Home Solar Panels Solar Service
Written by Rick Peters

Solar Plus Storage is Ready for Prime-Time Backup Power for your Home

As we’ve seen the cost of solar drop rapidly in the last ten years (more than 80%), we continued to endure those naysayers in the distance arguing that “no matter how cheap you make solar; much like wind, it will never dominate the energy landscape because of intermittency.” It’s hard to believe people still say “Never” in the context of technology? That term only provokes our great American drive and ingenuity, which continues to deliver. Witness electric storage costs have dropped 80% in the last eight years, outpacing the dramatic solar cost reductions!

Battery technology today

Today, electric batteries continue to back up solar in more and more markets every year. Batteries are giving solar system owners a lot more control and choice about energy independence, while giving grid operators a game changing tool to help manage the modern grid with greater economic efficiency. We’ll talk more about the how and why, later in this post.

Storage market is heating up

So far SES has contracted for 7 battery installs already this year in Maryland, up dramatically from 2017. The residential solar plus storage market has begun to take off in many markets. In fact, the preferred battery suppliers were out of stock for more than 4 months this year, both from increased demand to complement solar projects, but also due to the soaring demand increase for Electric Vehicles (EVs) that use the same battery technologies.

Storage is like bacon

Why is storage so valuable? One of my favorite energy experts, Katherine Hamilton (https://38northsolutions.com/team/bios/) once said that “storage is like bacon, it makes everything better.” Storage has almost a dozen value streams that can be monetized now or in the future. The two biggest and most obvious value streams are that it can provide extra capacity in times of high demand, and it can provide extra demand in times of excess capacity. In both cases, it provides stabilizing value to the grid and more efficient use of generating assets.

A testament to the value of storage on the grid was seen several years ago when the California Public Utilities Commission required utilities to procure a minimum amount of storage. Not only did the major utilities comply, they all procured more storage than mandated. They are well aware, storage helps them modulate an increasingly dynamic and decentralized grid.

Residential Solar Panels Anne Arundel County MD

Why should I consider solar plus storage for my home?

If you deploy solar along with your energy storage solution, you can utilize the same federal tax benefits as you do for solar, namely the 30% investment tax credit. In Maryland, you are eligible for an income tax credit on the storage portion of the system, in addition to the other state solar incentives (https://energy.maryland.gov/business/Pages/EnergyStorage.aspx). As a result, the economics in Maryland for residential solar + storage are much improved from a few years ago.

The main reason our residential customers are deploying energy storage is for backup power during a grid outage. This is typically done by way of an essential loads subpanel in their electric system. SES often installs these subpanels as part of our solar + storage project.

Another factor driving this trend is a residential customer’s desire to position themselves to cut the cord in the future, if the utility relationship becomes unappealing or uneconomical for them.

Lastly, future changes to electric rate design and/or net metering policy, could present solar + storage owners the ability to increase their savings or even generate revenue from the services that their frequently-idle storage can provide.

Are you building a new home and want to be sure it is ready for the energy architecture of the future? It’s easier than you think. Ask your builder or electrician to insure you have an essential loads subpanel (to use with electric battery storage, or possibly a generator). Secondly, request they install an empty (capped) electrical conduit from attic to electric room for us to easily add your solar energy conducting wire in the future.

Please see Roger Perry’s technical writeup on residential storage applications recently implemented by SES.

What has brought about this market opportunity?

Electric storage has long been an essential part of any true off-grid solar/wind application and this is where the earliest developments have taken place. As solar began to penetrate the grid in the last 10 years, there has been a lot of R&D investment in this future “holy grail” of renewable energy development. The investment is now paying off.

Storage broke into the US grid-tied market about five years ago. In the case of Hawaii, it was mostly a market driven change. Extremely expensive power, a grid congested with rapid solar growth, denials and delays of solar interconnection applications, and abundant sunshine, all contributed to the new paradigm. This resulted in economics that justified a certain segment of residential customers in Hawaii to cut the cord and embrace storage as a long-term solution. This sent an alarming message to utilities around the world: You better embrace these changes or plan to go the way of the buggy whip!

At about the same time, California’s PUC mandated a specific quantity of storage on the grid, much of it behind the meter. The utilities went on to exceed that mandate in the first auction and later in 2017, the target was increased again, with little to no resistance. In the past year, we’ve seen California utilities choose new battery storage over new gas fired peaker plants to meet peak loads in three separate cases. This is a tremendous validation of the economics of storage, particularly in an age of record low natural gas prices.

What’s ahead for energy storage?

The horse is out of the barn. Distributed energy generation combined with storage, will be the foundation of the future electric grid. The role that storage will play in this transformation will be enormous at the macro level, but somewhat uncertain at the micro level due to regulatory policy, incentives, and local market conditions.

We should expect to see strong storage growth in markets with the following attributes:

  • Places where local or state incentives are promoting storage – Maryland is one of them.
  • Markets where system owners can capture supplemental revenue from their storage investments (Our grid operator, PJM has piloted bundling distributed storage as a revenue generating resource for storage system owners)
  • Markets with high electric rates or Time of Use (TOU) rates.
  • Markets where electric “demand charges” represent a large cost for commercial and industrial (C&I) customers. This is because storage can dramatically lower a building’s electricity demand profile, and thus add energy bill relief to a portion of the bill where solar has had limited impact.
  • Microgrids are increasingly popular, particularly with campus style environments and military installations. These applications will increase storage demand and further drive down costs through scale and experience.

Next steps

Be sure to contact SES if you are interested in solar + storage. We will be happy to design a system that is customized to your needs. As always, we’ll provide you all the support you need to capture the Maryland solar grant and the storage tax credit (which has a limited budget) so contact us right away.

Solar Energy Solar Panel Washington DC Solar
Written by Roger Perry

Practical Considerations for a Battery System

As long as I’ve been doing solar, people have been asking about batteries. The response has always been “yes, we can do them, but it will cost a lot”. That usually ended the conversation.

One question to ask is “why do you want batteries?” Do you lose power frequently? If not, a portable generator will keep your refrigerator, freezer, computers, tv and some lights going. Downsides are; noise, fumes, refueling, having to run extension cords to where needed and putting everything away when power comes back. Not too bad once in a while and it’s very cost effective. Just hope you aren’t out of town when power goes out. There is nothing automatic about this set-up.

If you lose power often and don’t want to do the portable generator dance every few months, you can get a permanently installed generator with automatic start. These are close to $5000 installed for the ones that will run most of your house when the power goes out (a larger one can be installed for a few thousand more that will run everything). This is what hospitals and critical buildings use. Power goes out, the generator starts automatically and powers the house with only a momentary loss of electricity.

Downsides? Noisy, they need maintenance and, if propane or diesel powered, they need the fuel tanks to be kept filled.

What if you lose power often, don’t want the noise, maintenance and fuel expense of a generator? What if you want a system that is environmentally friendly, will turn on automatically, is silent, will run pretty much nonstop without refueling? You should look into installing a battery back-up system connected with a solar system.

What are the downsides? Well, cost is one. While not as expensive as in years past, battery back-up systems are still costly. Compared to a permanently installed generator, battery backups tend to run few thousand more. Ask your accountant but you may be able to take the 30% solar tax credit on the additional cost of the batteries. This brings the price in line with a generator.

Another downside is you can’t run everything in your house. Things a battery cannot run for any length of time are air conditioners or heat pumps, electric water heaters, electric dryer or electric ranges. What they can run are gas or solar water heaters, gas or oil boilers, refrigerators, freezers, lights, tvs, computers, fans and pretty much everything else. Well pumps are on the edge depending on how efficient they are. While running a modern variable speed well pump is not an issue, older well pumps require a large startup current which can be too much for the battery to handle. We are about to install a “soft start” control to try and reduce a well pumps surge demand for one of our customers but the jury is still out.

We are now installing LG Chem lithium Ion batteries. LI batteries have a lot of advantages over the old lead acid batteries. The big advantage they have is they are not damaged by running them dead, whereas lead acid batteries do not like being discharged to less than 50% of charge, a Lithium Ion battery will give you it’s full rating. The one we use is rated for 10 Kilowatthour (KWH). A lead acid battery would need to be rated at 20 KHW to achieve the same capacity. Lithium batteries are also much lighter (not that the customer will have to move them) and can be charged much faster.

The big downsize of LI batteries is the upfront cost compared to LA but they will last much, much longer and they are maintenance free.

In a future blog I will discuss the two different ways to interface a solar system with the batteries, AC coupled and DC coupled and the pros and cons of each as well as what a 10 KWH battery will give you as far as run times for various appliances. I’ll also talk about how a battery system can be retrofitted to your existing solar system.

Written by Lisa Walsh

Incentives for Electric and Hybrid Cars in DC

Washington DC’s government is encouraging the ownership of electric and hybrid cars with incentives that will save you time and money. For one, if you own an electric vehicle, you are exempt from emissions testing. If your car emits nothing, there is nothing to test. You simply need to register it with the DMV in DC. And if your car is a hybrid that is both electric and gas powered, you only need to pass a smog test. For questions about this, you can call the DC Department of Motor Vehicles at (202) 737-4404.

Fuel Efficient Cars get Reduced Registration Fees

You can also qualify for a discount on the first-time vehicle registration for a qualifying electric, hybrid or clean fuel vehicle. Their rules state that your car must get at least 40 miles per gallon in city driving. Check www.fueleconomy.gov to see how your car rates. You also must be the original owner of the car. If your car is used, you are eligible for the excise tax exemption. This exemption is the tax you pay upon purchase of a vehicle. So, the exemption can be a nice savings for you.

You might also qualify for federal tax credits. Eligible cars include electric, hybrid, plug-in hybrids, diesels and alternative fuel vehicles. Ask your accountant about how this might benefit you. And another benefit is that your insurance company might offer a discount. If they don’t, you might want to call around to find a carrier that does. These savings can really add up.

And finally, if your business has a fleet of 10 or more clean fuel automobiles, you can qualify for an exemption to the HOV lane. Again, call the DC DMV at (202) 737-4404 to find out about this benefit. Going electric and fuel efficient will put you in the fast lane in so many ways.

And, of course, we are always available to help you power your electric car with solar panels at your home, in your community or at your business. Please contact us if you have questions about generating most, or all, of your energy from solar.

Residential Solar Panels, Solar Installer
Written by Lisa Walsh

Solar on Slate Roofs in Washington DC

Residential Solar Panels, Solar InstallerWith Washington DC offering homeowners the best solar incentives in the country – its small wonder that solar panels are going up like hotcakes. In order to meet the demand, most solar installers are adept at designing and efficiently installing solar panel systems on most roof types in DC: namely flat roofs and asphalt shingle. However, homeowners with a traditional slate roof will need to shop around for a qualified, slate-savvy installer.

Slate Roof Challenge

Washington DC Solar,Solar ServiceIn this order, the most common types of residential rooftops in Washington DC are flat, asphalt shingle and slate. Asphalt shingle are generally the simplest type of roof to attach to. They are flexible, soft and flashing/sealing all of the attachments has been fine-tuned to near perfection by the solar industry. Flat roofs are generally installed using no/few penetrations either with parapet-to-parapet rails or ballast-weighted systems. Slate, however, is among the most challenging roof type to work on for the following reasons:

  1. Expertise Tools and Labor Required

    Solar Service, Home Solar PanelsTraining a work crew adept at installing solar on a slate roof takes a significant investment of time, tools and techniques. As slate is a type of stone material – specialized diamond-tipped drills and copper replacement nails are required to penetrate and reattach the slate; drill too fast – and you’re likely to break the slate. Even with the most cautious of installers, a number of slates are still likely to end up broken and spares need to be kept on hand. Ideally – artificial slate can be used for replacing broken slates. Specialized flashings designed for use with the larger slate tiles must be used to seal around the attachment.

  2. Additional Labor

    Due to the fact that slate is essentially a smooth, slippery thin stone – this can be particularly challenging for installers to navigate. Couple this with a steep pitch, and extended hours on the roof due to time-consuming drilling techniques, labor estimates can easily double or triple when compared to an asphalt shingle roof; not to mention a particularly challenging and long day(s) for the installation crew.

The above two points ultimately result in increased costs for the customer. Fortunately, for DC residents with slate roofs, the financial incentives are such that paybacks are still generally under (or around) the 5 year mark – with many years of clear income to follow. Furthermore, as slate roofs can last 100 years or more, the roof and solar combination is set for a minimum 25 year relationship – and likely a good decade beyond that.

Home Solar Panel ,Solar Service
Written by Rick Peters

Peters’ Journey to Net Zero

Solar Service,Home Solar PanelsWhat Net Zero Meant for Us? Our Severna Park based, four-person family was looking to offset some of our home’s dirty energy, but we really did not have an expectation we could offset it all, but we had to start somewhere. We took our first step shortly after I joined the solar industry in 2008.

Low Hanging Fruit. In February 2009, we installed a 120-square foot solar water heating system to offset most of our water heating, and a small portion of our space heating for the first floor of our home. We saw big savings from this 3-panel system right away. Ever since, I enjoy the act of turning off the back-up water heating in April and leaving it off until almost October. For us, offsetting a dirty and expensive oil-fired boiler was the obvious low hanging fruit. We would later convert that remaining load to natural gas when the utility extended the pipeline to our home.

Solar Electric (PV) With the rest of the heat, A/C, and appliances all running off electric, it was time to look at the next opportunity. A few years later, when budget allowed, we decided to add a 5 kW solar PV system to our second story roof which faces SSE. My best determination was that we offset just over 40% of our electric load with that PV system. We were happy, but knew we’d want to find a way to get to NetZero eventually. , . I began to evaluate the remaining rooftops and consider what it would take to get us there. Solar panel efficiencies had improved a lot over the past several years so this reduced the remaining roof space we’d need to hit our goal

Phase 2 (PV). In the spring of 2016 we finished filling the balance of the south roof with some slightly higher wattage panels. As part of the same expansion, we added 24 relatively high efficiency panels to the E/W, low slope, rooftop of our one-story garage. We now had a total of 6.6 kW Equivalent of solar thermal and 13.8 kW of PV.

Not There Yet….We almost tripled our PV with the last upgrade and according to my calculations, this would get us to NetZero electricity. We’d know for sure by April, the annual true-up time frame for netmetering with BGE. When April 2017 came around, we were disappointed to come up a bit short (unfortunately, with a couple teenagers in the house, my usage predictions were a little off). Where do we go from here? I was not ready to put panels on the north roof, there had to be something available to us on the demand side.

Oops – More Low Hanging Fruit…One thing about Energy Efficiency, there’s always more opportunity. I had changed out many bulbs to LED over the prior several years, mostly through attrition, but I had not replaced any of the more than 2 dozen canister lights we had throughout the ceiling upstairs and down. Not only were these lights very inefficient, but the heat they generated in the summer was just adding to our air-conditioning load. We found the LED replacements on sale and replaced them all, as well as the remaining few incandescent lights in the house.

Commercial Solar Energy,Solar ServiceEureka. we have arrived!… In April of 2018 we received a $46 check from BGE for the annual overage from solar. With the kids heading off to college soon and a new refrigerator around the corner, I’m confident our checks from BGE will be getting bigger for the near future. At least until we purchase an electric car…

Solar Service ,Home Solar Panels
Written by Lisa Walsh

Poly Vs Mono Panels for Residential Solar Installations

IfSolar Service, Home Solar Panels,Commercial Solar Service ,Annapolis MD – like most educated consumers – you’re getting multiple quotes for your solar power installation, you’re probably having to compare between various equipment offerings by your solar vendors. Themostprominent of these offerings – both in terms of financial investment and warranty security –are the solar panels themselves.

Solar panels come in a variety of power ratings. For residential applications, the most popular panels today usually fall somewhere between 270 watts and 315 watts, with price points that usually increase with the wattage (in the standard size footprint). Less obvious, however, is the type of solar panel you may be asked to choose between.

In general, your solar quote will include a panel whose cells are made from crystalline silicon. Silicon is us

ed in solar panels not necessarily because it’s the most optimum semi-conductor available – but because of the extensive research on the processing and physics of silicon grown out of the integrated circuit industry. The processes used to access and arrange the silicon determine whether a panel is deemed to be

As the name suggests, monocrystalline panels utilize a single, continuous crystal structure in the processing of the silicon ingots from which the solar cells are made. It used to be that this high-grade silicon resulted in substantially higher efficiency rates than other solar panels. However, improvements to manufacturing in polysilicon processes have closed this gap significantly. Still, homes and businesses looking for the highest possible efficiency rating on a solar panel would likely choose a Mono panel.

The silicon ingots used for manufacturing the solar cells for Poly panels are manufactured by melting many fragments of silicon together to form the ingot. Because this results in many crystals in each cell, there is usually less freedom for the electrons to move. As a result, polycrystalline solar panels typically have lower efficiency ratings than monocrystalline panels.

Should I choose a Mono or Poly solar panel?

As with any choice it comes down to buyer preference:

Aesthetics: In general, Mono panels have more options if you are concerned with how your solar panels will look. If you want something low-profile; maybe a uniform, all-black aesthetic devoid of white lines, silver racking and diamonds – most manufacturers offer this aesthetic in a Mono panel. However, there are now a few poly panels available in all-black. For example, REC has a 280-watt poly panel on the market that is now available in all-black.

Cost:  Mono panels tend to cost more than poly panels. A small roof looking to get the highest possible solar fraction by going with a high wattage solar panel will most likely end up with a Mono panel as these include the highest wattage options (300w plus). However, if a homeowner has the roof space and is looking for the highest possible value, it may be most cost-effective expand the array by one or two more panels and go with a Poly. Many commercial applications utilize poly panels due to the focus on cost over aesthetics, particularly if the panels are not visible from the ground, due to a flat roof installation.

Performance:  Due to the amount of information out there disparaging efficacy of poly panels compared to monos, this is a subject worth broaching. It is true that under factory test conditions, poly solar panels tend to have slightly lower heat tolerance than monocrystalline solar panels. As a result, under high temperatures, poly panels would perform slightly worse than their mono counterparts. Heat can affect the production performance of solar panels and shorten their lifespans. However, this effect is minor, and most homeowners do not need to take it into account. This is evidenced by the standard 25 year manufacturer’s warranty is the same for both mono and poly panels.

Washington DC Solar, solar renewable Energy,
Written by Lisa Walsh

Washington DC Solar Owners and Selling Solar RECs Upfront

Solar Service ,Home Solar Panels

Before we dive into this conversation – let’s be clear that SRECs (Solar Renewable Energy Credits) can be the most confusing part of figuring out the economics of a solar project.  Let’s also be clear that – as with anything confusing, (as well as possibly boring) – the temptation is to remove the confusion as quickly as possible.   In the world of solar installation and selling SRECs this sometimes translates to simply selling up to 15yrs of SRECs all at once to a solar installation company, who then installs the system at a bargain price.  Buyer beware – the immediate gratification of selling all of your SRECs in one fell swoop could be misleading.   When it comes to How and When you get paid for your SRECs “…the Sooner the Better”  may not be a sound financial strategy.

That said…Let’s talk Solar Renewable Energy Credits in Washington DC.

Both Maryland and Washington DC, along with eight other states have enacted the Renewable Portfolio Standards which specify that a certain amount of the renewable energy generated within that state must come from solar.   Whether residential, commercial, or institutional, each time a solar system generates 1 Megawatt hour of energy – the solar system owner generates 1 SREC.  This SREC is then sold via aggregators to an  SREC market where it is bought by Power Companies to allow them to meet their share of the compliance obligation, or else pay a legislated fine (Alternative Compliance Payment, or ACP) for every SREC they are short.  Washington DC currently generates the highest SREC values in the country largely due to the fact that the District does not have the real estate to install large solar farms which can oversupply the market and drive down SREC prices.

How Much is an SREC worth?

The value of an SREC in a particular market is dynamic due to two primary factors

  1. by design, SRECs values are intended  to decline over time.  The legislated ACP which serves as a ceiling to the SREC price is usually scheduled to decline in future years. Among other factors, increased installations should lead to decreased system costs and less need for SRECs to help finance a solar system.
  2. The other reason for variations is due to market mechanisms.  Brokers buy and sell SRECs in order to help make a market for them.  When the market is undersupplied, SRECs trade high, at a price close to the penalty (ACP).  This is good for those selling SRECs.  If the market is oversupplied (like Maryland is currently), then SREC prices in that market will decline well below the penalty – not so good for those selling SRECs. Varying SREC payment options are intended to allow system owners to buy down their SREC price risk. The difference between an Upfront Payment option and a Brokerage Payment option (market price) can be many thousands of dollars to a solar system owner.  In an undersupplied market like DC, where there is very little price risk for SRECs, that upfront payment option leaves a lot of money on the table.

How many SRECs will my system generate?

The number of SRECs any given system will generate depends upon the output of your system.  For example, an optimized (as in good and sunny) 5.0 kW system in Washington DC would generate close to 6.0 SRECs/year.

How and When would I receive my SREC income?

SRECs are most commonly sold through an SREC aggregator/broker such as Washington DC-based SolSystems.  However, SRECs here in the District are so valuable – as well as stable – that solar panel contractors are also offering to buy your SRECs and simply deduct the upfront payment off the cost of your solar installation.  So THIS is the heart of this article:  Solar owners have 3 choices for how to get paid for their SRECs:

  1. Upfront Payment (all SRECs are forfeited for a 5yr or 15yr period)
  2. 3yr, 7yr or 10yr Annuity Contract (SREC prices Locked-in for a specific term)
  3. Brokerage (Current market price less broker commission).

Sticking with the aforementioned 5kW system example, the following table illustrates projected SREC values for the system, using current SREC prices (November 2016) offered by a competitive SREC aggregator).

System Size = 5kW                            SREC per Year = 6

So, reviewing the column above, this Washington DC Homeowner with a 5.0kW system has these financial options to choose from:

$$$$$:  Brokerage = $32,101.85 over 25yr life of systems (as warrantied)

$$$:  *Annuity =  $18,690 guaranteed then sign-up for another annuity or go Brokerage

$:  Upfront = $8025.60  SRECs cannot be sold again until 2032.

*Annuity is also available in 3 or 5 yr increments, as well as the 10yr

The Brokerage price is exponentially higher than the other prices, does that mean there’s a lot of risk?

Some risk – yes, because you’re not locked-in to a static price.   But remember – historically DC SREC pricing has remained stable (the geography does not accommodate  huge solar farms that can flood the DC SREC market).  You can receive an email monthly that allows you to check on current pricing AND should the price start to decline – you can, at any point in time, switch to an Annuity.  .

If I choose the 10yr Annuity Option and lock-in my SREC pricing, what happens at the end of that time period?

You simply choose another payment option being offered at the time of contract experation.  Maybe you’ll opt for brokerage – or another annuity, up to you.  Same with the Upfront Payment, after 15 years.

How do I receive my SREC income?

Via check from the SREC aggregator which most pay quarterly (except with the Upfront Payment option which would be one-time).   This generally starts around two months after your system has been interconnected by your Utility and the SREC contract set-up.   We do advise that the contractual SREC relationship be kept between a professional broker/aggregator and the solar system owner.  Third parties, such as the solar panel installation company, may find themselves in a conflict of interest.

If the solar system installer is not buying my SRECs, who sets up the contract?

Most reputable solar panel installation companies will coordinate the initial set-up of your SREC contract with an SREC aggregator, as they have immediate access to the documents required for the initial set-up (Passed Building Permit, Interconnection Approval etc.).  Many installers have one or two aggregators they’re used to dealing with – or you may choose your own.

solar energy, renewable,
Written by Rick Peters

PACE Solar Financing in Maryland and Washington DC

Typical Commercial Challenges

As veterans of the small commercial solar market in this region, we are very familiar with the challenges of financing solar energy systems to this group of property owners.  Small businesses want solar as much or more than any other market segment, but they are capital-constrained like no others so they need affordable financing.

Third party solar developers have been the answer for other markets.  They can easily finance large systems because the cost of assessing the applicant’s credit is well worth the return.  In the case of residential systems, they can use universal tools like credit scores to help manage their risk.  For the small commercial and non-profit market, there hasn’t been a super-attractive  way to finance solar, until now!

Commercial Solar Systems Now Recognized as Public Benefit

Washington DC and Maryland now have laws and programs in place for commercial (and nonprofit) property owners to utilize PACE.  Property Assessed Clean Energy (PACE) is a vehicle that is used to finance energy improvements for buildings.  It operates under the recognition that energy improvements are considered to be a public benefit.  As such, PACE uses the property tax as a vehicle to structure the financing payments – much like we would finance a sewer extension, but in this case specific to one property.

PACE is very appealing to property owners because they can add significant value to their building on a cash-flow-positive basis without personal guarantees or the application of additional debt to the balance sheet.  The financing payment must be less than the savings and it’s paid in the form of a special assessment on the property tax bill over the term of the financing arrangement (5-25 years at competitive rates).  Multiple energy improvements (i.e. lighting, solar, new roof) can be bundled into one financing package.

The best thing about this approach to financing solar is that the property owner will own the system, not a third party.  The property owner gets all of the benefits, including the energy savings, the substantial incentives, the marketing value, and the satisfaction.  All it costs them is the interest on the financing which pales in comparison to the savings.

More info is available on your webpage on our PACE webpage but you may just want to pick up the phone and call us to see if your property is eligible.

Solar Service ,Home Solar Panels
Written by Lisa Walsh

DC Property Owners: Big Hot Water load = Big Solar Incentives

Commercial Solar Service, Annapolis MD

A growing number of building owners, developers and condo associations in the District of Columbia have come to realize that their building happens to be located in the most solar-friendly city in the USA .  Solar contractors, investors and financing vehicles are falling over each other to get solar panels on District roofs and start generating  the lucrative solar renewable energy credits (SRECs).   Whether via Direct Purchase, or $0 solar leases – SRECs are undoubtedly the reason for the solar season in DC (more to follow on those below).

However, before you sign on the dotted line and fill your roof with a 25-year solar PV (electric) system, as offered by 9 out of 10 solar professionals, make sure that you’re not losing the opportunity to vastly increase your return on investment with a Solar Thermal System.

Solar Water Heating Feasibility

The pre-qualification for a Solar Thermal System involves three questions:

  1. Does your building have a substantial, daily (365 day) hot water need? (i.e. apartment building/condos, restaurant, laundry, brewery, health center)
  2. Does your building have a centralized water heating system (as opposed to individual units throughout the building)?
  3. Can the building accommodate additional storage tanks?

If you answered YES to these three questions you really (really) should first consider a Solar Water Heating system either before – or at a minimum – in tandem with, a solar PV system.  (Shopper Beware – unless your solar contact has experience with solar thermal – which many do not – you’re going to have to be prepared to shop further).

What is Solar Water Heating (or Solar Thermal)?

Other than using the sun for energy generation, Solar Water Heating Systems operate entirely differently from their electron-shaking PV counterparts.  These time-tested, technologically mature systems are mechanical in nature and relatively simple.

Moreover, a solar thermal panel is 60 – 70% efficient; whereas a solar PV (electric) panel is typically 17 – 24% efficient.  Therefore, solar thermal panels generate substantially more energy per square foot than PV panels,  monetizing many more SRECs.

Solar Service , Home Solar Panels, Solar Renewable Energy

 

Let’s Review SRECs…

SRECs (Solar Renewable Energy Credits) – along with the 30% Federal Tax Credit and 100% Year 1 depreciation– are what drive the tremendous economic benefits of solar in Washington DC; one of several jurisdictions that have enacted a Renewable Portfolio Standard requiring that a specific percentage of electricity consumed must come from solar.   Whether residential, commercial, or institutional, each time a solar system generates 1 Megawatt hour of energy – the solar system owner generates 1 SREC.  This SREC is then sold via aggregators to an SREC market where it is bought by competitive energy suppliers to allow them to meet their share of the compliance obligation, or else pay a legislated fine (Alternative Compliance Payment, or ACP) for every SREC they are short.  Washington DC currently generates the highest SREC values in the country, largely due to the fact that DC does not have the real estate to install large solar farms which can rapidly oversupply a market and drive down SREC prices.

How much are SRECs Worth?

Washington DC SRECs are currently trading at $395/SREC.  To provide a frame of reference, a 6000 sq ft rooftop in Washington DC outfitted with a 75kW solar PV (electric) system could generate around 90 SRECs/year (over $35,000/year).   Depending on variables such as system size, corporate tax rate and and project site attributes, this SREC income – combined with a 30% Federal Tax Credit and 100% Year 1 depreciation, typically result in IRR’s between 30% – 60% and a Simple payback of 3 – 5 years.    Assuming solar thermal is applicable, this same roof outfitted with a Solar Thermal System could fit a kWh equivalent of a 150kW+ system, generating 180 SRECs/year – and see an IRR of 50 – 80%, with a simple payback in the 1 – 2 year range.

Solar Service ,Home Solar Panels, Residential Solar PanelsMaintenance

Although Solar PV (electric) clients often opt for an O & M (operations and maintenance) contract through their solar installer, Solar PV Systems  have relatively minor maintenance needs; usually an annual inspection along with ongoing monitoring.    Solar thermal (water heating) requires a little more maintenance including a 3 – 5 yearly service which, at a minimum, includes a replacement of the propylene glycol/energy transfer fluid that can degrade with time.  Nonetheless, the impact of service costs on the overall IRR is relatively small and easily absorbed by the increased SREC income.

Written by Lisa Walsh

A Primer on Solar Power

Did you know that attempts to harness the sun’s power through the development of solar cells dates back to the late 1800’s? I am sure that this, and other information, may be new to our readers. This article will provide you with some basic facts about solar power and solar energy. That way, you can join the conversation, and the renewable energy movement!

  • The first successful solar cell was developed in the early 1950s. It was made of silicon, and able to power small electronic devices. This was hailed as the beginning of a new era of energy resources, even then being acknowledged as having the potential to offer a limitless supply of electricity.
  • The first true application of solar cells could be found in the space program at NASA and in Russia. They were the only ones who could afford this technology in the 1960s.
  • The cost of solar cells continued to decline incrementally, but not so significantly that solar was a common source of energy through the 1970s. But, as the 1980s dawned, and ever since, solar power has insinuated itself into all aspects of life, commercially and residentially.
  • The first solar panels for buildings were developed in the early 1970s. In truth, this initial foray into the potential for large scale residential solar power was actually a solar array built into a rooftop. Panel development followed, as the cost and manufacturing efficiency increased.
  • President Jimmy Carter had solar panels placed on the roof of the White House in 1979. Everyone was getting into the act!
  • Welcome to 2018. Today it is common to find solar-powered cars, solar-powered telecommunications, and even solar-powered aircraft. One car company, renowned for their progressiveness, has incorporated solar panels into the roofs of their vehicles!

But, there’s more! Technology continues to expand the horizons of solar energy, making it affordable and applicable in new ways and new places. For example, it is possible that eventually solar panels on rooftops will be replaced with solar shingles!

Or, consider this, a solar fabric is being finalized that can be attached to houses as a cooling device!

We here at Solar Energy Services are excited about the future applications of this renewable source of energy for personal and commercial uses. You can count on us to utilize our superior knowledge and expertise to your advantage. We look forward to serving you!

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