Frequently Asked Questions
Solar Cost Effectiveness
Are solar power systems a good investment?
Yes, they can be very cost effective. An optimized system design, local and federal incentives, depreciation, tariff management and other factors can yield attractive financial results. Your location, local utility and other factors have an impact on costs and benefits. As a full service provider, Convergence Energy can design a system and do the work needed to take advantage of these financial opportunities.
Convergence Energy has designed and built an innovative Networked Solar product that can reduce up front costs substantially, improving return on investment (ROI).
How long until my system realizes savings?
As soon as the solar power system is connected and exposed to the sun, energy is being produced. The payback for a solar power system will be influenced by many factors, such as amount of sun, electrical consumption of the installation, financing, and various incentives that are available from federal an local governments. While there is a wide range of scenarios, payback periods of 8-10 years are possible.
How much does a solar power system cost?
That depends on the size of the system, the technology used and your situation — factors that can change the price by 50% or more. One rough rule of thumb is that the upfront cost for solar photovoltaic (solar cells) is about $20,000 per thousand square feet of building. So, a typical 3500 sq. ft. house would need a system initially costing $70,000 up front if the system is sized for normal energy usage. The net cost of such a system is lowered by tax credits and local incentives, and can be half of the up front cost (or less with depreciation in commercial installations).
Solar photovoltaic is not the only technology available. Solar hot water, for example, can reduce or eliminate ate the cost of heating water, often for $10,000 or less.
Is financing available for installing a solar power system?
Financing is available through local lending institutions. A home equity loan may be the one method of financing for a residential installation. Commercial installations can be financed through property secured loans, capital equipment loans or equipment secured loans.
Do solar power systems affect property value?
Solar power systems can be one of the best investments you make on your home. There is legislation that prevents your property taxes from increasing with the installation of solar power systems even though these systems add value to your home. Recent surveys have shown that for every $1000.00 reduction in energy consumption per year results in appreciation of $20,000.00 as a consequence.
What kind of changes can I expect to see on my utility bill?
The simple answer is that with our Custom Install products you’ll see a reduced utility bill. There are however many factors that come into play with the savings one would realize from a solar power system. The best way to figure out potential savings is by scheduling a solar power assessment from Convergence Energy.
Are the incentive rebates for real?
Yes! The rebates in some states pay for 30-35% of the installed cost.
Are there any tax incentives?
Yes. Homeowners and businesses may claim a 30% federal investment tax credit. Commercial investments are also eligible for accelerated depreciation. There is a variety of local, state and utility incentives that may further enhance your savings.
Solar Integration with Your Situation and Needs
Do solar power systems work in northern states?
Yes. There is adequate sun for cost-effective solar in all 48 states in the continental U.S. As one demonstration of this, Germany – with less sunlight than in any of the lower 48 states – has the highest per capita solar installation rate in the world.
Is my roof right for solar?
Any south facing roof is suitable for a solar power system installation. Solar panels last 25 years or longer so the roof should be fairly new so replacement isn’t in the near future. The roof material and pitch are inconsequential to the installation of a solar power system.
With our Networked Solar product, the solar panels are not on the consumer’s roof — they are on our solar farm, optimized for electricity production.
Can solar be aesthetically pleasing?
Convergence Energy can often work with your architect to integrate solar panels into your design. In addition, solar panels come in many styles, one of which may work better than others with your building.
Solar Technology
What solar technologies does Convergence Energy use?
We have experience with each of the primary solar technologies: solar photovoltaic (PV), solar hot water and geothermal. We also work with micro-wind for remote installations.
How does solar electricity work?
The sun’s energy in the form of photons releases electrons from their bonds in the photovoltaic (PV) silicon semiconductors that make up the solar cells. The flow of these electrons makes up the current that will ultimately be utilized in your home or building.
What are the major components of a solar electric system?
A grid-tied (connected to the electric utility distribution system) solar electric system requires solar photovoltaic (PV) modules and one or more inverters which converts the energy produced from your solar power system to AC which is consistent with the power supplied by your utility.
What does net metering mean?
It first helps to understand that in a solar PV system you both make power and consume power. Basically, you sell the power your solar system makes, and you use power from the utility just as you would normally without solar.
Net metering is a term used to describe the credits a solar power system gets from the electric utility in your region for the power you produce. You pay for power used minus power produced, or the net amount metered.
When you install a solar power system an agreement is made between you and the local utility company. This agreement provides you with the terms that the utility will buy back the energy that is produced by your solar power system. This agreement varies from state to state, so the best advice is to have Convergence Energy analyze your unique situation. Any kWh that are produced by your solar power system will be credited or purchased back by your local utility.
What is a solar farm?
A solar farm is open land with large arrays of solar panels on it. These arrays can be oriented optimally to capture the sun, and the panels can be motorized so that they follow the sun as it moves from east to west daily (and north to south with the seasons). As a result solar PV panels on a solar farm can be more efficient than some on-building installations. Click here for an explanation of how a solar farm works.
What happens to the solar electricity that I do not use?
Any excess solar electricity produced will go back into the grid through your meter, running it backwards. You are credited for each kWh produced at a rate determined by your local utility.
What happens when the sun isn’t shining?
Your solar electric system will not produce electricity without direct or diffused sunlight. On cloudy days you still produce power, but less than you do on sunny days. With cloud cover and at nighttime, you will draw electricity from the grid. You build up credits on sunny days and draw from these credits on cloudy days and at night.
What if there is a black out?
If there is a black out or brown out you will lose power from your solar system.
Do I need batteries?
You do not need batteries if you are tied into the public utility grid. Essentially your utility company stores your solar electricity for free. Batteries would only be necessary if you need power during blackouts or if you are not connected to the grid. Batteries are very expensive and reduce the efficiency of your system.
Do I need a generator?
You do not need a generator if you are installing a solar electric system. A generator can be integrated to work with solar to power your house for a certain number of hours in case of a black out.
Which appliances can I power with my solar electric system?
You do not designate electricity to any specific appliance. The electricity produced by your solar system functions in the exact same way as the electricity from the grid. Your solar electricity will provide power for all of your uses if it is large enough.
Is it true that solar modules are still not very efficient?
Silicon solar cells have conversion efficiencies of 10 to 14%. Your car, at best, converts gas at a 20% efficiency rate. The difference is that gas costs more than sunshine. The cost per kWh of energy produced is a more relevant factor. Other considerations are the space required and the total cost.
How much power do I use?
You can find out how much electricity you use by looking on your utility bill or calling your electric utility. It is very helpful to get the last 12 months of electric usage in kilowatt hours (kWh). Your electric utility can provide you with this information over the phone.
Solar Hot Water
Is Solar Hot Water a good investment?
The potential savings on water heating bills are affected the most by the type of fuel you are using to heat that water and the number of people in the home. If you are heating hot water for two or more people and you heat water with electricity or with bottled or natural gas, then you owe it to yourself to look at solar water heating, it could be a great investment for you.
What is the “payback” on a solar hot water system?
Solar water heating systems provide quality hot water at a lower cost than heating with electricity or LP gas with more equity value in your home. While payback period will depend on the complexity of your installation, we typically see a 9 to 11 year payback.
Solar collectors are typically designed to last as long as your home with little or no maintenance. These systems often give a 14% to 20% per year non-taxable rate of return on your money – even for a two person household. It is important to remember that hot water is a constant daily expense; other large household appliances, like air conditioners and heaters, are seasonal expenses.
Hot water is typically 20% to 30% of the annual utility bill. Hot water for showers, dishwashing, and laundry costs about $110 a year per person (when LP gas costs $1.15/gallon or electricity costs 7 cents/kilowatt hour). When electricity is 10 cents/kWh or LP gas is $1.60 a gallon, it will cost about $646 a year to heat water for a four-person household. A properly sized solar water heating system can be expected to save this household $450 to $600.
What about adding the Solar Hot Water Heater into the mortgage?
This is a great time to install a solar hot water system. The monthly savings are far greater than the small increase in mortgage payments. And, the tax savings from the home mortgage or home improvement loan — typically 25% or more — count as an itemized deduction on your income tax. Typically, the after-tax rate of return on investment will be over 18% per year, even for two people. You also increase the property value of your home and its visual perception as an energy efficient, environmentally responsible home.
What about the appearance of a Solar Collector on our roof?
Today solar collectors are typically integrated into the slope of the roof. This method of installation gives the solar collector the appearance of a quality, opaque, glass skylight. In most cases, since the piping is not seen, it actually improves the appearance of the home because it looks like an elegant, expensive skylight. Convergence Energy, LLC offers a free solar site survey to determine the location of the solar collector, and to verify that you will not have any collector shading problems.
Solar Power and the Environment
What about the environmental benefits of going solar?
Any time you use solar energy to offset the amount of fossil fuels that are burned, you contribute to everyone’s health and welfare. Operating one solar water heater instead of an electric or gas water heater saves the equivalent of nine barrels of oil every year and reduces carbon dioxide emissions (a greenhouse gas) by 1600 pounds and sulfur dioxide (contributes to acid rain) emissions by 12 pounds. Multiply those emissions per household by all the homes in your neighborhood, town, county, or state, and the benefits — and the air and water — become even more clear.
In summary, solar power is:
Renewable: The sun is a virtually infinite supply of renewable energy allowing for the conservation of finite resources.
A one kilowatt PV system each month:
prevents 150 lbs. of coal from being mined
prevents 300 lbs. of CO2 from entering the atmosphere
keeps 105 gallons of water from being consumed
keeps NO and SO2 from being released into the environment
Distributed: By producing their own power, individuals, corporations, and other institutions can reduce energy demand on the utility grid.
Reliable: Solar power system have no moving parts and are able to power residential and commercial facilities
Clean: Solar power systems produce no noise or emissions. As a result, it can be easily located in densely populated urban areas, on parking structures, rooftops or on the ground.
Smart: Due to many financial incentives, many solar power projects can be cash-flow positive quickly and reduce your operating costs.
Secure: Solar electric power is independent of the costs of fossil fuels and can provide a permanent source of stable, secure power at a fixed cost.