10 Tips to Finding a Great Solar Installer

Published on May 28, 2009 by Tor a.k.a. "Solar Fred".
Categories: Buying Solar, Solar Components.

Whether you buy solar, lease solar, or go with a PPA company, you’ll need to find an experienced installer. SolarFred.com is not an installer referral site, but an independent solar advocate’s guide to affordable, quality, residential solar.

First, consider that solar is a relatively young industry. The boom times have come now, however, which means that many people are currently training in good solar schools to meet the growing demand. That’s the good news…and the cautious news. Because as much as people are filling training centers, it means that there are a lot of fresh graduates. Fresh grads may be very talented and have many years of experience in roofing and/or as an electrician, but not solar. With those thoughts in mind, here are 10 tips to evaluating a quality installer.

1. NABCEP is great sign. NABCEP is right now the best national standard certification program going right now. I’m told by hard core solar dudes that passing the exam is equivalent to passing a kidney stone. Think of the NABCEP test like the Bar exam for lawyers. To get the full certification, not only do you have to pass the test, you also have to have at least 2 years of hands-on experience in solar or a related field. So, at least one person on staff should have a full NABCEP certificate (not an intro one.) How to find a NABCEP installer? Click the NABCEP link above for a list.
2. Remember that the sales consultant will usually NOT be NABCEP. The NABCEP guy knows how to play safely with electricity. He will officially design and inspect your system and probably be a part of the crew on your roof. Sales consultants are more about pre-inspecting your roof orientation, shading on your roof, explaining the various ways to finance your system, and giving you an estimate.
3. If not NABCEP, then go with experience. Especially in such a young industry in a big country as ours, not everyone can be NABCEP. Some pros say they don’t want to waste their money on something they’ve been doing for a decade. If this is the case, the company should be proud to give you references of their recent installs. Talk to these home owners. Make sure they’re satisfied. Ask the company how many homes they’ve done. Ideally, I’d feel comfy with someone who’s installed panels on at least 10 roofs.
4. Classes. If not 10 roofs of solar experience, 3 years of electrical and roofing experience each, with the installer having at least 2 intensive hands-on solar class from an institution like The Solar Living Institute, Solar Energy International, or a local Electrician’s Union. Generally, these hands-on teachers are all NABCEP, so they’ve learned from the best.
5. Licenced, Bonded, and Insured in your State. In addition to these solar classes, the company should be insured for any accidents, and have a contractor’s licence, as well as worker’s compensation insurance.
6. Check with your city and/or State. Often, to receive solar rebates, solar installers will have already been vetted and approved by your city and/or utility and/or state. If there is such a list, and your solar installer’s company isn’t on it, ask them why not.
7. Get 3 quotes and don’t settle for the lowest price over experience. You’re dealing with the roof over your head here and electricity for your home. It’s probably worth it to pay extra for the more experienced guy. $1000 dollars less may mean thousands more in repairs for leaks or blown inverters down the road. So again, go with quality over price. That being said, if they’re all experienced, insured, etc, with helpful salesman, then go with price, naturally!
8. Check withe Better Business Bureau. See if there are any complaints with company or the owner of the company. Contractors will always have complaints just like any business. You can’t please everyone. But if there are more than three or four in a young solar company, hmm…
9. Check and Read Warranties. Solar panels are generally warrantied from 20 to 25 years, but typically last longer. The inverter, the other key component to a solar system, should also be warrantied for at least 10 years. In addition to these parts warranties, the installer’s installation workmanship–including roof repairs–should be at least 5 years.
10. Compare estimates. The Estimate should tell you what your payback is going to be and your monthly savings compared to your current electric bill. Also, make sure that all proposals are going to offset the same amount of electricity; i.e. all should give you estimates for solar offsetting 70% of your electricity needs. Go with 90% if you want to be 90% on solar and 10% on the utility. Naturally, a 90% proposal is going to cost more than a 70% estimate. Also, some companies include free monitoring and maintenance of your system, while others charge. If you’re buying through home equity, be prepared to pay for another inverter in 12 to 15 years. If you’re considering a solar lease or a solar PPA, often the maintenance and inverter replacement are included, but sometimes not.

Finally, go with your gut. I know that sounds odd, but if you’ve done your homework above, and you feel like the salesperson has been helpful in answering your questions, that’s a better sign than the guy pressuring you because a sale ends at midnight. Hopefully, with these guidelines in mind, you’ll choose a great solar company that makes a profit, but also gives you a great deal with quality service and support.

photo: flickr/jsbarrie

Tell Your Friends: 0 or Low Money Down Solar

Published on May 27, 2009 by Tor a.k.a. "Solar Fred".
Categories: Affordable Solar, Buying Solar, Municipal Financing, Solar Lease, Solar PPA.

Happened again. I ran into a green person, who told me he loved solar but that it wasn’t affordable. What he’s really saying is that the up front costs are too high, which is why I’m discussing the growing number of leasing and PPA companies out in the U.S.

However, I also want to remind green and all hues of people about all of the available Zero to low upfront cost solar financing vehicles. Not all are right for everyone, but one of them is probably right for you. Then, I want you to get a quote, be pleasantly surprised (told ya) and spread the word to all misinformed greenies. So that you can’t miss the low up front factor, I’m going to put those parts in green bold:

• Low down Home Equity Financing. If you have enough home equity in your home today and in the 28% tax bracket, your up front costs will be the minimal second mortgage fees, perhaps $1000. Sweet. You’ll most likely benefit from the 30% Federal tax credit and writing off the loan’s interest. (Check with your tax advisor, naturally.) And after 8 – 13 years, the panels will have paid for themselves including the aforementioned mortgage fees. Panels last at least 25 years, remember, so that’s also a great selling point to also boost your home value. Naturally, you need to be in a solar friendly state for the best incentives. Check your state here.
• CityFirst type Municipal Financing. The idea is simple. Your city funds solar through bonds. You typically buy your solar through a city approved solar dealer, and benefit from all of the rebates and tax incentives of your city and State. Your home gets a special tax assessment for the rest of the installed solar costs, paid over 20 years, typically at 7% or 8% interest. No money down, no home equity assessments, no dealing with banks. What’s not to like? You’ve got to live in one of these cities. But the list is growing. Call your mayor.
• Solar Leases and Solar PPAs, as mentioned above. Solar Fred is now in the process of going through the details of the programs that I’m aware of. There aren’t that many for the residential market, and they’re only in a few states, but that will change in the coming year. The highlights: 0 or not much down, monthly fees or power rates that are as good or less than what you’re paying now. Some are flat rate for 20 years. Others, you pay a little more every year. If you’ve got one of these puppies in your area today, call ‘em up. See what the numbers are for you, your roof, your energy usage.
• Unsecured Solar Financing. How about unsecured solar loan from clean power finance at 7% or so. It’s available through partner installers, and according to the website, no fees, points, so again, 0 or no cash down. Hello?
  
• Solar Panel Company Financing. There’s a new trend in town that Solar Fred needs to check out. Big solar panel manufacturers such as SunPower are doing their own 0 down financing. Naturally, you have to use their panels and buy through one of their installers. But the panels themselves have a great reputation, so it’s not like you’re slumming. Again, details are sketchy for now, but I’ll let you know after I get the skinny.
• Energy Efficiency Mortgages. They’re limited, offered by the Feds, low interest. Read more here. You might have to make some other efficiency investments first before going solar, but that’s not a bad thing for you, your wallet, or the environment, honest. And yes, it’s still 0 down.

And so dear green readers, let it not be said that residential solar is too expensive or that there are high up front costs. One way or another, you can afford solar. You just have to reach for the phone or click on your mouse and start the process for getting a quote in your area. It’s free. That is, no money down for the quote. Tell your friends, spouse, and dog, or have them read this post. (I’m assuming your dog is an environmentalist.)

Cheap Solar: The Advantage of Tierd Rates

Published on May 25, 2009 by Tor a.k.a. "Solar Fred".
Categories: Affordable Solar, Solar Components.

In many States such as California, utilities often will charge customers different rate tiers for kilowatt hour usage. The more power you use, the higher your rate jumps for that above average usage. As a result, using solar with tiered rates can save a lot of money.

• For example, the lowest rate in PG&E territory is about 11 cents per kilowatt hour (kWh) for the “base tier.” Everybody gets this rate for a certain amount of usage.
• When you use more than this certain amount, the utility charges you HIGHER rates. The next rate tier above 11 cents 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 and to encourage conservation. One way to do that: Go solar.
• If you buy enough solar panels to offset your usage by say just 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 lowest tier.

De-ciphering the South Carolina Solar Energy Tax Credits

Published on May 22, 2009 by Dan Hahn.
Categories: South Carolina.

While dsireusa.org just got a lovely site overhaul and now looks very web 2.0, they still provide us with the opportunity to make solar incentive information a whole heck of a lot clearer to the general public. Getting understandable information about solar incentives is still not easy.

I just got off the phone with a series of South Carolina Department of Energy employees, and happily I was able to finally get the information about state tax credits for solar I was looking for after being confused by what I saw online. I’ve also updated the South Carolina state solar page. Hopefully, the information I dug up will be helpful if you are considering solar energy in South Carolina.

Specifically, there’s a 25% South Carolina personal state tax credit you can take on your solar energy installation. However there is a stated cap of $3,500. Hypothetically, if your system costs $40,000 you’d be entitled to a $10,000 South Carolina tax credit. But, with that cap, you only get $3,500? As it turns out, you are able to extend the tax credits out for 10 years, and are able to recoup all of that $10,000.

South Carolina Code §12-6-3587 allows a taxpayer a credit against income taxes equal
to 25% of the costs incurred in the purchase and installation of a solar energy system,
including a small hydropower system, for heating water, space heating, air cooling,
energy efficient daylighting, heat reclamation, energy-efficient demand response or the
generation of electricity in or on a facility (or home) in South Carolina owned by the
taxpayer. The credit cannot be claimed before installation of the system is completed.
The amount of the credit may not exceed $3,500 for each facility or 50% of the
taxpayer’s tax liability for the taxable year, whichever is less. The credit in excess of
$3,500 for each facility can be carried forward for 10 years. The credit is claimed on
Form TC-38, “Solar Energy Credit.”

And here is form TC-38.

If you’re considering solar in South Carolina, we strongly recommend visiting our SC page, where we now have links to all the information you need to consider going solar. Also, we have local experts nearby you who would be very happy to break down all the financials for you. Our South Carolina solar calculator will be up and running in the near term as well. Stay tuned!

Solar Info: Net Metering Explained (Video)

Published on May 19, 2009 by Tor a.k.a. "Solar Fred".
Categories: Solar Components.

I’m going to get back to leasing, but here’s a great 3 minute conversation about net metering in Boulder, Colorado.

You’ll notice at the end of the video that the solar guy says that if your solar panels produce more electricity at the end of the year than you actually used for the year, then the utility will pay you a wholesale rate of electricity for that extra power. That’s may be the way it goes in Colorado, but that is NOT the case with every State.

Here in California, for example, if you size the system wrong and have produced more solar energy than you used at the end of the year, the utilities will not pay you anything for that extra energy. You will have “donated” your net extra power to the utility.

So check your net metering laws at this DSIRE solar site, but your local solar installer should be able to give you the scoop as well. Also, some utilities do indeed charge a minimum “usage” fee, while others don’t.

By the way, this video is from “Solar Dave,” who has no relation to Solar Fred, though we have the same goal of educating people about residential solar. Dave is apparently more of a solar video blogger–with some good info–albeit with a somewhat Colorado centric view. Check his site out for some more good info.

Solar Info: List of Solar Lease and Solar PPA s

Published on May 18, 2009 by Tor a.k.a. "Solar Fred".
Categories: Affordable Solar, Solar Lease, Solar PPA.

So, we’ve been talking about Solar Leases and Solar PPAs for homes. As I mentioned in an earlier post, the structures of these can vary greatly.

I’ve briefly reviewed the CT Solar Lease and briefly outlined the Solar City Lease and SunRun PPA model.

In a quick (2 hour search) of the web, I’ve found the following seemingly active residential solar lease or PPA providers, but other than the ones just mentioned, I have not done my homework yet to go over each company. So buyer beware, but if you’re interested in going with a solar lease or solar PPA in your area, here are the websites of the residential ones I’ve found so far:

• CT Solar www.ctsolarlease.com. Connecticut only.
• Heliomu PPA www.heliomu.com California only
• Solar City Lease www.solarcity.com Arizona, California, and Oregon
• SunRun PPA. www.sunrunhome.com California, Massachusetts. In Arizona, SunRun provides a lease model similar to Solar City’s.
• freEner-g www.freener-g.com Pilot Minnesota Solar Lease plan

In the Near Future: (As announced in the Philidelphia Enquirer):

• Gemstone Group Pennsylvania Solar Leasing Plan (details not yet announced)
• Gemstone Group New Jersey Solar Leasing Plan (details not yet announced)
• Urban Eco Electric www.urbanecoelectric.com, Philadelphia, PA only, (coming soon)

Here are mainly Commercial/Business/Government PPA companies:

• Tioga Energy
• Sun Edison
• Photon Energy Services
• Solar Power Partners
• Clean Source Power
• Recurrent Energy
• MMA Renewable Ventures
• Green Rock Energy
• Green Energy Finder
• PVOne
• SunPower Corp
• Envision Solar

In terms of what to expect from the residential list above:

• Solar PPAs and Solar Leases will be different from company to company and State to State.
• In fact, the same company offering a Solar Lease in California may only offer a Solar PPA in Arizona or visa-versa.
• Some pay for maintenance or contribute funds to the maintenance, while others don’t.
• Some companies are the installer, while others offer their leasing or PPA program through pre-qualified installers.
• Some charge you a leasing fee for 15 years or longer with (or without) an annual increase, while with PPAs, you pay just for the energy you use with a yearly per watt rate increase.
• Some require a down payment or deposit of as little as $1000–or more. Others cost you nothing upfront.
• Most require that you have a pretty good credit score in the high 600’s or even 720 in the case of Solar City’s program.
• All are long term commitments of at least 15 years, with options to buy and/or transfer the agreement to a new owner.
• Most–if not all of these companies–will be happy to provide a commercial PPA for your school, church, business, or government agency as well.

Know of any more residential solar lease or Solar PPA programs? Please drop a comment below and share.

Solar Fred Warning: Energy-4–Earth

Published on May 17, 2009 by Tor a.k.a. "Solar Fred".
Categories: Energy 4 Earth Scam.

If there’s one thing I hate more than a scam it’s a solar power scam. “Energy-4-Earth” and the various titles it goes by promises that you can build your own solar power panels and reap the rewards from the sun. Bull Twinkies.

I’m not going to spend much time on this. All you have to do is google “Energy-4-Earth scam” or “rip off” and many, many sites will come up with consumer complaints. I like this one the best. If it really worked, there’d be a lot of great testimonials on consumer bulletin boards. Any positive testimonials you find are from affiliate seller websites trying to sell you the same rip off product. I’ve heard they get $40 out of every sale.

So, please don’t buy this $200 product. You’ll be wasting your money and be disappointed by a scam artist that gives solar a bad name.

The honest truth is that true solar power is going to be an investment with either cash, home equity, or through one the various innovative solar financing vehicles that I discuss on this blog. But that doesn’t necessarily mean that solar has high up front costs or that you’ll never see a return on your investment.

If you live in the growing number of solar subsidy states, you will see a return on your investment. It just takes time, about 7-13 years these days, depending on your utility and size of your system. So please go solar the right way and get a quote from a qualified installer.

Cheap Solar: 53 Ways to Save Energy

Published on by Tor a.k.a. "Solar Fred".
Categories: Affordable Solar, Solar Components, energy efficiency.

I just found this great list of 53 ways 66 to save energy from the Long Island Power Authority, a utility that has solar programs.

As I’ve mentioned in a previous post, you can reduce your cost of going solar by first being more energy efficient in your home. These tips will financially benefit you (and the environment) whether you do a Solar Lease, Solar PPA or buy through some kind of o-down home equity program.

Even if you don’t decided to go solar, the above link is a great list of things to do for your electric bill. Try implementing these tips first, and then get someone to give you a solar quote. Couldn’t hurt.

Solar Incentive Map

Published on by Tor a.k.a. "Solar Fred".
Categories: Affordable Solar, Buying Solar.

Above is an updated solar incentive map by state from DSIRE, the government funded outfit that keeps track of solar incentives and laws that make it easier (or harder) to go solar.

This database is very specific by state and the summaries are generally easy to understand.

CT Solar Lease: Get it While You Can

Published on by Tor a.k.a. "Solar Fred".
Categories: Affordable Solar, Solar Lease.

In my last post about the CT Solar Lease model, I told you about the basics of the program. In this post, I’ll discuss the pros and cons and why I think this is overall the most affordable way to go solar in Connecticut.

So let’s go over the pros first:

• There’s no upfront costs. In my conversations with both installers and consumers considering solar, the upfront cost is always a big impediment to moving forward. People worry about what they might be doing with that 15 or 20 grand, whether it’s investing it or saving the home equity for a cash reserve or for other repairs. Here, you don’t have to worry about that choice. You just pay a flat monthly fee. Simple and easy.
• It’s a flat rate. So, for the example provided by them for a 5KW system, you’re going to be paying $120 a month for the next 15 years with no annual price increases, except for the extra power you need to buy from the utility. (Remember that your solar system can cover 50 to 99% of your power. Whatever it doesn’t cover, the utility covers you–at their regular prices.)
• In an analysis by the National Renewable Energy Laboratory (NREL), they calculated a modest 3% rise in electricity costs in Connecticut over the 15 year term, and the CT solar lease still came out ahead in terms of electricity costs. But energy prices could rise much higher, say 5% or more on average if a carbon tax gets instituted, so the savings might be even greater with a flat solar lease payment.
• Currently, even if you wanted to buy the solar system, the incentives in Connecticut have run dry. So unless those direct incentives are refunded, the most affordable way to go is through this solar lease program.

So what’s the down side? I got to say, not much.

• You’re locked in to at least 15 years, but to me, that’s really not such a big deal. Why would you want to give up your solar panels when energy prices are only going to be rising over the same period? Should you decide to move before then, it’s a good bet that a new buyer will also see the advantage of home energy savings and make your home even more attractive.
• After 5 years, you’ve got to take care of the solar panels and maintenance. Again, this isn’t such a huge deal. Many dealers include web based system monitors that tell you if you’re generating power or not. The panels are guaranteed for 25 years, so no cost there, and the inverter will need replacing. But it’s expected that the Solar Dividends will cover that. Otherwise, because solar has no moving parts, the only thing you need to do is wipe the panels off every few months and brush off any unmelted snow. Solar panels are more efficient (produce more energy) in cold weather, by the way.
• You don’t get the same tax benefits that you would from buying through a home equity loan, but you also don’t lose that cash reserve. Also, as mentioned above, the direct state incentive program has run out of cash, so even if you wanted to buy outright, it’s cheaper to go with the lease now and buy the system at fair market value at the end of the term.

So, bottom line, as of this writing, if you qualify for this program, it’s a no-brainer to me. The NREL analysis mentioned above also gave it a thumbs up. There’s only a limited number of systems that can be installed under this program, so contact one of the pre-approved installers and get a quote.

As always, quotes are free, so even if you’re still on the fence, run the numbers and see what they say. Couldn’t hurt.

(photo: bkusler/flickr)