Smart Bill and Smart Power Management
New Energy Storage System Is Revealed by LG Electronics
LGE Energy Storage Monitoring System
LGE Energy Storage System Benefits and Features
Energy Solution for Every Home
Battery System Specifications
14 Things You Should Know Before Buying A Solar Power System For Your House
Saving money and doing something positive for the environment: these two reasons drive most homeowners to consider installing solar power. They’ve heard they can save money on their electric bills, and they know increasing the use of clean energy is a positive step for the planet. It’s not always easy to know where to begin. Some of the questions a homeowner might ask include:
Does my town/city/utility support the use of solar panels?
Is my home located in a good spot for a solar power array?
Would I have to fix my roof first?
How many solar panels would I need, and how much would an installation cost?
After considering the expense of panels and installation, how much money will I really save over time?
What type of solar panels would best suit my budget and needs?
The answers aren’t simple, and they vary depending on the location of a home; whether the roof does need a repair before installing solar panels; federal, state and municipal programs and solar power incentives; and the rates and policies of local utilities. That’s why it’s important to contact a qualified, professional solar installer—or even to talk to more than one – to request a site visit, a quote for panels and installation, and a savings forecast with a timeline for those savings.
Finding the Answers to Your Initial Questions
Many potential solar customers first do some research online. You can find information on local, state, and federal solar incentives as well as the average time expected for a solar array to pay for itself in your area. A professional solar installation company will send a sales representative who can explain the local, state, and federal incentives for installing solar panels in your area. In addition, he or she will understand your utility’s policies and will explain how your solar array will provide electricity to the grid, possibly yielding credits from the utility toward your electric bill (unless you are installing an off-grid system with battery storage that will directly power your home). After taking a look at your roof and the positioning of your home related to the sun and shaded areas, examining a recent utility bill to determine your average monthly power usage, and asking you what percentage of your bill you would like to offset with solar power, the installer will estimate the number of panels you will need. Often the installation company will send a professional roofer to determine if a roof repair would first be needed, and will take some time to design an array that would meet your needs before providing you with a final quote. Once you receive the quote and learn how much your electricity bill will go down on an average monthly basis, you can factor in tax and other incentives to estimate how long it will take your array to pay for itself before you start experiencing significant savings.
7. What Factors Affect the Number of Panels You’ll Need?
The question of how many panels you will need will be determined by your installer depending on a number of factors:
8. What percentage of your electric bill do you hope to offset with solar energy?
9. How much electricity do you use in an average month? (Consider potential future needs, such as electric car charging)
10. How much sun does your area receive?
The National Renewable Energy Laboratory provides a handy map that tells how many kWh (Kilowatt hours) you can generate in one year from 1 kW of solar panels if they are situated in an ideal spot in your area. Find their maps here: https://www.nrel.gov/gis/solar.html. Your installer will adjust for expected losses from heat, wiring, etc.
11. Does your state/utility offer Net Metering (credit on your electric bill based on the amount of electricity your panels feed into the grid)?
12. Will your installation include battery storage?
13. What is the maximum power output and efficiency of the solar panels you will install?
14. How many panels you need will depend largely on two main factors: power and production.
Solar Panel Efficiency Explained
When consumers evaluate solar panels, they often focus on the advertised maximum power (Pmax). This measurement represents a solar panel’s theoretical power production under ideal sunlight and temperature conditions.1 Think of it as the maximum amount of electricity a user can expect a solar panel to produce in an ideal solar environment. In truth, a solar environment is never ideal every day. Regional differences, as well as seasonal and weather changes, limit the value of the Pmax measurement when trying to determine the expected long-term performance of a newly installed solar array. It is important to consider the efficiency of a solar panel.
Solar Panel efficiency can be defined as the “Ratio of Solar Panel Power and Size (W/m2 ); at Standard Testing Condition” (STC). Universally, STC is measured as 1,000W/m2 of sunlight, temperature of 25 deg C, and air mass of 1.5.
Below is an example of efficiency calculations for 60 cell and 72 cell:
LG NeON® 2 panels: NeON® 2 60 Cell: STC Power Rating- 340W/0.34kW;
Length – 1.686m; Width – 1.016m
• 0.34kW / (1.686*1.016)m2 = 0.34 / 1.7129m2 = 19.8% Efficient
• Panel Power (in kW) = 0.34
• Length (in meters) = 1.686
• Width (in meters) = 1.016
NeON® 2 72 Cell: STC Power Rating- 405W/0.405kW; Length – 2.024m; Width – 1.024m
• 0.405kW / (2.024*1.024)m2 = 0.34 / 2.0725m2 = 19.5% Efficient
• Panel Power (in kW) = 0.405
• Length (in meters) = 2.024
• Width (in meters) = 1.024
LG NEONR
Armed with the knowledge of a panel’s efficiency rating, consumers can determine reasonable expectations of the performance of their installed solar systems in different sunlight conditions. Utilities and homeowners who want to maximize the amount of electricity generated by their solar systems should always choose high efficiency panels. High efficiency panels purchased at a good price represent the best value for solar customers. The added efficiency means fewer panels are required to generate the same amount of energy.
Energy Efficiency Estimated
LG Solar and High Efficiency Panels
The efficiency rating of a solar panel varies by manufacturer and panel type. LG Solar’s goal is to manufacture high efficiency panels that will provide LG customers with a solid return on their investment.
What this means is that LG Solar’s panels produce more watts of electricity per watt of sunlight than solar panels with lower efficiency rates (most conventional panels on the market today). LG Solar is constantly innovating new technologies that boost our solar products’ output and efficiency.
LG NeON® 2 BiFacial Panels and Double-sided Generation
LG Solar’s 72 cell BiFacial solar panels are a commercial product designed to absorb irradiance from both the front and back sides of the cells thanks to a transparent back sheet. The dual faces of the cell allow for higher energy generation. The increased kWh/kW leads to a faster payback time and return on your investment.
The reactiveness of the surface on which the panels are installed can help boost output and efficiency.
NEON2-BIFACIAL
The NeON® 2 and Cello Technology™
The NeON® 2 is LG Solar’s best-selling solar panel, thanks to its high efficiency rating along with high power output, outstanding durability, and aesthetically pleasing design. But how is its efficiency rating achieved?
LG Solar’s NeON® 2 panels incorporate a technology called Cello (Cell connection with Electrically Low loss, Low stress and Optical absorption enhancement) Technology™. Cello Technology uses 12 circular wires in each cell instead of the usual busbars. The circular wires scatter light effectively, improving light absorption. Then, the 12 wires reduce the loss of electricity because of the increased number of pathways available to absorb electrons. These additional pathways for the free-flowing electrons translate to more electricity produced per absorbed watt of sunlight—and that means higher efficiency levels.
Also thanks to NeON’s cell characteristics, the panels are highly efficient even in low-light conditions, such as mornings and evenings.
The NeON® R and Back Contact Technology™
The NeON® R is LG Solar’s high-power luxury panel featuring up to 21.4% efficiency thanks to our newly developed Back Contact Technology. The advanced cell structure of the NeON® R locates all of the panel’s electrodes on the back side, reducing power loss resulting from shading. This boosts the panels’ capacity for light capture and overall efficiency.
As with the NeON® 2, the electrons absorbed by NeON® R panels are funneled into numerous pathways instead of the usual three to reduce power loss and increase power output.
Conclusion:
Why Efficiency Matters?
When homeowners consider their choice of solar panels, they look at a variety of features, from aesthetics and durability to maximum power output and warranty policies. Efficiency is one of the most important considerations. High efficiency panels produce more power in a smaller space over a variety of sunlight conditions. As a result, fewer panels are required to produce the same level of power output (which gives installers more flexibility when designing arrays for smaller roofs or in shaded areas).
Balancing the investment in the cost of solar panels with their efficiency rating and maximum power output, consumers gain both short-term and long-term benefits from purchasing high-efficiency solar panels. LG Solar’s BiFacial, NeON® 2, and NeON® R panels provide solid options for arrays ranging from small rooftops to large commercial installations.
_ Provided by LG Solar
Why Solar Energy And Battery Storage Matter?
Solar Reliable Source of Energy
The last couple of weeks have been quite productive and promising for the Texas solar industry. The 2019 Solar and Storage Festival (SSF19) was organized by Zpryme in San Antonio to bring experts together to explore market growth opportunities, innovative financing, and how to position solar and battery storage at the center of the energy transition. SSF19 offered opportunities for utilities, industries, and community leaders to participate and share their ideas and concerns, with a focus particularly on the effects of extreme weather on the supply and demand of electricity.
As a person who has advocated fighting for climate change and implementing climate solutions to reduce our vulnerability to the impacts, I am particularly interested in the emerging field of solar energy and battery storage as a part of the climate solution. I found my new employer, Lighthouse Solar, to be a dedicated local company committed to transitioning Texas to clean, affordable, distributed, renewable power sources.
I studied Energy Policy and Administration at Texas Tech University where I was fortunate to have worked on several projects related to climate crisis and energy efficiency. So, I was interested in taking part in SSF19 to explore more about the future of the solar and storage market in Texas. Prior to this opportunity, I participated in Dr. Katharine Hayhoe's classes, panel discussions, and presentations which were instrumental in opening my eyes to the necessity of being prepared for the negative impacts of climate change and reducing communities' vulnerability against climate change. The climate is rapidly changing; reducing carbon emissions, particularly from the energy sector, and shifting our reliance away from fossil fuels toward renewable energy is one of the most important ways to mitigate impacts.
Extreme weather events such as hurricanes and storms across the United States are becoming more frequent and the damage done is exacerbated due to climate change. Communities are affected on a broader scale each year. As the weather gets warmer, hurricanes are exemplifying:
● increased intensity
● increased wind speeds
● more frequent occurrences
● higher levels of precipitation associated with them
● a lead to increased sea-level rise, which further increases storm surge
We have seen all of these characterizations in the past few hurricane seasons. One of the negative impacts of extreme weather are the long-lasting power outages which increasingly threaten vital infrastructures such as hospitals, police stations, and fire departments. The significant role of solar energy, battery storage, and microgrids to maintain a reliable source of energy to the public during these events is undeniable. At the national security level, solar energy and battery storage are paramount to preparing for the magnitude of future impacts.
Why it Matters?
Impacts to the Economy and Security
The reliability, security, and resilience of the energy system are interconnected with every sector of the U.S. economy and frequent outages would have a critical impact on our economy and national security. At SSF19, industries and utilities came together to explore solutions and opportunities to position solar and battery storage at the center of the energy transition to respond to the impacts of catastrophic events. To meet this goal, smart grid and microgrid technology are presented as a key tool in the integration of storage and renewable energy as well as improving communities’ resiliency.
SSF19 provided a thought-provoking dialogue with some of the most influential and forward-thinking individuals and organizations, centered around solar and energy storage solutions. For example, the Sweatt Chair in Technological Leadership and the Director of the Technological Leadership Institute at the University of Minnesota, Dr. Massoud Amin, discussed how solar storage and microgrids can help create a more resilient energy system. His research has shown that the cost of generating electricity by renewable energy is remarkably cheaper than fossil fuels. The Return on Investment (ROI) related to the project, which utilizes renewable energy to generate electricity, was anticipated to be about a year and a half, Read More.
Dr. Amin argues that domestic policy and customers' engagement are the primary drivers for nations to become fossil-fuel-free. He states:
● “Customers engagement is critical to successful policy implementation to enable end-to-end system modernization”
● If the transformation to a smart grid is to produce real strategic value for our nation and all its citizens, our goals must include: “Enable every building and every node to become an efficient and smart energy node”
In my opinion, the most impactful section of SSF19 was energy security and the necessity of implementing smart grids and storage to ensure eliminating long blackouts and providing reliable sources of energy to the nation. The clearest message delivered at SSF19 was the fact that solar photovoltaics (PV) is playing a key role in the energy system transition. Associated costs have fallen substantially so that solar is now competitive with fossil fuel-fired generation in many parts of the world. Many utilities in the U.S. are investing in solar to generate electricity and they have integrated solar with battery storage and smart grids to handle blackouts and peak demands. For example, the Electric Reliability Council of Texas (ERCOT) CEO, Bill Magness, discussed the impact of implementing renewable energy and battery storage on the Texas grid in this era of rapid innovation in the electric sector. He states triple-digit temperatures across Texas are putting a strain on the state's electric grid system. ERCOT manages the flow of electricity for about 90% of the state's customers and can generate a maximum capacity of about 78,000 megawatts of electricity for peak demand, according to ERCOT. However, in Texas, the strain on the grid was so volatile this summer that wholesale electricity prices spiked to $9,000 a megawatt-hour. Thus, he provided an overview of what elements have been driving solar and storage in the ERCOT market over the last few years.
Challenges Identified at the Conference?
Several challenges prevent widespread implementation of solar and battery storage in the U.S. The most important one is the lack of policies that favor large deployments of renewable energy and lack of government subsidies to motivate utilities and companies to invest in the renewable energy industry. Despite nations worldwide committing to a reduction in carbon emissions and implementing renewable energy through the Paris Agreement, the fossil fuel industry continues to receive huge amounts of taxpayer funding. However, while the renewable energy price drops significantly, many experts were wondering why subsidies for the fossil fuels industry have increased. In addition, domestic policies are largely responsible for the support of renewable energy. For example, the 30 percent Solar Tax credit (ITC) is due to drop by four percent in 2020. As the solar industry’s tax break is stepping down and the value of the subsidy will fall for three years until it ends for residential solar and permanently drops to ten percent for commercial solar, a lack of favorable long-lasting policies can be identified as one of the biggest challenges for the solar industry. If we want to encourage people to invest in renewable energy, we need long-term stable policies to encourage the public to participate in the carbon reduction plan.
Why It Matters to Customers?
Understanding the increased risks posed by climate change will help people plan for, respond to, and recover from destructive and dangerous weather. Extreme weather and sudden changes to the climate condition are happening now, particularly to those who live in Texas. We have experienced the hottest July on record for our planet and Texas residents have received several energy conservation alerts in the last few months.
Recently, we have seen dramatic increases in demand for installing a solar panel system and battery storage. Since last year, Lighthouse Solar has installed more than 150 Tesla Powerwalls. The battery storage industry is expanding and the need for having backup power during the outage is a necessary part of the sustainable community.
You might wonder why people are so interested in battery storage, lately? They are looking for a secure and stable way to ensure that they will have access to the energy during the heatwave and storms as well as handling blackouts and power outage. At Lighthouse Solar, we are communicating with customers on a daily basis and our customers are very interested in generating their own electricity and to contribute to the carbon-free community. Rooftop solar PV has been a very interesting investment for homeowners and businesses as Austin Energy provided $35,00 incentives to enlarge base savings on the solar power system installation. The need for having backup power during an outage is a necessity for those who are in critical and serious conditions such as geriatric people. On the other hand, as storm-related power outages are getting more frequent, utilities’ old-fashioned distribution system is not capable of responding to catastrophic events and as a result, they have no choice except to shut off the customers’ power to maintain the reliability and safety of their systems. Thus, people have realized the great advantage of generating their own electricity and using battery storage to have backup power during blackouts. Frequent changes in weather, storms, and hurricanes have brought about so many uncertainties to our lives and everyone would prefer to be prepared for any sudden changes.
We are living in a very complex and dynamic environment now. Every aspect of our lives depends on digital technology and so what would happen if we do not have access to electricity even for a few hours?
As communities rely on energy to perform, we need to invest in transitioning our reliance toward a more secure, stable, and affordable source of energy.
Conclusion
Overall, the main key points of the SSF19 can be summarized as follows:
● Solar energy is booming in the U.S. and in 2018, the solar industry generated a $17 billion investment in the American economy.
● Prices as of Q1 2019 are at their lowest levels in history across all market segments. An average-sized residential system has dropped from a pre-incentive price of $40,000 in 2010 to roughly $18,000 today. Recent utility-scale prices range from $28/MWh - $45/MWh, making it competitive with all other forms of generation.
The energy transition is accelerating, empowered by the low price of renewables. Utilities are investing in the solar industry as the ROI is becoming more substantial.
We are in a fascinating phase for the industry. Policymakers in many states are demanding a faster transition to a "clean" energy economy, but the pathway will be challenging. The SSF19 conference showed the importance of integration with energy storage and collaboration with a variety of stakeholders. In conclusion, to meet aggressive state and municipal goals for decarbonization, the pace at which solar and storage projects are deployed will need to increase dramatically. Whose job is it to help incentivize customer adoption? Utilities, solar and storage manufacturers, and the government. I am hopeful these discussions will continue in earnest at all levels to help place solar and storage in the center of the energy transition.
A Journey To A Net Zero Energy Home
Solar Panel System with Battery Storage
As the extreme weather event such as heatwaves, hurricanes, floods, wildfires, drought, and rising sea levels is emerging, rooftop solar panels offer an affordable solution to restore natural systems with renewable, carbon-free energy. Distributed solar offers tremendous potential to reduce our nation’s GHG emissions, and large deployments will also reduce sulfur and mercury pollution while saving approximately 60,000 American lives each year.
One remarkable net zero energy project that had a positive impact on the community, the environment, and our company is the Starkey solar project.
Background
Gil (James) Starkey is co-founder of 350 Austin, a nonprofit organization fighting the climate crisis. He has dedicated his energies to inform people about global warming while personally taking on the climate crisis by shifting his reliance away from fossil fuels and moving toward clean energy with rooftop solar, a battery system, and a fully electric vehicle.
Starkey and his wife Roberta Tsurkahara have been interested in solar and energy conservation for a long time. They had solar on the home prior to their move to Texas and were familiar with the benefits when they purchased their new home in the Mueller neighborhood. Installing another rooftop system seemed like the right thing to do. They have owned their current system for three years now and are contributing to a more fossil-fuel-free world.
Since their home was newly built, they were not certain what their energy needs would be, but they wanted a photovoltaic system projected to offset over 90% of their consumption. After some discussion and number crunching, they concluded a 7.5 kW system would be a good fit. The system produces an average of 10,705 kWh yearly by utilizing 25 LG 300W AC modules. However, the Starkey family has managed to consume less electricity than the average home of its size. The result is they produce more electricity than they use and the family has yet to pay an electric bill.
This year, with federal incentives scheduled to decline in 2020, the Starkey’s decided to make their next big investment by purchasing an electric vehicle and a battery system. With two Tesla PowerWall batteries, they can manage their entire home electricity consumption and monitor their usage. Battery storage is another tool that helps the Starkey family deal with climate change and manage their way through blackouts.
Tesla
Power
Wall
& EV Charger
Customer Interview
I had an opportunity to ask Gil a few questions about his solar journey.
Nafi: What interested you about going solar initially?
Gil: Having lived most of my adult life in the Boston area, we had no real opportunity for solar power, since we lived in urban condominiums. These buildings ranged from 70-110 years old and were difficult at that time to retrofit for solar. I became interested in solar when I moved to Austin in 2000 and built a house. Our interest at the time was to limit, as much as possible, our direct impact on the environment. Generating our own electricity was, therefore, appealing.
We were not able to implement solar before returning to New England, this time to an ecovillage in Maine. We installed solar there for the same reasons we had planned to do so here in Austin. By the way, we were in mid-coast Maine, where wintertime overnight lows are quite frequently below zero, often 10-15 degrees below zero. Our house was designed to approach the Passive standard, so it was extremely well insulated and faced solar-south to maximize passive heating. Because of these factors, our home had to be, and was, 100% electric, even in a frigid climate. Our solar panels enabled us to live very comfortably at nearly net-zero. That experience sold us on solar panels.
By the way, solar panels were cropping up all over Maine on 100 to 150-year-old farmhouses. I was surprised to learn that although Maine receives much precipitation and experiences many cloudy days, it actually receives more sunshine than Germany, where solar panels are ubiquitous. No wonder Mainers, thrifty New Englanders that they are, were installing solar!
Nafi: How did you choose a solar installer?
Gil: Having already decided to go solar once we returned to Austin, I began researching companies as soon as we knew where we were going to live. My research narrowed things down to a few companies and my decision was confirmed when I discovered that our neighborhood had gone through a selection process for a significant solar project a year or so before we moved in.
Nafi: What advice would you give to someone who wants to go solar?
Gil: First of all, it just makes sense from economic, environmental, and climate change perspectives. Texas is absolutely bathed in sunlight. I am baffled that governments and electric utilities do not promote and subsidize solar more strongly. The more solar people install, the fewer utility-grade power generation facilities must be built, and that alone will save utilities hundreds of millions of dollars.
The price continues to plummet. Two years after installing solar in Maine, we purchased a system here that was 40 percent larger, but the net price of the two systems was the same. We (humanity) must move to a zero-carbon economy at warp speed. Global heating is approaching tipping points that once crossed, cannot be reversed. Utilities have traditionally contributed the most greenhouse gases, so widespread solar (and wind) generation is a necessity. It makes sense. Do your research. Find a strong, reputable company, and get a proposal.
Nafi: Do you have any data on your solar system’s performance you found it interesting to share?
Gil: Our system was intentionally over-engineered because we planned at some point to purchase an electric car. We now have our EV, and I am pleased to report that our solar array is supplying all of our home's electricity, even in summer, plus charging the car. We are effectively off-grid for home and transport. Since installing solar in February 2016, we have not paid any utility bills. That’s right, $0, and we have a substantial credit with Austin Energy.
Without a rooftop solar system, they would have paid approximately $1,243 per year for the electric bill. Moreover, the solar panel system cost will be paid off within 8 years and the total amount of money the household will save within 30 years is estimated at $41,785.
Net Zero Energy Home: Austin,Texas
Solar+Storage Data Monitoring: a Strong Tool to Manage Usage
Everyone is familiar with data collection trends and the ways in which information is used and misused; from sabermetrics in baseball to news blasts on Facebook. But when it comes to conserving energy in your home, energy monitoring tools are extremely useful. These tools are available for consumers to monitor the production of their photovoltaic systems and the energy consumption of their home or business.
The ability to see and use consumption data enables the Starkey’s to make informed decisions about their electricity use— knowledge is power when it comes to conserving energy. Online monitoring tools enable customers to access information from their browser or smart phone. After three years of monitoring, the Starkey system has offset 100% of their home electricity consumption. This could change next year with the additional EV home charging load; time will tell.
The graph illustrates the electricity generation and consumption for two summer days related to the Starkey family solar system. Despite the higher consumption in the summer time and using an EV charger the production still matches what the household demands.
Conclusion
The United States installed 2.7 gigawatts of solar in the first three months of this year, which set a record for the first quarter of a year. In addition, 25 percent solar growth is predicted this year by Wood Mackenzie Power & Renewables institute. According to Renewable Energy World Texas holds great potential to increase renewable energy generation and to integrate distributed solar resources in innovative ways while preserving our deregulated market structure. Collective action is all that is required to move and make Texas green.
If you would like to learn more about Lighthouse Solar services or be a part of the green movement, contact us at Lighthouse Solar for a free estimate and consultant.
Click HERE or call us at (512) 476-5555.
- By Nafi Shah & Jay Bramble
Attention Austin Energy Customers!
Lighthouse Solar
August 31st is the last day to secure the Austin Energy $3500 summer rebate!
Are you surprised by your summer electric bill? July has been the earth’s hottest month on record. Solar panels are the best tool to combat a high electricity bill and save money.
If you’ve been waiting to go solar, now is the perfect time! Austin Energy (AE) solar incentives can go a long way to make solar affordable. Austin Energy provides a chance for its customers to get a $3,500 rebate when they install a solar system on their home. In addition, you are eligible for a 30% Solar Tax Credit from the Federal Government - which is dropping to 26% in 2020. Don’t lose your chance to maximize your savings by installing a qualifying solar photovoltaic (PV) system on your home. The Austin Energy $3,500 rebate will expire on September 1st Installation is not required by this date. Rebates can be secured through a letter of intent with Austin Energy. Contact us to show you how.
Support sustainable green solar energy:
To Save Money & Reduce Your Electricity Bill
To Protect the Environment and Keep Austin Green
Strengthen Our Local Economy by Creating Clean Energy Jobs
Reducing Your Electricity Bill
Help Grid Demands During Peak Hours
At Lighthouse Solar our sales/design team will generate a customized proposal for your home!
If you’re interested in getting a free solar consultation call us at (512) 476-5555 or click on the button.
_ Nafi Shah
Communication Coordinator
LighthouseSolar
Essence of Solar Financing
I have had a lot of conversations about how solar financing works and how it varies from traditional financing. Solar financing can seem a bit strange and unfamiliar so I decided to jot down some facts and hopefully explain some of the basics.
No money out of pocket
Every single loan product we offer for solar system is NO MONEY DOWN. This means no upfront costs or fees. Essentially you can transition from paying the utility to rent your energy to owning your energy without spending a penny!
Flexible to Meet your Needs
Solar financing is available in many terms making it easy to tailor the loan to the project and/ or the clients particular budget goal. Our lenders offer 10, 12, 15, and 20 year terms. All solar loans are simple interest and have no pre-payment penalties.
Caters to Federal Solar Tax Credit
This is the meat and potatoes of solar financing and what makes it different from traditional loans. When you purchase a solar system, you can receive a 30% refund of the system’s cost on your next federal income tax return. Solar financing takes this incentive into consideration in the payment schedule.
When you finance your system the loan is set up to give you up to 18 months to file your taxes and apply the 30% Solar Tax Incentive to the loan. The finance contract will include 3 different payment amounts. The first payment is an interest-only payment for the period of time (up to 18 months) in between installation completion and when you file your taxes for that year. The second is the payment amount before the incentive is paid to the lender and the third reflects what the payment will be after the 30% has been paid. This allows you to have enough time to file your taxes and forward the payment to the lender.
Payment of the 30% federal tax incentive is not required by the lender, nor is there any penalty if it is never paid. You simply would have a higher payment based on the principal loan amount being 30% higher. It is worth mentioning that close to half of people who finance their solar systems never pay in the incentive. Some use the 30% tax incentive to pay down other higher interest loans or credit cards. Others might take a well-earned vacation or make a larger purchase that may have otherwise been impossible. It is a good example of how solar has hidden benefits beyond the obvious energy cost savings.
To sum it up, there is a financing option for everyone and we cater to each client individually and offer options in a consultative manner.
-Erik Smith
Technical Sales
LighthouseSolar
Our Take On The Tesla Rooftop Solar Panel
We’ve been hearing a lot of buzz in the industry surrounding Tesla’s recent announcement of the “Tesla Solar Roof” product. Being designers and installers of solar technologies we wanted to share some of our thoughts on this product announcement and hopefully clear up some of the questions and confusion left by the announcement event.
Previous Attempts at Integrated Solar
Firstly, the concept of a solar integrated roofing shingle is not entirely new. It has been attempted previously by several manufacturers in the residential market including some big industry players like Dow with their Powerhouse shingle, and Sunpower with their SunTile product. Both products underwent significant marketing efforts and the building out of dealer channel networks, but ultimately were met with limited success in the market and discontinued.
For those with a negative view of the aesthetics of solar panels, there is a clear advantage to using an integrated roofing shingle product. Others, however, find the look of roof mounted solar panels quite beautiful and see their addition as an upgrade to the home’s overall aesthetic.
Points to Consider:
Power output: Tesla has not yet said much about the technology behind the “Solar Roof” product, but historically PV roofing shingles have utilitized less efficient “thin film” solar technologies which would require far more roof space to achieve the same system power when compared with standard, framed PV modules. Even if the end product uses a higher-efficiency PV cell, the fact that the cells will be spread across individual shingles will again cause a decrease in array efficiency since they cannot be packed as tightly onto the roof. Furthermore, these cells and shingles will be installed directly on the roof’s surface which will cause them to operate at a higher temperature. Standard PV panels utilize racking systems which allow for air to flow below the array, thereby cooling the cells. The power output of PV cells is reduced as cell temperature increases, so this cooling effect is very beneficial.
Maintenance: For a PV array to operate efficiently it needs to be capable of moving electrons from all of the PV cells making up the array into the home’s electrical system where they are utilized. This requires thousands of electrical connections. In a standard system most of these connections exist within the solar panels themselves and are protected by the glass face, aluminum edges, and insulating backsheet of the panel. The panel-to-panel connections and those into the house are made with highly durable locking components and wire tested to stand up to harsh, outdoor conditions. In PV shingle products each shingle needs to be electrically connected to the shingle next to it, and for this to remain relatively flat will require those connections to be more fragile than those utilized to interconnect standard PV panels. Also, when one of these fragile connections breaks between two shingles, imagine the task of standing on a roof covered with thousands of shingles and trying to troubleshoot and isolate where that problem is located! The modular nature of a PV system built with standard modules makes it relatively easy to determine where a problem has occurred and, if need be, replace a panel or a section of wiring. Lastly, once this solar shingle roof is installed and functioning the smallest change to the roof to add a vent, chimney, or change the roofline for any reason becomes extremely complex and costly.
Cost: If one were to ignore the maintenance issues with this type of product, it could be argued that cost-competitiveness could be achieved in a new home construction scenario or possibly a re-roof. Many homebuilders, however, will not want to risk the reliability of a new roofing product nor the need establish relationships with new sub-contractors in the conservative roofing installation market. Regardless the solar shingle will most likely cost more than standard roofing plus solar panels combined, will require a more expensive installation procedure, and as noted above, will incur a higher cost of maintenance across the system’s lifetime due to lower overall reliability. When working with roofing companies on Dow solar shingle projects we saw turnkey system costs that were over 400% higher than standard solar PV system costs.
Elon Musk has great vision, is a clever marketer, and certainly has done well to produce a high-quality electric car. With that being said, we will withhold final judgement on the Tesla Solar Roof until technical specifications and pricing are released, but certainly have concerns about Tesla’s ability to get this product to market and find a place for it to be competitive against the increasingly efficient, reliable, and cost-effective mainstream PV market.
Interested in going solar? Speak with our Austin solar panel installation experts at Lighthouse Solar to get started with a free consultation.
How Can Net Metering Benefit You?
Net Metering is a system that allows you to send the excess electricity your system produces back to the electricity grid and receive credits that can then be applied to your utility bill.
Without net metering, a homeowner must pay for the electricity they use at night, when the cloud coverage is too dense, or when snow is covering their panels. With net metering, a solar panel system can be installed that can cover the entirety of a home’s electrical needs because the system does not need to be producing the exact home usage in real time 24 hours a day, 365 days a year. Of course, that kind of real time production would be impossible due to weather and daylight hours.
HOW DO YOU COLLECT CREDITS?
When you install solar system on your home, your panels produce DC (direct current) power, which is sent through an electrical converter called an inverter. An inverter converts the DC power to AC (alternating current) power that can be used by your house. Your house uses the AC power and any excess power is sent out to the grid to power other neighboring homes.
As the excess power leaves your home, your power meter credits you for this power by spinning backwards instead of forwards. These credits are then applied in full retail value as you draw from the grid at night, or in the winter months, when your panels are not producing enough to cover your usage.
HOW IS NET METERING MEASURED?
Net metering is measured over a year. If you have a system that is designed to produce 100% or more of your annual usage, your installer sizes the system to produce an excess in the sunnier months to create a supply of credits to be used in the winter months. If you produce more than your usage during a month, your utility bill will show your credits that roll forward to the next month.
If your solar system produces less than your usage during a month, you pay the difference (after credits are applied) to the utility. At the end of a year, if you have produced more power than you have used, your utility will convert the credits into a refund check at the wholesale rate (which is much lower in value than the retail rate). This is called the Anniversary Month. You may change your Anniversary Month one time with the utility. It makes sense to have your Anniversary Month in the spring because you start collecting credits in the sunnier spring and summer months that can then be applied through the fall and winter. It is more valuable to use your credits for electricity (retail value) than to be refunded for them at the end of the year (wholesale value).
Your electricity bill will never be $0 because you must continue to pay a monthly connection fee to the utility in order to remain connected to the grid. This fee is under $25 and supports the utility infrastructure in your community, which you use for net metering, sending electricity out to the grid and pulling electricity from the grid.
Interested in going solar? Speak with our Austin solar panel installation experts at Lighthouse Solar to get started with a free consultation.