answers your questions
Why are the quotes I'm getting so expensive?
This is the number one question from most people considering solar. Truth of the matter is that the cost of solar panels and the "balance of system" or "BOS" parts has dropped significantly over the last two years. Material costs alone have dropped from $6/watt to $3-4/watt. From a "DIY" perspective, this means that you can install solar at a material cost of $3000 to $4000 for each 1000 watts of panels. That's just FIVE 200 watt panels. This very same system will be quoted at "installed" pricing between $10,000 and $12,000. There are TWO primary reasons for these high prices. The first reason is that there are lots of "overhead" costs that a dealer must cover: office, inventory, insurance, workman's comp, liability, phones, utilities and staff salaries for Solar designers, installers, electricians, fleet costs and more. Trouble is, a 50% "gross margin" falls short of covering all these costs, and leaves no room for profit. So, the cost must be hiked up to the point where it allows the business to stay in operation. Some companies have higher costs than others and you may find a RANGE of pricing, all very high.
I really want solar, but I can't afford those prices... What are my options?
The state of Ohio has created a network of banks that have the backing of the state Department of Energy to provide low interest loans. That's one option. The other option is to DO IT YOURSELF! There is a wealth of information on the internet that you can use to educate yourself about solar and all the steps and regulations you'll need to follow to install a system meeting all the safety, zoning, and electrical codes and be in compliance with village, town, county and state requirements. You can start by browsing the "Helpful Links" at the top right of each page on this website. Once you have a good grasp of the specifics about solar and how it might fit your needs, you can enlist my services to help assure that you've found the best pricing for your components and that you don't overlook any of the permits, planning and installation details needed to install a SAFE, efficient, and code compliant system! My modest consulting fee generally pays for itself in system cost savings and experiencing no costly or dangerous mistakes during installation!
What about PAYBACK time, REBATES, and GRANTS?
During 2010 an Ohio Department of Energy "Grant" was available that covered 1/3 of the system cost. These grants were VERY quickly exhausted. The "fiscal year" for the grant system runs July to July, and no more grants are being accepted at the present time. The funding for 2011 will likely NOT take place, based on all the feedback I'm hearing from solar industry giants. This leaves THREE ways to "pay off" your solar investment:
1: Until 2016 the Federal Government will refund 30% of your solar system cost on your tax return via form 5695 (residential energy credits)
2: You will reduce your electric bill by the amount of power your solar system produces by way of a "Net metering agreement" with the power company. This reduction in electric bill will continue for the life of the system - at least 25 to 30 years! With the expected RISE in electric rates, your savings will be even greater!
3: For the next 10 years, you can sell the "SRECs" your system produces (Solar Renewable Energy Credits). SRECs are traded in private markets much like the stock market, and are purchased by companies who are MANDATED to purchase a portion of their energy used from "renewable resources" like Solar. This is above and BEYOND the energy savings on your electric bill. Your system will produce about 1 SREC for each 1000 watts of panels you put on your roof. If you have 3000 watts of solar panels installed, you can sell (Through a broker) 3 SRECS per year for as much as $390 PER SREC!!! SRECs are planned to be "phased out" by 2025, so if you want to recoup as much of your system cost as possible as quickly as possible, NOW is the time to plan and install it!!
By reducing your electric bill, getting the tax credit, and selling your SRECs, you can cut the PAYBACK PERIOD for your solar installation to as little as 5 to 7 years, even without the grant money. Since your system will perform almost maintenance free for the next 25 to 30 years, your Return On Investment (ROI) can be substantial, and certainly better than the best stocks, bonds or mutual funds that you can find available today for the budget of the every day average worker making 40 to 75K a year.
So what's THE BOTTOM LINE if I do it myself with your help?
OK, let's assume you are an "average" consumer of electric. Check your electric bill, and on the back should be a summary of the last 12 months of electric power usage. Add each month to come up with a total, say 3,600 Kwh (that's Kilo Watt Hours) for a full year. If you want to provide 50% of that power from solar, here's how you figure it: 1/2 of 3,600 is 1,800. Multiply by 1000 to get watt hours. That's 1,800,000. A conservative average number for "peak sun hours" each day is 4. Multiply 4 X 365 to get 1,460 peak sun hours in one year. Now, divide 1,800,000 by 1,460 and you get 1232.87. That's how many "watts" of solar panels you need. But panels get dirty, sometimes they are in the shade, and there are other "system losses" you need to take into consideration, so to be sure you get what you want, let's say you need 1,400 watts of solar panels. Panels come in different "watt" capacities, so lets specify 220 watt panels, and you need SEVEN 220 watt panels. If you buy just 7 panels, you can expect to pay between $400 and $500 per panel, plus about $200 to have them delivered on a pallet by truck from a supplier. You'll also need a way to convert the DC voltage from each panel into AC power. The simplest and safest way is to use "micro-inverters," one per panel. Each micro-inverter provides 200 watts of 240 Volt AC power. Figure on $200 per micro-inverter plus a little extra for shipping. Next, you need "racking" to support your panels. There are lots of different systems, and to be safe, there are calculations that will need to be done. The "racking" parts will run about $500 plus another $200 for truck freight (the "rails" are 12 feet long and are shipped by truck freight). You'll need some electrical components - a junction box, terminal strip, plastic conduit, a 100 foot roll of 12 gauge exterior romex wire, a 20 amp- 2 pole breaker and possibly an exterior disconnect if your local permitting authorities and electric company want it. That's another $200. If you're not up to electrical work, you will have to hire an electrician to do the wiring and breaker installation to be safe. Figure AT LEAST another $200. So here's the cost breakdown, not counting your own time and effort to study up, do the installation of the racking, micro-inverters, panels and wiring: Solar modules - 7 X $450 = $3150, Module shipping - $200, Micro-inverters 7 X $210 = $1470, Racking materials plus shipping $700, Electrical parts $200, Electrical labor $200. Add that all up and you get $5920 - let's call it $6000 even. A typical quote for a system like this will range from 8 to 12 dollars per watt - that's $11,200 to $16,800!! Keep in mind that you can claim the 30% tax rebate, even if you DIY! Also, you can sell your "SRECs" (Solar renewable energy credits) too! And then there is the savings on your electric bill...
Great, I'm interested - so WHAT WILL YOUR SERVICES COST ME?
My rates are pretty simple. $250 gets you a primary consult. At this point I'll meet with you and carefully go over your desires, expectations and goals. I'll give you an outline of the steps you'll need to take to be in compliance with local codes and jurisdictions, and how to go about filing for permits with your town, village or city. I'll answer any questions you may have about pretty much anything that you're planning. I'll offer some good TIPS about how you can save even more money by planning ahead and being a "wise shopper." If you are well organized, capable and determined, you can take it from there with the knowledge that you've got a SOLID PLAN that won't break any laws and won't burn down your house! If you'd like more "hand holding" and help filing all the paperwork with the proper authorities, and some "oversight" when you're actually installing the system, I offer a $1000 "Full Solar Consulting package." I'll be available by phone, email and in-person as the need comes up to assure you that you're making the right purchases, installing the components correctly, and following safe and proper installation requirements. This $1000 fee also applies to major commercial customers looking for a "hard quote" to do a commercial job. Still quite a bargain compared to the commercial pricing for a system like the one you want, and a small price to pay for peace of mind!!
How do I know you're Legit?
Well, I hope that if you've read this far, I've managed to hold your attention, and you realize the information I've provided is accurate and helpful. But just in case some pictures of my "installs" to date will give you a warm fuzzy feeling, here are a few.
If you click on them with your mouse, they will pop up as big images so you can have a look.
The big 24 panel array is one I helped my buddy Brock install at his Uncle's shop in New Richmond. The small house with 8 panels is my weekend place in the South Central Ohio mountains.
The 6 panel setup is one I did while taking my 1st solar class at Cinci State! I plan on putting a 20 panel array on my Newtown house sometime this year (2011)! With a 3 to 5 year payback (or less!) this is pretty much a no-brainer, but you still need to come up with the full amount "up-front" for at least 90 days until you can pre-sell your SRECs. Then you've got to wait till tax time NEXT year to get the 30% rebate. I hope that you've found these FAQs interesting and educational. If you have a comment, or would just like to talk solar (no charge) visit the "contact" page and leave your name and phone number. I just love this stuff!
Click for Solar Investment Model Spreadsheet!
Click for Spreadsheet Instructions!
I've also built a 60 watt panel for camping from one of those kits on Ebay. If you're considering this, PLEASE contact me, since I can most definitely give you some suggestions about what NOT to do!!
Thanks for visiting my site!
Here's a cool little "solar calculator" I found!
In My Backyard!
I wouldn't trust the numbers, but it will allow you to "fit" array on a satellite photo of your house!
(It doesn't factor in SREC sales or Tax rebate...)