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Grid tie solar system do they make money

grid tie solar system do they make money

From sloped roof installations to flat roof tilt-up arrays and building integrated models, possibilities for commercial solar power generation are varied and numerous. Companies joining in on the solar trend have the added bonus of selling excess power to the utility for money in the form of credits and savings. The basic principle behind solar energy systems is relatively simple: solar panels installed on a roof or set of buildings generate DC power via photovoltaic cells; a solar inverter transforms DC power to AC, which travels to a breaker box, which supplies the company’s electricity. According to power company Constellation Energy, companies need to take some issues into consideration before they take the path to a cost-effective solar-powered enterprise. The size of the system is a key factor in long-term cost savings and profitability, as it has to be large enough to generate sufficient energy to offset the costs of the investment. As of publication, the company says that a business should generate at least 1 million kilowatts of power annually to achieve any savings benefit. Moreover, the installation should occupy at leastsquare feet of roofspace or 2. While the feasibility requirements for solar power generation among businesses seems to favor larger companies over smaller ones, small businesses can get in on the game by using renewable energy credits. A solar renewable energy credit represents 1 megawatt of solar-generated power, a certain quota of which utilities are required to buy under Renewable Portfolio Standard mandates in some states.

More Information on Renewable Energy

Solar offers more than just an opportunity to reduce your carbon footprint. When you install solar panels on your roof, you are a step closer to taking your electricity production and consumption into your own hands. One of the biggest decisions solar shoppers have to make is whether to install a standard grid-tied solar energy system, a solar battery backup, or a hybrid solar system. A hybrid solar panel system is a combination of a grid-connected and storage-ready apparatus that provides consistent energy supply during day and night. The hybrid system stores energy for later use in one or multiple solar batteries but then can also pull from the grid in high energy use periods like hot summer months. Any solar plus storage system that is not meant to be entirely off-grid will be a hybrid system. Off-grid solar technology is becoming more advanced every year, and a growing number of companies are manufacturing solar batteries for home. Theoretically, this means that you can completely sever your connection with your electricity utility. In practice, it often makes more sense to stay grid-tied, particularly if you live in an area with significant climate variation. Most of the solar batteries for home use available today, like the Tesla Powerwall , are designed to store solar energy generated during the day for your home to use at night.

Grid Tied Solar Systems

This can help you reduce your reliance on utility electricity by storing your excess solar power at home instead of feeding it back into the grid. The trickier proposition is generating and storing enough extra solar electricity in the summer when solar power generation is highest to cover your future needs in the winter, when solar potential is at its lowest. Preventing total power loss in the event of a winter snowstorm or an extended period of overcast days would require a lot of storage capacity, a very large solar panel system, and a significant financial investment to install. Grid-tie solar is the best option for many homeowners, but there are plenty of situations where taking your home off the grid with a solar battery backup makes sense. In some places, particularly in remote areas, off-grid solar battery systems are the best or even the only option. There are a few criteria your property should meet to be a good fit for off-grid solar.

The Net Metering system

You may be asking yourself: When I install solar panels at my residence, what happens if I generate more electricity than I use? What happens to it? Can I sell that electricity back to my utilities company? As well as saving money on your electricity bills , any electricity you generate that is in excess of the amount you use in your home can be sold back to your utilities company, who will pay you for it.

grid tie solar system do they make money

Grid-Tie Basics

Amy Beaudet January 15, I have one word for people who think they can save money by go ing off grid. It gets sold to the electric company, who in turn sells it to your neighbor to use. You can then buy any electricity that you need from the grid, day or night. The initial cost of going off grid is higher than staying connected to the grid for most locations in the US, and there are more recurring costs with off grid, including fuel for the generator and replacing the batteries every 5 to 12 years, depending on the battery technology and how well they are treated. This is not to say going off grid is never a good option. Off grid living can be fantastic. Another way to go off-grid and save in overall costs is to consider creating a micro-grid with your neighbors, sharing one larger battery bank between all of you. Until then…. Depending on what solar inverter you use, you may or may not have some power available when the grid goes out. All grid-tie inverters are required to shut down their connection to the grid immediately when the grid goes out. This is to protect the lineworkers repairing the power lines. If they think the lines have no power on them, and you accidentally send power out to the line, they can be seriously injured or killed.

Grid-Tie Basics

A residential grid-tie system in western Washington will typically pay for itself in around 10 to 14 years. When you install solar panels on your roof, you are a step closer to taking your electricity production and consumption into your own hands. If your solar system is big enough, you can even make money from your utility company in the form of a perpetual energy credit. It not only tells you something about the products, but also helps you determine if your solar professional has practical experience with the products they sell. This provides for the safe maintenance of electrical and utility systems. This increases the return on your investment.

Benefits of Staying Connected to the Grid

Solar Panels Solar panels absorb solar energy from the sun and convert it to DC power. Though it may seem like a good deal at first glance, when you look more closely at the quality, dependability, efficiency, and life expectancy of the product, you may find a slightly more expensive product will offer a better value over the life of your. You have the convenience of utility power plus your system will automatically switch to zystem power if the grid goes down, providing convenient, quiet power to keep your essential household or business loads operating. It not only tells you something about the products, but also helps you determine if your solar professional has practical experience with the products they sell. So far, unfortunately none of those products have actually shown up in the market. Systeem a grid connected solar electric system onto your home or business can help you save money on energy, reduce your dependency on utility company electricity, and minimize the production of environmentally harmful greenhouse gases. While it runs, your PV system reduces your electrical bills, not only because it decreases how much power you pull from your utility, but also because any excess power you produce is pushed back into the grid called net meteringeffectively turning your meter backward. Typical grid intertied solar ma,e consist of solar panels to collect the poweran array DC disconnect to be able to cut the power from the PV panelsan inverter to convert it from DC to ACan Momey breaker panel to accept and distribute power to your household loads, the kilowatt per hour per meter and to the grid which also sends co. This process happens silently grrid automatically every day. Sizing Your Grid-Tie Solar System Grid-connected PV systems are typically sized to eliminate part of your electric bill because of the higher upfront costs associated mke purchasing a larger. For the average solar homeowner in the United States, it usually makes sense to maintain a connection to the utility company. Copy Link.

Commercial Solar Parameters

A grid tie solar electric system — also referred to as grid-tied or utility inter-tie photovoltaics PV — uses solar panels, a power inverter and other components to turn sunlight mobey electricity for your use, while your home remains hooked up to the local utility. This is different from an off-grid or stand alone solar system, where your structure is not hooked up to utility power.

The most common reason people install a solar grid tie system is to reduce their solr bills. Once your system is operating, the power it provides is free and there is little or no maintenance required. While it runs, your PV system reduces your electrical bills, not only because it decreases how much power you pull from your utility, but also because any excess power you produce is pushed back into the grid called net meteringeffectively turning your meter backward.

Eventually, your PV system will pay for itself, but your energy savings will continue long. In addition to what you save on your electric bill, having a grid tie system raises the value of your property. Solar also makes a home more attractive to potential buyers, particularly when compared to an otherwise identical home. This can make a big difference should you decide to sell your home in a tight real estate market.

Another great incentive for installing solar is that the Federal government, and many states and local utilities, offer rebates, tax creditslow interest loans and other incentives for adding solar power.

Please see our Incentives informationor give us a call to find out about programs for which you may be eligible. And of course, solar energy is a clean source of power. It reduces dependence on fossil fuels in a practical and effective way, and helps protect our environment. Fire Mountain Solar never recommends that a customer who is maek hooked up to utility power disconnect and go off-grid.

There are many reasons, but some key ones are:. When sunlight shines on solar panels they produce Direct Current DC. That DC electricity is converted into household AC power by your power inverter, making it available for household use. This process happens silently and automatically every day. When a grid-tie solar electric system generates more power than you are currently using in your home, the excess electricity is sent back to the utility grid. The excess power going into the grid spins your meter backward, allowing your neighbors to use clean, quiet solar power.

At the end of each billing cycle your meter will not have spun as far forward when compared to not having solar electricity, saving you money. If you produce more than you use during a billing period, your utility company will retain it as a credit, which will then be applied to future electric bills.

Grid-connected PV systems are typically sized to eliminate part of your electric bill because of the higher upfront costs associated with purchasing a larger. However, larger systems will cost less per kilowatt-hour generated due to the economies of scale associated with manufacturing processes.

The utilities have adopted a rate structure that increases the cost of electricity as you use more of it. Many people choose a system that will only eliminate the most expensive electricity. This increases the return on your investment.

Sizing your solar grid-tie system is not as complicated as you may think. This number will be in kWH kilowatt-hours. If you have not been in your home for a full year, try one of the many online calculators for estimating your power use or give us a. What to know how big your system should be? Use this calculator to get a ballpark estimate of your minimum system size:.

The simplest way though, is to let us help you. We can save you time and ensure you have accurate information to base your PV array sizing, As with any questions you may have about using renewable energy, feel free to give us a call at from a cell phone, or from your landline.

Once you know how large your solar array will need to be to meet your power demands, you can select the appropriate products. Solar Panels Solar panels absorb solar energy from the sun and convert it to DC power. This is called a PV photovoltaic or solar array. Solar Panel Mounts Racks and Solar Trackers Solar panel mounts are important to provide proper directional and latitudinal orientation, maximize production, and to provide the stability needed to protect your investment theh the force of the wind.

Solar panels can be mounted on the roof, ground, or on a pole. A solar tracker is a device monney orienting a solar panel or solar array toward the sun. Solar trackers increase omney and afternoon exposure, which at the right latitudes and in the right climates can substantially improve the amount of power produced by your.

Power Inverter A power inverter converts the DC power from your solar panels and gdid renewable energy sources into AC power for your use. Power inverters for battery-based systems may include a solar charge controller. Grid Disconnect A grid disconnect allows you to stop the flow of electricity between your solar panels sollar your electrical. This provides for the safe maintenance of electrical toe utility systems. Combiner Box This box gathers all of the solar panel connections at one location, providing a neat, clean looking installation.

However, because our renewable energy solutions are customized to each specific location and client, we may suggest additional products. The number of solar panels mame need and how solat want to mount them are just two of the factors male will affect the overall cost of your off-grid.

Another important factor will be which brand of products you choose. At Fire Mountain Solar we work hard to provide all the information and assistance you will need to select a renewable energy solution that gives you the best overall value for your investment. But sometimes the upfront cost of an item can be misleading. Though it may seem like a good deal at first glance, when you look more closely at the quality, dependability, efficiency, and life expectancy of the product, you may find a slightly more expensive product will offer a better value over the life of your.

For some ballpark estimates on what your grid-tie solar system will cost, please refer to our Complete Packages page. The number of companies offering solar equipment is rapidly increasing, and each solar professional you speak with will have certain products they recommend with very convincing reasons for recommending those products. This can make it a challenge for consumers to know whose opinion to trust, and which products are truly the best. So how do you choose? As with any major purchase, you mmoney want to do your homework.

With all the focus on renewable energy, it is easier than ever to get reliable information about manufacturers and specific technologies, but this can also leave you with an overwhelming pile of information to sort. Our best suggestion is to start by talking to people who already have solar installations.

After you do that, get a second opinion! Since renewables are a major investment, it is always a good idea to talk with more than one professional to be sure you are receiving information that is accurate, pertinent and complete. Once you have recommendations on products to choose, you can also do some research online to see what others are saying about those products.

With the increased demand for renewables, third party testing agencies such as Consumer Reports are also starting to offer consumers quality information. How long has the manufacturer been making renewable energy products? What is the track record of their products? You can find online sources for this information or you can talk with consumers who are using their products. Fire Mountain Solar can help you find end-users to talk with about the products you are considering.

We get calls all the time with moneu asking about the latest and greatest products available on the market. First, we look at who is introducing the product. We know that OutBack. Another reason we are cautious is that sometimes the technology is so new there is insufficient field performance data for us to be confident recommending it. The sysfem common one we hear about is new solar panel technology that will cost almost nothing and make gigawatts of power.

So far, unfortunately none of those products have actually shown up in the market. Is it the right product to do the job? Sometimes you may hear of a couple of different products that have proven track records and that are made by reputable companies.

So how do you know which one is right? Obviously the first consideration is whether or not they will do the job you need them to. Again, xo best recommendation is to talk with the professionals or at least chat with folks who are using the different products to get their thoughts on the subject.

This is a great question to ask. It not only tells you something about the products, but also helps you determine if your solar professional has practical experience with the products they sell.

Payback is usually used to describe the time it takes for an investment to pay for itself, similar to Return On Investment.

A residential grid-tie system in western Washington mqke typically pay for itself in around 10 to 14 years. In addition to your reduced power bills, a home solar panel system increases the value of your home should you decide to sell.

The Federal government and many local utilities offer incentive programs. Overall value is important when choosing between the increasing number of professionals offering solar hhey and services. Often the low bid is from a company that is highly qualified and has a well-managed operation, but sometimes it comes from a company that will cut corners or that may not fully understand the job requirements.

As you would when hiring any type of professional contractor to work on ,ake home, be sure to ask about their experience and for references. You may also consider checking for third-party verified surveys online. There is a lot to consider before investing in a grid tie solar power system, and we hope the information here provides the help you need to feel comfortable when making your decision.

However, it is more than likely you will still have some questions, and we welcome the opportunity to help you find the answers you need. Skip to content. On Grid or Off Grid? Which Brands and Products are the Best? There are many reasons, but some key ones are: Grid tie systems are less expensive than off-grid because they require no storage batteries. Off-grid solar has some unique design limitations, which means most people will need to adjust their power use habits and may need to replace some appliances such as an electric furnace or electric oven to make an off-grid system practical and cost-effective.

Batteries are necessary in off-grid systems to provide power at night or at other times when power is not being produced. They can be expensive and do require regular maintenance. Grid tie solar systems offer you the best of both worlds.

You can have your system sized so that your 12 month average electrical bill is next to nothing, but still have the flexibility to at any time draw more than your solar array is producing without having to do a thing.

What are hybrid solar panels?

Get A Quote. What are the benefits of grid-connected solar panels vs. Deciding whether or not to grid-tie your solar panels is usually pretty straightforward — the clear-cut benefits of being grid-tied appeals to the majority of homeowners.

A voluntary arrangement

There are, however, some people that choose to live off the grid. What would be the best in your situation? Grid-tied, on-grid, utility-interactive, grid intertie and grid backfeeding are all terms used to describe the same concept — a solar system that is connected to the utility power grid. A grid-connection will allow you to save more money with solar panels through better efficiency rates, net metering, plus lower equipment and installation costs:. Batteries, and other stand-alone equipment, are required for a fully functional off-grid solar system and add to costs as well as maintenance. Grid-tied solar systems are therefore generally cheaper and simpler to install. Your solar panels will often generate more electricity than what you are capable of consuming. With net metering, homeowners can put this excess electricity onto the utility grid instead of storing it themselves with batteries. Net metering or feed-in tariff schemes in some countries play an important role in how solar power is incentivized.

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