Solar 101: Frequently Asked Questions
How does rooftop solar work?
Rooftop solar systems use photovoltaic panels installed on the roof of a home. When the sun shines on these panels, photons from the sunlight are absorbed by the cells in the panels. This creates an electric field across the panels’ layers and causes electricity to flow. Through various equipment, that electricity can be refined and prepared for use in the home, presumably reducing the amount of energy needed from the grid.
What should I know about solar before I invest?
There are many complex factors in considering installing a rooftop solar energy system. You need to think about cost, financing options, reliability, the suitability of your rooftop, warranties, maintenance, how the system will interact with the local energy grid, a realistic expectation of how it will affect your power bill and much more.
You might start by thinking about the reasons you want rooftop solar. Is your priority to save money? Do you want to be prepared in case of a power outage? Are you motivated by making energy choices that positively impact the environment? The answers to these questions can guide your choices on whether to get solar and what type of equipment you will need.
The U.S. Dept. of Energy provides a helpful Step-by-Step Guide for Consumers Going Solar here: https://www.energy.gov/eere/solar/articles/walk-me-through-it-step-step-guide-consumers-going-solar .
How much does solar cost?
There are numerous factors that affect the cost of a home solar system.
- The panels you choose: This can include the panel brand, their output rating, their efficiency and more.
- The size of your system: This refers to how much energy it produces measured in kilowatts (kW).
- Additional hardware: A battery backup system, for example, can store unused energy for a rainy day. But it will also add significantly to the cost; sometimes as much as doubling the amount.
- How you pay: Paying upfront in cash is usually cheaper than financing the panels. Customers who take a loan could pay as much as 47 percent more than the cash value of their system over the loan term. Be especially careful of “no money down” or “12 months interest-free” plans. If not refinanced in a certain time frame, many of these options default to high interest rates for equipment that is constantly depreciating.
- The installer: Each solar developer has its own way of pricing equipment and installation. We recommend shopping several installers before deciding on one.
- Some fees are required by OPD5 to connect your system to the grid. Feel free to call our office to receive more detailed information.
- There are federal subsidies, available through tax credits, that can reduce the cost of rooftop solar. The DOE has created a guide to federal tax credits available here. https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics .
Other incentive programs may be available through state and municipal sources.
What about solar leasing programs?
With a solar lease, a developer installs and owns the system on your home. In return, you agree to pay a series of scheduled lease payments, typically over a long period of time: 15-20 years.
The benefit is that it eliminates most of the upfront costs of a system. Plus, if indicated in the contract, it transfers most operations and maintenance responsibilities to the lessor.
The downside is that it is a long-term arrangement. If you decide to move from your home before the term is up, there may be high expenses in getting out of the contract. In addition, many solar leases come with an escalating payment schedule over time. So, review the contract very carefully when assessing the desirability of a lease program.
The Clean Energy States Alliance has prepared a detailed guide to help homeowners understand the various financing options available in going solar. This can be downloaded here. http://www.cesa.org/assets/2015-Files/Homeowners-Guide-to-Solar-Financing.pdf
How do I avoid getting scammed by a shady solar provider?
Most solar companies provide a positive customer experience. However the rampant expansion of rooftop solar has opened the door to a small group of bad actors.
Here are a few smart shopping tips when engaging with providers:
- Don’t give in to pushy sales tactics. This is not a decision you should make in a hurry or under pressure.
- Talk only to certified installers. The DOE recommends visiting https://www.energysage.com/shop/community-solar/ to shop qualified and reputable solar providers.
- Fully research and understand your financing options.
- Shop for bids from multiple vendors to compare programs.
- Report bad actors to https://reportfraud.ftc.gov/ or at the Nevada Consumer Protection Bureau at https://ag.nv.gov/About/Consumer_Protection/Bureau_of_Consumer_Protection/
The U.S. Department of the Treasury, Consumer Financial Protection Bureau and Federal Trade Commission have issued a consumer advisory to help identify potential solar scams. It is a good resource to review before shopping. It can be found at https://home.treasury.gov/policy-issues/consumer-policy/consumer-solar-awareness
If I invest in solar, will it eliminate my power bill?
As long as your home is tied to the OPD5 grid, you will receive a bill that will, at least, include the base fee. This fee is instituted to pay for the district’s costs of maintaining and operating its system. A solar system will likely reduce; or even at times reverse your energy usage; thus lowering your bill. But the only way to eliminate your power bill is to go off the grid completely.
What if the power goes out? Will my solar equipment still provide electricity to my home?
Not necessarily. The most economical way to install solar is through a “net-metered system.” With net metering, you continue to receive power – whether your system is generating a surplus (during the day) or running a shortage (at night). With the way net-metering operates, your solar panels alone will not provide you with power during an outage. If you want to be prepared for a power outage, you will need to add a backup storage system (i.e. batteries or generators) to provide stored energy to your home during an outage. Those come at an additional cost that can easily double the price of your system
How much maintenance will a home solar system need, and who is responsible to do it?
Solar panels generally require little maintenance. However there are component parts in a rooftop system that may occasionally need repair or replacement. What’s more, in our desert environment panels can develop a layer of dust and dirt which can lead to reduced output from your system. It is the system owner’s responsibility to remedy these problems as they arise.
If my rooftop solar system produces more power than I consume, will OPD5 reimburse me for the surplus?
According to OPD5 policy, customers do not receive a cash payment for producing excess power. Rather, the district issues unused energy credits to net-metered customers who run a surplus. These credits are then carried forward and applied to future bills to offset times when the customer uses more energy than their solar system produces.
The credits expire at the end of each calendar year. After that last billing cycle in December, OPD5 will zero out customer accounts of any unused energy credits. There is no buyback for these credits. This is all in accordance with the “Interconnection Agreement” (https://opd5.com/renewable-energy/renewable-energy-forms/) which is signed by both OPD5 and the net-metering customer at the time of the installation of the system.
Net-metered power bills will always include the Base Charge fee and any other miscellaneous charges incurred. Unused energy credits cannot be applied to these charges.
Is installing rooftop solar good for the environment?
Solar power is produced directly from the sun. Thus, it does not require the burning of fossil fuels which can cause carbon dioxide and other pollutants in the atmosphere. That is why solar is sometimes called “clean” energy.
But because rooftop solar is an intermittent resource, it doesn’t really reduce the demand on the power grid. Solar panels generate electricity from mid-morning to mid-afternoon. But that doesn’t match the traditional usage peaks in either the average household or the power grid in general. That peak usually occurs in the early morning and the early evening. Thus, firm energy resources, usually generated from fossil fuels, must still be available to meet that peak demand. Those firm resources must also be at the ready at other times when the weather doesn’t allow for solar generation.
What requirements does OPD5 have in place for installing a new roodtop solar system?
OPD5 has a set of technical requirements for all rooftop solar systems. These are laid out in detail in our Interconnection Agreement. An application is also required to start the process with our staff. These documents are available here. https://opd5.com/renewable-energy/renewable-energy-forms/.
Our staff is happy to help in answering any other questions you may have.
If you have other questions
If your question is not answered on this page, you can use this contact form to get in touch with our team.
If you have other questions
If your question is not answered on this page, you can use this contact form to get in touch with our team.