Community Voices: What to Do Before Buying A Solar Electric System for Your Home

By James E. Strachan
Special to the OC Voice

1. Investigate and if necessary improve the energy efficiency of your home. There are several ways to improve the energy efficiency of your home. Some improvements cost nothing, some cost less than the energy they save and some are more extensive but always cost effective. Energy efficiency is the least costly method to reduce your electric bill. It is never cost effective to use a solar electric system to generate energy used inefficiently.

Follow common sense to save energy overall and do your research before installing your home solar system.

The no cost method of improving energy efficiency is simply being prudent. Turn off the lights when you leave a room, be conservative when setting the thermostat, and don’t fall asleep with the TV turned on. The list is endless but even modest changes can have an appreciable effect on your usage profile.

Next make sure your major appliances are energy efficient and if possible Energy Star rated. Replacing an old energy hog refrigerator with a modern energy efficient model can result in dramatic energy savings. There are rebates and tax credits available for making various energy efficiency improvements to your home, for more detailed information visit www.flexyourpower.org.

2. Get Three Bids. You don’t need to get more than three bids. Getting too many bids can lead to confusion and the failure to make a decision. Three bids will be sufficient to know if your pricing is competitive and the recommended system size is consistent.

Next compare the three bids using the DC system size. If your proposed system uses 20 solar modules, each 200 Watts, then your DC size is 20 X 200 = 4000 Watts. Next divide that number into the gross installed cost of the system with everything included (Equipment, Permits, Sales Tax, Installation, Interconnection, Rebate Processing, etc.) before deducting rebates and other incentives. This will give you the price per Watt DC. Compare this number on all three bids.

3. Check The Reliability of The Solar Modules Specified in the Proposal. The major component of a solar electric system is the solar module. When receiving a proposal ask for the data sheet on the proposed solar module.

The industry standard warranty for solar modules is a 25 year limited warranty on power output. If the data sheet shows less than a 25 year warranty tell your contractor you want a solar module with a 25 year warranty on power output and ask for a copy of the warranty. It is important to understand what is covered under the manufacturer’s warranty.

Next check the power tolerance on the module data sheet. This will show as a number like +10%/-5%. This basically means that the maximum power of the module could be anywhere from 10% more than its rated power to 5% less than its rated power. Do not accept a solar module that shows anything more than a negative 5% power tolerance.

Most importantly stick with a solar module manufacturer with a reputable brand name that has been making solar modules for decades. Remember, you will be relying on a 25 year limited warranty. Twenty-Five years is a long time and there is simply no substitute for proven reliability.

4. Thoroughly Check Out Your Contractor. The solar contracting business has seen an explosion of contractors. This is good for competition but also opens the door to fraud and abuse. Whenever contracting for any home improvement you must always take a few steps to protect yourself. In California home improvement contractors are required to be licensed when performing work over $500.00. A licensed contractor must disclose his Contractor’s License Number on all forms of advertising and on his contract. When contracting for a solar home improvement be certain your contractor holds a C-10 or C-46 license.

When receiving a proposal from a solar contractor ask for three things: 1) The contractor’s license number and category; 2) a copy of the contractor’s Certificate of Liability Insurance; 3) a copy of the contractor’s Workers Compensation proof of insurance. A reputable contractor should include a license detail and proof of insurance with his proposal, if you have to struggle to get this information you should be on alert.

Before signing the contract get references. An experienced solar contractor should have no problem producing references of at least five satisfied solar customers. Actually visit a few of these locations to make a visual inspection of the work and ask whatever questions will make you feel comfortable before signing a contract.

In California the Contractors’ License Law exists for your protection. A reputable licensed contractor should have no problem answering your questions and his contract should contain all disclosures required by law. For more information on protecting yourself when contracting for any home improvement visit www.cslb.ca.gov/

5. Make Sure Contract is Clear and Complete: A Contract for a Solar Home Improvement should be all inclusive, i.e. a “Turn-Key” project. The contract should specify the following at a minimum:
a. The quantity, make and model of the solar modules and inverter(s);
b. That all equipment is approved by the California Energy Commission and qualifies for applicable rebates and tax credits;
c. The location and lay-out of the solar array;
d. Contractor specification that your existing electrical panel will be able to accept the full back-feed from the proposed solar system without upgrading the existing electrical panel or provide for the necessary electrical panel upgrade in the contract.
e. The full contract price and schedule for payments;
f. Obligation of Contractor to obtain permit;
g. Obligation of Contractor to obtain rebate reservation, process inter-connection application, attend final inspection, obtain inter-connection authorization and file Incentive Claim Form prior to final payment.

Additional Tips:

1). Never pay more than $1,000.00 when signing a contract for a home solar electric system. Do not make any more payments until the equipment is delivered to your home together with a permit and Job Card issued by the Authority Having Jurisdiction (City or County). Hold back at least 25% of the contract price for final payment and do not make final payment until: 1) All work is complete; 2) Final inspection has been signed off on your permit; 3) The utility has approved interconnection of your system; 4) The Incentive Claim Form has been filed; and 5) You have lien releases from all subcontractors.

2). Buy American! There are a number of excellent brand name manufacturers of Solar Modules and Inverters that have manufacturing plants here in America. Renewable Energy can help create American jobs and can help strengthen our economy now and in the future.

James E. Strachan is General Counsel at Solar Systems International, Inc.
info@solarsystemsintl.com
714-639-0884

The above chart shows the annual rate of return on capital invested in a residential solar electric system. Actual return could be higher depending on cost of electricity avoided.