PV System Basics
The basic building block of the photovoltaic (PV) energy system is the solar "cell". A
number of cells are connected together to make the PV "module". A number of modules are
then combined to form a photovoltaic "array" capable of supplying the entire energy needs
of your home or business.
The typical PV system consists of an array of modules connected to an inverter that
changes the direct current (DC) electricity created by the modules to an alternating
current (AC) which then ties into your local utility's electric grid. Optionally, a
battery back-up system can be used for reliable generation of electricity if the
utility grid goes down, protecting your home or business from power outages.
Utility Grid Tie-in, Utility Rules
> What is an Interconnection Agreement?
Interconnecting your PV system to the utility transmission grid will require you to enter
into an Interconnection Agreement with your local utility. Upon approval of an installation
contract with SOLectric for your system, we will assist you by providing the proper PG&E
interconnection forms for your signature.
After the system is installed and inspected by your local building department, there will
be a waiting period before PG&E performs their final inspection of the installation. PG&E
rules prohibit the use of the system during this waiting period. For more information see
PG&E.
Net-Metering
Net metering allows your electricity meter to spin forward when electricity flows into
your building and also backwards when your PV system produces a surplus of electricity
that is not immediately used. Your meter will add up all of those additions and deductions
like a calculator Your excess electricity is "banked" on the utility grid.
You can use an equivalent amount of electricity later without cost to you. All utilities
in the state of California are required to offer owners of PV systems the option of
interconnecting with the electrical power grid on a net-metering basis. See PG&E's web
site on NET METERING.
The Time of Use option (TOU) PG&E billing rate E-6:
Buy low, Sell high:
With a time of use meter you pay less for electricity during off peak hours
7PM to noon than you pay for peak hour electricity from noon to 7PM. This
is because it is more expensive to produce electricity during peak energy
use. With a time of use meter you are more closely paying the true cost of
electricity. Your PV system produces more electricity during the peak energy
use when no one is home, so you will be reducing your bill faster than during
off-peak periods. Call us to evaluate your situation.
There is a modest one-time utility charge for the TOU meter. We will assist you in
applying for the TOU rate.
Site Suitability
> Will my home or business site work with a PV system?
The best orientation for a PV system is a roof facing between south-east,
south or south-west. We will come to your house to measure available solar
access. If a rooftop cannot be used, your PV array can be mounted on a patio
cover, horse barn, pool cabana, pole, on-ground rack or other structure for
maximum power generation. Your photovoltaic modules should have a clear, unobstructed
access to the sun throughout the year to make the best use of your PV system.
The photovoltaic array should be free from shading by nearby trees, chimneys,
buildings, etc.
Shading will reduce the amount of electricity your PV system will produce. When we come
to your site for an evaluation we will establish its suitability. Please contact us via
our Questionnaire.
What does it cost?
Unlike an appliance purchase, each photovoltaic installation is unique. Each site has
conditions that determine equipment choices, configuration, and costs. After a site visit
we will develop a cost estimate for your specific solar energy investment.
Installation for a home with these features:
- Single story home
- A new roof will be installed
- The new roofing will not be clay or cement tiles
Will cost less than a home with these features:
- Multiple story home
- Mounting on existing roofs
- Flat or clay tile roofs
For larger systems above 8kW, the cost per watt will be slightly lower, all other
conditions being the same. Please contact us via our
Questionnaire or call (650) 856-1735.
Rebates
The California State legislature, along with the California Energy Commission (CEC), have
enacted the Emerging Renewables Buy-Down Program, to help reduce, or "buy-down" the up-front
cost a consumer will pay to purchase and install a system utilizing emerging renewable energy
technologies, such as solar photovoltaic. Buy-down amounts are based on the generating
capacity of the system, measured in watts.
The program, currently (as of 9/06) offers a rebate of $2.60 per watt,
or 50% of the purchase price, whichever is less. For example, a 2500 watt
system will receive a rebate of $6,500.00.
The rebates are reduced 20 cents per watt every 6 months. We recommend
contracting now for a system to get the most rebate. The Energy Commission
will review your application for eligibility and send you a Rebate Payment
Claim Form. Your system must be installed within nine (9) months of the confirmation
date for systems that are less than 30 kilowatts (kW).
For more information on the California Emerging Renewables Buy-Down Program, see the
California Energy Commission web site.
Palo Alto and Santa Clara Utility customers receive rebates from their respective
utility departments. We handle applications for those utilities, also.
Call us (650)-856-1735.
Tax Credit
The Federal tax credit of 30% of the net cost of a photovoltaic system, after any other rebates, is capped at $2,000.00 for residences.
The tax credit for investment in business photovoltaic assets is 30% of the
system cost. Please consult your tax advisor for information on how to apply
for the Tax Credit.
Warranty
Manufacturers provide up to 10 years on inverters and up to 25 years on
Photovoltaic modules. We provide a 5-year warranty on CEC form 1038-R3 which
is required to claim the maximum rebate.
Economics
What will it save me? Payback time.
Call us for assistance in using the Estimator: (650)-856-1735.
Building Permits, Insurance
What should I know about permits and codes?
Nothing! SOLectric will obtain all necessary permits for your PV system from the local
city or county building department before installation of your PV system. All SOLectric
PV systems comply with Article 690 of the National Electrical Code that lists requirements
for the design and installation of safe, reliable PV systems.
What about Insurance Requirements?
As part of your interconnection agreement, your utility may specify minimum insurance
requirements. California law, however, does not allow a utility to require the
purchase of additional insurance (California Public Utilities Code 2827-F) A
standard homeowners or business insurance policy may be adequate to meet the utility's
insurance requirements.
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