Smart meters and solar panels are a smart combination

If you have or are installing residential solar panels, you may also want to also have a smart meter.  These devices track the amount of energy that you use from the grid (i.e., non solar electricity), as well as excess solar power you have generated that you do not use, which is fed back into the system.

The meters are called “smart” because they give you credit from the utility company for the power you contribute to the grid – which they end up selling to other customers.  Any electricity you have purchased will have a credit against the bill for the excess solar power generated by your solar panels.

In recent years, smart meters have become “smarter,” allowing homeowners to track periods during which they are drawing on the grid (which can be an incentive to adopt energy saving measures), as well as providing data on the times extra solar electricity is fed into the grid.

While there is no dial on smart meters, as on analog utility devices, people with solar panels can “turn their meters backward,” which is an exciting and rewarding experience.

Some people have erroneously believed that residential solar panels and smart meters are incompatible.  But nothing can be further from the truth!  The two work hand-in-hand helping homeowners save money and reduce carbon emissions.  Other people have unwarranted concerns about EMF radiation or invasions of privacy from use of the meters.

We will prepare a follow-up post to explore the pros and cons of smart meters.

Low-profile solar shingles

While the claim of lowered home values is untrue – its just the opposite, in fact – the appearance of solar panel systems can be improved with solar shingles.  Instead of their bulkier counterparts, new low-profile solar panels can literally blend into your roofing materials.  Also called building integrated photovoltaics, solar power shingles are designed to resemble roofing tiles so that your power generating materials blend right in.

The leader in this new solar technology is Dow Chemical.  For years, we have been hearing about their solar shingles that would soon be available for homeowners.  The promises are finally coming true.

Recently, CNET reported that Dow is now marketing its solar shingles, allowing homeowners to more easily install residential solar panels that have a sleek, unobtrusive appearance.  Solar cells created with Copper indium gallium selenide (CIGS) are printed onto a steel foil backing.

Colorado was chosen as the testing ground for the new technology, with Dow selling solar shingles in January 2012.  Following the initial roll-out in Colorado, the company will move to California, and then Texas.  Eventually, you will be able to find the low-profile solar panels in 12 states over the next 18 months.

Save Money on Solar Panels

Here’s how you can afford going solar this year:

1.  Lease Solar Panels

Instead of owning the solar array yourself, you enter into a contract with a solar company that will install, own and maintain the installation on your rooftop.  When you lease solar panels, you only pay a fixed monthly cost for the electricity generated by the panels.  Not only is the amount less than what you would otherwise pay your utility company, but it is green energy (help save the environment) and you guard against utility rate hikes during the life of your lease (20-30 years).

2.  Negotiate a Group Discount

We’ve blogged about solar panel group buying services such as those provided by One Block Off the Grid (1BOG).  Enter your zipcode at the website and they will let you know if other homeowners in your area are also considering going solar.  Then, 1BOG will negotiate a group discount for all those interested, which can save you 20% off retail.

3.  Look into Financing for Solar Panels

Solar panels are considered to be a good investment, not only by homeowners, but also by various contractors, financial institutions and banks that offer financing for solar arrays and home equity loans for energy efficiency projects, at discounted interest rates.

4.  Tax Credits and Incentives

This one is practically a no-brainer.  Solar tax credits, rebates and incentives are offered in every state, as well as the federal government.  The federal tax credit allows up to 30% of solar panel installation costs.  Coupled with state or local rebates, you can save as much as 80% off the cost of solar power.

5.  Solar Renewable Energy Credit

Most states in the U.S. allow homeowners to add onto the power bill savings they enjoy each month with solar panels through Solar Renewable Energy Credits (SREC).  The program works by giving financial credit for each megawatt-hour of electricity generated by the owner’s residential solar power system.  Depending on the individual state’s program, SRECs are basically a financial instrument, sold to utilities or solar energy markets.  People with home solar panels can expect credits of $200-700 a year, which is a nice bonus to lower power bills!

Solar panels on apartment buildings

Solar panels on low-income housing provide a win-win for residents and other people in the local economy.

Here in the Central Oregon region in which I live, $900,000 in federal stimulus funds is helping fund solar power systems for several low-income housing apartment complexes.  The Energy Trust of Oregon is also committing funds toward the projects.

The Oregon Housing and Community Services Department is the agency through which federal funding is passed to local agencies to fund experimental solar panels, energy monitoring systems and high efficiency HVAC systems.

Not only will the solar panels help people save on their monthly electricity bill, but the project will provide much needed jobs for installers.  In Madras, Oregon – a community near the Warm Springs Indian Reservation, solar panels will be installed at Madras Townhomes.  In addition, residents at Healy Heights apartments in Bend, Oregon will soon enjoy free solar electricity generated by nine solar arrays installed on the complex’s rooftop.  The solar panels will generate approximately 170,000 kilowatt hours (kWh) annually, saving each resident about $250 per year.

It goes without saying that the residents of low-income housing would not otherwise be able to afford residential solar panels for themselves. By funding solar panels for low-income housing residents, the money saved on energy bills can be put toward food or warm clothing, instead.

The solar panels in low-income housing in Central Oregon are being installed by E2 Solar.

Installing home solar panels

For homeowners considering installing solar panels, there are 5 things you should know about residential solar.  As more and more people decide to switch to renewable energy options like solar power, keep these considerations in mind:

1.  You may be eligible for group solar discounts.  Before you enter into a contract to install home solar panels, check out sites like One Block Off the Grid, which may be able to secure a group discount for you and other homeowners in your neighborhood or region.

2.  Residential solar panels improve the value of your home.  Despite concerns about the initial investment associated with solar panels, you can recoup the costs both in lower energy bills and an increase in $20 of home equity for every $1 you save in annual electricity bills.

3. A solar home is more affordable today than two years ago.  Solar panel prices have fallen dramatically in recent years.  Experts predict that the costs will continue to decline as we approach grid parity – the point at which solar power is as affordable as coal.

4.  Solar tax incentives and rebates may be ending soon.  In just a few years, if not earlier, federal solar incentives and rebates that allow you to save 30% may end in the U.S.  If you are thinking about solar power, now is the time!  Solar rebates and tax incentives will not last forever.

5.  Low profile solar panels via solar shingles help minimize aesthetic impacts.  If you would like to install solar panels but are worried about the impact on the appearance of your home, solar power shingles may be your answer.  They look like regular asphalt shingles, but generate clean solar electricity like their bulky photovoltaic (PV) panel counterparts!

Residential solar is becoming mainstream as more homeowners realize the savings they can recoup by going solar.

If you are considering making the switch, what considerations are on your mind?

The cost of residential solar panels is dropping

The cost of residential solar panels is dropping – still – which is great news for homeowners looking to go solar.  The effect of falling solar prices is that the number of solar power installations are predicted to grow by over 15% per year.  Overall, the cost of solar panels has fallen almost 20% as of August 2011.

While homeowners enjoy lower solar panel prices, solar manufacturers are looking at flat profits and price wars with competitors.  Even a difference of a few pennies per watt will make a difference among the competition.

Why the dramatic decrease in solar prices?  Some answers are offered in this video:

As the cost of residential solar panels is dropping, interest in solar leasing is also gaining traction in states where people might not ordinarily consider solar power.  Instead of purchasing, homeowners can enter a contract to lease solar panels via a monthly fee that is lower than their current electricity bill.  The fee is set for the duration of the solar lease, which means no rate increases for a period of 20 or 30 years!  Alternatively, homeowners may consider a power purchase agreement (PPA) in which solar power is generated off-site and sold to customers at a cost lower than grid-based electricity.

With solar panel prices falling, homeowners can now expect to pay between $15,000 to $30,000 for a complete rooftop solar power array, including installation.  Fortunately, the retail cost can be slashed in half (or more) with generous federal, state and local rebates and tax incentives.

Isn’t it time you took advantage of falling solar panel prices?

Leasing Solar Panels

For people that want to switch to solar power, the cost is probably one of the biggest hurdles to cross.  Purchasing a solar panel array is expensive, and then you also have to worry about maintenance.  However, if you have wondered if you should lease solar panels, that might be your answer.

Leasing solar panels is one of several ways that can help homeowners and small business owners finance solar power. When you enter into a solar power lease, you don’t own the system, but the terms of the lease agreement could save you significant funds that can help you with your monthly budget.

Consider this list before deciding whether you should lease solar panels

• What are your monthly electricity bills?
• What would the monthly payments be (under a lease or a loan)?
• Make sure that the payments are less than your average electricity bills
• Do you have equity in your home?
• Are you planning on staying in your home for at least the next 12-24 months?
• Would you prefer maintenance or repair of the solar panels to be done by professionals, or yourself?
• How much liquidity do you have (available cash?)
• What is your credit score? (should be at least 640)

Before you enter into a solar lease, check with the Better Business Bureau to make sure that the company with which you are dealing is reputable. Review the official website and make a call to your local Chamber of Commerce to gather information.

Remember that, when you enter a solar panel lease, it is a binding contract. Both sides to the agreement must fulfill their promises, or risk facing the other side in court. Be sure to review every provision in the agreement carefully. Given the value of solar panels, you may want to consider retaining a lawyer to help you make sure that all potential concerns are addressed and there are no overly restrictive terms.

Consider these terms for a solar panel lease:

1. Lease term: How long will you be leasing the panels (usually at least 5 years)
2. Lease payments: How much will you pay, how often? Is there an escalation clause that gives the solar company the right to raise the rent?
3. Early termination: Do you have the right to terminate the lease before the end of the term without penalty? If there is a penalty, how much?
4. Lease renewal: Can you renew the lease? How? Under what terms?
5. Maintenance of the solar panels: This should be the solar company’s responsibility. Contact information should be spelled out specifically. Ideally, there should be a time stated within which a response must be made in case of damage or failure.
6. Insurance: This should be the solar company’s responsibility – to insure the solar panels.
7. End of lease: What happens when the term is over? Removal of the panels, or will you as a consumer have the right to purchase the panels at a reduced cost? How will that cost be determined?

Stealing solar panels can be stopped!

Unfortunately, with the growing cost of electricity and natural gas and the expense of alternative energy sources, stealing solar panels has become more common.  This has occurred as people are more aware of the value of solar panels and are looking for cheap (free?) ways to generate electricity.  Oftentimes the criminals simply re-sell the stolen solar panels on eBay or Craigslist.

Prevent Solar Panel Theft

Yet, there are ways to stop solar panel theft that do not entail an expensive home security monitoring system or elaborate fencing.

Bryce Fasteners is a new company that uses a unique key-entry lock to fasten residential solar panels to the roof.  These tamper-proof fasteners are customized, meaning that regular tools cannot uninstall the screws, nuts and bolts.  You’ll have to special order the drivers from the manufacturer in order to put the panels on or off.

In short, it will be hard to steal solar panels quickly and without a lot of effort if Bryce Fasteners are used to secure the installations to the roof.

Homeowners and professional solar installers should consider the Bryce Fasteners to prevent solar panel stealing.  If it is too tough to accomplish, these criminals would perhaps abandon the effort!

How solar affects the real estate market

Is there a trick to selling your home faster and for more money?

The recession of the past few years has definitely taken a bite out of home values, but residential solar panels can positively affect how fast you can sell your home, and what you might get in an asking price.

Admittedly, some consumers are put off by the cost of solar panels, but in addition to helping you save on your electricity bills, home solar power boosts home equity.  In a 1998 study by ICF Consulting (“Evidence of Rational Market Valuations for Home Energy Efficiency,” www.icfi.com/Markets/Community_Development/doc_files/apj1098.pdf) it was determined that for every $1 you save on electricity by installing residential solar panels, property value increases by about  $21.  If you pocket a $500 annual saving after installing solar, you can expect your home to be worth over $10,000 more.

In addition, a study by the National Renewable Energy Lab (NREL) confirmed that homes with solar power systems sell about 20% faster and for 17% more, based on a comparison with equivalent non-solar homes across several California subdivisions.

The NREL study analyzed information from a San Diego, California real estate developer.  According to a related post:

In a new residential subdivision, half of the homes were built with PV solar panels and solar hot water systems, while the other half didn’t include the solar features.  The 257 homes with residential solar panels sold within a year of going on the market – about two years faster than expected.  Perhaps even more impressive is the fact that the solar homes sold for $100,000-$200,000 more than their listing price (as much a $600,000 for houses were priced in the $380,000 to $500,000 range).

You can review the entire the NREL study (PDF) for more information.  In the meantime, I’ll bet that residential solar panels are sounding like a good investment with a healthy ROI.

Can new federal legislation encourage 10 million solar roofs?

Some estimates show that such legislation could trim as much as $2,500 from the cost of solar panels.  This is the second time the 10 Million Solar Roofs Act has been proposed, following 2010′s failed attempt to get the law passed.

The proposed 10 Million Solar Roofs Act of 2011 would tie into the Obama Administration’s SunShot Initiative.  Appropriations of $50 million each fiscal year from 2012 through 2016 would be invested to develop best practices for solar permitting.

Senator Sanders commented in a press release:

“As we lower the cost of solar energy and increase our use of solar, we can create hundreds of thousands of good-paying manufacturing and installation jobs in this country.  This bill also sets strong targets for American solar energy production, to ensure we compete vigorously with China and Europe for solar energy jobs.”

The need to make solar power more affordable by reducing costs associated with the permitting of solar installations is not only about the environment.  Hundreds of thousands of green solar jobs would be created as well, if demand and use of solar increases nationwide.

The spokesperson of the Solar Energy Industries Association (SEIA), Monique Hanis, commented:

“We applaud the senator’s efforts. He’s been a long-standing supporter of solar. And we look forward to working with this bipartisan group of legislators.  A bill like this could go a long way to make it easier and less expensive to deploy more solar.”

What do you think about the proposed new federal legislation to encourage solar panel installations?