Photovoltaics 101
Click on a question below to reveal the answer.
- How much does a solar system cost?
Total cost depends on the system size, equipment and installation type. SPG Solar will analyze your specific electrical usage and project site to determine the best system size and installation type for your facility. Other factors such as current electric rate schedules, financial incentives, and system financing can affect your overall investment. We offer competitively priced systems with the highest level quality service and products.
- Are incentives or rebates available for solar?
Yes. Many states and utilities offer a variety of incentives to help offset the initial cost of installing solar power for commercial and public facilities, further increasing your return on investment. In addition, the federal government currently has a 30% Investment Tax Credit which helps to offset a large portion of the upfront system investment. Our team of rebate and interconnection specialists can help you navigate the incentive process from beginning to end. In most cases the only work you will have to do is sign a contract and the rebate paperwork and we take care of the rest. Please see our Incentives page for more information.
- Is now a good time to buy a solar system?
There has never been a better time to make the transition to solar power. Solar technology continues to improve and many Federal, State and regional incentives are currently in place that significantly reduce the cost of solar.
- Is solar electricity cost-effective?
Yes. In many cases SPG Solar can provide you with a 100% financed solution that will save you money from the very beginning while working towards ownership of a valuable asset. Solar is a low-risk, high return investment that will supply your business with free electricity for years after the system is paid for. SPG Solar will analyze your specific electric usage and calculate exactly what your return on investment will be and how much you will save over the life of the system.
- How long does it take to realize a 100% return on investment for solar?
If you finance your system, you may realize net savings as early as the first year. Instead of paying your monthly utility bill, you’ll be making payments for your solar PV system. Commercial solar systems have a typical payback period of 5-10 years, but your exact payback period will depend on your electrical usage, electric rate schedule, and cost of your system. As part of our free site evaluation, we will walk you through the Return on Investment, Net Present Value, and simple payback of your new system.
- What financing options are available for solar power?
There are several ways to finance a commercial solar power system. These include:
- Power Purchase Agreement (PPA)
- Lease
- Other secured loans
There are many benefits of a financed solar solution. Please see our Commercial Financing page for more information.
- Are there any special loans for Government or Non-Profit Organizations?
Some states such as California offer higher cash rebates to Government or non-profit organizations who can’t utilize the 30% Federal Investment Tax Credit (ITC). In addition, there are a variety of loan options available with low or no interest for these local and state Agencies.
Third-party financing, such as an off-balance sheet lease or a Power Purchase Agreement (PPA), are great options for government and non-profit organizations that would like to install solar power but are not able to take advantage of the tax credits. Private owners are able to capture tax incentives and sell or lease the system back at advantageous prices.
Please see our Commercial Financing page for more information about Leases and Power Purchase Agreements.
- What size system do I need?
SPG Solar’s experienced Account Executives and Technical Design Team will work to tailor your solar system to meet your unique energy needs and site specifications. With our free site analysis, we will review your energy needs and location-specific characteristics to present you with a tailored solution.
- How long does it take to install a solar system?
Installation time depends on the size and nature of the system as well as attributes of the system location. SPG Solar has some of the quickest build times in the industry and we work around your business needs. Large-scale commercial tracker installations typically take several weeks to complete.
- What kind of permits do I need to meet local building codes?
Solar systems must be permitted and inspected by local authorities having jurisdiction. Each solar system must also meet local building and national electrical codes. SPG Solar is committed to ensuring each system we build meets or exceeds these regulations. We are licensed and bonded in each state where we do business and our Design and Project Management Team obtains all the necessary building and electrical permits for the systems we build.
- How does solar electricity help the environment?
Your solar system will reduce the current demand on existing fossil-fuel power plants, reducing greenhouse gas emissions and local air pollution. By going solar you will be taking an exemplary leadership role in your community by doing your part to protect the environment from further damage caused by long-established energy sources. Solar energy systems are endorsed by the Environmental Protection Agency (EPA) as an effective alternative to prevent the release of pollutants into the atmosphere by traditional fossil fuel energy sources.
- What is Net Metering?
Net metering is a type of renewable energy incentive that allows the owner of a solar system to receive credit from an electric utility for all, or a portion of, the electricity their system produces. You can think of it as using the benefits of the utilities transmission lines as a “battery-backup” while they receive the benefit of using your excess solar power during peak demand periods. Please see our Incentives page for more detailed information.
- Will Utility companies buy electricity produced by my system?
Yes and no. When you interconnect your solar electric system to the energy grid, you enter into a Net Metering Agreement with your utility company. Net metering is a renewable energy incentive that allows the owner of a solar system to receive credit from an electric utility for all, or a portion of, the electricity their system produces. When more energy is consumed than is produced, such as during the night or through seasonal business cycles, electricity consumption is drawn against this credit instead of billed to you directly.
- What happens on a cloudy day or at night?
Solar electric systems cannot produce electricity without sunlight. In cloudy conditions, power output is reduced, and at night when the sun is not available, your system will not produce electricity and your facility will draw electricity from the utility grid. You can think of the grid as a “battery back-up” when the sun isn’t shining and your system isn’t producing electricity. This is one of the advantages of grid-tied solar systems.
- Is solar power reliable enough to power my facility?
Yes. Our clients include many of the world’s largest companies, such as Pepsi and Johnson and Johnson, that require reliable power sources. Meticulously designed and built to exacting standards, our systems are created to be as maintenance free and reliable as possible.
- What is the lifespan of a solar system?
Solar systems can generate power for up to 40 years or more. Some of the first solar panels were designed in the late 1950s for applications in space programs. In the 1960’s and 1970’s the first commercially available solar photovoltaic panels were installed, many of which are still in use today. Once installed, solar power system requires little or no maintenance, and will provide electricity cleanly and quietly for 25 to 40 years. All of our systems come with an installation warranty and 25 year manufacturer’s warranties on the solar panels.
- Do I have the right space for a solar system?
A solar power system can be installed on almost any type of roof in good condition. Furthermore, your site might be appropriate for other types of installations such as those on solar carports (SolarPorts), on ground mounted tracking or fixed-tilt systems, and even floating on water (Floatovoltaics®). SPG Solar will analyze your site to determine the best fit for your needs.