Solar Power
The Getting-Started Guide
Solar Power:
The Getting-Started Guide
3. Introduction
4. Grid-Tied Solar
5. Understanding The Grid
6. Why Grid-Tied Solar?
7-8. How Does it Work?
Table of 9. Should You Choose Grid-Tied Solar?
10. Grid-Tied System Price Table
Contents 11. Off-Grid Solar
12. Why Off-Grid Solar?
13-14. How Does it Work?
15. Off-Grid System Price Table
16. Grid-Tied with Battery Backup
17. Why Grid-Tied with Battery Backup?
18. How Does it Work?
19. Grid-Tied with Battery Backup Price Table
20-21. Which System Should You Choose?
22-23. Additional Benefits of Solar
24-25. Summing Up
26. Which Will You Choose?
27. Sources
Introduction
Considering solar? No matter whether you’re thinking about buying or leasing, the
best way to start is asking yourself what you want from a system.
If you’re like most people, you have one or more of these common goals:
SAVING SELF ENVIRON- BACKUP REMOTE
MONEY SUSTAINABILITY MENTALISM POWER POWER
You might feel drawn to one or more—or all—of these. But when it’s time to
choose your system, keep one primary goal in mind.
As we dive deeper into the pros and cons of the different kinds of solar
systems, you’ll begin to see how each of these goals aligns with a particular
system—and why focusing on one primary goal will help you decide.
First up: grid-tied solar... 3
Grid-Tied Solar
& how does it work?
Understanding The Grid
To understand grid-tied solar, you first need to understand “the grid.”
What we call the grid is an electrical network made up of
power lines, streetlights, and buildings that harnesses power
from an energy source like a dam, nuclear plant, wind turbines, or a
combination of the above.
Next time you're in a plane at night, look out your window. That sea
of lights beneath you is the grid.
The utility company regulates the power and charges you each
month to use it. If you’re collecting a power bill, you're
connected to the grid—or “grid-tied.”
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Why Grid-Tied Solar?
CHOOSE IF:
Homeowners connected to the power grid have several solar options,
the most popular of which is a grid-tied solar system. If saving
money and making a sound investment is your primary goal, this
is your best option.
If you’ve designed your solar system to cover most of your power
needs, then during peak hours your array may produce more
electricity than you need to power your home. With a grid-tied
system, this extra energy is then stored in the grid for later use. Your primary goal is to
save money and make a
sound investment.
PEAK HOURS:
Solar systems harvest most of their
energy during peak hours:
Usually 11am - 4pm
6
How Does It Work?
Here are a few of our favorite analogies to illustrate how exactly grid-tied solar works
between the sun, your home, and the grid.
GRID-TIED SOLAR IS... GRID-TIED SOLAR IS...
To understand the way it works, think To put it another way, consider the
of a one-way road. Power flows from sun's energy as a river of energy that
the power plant, works its way flows from the sky.
through the grid, and ends up in your
home. That river travels through your solar
panels to the grid, but as it passes
through a breaker box on the side of
your house, a stream of it is diverted
to power your home.
This breakaway stream is what powers
But a solar power system turns that
your appliances, devices, and lights.
one-way road into a two-way
highway, allowing power from your
solar panels to feed back into the
grid.
7
How Does It Work?
GRID-TIED SOLAR IS...
Here’s one last comparison to show you how this It's important to note that when the grid has a
helps you. power outage, you’ll still lose power in your
home—even if it's sunny out and your solar array is
When running your home requires more energy, collecting energy.
your system draws more power. But when
demand is less, some of the solar energy you’re An outage triggers the inverter to automatically
creating flows directly back into the grid. shut off, disabling all energy flow to the house
and the grid. After all, utility workers need to stay
This primary power you’re “donating” acts like a safe while they work on fixing the problems.
deposit that you can then draw from when you
need extra—like at night, or during long periods A way to combat this is with a Grid-Tied with
of overcast weather. Battery Backup system, which allows your house
to stay up and running during power outages.
This process works like a bank account
does—put power in when you don’t need it, and
withdraw some when you do.
If you withdraw more than you are depositing,
then the utility company will bill you for energy.
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Should You Choose Grid-Tied?
If you are like many people, you may be thinking...
RULE OF THUMB:
“But I don’t want to be connected
to the grid—I want to be totally free
from it!”
PHOTO IMG -
POWERLINES
We hear this comment a lot—and yes, there are other options besides a grid-tied solar BUT PRETTY
system. (We’ll cover them later in this guide.)
If you can use the grid as
a means of energy
But if saving on upfront cost and maxing out your Return On Investment (ROI)
storage, then use it.
is your primary goal, and you are already tied to the grid, then a grid-tied solar system
is going to be your best option. Especially if saving money
and maximizing your
Alternatives to grid-tied require more money upfront. And although these other return on investment is
systems are ideal in some instances (which we’ll cover shortly), they aren’t suitable if your #1 goal.
you’re looking to use solar to save money and grow wealth.
You’ll only hurt your ROI by adding additional upfront and maintenance costs.
(Need help with permits for solar? We’ve got you covered with a free guide.)
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PRICE TABLE of COMMON GRID-TIED SYSTEMS
546 kWh/mo 1,093 kWh/mo 1,457 kWh/mo 2,914 kWh/mo
PRICE $7,571 $13,851 $17,496 $34,067
HOME 2 BED 3 BED 4 BED 5 BED
SIZE 1 BATH 2 BATH 4 BATH 3 BATH
POWER
BILL 100% 100% 100% 100%
REDUCTION
POWER $19,656 $39,348 $52,452 $104,904
SAVINGS
OVER 25 YRS*
SEE THIS SYSTEM » SEE THIS SYSTEM » SEE THIS SYSTEM » SEE THIS SYSTEM »
Prices are based on average 2018 market prices
*Savings estimates are based on $.12 per kWh price for power. Your savings will be greater if you pay more than $.12/kWh,
or if the price of utility power increases in the future. Average production estimates are based on five sun hours on average.
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Off-Grid Solar
& how does it work?
Why Off-Grid Solar?
CHOOSE IF:
Powering a home in a remote location can be challenging.
For example, running power lines from the utility company to a rural VECTOR IMG -
TRIANGLES
house can cost you $30,000 to $100,000 or more.
That’s why using an off-grid solar energy system—one that relies on an
energy storage unit to store and regulate power—to power your
remote home is a reliable and cost-effective solution. (Especially after
you factor in the 30% federal tax credit and state incentives). Your primary goal is to
live remotely, and be as
self-sufficient as
possible.
COST OF
Bringing the grid to a rural or remote home:
$30,000 - $100,000
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How Does it Work?
Basically, off-grid solar is like owning your own power plant.
Off-grid systems have no monthly utility bill—because, as we said, an
off-grid system relies on itself to store and regulate power to your
home. However, that means there are additional costs you need to
factor in over time.
1 BATTERY BANK 2 BATTERY MAINTENANCE
For example, you’ll need a battery bank. Battery maintenance is another cost you’ll
Remember how a grid-tied system deposits need to plan for—most battery banks
and withdraws energy from the grid itself? require routine maintenance.
You can’t get that with an off-grid system
because there’s no grid to connect to. The good news is that maintenance is
simple to perform. Setting aside 15 minutes
Instead, with an off-grid system, your to read the maintenance instructions can
battery bank acts like a power grid just for save you thousands of dollars in battery
you—during the night or short periods of costs over time—and extend the life of your
overcast weather, it will give you the energy batteries for years more than you’d think.
you need.
Depending on your power storage needs,
the cost of this battery bank can be
anywhere from $1,000 to $20,000.
13
How Does it Work?
3 GAS GENERATOR
Most people with off-grid systems add a gas generator to help make up for the weak
winter sun and the reduced hours of daylight we see when it’s not summer.
Fortunately, your solar provider can give you the information you need to help your solar
array and gas generator work together in tandem—to make the most cost-effective
off-grid system money can buy.
If you install too many solar panels, you’ll over-produce energy during peak seasons. If
you buy a generator that’s too big for your needs, you’ll end up just wasting fuel.
You’ll see the best ROI if you work with an experienced solar technician to help you
design a “Goldilocks” system that’s just right for you.
(Need help with permits for solar? We’ve got you covered with a free guide.)
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PRICE TABLE of COMMON OFF-GRID SYSTEMS
WEEKENDER CABIN LODGE RANCH
ie: Huntin’ Shack ie: Vacation Cabin ie: Efficient Home ie: Home or Business
SYSTEM PRICE $3,669 $7,929 $15,268 $22,562
BATTERY $1,466 - $2,798 - $10,472 -
$534
COST $7,224 $14,920 $37,999
EST. SUMMER
PRODUCTION 2.88 kWh/day 7.29 kWh/day 21.87 kWh/day 43.74 kWh/day
EST. WINTER
PRODUCTION
1.44 kWh/day 3.64 kWh/day 10.93 kWh/day 21.87 kWh/day
Lights, phones,
Lights, phone, Lights, phones, Lights, phones, tablets, TVs,
ENOUGH tablet, TV, computer, tablets, TVs, tablets, TVs, computers, fridges,
TO POWER... maybe a small computers, fridge, computers, fridge, freezers, power
efficient fridge. freezer, power tools. freezer, power tools, tools, well pump &
well pump. more!
SEE THIS SYSTEM » SEE THIS SYSTEM » SEE THIS SYSTEM » SEE THIS SYSTEM »
Prices are based on average 2018 market prices.
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Grid-Tied
with Battery Backup?
& how does it work?
Why Grid-Tied with Battery Backup?
CHOOSE IF:
We’ve all experienced a blackout.
One minute you're watching TV or reading a book and then—pitch black.
Next, you find yourself trying to navigate through your dark house, while you
trip over toys and stub your toe on the corner of the coffee table desperately
looking for those darn candles.
But if you had a grid-tied system with battery backup, you wouldn’t even
flinch—and you’d be the one house in the neighborhood that still had the
lights on. Your primary goal is to
be able to power your
grid-tied home in an
emergency.
ASK YOURSELF
What’s critical that you keep powered
during an emergency? Your answer will
help you determine how much backup
power you’ll need.
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How Does it Work?
As we’ve learned, traditional grid-tied With this type of system, you’ll size your
solar systems only operate when utility battery bank depending on what kind of
power is available—and they shut down power is critical in your home, and on
for reasons of safety when it isn’t. how many hours or days of backup
you’d need to feel comfortable.
So, during a power outage, your
grid-tied PV solar system will stop Because of these variables, the battery
working, even during peak sun hours. portion of a grid-tied system with battery
back-up can vary from $2,000 to
But with the addition of batteries $20,000+.
and a backup inverter, your system
will provide seamless, This might not be the best route for
uninterrupted power for your people wanting to maximize their solar
household during an outage. (You investment, but, going grid-tied with
might find this especially important if battery backup does add peace of
you have critical devices or appliances mind for those that want it.
that need to stay up and running.)
(Need help with permits for solar? We’ve got you covered with a free guide.) 18
PRICE TABLE of COMMON GRID-TIED WITH BATTERY BACKUP SYSTEMS
291 kWh/mo 583 kWh/mo 874 kWh/mo 1,639 kWh/mo
SYSTEM PRICE $3,669 $7,929 $15,268 $22,562
MAXIMUM 18.72 kWh 18.72 kWh 39.84 kWh 55.2 kWh
BATTERY 8 AGM BATTERIES 8 AGM BATTERIES 16 AGM BATTERIES 24 AGM BATTERIES
CAPACITY
Fridge, lights, a few Fridge, lights, a few Fridge, freezer, Fridges, freezers,
IDEAL FOR outlets for phone outlets for phone lights, outlets for lights, outlets for
BACKING UP... charging, efficient charging, efficient phone/TV/computer, phones/TV/
well pump. well pump. well pump, security computers, well
system. pump, security
system.
POWER
SAVINGS $10,476 $20,988 $31,464 $59,004
OVER 25 YRS*
SEE THIS SYSTEM » SEE THIS SYSTEM » SEE THIS SYSTEM » SEE THIS SYSTEM »
Prices are based on average 2018 market prices.
*Savings estimates are based on $.12 per kWh price for power. Your savings will be greater if you pay more than $.12/kWh,
or if the price of utility power increases in the future. Average production estimates are based on five sun hours on average.
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Which System
Should You Choose?
You can (and should) be choosy.
Self-sustainability is the ultimate goal for many solar owners—both grid-tied and off-grid. Solar offers freedom and
savings while making a positive impact on the environment.
But since you know you’re going to save money, feel more independent, and be more environmentally friendly—no
matter which system you purchase—you can afford to be choosy when it comes to your other needs.
GRID-TIED OFF-GRID GRID-TIED + Battery Backup
For most homeowners, a grid-tied For homeowners in remote areas, You wish to install battery backup,
system makes the most sense. By or perhaps vacationers looking to however, if your area is prone to
utilizing the grid for energy storage power their home-away-from-home, power outages, or if you have
during higher production hours, off-grid systems are the way to go. sensitive appliances or pieces of
you’ll end up saving more on your equipment which need to stay on at
solar system’s upfront cost. Their ability to provide ample all times.
electricity, with backup power
You’ll save money on a battery bank through a generator and battery
if you don’t want one, because only bank—and the benefit of being
systems that don’t have access to the completely off the utility grid—make
grid need them. These are off-grid systems the perfect choice
important considerations, especially for complete energy
if saving money and maximizing independence. They may cost a bit
your return on investment is your more, but with no monthly utility bill,
#1 goal. you’ll quickly offset the price of
purchase.
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Additional Benefits of Solar
Increases your home’s property value.
Some studies have shown that having a solar power system can increase
your home’s value by as much as $6000 for every kilowatt of power the
system produces.
Let’s break that number down: if you installed a 9.44 kW grid-tied
system in your home, you’d spend between $16,000 - $17,000… But it
could increase the value of your home by as much as $55,000 or more!
That’s roughly a 350% return on investment.
Compare those numbers to a luxury kitchen remodel, which brings only
about a 60% payback of the new kitchen cost. In other words, if you
spent $30,000 on a kitchen, you’d add just $18,000 or so in value.
However the numbers work out, there’s no denying that homebuyers
are willing to pay a premium for properties with a purchased solar
installation.
22
Additional Benefits of Solar
Pay less in property tax
Most states have a renewable energy property tax exemption, which
means the value that a solar system adds to a home does not increase
the property taxes you pay! In other words, in our scenario above,
you’d only pay property taxes on a value of $200,000 (the value of
your home before solar), and not the post-installation appraised value
of $255,000.
This is also unlike, for example, a new kitchen—where you’d have to
pay more taxes for the additional value you added to the property.
Increase land value (with an off-grid system)
The cost of land is a soft savings that often gets overlooked when
deciding to live off-grid.
Most remote properties tend to be much cheaper, because their lack
of access to the grid poses more problems. However, when you
mitigate this lack of access with off-grid solar, your property value will
shoot up—way up. Whether you’re planning a second home, remote
cabin, or vacation getaway, off-grid solar is a doubly smart investment.
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Summing Up
Solar is a personal choice—and which system you buy will depend largely on your needs and
wants. No matter which kind of system you choose you’ll be making a positive impact on the
environment, so you can feel good about your decision.
But we understand that choosing a system can be confusing. To make it simpler for you, here
are our recommendations.
Choose grid-tied if...
You’re already connected to the grid and looking to save on your utility bill, add
resale value to your home, and make a smart long-term investment. You’ll be
required to stay connected to the local utility grid, obviously, and for that
privilege, you’ll need to pay a small monthly fee (roughly $20).
The permits you need to get started can be challenging to obtain. And of
course once you’re set up you won’t have backup power during a power
outage.
24
Summing Up
Choose off-grid if...
Your home or structure has no access to the utility grid.
You’ll be 100% responsible for your own stored energy, which means you’ll
need a battery bank and backup generator.
But the list of pros is attractive. For starters, you’ll be able to find cheaper and
more desirable remote properties. Like grid-tied, you’ll never pay for power
again. And you’ll save a lot of money when you remove the costs of connecting
to the closest grid—if that’s even possible. (One final perk: the permit process is
easier to get through than with grid-tied.)
Choose grid-tied with battery backup if...
You’re grid-tied and you want extra backup power.
This choice is more expensive—and delivers a far lower ROI than other solar
options—which means you should only think about it if return-on-investment
and cost savings aren’t your biggest concerns.
On the plus side, this choice delivers flexibility and energy independence
combined. You’ll have peace of mind in the event of power failure, or when
your PV panels underproduce (such as at night or during the winter months).
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Which is
Right For You?
Only you can decide!
But whatever your choice, at Wholesale Solar we’d be happy to
help you make it.
Ready to get started?
Click to Request a Quote today, or call us at 1-877-765-3384
Sources
http://www.latimes.com/nation/la-na-power-prices-20140426-story.html
https://www.eia.gov/outlooks/steo/report/electricity.cfm
https://emp.lbl.gov/publications/selling-sun-price-premium-analysis-0
https://www.consumerreports.org/energy-saving/real-cost-of-leasing-vs-buying-solar-panels/
https://www.forbes.com/sites/ashleaebeling/2011/08/01/how-much-do-solar-panels-boost-home-sale-prices/#2c82a0
2311f2
http://www.capecodtimes.com/article/20151101/NEWS/151109975
http://www.motherearthnews.com/renewable-energy/solar-financial-benefits-solar-panel-payback-zbcz1510
https://www.eia.gov/tools/faqs/faq.php?id=97&t=3
https://www.usnews.com/news/articles/2016-03-31/when-will-rooftop-solar-be-cheaper-than-the-grid
http://www.nrel.gov/analysis/tech_footprint.html
https://cleantechnica.com/2013/11/08/solar-worth/
http://www.seia.org/policy/finance-tax/solar-investment-tax-credit
https://commonwealthmagazine.org/environment/solar-powers-benefits-outweigh-its-costs/
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