At South Central Power, we want to be your source for energy and information. Since solar power generation is rapidly becoming more widely available, we put together this information to help answer questions you might have. Contact us for more information about solar.
As prices decline and technology improves, installing a residential solar system—also called a photo-voltaic or PV system—makes sense for some consumers. However, even with these recent improvements in PV, it’s important to find out the facts before committing to a purchase. Consider these points as you explore whether solar is right for your situation.
1. Make Your Home More Energy Efficient Before Buying a Solar System
You can cut your energy costs immediately, and you’ll also be able to reduce the size of PV system you purchase by:
- Adding insulation
- Sealing air leaks
- Completing other basic fix-it projects
2. Research, Research, Research Before Investing in a Solar System
South Central Power should be one of your first contacts. Experts at your co-op can:
- Answer basic questions
- Provide resource materials
- Provide a list of reputable contractors and other experts in your region
3. Understand How a Solar System Meshes with Your Cooperative’s System
Most solar systems are designed to provide you with a portion of the electricity needed, but won’t provide 100% of your needs. At night and on cloudy days, and possibly at other high-energy-use times, you’ll need more power than your PV system can produce. That means you’ll still be connected to your cooperative’s power lines. Because these systems are grid-connected, energy can flow both ways. Each utility—including South Central Power—sets appropriate policies and rates for connecting PV systems to their lines (the grid) and for possibly purchasing any excess energy your system might provide.
As you begin to explore solar systems, be sure you ask South Central Power experts about:
- Rate structures
- Interconnection
- Essential safety precautions
- Any other connection-related details
4. Review Your Current Energy Use so You Can Determine What Size PV System to Install
South Central Power staff can help you review your past energy use, and help you determine how the projects you’ve undertaken to improve energy efficiency may help lower your future energy use. One pertinent bit of information that will be useful is looking at how your energy use fluctuates throughout the day. Having that information will help you determine—with expert assistance—the size and type of system best suited to your situation.
5. Tally Upfront Costs
South Central Power does not sell, install, or maintain PV systems, so you will either purchase or lease a system from a contractor who is not a part of the cooperative. If you purchase a solar system, you will be the owner, and you’ll be responsible for the purchase price, as well as ongoing maintenance and repair costs. If leasing is the option you prefer, you will pay less initially, but you’ll likely have higher ongoing costs.
In either case, it pays to spend time figuring out all of the expenses you’ll be responsible for during the life of the system. These may include:
- Installation (in addition to the price of the system)
- Interconnection costs
- Insurance
- Taxes
- Possibly others, too
If you are leasing, ask contractors:
- About the length of the term
- If the contract is transferrable to a new homeowner should you sell your home
- About the potential for price increases
- The same questions you’d ask if you were to purchase a PV system
In the “credit” column of your price comparisons, look at any incentives, rebates and tax credits offered for either a purchase or a lease.
6. Search for Incentives, Rebates, & Tax Credits
Any financial incentives available will help reduce your investment costs. Opportunities vary by state and locale, and many have expiration dates. One database offering details is the DSIRE website. This site includes a clickable, interactive map, showing for residential and commercial/industrial projects:
- Federal and state incentives
- Credits
- Exemptions
- Grants
- Loans and rebates
7. Accept Short & Long Term Responsibilties
If you purchase a PV system, you’ll need to meet the requirements of South Central Power’s interconnection agreement. That includes paying any costs of connecting to the cooperative grid. Local and/ or state officials are responsible for conducting safety inspections, but it’s your responsibility to notify them in advance about your installation.
After the interconnection requirements are met, and the safety and integrity of your system are approved, your cooperative will take care of the connection to the grid. And, as the owner of the system, you’ll be responsible for maintenance and system repairs. If you lease a system, your responsibilities will depend on the agreement you sign. Be sure you know and understand what your responsibilities are.
8. Follow All Safety Precautions
Most solar systems are grid-connected. Because of the two-way flow of electricity, excess energy your PV system collects during the daytime flows into South Central Power’s lines.
This shoulders you with the responsibility for the safety of:
- Your cooperative line staff
- Others who may come in contact with a downed power line
- Your cooperative’s equipment
Improper connection and maintenance of your system may endanger people and the reliability of the grid.
9. Choose a Reputable Contractor/Installer
Start with a list of options garnered from:
- Website research
- Local or state Better Business Bureaus
- Renewable energy associations
- The Ohio energy office
- The Ohio Attorney General’s office
- Extension service staff
- Any other local experts you can call on for assistance and advice
Contact at least a few of those contractors appearing on your list, especially if recommended by multiple state and local experts. Narrow your list after asking many questions checking out other installations the contractor has completed, comparing bids (get at least 3), checking references, and thoroughly examining contracts. If possible, ask a contract specialist or lawyer to review the contract before signing.
10. Maintain Good Records
Keep files on:
- Your pre-purchase research and pre-installation data provided by your installer
- Bids
- Contracts
- Inspection reports
- Maintenance recorda
- All other details you may need to refer to in the future
In addition, you’ll want to know about system performance, so set up a system to track and compare your actual system performance with predictions provided by the contractor/ installer.