The Qld Solar Battery Rebate – Are Batteries Worth It Now?

As most people have worked out, solar batteries currently make little financial sense. However, since the announcement of a $3000 rebate through the QLD Government Solar Battery rebate, the interest has skyrocketed. A lot of people are under the impression that, with the help of the solar battery rebate, now is the time to install Solar batteries in QLD – this post aims to show it is not. The QLD Government Solar Battery Rebate To […]

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Grid-tied Solar and the Dreaded 120% Rule

The 120% Rule and Your Main Breaker Panel’s Limitations The altE Store started designing and selling grid-tied solar systems way back around the year 2000. Back then, a typical solar system was about 500W. Nowadays as the price of solar...
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Solar Power Installation Requirements: What You Need to Know

Solar power is booming, and it’s not just for upscale homeowners in big mansions anymore. Due to the steady reduction in panel prices, improvement of technology, and streamlining of installation processes, solar is now an option for nearly all homeowners. There are still general factors that homeowners who want to install solar should think about before shopping. To help shine a light on these solar panel installation requirements, we have compiled a short list of them here so homeowners can decide if solar is right for them.  In order to get solar installed, homeowners should have: 1.  Energy Information to Size the Solar The first requirement of the entire solar power installation process is that the homeowner should have some information about their energy usage to give to the solar company that will be supplying them with a quote. This typically comes in the form of an electric bill summarizing the usage of last year’s electicity which is expressed in kilowatts. Also, if there are any energy additions expected in the future such as a pool, more A/C use or electric car, these should be considered in the ultimate estimation of electric usage. The reason this energy information is needed is so the solar system proposal will be sized correctly, based on the energy usage. Typically, when a solar installer creates an installation quote, they design it so it will offset the home’s full yearly usage. So, the amount of solar recommended will be based on how much power the home uses in a year: a full offset. 2. A Place to Put the Solar Panels The second requirement a home must meet for installing solar is that it must have ample space to install the solar -- either on the roof or on land surrounding the home -- in order to efficiently harvest the solar energy. If there isn’t sufficient space to fit all of your solar panel installations on the roof, patio covers or trellises can be used as well. In some rare cases, a combination of both roof and ground installations can be used to meet full energy requirements. When solar is to be placed on the roof, most installers can work with nearly any type of roofing material. Some roof materials are more challenging than others, of course, and may require more labor so there is a difference in cost. Also, if the roof does not have sufficient southerly exposure (the optimal direction for solar), other orientations (east, west) may also be used but will take slightly more panels, since these directions are less productive year-round. When the roof of the home itself cannot be used, sometimes adjoining structures such as a detached garage, patio cover or even a free-standing pergola may be used (depending on what is allowed under local building codes). Similarly, for ground-mounted solar, good installers can also work on a large variety of terrain. If the homeowner has a hill on their property, or any type of side yard with sufficient space, the solar installer can likely make it happen. We have completed installations on all types unexpected terrain, even with boulders present! While there are many benefits of installing solar panels on the roof, our experienced team can adapt the location of your panels and find an area that works best for your property.   3. An Electric Panel with Sufficient Capacity One item that many homeowners don’t consider when beginning the solar installation process is the rated size (capacity) of their electric service panel (containing the home’s circuit breakers). Up through the 1960s and 1970s, standard-sized homes were usually built with electric panels rated at 100A (amps). But for newer (and larger homes), the larger 200-amp panels were standard. Electrical code rules limit the size of a solar energy system that can be connected to a home, depending on the rating of its service panel, so that’s another item that the installer will want to know. If a home needs a larger solar energy system than the service panel will support, there are several ways to accommodate this and may include upgrading the size of the panel from 100A to 200A; (this is also a good idea for older panels that are no longer working well or if replacement parts are difficult to get). Our licensed electricians can easily perform this task either before or along with the solar panel installation. However, as with all work, this will add more time and cost to the project and should be kept in mind during the budgeting stage. 4.  A Way to Connect the Solar All solar arrays have to be electrically connected to the electric service panel to deliver their power. Whether it’s a roof-mount or ground-mounted system, some path to the panel must be provided and this should also be considered when homeowners are pricing and deciding on the panel’s location; i.e., where will the electrical conduit (the pipe containing the electrical wiring) be located, running between the solar panels and the main electric panel. With roof-mounted solar panels, the most aesthetically pleasing arrangement for running the conduit to the electric panel is to go through the attic (so it’s hidden) and then, down the side of the home. This does require more work but the best installers will take the time to do this because it delivers a more attractive finished project that maintains the home’s curb appeal at resale time. With ground-mounted solar panel installation, the conduit has to be buried underground and run back to the electric panel. This means that there needs to be a clear path between these two locations. A soil surface can be easily dug, of course, but cement or paved areas may need to be cut with a saw and re-cemented later, in order to bury the conduit properly. As before, this can be easily accommodated but is an important part of the design and budgeting process.

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Solar Power Installation Process: Everything You Need to Know

A common misconception about getting solar power is that the installation process is long, complicated, and stressful. Sometimes, this feeling comes from a previous experience the homeowner may have had with a home improvement contractor that was particularly challenging. However, the solar panel installation process is a highly-technical and a very precise operation, requiring a great deal of electrical training and certification, compared to other types of home improvement. And while a few installations may present challenges that extend the process, the majority of solar panel installations involve a quick and simple streamlined process that can be easy for both the homeowner and the installer. To illuminate just what goes into a common solar installation, let’s look at all the steps in the process so that homeowners can know just what they’re signing up for when they decide to save money by going solar. 1. Choose a Solar Installer The first step in the solar panel installation process for every homeowner is doing the research on local installers. Over the years, hundreds of solar installers have come and gone in San Diego, and many of them fail due to poor installation practices, pushy sales techniques, misleading contracts, and broken promises. For this reason, homeowners should make sure that the San Diego solar panel company they go with has a good track record: they’re proven to be a successful, dependable company that has been in the business long enough to prove that they provide quality installations and good customer service. The best way for homeowners to identify these dependable local companies is to look on local review sites like Yelp, Google, and specialized sites like Solar Reviews. Make sure that the majority of reviews are positive. If there are negative reviews, check to see what actions the company may have taken to try and resolve the disagreement or misunderstanding. Check to see if the company is a member “in good standing” with the Better Business Bureau. In order to maintain this A+ rating, members are required to resolve any problems or disputes quickly and to the satisfaction of all concerned. Another way to identify high-quality local companies is through local recognition such as awards and media polls. In San Diego, for example, the Union-Tribune Readers “Best of San Diego” Poll is a great way to identify successful local companies that have consistently earned their customers’ trust. 2. Sign a Contract Once the homeowner has decided on a few companies and compared quotes, they sign a contract with the business they believe offers the best value and can be counted on to best meet to their specific needs. The homeowner should be clear on all the terms of the contract before signing anything. The solar panels are going to be on the roof for a long time, so being sure that everything is clear in the beginning is essential for undergoing the process. All home improvement contracts in the state of California allow homeowners to cancel any signed contracts with no penalty as long as cancellation is done within three (3) business days. 3. Site Evaluation The site evaluation ensures that your home meets all of the solar panel installation requirements before starting the construction process. After the contract is signed, the solar installer will come out to the home and do a full evaluation of the home’s roof and electric service panel. This allows them to get exact dimensions and technical details needed for the design and drawing of architectural plans for the installation of the system. The person who comes out to do the assessment is typically an engineer that works for the solar company. During the site evaluation, the engineer will typically assess the condition of the home’s roof to make sure it has no weak spots and that it will adequately support the racking for the solar systems. If the roof has any weak spots or areas where shingles need to be repaired before the solar is installed, the solar company will typically discuss this with the homeowner and can recommend a roofing contractor to do this roof work in conjunction with the solar panel installation. Coordinating the work in this way avoids costly removal of the installed solar systems later on to make the repairs and it also ensures that the overall integrity of the roof surface is maintained by both the solar company and the roofing contractor during the roof solar panel installation process. The engineer will also look at the home’s service panel to make sure it will be compatible with the solar system. If the capacity of the electric service panel and its main circuit breaker (MCB) box (expressed in amps, such as 100A or 125A) cannot accommodate the size of the solar energy system being installed, the engineer will discuss other options, which may include replacing the electric service panel with a larger one (e.g., replacing 100A panel with a 200A panel). Typically, this service can also be provided by the solar installer or, if necessary, a separate licensed electrician who specializes in electric panel upgrades.  4. Design Creation and Review Based on the site evaluation and the final contract, the solar installer will then get to work designing the solar system. Working with available roof space (or ground space if the client wants a solar panel ground mount installation instead) and the size of the system (number of panels to be installed), they will design a system which is aesthetically pleasing, structurally sound and also produces the greatest amount of solar energy. Once the design is completed, it is sent to the homeowner for review and approval. When the homeowner has approved the design, it may also need to be approved by the local Homeowner’s Association or HOA so it’s important for the homeowner to check into this and see what rules apply. Depending on jurisdiction (locality), some HOA’s have fairly strict requirements for solar energy installation, which may include furnishing copies of drawings, etc. for HOA committee. California state law (see “Solar Rights Act”) prohibits HOA’s from turning down approval on solar electric systems for purely aesthetic reasons. However, the law does allow the HOA to set guidelines for uniform installation, which the solar installation company can work with. It is important to know what those regulations are when preparing the initial design. 5. Permit/ Paperwork Filing After the design is completed and approved by all parties, the solar company will then begin seeking all the necessary approvals and electrical permits needed for an installation. Permit requirements vary from city to city, so the solar company should be knowledgeable of all the requirements and restrictions of every jurisdiction within their service area. If the design does not meet local codes and regulations, the permit office will send back the design for corrections. The solar installer should also help the homeowner with completing any financial documents they may need. This may include providing or completing forms dealing with incentives, local solar programs, clean energy financing initiatives, or forms to take the federal solar tax credit. The solar installer should be familiar with all these programs so that they can assist the homeowner in taking advantage of as many of them as possible. 6. Equipment Ordering - Installation Scheduling After all permits are required and paperwork is filled out, the solar installer will then order the equipment necessary for the installation from the distributor. The installer will then schedule the installation time so that the panels can be installed promptly after arrival. During busier months (especially 3rd and 4th Quarter), there may be a longer wait time to complete installation – not just because of the solar installer but also due to high traffic times and possible delays at city permit offices, city inspectors, utility reviewers, and even product shipments. For this reason, deciding to go solar during off-peak can assure that the installation is performed in a swift and timely manner – and may even allow for a product discount too! 7.  The Installation The installation itself usually consists of several steps: Installation crews will start by prepping the roof of the house, moving and adjusting any tiles that may be in the path of the racking. They then will install the electrical wiring needed for the system, most often going through the attic (if there is one). Next, they install the solar racking, the supports of the system, penetrating the roof and building out the system. The solar panels are installed on top of the tracking, and hooked up to the electric panel The solar monitoring is then installed so that when the panels are producing their production is trackable (Note: this is sometimes a separate step, performed by a different technician some days after the actual installation is completed) The whole installation process usually takes 1-3 days depending on the scope of the project. There are obviously missteps that can make it take longer, but typically, an experienced installer can get the entire installation done in a day. Obviously, a ground-mounted solar installation follows a somewhat different process than what was just described for a roof-mounted system. Primarily, this is preceded by a substantial land preparation process (e.g., clearing land or leveling land in order to make a suitable installation spot for the ground mount). Then the electrical conduit (for wiring) must be buried, in a trench, and connected back to the home. Ground-mounted installations, by their nature, are more complicated and dynamic than roof-mounted installations, simply because the terrain is such a big factor in the installation. 8. The Inspection When the installation is complete, the solar installer will arrange for an inspection with the local jurisdiction (city or county), who will send out an inspector to check the work. Someone from the solar installation company will also be there to answer any questions the inspector may have. This inspection typically occurs within a week of the solar installation, and once passed, the local jurisdiction informs the utility company, which gives the homeowner (their customer) “Permission To Operate” or PTO. 9. System Activation Once the utility grants Permission To Operate, the system can be activated (turned on). This is usually as simple as flipping a switch – either on the inverter or in the circuit breaker box. Assuming this happens during daylight hours, this will allow the system to start producing electricity and, in many cases, to start sending power back to the grid for credit. At some point before or after this moment, the solar installer should do a full run-through of the monitoring system and other elements of the system with the homeowner to familiarize them with the way the system works overall and answer any questions. Once activated, present solar energy systems require very little homeowner intervention; however, the newest wireless monitoring that comes with the system can provide a lot of information about the system’s status, along with energy production statistics. Understanding these reports means you don’t have to take the utility’s word for it when they send out a bill and you can independently make sure the system is operating normally. So, there you have it, a step-by-step synopsis of a typical solar installation process. From the beginning to the end of this process, an installation usually takes place in about a month (during off-peak periods) and should never take more than around 3 months (during peak periods). As you can see, there are endless benefits of installing solar panels on the roof of your home. At SunPower by Stellar Solar, our San Diego solar power professionals have streamlined this process so that we can complete high-quality, dependable installations faster than any other company in San Diego. If you’re in a hurry or have special needs due to travel schedules, etc., ask us about our 30-day install.  

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How Solar Panel Financing Rates are Determined

As with most major purchases – such as a car or RV -- many homeowners prefer not to pay cash for such items but instead, choose to borrow money for the purchase and pay it back over time. Depending on the type of financing the homeowner chooses, the interest rate or finance charge can vary greatly, depending on many factors. To help you choose your solar financing wisely, we offer this overview of how solar financing works and the different solar power loan rates available. Before discussing various types of solar financing options, it’s important discuss how the prime solar panel financing rates affect all of these types of loans. The Prime Rate The prime rate is the interest rate that commercial banks charge their preferred customers, or those with the highest credit ratings. It is used to determine borrowing costs on many short-term loan products. Because this is the rate that lenders are paying for their funds, any increases in the prime rate will tend to cause interest rates for other loans to go up as well. At the moment, the prime rate is slowly rising over time. At the time of this writing (October 2018), it is 5.25% but one month ago, it was 5.00%. For this reason, homeowners who are thinking about going solar and financing their purchase are encouraged not to wait! Rather, act now before the cost of borrowing for solar installation goes up. Solar Financing Equals Savings Any time a homeowner borrows money for a major home improvement project and pays the money back over time it’s called a home improvement loan. When it comes to borrowing money for solar installation, the main goal is to make sure the monthly loan payment is lower than the home’s monthly power bill before going solar. The difference between the two payments represents the savings benefit to the homeowner. This is because the power produced by the solar energy system will generally be “offsetting” or replacing the electricity previously purchased from the electric utility. So, for example, if a homeowner can borrow the money for a solar system at $125/month and thereby eliminate a power bill that was previously about $200/month, the homeowner can pocket an easy $75/month in savings! That’s about $1,000 per year or $10,000 in 10 years! To see how this works in practice, let’s look at different ways to finance solar. Types of Solar Panel Loans and Financing Any time a homeowner borrows money for a major home improvement project and pays the money back over time, that is called a home improvement loan. In general, there are two types of home improvement loans: secured and unsecured. A secured home improvement loan is backed by some type of collateral – usually the asset value of the home itself or some other real estate – which tends to reduce the lender’s risk and therefore provides for a lower interest rate. In addition, tax rules say that any interest paid on these types of loans (secured by home value) can be deducted when calculating tax liability, just like a home mortgage. For these reasons, home improvement loans backed by home equity quickly became a preferred type of financing when the solar movement first took off in the early 2000’s. An unsecured home improvement loan, by contrast, is one that is not back by any collateral and for that reason, represents more risk for the lender and for that reason, carries a higher interest rate much like a credit card loan does of 12-18% or more. Home Equity Loans vs. Home Equity Lines of Credit (HELOCs) The main difference between these two types of borrowing is that the home equity loan allows a fixed amount of money to be borrowed and paid back over a fixed period of time with a fixed number of payments (e.g., 5 years or 60 months). The interest rate is based, in part, on these variables along with the value of the collateral (home equity value) and (to a lesser extent) the credit rating of the borrower. By contrast, the home equity line of credit or HELOC is more flexible, allowing funds to be borrowed up to a certain maximum amount, with repayment schedules to be more open-ended. This flexibility allows homeowners to combine several home improvement projects into a single HELOC and also allows borrowing for projects whose costs can change as they move forward. Because home equity loans or HELOCS work in practice as a second mortgage, the interest rate for these is also determined by how much of the home’s equity is being used as collateral for the first mortgage. Put another way, the less net home equity that is available to use as collateral for the home equity loan, the higher the interest rates will generally be.  Solar Financing During the Great Recession Home equity loans and HELOCs were the preferred types of solar financing options up until the financial crisis of 2008 that suddenly made them unavailable since it was not clear what home values actually were. One of the ways the solar industry responded to this lack of financing was to offer solar panel leases, which had long been a popular way for commercial properties and businesses to finance their solar energy systems without owning them. In general, high costs of creating and administering solar leases had prevented them from being offered to the residential market for individual home systems but by standardizing the solar lease offering and using e-documents to record them, it became possible to lower the cost of these instruments and make them very affordable. There are several differences between a solar lease and a solar loan. With a solar lease, the homeowner doesn’t borrow money to purchase the system but instead, pays the leasing company a monthly fee to use the solar equipment to produce the home’s electricity. Normally, the contract for this lease extends across a longer period of time, such as 15 or 20 years. The solar lease is still an attractive instrument for financing solar energy systems for certain audiences and this is discussed more extensively in other articles on our website. The important point to be made here is that for a few years, the solar lease allowed homeowners to continue to go solar – with payments that were substantially less than their former monthly power bills – until the financial markets – and home values – stabilized enough for HELOCS to once again become affordable and popular. Solar Energy Loans Finally Offered As Markets Mature It took some time for the solar industry to come up with a solar loan as attractive as the one now offered by Mosaic through SunPower by Stellar Solar. The reason for this is that solar panels fit into a unique category of assets that was a challenge for lenders to address. In its overall value, the installed solar energy system was in the same range as a car or boat. But unlike these assets, solar panels are attached or considered part of the house. As such, in case the loan failed, the solar panels could not be removed or "repossessed" like a car or boat would be. So, this represented a special type of risk for the lender, making it more like an unsecured "signature loan," or similar to borrowing on a credit card, which demands an interest rate of 18% or more. There was also some initial concern among lenders about what the actual useful lifetime value of solar clean energy was. The main value of the solar panel is its ability to generate electricity, which has a specific cash value, set by the power company. Would solar panels be able to produce a similar amount of power over 5-10 years? How about 15 years? How long could a loan be supported by this asset? Fortunately, solar panels began to demonstrate that they would continue to produce a definite amount of power over time and, by doing so, would offset the cost of electricity from the utility, which has always gone up (not down) over time. Most solar panels carry power warranties stating that solar output will not drop more than 1% per year over 20 years. They also carry a standard 10-year “bumper to bumper” warranty against failure of any type. Moreover, the best solar companies (like SunPower) now guarantee that solar output won’t drop more than .5% over a 25-year lifetime and also carry a 25-year overall warranty. This type of solid solar track record and warranty protection served to reduce risk to the lenders which, in turn, make it easier for lenders to offer longer terms on solar financing. Instead of only 5-year loans (which are common for cars), solar energy loans became available that could be paid back over 10 or 15 years. In recent years, specialized solar loan programs became available from lenders like Mosaic, which recognized the special value and needs of solar homeowners. They are able to offer loans that spread payments across terms of up to 15 years but with affordable interest rates that ensure monthly payments will be considerably less than what homeowners are currently paying for the power bills. And unlike power bill payments which always go up over time, these solar loan payments are fixed across their terms as they are paid back, which means that solar homeowners actually save more and more money as time goes by. The SunPower by Stellar Solar Mosaic Solar Loan Program A common secured loan that we provide at SunPower by Stellar Solar is the Mosaic Solar Loan. The Mosaic loan is one of the most popular solar loan currently available, allowing homeowners to get approved faster and get their solar projects started sooner. The other benefits offered by this solar loan include: 1) no prepayment penalties and 2) little to no loan origination fees. There are currently three different types of Mosaic loans, a 10-year loan with 3.99% interest, a 15 year at 4.99%, and a 20-year loan at 5.49%. These will all help you save money by going solar now! As you can see, solar loan interest rates are determined by a number of factors. Whether the loan is secured or unsecured by collateral, the duration of the loan, the credit score of the borrower and the current prime interest rate -- all come together to determine how much the interest rate on the given loan will be. As with any major purchase, homeowners should be fully aware of all of these factors in order to maximize their savings when they invest in solar energy, because all of these items affect the return on investment. Fortunately, your solar specialist from SunPower by Stellar Solar knows as much about lending as he does about clean energy!  If you are still unsure how much your solar loan interest will be, contact us today for a quote. Our San Diego solar panel company will be able to work up a quote for you quickly and find you financing at the lowest rates possible.  

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How Much Does Solar Panel Installation Cost?

If you’re considering installing solar panels for your home, you have probably asked yourself, “How much does a solar panel installation cost and what are the financing options available?” When researching solar, many homeowners want to try to estimate the cost of their system before getting a formal quote from an installer. While it is understandable that homeowners would want to have this estimation handy when they go into the bidding process with solar providers, the truth is that there are many factors that determine the cost of solar power panel installation and many of these can only be discovered through an actual site visit to the home or by gathering important information about the home.  To help shed some light on what these variables are and how they can impact the cost of solar installation, we’ll discuss quite a few of them in this article. 1. How much power is the home currently using? The primary factor determining solar installation cost is the size of the solar system itself -- the number of solar panels to be installed (usually expressed in kilowatts or kW). Solar panels are rated in watts, just like light bulbs. So, a 360W solar panels will produce more power than one rated for instance at  280W. A system using (10) 360-watt solar panels is rated at (10) X 360W = 3,600 watts or 3.6 kilowatts (kW). Similarly, the size of the solar energy system is driven by how much electricity the home uses in a year (expressed in kilowatt-hours or kWh). The more electricity that is used in a year, the larger the number of panels (or kW of energy) will be needed so that the system will produce more electricity each year (kilowatt-hours) and offset the power being purchased from the utility company. Most homeowners going solar want to offset 100% of their energy bills, so how much power they use will dictate how many panels are needed to produce that power. This can actually vary quite a lot, even within given neighborhoods in San Diego. In general, larger homes tend to use more electricity but square footage alone is not a very good guide. For example, all-electricity homes use much more power than homes with natural gas. Homes with swimming pools and/or air conditioners also use more power as do homes with electric vehicles. In the San Diego area, homes along the coast also tend to use less energy than homes further inland due to the more temperate environment. Homes in east county, by contrast, tend to use more power due to greater dependence on A/C for the hotter summers and greater use of heating in the colder winters (even gas furnaces have fan motors that use electricity). 2.  Is the homeowner adding any energy expenses in the future? When looking to install solar, the smart homeowner will take into account any anticipated home improvements that will increase future electricity usage. For example, this could include pools, hot tubs, adding a family member to the home, new appliances, or even an electric car. In order to recommend the right system size, your solar specialist will want to add this anticipated usage to your proposal and can offer expert help at translating each appliance into its annual energy usage. 3.   How will the homeowner finance the system? One factor in determining the overall cost of solar systems has to do with financing. In general, homeowners who pay cash for their solar systems will benefit from the lowest out-of-pocket cost, because they are only paying for the system. Those who finance their system, by contrast, are paying for the system and paying something for the financing. However, many homeowners don’t have sufficient capital upfront to take the cash option, so we also offer an attractive, low-cost solar loan. The good news is that the amount of the solar power loan payment (including interest) is usually quite a bit less than the monthly electric bill before solar. Some homeowners prefer to lease their system rather than owning it and financing it with a solar loan. With a solar panel lease program, homeowners make a monthly payment to lease the solar system producing the power for their home. The lease usually lasts for a fixed period, such as 20 years. There are several differences between solar power leases and solar loans. The one you end up choosing will depend on your current financial situation and your future goals. You might ask, doesn’t a system cost the same amount, regardless of how I pay for it? The answer is that, just as with car financing, the manufacturer sometimes provides extra incentives to lower or “buy down” the cost of financing the system so it’s important to have some idea upfront about how solar financing works and which form of payment would work best for you. Your solar specialist can also help provide you with some comparative numbers to help answer this question. 4.  Will the homeowner be utilizing the 30% Federal Tax Credit? If the homeowner chooses to own their solar system (not lease it), they are eligible for the 30% Federal Solar Tax Credit, which can greatly reduce the overall cost of their solar system. The Federal Solar Tax Credit, or the Solar Investment Tax Credit, was established by The Energy Policy Act of 2005, and was initially applied to solar panel installations, solar water heating systems and fuel cells. The 30% Tax Credit has been extended several times, but will be phased out, beginning after 2019. The 30% Federal Solar Tax Credit allows homeowners who purchase their solar to deduct 30% of the overall cost of their solar installation from their federal tax bill. (If this tax credit is larger than the total tax bill, homeowners can roll the remaining credit over and use it in successive years.) To illustrate how significant the savings can be from this tax credit, the average residential solar installation currently costs about $25,000; 30% of this amount is $7,500 which means that this much is subtracted from their tax bill, so their net out-of-pocket for the solar energy system is now just $17,500 instead of $25,000! For larger, more costly systems, the tax credit savings is incrementally greater, too. But 2019 is the last year that this full 30% tax credit will be offered, so it’s important to start thinking right now about how to take full advantage of this huge savings opportunity before the rate begins to decrease in 2020 and years that follow. It should be noted that homeowners who decide to lease (rather than own) their systems are not eligible to take the Federal Solar Tax Credit. With a solar lease, the leasing company owns the system, and therefore gets the benefits of the Federal Solar Tax Credit. The leasing company passes some of those savings down to the homeowner in the form of lower monthly payments but this does not change their tax liability as the purchase of a system does.  5. What make and model of solar panels will be installed? As with any product, solar panels vary in quality and efficiency based both on brand and model. In general, solar panels which are more efficient (that is, produce more solar power per square foot) are more expensive than solar panels which are less efficient (and take up more space to produce less power). Of a residential rooftop (compared to a commercial building), solar space is often at a premium due to obstructions (such as vent pipes and the chimney) or shading (from any nearby trees). For this reason, it is often well worth it to pay more for a more efficient panel in order to offset the greatest amount of power from the power company. In addition, the most dependable solar panels from a reputable manufacturer, protected by a longer warranty may also cost slightly more initially – but are well worth it, over the long lifetime of a home or solar energy system. For example, currently rated at 21% efficiency, SunPower solar panels are the most efficient in the industry. Their patented “back contact” copper connection technology is so dependable and so unique that it earned them a recent exemption from the U.S. solar panel tariff as a “breed apart.” And its 25-year warranty is more than twice as long as the industry standard of 10-years’ protection. No wonder this is the only solar panel offered by SunPower by Stellar Solar! 6. Will solar panels be installed on a rooftop or on a separate “ground mounted” rack? While most homes in San Diego have enough roof space to fit the necessary amount of solar, some homeowners with large properties may choose to go with a ground mounted system installation nearby on their property. This added space may also provide the freedom to have more panels compared to a roof-mounted solar panel installation system would offer. Ground mounts, especially if they are installed on a steep hill or rough terrain, do require more work to install and, depending on accessibility, installation costs may vary greatly compared to roof mounted-installations. Nothing is as expensive, as continuing to buy all your power from the power company, however; and your solar specialist can help you determine which type of installation will work best for you. 7. If it will be a rooftop installation, what is the current roofing material? Different roof types require different installation techniques, and this can affect the cost. That’s why the type of roof in a rooftop installation can affect the cost of the installation. In general, standard installation hardware is made for most standard roof types, such as composite shingle, concrete s-tile, flat-tile, concrete flat tile, and clay s-tile. That said, roof areas that require more preparation may cost a bit more due to the added labor and material costs. 8. How many separate areas will be supporting the overall solar array? In order to find space for all of the solar panels, it is sometimes necessary to install them in separated (non-contiguous) sections of the overall roof. This may be necessary due to the California fire code rules (which require certain areas of any roof to remain clear for emergency access). Or it may be necessary due to maximize solar exposure and minimize shade (ideally, solar panels are placed on a south-facing roof for all-day sunshine although east and west will work almost as well). In general, the more individual groupings of solar needed and the greater the distance apart, the more labor and materials will be needed to complete the array, and this does affect the final cost. 9. What is the direction and pitch of the main roof area? As mentioned above, the amount of energy produced by solar panels is affected by which direction they face and the amount of their pitch or tilt. South-facing roof areas with about a 20-degree pitch are best, in terms of overall solar power production. However, flatter roof areas or those facing east or west will also work, but may require slightly more panels to produce the same amount of power. As usual, this is a factor that our solar specialist can work out, based on your overall energy needs. 10. Is there any roof shading? Shading or shadows that fall on the solar panels throughout the day will also affect the power production of a system. Your solar specialist has tools that can actually take a 360-degree photo of the sky above your roof and precisely calculate the impact of shading during each solar day and through different seasons of the year (as the sun’s position in the sky changes). One way to minimize the power losses due to shading is to only use solar panels with micro inverter technology, which means that each solar panel has its own “microinverter” attached which changes its electricity from DC (direct current) into AC (alternating power) which is what the home needs. SunPower offers several models of “AC solar panel” with microinverters. Because each solar panel manages its power individually, shade falling on one panel does not reduce the power throughout the entire group or circuit as it does when panels are connected to a central or “string” inverter on the side of the house. The other way to compensate for any power loss due to shading is to add one or more panels to the array and make up the difference in power production, as is done for non-south-facing rooftop solar panels. As before, your solar specialist will take this into account when recommending the right size and optimum location of your system. So, the next time you ask the question, “How much does a solar panel installation cost?” – please understand if your solar specialist hesitates before answering. He or she is not trying to be uncooperative – just more accurate! We hope we have demonstrated here that there are many factors to be considered in calculating the exact cost of a solar installation. The good news is that solar can be installed in nearly any location, on nearly any building type and can harvest enough solar energy to equal the electricity needs of that home for an entire year! The better news is that your San Diego solar power specialist from SunPower by Stellar Solar is experienced and knowledgeable in all of these factors and can easily give you an easy, no-hassle estimate by asking you several simple questions and, if needed, visiting your home itself. And the best news is that, regardless of what your final installation may cost, it is guaranteed to cost less than what you are paying the power company for the same amount of electricity; in fact, most of our customers break even on their solar investment in just 5 or 6 years – which means the next 20 years or so, they’re enjoying free electricity! As San Diego’s oldest and most experiences solar installation company, the specialists at SunPower by Stellar Solar can answer any questions you may have, and will look forward to providing you with a solar quote that is accurate and customized to your specific situation.  

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Benefits of Installing Solar Panels On Your Roof

At this point, most people know that solar is great for the environment, and presents the clearest path forward for society to wean itself off fossil fuels. While most people understand this, many homeowners are still unaware of the benefits solar presents to the individual. The truth is, while solar is great for a society as a whole, it is equally as beneficial to the average homeowner, who can save a ton of money, add to their home value, and achieve energy independence by installing. Let’s take a look at the benefits of installing solar panels on your roof and how it helps society as a whole. Save Money The primary benefit of installing solar panels is that the homeowner can save money on their utility bills. By installing solar and producing their own power, the homeowner no longer has to rely on the utility company to provide them all their power. This allows them to greatly reduce or fully eliminate their power bills, which, in San Diego, where the electric rates are very high, can result in significant savings. How it Works Before meeting the solar panel installation requirements, it’s important to understand how these solar panel systems work in the first place. When a homeowner installs solar, the system produces power whenever the sun is up, on both sunny days and cloudy days, from sunup to sundown. Naturally, the brighter the light and the more directly it shines on the panel, the more power is produced, normally peaking in the middle of the day when the sun is directly overhead. Also, in summer when the days are twice as long as in winter, about twice as much power is produced each day. This usually results in the production of more power than the house needs during the day and of course, no power at night when the sun has set. Net Metering In order to capture the full value of solar power being produced, homeowners enter into a special arrangement with the utility called “net metering.” This allows solar customers to get credit for any solar power their home can’t use, minute by minute, by “selling it” directly to the utility; i.e., the meter “runs backward” and the bill reflects a negative dollar amount. At night, when no solar power is being produced, the customer takes power from the grid and their meter “runs forward” again so they are charged for the power they are using. Essentially, they are “depositing” power during the day and then “withdrawing” it again at night. Likewise, solar homeowners produce more power and get credit in the summer and then take some of it back in the winter. The important point is that customers only pay their net metering bill once per year and have the whole year to average-out the debits and credits and to greatly reduce if not eliminate their power bills. Time of Use Rates Recently, SDGE introduced a new electric rate structure called “Time of Use.” The idea behind this rate is to create different energy prices, based on WHEN power is being bought or sold, in addition to HOW MUCH power is bought and sold.  This is based on the new reality that, thanks to all the added solar power in California, there is more grid power during the daytime and less when people come home and turn on their A/C and lights, etc. during evening hours, (4-9 pm). In an effort to reduce usage during these hours, the utility is raising the price during this time and lowering it during midday (which used to be the highest price, also called peak period). This change in the rate also affects Net Metering and how much credit that solar homeowners get for the power sent back to the grid. So, during the day, when the solar is producing more power than the home needs, the extra power is credited at a lower rate -- 28.6 cents per kilowatt hour (kWh). Later, from 4-9 pm (peak period), the rate goes up to 53.8 centers per kilowatt hour. This means that more power must be produced during the day to offset the more expensive power used in the evening; the good news is that it’s possible to add extra panels to the system to offset this price differential.  Protection Against Rate Increases The other way that solar can enable the homeowner to save money is by protecting them from utility future price increases. When the homeowner installs solar and is reducing or eliminating their electric bills, they are no longer susceptible to the constantly increasing electricity rates used by the utility. On average, utility rates increase 2-3% a year, but specifically in San Diego, rates are increasing even faster. SDGE recently proposed a 28% rate increase over the next four years, a stunning increase that will cost already cash-strapped homeowners thousands of dollars in utility bills over the coming years. We should note that this protection from the power company rates means that savings tend to compound over time. Due to the unpredictable nature of electric rate increases, homeowners may be able to estimate their savings a year or so in the future, but in successive years rates may increase dramatically, making future electricity costs completely unpredictable. So, this makes it hard to predict exactly how much homeowners will actually save with solar. For this reason, savings based on average rate increases are more like minimum savings that can only go up over time. No matter how much it increases though, the homeowner will rest easy knowing that they will be zeroing out their electricity bills, even into the distant future. The Federal Solar Tax Credit Besides just saving money on energy bills, installing solar and owning it allows the homeowner to be eligible for the 30% Federal Solar Tax Credit. Also known as the Solar ITC, the 30% Solar Tax Credit allows homeowners to subtract 30% of the cost of their solar installation from their federal tax bill. As a typical solar panel installation costs around $20,000, this Solar ITC can potentially save the average homeowner $6,000 on the total out-of-pocket cost! (Think of how many electricity bills THAT would cover!) Important note: if the homeowner doesn’t owe enough in taxes during the year that they get the solar installed, then the credit can be rolled over to the next few years. Power Your Electric Vehicle Another way solar can save homeowners money is by providing extra power to charge their electric vehicle. With the recent rise of the electric vehicle market, many homeowners are installing extra solar to provide the extra electricity their electric vehicle may require. This allows them to spend less money on gas, which can save them a ton of money. As an example, consider the fact that the average car owner drives around 12,000 miles a year. If gas is costing the car owner around $4/gallon and gets 20 MPG, that means that they are spending around $.20/mile or $2,400 a year just on fuel. By installing solar, electric car owners can cut down those costs down to $.05/mile (or less) or only around $600 per year! So, powering their vehicle on solar actually provides greater savings than powering their home on solar. Electric cars have become very affordable and now are in the reach of a much larger proportion of the population. The 2017 Smart Electric Drive, for example, starts at $23,800 before tax credits. Rebates and tax credits are available for electric car purchases in many states as well, which further sweetens the deal for homeowners. Add to Your Home Value In addition to saving money on power bills, solar energy also adds new resale value to the home as homebuyers are more aware that they are buying a home with no power bill for years to come. Solar systems are becoming more popular, having a paid off solar system on a home can greatly increase the chances that the homeowner will sell the home as well. This makes the home more attractive to potential buyers. Also, a homebuyer not paying $200/month for electricity can now afford to make a house payment that’s $200 larger. While the exact added value of solar can vary greatly, studies have recently been done on the subject and have found that the added value can be quite substantial. Researchers at the U.S. Department of Energy’s Lawrence Berkeley National Laboratory, in a partnership with Sandia National Laboratories, recently did a massive study on the effect of solar systems on home resale values. This study looked at more than twice the number of solar-equipped homes compared to earlier studies, evaluating about 22,000 home sales, 4,000 of which had solar installed. This included homes outside of California and is the most encompassing of its kind to date. The research found that home buyers will pay an additional $4 per watt of installed solar, a high price which means that the average system will add around $20,000 in value to the home. Due to the fact that this value is an average, based on information from both housing busts, booms, and recoveries, it should remain consistent or increase in the future. In conclusion, installing solar energy can be very beneficial to individual homeowners by enabling them to save a significant amount of money while adding new value to their home. This benefit can also be spread out into the greater economy, because saving money on their energy bills also increases discretionary spending: money homeowners can spend on other things. So it’s clear that solar is not only good for the planet, but also good for homeowners’ pockets, and the economy as a whole. If you’d like to learn more about solar and how it can benefit you, contact our San Diego solar panel company today to get your free solar quote. You may be surprised at how much you can save - and how reasonable the cost can be.

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