25% of total system cost - Northwest Electric and Solar

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HARNESSING THE
POWER OF THE SUN
FOR THE BENEFIT OF ALL
WHO WE ARE
• Full-service electrical contractor
• Licensed, bonded and insured
• Principals have combined 30+ years electrical and solar
experience
• All employees go through 4 or 5-year apprenticeship
program
• NABCEP Certified Solar Installers; LEED AP
• Journeyman Electrician Lead on-site; Master Electrician
oversees inspection.
WHAT WE DO
• Residential Electrical
• Commercial
Electrical
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New Construction
Renovation
Code Upgrades
Back-up Power
Emergency Service
Lighting Controls
Energy Audits and
Conservation
LEED Certification
• Residential Solar
• Commercial Solar
HOW DOES
SOLAR WORK?
The best formula for a solar electric system is a
high rate of insolation (solar resource) and high
utility rates.
The bad news:
• Western Washington’s insolation is about 2/3
that of Sacramento.
• Washington has some of the lowest utility
rates in the country.
The good news:
• Washington has one of the best solar
incentive programs in the world.
so…
HOW DOES
SOLAR WORK
IN WASHINGTON?
Federal, State, Utility and Local programs pay YOU for producing energy.
FEDERAL PROGRAMS
• Federal Tax Credit for Individuals and Businesses
•
30% of your total system cost is credited against tax liability
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You can take all of the credit in the first year, or roll it over into subsequent years
until 12/31/2016
No maximum
• Accelerated and Bonus Depreciation (MACRS)
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20% or MORE of your total system cost can be taken as depreciation credits
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Available for commercial customers only!!!
• Be wary of solar companies telling you this can be used on your house!
Depreciation basis is 85% of system cost
50% bonus depreciation in year one; 20%, 32%, 19.2%, 11.52%, 11.52%, 5.76%
• Department of Agriculture Grants (REAP)
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Rural, agricultural small businesses may be eligible for a grant of 25% of total
system cost through the USDA
HOW DOES
SOLAR WORK
IN WASHINGTON?
STATE PROGRAM
• Renewable Energy Cost Recovery Incentive Payment Program
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Enacted in 2005, secured through June 30, 2020
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•
Trade group working on a new bill for 2014
NO SALES TAX!
• Meant to encourage manufacturing in Washington
•
•
Base rate of $0.15/kWh
Multipliers of 2.4 for WA-made modules; 1.2 for WA-made inverters
$0.15 x
2.4
$0.15 x
1.2
$0.36/kWh
$0.18/kWh
$0.54/kWh
• Maximum payback of $5000/year through your utility
•
New Production Meter installed
•
Read once a year; year is July 1-June 30
HOW DOES
SOLAR WORK
IN WASHINGTON?
NET METERING
• YOU are USING the energy produced by your system
•
Depending on usage, this is an additional 9 to 9 ½ cents per kWh
•
•
This amount will be absent from your normal utility bill
Production is MUCH higher in summer; about 1/5-1/6 in winter
54¢
Rooftop Array
9.5¢
Production
Meter
House Panel
Net Meter
Total net benefit to you is up to 63.5¢ per kilowatt hour!
CHOICES TO MAKE
In-State Components or Out-of-State Components
In-State Components
•
Higher payback = Better ROI
•
Often < 6 years rather than 11+
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Encourages jobs in Washington
•
NOT bad quality
• Just less automation
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Out-of-State Components
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Lower overall cost
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Better quality products?
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Personal relationships with
suppliers
•
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Modules can be 55% cheaper
or more
Overall project cost 30%
cheaper or more
More established, international
brands
Confidence in warranty
Shorter lead times
•
Often available off-the-shelf
NWE&S usually includes at least one in-State and one
out-of-State option in every proposal
CHOICES TO MAKE
Module Selection
Itek Energy
(IT255 mono)
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Made in Bellingham
since 2008
Least expensive inState option
Standard 60-cell
module
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Compatible with all
inverter types
Higher Efficiency
modules available
10/25 Warranty
•
10 years
workmanship / 25
years 80% production
Silicon Energy
(SiE200)
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Made in Marysville
since 2005
Incredibly durable
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Tested to 80 years!!!
Double-glass
construction
Building friendly 49-cell
module
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48” repeat spacing
Better aesthetics
•
5 years workmanship
/ 15 years 90% / 30
years 80%
5/15/30 Warranty
SolarWorld
(SW270 mono)
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Made in Hillsboro, OR
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In USA since 1975
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Bought Shell Solar in
Camarillo, CA
German company
Largest module
manufacturer in US
Higher efficiency 60cell module
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Up to 270W
•
10 years
workmanship / 11
years 90% / 25 years
80.2%
10 / 11 / 25 Warranty
CHOICES TO MAKE
Inverter Selection—String Inverter or Micro-inverter?
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3-4% more efficient
•
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Equals more production
50%+ cheaper than micro-inverters
•
Best ROI
•
Integrated monitoring (some)
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Integrated AC/DC disconnects
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Strings of 10-14 modules typically
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Suitable for unshaded modules with
the same orientation.
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More versatile
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Isolation of shading
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Typically 1 inverter for 1 or 2 modules
1-2 modules shaded does not affect
the output of the rest
Any orientation
•
•
Any number of modules is possible
Modules can face different directions
at different tilt angles
Optional energy monitoring unit
•
Add $500 to total project cost
CHOICES TO MAKE
Inverter Selection—In-State
Itek Energy
(Eltek Theia line)
Silicon Energy
(SiE3840 and 5300)
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String inverter
Established, Norwegian
brand assembled in
Bellingham
Available in 2.0kW,
2.9kW, 3.8kW, 4.4kW
Strings of 10-13 modules
Integrated monitoring
system
230V-600V range
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10-year warranty
97.3% max efficiency
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String inverter
Made in Marysville
Available in 3.84kW or
5.3kW
Strings of 11-14 modules
235V-600V range
Bundled with Silicon
Energy modules
•
Not compatible with
micro-inverters
10-year warranty
96.7% max efficiency
Blue Frog Solar
(APS 200 or 500)
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Only micro-inverter
made in WA
Made in Poulsbo since
2012
Available as one per
module (APS200) or
one per 2 modules
(APS 500)
Optional monitoring
unit for $500
25-year warranty
95.5% max efficiency
CHOICES TO MAKE
Inverter Selection—Out-of-State
SMA
(SunnyBoy line)
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String inverter
German Company with
40% world market share
Made in USA
Available in nearly any
size
Strings of 9-13 modules
Available monitoring
interface
150V-600V range
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10-year warranty
97.2% max efficiency
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Enphase
(M215 and M500)
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Micro-inverter
Largest micro-inverter
manufacturer in the
world
Made in China
Available as one per
module (M215) or one
per two modules
(M500)
Optional monitoring
unit for $500
25-year warranty
96.3% max efficiency
CHOICES AND RETURN
ON INVESTMENT
Typical NWE&S Package Offerings
5.1kW System
Itek / Theia
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5.1kW System
Itek / Blue Frog
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20 x 255-watt modules
10 x Blue Frog APS500
micro-inverters
Price per watt = $5.70
Total system cost =
$29.070
Expected output =
5610 kWh/year
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•
20 x 270-watt modules
One SunnyBoy 5000w
string inverter
Price per watt = $3.80
Total system cost =
$20,520
Expected output =
6075 kWh/year
•
Return on investment =
•
Return on investment =
20 x 255-watt modules
One 4.4kW Theia string
inverter
Price per watt = $5.20
Total system cost =
$26,520
Expected output =
5738 kWh/year
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Return on investment =
5.1 years
5.4kW System
SolarWorld / SMA
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5.7 years
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9.2 years
Assumptions: 180° azimuth; 20° tilt; 98% sun access; 9.5¢ average utility rate; 0.5% degradation rate; 4.1% utility
rate increase
CHOICES WE’VE MADE
FOR YOU
Sunmodo Racking Systems—Flat Roof, Metal Roof, Ground Mount, Shingle
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All aluminum and stainless steel components
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Prevents rust for LONG LIFE
You do NOT want cheap, galvanized steel
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Vancouver, Washington-based company
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10-year product / 5-year finish warranty
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Premium product
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Mechanically anchored
CHOICES WE’VE MADE
FOR YOU
We Choose Safety AND Performance
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DC and AC Disconnects
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Required by National
Electric Code
Not required (in many
cases) locally
•
Many contractors make
the dangerous choice to
cut this corner
•
We value our
employees and
will never ask
them to do
something that
makes them
uncomfortable
Rain, Ice or
Snow
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Wire Gauge and Type
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The gauge of the
wire can seriously
affect production
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Smaller wire =
more voltage
drop
We size wire for
less than 2% drop
Safety
Equipment
Safety
before
schedule!!
Permanent
anchors or
temporary
scaffolding
may be
required
OTHER
FACTORS AFFECTING
PRICING & ROI
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System size
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Roof height
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Under 50’
assumed in
packages
Adds to labor
hours
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Needs upgrade
per code
Eligible for 30% ITC
Distance to panel
Steep roofs add
greatly to labor
hours
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Economy of scale
Outdated wiring
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Roof pitch
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Metal roofs
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Much simpler
Actually
DECREASE COST
Conduit runs in the attic or under the eaves and equipment mounted inside (such as inverter) are optional
aesthetic customer options that will increase cost.
FACTORS AFFECTING
PRODUCTION
Orientation
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180° (true south) is
ideal
East- or westfacing arrays
about 20% less
No north!
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Tilt Angle
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Shading and soiling can severely affect output!
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NWE&S will not sell a system that will be severely shaded
• We assume 3% losses from soiling throughout the year
• Regular cleaning of modules is recommended
32° ideal in Seattle
area
Better to mount
flush to roof for
wind loads
THE PROCESS
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Initial contact
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Usually a phone conversation between you and NWE&S
Set a date for in-person consultation and site assessment
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Sometimes surprisingly accurate
Sometimes NOT—why we always want a site assessment
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Customer goals and preferences
Review sample proposal for familiarity
Rooftop measurements and Suneye readings
Google Earth
In-person consultation and site assessment
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Proposal and Contract
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Usually sent via email
Deposit gets materials on order
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CONFIDENCE IN NUMBERS
Sometimes up to 6-8 weeks for delivery of materials; sometimes in stock
65% deposit for in-State materials; 50% for out-of-State materials
Paperwork and Permits
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Utility, City/County or L&I, DOR, IRS
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Office manager schedules work
Inspection upon completion
Construction and Inspection
THE SITE ASSESSMENT:
CONFIDENCE IN
NUMBERS
An accurate bid cannot usually be done remotely
• Solmetric Suneye
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Fisheye lens takes shot of skyline(s)
Automatically calculates solar access
Used for de-rating PVSyst report
• PV Syst—University of Geneva
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Required by largest utilities (not in WA)
Comprehensive, based on TMY data
DC/AC losses, module tolerances,
mismatches, soiling, etc.
Hourly, daily, monthly data available
Not PVWatts (free online)
• Accurate roof measurements
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Pitch
Obstructions
Roof structure
Roof quality
THE PROPOSAL
BEWARE HIDDEN COSTS!
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One-page summary with all relevant figures
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3 options, based on YOUR input
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In-State and out-of-State options
Scalable options to fit your budget
More options available if you don’t like what
you see
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Single, lump-sum cost--We will beat any
competitor’s bid
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Industry-standard price per watt
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Easy apples-to-apples comparison
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All permits and other incidental costs
included
•
Only option is $500 ECU for micro-inverter
systems
THE PROPOSAL
THE PRODUCT OF THE SITE ASSESSMENT AND CONSULTATION
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Options shown
clearly on roof
Summary of each
option
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Cash flow chart
for each option
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Cash flow graph
for non-numbers
people
Break-even point
clearly shown
THE CONTRACT
Highlights from 9 Pages of Legalese
•
5-year workmanship warranty from Northwest Electric & Solar
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Lump sum price and payment terms clearly stated in dollars and cents
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Process for changes
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Notice to proceed (from you) and 14-day schedule
* Large projects may need more time
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NWE&S insurance is $1,000,000 liability / $2,000,000 aggregate
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License information
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Bond information
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Mechanic’s lien
PERMITS
AND PAPERWORK
Electrical Permit
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Always required
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Through City, County or
State Department of
Labor & Industries
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Slightly different
requirements in
different areas
• Cost varies
• Code
compliance
varies
Always paid for and
acquired by NWE&S
Building Permit
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Not usually required
• System size in kW
• Total system
weight
• Other structures
• Non-flush mount
Through your local
building and planning
authority—City or
County
Different requirements
in different areas
• Fire aisles
• Setbacks
System Certification
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Utility “new” service
• Production meter
•
Utility Certification
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Department of
Revenue Certification
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Sales Tax Exemption
•
IRS Form 5695
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Annual Production
Incentive Form
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NWE&S fills out all for
your signature
CONSTRUCTION
AND SCHEDULE
Once you’ve signed a contract….
Lead Times
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Modules are the
driving factor—
usually 6-8
weeks
Inverters and
racking are < 3
weeks
Materials
storage on site?
Safety
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Roof anchors
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We will “call
the job” for
the day if
necessary
Might need
access to the
inside
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Permanent?
Dangerous
Conditions
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Construction
•
100% safe to
leave a key
with us
There will always
be a
journeyman
electrician on
site
Typical
installation is 2-3
men, 3 days
Scheduled
through our
office manager,
Jeramy
THE CONSTRUCTION
PROCESS
Getting Your System Up and Running
Install anchors
• Directly into joists or purlins
• Waterproofed with silicon
gel
• Might need attic access
Install rails
• Rails run perpendicular to
joists/purlins
• 2 rails per row of modules
• Typically anchored every
48”
“Fly glass”
• Modules clamped to rails
with top clips (end and midclamps)
• Usually less than 3 lbs/ft²
Install the rest
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Inverter(s)
Disconnect(s)
Conduit and wire
New meter box
Test the system
• Test all DC circuits
• Test input/output at the
inverter
Final inspection
• Once approved, the utility
will install the new
production meter and
you’re making clean
energy!
MAINTENANCE
ETCETERA
Your System and Your Pocketbook
The only regular maintenance
we recommend is module
cleaning
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Remember soiling is now the #1
factor in production
Clean 3-4 times/year or as
needed
Keep modules free from leaves,
bird droppings and other
obstructions
Will naturally shed snow
Pay special attention to
aperture area and corners
Keep an eye on energy
production through your
inverter or monitoring unit
Compare to production meter
regularly
NWE&S will provide
you with a
customer care
manual with all
maintenance,
warranty and
paperwork
Remember that production is largely
dependent on the weather and the
season. If you think there is an issue
with your array, please contact
NWE&S immediately to troubleshoot.
Remember to file your IRS form 5695
and your annual State production
incentive paperwork with the utility.
CHOOSING NWE&S
A Local, Family-oriented, Trustworthy Company
We’re building NWE&S on customer
service
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Most of our business comes from
repeat/referral customers
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Customer referral program gives
$100/kW for leads that turn into jobs
Solar installer of choice for many
General Contractors and Green
Builders
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Angie’s List Super Service Award
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Better Business Bureau A Rating
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Perfect 5-star rating on Yelp
We care about Washington, our
Country and our World
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We’re from Kirkland, Edmonds,
Tonasket, etc.
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Active in local trade groups
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Solar Washington
Master Builders Association
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Husky and Cougar-friendly
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LITERALLY, A FAMILY COMPANY
You’re making a 25+ year
investment. You want a company
that will be here for you in 2038 and
beyond!
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