solarize quincy FAQ
If the information presented here does not answer all your current questions, please visit the MassCEC website, or send the question via email to [email protected]. Our goal is to respond to emails within 48 hours.
The solarize massachusetts program
What is Solarize Mass?
Solarize Mass is a program which seeks to increase the adoption of small-scale solar electricity in participating communities through a competitive tiered pricing structure that increases the savings for everyone as more home and business owners sign contracts. Now in its third year, Solarize Mass, a partnership between the Massachusetts Clean Energy Center (MassCEC), the Green Community Division of the Massachusetts Department of Energy Resources (DOER) and cities and towns across the commonwealth, has led to more than 1500 residents and business owners signing contracts for small-scale solar electricity systems, and has spoken with thousands more about the economic and environmental benefits of solar electricity, energy efficiency and other clean energy technologies. Through the program, Quincy residents have access to solar education events, low or $0 down power purchase agreement or lease options, and competitive tiered pricing. With tiered pricing, as more home and business owners sign up to go solar, the price reduces for everyone! It all adds up to a unique opportunity for residents to help make Quincy greener while saving money at the same time.
What is Solarize Quincy?
Solarize Quincy is the volunteer marketing and information outreach program which will introduce the Solarize Mass program to the residents of Quincy.
Why should I participate in Solarize Quincy?
The Solarize Quincy program offers significant savings over current market prices for solar PV installations done through the selected installer. In February 2015, the City of Quincy, the Solarize Quincy Volunteers, MassCEC, and the DOER, finalized a competitive interview process and selected SolarFlair as the solar installer for the Solarize Quincy Program. SolarFlair is the largest independent solar installer in Massachusetts. A 100% locally owned company, SolarFlair performs the entire process from marketing to installation to interconnection with its own employees and does not subcontract. SolarFlair has a Quincy office for the Solarize program.
SolarFlair will be able to benefit from a large number of contracts in the same geographical area, marketing help from community volunteers, and the ability to bulk purchase the installation components. The installer passes along savings to Quincy residents through the competitive tier pricing structure offered as a condition for selection. The Solarize Quincy program is designed by MassCEC to be time-limited. Contracts to install must be signed by August 2015 to be eligible for the pricing structure offered.
Solarize Mass is a program which seeks to increase the adoption of small-scale solar electricity in participating communities through a competitive tiered pricing structure that increases the savings for everyone as more home and business owners sign contracts. Now in its third year, Solarize Mass, a partnership between the Massachusetts Clean Energy Center (MassCEC), the Green Community Division of the Massachusetts Department of Energy Resources (DOER) and cities and towns across the commonwealth, has led to more than 1500 residents and business owners signing contracts for small-scale solar electricity systems, and has spoken with thousands more about the economic and environmental benefits of solar electricity, energy efficiency and other clean energy technologies. Through the program, Quincy residents have access to solar education events, low or $0 down power purchase agreement or lease options, and competitive tiered pricing. With tiered pricing, as more home and business owners sign up to go solar, the price reduces for everyone! It all adds up to a unique opportunity for residents to help make Quincy greener while saving money at the same time.
What is Solarize Quincy?
Solarize Quincy is the volunteer marketing and information outreach program which will introduce the Solarize Mass program to the residents of Quincy.
Why should I participate in Solarize Quincy?
The Solarize Quincy program offers significant savings over current market prices for solar PV installations done through the selected installer. In February 2015, the City of Quincy, the Solarize Quincy Volunteers, MassCEC, and the DOER, finalized a competitive interview process and selected SolarFlair as the solar installer for the Solarize Quincy Program. SolarFlair is the largest independent solar installer in Massachusetts. A 100% locally owned company, SolarFlair performs the entire process from marketing to installation to interconnection with its own employees and does not subcontract. SolarFlair has a Quincy office for the Solarize program.
SolarFlair will be able to benefit from a large number of contracts in the same geographical area, marketing help from community volunteers, and the ability to bulk purchase the installation components. The installer passes along savings to Quincy residents through the competitive tier pricing structure offered as a condition for selection. The Solarize Quincy program is designed by MassCEC to be time-limited. Contracts to install must be signed by August 2015 to be eligible for the pricing structure offered.
Solar pv energy
What is solar PV energy?
Solar electric systems are commonly referred to as photovoltaic systems, PV for short. PV cells are able to convert the light energy from the sun into electricity. This electricity can be used to power appliances in your home reducing your need for electricity from the utility or it can be sent back into the electric grid earning you a credit for your production that lowers your future electric bill. PV cells are made of slices of silicon crystal placed under a thin sheet of glass. Small wires on the silicon route free electrons from the illuminated silicon into a completed direct current (DC) circuit. An inverter in the circuit converts the direct current into usable alternating current (AC). If the total power generated from the PV system is not used directly and immediately by the household, it flows backward into the electrical supplier’s grid, through a special electric meter able to run backwards. This process is called net metering. At night when the PV panels are dark, power from your electric utility flows into the household in the normal way, spinning the meter forward. Solar PV electricity is generated on a cloudy day, but at a lower rate.
Is my house a good candidate for a solar PV installation?
There are many factors to consider when asking this question. A south facing roof is best, but east and west facing roofs can provide good results. Dense shade can dramatically reduce the performance of your PV array. Of course, larger PV arrays can produce greater output, so the square footage of your rooftop may be a limiting factor as well. One consideration that may factor into your decision to install panels on your roof is the current age of the roof. A newer roof is better, and SolarFlair offers a warranty for the work performed. Your installer will be able to discuss concerns about your roof with you at the time of your assessment. If you are not sure if your roof will work, contact SolarFlair for a free, no-obligation assessment.
What if I rent/own a rental house?
Renters cannot install solar electric systems, but owners of rental property can. Since each situation is different, you should explain your situation to the installer so they can come up with the best solution. Condo owners should also not be discouraged from looking into solar electricity. There are technical and other solutions that make it possible to install solar electricity for condos.
What if I own property in Quincy but live in a different town?
You are still eligible to participate for your property located in Quincy.
If my house is not an ideal candidate for a roof mounted solar array, are there other solar options?
A PV system mounted on poles in the yard is a good alternative to a roof mounted system. The pole mounted array will cost more than a roof mounted one, but it may produce more power, because its orientation can be changed throughout the year to optimize its orientation to the sun.
Why is the decision to install solar PV time critical?
Installing solar electricity for your home or business has never been more cost-effective than it is today, and solar electricity will save you money compared to utility power. The incentives that are currently available from the State of Massachusetts, along with the federal and state tax credits offered, make this a particularly attractive time for solar. With group purchasing, the Solarize Quincy program adds another incentive which can lower installation costs further.
What are the state and federal incentives available for solar electricity?
Right now there are numerous state and federal incentives available, making solar electricity very attractive. There is a 30% Federal tax credit on the installed cost. The Commonwealth of Massachusetts adds a 15% state tax credit up to a maximum of $1000.
Incentives at installation:
State tax incentives - State income tax credit of 15% of the installed cost, up to a maximum of $1,000. Residential solar electric systems on a primary residence are exempt from state sales tax.
Federal tax incentives - You get 30% of the initial cost as a credit against your federal income tax for the year you install the system. Currently you can carry forward unused credits for a limited period of time. You may want to consult a tax professional about how these incentives apply in your situation.
*Further benefits include exemption from state sales tax for the cost of the equipment installed, and a 20 year exemption from increased property taxes on the system. All of these benefits are legislative creations, and may be altered by the legislature in the future.
Ongoing state incentives:
1. Net metering (your meter “spins” backwards when you are producing more electricity than you are using) allows you to bank excess electricity production with your utility. For months in which you produce more than you consume, you receive a credit on your utility bill against future electricity purchases.
2. Not only do you avoid paying the utility for the electricity you generate, the state of Massachusetts enables you to be paid for the renewable energy attributes of that electricity. For the first ten years your solar electric system is in operation, for every 1,000 kilowatt-hours (kWh) you generate, you create one solar renewable energy certificate (SREC), which you can sell to Massachusetts utilities and competitive electricity providers. Prices are market-based, but may range from about $190-285 per SREC. Transactions are typically handled by an SREC broker (or “aggregator”) that you select.
The Solarize Quincy program is comprised of five tiers of price discounts for all systems registered and installed under the program. For Tier 1, when Quincy reaches 25kW of PV installed, the base purchase price for all purchasers is $3.55/W. Tier 2 is for under 50kW in the community, with a base price of $3.43/W. Tier 3 is under 100kW, base price $3.31/W. Tier 4 is under 200kW, base price $3.19/W. Tier 5 is for once the total number of Solarize Quincy PV systems produces over 250kW, at a base price of $3.08/W. Tiered pricing discounts will apply to all Solarize Quincy participants regardless of when you sign up. The Solarize Quincy program will end in August 2015.
Are my chances for a cheaper tier price increased if I wait to the end of the program?
As each successive tier is reached, all the previously contracted owners benefit. There is no advantage to delay contracting with the installer. Someone who signs a solar contract on March 1st will receive the same discount as on August 29th. We highly recommend you enroll for a no-cost, no-commitment home assessment as early as possible in the program and do not wait until the final few weeks.
Solar electric systems are commonly referred to as photovoltaic systems, PV for short. PV cells are able to convert the light energy from the sun into electricity. This electricity can be used to power appliances in your home reducing your need for electricity from the utility or it can be sent back into the electric grid earning you a credit for your production that lowers your future electric bill. PV cells are made of slices of silicon crystal placed under a thin sheet of glass. Small wires on the silicon route free electrons from the illuminated silicon into a completed direct current (DC) circuit. An inverter in the circuit converts the direct current into usable alternating current (AC). If the total power generated from the PV system is not used directly and immediately by the household, it flows backward into the electrical supplier’s grid, through a special electric meter able to run backwards. This process is called net metering. At night when the PV panels are dark, power from your electric utility flows into the household in the normal way, spinning the meter forward. Solar PV electricity is generated on a cloudy day, but at a lower rate.
Is my house a good candidate for a solar PV installation?
There are many factors to consider when asking this question. A south facing roof is best, but east and west facing roofs can provide good results. Dense shade can dramatically reduce the performance of your PV array. Of course, larger PV arrays can produce greater output, so the square footage of your rooftop may be a limiting factor as well. One consideration that may factor into your decision to install panels on your roof is the current age of the roof. A newer roof is better, and SolarFlair offers a warranty for the work performed. Your installer will be able to discuss concerns about your roof with you at the time of your assessment. If you are not sure if your roof will work, contact SolarFlair for a free, no-obligation assessment.
What if I rent/own a rental house?
Renters cannot install solar electric systems, but owners of rental property can. Since each situation is different, you should explain your situation to the installer so they can come up with the best solution. Condo owners should also not be discouraged from looking into solar electricity. There are technical and other solutions that make it possible to install solar electricity for condos.
What if I own property in Quincy but live in a different town?
You are still eligible to participate for your property located in Quincy.
If my house is not an ideal candidate for a roof mounted solar array, are there other solar options?
A PV system mounted on poles in the yard is a good alternative to a roof mounted system. The pole mounted array will cost more than a roof mounted one, but it may produce more power, because its orientation can be changed throughout the year to optimize its orientation to the sun.
Why is the decision to install solar PV time critical?
Installing solar electricity for your home or business has never been more cost-effective than it is today, and solar electricity will save you money compared to utility power. The incentives that are currently available from the State of Massachusetts, along with the federal and state tax credits offered, make this a particularly attractive time for solar. With group purchasing, the Solarize Quincy program adds another incentive which can lower installation costs further.
What are the state and federal incentives available for solar electricity?
Right now there are numerous state and federal incentives available, making solar electricity very attractive. There is a 30% Federal tax credit on the installed cost. The Commonwealth of Massachusetts adds a 15% state tax credit up to a maximum of $1000.
Incentives at installation:
State tax incentives - State income tax credit of 15% of the installed cost, up to a maximum of $1,000. Residential solar electric systems on a primary residence are exempt from state sales tax.
Federal tax incentives - You get 30% of the initial cost as a credit against your federal income tax for the year you install the system. Currently you can carry forward unused credits for a limited period of time. You may want to consult a tax professional about how these incentives apply in your situation.
*Further benefits include exemption from state sales tax for the cost of the equipment installed, and a 20 year exemption from increased property taxes on the system. All of these benefits are legislative creations, and may be altered by the legislature in the future.
Ongoing state incentives:
1. Net metering (your meter “spins” backwards when you are producing more electricity than you are using) allows you to bank excess electricity production with your utility. For months in which you produce more than you consume, you receive a credit on your utility bill against future electricity purchases.
2. Not only do you avoid paying the utility for the electricity you generate, the state of Massachusetts enables you to be paid for the renewable energy attributes of that electricity. For the first ten years your solar electric system is in operation, for every 1,000 kilowatt-hours (kWh) you generate, you create one solar renewable energy certificate (SREC), which you can sell to Massachusetts utilities and competitive electricity providers. Prices are market-based, but may range from about $190-285 per SREC. Transactions are typically handled by an SREC broker (or “aggregator”) that you select.
The Solarize Quincy program is comprised of five tiers of price discounts for all systems registered and installed under the program. For Tier 1, when Quincy reaches 25kW of PV installed, the base purchase price for all purchasers is $3.55/W. Tier 2 is for under 50kW in the community, with a base price of $3.43/W. Tier 3 is under 100kW, base price $3.31/W. Tier 4 is under 200kW, base price $3.19/W. Tier 5 is for once the total number of Solarize Quincy PV systems produces over 250kW, at a base price of $3.08/W. Tiered pricing discounts will apply to all Solarize Quincy participants regardless of when you sign up. The Solarize Quincy program will end in August 2015.
Are my chances for a cheaper tier price increased if I wait to the end of the program?
As each successive tier is reached, all the previously contracted owners benefit. There is no advantage to delay contracting with the installer. Someone who signs a solar contract on March 1st will receive the same discount as on August 29th. We highly recommend you enroll for a no-cost, no-commitment home assessment as early as possible in the program and do not wait until the final few weeks.
SRECs
What is an SREC?
A Solar Renewable Energy Credit (SREC) is 1000 kilowatt hours of power recorded by a utility-grade electric meter wired into the circuit before the electricity is either consumed by the household, or sent into the grid of the electric utility. Every kilowatt hour generated by your system is recorded and reported to the Massachusetts Clean Energy Center. You get credit for every kilowatt hour, even though you may consume some, or all, of it.
How do I sell my SRECs?
Since it is very costly for electric suppliers to buy directly from individuals, solar owners will generally work with third party aggregators who establish a public marketplace connecting sellers directly to suppliers in an inexpensive, easy, transparent and equitable way. The aggregators are able to accommodate volume transactions with buyers and provide auction services for individual sellers in the market.
In addition to this, Massachusetts has implemented the MA Solar Credit Clearinghouse as a last resort, fixed-price auction in the last quarter of each year with a price which is set each year for ten years. This fixed price auction acts as a price floor mechanism with the goal of creating a sustainable SREC market. However, this is not a concrete price floor as buyers are not required to buy all of the SRECs that are put into the auction. SolarFlair will offer assistance with selling SRECs if you desire.
A Solar Renewable Energy Credit (SREC) is 1000 kilowatt hours of power recorded by a utility-grade electric meter wired into the circuit before the electricity is either consumed by the household, or sent into the grid of the electric utility. Every kilowatt hour generated by your system is recorded and reported to the Massachusetts Clean Energy Center. You get credit for every kilowatt hour, even though you may consume some, or all, of it.
How do I sell my SRECs?
Since it is very costly for electric suppliers to buy directly from individuals, solar owners will generally work with third party aggregators who establish a public marketplace connecting sellers directly to suppliers in an inexpensive, easy, transparent and equitable way. The aggregators are able to accommodate volume transactions with buyers and provide auction services for individual sellers in the market.
In addition to this, Massachusetts has implemented the MA Solar Credit Clearinghouse as a last resort, fixed-price auction in the last quarter of each year with a price which is set each year for ten years. This fixed price auction acts as a price floor mechanism with the goal of creating a sustainable SREC market. However, this is not a concrete price floor as buyers are not required to buy all of the SRECs that are put into the auction. SolarFlair will offer assistance with selling SRECs if you desire.
PV Installations
How do I get the benefit of electricity my solar array generates?
All the electricity generated by your system and consumed by your household is free of utility cost. The SRECs you produce can be sold through a specialized broker who deals in the SREC commodity. The SREC auctions happen quarterly, and the actual price paid can vary. SRECS are important because they represent a significant cost reduction to the investment in a solar PV system over time.
Coupled with tax incentives and any cost savings on electricity from your system, most solar PV systems will pay for themselves in 5 to 8 years, depending upon site quality. If the amount of power you generate exceeds your household use in any month, through a process of “net metering”, the excess is carried as a credit by the power company until used by you in a future month.
Why should I be interested in a solar PV installation?
Solar power represents an investment in your home and future. Purchasing a solar system can have rates of return higher than 8%. Solar also protects families from electric rate increases by locking in at least a portion of their electric costs. After an initial investment, the production of household power is predictable, and its low long term price dependable.
Solar power is quiet and reliable. Those who choose an investment in solar power are making a personal commitment to reducing their impact on the earth’s ecosphere. Every bit helps.
In addition, financial incentives are in place to lower the cost burden of the initial investment. The current incentives are Federal and state tax rebates, and the sale of SRECs. While the extent of profit will depend upon the cost of electricity in the future, solar components have warrantied lives of up to 25 years. Current projections show significant increases in electricity cost decade over decade, meaning most solar arrays will have many years of profit making production.
How long will a typical PV installation take?
The length of a solar installation depends upon the size of your PV system and its complexity. The on-site installation time for most residential jobs is usually only two days. The start time of the install will depend on the amount of time it takes to pull permits and get approval to install from the utility. Once installed, the project must be inspected by Quincy and approved by the utility again. This process can also take weeks. From time of contract to powering up the system can be months.
Where can I get a consumer viewpoint on existing Quincy installations?
Several residents of Quincy who have already installed solar PV arrays have volunteered to answer questions about their experience. Contact us [email protected] for more details.
All the electricity generated by your system and consumed by your household is free of utility cost. The SRECs you produce can be sold through a specialized broker who deals in the SREC commodity. The SREC auctions happen quarterly, and the actual price paid can vary. SRECS are important because they represent a significant cost reduction to the investment in a solar PV system over time.
Coupled with tax incentives and any cost savings on electricity from your system, most solar PV systems will pay for themselves in 5 to 8 years, depending upon site quality. If the amount of power you generate exceeds your household use in any month, through a process of “net metering”, the excess is carried as a credit by the power company until used by you in a future month.
Why should I be interested in a solar PV installation?
Solar power represents an investment in your home and future. Purchasing a solar system can have rates of return higher than 8%. Solar also protects families from electric rate increases by locking in at least a portion of their electric costs. After an initial investment, the production of household power is predictable, and its low long term price dependable.
Solar power is quiet and reliable. Those who choose an investment in solar power are making a personal commitment to reducing their impact on the earth’s ecosphere. Every bit helps.
In addition, financial incentives are in place to lower the cost burden of the initial investment. The current incentives are Federal and state tax rebates, and the sale of SRECs. While the extent of profit will depend upon the cost of electricity in the future, solar components have warrantied lives of up to 25 years. Current projections show significant increases in electricity cost decade over decade, meaning most solar arrays will have many years of profit making production.
How long will a typical PV installation take?
The length of a solar installation depends upon the size of your PV system and its complexity. The on-site installation time for most residential jobs is usually only two days. The start time of the install will depend on the amount of time it takes to pull permits and get approval to install from the utility. Once installed, the project must be inspected by Quincy and approved by the utility again. This process can also take weeks. From time of contract to powering up the system can be months.
Where can I get a consumer viewpoint on existing Quincy installations?
Several residents of Quincy who have already installed solar PV arrays have volunteered to answer questions about their experience. Contact us [email protected] for more details.
costs to install solar pv
Which company will be the preferred installer for Quincy Projects?
The Solarize Quincy team worked with City and Mass CEC representatives to review five proposals from solar installers to perform solar installations in the program. They shortlisted two companies for interviews, and selected SolarFlair as the program installer. SolarFlair will provide tiered discounts depending upon the total number of contracts for solar PV installations executed between Quincy residents and the installer. Being the preferred installer allows economies of scale in supply purchasing agreements, savings in customer acquisition, and the value of volunteer marketing and outreach to be passed on to residents who participate. No Quincy resident is obligated to use the preferred installer. Any resident can negotiate his own distinct contract with any solar PV installer, including the preferred one. However, a contract with a preferred installer is likely to be a more favorable one for Quincy residents.
The Solarize Quincy program is comprised of five tiers of price discounts for all systems registered and installed under the program. For Tier 1, when Quincy reaches 25kW of PV installed, the base purchase price for all purchasers is $3.55/kW. Tier 2 is for under 50kW in the community, with a base price of $3.43/kW. Tier 3 is under 100kW, base price $3.31/kW. Tier 4 is under 200kW, base price $3.19/kW. Tier 5 is for once the total number of Solarize Quincy PV systems produces over 250kW, at a base price of $3.08/kW. Tiered pricing discounts will apply to all Solarize Quincy participants regardless of when you sign up. The Solarize Quincy program will end in August 2015.
How much will a small solar PV array cost?
An average size 5kW system will cost $13k to $20k. This size system will generate half to three quarters of the electricity used in most homes.
Is a solar PV installation difficult to permit and build in Quincy?
Quincy has considerable experience with over 150 solar installations to date. SolarFlair will work with the city to provide turn-key service, which includes managing the permit process. The Solarize Quincy Program will attempt to further streamline the permitting and inspection process, to provide a shortened timeframe with greater certainty in requirements and costs to the designated installer. Those savings, like the others, can be reflected in greater discounts to Quincy residents.
How much do I need to initially pay for the installation of a solar PV system?
Like any other construction project, the installer will expect payment upon completion. It is also possible to go solar without putting any money down through solar leasing.
Despite the financing method, immediate paybacks will start with electricity bill savings. Approximately five months after the PV system comes online, the SREC revenue stream will start. April 15 of the year following completion will capture the 30% Federal tax credit, and the 15% Massachusetts tax credit (max $1,000). The SREC stream of payments will last for ten years after installation.
Funding of the investment in a solar PV system is best done with savings, or home equity loans. Some banks may offer their best customers an unsecured loan. SolarFlair will provide more detailed information on financing of an ownership or leasing value proposition.
Are there other options besides ownership of the solar PV equipment?
It is possible to install a solar system and save money on your electric bill through solar leasing. With leasing, a third-party finance company owns the system, and you pay them based on a preset payment schedule, usually lasting 20 years. The amount of the lease payment reflects the ability of the leasing company to take advantage of the numerous financial incentives for installing solar, plus at least one not available to the residential owner. Leasing has the added advantage of having no up-front costs. During the term of the lease, the finance company is responsible for maintaining the system, and at the end of the lease, you are generally offered a continuation of the lease, the discounted purchase of the system, or a no-cost removal of the equipment.
Should I lease or own a solar PV array?
Different families will have different financial goals when adopting solar PV systems. Those goals will determine which model of acquisition best suits their immediate and long term needs. The two critical pivot points are cash flow, and likely tenure in the property on which the solar PV system will sit.
The terms of a lease are structured favorably for no out of pocket acquisition costs. Also, the risk of ownership of the PV equipment stays with the lessor. However, a price is paid to the lessor for his capital equipment and service. That price is a higher monthly cost over the life of a PV system, and a different model of financial return for solar investment.
If the time lived in the house is likely to be shorter than the usual 20 year lease, the lessee of the PV system is required to remove the equipment and pay the remaining lease payments, or agree to the transfer of the PV array and the remaining lease payments to the new owner. Of course, the new owner must be willing to take on the remaining lease payments, and must be financially qualified to do so. A more thorough explanation of this question can be found at http://www.solar-estimate.org/?page=solar-lease
Are there different solar economics for a business?
In addition to all the benefits available to a residential owner, a business may claim a five-year Modified Accelerated Cost Recovery System (MACRS). Although the system life is typically greater than 25 years, accelerated depreciation (i.e. MACRS) for a long system life dramatically increases the after-tax financial return of the solar project.
The Solarize Quincy team worked with City and Mass CEC representatives to review five proposals from solar installers to perform solar installations in the program. They shortlisted two companies for interviews, and selected SolarFlair as the program installer. SolarFlair will provide tiered discounts depending upon the total number of contracts for solar PV installations executed between Quincy residents and the installer. Being the preferred installer allows economies of scale in supply purchasing agreements, savings in customer acquisition, and the value of volunteer marketing and outreach to be passed on to residents who participate. No Quincy resident is obligated to use the preferred installer. Any resident can negotiate his own distinct contract with any solar PV installer, including the preferred one. However, a contract with a preferred installer is likely to be a more favorable one for Quincy residents.
The Solarize Quincy program is comprised of five tiers of price discounts for all systems registered and installed under the program. For Tier 1, when Quincy reaches 25kW of PV installed, the base purchase price for all purchasers is $3.55/kW. Tier 2 is for under 50kW in the community, with a base price of $3.43/kW. Tier 3 is under 100kW, base price $3.31/kW. Tier 4 is under 200kW, base price $3.19/kW. Tier 5 is for once the total number of Solarize Quincy PV systems produces over 250kW, at a base price of $3.08/kW. Tiered pricing discounts will apply to all Solarize Quincy participants regardless of when you sign up. The Solarize Quincy program will end in August 2015.
How much will a small solar PV array cost?
An average size 5kW system will cost $13k to $20k. This size system will generate half to three quarters of the electricity used in most homes.
Is a solar PV installation difficult to permit and build in Quincy?
Quincy has considerable experience with over 150 solar installations to date. SolarFlair will work with the city to provide turn-key service, which includes managing the permit process. The Solarize Quincy Program will attempt to further streamline the permitting and inspection process, to provide a shortened timeframe with greater certainty in requirements and costs to the designated installer. Those savings, like the others, can be reflected in greater discounts to Quincy residents.
How much do I need to initially pay for the installation of a solar PV system?
Like any other construction project, the installer will expect payment upon completion. It is also possible to go solar without putting any money down through solar leasing.
Despite the financing method, immediate paybacks will start with electricity bill savings. Approximately five months after the PV system comes online, the SREC revenue stream will start. April 15 of the year following completion will capture the 30% Federal tax credit, and the 15% Massachusetts tax credit (max $1,000). The SREC stream of payments will last for ten years after installation.
Funding of the investment in a solar PV system is best done with savings, or home equity loans. Some banks may offer their best customers an unsecured loan. SolarFlair will provide more detailed information on financing of an ownership or leasing value proposition.
Are there other options besides ownership of the solar PV equipment?
It is possible to install a solar system and save money on your electric bill through solar leasing. With leasing, a third-party finance company owns the system, and you pay them based on a preset payment schedule, usually lasting 20 years. The amount of the lease payment reflects the ability of the leasing company to take advantage of the numerous financial incentives for installing solar, plus at least one not available to the residential owner. Leasing has the added advantage of having no up-front costs. During the term of the lease, the finance company is responsible for maintaining the system, and at the end of the lease, you are generally offered a continuation of the lease, the discounted purchase of the system, or a no-cost removal of the equipment.
Should I lease or own a solar PV array?
Different families will have different financial goals when adopting solar PV systems. Those goals will determine which model of acquisition best suits their immediate and long term needs. The two critical pivot points are cash flow, and likely tenure in the property on which the solar PV system will sit.
The terms of a lease are structured favorably for no out of pocket acquisition costs. Also, the risk of ownership of the PV equipment stays with the lessor. However, a price is paid to the lessor for his capital equipment and service. That price is a higher monthly cost over the life of a PV system, and a different model of financial return for solar investment.
If the time lived in the house is likely to be shorter than the usual 20 year lease, the lessee of the PV system is required to remove the equipment and pay the remaining lease payments, or agree to the transfer of the PV array and the remaining lease payments to the new owner. Of course, the new owner must be willing to take on the remaining lease payments, and must be financially qualified to do so. A more thorough explanation of this question can be found at http://www.solar-estimate.org/?page=solar-lease
Are there different solar economics for a business?
In addition to all the benefits available to a residential owner, a business may claim a five-year Modified Accelerated Cost Recovery System (MACRS). Although the system life is typically greater than 25 years, accelerated depreciation (i.e. MACRS) for a long system life dramatically increases the after-tax financial return of the solar project.
post-installation issues and payback
What payback is typical?
Payback on the solar investment can range from 4 to 8 years. This roughly translates to return on the installation cost of 10% to 21%. Following the payback period, the owner will continue to accrue the value of free electricity, and the remaining term of the SREC stream.
What happens during a power outage?
All solar PV systems are equipped with an interlock that shuts down the system during a power outage. Because most installations are tied to the electric grid, the interlock protects power company workers from electric shock when working on power lines during an outage. The only PV system which can be run during a power outage is one installed with battery backup and a transfer switch. Such systems are considerably more expensive than the grid tied system commonly installed.
What if I have a backup generator?
If you have a backup generator, you can continue to use it as before. If you want to install a backup generator, you would do that as if there were no solar electricity. The solar electricity is wired separately into your electrical panel, and for safety reasons, is designed to automatically disconnect in the event of a power outage. When grid power is restored, the inverter will automatically reconnect and synchronize to the grid and your solar electricity will come back on.
Will the solar electric system need batteries?
No. Your house remains connected to the grid and you draw electricity from the grid when you need it. With net-metering in Massachusetts, the utility essentially acts as a “virtual battery” for your system. That is, whenever your solar panels don’t produce enough electricity to meet your electrical demand, you can get the rest from the grid. When you produce more electricity than you consume, your meter will “spin backwards,” feeding your energy into the grid and reducing your bill or creating a credit on your bill that essentially stores your “overproduction” for future use, just as a battery would.
What is the expected lifetime, and what warranties are offered on a solar PV array?
Solarize Quincy will work with SolarFlair to negotiate the best possible warranty for the panels, workmanship, and inverter. Over time, the efficiency of solar panels decreases by 0.25% to 0.50% per year.
What other collateral benefits can I expect from a solar PV system?
State law has declared a property tax holiday on the value of the installation for 20 years. Studies have shown that a solar PV array adds $20,000 of value to your home for every $1000 the system cuts from the annual electric bill. There is no Massachusetts sales tax levied on solar equipment or its installation. Despite the recent surplus of natural gas, electric rates are expected to increase over the next decade.
What maintenance issues can I expect?
Maintenance issues with PV systems are almost non-existent. Rain cleans the surface of the panels, but an annual rinse with a hose is suggested when the panels are cool.
During the winter, snow will accumulate on the panels. In cases of moderate snow, the panels will warm from light passing through the snow, and the panels will clear much sooner than other parts of the roof. Removing snow is not recommended since you risk damaging the panels. It is better to lose a few days of production in the winter (when output is low anyway) than to damage the panels. In any event, snow slides off the panels much easier than the roof because the surface is smooth tempered glass and as soon as part of the panel is exposed to the sun, it starts to heat up and the snow melts off (so be careful what you place beneath your solar panels).
There are no moving parts in a solar PV installation. The most likely component to require replacement is the inverter, and that should be only after more than a decade of use.
What is the effect on my property value and taxes?
Imagine two identical homes next to one another, one with solar and one without. It is not hard to imagine that the house with solar would sell for more because it costs less to operate. A study from Lawrence Berkeley National Lab described in this Article found that among the California homes studied, the resale value increased about $5,900 for each kilowatt that the home’s solar array could generate. You can access the full study Here. Although the experience of the California market may not apply exactly to the Quincy market, it does seem likely that the solar panels will add to a home’s value.
Although solar panels may affect the value of houses, they will most likely not affect property taxes. Under Massachusetts law, solar panels installed on a residence may be considered exempt from local property taxes for 20 years after they are installed.
Payback on the solar investment can range from 4 to 8 years. This roughly translates to return on the installation cost of 10% to 21%. Following the payback period, the owner will continue to accrue the value of free electricity, and the remaining term of the SREC stream.
What happens during a power outage?
All solar PV systems are equipped with an interlock that shuts down the system during a power outage. Because most installations are tied to the electric grid, the interlock protects power company workers from electric shock when working on power lines during an outage. The only PV system which can be run during a power outage is one installed with battery backup and a transfer switch. Such systems are considerably more expensive than the grid tied system commonly installed.
What if I have a backup generator?
If you have a backup generator, you can continue to use it as before. If you want to install a backup generator, you would do that as if there were no solar electricity. The solar electricity is wired separately into your electrical panel, and for safety reasons, is designed to automatically disconnect in the event of a power outage. When grid power is restored, the inverter will automatically reconnect and synchronize to the grid and your solar electricity will come back on.
Will the solar electric system need batteries?
No. Your house remains connected to the grid and you draw electricity from the grid when you need it. With net-metering in Massachusetts, the utility essentially acts as a “virtual battery” for your system. That is, whenever your solar panels don’t produce enough electricity to meet your electrical demand, you can get the rest from the grid. When you produce more electricity than you consume, your meter will “spin backwards,” feeding your energy into the grid and reducing your bill or creating a credit on your bill that essentially stores your “overproduction” for future use, just as a battery would.
What is the expected lifetime, and what warranties are offered on a solar PV array?
Solarize Quincy will work with SolarFlair to negotiate the best possible warranty for the panels, workmanship, and inverter. Over time, the efficiency of solar panels decreases by 0.25% to 0.50% per year.
What other collateral benefits can I expect from a solar PV system?
State law has declared a property tax holiday on the value of the installation for 20 years. Studies have shown that a solar PV array adds $20,000 of value to your home for every $1000 the system cuts from the annual electric bill. There is no Massachusetts sales tax levied on solar equipment or its installation. Despite the recent surplus of natural gas, electric rates are expected to increase over the next decade.
What maintenance issues can I expect?
Maintenance issues with PV systems are almost non-existent. Rain cleans the surface of the panels, but an annual rinse with a hose is suggested when the panels are cool.
During the winter, snow will accumulate on the panels. In cases of moderate snow, the panels will warm from light passing through the snow, and the panels will clear much sooner than other parts of the roof. Removing snow is not recommended since you risk damaging the panels. It is better to lose a few days of production in the winter (when output is low anyway) than to damage the panels. In any event, snow slides off the panels much easier than the roof because the surface is smooth tempered glass and as soon as part of the panel is exposed to the sun, it starts to heat up and the snow melts off (so be careful what you place beneath your solar panels).
There are no moving parts in a solar PV installation. The most likely component to require replacement is the inverter, and that should be only after more than a decade of use.
What is the effect on my property value and taxes?
Imagine two identical homes next to one another, one with solar and one without. It is not hard to imagine that the house with solar would sell for more because it costs less to operate. A study from Lawrence Berkeley National Lab described in this Article found that among the California homes studied, the resale value increased about $5,900 for each kilowatt that the home’s solar array could generate. You can access the full study Here. Although the experience of the California market may not apply exactly to the Quincy market, it does seem likely that the solar panels will add to a home’s value.
Although solar panels may affect the value of houses, they will most likely not affect property taxes. Under Massachusetts law, solar panels installed on a residence may be considered exempt from local property taxes for 20 years after they are installed.
Over 900 residents and business owners have signed contracts for small-scale solar electricity systems, while speaking with thousands more about the economic and environmental benefits of other clean energy technologies.