Frequently Asked Questions

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Is solar energy really cost-effective?

Yes. Your solar electric system will supply you with electricity, which will cost you less than 40% of the multi-tiered rates you are currently paying.

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.

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.

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."

How does a solar electric system affect the value of my property?

According to The Appraisal Journal, (October 1999), "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.

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.

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 per month.

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 finance this loan at a fixed rate and term, pay less every month, and have your loan payments go towards ownership of a valuable asset.

Will the utility company really pay me for my solar electricity?

Yes. 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. Beginning in 2010, the utility company is required to pay for any overage of production on your annual true-up bill.

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, E-7, or "Time of Use" program can greatly enhance the value of solar energy generated.

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.

Who gets the California Energy Commission rebate?

The customer will receive the rebate after the system has been installed and the paperwork processed. This will be in the form of a check to the customer directly.

Are there any tax incentives?

Residential customers may claim a 30% federal tax credit. Businesses are also eligible for accelerated depreciation, in addition to the full 30% federal tax credit. Recently, the federal tax credit was extended through 2016.

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. Learn more»

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.

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.

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.

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.

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.

Is it true that solar modules are still not very efficient?

Silicon solar cells have conversion efficiencies of 10 to 20%. Your car most likely converts gas at 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.