Solar Net-Metering Conflict in Arizona

Written by Chad Becker

The electric utility business is a monopolistic one since there is usually only one provider within each regional market, but government bodies heavily regulate them to protect consumers. These monopolies are on the offensive to protect their territory as alternative energy companies rise to power. Currently, all eyes are on a conflict between an Arizona electric utility provider and proponents of solar energy.

Arizona Public Service (APS), Arizona’s largest utility company, is attacking support for solar net-metering by filing a proposal with the Arizona Corporate Commission (ACC) that would provide homeowners with two crediting options: net-metering and bill credit. Net-metering is the process by which solar panel owners are credited for the surplus energy they generate and send back to the grid. The solar owners can use these credits when their panels are not generating enough electricity to power their homes, like at night. Bill credit is when the electric company pays solar owners for their surplus energy, and they can use these funds to pay for their electricity usage at times when their panels are not generating enough power. APS is trying to change some of the net-metering policies with this filing.

The problem solar owners have with APS’s proposal is that it would decrease the rate that owners receive for their excess energy from about 16 cents/kW-hr. to between 6 and 10 cents/kW-hr. Also, net-meter solar owners would have to pay a fee to use the electric grid. Electric bill savings would decline from 50% to between 30% and 40%.

Recently, two accusatory advertisements have bolstered APS’s attack. APS’s involvement in the advertisements is suspect. Collectively, the ads claim that the current net-metering policy favors solar owners and out-of-state billionaires and that solar owners are paid five times the electric rate for providing power to the grid. They fail to mention the thousands of jobs that solar companies have created, the averted transmission line and generation plant costs from people going solar, and the cleaner air that results from solar’s prospering.

The solar industry needs the incentives already in place to compete with monopolistic utility companies, and it is the responsibility of government bodies to protect this competition’s existence. Situations like the one in Arizona are establishing precedence for solar conflicts. The future of solar is being written as we speak.

Be a part of this future by purchasing your own solar system from Swan Solar. Visit our website for more information, and please consider a free solar consultation and evaluation of your home.

Content derived from “Fight Against Solar Net Metering in Arizona Gets Controversial Support” by Chris Meehan.

Micro-Inverters Trump Central Inverters for Residential Solar Systems

Written by Chad Becker.

What is an inverter? Put simply, it is an electronic device that converts direct current (DC) into alternating current (AC). Inverters are used in solar panel arrays since the panels generate DC electricity while the home and its appliances operate using AC electricity. The inverter is an integral part of a solar system, and they considerably influence the performance of the system.

Historically, the central inverter has been the type used in solar systems. Only recently has there been an improvement. Enter the micro-inverter. In 2008, Enphase Energy developed the first commercially successful micro-inverter. A solar system using micro-inverters has a separate inverter for each panel, whereas a solar system using a central inverter operates using solely that inverter.

The micro-inverter trumps the central inverter in almost every aspect. I summarize these benefits below.

• Separation of Power: One problem with using a central inverter is that the system will only function at the performance of the weakest solar panel, whether this be due to physical defects or environmental conditions such as snow, clouds, and shade. This is because the panels are connected in series to a single inverter and rely on each other’s performance for their own output. Micro-inverters, on the other hand, allow the panels to be less dependent on one another. If any panel is lagging in performance, the other panels will continue to operate at their max potential since they each have their own inverter. Solar systems using micro-inverters have shown a 5-25% increase in power generation.
• Longevity and Expansion: Micro-inverters have longer lifespans since they do not deal with the high power and heat that central inverters do. As such, warranties for micro-inverters are 25 years (around 15 years longer than those for central inverters). Also, micro-inverters allow for system monitoring using a web server so that faults and failures can be avoided and detected per the individual panels. This speeds up the maintenance and repair processes. Using micro-inverters also allows for easy system expansion since each new solar panel has its own inverter. A system running on a central inverter may not have the capacity to service the additional panels, and a larger, more expensive central inverter would have to be purchased.
• Safety: Since micro-inverters do not handle as much power as central inverters do, the solar system is safer to install and manage.
• Noise: Micro-inverters produce substantially less heat than central inverters, so they do not need cooling systems. This makes micro-inverters essentially noiseless.
• Cost: Face value, micro-inverters cost more than central inverters. However, there are additional factors that make micro-inverters financially the better choice. Installing micro-inverters is simpler and takes less time; this results in a 15% reduction in installations costs. Also, the enhanced system performance, increased longevity, and ease of monitoring and repair will save you money in the long run.

It is interesting to note that Kevin Tofel, mentioned in my previous post, “Residential Solar System Considerations,” bought micro-inverters from Enphase Energy. Tofel understood their benefits when making his purchase, such as ease of system repair, inverter replacement, and real-time monitoring capabilities.

Swan Solar offers micro-inverters and the data monitoring software along with them so that you can keep track of your solar system’s performance and ensure you are making the savings you desire. Visit the Swan Solar website for information on our micro-inverters, and please consider a free solar consultation and evaluation of your home.

Content derived from “Micro-Inverters vs. Central Inverters” by Mathias Aarre Maehlum.

Residential Solar System Considerations

Written by Chad Becker

In the article, “One year with solar energy at home: mostly sunny,” Kevin Tofel shares his solar experience and brings to light some things potential solar panel owners should be aware of.

Tofel lives in southeastern Pennsylvania, and after 12 months, his panels have generated 13.8 MW-hrs of electricity while his family has used only 7.59 MW-hrs. Tofel’s solar panels produce more energy than his family consumes. The excess energy is credited on Tofel’s electric bill, and the electric company pays him for any unused credit once per year.

Tofel also mentions a fork in the road on the way to buying a residential solar system. Solar panel owners have the option to remain connected to the electric grid or to completely sever ties. With the former option, the owner derives his/her power from the electric company while the solar panels provide electricity to the grid. The latter option results in complete independence from the grid. In this configuration, the solar panels provide all of the home’s power, and batteries must be used to store surplus energy. The disadvantage to cutting ties with the grid would have been an added 20 percent to Tofel’s up-front costs. However, if there is a power outage on the grid, the independent system will still provide power while the system connected to the grid will not. Before choosing either option, it is important to contemplate how often you expect to lose power.

Solar systems are not cheap, but there are several factors that substantially reduce their cost. After including the federal and state tax incentives, the payments received from generating surplus energy, and the increase is your home’s appreciation due to the solar panels, the cost of a residential solar system becomes much more reasonable. After installation, Tofel’s home increased in value by $30,000, and his break-even point is 7.3 years. For Tofel, the increase in his home’s value offset the amount of time to break even. An additional factor is the increase in electric prices. As electricity becomes more expensive, Tofel will receive more money for his surplus energy. This will shorten the payback period of his solar system.

Tofel is even considering the purchase of an electric vehicle due to his excess energy production. Tofel is using his solar panels to cut his costs on gasoline consumption.

Join Tofel and share in the joy of big savings and going green by visiting Swan Solar’s website for a free solar consultation and evaluation of your home. We have the most efficient solar panels on the market that will cut your costs on electricity usage. Maintain some level of sovereignty, and never pay for your electricity again!

An Optimistic Year for Solar

Written by Chad Becker

The solar industry’s advance looks promising as it rides the wave of its success from 2012, the year the industry grew by an astounding 76%. Although its projected growth for 2013 is slower, installations are at their high point since the first quarter of 2012, and installations are expected to amount to 4.4GW for this year. In the first quarter, 723MW have already been installed, and residential installations are a major player in this achievement.

Even with solar’s increasing popularity among both the residential and commercial sectors, we must understand the future of financing solar energy. To date, there is a 30% federal tax credit that helps pay for a solar system, and states are subsidizing the industry to help it compete with other forms of carbon emitting energy. However, these incentives are depleting and will eventually cause solar prices to rise for the end consumer. International trade also plays a role in determining solar prices. The U.S. has imposed a high tariff on Chinese solar panels in an effort to protect domestic solar panel manufacturers. China’s panels were flooding the market at incredibly low prices, making it extremely difficult for U.S. manufacturers to compete. This tariff will eventually increase the price for solar panels in the U.S., as other manufacturers begin to increase their profit margins.

So what should homeowners and business-owners considering the purchase of a solar system do? BUY NOW! Solar prices are expected to increase in the future, and to acquire the financial savings you desire, it is crucial you make that dive into solar now. Solar is an investment that will make immediate returns, and it is more affordable now than later on. Plus, you will add to the wave of solar’s success for 2013 that will carry into the future. Swan Solar is the company to see about purchasing your own money-saving solar system. We have extensive, long-lasting experience in the industry and in home improvement. Please visit our solar energy website for more information and for a FREE solar consultation and evaluation of your home.

Content derived from “The bright spot for the U.S. solar market in 2013: home roof tops” by Ucilia Wang.

Financing Solar Energy Systems

Written by Chad Becker

In an article entitled, “The Future of Solar Financing,” Adam Lesser questions the extent to which solar companies will control the value chain of the emerging solar industry. The market for solar energy systems has grown large enough for companies to establish niches in various links in this chain, such as manufacturing, installation, and financing. Some companies have even capitalized on solar energy at the junction of these links. Clean Power Finance is one such company that connects large financiers with solar installation companies to aid in creating financial options for solar customers.

The question is, will some companies vertically integrate their business operations to control multiple links? In fact, companies are beginning to, and some have already met with considerable success. A notable example is SolarCity, a company that installs large-scale solar systems for clients in the commercial, education, and military sectors while also handling financing.

Lesser also touches briefly on the importance of solar companies establishing a financing platform, the class of solar panels to be used, as well as the rate of return in order to acquire investors. Potential solar customers hesitate at the large up-front costs of purchasing a solar system, and it is vital that solar companies obtain these investors if they are unable to handle financing themselves.

For anyone considering the purchase of a residential solar system, look no further than to Swan Solar! Swan Solar has over 30 years of experience in the solar industry and has vertically integrated its operations to include installation and financing while also expanding horizontally to provide pool and landscaping services. We have multiple solar financing options to fit your budget, from short to long term loans and leases with $0 down payment and low interest rates. Swan Solar uses SunPower solar panels, the most efficient panels on the market to date, warranted for 25 years!

Please visit our solar energy website for more information, and consider a FREE solar consultation and evaluation for your home. Allow Swan Solar to help you harness the power of the sun and make it work for you!