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619.501.2713
San Diego, California
California Contractor
Lic #877576 C10
FAQ's:
(Frequently Asked Questions)
1.
Why should I go solar?
There
are many reasons to install solar for your home or business. Solar can
help reduce or eliminate your current electric bill, provide energy independence,
and help save the environment. With all of the current rebates and tax
credits available to the consumer, installing solar today has been made
easier than ever.
2.
Why Silverwood Energy?
Silverwood Energy, Inc. is a licensed California contractor. Our crew
has installed over 400 systems throughout Southern California, totaling
over 19
MegaWatts of power. Even our direct competitors have hired us to install
their systems. Speak to us once and our knowledge and expertise will speak
for itself.
3.
How does a photovoltaic system work?
Solar modules are installed either on the roof or on the ground. Sunlight
hits the solar modules and creates DC power. This DC power runs into an
inverter, which converts it to AC power. From there the power runs into
your home or business directly through the Main Service Panel. At any
given time, if the solar is producing more electricity than the home or
business requires, the excess power will run backwards through you meter,
causing it to spin backwards, and be fed into the electrical utility company
grid giving you credit!
Source: British Photovoltaic Association
Net Metering is the agreement between the homeowner and the local Utility Company that allows you to spin the meter backwards. The Net Metering Agreement is for one 12 month period at a time. You can be a net producer or net consumer during this period. At the end of each 12 month period, if your solar energy system has produced more power than you consumed, you have no electric bill. If the system did not produce enough power, you will need to pay the difference. It is important to remember that if your system overproduces, the local Utility Company will not pay you cash for the extra production. You simply lose it at the end of the yearly cycle and start at zero again for the next year.
5.
What size system do I need?
If
you install solar in any capacity for your home of business, you will
enter into a Net Metering Agreement with you local Utility Company. Instead
of billing you once a month, they will change you to a yearly billing
cycle. Since this is done on a yearly basis, you will need to acquire
a 12 month history of your power usage in order to determine your average
use in kWh/day over the course of one year. You then take this number
and divide it by the number of peak sunshine hours that you are expected
to get at your particular location, and factor in any efficiency losses
for shading, orientation, or pitch. For Example: If your usage is 20kWh/day
and you get 5.2 hours of peak sunshine, you divide 20/5.2 = 3.846 kW system
(AC Rated). If you had a 5% efficiency loss because you roof was not at
an optimal direction or pitch, your final system size would be (3.846
x 1.05) or a 4.038 kW (AC Rated) to eliminate your entire electric bill.
Let Silverwood Energy, Inc. help you determine the system size.
6. What is the difference between DC and AC?
A lot of companies rate their systems in terms of DC. They do this so that you feel that you are getting a larger system for your money. The reason that you should view everything in AC terms is because AC is real production after you factor in conversion losses, heat losses, etc. The other reason is that the CEC rebate is based on the AC rating of a system, not the DC rating. For example: a 2.970 kW system (DC Rated) is the same as a 2.431 system (AC Rated). Production estimates and the rebates are based on the AC rating.
7. Does
my system need batteries?
With Net Metering you do not need any batteries. Most of today's system
are grid-tied, which means that they are connected directly to the local
Utility power lines. You would only need batteries for stand alone applications
or if you wanted emergency power if there was a power outage. If emergency
backup power is a concern, Silverwood would also recommend that you examine
the GenCore Hydrogen Fuel Cell that we sell to meet this need.
8.
Are there any rebates or tax incentives to offset the cost?
Residential Rebates and Tax Incentives
Residential
installations now fall under the EPBB Incentive of the CSI with a current
rebate level at a maximum of $1.90 a watt. The final rebate level is dependent
upon the EPBB Design Factor, determined by system specifics such as location,
orientation, and shading. The EPBB Design Factor was instituted to encourage
responsible solar installation practices. The EPBB Incentive is a one
time, up front rebate paid upon system installation. The current rebate
level will decrease once pre-set target levels of residential solar have
been met. Each utility, such as SDG&E, SCE, or PG&E, have an individual
target level.
In order to qualify for the CSI rebate program, the property must be located within the service territory of SDG&E, SCE, or PG&E. Local municipalities that are not part of the CSI rebate program may provide their own solar incentive program.
In addition
to the CSI rebate, changes in the Federal tax law provide homeowners with
an unlimited 30% Federal Solar Tax Credit on the purchase & installation
of a new solar electric system. Previously the tax credit was capped at
$2,000.00. If the tax credit is calculated on the gross cost of the system,
there may be a tax liability on the CSI rebate received. Consult your
tax professional for the best strategy.
If you operate a home based business and claim all or part of your home
as business use, you may qualify for 5 year Accelerated Depreciation.
Please consult with your licensed CPA.
Commercial Rebates and Tax Incentives
Commercial installations, under 50 kW in size, now fall under the EPBB Incentive of the CSI with a current rebate level at a maximum of $1.55 a watt. The final rebate level is dependent upon the EPBB Design Factor, determined by system specifics such as location, orientation, and shading. The EPBB Design Factor was instituted to encourage responsible solar installation practices. The EPBB Incentive is a one time, up front rebate paid upon system installation. The current rebate level will decrease once pre-set target levels of commercial solar have been met. Each utility, such as SDG&E, SCE, or PG&E, have an individual target level. Commercial systems under 100 kW in size can opt into the PBI Incentive of the CSI.
Commercial installations over 50 kW in size up to 1 MW, fall under the Performance Based Incentive (PBI) of the CSI. The PBI Incentive is based on the system's output in kWh. As opposed to an up front rebate, CSI monthly payments are based on total system production. The current payment rate is $0.22 per kWh for 5 years. This payment rate is also scheduled to decrease over time when certain pre-set target levels of commercial solar have been installed. Unlike commerical systems under 50 kW in size, systems over 50 kW in size cannot opt into the EPBB Incentive.
Government and Non-Profit installations under 50 kW which cannot take advantage of tax credits, will qualify for an increased rebate level of a maximum of $2.30 a watt for the EPBB Incentive. Systems over 50 kW will receive a PBI Incentive payment rate of $0.32 per kWh for 5 years.
In order to qualify for the CSI rebate program, the property must be located within the service territory of SDG&E, SCE, or PG&E. Local municipalities that are not part of the CSI rebate program may provide their own solar incentive program.
In addition to the CSI rebates, all commercial systems will qualify for an additional 30% Federal Tax Credit (no limit) and 5 year Accelerated Depreciation.
9.
How much does solar cost?
Depending on your location and the type of installation that you are looking
for, the price will vary. Typically, it is between $7.50/watt to $8.50/watt.
10.
What is the typical payback period?
Each system will have a different payback period. Typically
smaller systems have a payback period of approximately 15 years and larger
systems approximately 10 years. Commercial systems usually have a payback
period of closer to or under 10 years due to the additional tax credits
available.
Besides the economic payback, the system will also have an environmental payback. Along with each proposal, we will send you an environmental impact summary that shows you how your system is helping to save the environment.
11. Is
there any system maintenance required?
Since there are no moving parts, the system is basically maintenance free.
If it does not rain in your area that often, you may only need to wash
the modules to remove dust and debris every now and then.
12. What
are the warranties and life expectancy of solar?
Most of the main solar panel manufacturers offer a 20 to 25 year module
warranty. The inverter manufacturers offer a 10 year warranty. Silverwood
Energy, Inc. offers a 10 year warranty on the entire installation. The
system will have an expected life span of approximately 30 to 40 years.
13. What type of roof do I need?
Most solar installations are installed on the roof of the home or business. Silverwood Energy, Inc. can do an installation on any type of roofing: composite shingle, wood shake, flat tile, Spanish tile, or ceramic tile. If you do not want the solar installed on the roof, you can also utilize a ground mount. Most homeowners who have a lot of available unshaded acreage choose this type of installation. Besides the roof and ground, you can also install the modules on a car port, garage, patio cover, or on poles. A south facing roof or ground area without shading is ideal, but even west facing roofs or hillsides can work with minimal efficiency losses.
14.
Will solar increase my property value?
Yes. According to real estate appraisers, for every $1 of electricity
that you offset through solar, it will increase the value of you home
by $20. This means that your home would increase in value immediately
by about the total net cost of the system after rebates.
15.
Will solar increase my property taxes?
No. Even though your property will increase in value, there is legislation
(Section 73 of California's Revenue and Taxation Code) that prevents your
property taxes from increasing.
16.
Who handles the permits and rebate paperwork?
All solar electric systems must be permitted through the local
building department. Silverwood Energy, Inc. will handle every aspect
of the installation from the filing of the rebate paperwork, to the permits,
to the final inspections, and Net Metering Approval. Whether you are doing
a turnkey installation with Silverwood Energy, Inc. or an installation
only project - we do it all!