SOLAR 101: A BEGINNER'S GUIDE
Inspired by an Aussie Greenie F. Peacock
This cheat-sheet is for you if you are thinking of investing in solar.
If you read it, you'll know more about solar than 99.9% of Americans, be able to go toe-to-toe with a solar salesman, and be confident that you're paying the right amount of money for a properly-sized solar system for your home.
The rest of this website contains lots more information on everything you could possibly need to know about solar. But there is so much information on my website that it can feel a little like tumbling down a rabbit hole.
That's why I posted this 'Solar 101' guide, which should take you about 10 minutes to read.
If you're feeling pretty confident about solar already and you're just looking to get quotes from quality pre-vetted installers that I trust, then simply click here.
Otherwise, here's what you should know before you get quotes for solar:
1. The two main components of a solar PV system.
2. The most important thing to measure before you get solar: how much electricity you use in your home.
3. The solar tax credit: still very much alive and kicking and generous.
4. Don't Get The 'Tax Credit' and 'Net Metering' Confused
5. Roof direction/angle for optimal solar.
6. Typical payback for solar.
7. Costs for quality solar, and why quotes can vary wildly in price.
8. Batteries – do you need them?
Beginners Note: kWh stands for 'kilo-watt-hour.' It is a unit of electricity. It is how we measure how much electricity is used. American homes use a range of 16-42 kWh per day with the average American home using 29 kWh per day .
Note about pro-tips: These are intended for people who like to get a bit more technical. Feel free to ignore them if they don't make sense to you.
Email: bhoran@sunergysolar.solutions
Ph: 858.518.1234
Inspired by an Aussie Greenie F. Peacock
This cheat-sheet is for you if you are thinking of investing in solar.
If you read it, you'll know more about solar than 99.9% of Americans, be able to go toe-to-toe with a solar salesman, and be confident that you're paying the right amount of money for a properly-sized solar system for your home.
The rest of this website contains lots more information on everything you could possibly need to know about solar. But there is so much information on my website that it can feel a little like tumbling down a rabbit hole.
That's why I posted this 'Solar 101' guide, which should take you about 10 minutes to read.
If you're feeling pretty confident about solar already and you're just looking to get quotes from quality pre-vetted installers that I trust, then simply click here.
Otherwise, here's what you should know before you get quotes for solar:
1. The two main components of a solar PV system.
2. The most important thing to measure before you get solar: how much electricity you use in your home.
3. The solar tax credit: still very much alive and kicking and generous.
4. Don't Get The 'Tax Credit' and 'Net Metering' Confused
5. Roof direction/angle for optimal solar.
6. Typical payback for solar.
7. Costs for quality solar, and why quotes can vary wildly in price.
8. Batteries – do you need them?
Beginners Note: kWh stands for 'kilo-watt-hour.' It is a unit of electricity. It is how we measure how much electricity is used. American homes use a range of 16-42 kWh per day with the average American home using 29 kWh per day .
Note about pro-tips: These are intended for people who like to get a bit more technical. Feel free to ignore them if they don't make sense to you.
Email: bhoran@sunergysolar.solutions
Ph: 858.518.1234
#1 The two main components of a solar system
( A - The panels and B - The Inverter )
( A - The panels and B - The Inverter )
A solar system is made up of:
A-The panels, which can either be monocrystalline or polycrystalline.
A-The panels, which can either be monocrystalline or polycrystalline.
Monocrystalline Polycrystalline
I'm here to tell you that it doesn't matter if you get a mono or a poly panel. What is important is that you buy a good brand that will last 25+ years on your roof.
There are good budget brands and good premium brands. But there are also 'no-name' panels which are re-badged junk, that are unlikely to last more than 3-5 years on your roof. Avoid those at all costs.
Pro-tip: Don't stress over solar panel technology. Mono- and Polycrystalline are both as good in our climate.
You can choose a budget (think Hyundai), regular (think Toyota) or premium (think BMW) solar panel brand. You generally get what you pay for.
You probably don't know a good panel brand from a lemon, and why should you? Here's a handy cheat sheet of most of the popular solar panel brands, so you can see where they sit in the market.
The list is not exhaustive - if you're not sure about a brand, ask me - but the following chart represents over 90% of what's being quoted in 2017 (and is more or less a safe bet):
There are good budget brands and good premium brands. But there are also 'no-name' panels which are re-badged junk, that are unlikely to last more than 3-5 years on your roof. Avoid those at all costs.
Pro-tip: Don't stress over solar panel technology. Mono- and Polycrystalline are both as good in our climate.
You can choose a budget (think Hyundai), regular (think Toyota) or premium (think BMW) solar panel brand. You generally get what you pay for.
You probably don't know a good panel brand from a lemon, and why should you? Here's a handy cheat sheet of most of the popular solar panel brands, so you can see where they sit in the market.
The list is not exhaustive - if you're not sure about a brand, ask me - but the following chart represents over 90% of what's being quoted in 2017 (and is more or less a safe bet):
Starting with the Top End (Most Expensive) Panels
Moving to Premium Panels below
Then to Quality Panels below
To the More Affordable Panels
How to read this list: We consider all of these brands to be reputable and well supported in the US. The brands at the bottom are more affordable. The brands at the top are more expensive.
B-The inverter, which can be either a standard string inverter (which is the size of a briefcase), a microinverter (which is about the size of a paperback book) or an inverter with optimizers. (photos below are NOT to scale)
Standard String Inverter or Micro-Inverter or Inverter with Optimizers
(1 per solar system) (1 per solar panel) (1 Inverter total with 1 Optimzer per panel)
(1 per solar system) (1 per solar panel) (1 Inverter total with 1 Optimzer per panel)
A standard string inverter goes on the wall. All the solar panels connect into it. A microinverter goes on the back of each individual solar panel. An optimized inverter goes on the wall and works with the optimizers which go on the back of each individual solar panel
Pro-tip: Never mount a standard string inverter (central inverter) where it will get full sun. Choose a shaded spot, a cool garage, or ask the installer to build a simple shade over the inverter. Sun kills inverters, because it cooks them.
Micro inverters are great because they optimize each panel individually, which results in more energy.
They are also safer because they use lower voltages - but microinverters usually add about 20% to the total system price.
Pro-tip: If your roof has shade issues you must use either micro inverters or a SolarEdge inverter with optimizers. When using these systems Shade on one panel will not affect the production of the other panels. If using a standard string inverter, shade on one panel will lower the production of the entire string of panels. Keep in mind you can’t always control the height of you neighbors trees.
Pro-tip: Never mount a standard string inverter (central inverter) where it will get full sun. Choose a shaded spot, a cool garage, or ask the installer to build a simple shade over the inverter. Sun kills inverters, because it cooks them.
Micro inverters are great because they optimize each panel individually, which results in more energy.
They are also safer because they use lower voltages - but microinverters usually add about 20% to the total system price.
Pro-tip: If your roof has shade issues you must use either micro inverters or a SolarEdge inverter with optimizers. When using these systems Shade on one panel will not affect the production of the other panels. If using a standard string inverter, shade on one panel will lower the production of the entire string of panels. Keep in mind you can’t always control the height of you neighbors trees.
The job of the inverter is to convert the DC electricity that the solar panels produce into 240V AC electricity, which is what everything in your home uses.
The inverter is the most likely component to fail in the first 10-15 years. This is because they work hard all day, and they do wear out.
So if you are on a limited budget, I recommend getting a premium inverter over premium panels.
Pro Tip: I still recommend a panel brand that is on the chart above, but getting a brand on the bottom of the chart is low risk. However getting an inverter towards the bottom of the chart below increases the risk of a system failure in the first 5-10 years significantly. The premium inverters will last longer and are better supported if they do fail. That's why I say, as long as you get a reputable panel brand, a premium inverter is more important than a premium panel.
Here's a run-down of the popular inverter brands in the US right now, and where they sit on in terms of price and quality (again - this list is not exhaustive, but any reputable installer has a 95% chance of quoting you one of the following brands):
The inverter is the most likely component to fail in the first 10-15 years. This is because they work hard all day, and they do wear out.
So if you are on a limited budget, I recommend getting a premium inverter over premium panels.
Pro Tip: I still recommend a panel brand that is on the chart above, but getting a brand on the bottom of the chart is low risk. However getting an inverter towards the bottom of the chart below increases the risk of a system failure in the first 5-10 years significantly. The premium inverters will last longer and are better supported if they do fail. That's why I say, as long as you get a reputable panel brand, a premium inverter is more important than a premium panel.
Here's a run-down of the popular inverter brands in the US right now, and where they sit on in terms of price and quality (again - this list is not exhaustive, but any reputable installer has a 95% chance of quoting you one of the following brands):
Premium Inverters
Quality Inverters
Budget Inverters
Pro Tip: You can, and should, add up to 33% more panels than the inverter is rated at. For example, I would recommend using 4kW of panels with a 3kW inverter. You'll get 33% more solar rebate and lots more power in winter, mornings and evenings. It's a very efficient use of the inverter.
#2 The most important thing to measure before you get solar: how much electricity you use in your home.
When solar electricity comes out of your panels, it will first get used by appliances in your home, with any surplus solar exported to the grid. Your electricity retailer will pay you for each kWh that you export to the grid through a Net Metering program.
Pro Tip: Your bill only tells you how much energy you use every month. You will want to get a 12 month view of you consumption. A good installer can use this data to more accurately size your solar system for optimum savings.
#3 The Federal solar Investment Tax Credit(ITC): still very much alive and kicking and generous.
The famous 'solar tax credit' provides a 30%(update 26%) credit for installing solar.
As an example, a $28,000 system will net a $8,400 tax credit, netting a system for $19,600.
For more details, click here.
Pro Tip: If the federal solar investment tax credit exceeds your tax liability, you may be able to carry the excess amount forward to the succeeding taxable year.
#4 Don't Get The 'Tax Credit' and the 'Net Metering' Confused
'Net Metering' is the rate you are paid for solar that you export into the grid. In essence, Net Metering is like having the grid serve as an energy storage system.
Some people are confusing the Tax Credit with the Net Metering. The Tax Credit is still alive and kicking and isn't being reduced significantly anytime soon.
One important point to clarify - because Net Metering programs have changed, people believe that solar isn't worth it anymore. This couldn't be further from the truth. Depending upon where you live the Net Metering programs are likely still very beneficial. In some states, other than California, if the Net Metering progam has been reduced more significantly this simply incentivizes you to use your solar generation and not export it.
So – if you’re outside California and your local Net Metering program has been lowered, you just need to consume as much of your own solar as possible. In California we are still able to take advantage of a solid Net Metering program.
For more details, Click Here.
Pro Tip: Both the Federal Tax Credit and Net Metering will be reduced in the near future so it is best to act sooner rather than later. The Federal Government is considering making tax policy changes at this time and may target renewable energy, if so the Solar Tax Credit may go away. If you are considering going solar please understand this is an unfortunate possibility. Act as soon as possible. There are $0 down options that allow early payoffs. You just do not want to miss the 30%(Update 26%) tax credit, a savings of $7,500.00 savings on an average system.
#5 The basics of roof direction/angle for optimal solar system placement.
Panel Direction
The sun rises in the east and sets in the west. This means that east-facing solar panels will produce most of their energy in the morning and drop off in the afternoon. South-facing solar panels will peak in production around midday (and provide the most energy overall). West-facing panels will produce very little in the morning and will produce most of their energy in the late afternoon.
It used to be true that if you couldn't put panels on a south-facing roof, then solar wasn't worth it.
Now that solar system prices have dropped so much (around 80% over the last 7 years), it is economical to have east facing panels, west facing panels, or a combination of south, east and west. In some cases it can even make sense to have north facing panels - although this would be a last resort.
The advantage of east and west facing panels is that they produce more energy in the morning and late afternoon. This often coincides with both breakfast and the family returning from school/work. So a working household can self-consume more solar energy with east and west facing panels, accelerating their solar payback. My system is on our east facing roof, It made the most sense for our situation.
So if you have a working household and east and west facing roof areas, ask your installer about using them.
Panel Angle
The ideal panel angle to maximize the energy produced over the whole year is simply the latitude of your location:
If you're not able to place your panels at the ideal angle, don't worry too much. My panels are at 15 degrees, and I only lose 4% in annual energy yield compared to the perfect angle.
Generally, unless your roof is flat, the ideal angle is whatever your roof is built at.
Pro-Tip: Flat roofs cause problems with water pooling and dirt build up on the panels. A way around this is to use 'frameless' panels which have no frame around the edge, so the water will generally blow over the edge instead of pooling and eating the frame seal. It is often cheaper to use frameless panels than to install tilt racks on a flat roof.
#6 Typical payback period for a solar system.
A well-designed solar system has a typical payback period of around 5-7 years. This can vary wildly depending on your electricity usage and your system size, but when you get quotes for solar the installer should do a payback analysis for you to estimate your payback period.
#7 What price-range can you expect to pay for quality solar, and why do quotes can vary wildly in price?
We're updating the current market pricing; The ITC ruled that the US may add market protective tariffs to solar panels, this will impact solar pricing. Estimates are coming in at $0.40/watt or $2400.00 for a 6.0kw system. As of 10/20/17 the final decision has not been made, we'll have this posted asap.
Note that these prices are prior to the discount from the 'solar tax credit'.
Costs can increase if you need a main panel upgrade or other electrical work to make your home suitable for solar, or if the design of your home makes the install more difficult.
If you decide to go with micro inverters over a central inverter, costs will also increase by approx. 20%.
Adding battery storage (for an off-grid or hybrid system) will at least double the price of the system.
If you're quoted much less than these price ranges by a solar salesman, chances are they're cutting corners somewhere, omitting items that will be added(up charges) once the project has started or using inferior quality products to deliver a lower overall cost. So, be wary!
Pro Tip: Really cheap solar costs more in the long run, from repairs and lost output. Avoid it. It breaks my heart to see cheap solar panels go to landfill after a few years.
#8 Batteries - do you need them?
If you want to avoid power outages, otherwise Battery storage is usually not a good investment. Check into California's Self Generation Incentive Program to see if you qualify for the rebates.
Self-Generation Incentive Program The CPUC's Self-Generation Incentive Program (SGIP) provides incentives to support existing, new, and emerging distributed energy resources. SGIP provides rebates for qualifying distributed energy systems installed on the customer's side of the utility meter. Qualifying technologies include solar energy storage systems.
SGIP reopened to energy storage applicants on May 1, 2017. Demand for energy storage incentives was very high and Step 1 (.50/kWh) for energy storage was closed after one week. Step 2 (.40/kWh) for energy storage applicants opened on June 5, 2017. Step 3 (.35/kWh) will open after Step 2 funds are exhausted. SGIP continues to have funds replenished, check into the current status to learn more.
#2 The most important thing to measure before you get solar: how much electricity you use in your home.
When solar electricity comes out of your panels, it will first get used by appliances in your home, with any surplus solar exported to the grid. Your electricity retailer will pay you for each kWh that you export to the grid through a Net Metering program.
Pro Tip: Your bill only tells you how much energy you use every month. You will want to get a 12 month view of you consumption. A good installer can use this data to more accurately size your solar system for optimum savings.
#3 The Federal solar Investment Tax Credit(ITC): still very much alive and kicking and generous.
The famous 'solar tax credit' provides a 30%(update 26%) credit for installing solar.
As an example, a $28,000 system will net a $8,400 tax credit, netting a system for $19,600.
For more details, click here.
Pro Tip: If the federal solar investment tax credit exceeds your tax liability, you may be able to carry the excess amount forward to the succeeding taxable year.
#4 Don't Get The 'Tax Credit' and the 'Net Metering' Confused
'Net Metering' is the rate you are paid for solar that you export into the grid. In essence, Net Metering is like having the grid serve as an energy storage system.
Some people are confusing the Tax Credit with the Net Metering. The Tax Credit is still alive and kicking and isn't being reduced significantly anytime soon.
One important point to clarify - because Net Metering programs have changed, people believe that solar isn't worth it anymore. This couldn't be further from the truth. Depending upon where you live the Net Metering programs are likely still very beneficial. In some states, other than California, if the Net Metering progam has been reduced more significantly this simply incentivizes you to use your solar generation and not export it.
So – if you’re outside California and your local Net Metering program has been lowered, you just need to consume as much of your own solar as possible. In California we are still able to take advantage of a solid Net Metering program.
For more details, Click Here.
Pro Tip: Both the Federal Tax Credit and Net Metering will be reduced in the near future so it is best to act sooner rather than later. The Federal Government is considering making tax policy changes at this time and may target renewable energy, if so the Solar Tax Credit may go away. If you are considering going solar please understand this is an unfortunate possibility. Act as soon as possible. There are $0 down options that allow early payoffs. You just do not want to miss the 30%(Update 26%) tax credit, a savings of $7,500.00 savings on an average system.
#5 The basics of roof direction/angle for optimal solar system placement.
Panel Direction
The sun rises in the east and sets in the west. This means that east-facing solar panels will produce most of their energy in the morning and drop off in the afternoon. South-facing solar panels will peak in production around midday (and provide the most energy overall). West-facing panels will produce very little in the morning and will produce most of their energy in the late afternoon.
It used to be true that if you couldn't put panels on a south-facing roof, then solar wasn't worth it.
Now that solar system prices have dropped so much (around 80% over the last 7 years), it is economical to have east facing panels, west facing panels, or a combination of south, east and west. In some cases it can even make sense to have north facing panels - although this would be a last resort.
The advantage of east and west facing panels is that they produce more energy in the morning and late afternoon. This often coincides with both breakfast and the family returning from school/work. So a working household can self-consume more solar energy with east and west facing panels, accelerating their solar payback. My system is on our east facing roof, It made the most sense for our situation.
So if you have a working household and east and west facing roof areas, ask your installer about using them.
Panel Angle
The ideal panel angle to maximize the energy produced over the whole year is simply the latitude of your location:
If you're not able to place your panels at the ideal angle, don't worry too much. My panels are at 15 degrees, and I only lose 4% in annual energy yield compared to the perfect angle.
Generally, unless your roof is flat, the ideal angle is whatever your roof is built at.
Pro-Tip: Flat roofs cause problems with water pooling and dirt build up on the panels. A way around this is to use 'frameless' panels which have no frame around the edge, so the water will generally blow over the edge instead of pooling and eating the frame seal. It is often cheaper to use frameless panels than to install tilt racks on a flat roof.
#6 Typical payback period for a solar system.
A well-designed solar system has a typical payback period of around 5-7 years. This can vary wildly depending on your electricity usage and your system size, but when you get quotes for solar the installer should do a payback analysis for you to estimate your payback period.
#7 What price-range can you expect to pay for quality solar, and why do quotes can vary wildly in price?
We're updating the current market pricing; The ITC ruled that the US may add market protective tariffs to solar panels, this will impact solar pricing. Estimates are coming in at $0.40/watt or $2400.00 for a 6.0kw system. As of 10/20/17 the final decision has not been made, we'll have this posted asap.
Note that these prices are prior to the discount from the 'solar tax credit'.
Costs can increase if you need a main panel upgrade or other electrical work to make your home suitable for solar, or if the design of your home makes the install more difficult.
If you decide to go with micro inverters over a central inverter, costs will also increase by approx. 20%.
Adding battery storage (for an off-grid or hybrid system) will at least double the price of the system.
If you're quoted much less than these price ranges by a solar salesman, chances are they're cutting corners somewhere, omitting items that will be added(up charges) once the project has started or using inferior quality products to deliver a lower overall cost. So, be wary!
Pro Tip: Really cheap solar costs more in the long run, from repairs and lost output. Avoid it. It breaks my heart to see cheap solar panels go to landfill after a few years.
#8 Batteries - do you need them?
If you want to avoid power outages, otherwise Battery storage is usually not a good investment. Check into California's Self Generation Incentive Program to see if you qualify for the rebates.
Self-Generation Incentive Program The CPUC's Self-Generation Incentive Program (SGIP) provides incentives to support existing, new, and emerging distributed energy resources. SGIP provides rebates for qualifying distributed energy systems installed on the customer's side of the utility meter. Qualifying technologies include solar energy storage systems.
SGIP reopened to energy storage applicants on May 1, 2017. Demand for energy storage incentives was very high and Step 1 (.50/kWh) for energy storage was closed after one week. Step 2 (.40/kWh) for energy storage applicants opened on June 5, 2017. Step 3 (.35/kWh) will open after Step 2 funds are exhausted. SGIP continues to have funds replenished, check into the current status to learn more.
SGIP example with 2 popular batteries
LG Chem Battery
Capacity 9.8 kWh Power 5.0 kW Max Incentive - $3,430 (SGIP Step 3) |
Tesla Powerwall 2 Battery
Capacity 13.2 kWh Power 5.0 kW Max Incentive - $4,620 (SGIP Step 3) |
Without the SGIP - it will cost about $13,500 to add a Tesla Powerwall onto a solar system. A typical payback period of a Tesla Powerwall is about 10-12 years, but it only has a 10 year warranty. You'll most likely have to replace the battery before it has paid for itself. There are alternatives to the Tesla system that are of equal quality at a better value.
Compare this with solar without batteries. A regular non-battery solar PV system has a typical payback of around 5-7 years, and will last about 25 years.
This means that once you hit the point where the savings of the system have paid it off, you should have another ~20 years of free electricity to collect from the system.
So - if you are buying batteries in the hope of saving money, battery storage might make sense if you can take advantage of SGIP. If you miss out on SGIP, our advice is to wait 3-5 years for battery costs to come down before investing in them.
If you miss out on SGIP certainly don't wait for batteries to come down in price before buying solar, because that is locking in another 3-5 years of high bills every month.
If you buy a system now, your bills will immediately be reduced. In 3-5 years you can simply add batteries to your existing system for even greater savings.
Compare this with solar without batteries. A regular non-battery solar PV system has a typical payback of around 5-7 years, and will last about 25 years.
This means that once you hit the point where the savings of the system have paid it off, you should have another ~20 years of free electricity to collect from the system.
So - if you are buying batteries in the hope of saving money, battery storage might make sense if you can take advantage of SGIP. If you miss out on SGIP, our advice is to wait 3-5 years for battery costs to come down before investing in them.
If you miss out on SGIP certainly don't wait for batteries to come down in price before buying solar, because that is locking in another 3-5 years of high bills every month.
If you buy a system now, your bills will immediately be reduced. In 3-5 years you can simply add batteries to your existing system for even greater savings.
Pro Tip: Counter-intuitively, battery systems will not provide backup when the grid goes down. If you really need backup then you must specify this up front, as it is often an expensive extra feature that requires careful design and some rewiring of your main panel.
The next step.
So there you have it, a 101 guide to solar for your home.
If you have any burning questions, my contact details are:
Email: bhoran@sunergysolar.solutions
Ph: 858.518.1234
If you're considering installing solar panels for your home or business, Sunergy Solar can help you get quotes from high-quality, pre-vetted installers quickly and easily.
So there you have it, a 101 guide to solar for your home.
If you have any burning questions, my contact details are:
Email: bhoran@sunergysolar.solutions
Ph: 858.518.1234
If you're considering installing solar panels for your home or business, Sunergy Solar can help you get quotes from high-quality, pre-vetted installers quickly and easily.
Always updating/Under construction; check back