Grid-tied Solar Power Systems
Grid-tied
solar systems are popping up all over California as homeowner's
and businesses are realizing the incentives to go solar.
How it Works
Solar, or PV (photovoltaic) systems generate electricity from the
sun using solar panels and an inverter that is designed to synchronize
the power produced by solar panels with the electricity that comes
from the utility company. With a PV system installed on your home,
you become a micro electrical generator. The electrical power that
you generate either offsets your usage or, if you are producing
more than you are using, is fed back to the electrical grid, crediting
your utility account. This arrangement with your utility company
is called Net Metering. Because a net metered account is rectified
over a 12 month period, you can bank excess power you may produce
in the summer towards winter months when the sun shines less frequently.
In this way, your summer PV production is like putting money in
the bank.
Solar Economics: State rebates,
tax incentives, and system performance can cover over 40% of the
cost of a PV system in the first year (see Rebates
& Tax Credits). The real savings come, however, in the next
30 years of electrical generation with savings typically reaching
tens or even hundreds of thousands of dollars over the life of a
system with potential pre-tax yields of 13 to 23%. Your yield is
not subject to income tax and the added home appraisal value is
not subject to property tax! To make your purchase of a PV system
as easy as possible, California Solar Electric Company will assume
the CEC rebate so that your upfront cost will be only the net cost
after rebate. This arrangement eliminates the need for you to front
the thousands of dollars the CEC will be giving you for your system
- we will simply deduct that money from your contract price. If
the upfront cost of a PV system is still prohibitive, it is entirely
possible to finance a system with terms that show a positive cash
flow in the very first month. We will be glad to put you in touch
with lending institutions that specialize in PV systems financing.
Please click on the "Turnkey System" link below to view
a step by step explanation of a California Solar Electric Company
turnkey Grid-tied system project.
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