Category Archives: Solar Leases and PPA

Leases or Power Purchase Agreements (PPA) for solar photovoltaic (PV) systems, solar hot water systems, Geothermal systems

Key Metrics for Comparing Solar Panels

So you’ve made the decision to go solar. Well done! If designed right, a solar power system is a great, long-term investment with both financial and environmental benefits.

Choosing the right solar panels is one of the most important steps in designing your solar power system. There are hundreds of options, and while all panels are designed for one purpose – to convert sunlight directly into electricity, not all panels are created equal. Different solar cell technologies and the quality of manufacturing can impact the performance of your panels. For these reasons, choosing the right panels to meet your specific system needs can sometimes be a complicated task; but, it doesn’t need to be.

Here are a few things to consider when evaluating different solar panels.

Efficiency – Efficiency measures a panel’s ability to convert sunlight into DC electricity. The higher the efficiency, the less area needed to generate a given amount of electricity. Panel efficiency will dictate the physical size of your system so it’s an important factor if you’re a homeowner or business owner with limited space. From an environmental perspective, more efficient panels translate into less material and less manufacturing waste.

PTC Power Rating – Power ratings measure a solar panel’s power output in watts. Every panel is assigned a nameplate power output value, which is measured using STC (Standard Test Conditions). Because the STC rating is a measurement calculated under ideal laboratory conditions, it’s not always a useful metric for designing your system.

A more accurate measurement commonly used in the U.S. is the PTC (PVUSA Test Conditions) rating. The PTC measures panel output under more realistic conditions.  In some states, the PTC rating is the benchmark for calculating system rebates so it’s an important metric to know. If a PTC value isn’t given, a good rule of thumb is that the PTC rating is about 10-15% less than the STC rating.

Warranty – Manufacturers provide power output warranties to ensure that their panel performance won’t fall below a specified level over the term of the warranty. Depending on the manufacturer, terms usually range between 20 to 25 years. For example, a manufacturer might provide a warranty to guarantee that peak power output does not fall below 80% for 20 years. Sometimes, manufacturers also include a secondary warranty that ensures a higher output level over a shorter period of time (e.g. 90% peak power output for first 10 years). Additionally, most panels come with a workmanship warranty that protects consumers against defective panel parts for the first 5 or so years of operation. Warranties can protect you against operating risks, so you should factor them into your evaluation of panel options.

Degradation Rate – The degradation rate measures the rate at which a solar panel’s power output degrades or decreases over time. Typically, degradation rates for quality panels are below 1% / year. Ideally, you want this number to be as low as possible. Taking into account degradation rates is important for calculating your system’s lifetime return on investment.

Temperature Coefficient of Power – The output of a solar panel is inversely proportional to the temperature of the panel. In other words, as temperature increases, panel performance decreases. The Temperature Coefficient of Power quantifies this relationship between heat and power output. It’s expressed as:  % Power / °C. The smaller the temperature coefficient of power, the better the panel will perform at higher temperatures. If you happen to live somewhere hot, a low temperature coefficient will be important in maximizing your system’s efficiency.

Manufacturer Background – It’s also important to know something about the panel manufacturer. A financially stable company is more likely to honor its warranties if your system fails. Additionally, you can expect that a well-rooted company with a strong reputation will provide more customer support and be more open to customer feedback. For those that like to buy American, you’ll want to understand where the panels and components are being manufactured. Doing some homework on the manufacturer is a great way to lower the risk of your solar investment and to ensure that all of your goals are being met.

Panel Aesthetics – If the look of the panel is important to you, always request the spec sheets for the models you are considering so you can see a picture.  You might also check out our case study section to see how various panels look on different roof types.  Panels come in a variety of colors (black or dark blue usually, but new colors have hit the market recently) and the casing may also be a different color than the cell area.

The metrics outlined above will help you to evaluate the panels included in your solar quotes to maximize the return on your investment. For most smaller, residential installations, a deep investigation of panel quality differences is probably not necessary. That said, consumers should ask providers about the differences in the technologies they are suggesting since technology quality can impact your solar power system’s the financial returns. The measures above affect factors such as the amount of savings you will realize  and the value of production-related incentives such as SRECs which in turn will affect your return on investment. Even if you lease your solar system, your financial returns and your environmental benefits can be limited by lesser quality panels. Of course, there are other variables to consider beyond just the panels when making your final decision. Things like the price of your installation and the quality of your solar installer are also important. If you haven’t taken the first step to get quotes for your solar project, visit our Solar Marketplace to quickly receive multiple quotes from our network of high quality installers.

[Stay tuned for more consumer-friendly EnergySage insights on assessing panel quality]

Party Politics Aside, Solar Power Systems Provide Something for Everyone

A recent Gallup poll determined that 2 out of 3 Americans want the U.S to put more emphasis on generating domestic energy through renewable sources—And that desire was reflected across political parties. We weren’t really surprised by these findings. When you think about it, clean energy has its perks for almost everyone regardless of their political leanings.

 

 

 

 

 

 

 

 

For conservatives who tend to be concerned about fiscal outcomes, clean energy systems are a sound investment. Take solar photovoltaic (PV) systems (also referred to as solar panel systems or solar power systems) for instance. Increases in property value, decreases or elimination of electricity bills, and the financial rewards of Solar Renewable Energy Certificates (SRECs) are just a few ways that solar panels can deliver sound economic benefits. In many instances, the returns on investment rival those of traditional investments such as stocks and bonds. It’s an attractive option for folks who are focused on the bottom line.

For the more liberal, environmentalism is a pulling factor. Renewable energy is a viable solution to the increasingly palpable problem of climate change. By reducing greenhouse emissions and the harmful practices associated with extracting energy from other sources, clean energy represents an important pathway to a healthier planet.

For those focused on the economy, renewables make significant contributions to the financial health of our country. The clean energy sector represents a strong source of job growth. Clean energy is also a way for businesses to save money, better manage operating expenses, and become more competitive which contributes to job retention across multiple industry sectors. The environmental aspects of renewables also contribute economically, preserving the well being of many industries such as farming, fishing, and tourism that require a healthy environment in order to thrive.

Finally, those who crave less governmental interference in their day-to-day lives connect with the independence that clean energy provides. Property owners who adopt clean energy from renewable sources are far less dependent on traditional energy sources and no longer at the mercy of volatile and increasing energy prices. They become empowered as they make the move from energy consumers to independent energy producers. Likewise, people who support energy independence on the national level understand the global value of adopting renewables locally.

The wide variety of benefits that clean energy provides, whether economic, environmental, or personal, all contribute to the mass appeal of these systems. In a political environment that is often extremely polarized, we love the idea that clean energy could be a pathway to reaching common ground.

EnergySage and Massachusetts Sierra Club announce solar partnership

EnergySage (www.energysage.com) is pleased to announce the development of a formal relationship with the Massachusetts Sierra Club (www.sierraclubmass.org) to accelerate the adoption of clean energy technologies, such as solar photovoltaic (electric), solar thermal (hot water) and geothermal-heat pump (space cooling and heating) systems.  The joint effort will focus on proactive outreach, education and free advocacy services for owners and decision-makers at commercial properties, including businesses, religious institutions, government buildings, schools and non-profits.  The details of this partnership will be announced in February.

Historically, clean energy technologies were perceived as an option only for diehard environmentalists as it would take decades to recoup these costs, if ever.  Today, the rapid decline in technology prices, increased government incentives and the high cost of grid-produced electricity have transformed the financial rationale for these technologies  with near-term paybacks and long-term financial returns.  In addition, the positive environmental impact of these systems and efficiencies in clean energy production offset more fossil fuel produced electricity than ever before.

Although many property owners and decision-makers have strong interest in clean energy technologies, the process of evaluating these options can be quite daunting.  Where do you turn?  Who can be trusted to provide you with objective advice?  Certainly, anyone selling a particular technology will have some bias toward the type of technology they offer (e.g., solar PV) and the specific brands of panels or other related technologies that they carry.  The partnership between EnergySage and the Sierra Club Massachusetts is focused on helping these property owners and decision-makers navigate this complex and confusing process with objective education and advocacy services.

EnergySage has chosen to join with the Sierra Club because it is the oldest and most effective grass roots-oriented environmental group in the world.  The organization has a loyal base of members who trust the Club as a partner in promoting environmental initiatives throughout the world.  EnergySage believes firmly that this trusted relationship will bring more parties to the table to consider these financially and environmentally attractive clean energy investments and help to accelerate adoption of these technologies with the right resources and tools.

For more information about this program, please contact EnergySage at John@EnergySage.com or call 617-453-8924.

EnergySage Hosts a FREE Local Event on “A Homeowners Guide to Investing in Solar Panels and Other Renewable Energy”

EnergySage, the authoritative resource on solar panel systems and other clean energy solutions for residential and commercial properties is hosting a Free local event for residential property owners. The event, located at EnergySage Headquarters in Cambridge MA, will be lead by Chris Williams, a veteran installer in a broad range of clean energy technologies and thought leader in clean energy technology installation quality and public policy development. Mr. Williams will provide homeowners with practical insight into several common clean energy technologies, including Solar Photovoltaic PV systems, Solar Hot Water and Geothermal Ground Source Heat Pump technologies used to heat and cool your home. For more information about this October 25th event and to register, Continue reading

Search for the Solar Grail – Part 1

Hello to new EnergySagers -

I’m located in Massachusetts and I thought my recent experiences looking into solar PV for my house might be helpful for folks.

First off, I should say that I’m pretty lucky to have an unobstructed south-facing roof. I’ve been thinking about solar for a while, and watching prices go down, so a couple of months ago I started asking people who had installed solar PV panels Continue reading

To Lease or Borrow to Finance Your Solar Power System?

How do you decide whether to borrow and buy or lease your clean energy system? Today, leasing is generally only available for solar photovoltaic (PV) systems, so if you’re installing a system other than PV, that fact makes the decision for you— borrowing is the only way to go. If you’re considering a PV system, however, your decision to borrow and buy or lease will depend on your unique financial and environmental objectives.

Just to clarify, if you take a loan to buy the system, you’ll own the system, and make monthly loan payments. If you lease, the leasing company will own the PV system, and you’ll pay to use the electricity generated by the system. Continue reading

List of Financing Options for Clean Energy Systems

Most people who are sold on the financial, environmental, and community benefits of clean energy systems, may still find the upfront cost to be a stumbling block. Before you become discouraged, make sure that you’ve done the math. There are many rebates and incentives available, that can significantly reduce the cost of your system, anywhere from 30%-50%. If you still feel that that you can’t afford the upfront investment, you still have options. Rather than buying a clean energy system outright, you may be able to A) borrow the money you need to purchase your system or B) you could lease the system with no upfront cost to you. Both options ensure that you can still save a significant amount on your energy bills.

Understanding these options can go a long way toward getting over this final hurdle. Continue reading

Solar Panels – a Smart Investment or a Big Expense?

We all know that perception is everything. There’s a huge difference in how people view a $10,000 investment versus a $10,000 expense. So could solar panel systems be suffering from a perception problem? EnergySage set out to find out just that.

In a survey of 150 consumers interested in solar power and other clean energy systems (like solar hot water, small wind turbines and geothermal / ground source heat pumps) for their home or businesses, EnergySage.com found that 50% of respondents thought of solar panel systems as an investment, 30% considered it an expense, and 20% did not know enough to tell the difference between the two. Additionally, only 40% said that they believed solar power systems are a good investment, 20% thought they were a bad investment, and a whopping 40% did not know enough to make that determination. So, now we know where we stand. And, we also know that we definitely have our work cut out for us. Continue reading