Solar Energy Systems FAQs
1. What is ‘solar power’?
Solar power at its simplest is the raw energy created by the sun’s rays. That energy can be used to heat water or provide electricity to run a home or business. There are many solar options today that can replace much of your regular energy needs, saving you money and benefiting the environment by cutting down on the use of fossil fuels.
2. Where do I begin?
Arosa Solar recommends a long term, big picture approach. What are your goals and budget limitations? You can start small and add on later, or make the leap to near complete independence from fossil fuels and your utility company by installing an entire system. This website should help you become informed about your solar options and what will work for your location.
3. What are the different types of solar systems?
There are two main types of solar application, and a host of smaller ones. Photovoltaic systems harness the sun’s rays through solar modules, using an inverter to convert the resulting DC current to safe AC current. Often the amount of power produced during a sunny day exceeds the energy need, and can be fed back into the grid for a credit with the utility company.
Solar thermal systems use the sun’s energy to heat water, either for household use, radiant heat or to keep pool water warm. Water storage tanks can keep water hot in a holding tank through the sun’s energy and a circulation system. Pool systems typically use the pool's existing pump to circulate water through the collectors and heat the pool. A solar pool heating system has a dual advantage; it extends your swimming season and simultaneously allows you to significantly cut your energy costs to heat the pool.
4. What size solar electric system do I need?
Your first step is to determine your average daily usage in kilowatt hours. Most bills will have this displayed either as a daily average over the month or the total kilowatt hours used over the month. Looking at your average over the year will give you the best estimate.
Arosa Solar can then estimate the size PV system you will need to produce a percentage of your building's energy. A formula consisting of the sunlight hours / day times the number of kilowatts a system would produce will give you an idea of what percentage of your homes power could be replaced with solar energy.
The larger the system, the higher the energy output. A solar water heater can decrease your gas bill by a significant percentage - 70-80 & of most homeowners’ summer gas charges are for hot water usage. When you add the savings together, a large portion of your utility bills could be eliminated. Solar attic fans and tube lights are yet another way to maximize your solar resources.
5. What do the systems cost, and what incentives are available?
A solar water heating system will typically cost between $6,000 and $8,000 depending on the size of the family. An installed solar electric system for the average home costs $8.50 - $9.50 per watt.
However, a state incentive applies for $1.55 to $1.75 per watt on PV systems, cutting that cost significantly. There is also a 30% federal tax credit for both solar electric and solar water heating systems. You can take the tax credit on both systems if you install both within the same year. There is no limit on the federal tax creditfor commercial or residential PV systems, but for residential thermal applications a $2000 limit applies.
6. Do the solar electric and thermal systems need backup?
Backup is wise for any system, particularly in parts of the country where sunlight is not a guarantee on a steady basis. Most homeowners tie their system to the electricity grid, allowing extra power to be sold to the electric company at high rates and power to be drawn back off the grid at low rates during hours of darkness. This is known as a net metered, grid-tied system; the utility company is your backup. Solar water heating systems use a hot water tank for storing hot water. A gas line can be run to it or it can be set up with an electric heat element with an on / off switch for additional backup.
7. Do I have an acceptable location for solar?
In almost all cases, yes! Solar panels simply need a relatively south-facing area that gets sun from approximately 9am to 3pm. They can even work facing west or east, but it does decrease output by around 15 - 20%. The systems can also be tilt-mounted to face south, or ground mounted. Arosa Solar will perform an evaluation of your location prior to an installation to ensure optimal production from your solar system.
8. Should I worry about my solar water heating system freezing?
No. That is avoided by using either a drainback system or a glycol system. They both achieve freeze protection very well in cold climates. Drainback systems work by using gravity to drain the fluid from the collector into a drainback storage tank when the sun is not heating the water. Glycol systems work by circulating anti-freeze through the system to prevent freezing. Either system is appropriate to New Jersey weather.
9. How durable are the systems and how long might they last?
Solar thermal and solar electric systems can be expected to last more than 25 years. They are designed for minimal if any maintenance and a long functioning life. Many systems installed in the 1970's and 1980's are still in operation. The solar electric panels have a 25 year warranty and the solar water heating panels have a 10 year warranty. They are both hail tested for one inch hail at 50 mph. Lights often last as long as the house, and attic fans for at least 5-10 years before needing replacement.
10. Will I really see a return on my investment?
Yes! For every dollar one of these system saves in utility costs, the value of your home is expected to rise $20. The savings in electricity and heating costs benefit you immediately. Solar water heating systems will pay for themselves within a 5 - 7 years in most cases, by decreasing the energy needed to heat your water by 75%.
Solar electric systems are more expensive and will take longer to return their investment, but are still expected to pay for themselves well before the end of their lifetime in energy costs - especially when incentives are utilized to cut the initial investment.
Solar attic fans and solar tube lights are also good investments, typically paying for themselves in less than 5 years. These are among the easiest to implement, and are strongly recommended as an addition to any ‘green’ home. Pool heating systems also pay for themselves in about 5 years on average, even though there are no upfront incentives.
11.What are Solar Renewable Energy Certificates (SREC’s)?
SREC’s, or ‘green tags’ are certificates issued to owners of renewable energy systems. In New Jersey, power generated by solar energy collectors can be tracked and registered on a state website. Every time the amount of power that has been generated reaches one MW (mega watt), a certificate or tag is issued and registered in the name of the system owner.
Utility companies are requires to show that a certain percentage of their power comes from renewable sources. Building renewable energy generating systems statewide takes time, so the state allows these companies to satisfy a portion of their renewable energy requirement by purchasing these ‘green tags’ from the system owners.
Currently an average residential system can generate one MW (mega watt) a year, and the resulting SREC can currently be sold for as much as $600 to an utility company or private investor. This helps pay off existing solar power systems even faster, and the trading value of green tags continues to rise as energy companies fall farther behind schedule in subsidizing their own renewable power sources.
12. How will this affect my family and the environment?
Your family can continue living as usual. You might want to space your water use to maximize savings with a solar thermal system, but with a backup you will never be short of hot water. Also, if your PV system is connected to the grid it will serve as your back-up energy source.
Solar is one of the surest ways to decrease your carbon footprint. You can decrease your energy costs and do your part to save the world; even just a solar water heater helps the environment as much as a hybrid car!
