Checklist for going solar
Nov 30 - San Jose Mercury News
By Dana Hul
With the sun setting before 5 p.m., solar power may be the last thing on
your mind these days.
But declining panel prices, a federal tax credit and a state rebate all
make now a good time to at least investigate whether solar power might
make sense for your home -- and your budget.
"If you're thinking that you'd like to go solar within the next few
years, right now is the time to do it," said Lynn Jurich, president and
co-founder of SunRun, a San Francisco-based startup that provides solar
financing for consumers who can't afford the upfront costs of buying
their own solar systems. "Panels are on sale right now. There's a sweet
spot where the state rebates are still relatively high, but the costs
have come down."
And winter is a good season to research solar options, experts say. It's
generally a slower time for the industry, which means companies may be
willing to give you a better deal.
If you're thinking about going solar, here's a checklist of things to
think about:
--Take a good, hard look at your electricity usage over the past year or
several months. You probably know how much you pay for electricity every
month and have records of the checks or bills paid to PG&E or your
municipal utility. But do you know how much electricity you actually
use? Electricity is charged by the kilowatt-hour (kWh). Some people use
as little as 300 kWh per month; others easily use more than 1,200 kWh a
month.
In general,
solar is a much better investment for people who use a lot of
electricity. And PG&E has a tiered rate structure, so customers who use
more electricity are charged more.
Understand how you use electricity," said Sue Kateley, executive
director of CALSEIA, the California Solar Energy Industries Association.
"Get out your bill and look at the tiered rates. If you don't use a lot
of electricity -- if you are a Tier One or Tier Two customer -- then you
really need to do a cost analysis to see if solar is cost-effective."
--Take a look at the roof of your house. How old is your roof, and what
kind of shape is it in? If your roof is due to be replaced, you'll want
to do that before, or along with, adding solar.
And is your roof ideally situated for solar? Does it face south?
"Shading" is also an issue: your roof should have clear, unobstructed
access to the sun for most of the day and be free from shade from trees
or other buildings.
--Shop around. Ask friends and neighbors who have already installed
solar power if they've been happy with their systems. Learn about
financing options: Do you have to have the money for the entire system
upfront, or does your installer offer a leasing option?
Interview at least three potential installers and obtain bids in writing
before making a decision. Whatever the salesperson tells you should be
in writing in the contract.
--If you buy electricity from one of California's three investor-owned
utilities -- PG&E, Southern California Edison or San Diego Gas &
Electric -- and you have roof or ground space that gets unobstructed
sunlight from 11 a.m. to 6 p.m. year round, you qualify for cash back
incentives through the California Solar Initiative.
The California Solar Initiative (CSI) was started in 2006 to provide $3
billion in incentives for solar energy projects by 2016. Rebates for
smaller residential systems are given upfront -- a one-time payment
based on system size. The current rebate level for PG&E residential
customers stands at $1.10 per watt. So if you're putting in a 5 kw
system, that results in a $5,500 rebate. But as more people apply for
the rebates, the incentives are reduced, and many experts expect them to
drop further later this spring.
Customers of municipal utilities may also qualify for incentives through
their municipal service provider.
--Be sure to apply for the Solar Federal Tax Credit, which allows you to
claim up to 30 percent of the costs for a new system. A buyer who
installs a $25,000 solar panel system on his or her roof will get $7,500
in income tax credits.
--Consider your long-term electricity needs, and find out if the solar
technology you're interested in allows you to add on more panels over
time if necessary. A swimming pool, changes in family size or the use of
a plug-in hybrid car could vastly change your energy consumption.
Contact Dana Hull at 408-920-2706.
Are you ready?
Thinking of going solar? Here are some issues to consider: o The
condition of your roof. o Your electricity use "" and your budget.
o A state rebate and federal tax credit.
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Copyright (c) 2009, San Jose Mercury News, Calif.
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