Most Common Questions About Solar Energy

Last Updated on May 25, 2016 by Babita

Recently one of my neighbor and I started a conversation about solar panels. He was approached by a salesperson from one of the companies. As my neighbor felt that it would be an expensive endeavor, he never bothered to make an appointment.

That got me thinking, are solar panels really expensive and unaffordable? I wanted to learn and find out more information about them. Fortunately my most common questions about Solar Energy were cleared when I started reading more about Sunrun. The idea that  Sunrun customers save an average of 20% on their electricity costs (actual savings will vary, click here for details) was very enticing for me.

 

Anyway, if like me you too are looking for more information then read below the most commonly asked questions about going solar. I hope it answers some of the queries you have, and allow you to make decision for yourself.

What are my options for going solar?

Going Solar includes two options. You either purchase the system upfront or lease a system from the solar service provider like Sunrun.

What happens if the homeowners decides to buy the solar service system upfront?

When a homeowner buys the system there is a high and expensive upfront cost. In addition to this, the homeowner is responsible for everything including shopping for a system or installer, managing installation, insuring the system, completing paper work for tax rebates, credits etc., monitoring and replacing expensive parts.

What is a solar lease or power purchase agreement (PPA)?

Leased solar is also called PPA or third party owned solar. It allows homeowners the benefit of solar service with little or no upfront cost. If the homeowner decides to lease solar service, the solar lease provider is in charge of purchasing the equipment, installation, monitoring and maintenance of the system as per their agreement.

How much am I going to save with solar?

This depends on the your personal usage and the rate charged by your local utility. Sunrun customers save an average of 20% on their electricity costs (actual savings will vary, click here for details).

Do I get tax credits and rebates?

If you opt to lease or power purchase agreement (PPA), the solar provider like Sunrun will benefit from both Federal and State incentives. The tax credits and rebates are offered to owner of solar panels. Since Sunrun are the owners of the panels they will take advantage of those incentives and pass it down to the homeowners with lower price solar electricity.

What are tiered utility rates and why do they matter?

Tiered utility rates are part of the reason electricity has become so expensive. With tiered rates, the more electricity you use, the higher your rate becomes per kilowatt hour. These tiers are typically less regulated or not regulated at all, which means that utility companies have the ability to raise rates without your consent. You’re allowed a certain amount of power in each tier; once you’ve exceeded that amount, you are subject to pay the next highest tiered rate. Lower tiered rates are generally affordable and higher tiered rates can be very expensive. In many cases, leased solar providers like Sunrun will recommend a system that only offsets your expensive tiers, to help you maximize your savings. The nice thing about going solar is that you can better predict your electricity costs for decades to come.

Where do the panels go on my house?

In most cases, panels are installed on the southernmost side of the home to ensure the highest amount of sun exposure and production possible. The size and number of the panels are designed specifically for your home and energy consumption.

What’s the difference between grid-tied solar and off-the-grid solar?

Grid-tied solar is a solar system that uses a utility’s electrical grid to send and receive power. Off-the-grid solar is a solar system that utilizes a battery backup that is not tied to a utility’s grid. With third-party-owned solar, the system is tied to the grid so that your system can use your utility company’s grid for electricity storage. While it would be ideal for solar customers to be completely off the grid, batteries that store solar electricity are highly expensive, and the waste management is very toxic to the environment.

 

I personally know that many of my doubts regarding solar panels and solar electricity have been laid to rest. I also like the option of leasing the solar system. As a homeowner it would be very expensive for me to pay for the solar panels upfront and deal with all the maintenance. Having Sunrun install, monitor and maintain would definitely give me a peace of mind. If you have a moment, makes sure to check out their Youtube videos.

 

https://www.youtube.com/playlist?list=PLesr8zzA0huL2oNfvSB5lbdqjNk2_HeOV

 

The cool thing is Sunrun is hosting a Sweepstakes on their Facebook page. You can enter to win a Nest Learning Thermostat. Isn’t that exciting? So what are you waiting for, head over there and enter the sweepstakes.

 

 

Disclosure: I was selected for this opportunity as a member of Clever Girls and the content and opinions expressed here are all my own.