Solar Bob's Frequently Asked Questions (FAQs)

Since January of this year, our phone has been ringing "off the hook", which we appreciate. The vast majority of these calls are from clients desiring to install either a solar or wind system and trying to understand how to get started. A number of clients are surprised to find out what is involved and the cost associated with renewable energy systems.

It is our commitment to all our perspective clients to provide honest, accurate and factual responses to all questions and requests for information. For those of you considering investing in either a solar or wind system, we have compiled a list of FAQs.

Question #1:  I am interested in installing a Solar PV system, how do I determine the size of system required and how much energy will it produce?

Response: For an existing home or building our first step is to review your last 12 months of electric bills. The square footage of a home or building is not necessarily related to energy usage, which is why it is important to review the bills. For new construction or renovations we review plans and recommend energy modeling by an independent consultant such as Butterfly Energy Works in St. Louis or Hathmore Technologies in Kansas City. With this information, we are able to calculate system size, and estimate energy production. We also recommend approaches to reduce energy consumption and other energy efficiency measures available through companies we collaborate with.

Question #2: What does it cost to install a Solar PV system and will it generate all my electricity?

Response: For a grid tied Solar PV system the cost per watt is the general approach to understanding the pricing of systems. For example, a system that is comprised of 3,000 watts of solar panels will cost between $9 and $10, a watt to acquire the equipment and install. For a 3,000 watt system this translates into $27,000 - $30,000, before taxes. This size of system would produce approximately 3,800 Kilowatt Hours (KWH) power annually. Assuming a home uses 10,000 KWH a year, this level of power production would offset 38% of the usage.

Question #3: What is my payback period for installing a Solar PV system?

Response: The answer to this question depends upon the following:

• Escalating cost of electrical energy in your area;
• Net-metering program for your area;
• Federal solar tax credit, currently 30% for business and residential, capped at $2,000 for home owners;
• Rebates or Grants that may be offered at the state or Federal level;
• Net Present Value of adding an energy producing asset to your home or business;
• Local real estate market demand for sustainable or "green" features;

For each of our clients, we provide you with a financial analysis for your project that is in a form that can be reviewed with a trusted financial adviser. Two "Real World" examples:

• Residential 3 KW System 15 Year Payback Period
• Farm 6.8 KW System 10 Year Payback Period, with Internal Rate of Return 9.1%

Question #4: We are interested in installing a wind turbine and it is always windy on our property. Is it practical to install a wind turbine?

Response: It is very important to understand the average annual wind speed in an area and how it correlates to monthly energy production in KWH. For example a Southwest Windpower Skystream 3.7 will produce approximately 250 KWH of power per month if the wind averages 10 mph. However, at 12 mph the power production is 400 KWH of power per month, a 60% increase. Compare the production level to your monthly energy usage and you will understand your offset. For most situations we recommend installing a wind turbine if your average annual wind speed is great than 12 mph.

Question #5: Will my utility pay me for the excess power I produce?

Response: The states of Missouri and Illinois have a form of "Net Metering" laws in place. The new Missouri law took effect January 1, 2008 and provides credits for the excess energy produce. The credits produced can be used to pay your electric bill in a given month. In Illinois, net metering is available to electric customers that generate electricity using solar energy, wind energy, dedicated energy crops, anaerobic digestion of livestock or food processing waste, hydropower, and fuel cells and microturbines powered by renewable fuels. Systems up to 40 kilowatts (kW) in capacity that are intended primarily to offset the customer's own electrical requirements are eligible.* While Illinois's investor-owned utilities and alternative retail electricity suppliers must offer net metering, the state's municipal utilities and electric cooperatives are generally not required to do so. In Kansas, there is no Net Metering law on the books. However, KCPL has implemented a program similar to the Missouri program for its Kansas service area. Other utilities pay an avoided cost rate for excess power on a volunteer basis.

Question #6: How can I heat my home with Solar Power?

Response: Solar Air Heating or Solar Hot Water Heating Systems can assist in heating your home. These panels, which use a different technology actually capture the heat from the sun on their surface and then transfer the heat either to a holding tank, in the case of hot water or directly vent the heated air into a room. In some cases you can place a heat exchanger in your furnaces' cold air return. Using Solar PV Panels and batteries should not be used to run electric or resistive heating elements. With large wind turbines it is possible to use a diversion load, which is a resistive heating element to produce heat. This type of application should be evaluated closely.

Question #7: What types of permits are involved to install a Solar or Wind System to generate electricity?

Response: All cities and vast number of counties require an electrical permit be obtained before a system is installed. The system must be installed in accordance with local electrical code requirements, which are often based on the National Electric Code. In addition, the local utility will require a interconnection and net metering agreement be put in place. The local permitting authority will inspect the system to ensure it was installed in accordance with local codes. In some case the fire marshal will inspect as well. All utilities require the system be inspected by a licensed engineer or electrician. (The Energy Savings Store is a fully licensed contractor and can fulfill these requirements)

Question #8: I am interested in installing a solar hot water system, how big of system do I need?

Response: Sizing a solar hot water heating system is based on the number of occupants of the home. The average person uses 20 gallons of hot water per day. In the case of a home occupied by 4 people, a system capable of heating 80 gallons of water is required.

Question #9: Question What will the payback period be associated with installing a Solar PV system on my home?

Response: Using the following assumptions for a 3.0 KW Solar PV Residential System and a traditional payback analysis approach:

• System cost of $27,000;
• Annual energy production of 3,937 KWH for a grid tied system
• Electric rate of $0.10KWH;
• Annual electric rate increase of 9%;
• Federal Solar Tax credit of 30% is applicable after January 1, 2009;
• Renewable energy credit certificate of $0.03 per KWH;