THE ANSWERS
To the "Follow Up" questions...
HOW DOES IT WORK?
What is my optimum amount of system production given my electric company's policy?
That depends on the electric company. Contrary to conventional wisdom, it is not always cost effective to install a system that offsets 100% of your historical usage. This is usually true for Berkeley Electric Coop and Santee Cooper, for instance. Will will work with you (and them) to determine what is best (mathematically) for your situation.
Will the electric company actually pay me if I don't use all the electricity I produce? When?
Again, it depends. Electric companies will reconcile your account daily, monthly or annually and if you have actually produced more electricity that you consumed you will see a credit amount on your statement. Some, like Dominion Energy, will have you sign an IRS form W4 when you apply for interconnection so that if you do have a credit at the end of your annual term, they declare that payment to the IRS. (We have never heard of anyone actually receiving a 1099 Misc from an electric company for their credited amount, though)
HOW MUCH WILL IT COST?
What metric do I use to determine if a proposal is good? (or good for me)
Again, it depends on your situation but, in our opinion, the best metrics are:
1. Cost per watt (pre tax credit) - This is a system size-based calculation. A 8.00 kW system costing $40,000 is $5.00/w
2. Cost per kWh of production per year - The total annual payment amount divided by the expected annual kWh production. (Or in our case, guaranteed annual kWh production).
3. Total out of pocket cost - If you have two proposals with the exact same equipment and price, but different payment plans...Sum of payments of Proposal 1 vs Sum of payments of Proposal 2.
Should I get X number of 300w panels or pay more for Y number of 320s?
This is a case where you would use 2. from above because you would expect the proposal with the higher wattage panels would carry a higher cost per watt. We would show the calculation to see if the added production from the 320s would be justified by the corresponding increase in price.
Should I put panels on the North facing roof section? What about the section that gets a bit of shade?
We feel that most installers will make a blanket statement about these two questions because they either don't understand, or don't want to do, the math. We are not most installers. We will base our answers on the calculations. If installing on these sections of your home are cost effective, that is what we will recommend.
HOW DO THE TAX CREDITS WORK?
I get a refund when I file my taxes. Will I still qualify for the credit?
Most likely, yes. Getting a refund does not mean that you don't owe any taxes, it means that your employer withheld more taxes than you ended up owing. The credit comes from the amount of tax you owe. Look at your 2020 Form 1040. Line 24 is the Total Tax You Owe and Line 33 are the Total Payments You Made. If 33 is greater than 24 you will receive a refund. Line 24 is what gets reduced by the solar tax credit. So, if you owed $10,000 and you paid $12,000, your refund is $2,000. In this case, if you are entitled to a $5,000 solar tax credit, your line 24 goes down to $5,000 and the amount refunded to you will increase to $7,000.
How can I use the tax credit to pay for the system?
Some of our payment plans give you a low monthly payment for the first 18 months in exchange for an optional payment of your tax credit. We are happy to explain the details.
Is the tax credit really expiring?
Yes, but not really. The federal credit of 26% was extended to December 31, 2022 as a result of the federal spending package signed by the President on December 27th 2020. It then steps down to 22% until December 31, 2024. Then to 10% until December 31, 2025. After that, it is zero. Article here.
HOW AM I GOING TO PAY FOR THIS?
How much am I already obligated to pay my electric company?
If you want electricity, you are committed to paying your electric bill for as long as you are in the house. To get an idea of how much, pick a time period and estimated rate of increase of your electric costs. Many solar companies use 6% and that is just not accurate for South Carolina. You may be able to find the actual rates on your electric company's website. Then the formula is ((Your average bill x 12) x 1.%Rate of Increase) * Number of years left in the house.
Are there any fees associated with these payment plans?
Sometimes. Ask the the salesperson/installer to explain it to you.
How will they impact my credit score?
Most applications are a soft pull that will not appear on your credit report. If you are comfortable and choose to proceed with a plan only then will your credit reflect an inquiry.
REPLACE THE SHINGLES?
Why would you choose to remove a solar system to shingle underneath?
We can't answer this because we wouldn't. If your roof is within 5 years of needing to be replaced, we recommend that you do it in conjunction with installing your solar system. If not, ask yourself why you would re-roof a house that does not have solar panels? Two main reasons 1. Storm damage (and your insurance company will pay for the replacement). 2. The roof just looks too old. By installing panels the shingles now are sheltered from damaging wind, rain, hail, and sun. They will last much longer and not leak. They are also invisible. So, we can't think of a reason why someone would want to remove panels to shingle underneath them. Can you?
Don't you have some kind of roof penetration guarantee?
The penetration points of your solar system are guaranteed watertight for 5 years. You will know in about a month, though, because if they are going to leak they will after the first heavy rain. Is it possible? Yes. Does it happen? In our experience, very rarely.
How is the system actually attached to my roof?
A bracket is anchored to your roof with one 8 in. lag bolt directly into the roof support. The modules are then bolted onto the bracket. Manufacturers we use are rated to resist 160mph winds.
WHAT IF I SELL MY HOME?
Will you give us any quantitative information about our system's performance?
Yes. In addition to being able to view your system's performance on a mobile app, you will receive quarterly reports via mail.
My real estate agent swears it will be harder to sell my home, why?
Mostly likely because they are uneducated as to the benefits of a solar home. Do they also swear it will be harder to sell a home with a pool? What about a home with a tankless water heater? Isn't it a real estate agent's job to learn, and be skilled with, the specifics of your home so they can convey that to prospective buyers? Or are you paying them to just show your home to people that found it online? Sorry for the snark, but we assume your decision to pay someone thousands of dollars so sell your home will be based on their skills and experience with solar homes.
Where can I get more information about the solar home market?
Articles from Zillow, CNBC.com, SEIA.org, and energy.gov.
IS THERE MAINTENANCE INVOLVED?
Do other solar companies do that??? Ask them. (No)
Other companies may have a workmanship guarantee - that the system will actually work. But we have not seen any that will guarantee an ANNUAL AMOUNT OF KWH PRODUCTION. This is an important distinction. A salesperson can SAY a proposed system will produce X amount of electricity per year we put our production guarantee IN WRITING.
The other solar companies have said their panels have a 25 year performance guarantee, isn't that the same?
NO! What they are referring to is the manufacturer's LINEAR POWER OUTPUT WARRANTY. Most solar panel manufacturers back their product with a linear performance warranty for 25 to 30 years. The linear performance warranty guarantees the performance of a panel will stay above a specified degradation rate (the decline in output that all solar panels experience). This assures you that the panel will continue to have the capability to produce a specified percentage of power during the warranty period. Key word: capability. Examples.
How will a solar system affect my homeowner's insurance policy?
In our experience, 99% of the time not at all. We have found that most policies have a 25% provision that means the customer is covered for 25% more than their insured value and that will more than cover the replacement cost of their solar system. We ALWAYS recommend that you check with your agent. When you do ask them "HOW is a system covered under my policy?" not "IS a system covered..." Usually, there is already something in the policy that applies.
WHAT HAPPENS IF THE GRID GOES DOWN?
Can't we just plug into the inverter?
There are currently only 2 inverters with an external outlet. They produce minimal power. (Charge a cellphone or small appliance). If you are really concerned with having power during an outage a generator or backup battery is our recommendation.
We get hurricanes here in S.C. What happens if our house gets hit by strong winds?
Building codes require solar mounts to be rated for hurricane force winds. If your house suffers a direct hit, the integrity of your roof will be of greater concern than the solar panels attached to it.
HOW LONG DO THESE THINGS LAST?
How do I get a performance guarantee?
Keep reading our website...then click the "Get a Proposal" button below to begin the process. We are not aware of another company in South Carolina that is willing to guarantee the output of the systems they sell.
Does the manufacturer of the equipment really make a difference?
In our opinion, not really. Here in South Carolina we have never seen an "off-brand" module. We have, however, seen out-of-date or out-of-warranty modules from top manufacturers be pushed by suppliers. We would never engage in that practice, nor would our service provider allow it.
What does Tier 1 mean?
This is a term thrown around by some salespeople to give the impression that their panels are of top-quality. The official origin of the phrase “tier 1” solar panels comes from Bloomberg New Energy Finance. The group first developed the tiered system for PV modules to create a transparent differentiation among the many solar manufacturers, so financial institutions could easily determine which brands were “bankable.” It does not necessarily equate to "quality" as bankruptcies and product defects have occurred with Tier 1 companies.