How Do I Evaluate a Solar Proposal?

1. How Do I Evaluate a Solar Proposal? Alex Yackery | 5th July 2016

2. What Every Solar Proposal Absolutely MUST Have Although you may be flooded with offers, you should never entertain any solar proposal that doesn’t meet the following criteria: • All solar quotes should be 100% free. You shouldn’t pay a dime for this basic service. And it’s best to avoid any installers who tell you otherwise. • Your installer should be licensed to practice in your state. This isn’t necessarily a requirement to go solar. However, unlicensed installations don’t qualify for grid-connections or most types of incentives. • Each proposal should include a detailed analysis of the potential savings you’ll receive. And those numbers should be backed up with a production guarantee. • The proposal should include detailed information about relevant incentives—both at the national and state level. • Your installer should be able to clearly explain all costs, turnaround times, and next steps. • The proposal should include a workmanship warranty (min 10 years) and manufacturer warranty (min 25 years). • The installer should provide you with a number of different financing options, including leases, PPAs, loans, and cash.

3. First Know Which Tariff You Are On This is a very simple thing to check and is often incorrect on the proposal. • The first is a simple cents per kWh tariff the same as most peoples house hold electricity bill. • This is normally only available to small businesses and may still be in place for businesses with older types of power meters. • Because these are regulated tariffs in Queensland in 2015 this is around 23 cents per kWh. • You should be able to find this on the second page of your bill – see example below.

4. Energy Plus Demand Tariff Example of a Energy + Demand Tariff breakdown • The break down will include Energy charges like the first type but more likely around 6 or 7 c/kWh, network charges that are a combination of some smaller c/kWh amounts and some rather hefty demand charges in $/kW or $/kVA amounts, highlighted in red in the example. There may also be some other smaller charges as well. • On this tariff it is important to check that the proposal is not using the 24 c/kWh energy charge from the energy only tariff instead of the 6 to 8 c/kWh that is normal on a demand tariff. I have seen a number of proposals that had this wrong so be aware. • On demand you also need to check the amount of the charge that has been allowed for. This is currently around $22/kW in QLD. • The highest metered demand will be shown on your bill so you can check the amount proposed by the solar provider is not unrealistic.

5. How Much Will The Proposed Solar System Generate? • The number of kWh that the system may generate for you is worth review. All the proposals I have seen have been realistic, and you still need to check. • The ball park in South East Queensland is around 475 kWh per day for a 100 kW system. • Be aware that a system greater than 30 kW requires additional approvals from the utility and may include conditions prohibiting exporting power onto the grid. Approved zero export control solutions increase the cost of the installation, so check this has been included in the model if the system is over 30 kW. • Depending on the usage patterns of your building, your generation may be limited in this scenario if you would be exporting power to the grid.  For instance, a 100kW system may be limited to 50kW of generation if the building is not consuming more than 50kW of power. This needs to be taken into consideration when sizing your system.

6. Demand and Solar Generation • If you are on a demand tariff and the proposal has the correct c/kWh and $/kW amounts there are still some details to check. • The first: is your peak consumption at the peak of generation? Are you sure? • Second, because demand is charged for the whole month on the highest half hour during the month, a single cloud during your peak energy consumption period can render Solar useless in reducing the demand charge. Generation logs indicate that generation can drop to as low as 20% of the clear sky output when a cloud passes over and even worse if you get heavy rain. • As a result the proposal should not model more than 20% of the regular peak clear sky output of the system.

7. What Is The Peak Generation Capacity? • A typical Solar PV system will generate peak, during best case weather conditions, around 80 to 90% of the rated capacity of the PV cells. • This is due largely to dust and dirt accumulating on the cells and changing angle of the sun during the year. • Because the cells are rigidly mounted the output will peak at the time the sun is shining most directly on them so roof angle and direction is an important factor for consideration.

8. What Every Solar Proposal Probably SHOULD Have If every proposal you receive contains the above items, you’ll be in pretty good shape. But to boost the financial and environmental benefits of your solar investment, look for the following items: • Green audits and energy efficiency recommendations. By lowering your property’s total power consumption, it’s possible to reduce the number of solar panels required for your home or business. • A synopsis of how inspections and permits work—including the approval process, timelines, and who is responsible for each step. In most cases, the installer will handle these on your behalf. • The exact price-per-watt of your installation. This number makes it easier to compare apples-to-apples if you’re looking at several competing offers. • You want a proposal written in “plain speak.” Some installers use overly complicated legalese and technical jargon. If you can’t understand what you’re committing to, don’t sign anything. • Maintenance and service agreements are always nice to have. Solar technology is incredibly durable, but in case a malfunction occurs, you want to know what the next steps are: • If you lease your system, the “lessor” handles all repairs and cleaning. • If you own your PV system, you contact your solar installer’s customer care team to request any service needed.

9. One Final Way to Evaluate Each Solar Proposal • Given the promise of lower utility bills and a smaller carbon footprint, solar is a technology that basically sells itself. After all, who doesn’t want to save money or protect the planet? • And yet, some installers use extremely aggressive marketing tactics and try to push you into signing up for their services. • You might receive a perfect solar proposal—one that includes all of the features listed above. But if the installer isn’t helpful, consultative, and informative, then you shouldn’t move forward. • Going solar should be a positive, exciting experience—from start to finish. But if the initial consultation leaves you with a bad vibe, the rest of the process probably won’t be enjoyable.

10. Contact US • Venture Home Solar • 240 Kent Ave, Brooklyn, • NY 11249 • +1 800-203-4158 • http://venturehomesolar.com/ Resources: • http://goo.gl/JteVAA • http://goo.gl/2aT65i