Solar Tour

HOW SOLAR WORKS

Solar panels turn energy from the sun directly into electricity that can be used. They are an earth-friendly way to generate power, as well as good medium-to long-term investments. The panels themselves absorb photons and send Direct Current (DC) electricity to an inverter, which in turn converts the electricity to Alternating Current (AC) to be used in your home. The system is tied to the “grid,” so any excess or shortage of power comes and goes seamlessly from the power company.

SOLAR ECONOMICS

Solar panels save money by offsetting your highest cost electricity against of your best available utility rate structure. When your system produces more power than you consume, your electrical meter will spin backwards, thereby earning you credits on your energy bill. This essentially makes the utility a free virtual battery; however, every 12 months your account is reset and you will not be compensated for energy produced above your annual usage. Therefore, sizing your system correctly for environmental and financial return is very important. Going solar will also help shield you from rising utility rates, which have historically grown by over 5.5% per year and promise to continue rising. In addition, lower energy bills will raise the value of your home, should you choose to sell it.

FINANCIAL INCENTIVES

In many states, you can receive incentives for up to 50% of your total system cost. The federal government offers a 30% income tax credit for both commercial and residential systems, and states like California (and many municipal utilities) pay cash for up to roughly 20% of your cost. Advanced Solar Electric will include the appropriate state and federal incentives in the financial section of your free online estimate.

FINANCING OPTIONS

There are multiple options for financing solar panels. You can:

1. pay cash
2. use a loan or line of credit
3. have a third-party own the system from which you either lease back the panels or purchase the energy produced (this is known as a Solar Lease or Power Purchase Agreement, respectively)

Your choice will be a tradeoff between financial returns, no or low cash down, and a hassle-free clean energy experience. Advanced Solar will help explain and clarify all of the various financing choices.