What will our payback be? What
assumptions do you use in that payback analysis?
The payback analysis is specific to each job. There are complexities with
the roof, with structural details, with site analysis, with electrical
interface, with permitting jurisdictions and so forth. We must look at
all those in order to come to a final proposal. However, we can often
demonstrate a payback of 5 to 7 years, equivalent to an internal rate
of return of 15 to 20 percent. Given the interest rate climate and the
other benefits of the system, its long life, its public relations
value and its environmental benefit, this is an excellent investment!
We need to analyze your rate structure
to be able to be intelligent about the payback analysis. We also look
at the peak demands that we will be reducing. We factor in the effect
of the CPUC rebates, state tax credits, federal tax credits, the 5year
accelerated depreciation allowance and the cost of financing.
Our business has critical computer
and other systems that must remain running 24/7. Is solar power
reliable?
Solar can be combined with large Uninterruptible Power Source
(UPS) systems, capable of providing emergency power when you need it.
The solar energy produced is first used to keep the batteries topped
off. Excess power is put back on the grid, as a credit to your usage.
Because we only add a solar capability, we subtract nothing from your
existing connection to the grid. Backup systems can also have
auto-start generators, so that they will come on automatically if the
batteries are nearing a state of discharge.
How long does a project take? And
will business be disrupted during this time?
The time a project will take is directly proportional to its size
and complexity. The building permitting and CPUC approval process can
take several months before any work is physically done. Then,
depending on the size of the project, it may take from several weeks
to a month or more. Operations should not be unduly disrupted. For the
most part we will be working away from the primary activities of the
company, on the roof or in a remote area of the property. There may be
minimal disruption when we finally have to interface the solar system
to the main power, but this is usually done at night.
Will the system make noise?
Different technologies make different amounts of noise. The larger
the system the better chance of noise or hum from the inverter or
transformer and cooling fan noise.
What kind of construction work can I
expect?
A simple grid-tie installation will involve nothing more than
bringing conduit from where the PV panels are mounted to the area near
your existing power meter (typically), where the inverter, an AC and a
DC disconnect are placed
Other construction considerations might
include questions about where and how the panels are to be mounted. If
on the roof, you might look hard at the integrity of the roof. The PV
system lasts a long time. Maybe now would be a good time to replace
that roof, even if it still has a bit of life left in it. It's always
best to do a PV system in conjunction with a re-roof.
Proper stand-offs can be mounted to the
roof deck when the old roof is off. The roofer can then place flashing
around those standoffs as he completes the re-roof. Later we can come
along and bolt the racks that hold the PV panels right to those jacks
and then the rest of the PV panels to that.
We also offer ballasted non piercing
roof mount systems and Thin film integrated solar systems which
combine a roof and a solar array.
Can we sell my excess power back to
the utility company?
Many people think you will get a check from the power company for
any excess power you produce. It's not quite that easy. You will get a
credit for power you generate at wholesale rates in excess of your
usage. Over a period of time, generally once a year, your utility will
apply credits against usage and arrive at a net usage. The utility
will send you statements every month, letting you know whether you are
piling up credits or using power. However, they "true up"
the account on the anniversary of the day the system was placed in
operation. At that time, you'll get a bill for your net usage over the
year. If you have generated excess power, you'll lose the credit and
start all over again at zero. We like to size systems so they produce
a little less than your anticipated usage. That's why we ask you to
call the power company to find out what your kilowatt-hour usage was
for the past 12 months.
Will the meter really turn backwards?
Yes. Most meters are built to be bi-directional. However, upon
inspecting your system for parallel operation to theirs, the utility
company will change out your existing meter with a new one.
What kind of maintenance is required?
Periodic cleaning of the system and routine maintenance inspections.
PPA financiers require a maintenance and operations contract when the
system is installed to maintain and optimize the output and protect
their investment.
What other paperwork is there, and do
you handle that too?
If you are in California, we will apply for a Buy-down reservation
in your behalf from the California Energy Commission or the utility
company, which administers funds made available from the Public
Utilities Commission. We will also handle the paperwork necessary to
connect you to the utility. They have paperwork, and lots of it!
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