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Frequently Asked Questions
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Q. Isn't Solar Electricity Expensive ? A. Since the passage of Colorado's amendment 37 (requiring the state's major utilities to provide 10% of all their electricity by 2015 from renewable sources and that 4% of that 10% had to be from PV) and the 2005 Energy Policy Act providing among other incentives a tax credit of up to $2000 on pv systems, the cost of a 1-10 kW system has decreased by up to 65%. For example a 3 kW system in the Xcel service area would cost approximately $25,000 but after utility rebates and tax credit, the cost to the end user would be approximately $8500. Today coal fired electricity from Xcel costs about $.09-.1/kWh for a homeowner. The above system, spread over 25 years costs $.088 per kWh. Electricity costs are also likely to rise during that time, further improving your rate of return, estimated to be 12% annually, making solar one of the best investments commonly available. For an excellent quick way to evaluate pv system prices, system sizes and rates of return and payback period (7-15 years for this system depending on whether or not you factor in the system's potential contribution to home appreciation) click here. For more in depth discussion that is written for Californians but is broadly useful, click here : solar_payback.pdf Q. I Already Have Utility Power - So Why Should I Choose Solar Electricity? A. Solar electric systems allow you to lock in your electric rates at today's prices. With conventional fossil fuel likely to become more expensive in the future, purchasing a solar electric system today is a smart economic move. Solar electric systems with battery back up also offer greater self-sufficiency and all are far better for the environment than conventional power. Q. What Is a Line-Tied Solar Electric System? A. "Line-tied" means that your system is connected to the utility lines or the grid. A line-tied solar electric system is designed to meet all or a portion of your daily energy needs. This connection enables you to get the balance of your electricity from your local utility; it also allows you to send excess solar electricity back to your power company and be credited against any purchases of electricity or gas during that calendar year. Q. What incentives are available in Colorado? A. Utility rebates cover up to $4.50 per watt for those in Xcel or Aquila territory. Colorado Springs Utility customers receive $4 per wat. System costs average $8.00-$10 per Watt. Many rural electricity providers do not offer rebates. Click here for a map of REA's . A federal tax credit is available for systems installed in 2006 and 2007 of up to $2000. There is a 10% federal tax credit for commercial installations. For the latest information pertaining to rebates and incentives in each state, visit www.dsire.org. Q. How Do Line-Tied Solar Electric Systems Work? A. Line-tied solar electric systems use photovoltaic (PV) technology to convert sunlight into electricity during daylight hours. If your home or office requires more electricity than can be provided by your system, the balance will automatically be provided through your utility connection. EcoBuild's Sun systems come with a 2-5 year service agreement. Q. Can I Use a Line-tied Solar Electric System as a Back-up Source During a Utility Power Outage? A. A line-tied solar electric system will continue to provide electricity to your home during an outage if it has a bimodal inverter and batteries. EcoBuild's solar electric battery back-up systems are specially designed to provide power to such critical loads as a refrigerator, furnace, well pump, lights, security system and computers. In the case of a power outage, the back up system will automatically provide power to your critical loads, without you having to even push a button. Q. Does My System Have to Include Batteries? A. No. Batteries are only essential if you want to have 'backup' power in the case of a utility outage. Otherwise, your Line-tied PV system will send any excess generated electricity back to the utility, thus using the utility grid (rather than batteries) as the storage medium. Q. Can I Sell Excess Solar Electricity Back to My Utility? A. Some electric utilities in Colorado will now give retail credit to solar customers who feed excess electricity back to the power grid. Known as "net metering," this utility policy is implemented by letting your electric meter spin backwards. Q. How Do I Know What Size System I Need? A. The best indicator for sizing a solar electric system is your historical electrical usage, or the number of kilowatt-hours (kWh) you consume each month. It is especially important to determine an annual average of your kWh usage, because many families experience seasonal spikes in usage. This average gives you a starting point for comparing the energy output of various systems. Contact your local utility to request a detailed summary of your recent monthly electric usage. To estimate how much electricity different system sizes might produce, see the National Renewable Energy Laboratory's calculator . To use the calculator we suggest:
Q. What Happens If the Sun Doesn't Shine? Your line-tied solar electric system will continue to produce electricity during cloudy weather, although the total amount will be reduced. Power will automatically be provided through your utility connection at night or during inclement weather. Q. What is Photovoltaic Technology? A. Solar electric systems use a technology called photovoltaics or PV that converts sunlight into electricity. PV cells are made of semiconductor material, usually silicon. They are silent and non-polluting, utilize a source of energy that renews itself, and require no special training to operate. Q. How Long Has PV Been Around? A. PV has been used as the primary source of electricity on satellites since the 1950s. Since the 1970s, PV has been used more and more for "earth-based" applications as costs declined tenfold. Today, the PV industry is a billion dollar per year industry with primary markets in developing countries. In many countries, PV is the most reliable and least cost form of electricity available. |
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