What is solar electricity?

Solar electric or photovoltaic (PV) technology converts sunlight directly into electricity. You may be familiar with PV cells that power watches and calculators, but PV can do much more. It can provide electricity for your home, small business or school and allow you to take advantage of Net Metering.

What is Net Metering?

Net Metering allows you to offset your purchase of electricity with your own generated electricity, essentially making your meter run backward. Your utility will then only bill you the monthly customer charge and the net amount of electricity you use from its system. Net Metering rules will not allow the utility to pay you for more electricity than you consume, so proper sizing of your system is critical.

How do solar electricity or "PV" systems work?

Sunshine is converted into electricity by using solar panels (also called photovoltaics or PV panels) that produce direct current (DC) when exposed to sunlight. Our homes and workplaces use AC, or alternating current. A device called an inverter converts the DC electricity generated by the PV array to AC electricity that is usable in your home. The inverter also serves several other functions, most notably preventing unsafe operating conditions that could damage equipment, harm occupants, or affect the utility.

Why use photovoltaic power?

The sun generates an abundance of clean energy that is largely unused for residential and commercial purposes. PV preserves the Earth's finite fossil-fuel resources – coal, oil and natural gas – which are used to generate electricity. PV also reduces the air and noise pollution associated with electricity generated from those sources.

In addition, many people value the independence gained by producing the energy that their homes, small businesses or schools use, and they appreciate knowing their efforts are also helping conserve the environment.

Recent technological breakthroughs, combined with the incentive program from NV Energy, has greatly reduced the cost of PV ownership. PV system reliability and durability are outstanding – typical PV systems may last 40 years with minimal maintenance.

What does a typical PV system look like?

A typical PV panel consists of solar cells connected electrically to form a module that can measure two to four feet wide and four to six feet long. Some solar modules look just like traditional roof shingles. Multiple interconnected PV modules are called an array. Another typical feature of a PV system is an inverter, which changes the electricity produced by the PV system from DC to AC, the type of electricity used in your home or workplace.

What happens if the sun doesn't shine?

Your PV system will continue to produce electricity during cloudy weather, although the total amount produced will be lower.

Is my home, small business or school right for a PV system?

A PV system needs unobstructed access to the sun's rays for most or all of the day throughout the year. PV panels are relatively unaffected by changing weather. In fact, most PV cells work better at colder temperatures. PV modules are angled to catch the sun, not snow, and any snow that does collect melts quickly. To maximize the energy produced, PV systems are usually installed on a south-facing roof with no shading and mounted parallel with the roof at a 30- or 40-degree pitch. However, roofs that face east or west may also be acceptable. PV panels should have their surfaces exposed to the sun's rays with minimal or no shadows from trees, chimneys and roofs between 9 a.m. and 4 p.m.

Can my home, small business or school accommodate a PV system?

The amount of space needed by a PV system is based on the output of the PV system and the type of PV system installed. Most small “starter” systems need as little as 50 square feet, while larger systems can require up to 1,000 square feet. A typical 1-kilowatt (kW) system should occupy approximately 100 square feet. If your location limits the physical size of your system, you may want to install a system that uses more efficient PV modules. Greater efficiency means that the module uses less surface area to convert sunlight into a given amount of electric power.

Do I need to be concerned with the condition of the existing roof?

A PV system can be installed on any well-structured roof. Typically, asphalt shingles are easiest to work with, while slate or tile is the most difficult. If your roof is older and needs to be replaced in the very near future, you may want to replace it before the PV system is installed to avoid the future cost of removing and reinstalling your PV system. PV systems are also available that integrate PV cells into the roofing materials themselves, allowing the roof to act as the PV collecting device. An integrated PV system can be an attractive option when replacing a roof or designing and/or building a new home, small business or school since it helps offset the cost of roofing materials.

How much does a PV system cost?

The total cost of a PV system includes the cost of the PV equipment and installation. Your PV system's cost will depend on a number of factors, including system size, the energy efficiency of your home, small business or school, whether the building is under construction and whether the PV is integrated into the roof or mounted on top of an existing roof. The cost also varies according to the PV system rating, manufacturer, retailer and installer.

Small-scale PV systems with built-in inverters that produce about 1 kW of power may cost about $10 to $12 per watt ($10,000-$12,000) installed. These small systems will offset only a small fraction of your electricity bill. A 2-kW system, which will offset most of the needs of a very energy-efficient home, may cost $8 to $10 per watt ($16,000-$20,000). A 5-kW system, which will completely offset the energy needs of many conventional homes, may cost $7 to $9 per watt ($35,000-$45,000). These prices, of course, are just rough estimates, and your costs will depend on your system's configuration, your equipment options and other factors.

There are several online resources available to help you or your contractor calculate your estimated energy output, go to the Resources and Links on the SolarGenerations web page and scroll down to System Sizing Assistance.

What rebates are available to help reduce the cost?

NV Energy currently offer rebates to their Nevada customers that can significantly reduce the cost of purchasing a PV system. For the 2008-2009 Program year, rebates are offered as follows:

These rebates are scheduled to be available through June 30, 2010 and are subject to available funding. Additionally, you may also be eligible for tax credits that will further offset  your PV system cost. Please see your tax accountant for details.

How do I find an installer for my solar system?

Finding an experienced, licensed Nevada contractor requires a little effort, but is well worth it. Here are a few suggestions to find the right company:

• Solar equipment manufacturers or regional distributors often keep lists of preferred installers that have experience with their equipment. You can also ask your local chapter of the Solar Energy Industries Association (SEIA) or the American Solar Energy Society to refer a contractor.
• Click on “Find Solar” under the Contractor List on the SolarGenerations.com web page
• Ask how many years a contractor or PV installer has been in the business, whether they belong to their state or regional SEIA Chapter or National SEIA, whether they have pictures of installations or references you can call, have attended utility-sponsored or other PV training or have received certification from a national accreditation program such as the North American Board of Certified Energy Practitioners (NABCEP).
• We recommend you talk to and ask for a written estimate from at least two contractors. Keep in mind the incentive program in Nevada requires the installation be completed by a Nevada licensed electrical (C-2 or C-2g license) contractor. The contractor is required to secure a building permit to install the system, and the installation must receive approval by the building department before the system is energized, the meter is set and the rebate is paid.
• Ask whether it would be beneficial, both financially and operationally, to delay installation until you replace an old roof. Make sure you understand the total installation cost and how much energy will be generated by specific sizes of PV systems. A good contractor will want you to have a clear understanding of what percentage of your yearly energy needs will be generated.

Am I required to give my contractor a deposit? What should I do if my contractor requires one?

Contract law in Nevada does not require providing a deposit for materials and/or equipment. However, should you agree to provide a deposit to your contractor, we encourage you to get a written receipt specifying in detail what the deposit represents and to verify that your contractor has a valid and active contractor’s license by contacting the Nevada State Contractors Board at:

Southern Nevada
2310 Corporate Circle, Suite 200
Henderson, NV 89074
(702) 486 - 1100 phone
(702) 486 - 1190 fax

Northern Nevada
9670 Gateway Drive, Suite 100
Reno, NV 89521
(775) 688-1141 phone
(775) 688-1271 fax

Please visit the Contractors Board web page at http://www.nvcontractorsboard.com and click on “Contractor License Search.”  You can check for your contractor by business name, principal name or license number. You may also talk to someone at the Contractors Board should you have questions or wish to file a complaint.

Is there any advantage to installing solar panels on my roof when replacing my roof shingles?

Yes. Installation can be simplified for either pipe or wire runs to the existing meter location, making it easier to meet program rules. If you are financing your renovation, the cost of the solar photovoltaic system can most likely be included in your loan.

The table below provides a breakdown of estimated costs, rebates and the value of PV-generated electricity for a small 1-kW system:

Sample Estimate for a 1 Kilowatt PV System*

• Average cost: $9,000 (based on a range of $8,000-$10,000)
• Estimated electricity generated per year: 2,000 kilowatt hours (kWh)
• Estimated total yearly value of PV generated electricity: $200 @ $.10/kWh
• Payback without rebate: 45 years ($9,000/$200)
• Rebate for 1-kW system: $2,300
• Payback with rebate: 33.5 years ($9,000 - $2,300 = $6,700/$200)

*Please note that this is only an estimate and costs will vary based on the size, type and AC output of your system.