According to a recently published bulletin from California’s Employment Development Department (EDD) photovoltaic (PV) solar installations are increasing around the country, with some areas like California experiencing dramatic increases. Some reasons for this relate to perpetually increasing energy costs, rebates, federal tax incentives and a gradual decrease in the pricing of solar modules to smaller dealers, installers and DIY customers. Bottom line is that the cost per watt is becoming more affordable.
In the past, the “economies of scale” concept was firmly established with PV module purchases. Smaller entities paid around $4 per watt while discounts of up to 50% were given to larger firms placing major orders.
In the last couple years, a trend of web based sales started balancing the paradigm. As larger scale solar business still continues to grow, web based suppliers are now making the market more competitive for the little guy. The market appears to be healthy, competitive and better diversified. At this point in time, high quality poly and mono crystal modules with 25 year warranties can be purchased in single home orders for $1.75 – 2.00 per watt (some even include shipping!). With modules generally being the lion’s share of the job cost, this is a significant break for small businesses getting started in solar as well as DIY folks who are on the fence due to initial cost concerns.
Another major consideration and expense are inverters. They convert the solar DC power to household AC and condition the power to maximize efficiency and sync with grid frequency (60 Hz). The inverter business is becoming more competitive with new players entering the market on a regular basis. Most traditional PV solar inverters used to come with a 10 year warranty. Manufacturers are now beginning to increase the length of warranties. This benefit to the consumer allows manufacturers to better compete with each other as well as mirco-inverter companies that offer 25 year warranties on new models.
For those looking for a smaller system, micro-inverters offer a cost effective solution. A micro-inverter is mounted directly below each module and converts the DC power to AC on the roof. This “plug and play” technology makes installation easier and faster while forcing others in the market to evolve.
Although some state rebates have dramatically fallen in places like California, the 30% federal tax credit is still available through 2016. Hopefully this will be extended. For those interested in a solar system, now is definitely a good time to consider having one installed.
How do I know if I’m getting a good deal?
The best way to compare solar quotes is apples to apples, essentially cost per watt or kilowatt (1 kilowatt = 1000 watts). Many states offer rebates. These states also have their own system of measuring realistic system output. Specifications on software based forms are a good way to compare systems. They prevent bait and switch tactics. Once the form is filled out and submitted, field verification is required (in order to validate the rebates) to ensure that modules, inverters, tilt and azimuth are as stated by the installer. The installer is not allowed to substitute other major components at the last minute.
System warranty is another major factor to consider. In California, installers must warranty all system components and the roof for a minimum of 10 years, including labor.
For the DIY installer, a solar savvy, certified electrician should always determine the maximum system sizing based upon main load panel specifications. They can also assist with wire sizing, disconnects and other electrical interconnection components since they are familiar with the National Electric Code (NEC). They should be the one to do the final connections at the service panel. It’s great to save money and learn about the system installed on your home. And safety should always be the most important thing considered for both you and your family. GO SOLAR!!!
