Solar Co-op FAQs
Solar Basics
How do solar panels work?
Photovoltaic cells convert the energy from the sun into electricity and are arranged
together to form solar panels. The inverters then convert the electricity generated by the
panels from direct current (DC) to alternating current (AC), in order to power your
house.
Residential solar systems are almost always connected to the power grid. When the sun
is shining and you are not using too much power in your house, the excess energy
generated by your panels is sent to the grid. When there is not enough sun to meet your
energy demand, you take energy from the grid. By connecting to the grid you are
ensured that you’ll have power to your home at night or on cloudy days.
What makes up a solar system?
Photovoltaic (PV) systems are made up of photovoltaic cells, AC/DC inverters, a racking
system, and sometimes a battery for energy storage.
PV cells – PV cells are interconnected to create modules and panels. The most frequent
panels for residential installations are crystalline silicon panels. The number and size of
panels on your roof will depend on your electricity usage and, more importantly, the size
of your roof.
Inverters - There are two types of inverters: central inverters and micro-inverters.
Central inverters receive all the energy generated by the panels and convert it to AC,
while micro-inverters are connected to each panel, converting the electricity from DC to
AC immediately.
Central inverters are usually located at ground level near the main electrical service
panel, and a wire that connects your panels run from the roof to the inverter. Central
inverters optimize energy conversion for the entire system, but if one panel is shaded it
can bring down the performance of the rest of the system.
Micro-inverters, on the other hand, work individually with each panel and if one panel is
shaded it does not impact the production of the other panels. Micro-inverters help
maximize the production of each panel and can increase power production by 5 to 25%
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compared to central inverters. Some micro-inverters offer online monitoring that allows
you to see how your panels are performing. More detailed info about inverters is
available here.
Racking system – How your solar system is mounted on your roof will depend on
several factors. There are a number of different racking system options, including
ballasted systems, beams attached to the walls, and others that connect to struts on
your roof. Installers typically decide on the best racking system to use based on your
roof type and structure.
What's the life expectancy of this system?
The life expectancy of a solar panel is 25 years or more.
There is very little that can go wrong with a solar panel short of physical damage. In
fact, all panels pass Jet Propulsion Labs Block V tests, which are:
o Withstanding 125 m.p.h. wind loading;
o Surviving one inch hail at terminal velocity (52 m.p.h.);
o Thermal cycling at temperatures beyond what you will find here on Earth
(short of tossing them into molten lava!!).
There are no moving parts to wear out and solar panels don't consume any fuel. As long
as there is enough light to cast a shadow on the ground, they will produce electricity.
They are so reliable that almost all panels come with 25-year warranties.
What are the warranties?
The panels have a power production guarantee for 25 years, while the labor is
warrantied for 5 years (this can vary depending on the installer). The inverters are
guaranteed for at least 10 years.
What are the operations and maintenance requirements for solar systems?
Solar systems have no moving parts, so they do not need much maintenance.
Occasionally squirrels will chew on the wires that run from the panels to your electric
box, but this is easy to repair if it does happen. Because West Virginia gets a fair
amount of rain each year, you do not need to clean or wash your panels. In the event of
snow, we recommend you do not try and remove snow from your roof. Because the
panels are dark, they absorb heat and will melt the snow from your roof quickly.
Your panels have a lifetime of 25-30 years and will remain under warranty for 25 years.
If you opt to use central inverters, which are warrantied for 10 years, may need to
replace them after 10-15 years. We don’t anticipate this being a large expense for you
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in the future, as central inverters currently cost less than $1,000 and the cost will fall
significantly in the coming years. Micro-inverters, while a bit more expensive upfront,
increase system production, and are warrantied for 25 years.
What is net metering?
With solar on your roof, some days you use more energy than you generate. Other
days, you generate more energy than you use. Fortunately, you’ll always get credit for
the electricity that your solar panels produce, even if you’re not using the electricity at
that moment. The reason is because we have policies that allow for net metering.
Net metering is the electricity version of unlimited roll-over cell minutes. It allows
residential solar energy generators to offset their energy consumption with their energy
production. Essentially, when your solar panel is producing electricity, your electric
meter runs backwards. When you’re using lots of power your electric meter runs
forward. At the end of the month, your final electric bill is your total usage minus the
electricity that your solar panels produced.
Monthly Electric Bill= [Total amount of electricity used] – [Electricity produced by solar
panels] + [Customer Charge ($5 per month)]
In West Virginia, if during any given month you are a net energy generator (your solar
system generates more energy than you use), your utility bill will be the minimum, and
the excess credits will be credited to the next month.
Do we get enough sun to go solar in Fayette County?
Absolutely — we receive almost as much solar radiation as Miami does annually.
The National Renewable Energy Laboratory collects and publishes data on the average
solar radiation for the entire US and we receive plenty of solar in the County.
What happens if the grid goes down?
“Grid-tied” or interconnected solar PV systems typically do not have battery back-up
systems. If a power outage occurs, your solar PV system will automatically shut down
to protect utility workers.
Is solar right for my home?
We will need to check the roof of your home for structural soundness, orientation to the
sun, shading, and other details. Unfortunately, solar doesn’t work for every situation.
Even if your home isn’t in a good spot for solar, though, we’ll keep you updated as new
options become available.
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How large should the system be to power a typical house?
It depends on how much energy you use and how big of a system you end up buying.
Most people are limited by the size of their roof. Generally, a system on a typical house
will produce about 30-60% of your electric needs (assuming an average consumption of
850kwh/month). When you get your customized proposal at the end of this process, you
will get a bid that maximizes the amount of solar that fits on your roof and supplies up
to, but not more than, 100% of your average use. Your proposal will also include a
projection of the amount of electricity your system will produce. These projections are
very accurate—they are based on several decades of testing by the U.S. Department of
Energy.
Who installs the systems?
Once we have about 25 people signed up for the co-op, WV SUN will issue a request
for proposals (RFP) on behalf of the group. This RFP will request that area installers
provide bids to the group. The Co-op will then form a Selection Committee to review the
bids and select a single installer to complete all of the projects. Anyone in the Co-op is
welcome to participate in the Selection Committee. WV SUN will provide technical
assistance throughout the process, but the final installer decision is made by the Co-op.
Co-op Basics
What is a solar co-op?
A co-op is when a group of neighbors work with community partners to install solar
electric systems together. By using the collective buying power of the group, each
participant saves on the cost of their system.
The group will go through the process of purchasing solar electric systems together.
Through a competitive bidding process, the Co-op will select a single contractor to
install systems on all of the homes. Each participant owns their own system and will
sign their own contract with the installer.
Who is WV SUN?
WV SUN is a nonprofit citizens network of solar supporters in West Virginia. We support
the growth of solar in the state through innovative community projects, neighborhood
solar co-ops, and strong solar policies. Our belief is that all citizens should have the
right to produce their own homegrown energy.
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We are not affiliated with any specific company or product, so we are uniquely
positioned to give you unbiased, thoughtful advice based on our extensive experience.
We will be there to support you throughout the solarization process!
Why should we participate in a solar co-op?
Going solar as a group has many advantages:
1) By grouping participants in a particular area together, the installers have less
travel time and fewer costs, resulting in a better price for the group.
2) Coming together as a group means we have more negotiating power with
installers and can get a better price.
3) Understanding all of the details of solar and solar financing can be confusing. By
going through the process as a group you can get your questions answered and
feel confident that you’re getting a good deal and a quality solar system.
4) WV SUN has a lot of experience helping people in West Virginia go solar. We
also aren’t affiliated with any specific installers. Our role is to serve as a
consumer advocate, so we make sure that you get the best deal possible.
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How does this co-op purchase work?
Step 1 and 2: Attend an info session and join the co-op
The first step is to attend an info session and learn more about the co-op. At the
meeting WV SUN will explain how solar works and answer any questions you might
have.
Those who are interested in moving forward then sign up to join the co-op via an online
form. This signals your interest in going solar, but is not a binding commitment to
participate in the bulk purchase. In this first phase, the goal is to recruit at least 25 co-op
members.
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Step 3: Get a Roof Review
Once you sign up via the online form, WV SUN does a preliminary screening of your
roof via Google Earth. This is to see if you have any shading from trees or other
structures, the size and shape of your roof, and its orientation towards or away from the
path of the sun. If your home isn’t a good fit for solar, WV SUN will let you know.
Steps 4 and 5: Solicit Local Bids and Select an Installer
Once the group has recruited about 25 participants, WV SUN will issue a request for
proposals (RFP) to area installers on behalf of the co-op. The co-op will then form a
Selection Committee to review the bids and select a single installer to complete all of
the projects.
Step 6 and 7: Get Individualized Proposals and Sign Contracts
Once selected, the chosen installer will reach out to all participants to schedule a home
visit. That installer will meet with each participant in order to provide an individualized
proposal that lists the size and cost of a solar system for your specific house (the cost
will reflect the group discount). If you decide to move forward you then sign an individual
contract with the installer to have the system installed.
Step 8: Systems Installed
Once you’ve signed your contract with the installer, they will begin installing the panels
on your roof. Installation typically only takes a few days, after which you wait for all of
the permitting and interconnection paperwork to be approved.
Step 9: Celebrate!!
Once the co-op members have had their systems installed we will celebrate with a
party!
Paying for Your System
What are the available incentives for solar?
Besides the environmental incentive of owning your own renewable energy system
there are a number of financial incentives that make solar PV affordable.
1) Electricity savings: Over its 25-30 year lifetime, a system will generate
thousands of dollars worth of electricity. You will be connected to the grid and
net metering will allow you to seamlessly use your own power or grid power
whenever your own is not available. Net metering allows you to “roll over” any
excess value you produce. The value of the electricity you produce depends on
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the size of your system and the price of electricity you are replacing not how
much you use.
2) Federal Tax Credit. You get back 30% of the total cost of the system BEFORE
other incentives. You still have to pay up front for the system but when you file
your taxes you will receive a 30% CREDIT (not a deduction) from the federal
government.
3) Solar Renewable Energy Credits (SRECs). The easiest way of thinking about
this is whenever you generate solar electricity from your system, you are also
generating an abstract “green value” of your electricity. Through law and
regulation, this abstract concept becomes worth something called an SREC.
Every time your system produces 1,000 kWh of electricity, you get one SREC.
SRECs are traded on an open market to meet various states’ Renewable
Portfolio Standards. Though West Virginia does not currently have a mandatory
requirement for utilities to produce solar energy, Pennsylvania will accept out of
state SRECs like those generated from systems in West Virginia. As your system
generates electricity, you will earn SRECs and can sell them on the spot market
as they accrue (just like stocks or bonds).
SREC trading is generally available through brokers like SRECtrade.com or
solsystemscompany.com.
4) Solar co-op discount. Participating in the bulk purchase lets you save on the
total cost of the project. The installer gives you this discount upfront just for
participating in the group.
What exactly is the cost of going solar?
Here is a breakdown of the cost of a solar system, using example 3kW and 5kW
systems. Your price may be different depending on the size of your solar system and
whether or not you need to finance the system.
Sample Financial Worksheet
Cost per watt
Co-op discount per watt
Total cost before incentives
Federal tax credit (30%)
Cost after incentives
Annual savings (electricity +SRECS)
Estimated monthly loan payment (15 yrs)
3 Kilowatts
$4.00
$3.50
$10,500
$3,150
$7,350
$570
$66
5 Kilowatts
$4.00
$3.50
$17,500
$5,250
$12,250
$950
$110
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We like to think of solar power as an investment like any other. You should determine
the upfront costs, calculate the benefits, and figure out how long it takes to see a return
on your investment. Turns out that solar is a great bet.
 Your solar investment provides a better return than most savings accounts or
CDs, typically returning 5-6% through utility savings.
 The value of your system will increase as electricity rates rise, because the
upfront cost of the system will never go up.
Is there a cost to participate in the co-op?
There is not an additional cost to participate in the bulk purchase program beyond the
cost of purchasing your solar system. WV SUN charges the installer a $0.15 per Watt
development fee per completed project, but this fee is paid by the installer, not the
homeowner. It also typically does not impact the cost you pay for solar, since working
with the co-op means installers save a significant amount of money on advertising and
recruiting new clients. They then pass those savings onto the group. WV SUN is also
100% installer neutral. Our role is as a consumer advocate, so we do not give
preferential treatment to any specific company.
What are the current expiration dates for the Federal Tax Credit?
The Federal Tax Credit is scheduled to expire at the end of 2016. For more information
on all incentives the website http://www.dsireusa.org is exhaustive and has links to
the IRS code and all legislation.
I have more questions!
Check out wvsun.org and sign up for the WV SUN listserve. Chances are someone on
the google group has already had your question so you might already find the answer
by searching. If not, you can post it and within minutes a member of the group will
probably reply.
Of course, you can always email us at FayetteCoop@wvsun.org.