We realize that while the concept
of solar power is generally understood, the details can be somewhat
daunting. So we have compiled a list of frequently asked questions
(FAQ's) which we will continue to update on a regular basis.
Is solar electricity really cost-effective?
Yes. Your solar electric system will supply you with electricity,
which will cost you less than 25% of the multi-tiered rates
you are currently paying. <<Back To Top>>
Is utility power really cost-effective?
No. Your utility charges you at least four times as much as
you would pay if you had a solar electric system. Utility rates
are constantly increasing. As you pay your utility bill you
do not gain equity in an asset. <<Back To Top>>
How long until my system realizes net savings?
If you finance your system as recommended, you will experience
net savings as early as the first year. Instead of paying your
monthly utility bill, you will make monthly loan payments for
your PV system. You will effectively pay less for your loan
over time than you currently pay your utility company. <<Back To Top>>
What does solar electricity do for the environment?
Your system will reduce the demand on existing fossil-fuel power
plants, thereby reducing pollutants and global-warming CO2 emissions.
The EPA says, "Using solar energy to replace the use of
traditional fossil fuel energy sources can prevent the release
of pollutants into the atmosphere." <<Back To Top>>
How does a solar electric system affect the value of my property?
According to The Appraisal Journal, Evidence of Rational Market
Evaluations for Home Efficiency, a $1 decrease in your annual
energy bills results in a $20 increase in your property value.
Using this formula, one can estimate that your property value
will increase by at least the net cost (after rebate) of your
system. <<Back To Top>>
Will my property taxes increase?
No. Despite the fact that your property value will increase,
there is legislation that prevents your property taxes from
increasing. Solar is not assessed into property tax value.<<Back To Top>>
Can I really zero out my electric bill?
Provided you have enough physical space, you can install a photovoltaic
system that will produce as much electricity as you use, leaving
you with a minimum bill of about $5. <<Back To Top>>
Can't I just invest my money elsewhere?
You have to pay your electric bills. You are already essentially
financing an indefinite, variable rate loan from your utility
company. You might as well refinance this loan at a fixed rate
and term, pay less every month, and have your loan payments
go towards ownership of a valuable asset. <<Back To Top>>
Will the utility company really pay me for my solar electricity?
Yes and no. Upon installation of your solar electric system,
you enter into a Net Metering Agreement with your utility company.
Throughout the year, you are given credit for every kWh that
you produce that is worth exactly what you would have been charged
for that same kWh. At the end of the year, if you have produced
as much as you have used, you will have reduced your electric
bill to zero. You will only be responsible for paying the minimum
charges for having a meter, which for most residences is $5.00
per month. However, you will not be paid for any excess production.
Consequently, we size your system to just meet your annual usage. <<Back To Top>>
What happens to the solar electricity that I do not use?
Any excess solar electricity produced will go back into the
grid through your meter, running it backwards. You are credited
for each kWh produced at the same rate that you would be charged.
PG&E’s E-6 or “Time of Use” program can
greatly enhance the value of solar energy generated. <<Back To Top>>
What happens on a cloudy day or at night?
Your solar electric system will not produce electricity without
direct or diffused sunlight. On cloudy days and at nighttime,
you will draw electricity from the grid. You build up credits
on sunny days and draw from these credits on cloudy days and
at night. <<Back To Top>>
Is the CPUC rebate for real?
Yes! The major components, solar modules and inverters, are
worth more than your net cost of the system. In fact, in most
cases, the equipment sells on the wholesale market for more
than you will pay for the equipment and installation combined.
However, the rebate will not be around forever. The California
Public Utilities Commission buydown program will cease to exist
when the current available funds are reserved and ultimately
paid out. In addition, the rebate level is set to decrease soon.
<<Back To Top>>
Who gets the California Energy Commission rebate?
PowerHouse Solar will charge you the after rebate cost. PowerHouse
Solar will then receive the rebate after the system has been
installed and the paperwork processed. You may choose to pay
100% of the cost up front. <<Back To Top>>
Are there any tax incentives?
Businesses may claim the state tax credit, along with a first
year 30% federal investment tax credit to a maximum of $2000,
plus depreciation.. Commercial investments are also eligible
for accelerated depreciation.
<<Back To Top>>
How does solar electricity work?
The sun's energy in the form of photons release electrons from
their bonds in the silicon semiconductors that make up the solar
cells. The flow of these electrons makes up the current that
we ultimately utilize.
<<Back To Top>>
What are the major components of a solar electric system?
A grid-tied solar electric system requires solar modules and
one or more inverters. AC and DC safety disconnects are the
other necessary components. <<Back To Top>>
What does the inverter do?
The electricity produced by the solar modules is direct current,
or DC. The inverter converts this electricity to alternating
current, or AC. Most electrical devices in homes and businesses
run on AC electricity.
<<Back To Top>>
Do I need batteries?
You do not need batteries if you are tied into the grid. Essentially
your utility company stores your solar electricity for free.
Batteries would only be necessary if you need power during blackouts
or if you are not connected to the grid.
<<Back To Top>>
Which appliances and loads can I power with my solar electric
system?
You do not designate electricity to any specific loads. The
electricity produced by your solar system functions in the exact
same way as the electricity from the grid. Your solar electricity
will provide power for all of your uses.
<<Back To Top>>
Will my solar electric system provide heating?
Most homes use natural gas or LPG for heating. If your home
has a heat pump, the solar system will provide power to it.
<<Back To Top>>
Is it true that solar modules are still not very efficient?
Silicon solar cells have conversion efficiencies of 10 to 14.5%.
Your car most likely converts gas at a 20% efficiency. The difference
is that gas costs a lot more than sunshine. The cost per kWh
of energy produced is a more relevant factor. Other considerations
are the space required and the total cost.
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