own panels from scratch and then renting an entire system to you for the same electric rate that you’re paying now. Nice idea, but….
To date in 2009, Citizenre has no factory. Ed Begley, jr, a solid solar guy used to be a spokesperson for the company, but he dropped out in 2008. Their website looks great, very slick. The rental formula promises a lot, but unfortunately, they have proven since 2006 that they cannot deliver on these solar dreams. Not ONE panel has been produced and not a single system has been sold or rented.
My point is that you can still afford solar without waiting for Citizenre to get its rental program up and running…if it ever does. If you really want to get solar, please review my four part posts, Cash Poor, Solar Richard, and move forward with your plans today.
Don’t wait for these perhaps well meaning yahoos. (Its sales representatives are based on a network marketing model, another bad sign.) While they have not asked for any funds upfront from either sellers or buyers, they have wasted their time with a lot of hype. Again, if you’re serious about solar, please seek other financing options that are available NOW.
Dear Solar Fred,
I hear about “Net Metering” when people jabber about solar. Will someone please explain to me exactly what “Net Metering” is? Also, does it have anything to do with the internet?
Just Wondering Nick
Dear JW Nick,
Net Metering is very important when you’re solar system is tied to the grid, which is most people. (Those with battery back up systems could care less.)
Net Metering has nothing to do with the internet, but refers to your home’s utility meter (that big round thing above) which keeps track of your energy usage. With net metering laws, the utility is required to keep track of your usage and store any extra power your solar panels generate.
Think of Net Metering as a solar powered piggy bank:
- Your solar panels generate electricity during the day feeding electricity to your refrigerator and whatever else is on. Usually you’re at work during the day, so your electric usage is low and the panels are producing MORE than your home is using and feeding the net metering piggy bank.
- In other words, Net Metering keeps track of the EXTRA power that your solar panels are generating. When you generate more power than your using, the extra electricity makes your electric meter “spin backwards,” crediting your solar piggy bank account.
- At night, you come home, turn on the lights, watch TV, but your solar panels aren’t producing any electricity because there’s no sun. Instead, you are withdrawing from your solar piggy bank, using up that extra electricity that your panels created during the day. The electric company essentially repurposes that power to your neighbors and buys less dirty coal.
- If your house uses more than what you’ve saved up, the electric company charges you their regular coal-powered night-time rates (which is lower than day time “peak” rates.)
- At the end of the year, the electric company presents you with a bill that is the “net” between what your solar panels generated over the year and what you used beyond that.
- If your solar installer designed the system right, your entire electric bill for the year could be $100 or less for your entire year!
- Usually, the utility charges you a small monthly fee, like 5 bucks, to have net metering. Depends on the utility.
- Solar Fred Caution: If your solar installer designed too large of a system and you are generating more power than you actually used during the entire year, the electric company will NOT pay you for the extra power in California and many net metering states. Your bill will be zero, but you’ll have donated that extra power to the utility company. So it’s important that your system is sized to meet your current household needs or less than your needs, not exceed them. In some States (CT, FL, CO, others) they will pay for the net extra solar power at various rates.
- SF Caution#2: If you are planning to buy a new energy efficient refrigerator or some other large appliance after your solar panels are installed, tell your installer. He will design a smaller system. Otherwise, as cautioned above, you’ll eventually be giving away your extra power to the electric company–plus you’ll have paid for an extra solar panel upfront. Keep in mind that you can always add another solar panel later if your electricity needs rise.
