LEARN ABOUT SOLAR

HOW DOES A SOLAR PANEL WORK?

Quite simply, solar panels collect energy from the sun and convert the energy to electricity that can be used to power your home and send any excess energy back to the grid for credit that can be used when your solar panels are not making energy such as at nighttime.
There are two main Solar PV types: monocrystalline or polycrystalline. Monocrystalline solar panels are more expensive to make because the process for making them costs more. They are made from a single silicon crystal. They have a higher efficiency rating when compared to polycrystalline.. Polycrystalline solar panels are made by using a conglomerate of crystal fragments and melting them together. They have a lower efficiency rating therefore requiring more surface area to make the same amount of energy as a polycrystalline solar panel

HOW MANY SOLAR PANELS WILL I NEED?

One of the first steps that we always take is to have a look at your energy bill.  I always request your most recent bill and from there I analyze the bar chart that shows your previous months usage.  We use software that will analyze your usage and calculate an ideal system size based on your actual data.  If you haven’t been in your home for very long that’s ok too because our software accounts for higher usage during the summer months

ESTIMATED SYSTEM SIZE CAN ALSO DEPEND ON:

  • Plans on Installing a pool, hot tub, or major applianceGetting an electric vehicle
  • Adding a central air conditioner or just hotter summers in general
  • Switching from a gas dryer to an electric one
  • Family size growing or getting smaller

SOLAR PANEL DEGRADATION

Depending on the solar panel of your choosing you will see a loss in production over the course of 25-30 years that can be anywhere from 10-25% of your day one production.  I typically sell higher quality solar panels that offer a 25 year or longer warranty, less degradation over time, and higher efficiency rating.  Each panel has it’s own warranty for degradation so if the fall off exceeds the expected range you can simply have the effected solar panel swapped out for a new one.

WHAT IS THE ADVANTAGE OF HAVING A BATTERY?

Many people who purchase solar think that they will have an advantage over others who do not have solar because their homes will still have power in the case of an outage.  Unfortunately, this is not the case.  Solar is designed to work with the grid 

because if you are making too much energy and the grid goes down your excess energy has nowhere to go therefore, it could burn up your electrical panel or worse.  The only exception to this would be going with Enphase IQ8 microinverters on your system but even than you would need to install additional components in order to create a “microgrid” that would power your home in the daytime in the event of a power outage either with or without a battery.  

Having a battery system connected to your solar can have plenty of upside.  First and foremost, it will allow you to back up a portion of your home’s electrical panel or in some cases the entire panel can be backed up.  This means that when the grid goes down and your battery and solar take over, you will be able to live a relatively normal lifestyle for as long as the power is out.  Depending on your battery size and continuous power rating, you may need to be careful with how much power you use at one time.

WHAT IS THE BEST SOLAR BATTERY TO BUY?

It’s hard to say. The best battery for you will depend on several factors, from the size of your home to the characteristics of your solar installation, and all the way to what you even want to get from an energy storage system. If you have a large home with lots of appliances, you’ll want to look for a high-capacity battery that can keep pumping out electricity for hours on end. If you’re price-conscious and care more about optimizing your solar energy system, a smaller battery with great battery integration may be the best choice.

BATTERY RATING AKA “CONTINUOUS POWER

The power rating of a battery is often overlooked but it is extremely important!  The term “power rating” refers to the kilowatts (kW) of power that the battery can provide at once.  The power rating can vary depending on number of batteries connected to your system, type of inverter/inverters, etc.  This number is essential because it determines how many appliances you can run at once.

Power is expressed either in kilowatts (thousands of Watts) or in Amps, and different appliances use different amounts of power. For example, a typical compact fluorescent lightbulb will use 12 Watts (or 0.012 kW) of power, while a 3-ton AC unit will draw 20 Amps, which is equivalent to 4.8 kW. Most of the batteries available on the market today have a continuous power output of around 5 kW.  Some batteries have a higher short term or “instantaneous power rating” which provides more power in short bursts for something like an AC unit or a well pump kicking on.

BATTERY SIZE AKA “USABLE STORAGE CAPACITY”

Battery size is measured by the amount of electricity that a battery is able to store and supply to your home. While power is expressed in kW, battery size is expressed in kilowatt-hours (kWh), which is power multiplied by time. When purchasing a battery, it is very important to look at a batteries usable capacity because this is the amount of stored energy that your battery can provide.
Since electricity usage is power multiplied by time, if you are using more power, then you’ll run out of stored electricity faster. Conversely, if you’re only using your battery to backup a few appliances with relatively small power consumption, you can keep them running for a longer amount of time. This makes the size of a battery slightly misleading, because the length of time a battery’s charge will last is directly influenced by how much power it’s outputting.
Think about the example above of the difference between a light bulb and an AC unit. If you have a 5 kW, 10 kWh battery, you can only run your AC unit for two hours (4.8 kW * 2 hours = 9.6 kWh). However, that same battery would be able to keep 20 lightbulbs on for 2 full days (0.012 kW * 20 lightbulbs * 42 hours = 10 kWh). In order to determine how many batteries your home will need, it is very important to determine how you will be using the battery in the case of a power outage.

BATTERY LIFETIME: THROUGHPUT & CYCLES

Battery lifetimes are measured with three different metrics: expected years of operation, expected throughput and expected cycles.  Battery throughput and cycles are very similar to that of a new car’s milage warranty.  Usage and wear will have an impact on the longevity of your battery.  The warranty will allow for this and significant degradation or failure during the warranty period often results in replacement at no charge.

To convert a battery’s expected or warranted throughput into an expected lifespan, divide the throughput (expressed in kWh) by the usable capacity of the battery to estimate how many full cycles you’ll get from your battery, and divide that number of full cycles by the number of days in the year.  For example, a 20,000 kWh throughput warranty on a 10 kWh battery means 2,000 expected cycles, or a cycle per day for 5.5 years. 

To convert a battery’s expected or warranted number of cycles into an expected lifespan, divide the number of cycles by the number of days per year: a 4,000 cycle warranty equates to a cycle per day for 11 years.

ROUNDTRIP EFFICIENCY

All solar batteries must meet certain safety requirements in order to be certified for installation in homes and businesses.  Some battery chemistries are slightly safer than others.  Lithium Iron phosphate batteries are considered to be much more stable at higher temperatures when compared to lithium-ion type batteries.  The tradeoff here is that lithium iron phosphate batteries have a lower energy density than lithium-ion batteries, so they take up more space.  My personal choice is lithium iron phosphate batteries.  I like these batteries because they are safer and over time will outperform lithium-ion batteries.  

BATTERY SAFETY & CHEMISTRY-HOW THEY RELATE

All solar batteries must meet certain safety requirements in order to be certified for installation in homes and businesses.  Some battery chemistries are slightly safer than others.  Lithium Iron phosphate batteries are considered to be much more stable at higher temperatures when compared to lithium-ion type batteries.  The tradeoff here is that lithium iron phosphate batteries have a lower energy density than lithium-ion batteries, so they take up more space.  My personal choice is lithium iron phosphate batteries.  I like these batteries because they are safer and over time will outperform lithium-ion batteries.  

WHAT DOES TIME OF USE “TOU” MEAN?

The state of California requires that all homeowners be on a time of use “TOU” plan.  With a TOU plan, the cost of one kWh of electricity varies depending on the time of day. Pricing can be significantly lower during off-peak hours and higher during peak hours that are typically between 4-9 pm.

A good example of how this works would be sending excess energy to the grid at 12 pm will get you a lower credit than for energy sent at 5 pm. Alternatively, you will be charged a higher rate should you need to draw energy from the grid during peak hours. We typically oversize your system by at least 20% to account for the potential of not making enough energy to offset your peak usage.

WHAT IS NET METERING OR “NEM”?

California is the #1 state in the nation when it comes to the amount of solar installed.  Net metering has a lot to do with why our state outnumbers all other states for solar by a wide margin.  Bill credits have everything to do with what makes solar as cost effective as it is today in California.  Currently we are on NEM version #2.  NEM 2.0 was derived due to the cap of 5% of the total peak electricity demand specified in NEM 1.0 having been surpassed.  If you had your solar system installed prior to the initiation of NEM 2.0 and as long as you do not add additional solar panels to your home, you will be grandfathered to NEM 1.0 for 20 years.

A good example of how this works would be sending excess energy to the grid at 12 pm will get you a lower credit than for energy sent at 5 pm. Alternatively, you will be charged a higher rate should you need to draw energy from the grid during peak hours. We typically oversize your system by at least 20% to account for the potential of not making enough energy to offset your peak usage.

NEM 2.0 IS BETTER SO GET IT WHILE YOU CAN!

NEM 2.0 made a few minor changes to the California net metering policy.  The first of these changes relates to Time of Use or TOU.  Under NEM 2.0, any property owner who installs a solar energy system is automatically switched to TOU rates for their electric bills.  Locating your solar panels on the west side of the roof can be beneficial for capturing the late afternoon sun and banking peak hour credits from the production of the panels on that sector of the roof.  The second change relates to Interconnection Fees.  Your newly installed solar system will require a passed inspection by a local city official.  NEM 2.0 requires that all small commercial and residential solar system owners pay a one-time “interconnection fee” ($132 for SDG&E customers) to connect their solar system to the electric grid.  The third change relates to “Non-Bypassable Charges”.  “NBC’S are per-kilowatt hour charges that are built into utility electric rates.  These 2-3 cent per-kWh charges go towards energy efficiency, low-income customer assistance, and other related programs.  Under NEM 2.0 solar customers only have to pay NBC’s for the kWh of electricity delivered by the utility.  None of the solar energy generated and used at home is subject to NBC’s.

NEM 3.0 IS APPROVED-WHAT YOU NEED TO KNOW

Special thanks to solar.com for the following helpful information:

*Update: The California Public Utilites Commission (CPUC) unanimously voted to pass NEM 3.0 December 15, 2022. Based on the timeline below, utility customers have until April 14, 2023 at the earliest to submit interconnection paperwork and be grandfathered into NEM 2.0.

Even with the federal solar tax credit back at 30% until 2032, Californians have plenty of reason to go solar sooner than later.

On December 15, 2022, The California Public Utilities Commission (CPUC) passed Net Energy Metering (NEM) 3.0, significantly altering the net billing rates for solar production and ultimately reduce the monthly energy bill savings for homeowners.

When Will NEM 3.0 Take Effect?

The NEM 3.0 timeline is expected to go as follows:

  1. California Public Utilities Commission (CPUC) released the draft proposal on November 10, 2022
  2. The release kicked off a minimum 30 day public comment period
  3. CPUC voted to approve NEM 3.0 on December 15, 2022
  4. The vote kicked off a 120-day grandfathering window for NEM 2.0
  5. NEM 3.0 takes effect in April 14, 2023

Based on this timeline, Californians have until April 14, 2023 to submit interconnection paperwork to be grandfathered into NEM 2.0.

Note: Your system does not need to be installed by the deadline to be grandfathered into NEM 2.0. You just need to submit complete and accurate interconnection paperwork.

5 things to know about NEM 3.0

  1. It features a major reduction in the net metering value of solar electricity
  2. There are no new charges or fees, commonly known as “solar taxes”
  3. Pairing solar with battery storage will be more beneficial under NEM 3.0
  4. Solar customers that submit their interconnection application before April 14, 2023 can be grandfathered into NEM 2.0 for 20 years
  5. Solar owners that are grandfathered into NEM 2.0 will be able to add battery storage later and remain on NEM 2.0

No new solar taxes

The new rate structure will substantially eat into solar savings and drag out the payback period of going solar, but there is a shred of good news in the version of NEM 3.0 adopted by the CPUC. A series of charges and fees for solar owners — casually known as “solar taxes” — did not make it into the approved version of NEM 3.0.

These fees were, at one time, expected to add around $60 a month to solar owners’ utility bills. They are now off the table.

A push for pairing solar and battery

A major theme in the NEM 3.0 text is a push for pairing solar with battery storage. That’s because the issue isn’t generating solar electricity in California; it’s storing and using it since peak solar production doesn’t align with peak energy consumption.

In fact, the new export rates can be as high as $3.32 per kWh during peak demand hours in September. By adding battery storage, homeowners under NEM 3.0 can store solar electricity generated during the day and push it on the grid in the evening when export prices are at their highest.

Initial analyses of the NEM 3.0 proposal suggest that the return on investment for solar and battery storage will be roughly equal to the return on investment of solar alone. With that in mind, pairing solar and battery becomes more compelling because you get the same return on investment PLUS the additional benefits of having battery backup for power outages.

It’s also important to note that NEM 3.0 includes $900 million in new funding for the Self Generation Incentive Program (SGIP), which provides battery storage rebates for SCE, PG&E, SDG&E and SoCalGas customers.

20-year grandfathering period for NEM 2.0

Another crucial part of the NEM 3.0 decision is that the 20-year grandfathering period for NEM 2.0 remained intact. It was proposed, at one time, that the NEM 2.0 grandfathering period would be cut to 10 years. So, to see the grandfathering period remain at 20 years is a good thing for solar owners.

That means solar customers that submit a complete interconnection application before NEM 3.0 goes into effect on April 14, 2023 can remain under the much more favorable NEM 2.0.

According to CALSSA, a complete interconnection application includes a:

  • Signed contract
  • Single Line Diagram (SLD)
  • Contractors State License Board disclosure (CSLB)
  • Consumer protection guide
  • Oversizing attestation (if applicable)

It’s worth noting that you do not need a permit, a completed install, or a completed inspection to be grandfathered into NEM 2. However, there is a three year deadline to complete the actual construction of the solar system as long as the paperwork is filed and accurate.

Modifications that increase the size of the system made after NEM 3.0 takes effect may cause you to lose your NEM 2.0 status.

Bottom line: There is still time to start a solar project and submit an interconnection application before NEM 3.0 takes effect.

NEM 2.0 customers can add battery storage later

Another important nugget of the NEM 3.0 decision is that NEM 2.0 can add battery storage in the future and retain their NEM 2.0 status.

There are two common scenarios where this comes into play:

  1. If you currently have a solar system in California, you won’t be transitioned into NEM 3.0 if you add battery storage after April 14, 2023
  2. If you are grandfathered into NEM 2.0 by submitting an interconnection application for a solar system without battery before April 14, 2023, adding battery storage later will not change your NEM 2.0 status.

SOLAREDGE WITH OPTIMIZATION VS ENPHASE

We primarily sell two inverter options for your solar project with a few exceptions based on your system requirements.  We carry both Enphase and SolarEdge products.  Both share an even piece of the solar market with Enphase having a slightly higher amount of the market share..  Both are successful publicly traded companies, and both would be great options for your solar project.  I tend to lean towards Enphase due to its simplicity and dependability; not to mention they come with a 25-year warranty out of the box. 

Enphase is based in the US in Northern California.  They manufacture batteries, inverters, among other solar related accessories.  Their inverters make the solar system more productive, more reliable, smart, and safe for customers to use.  Enphase microinverters are tiny individual inverters that work exclusively on a 1 microinverter per solar panel basis.  That means that even if one of them goes out the rest keep doing their thing.  Find more information about Enphase here:

https://enphase.com/installers/microinverters?_ga=2.40162283.853118848.1647538128-1504641512.1647538128

https://www.youtube.com/watch?v=oFDHqmDymrY


SolarEdge is headquartered in Israel and has locations throughout the world including one in Fremont California. SolarEdge prides themselves with offering their “intelligent inverter systems” using power optimizers to maximize power generation at the individual panel level. Although SolarEdge distinguishes themselves by not being a “string system” their system still requires a central inverter. Similarly to Enphase, if one optimizer goes out the rest keep doing their thing however, if the central inverter goes out, every single solar panel connected to that inverter stops generating power. SolarEdge inverters come with a standard 12 year warranty out of the box and they offer an extended 25 year warranty for an added cost. Find more information about SolarEdge here:

https://www.solaredge.com/us/solutions/residential