How Do Solar Panels Work?

It’s not all too complicated, actually. But because there are a couple different options for solar solutions based upon your needs, we’ll keep it as simple as possible to explain the conversion of solar energy into electricity. According to astronomers, sun also known as sol is the most powerful source of light available, which is where the term “solar” panels originated from. You may have also heard the term photovoltaic, which means “light-electricity” and is a method of harnessing solar energy and converting to electrical power. Using photovoltaic modules, it’s made possible to convert the light energy into direct current electricity. From there, the energy produced by the photovoltaic modules is sent to a piece of equipment called an inverter where it is converted into alternating current that is ready to use by all household appliances.

How is this Cost Efficient?

The bulk of our power supply today is produced with the aid of coal, oil and natural gas, which are finite resources. As the supply will continue to go down, prices will continue to go up. With solar panels, it’s easy enough. The sun is a free renewable resource. It will never stop producing energy as long as it’s around. It’s clean, and there’s definitely enough of it for everyone. Because solar panels have no need for outside sources to produce power, the only fee is the installation and perhaps any maintenance.

Installation of Solar Panels

The installation of solar power isn’t necessarily a new technology. Little do most people know, it’s been around since the 50’s originally made in the United States by Bell Laboratories. Over the past 60 years or so, popularity of solar power has been increasing, particularly in California.  There are different types of installation depending on your needs for solar solution.

• Residential Solar Solutions
• Commercial Solar Solutions
• Mobile Solar Solutions

A possible difference between residential solar panels and commercial solar panels is the size of the panel itself. Commercial solar panels can be a bit taller. Because the commercial panels will be bigger, they typically produce more power. Both residential and commercial panels can be mounted above roof tiles, shingles, and even on flat roof surfaces. Because solar panels are often sold per kilowatt, there really is no cost difference.

Mobile solar solutions are for those who like to travel and would like to use efficient and cost effective energy on the go.  Like all other solar solutions, the cost will greatly depend upon the size of the trailer and the use of the power system which is often custom made to the users’ needs such as, HVAC, internet usage, security system, lights and breaker panels, etc.

All in all, the installation of solar panels in San Diego will differentiate from one user to the next, and cost is greatly dependent on the solar solution that suits your needs. Be sure to call for a free quote and consultation or fill out the form below and find out more about the benefits of solar energy!

A three kilowatt solar electric system in San Diego, these days, can cost about $9,000 after tax, after rebate.

Over the life of the system, over 30 years, it will produce about 160,000 kWh, including the slow depreciation of output over time.

Do the math. If you get 160,000 kWh for $9,000; the cost per kWh is less than six cents!

How much are you currently paying for electric power? It’s a complicated answer.

In rough terms, each month:

The first 325 kWh are about $0.14 per kWh, this represents about $42 of billing.

The next 75 kWh are about $0.17 per kWh, this represents billing up to $53 per month.

The next 75 kWh are about $0.31 per kWh, this represents billing up to $75 per month.

After that, every kWh over 475 per month cost about $0.33 per kWh.

A solar power system can save you up to $.27 per kWh which is what makes solar really competitive.

Every month hundreds of thousands of San Diego households are buying large amounts of electric power at 33 cents per kWh when they could have a fixed price of 6 cents per kWh.

The best strategy these days is to keep paying SDG&E for the low priced first tiers of billing, and use solar to offset some of the nations’ most expensive electric power in the upper tiers.

These facts have resulted in California recently reaching one million kilowatts of rooftop solar capacity.

Most of this number has been commercial large flat roofs, but with over 100,000 being residential customers in California, and over 15,000 in San Diego alone, the public is voting for solar with their investment dollars.

Net metering makes this possible. SDG&E is currently trying to STOP NET METERING.

The public, businesses, governmental offices must band together to SAVE NET METERING.

Mayor Jerry Sanders was at the conference and he hailed the local policy and programs that are in place as the reason why San Diego is number one.  “San Diego didn’t become the state’s Number One solar city by happenstance — it was the result of local policies and programs that encourage investment in solar power,” he said. “It’s good for our environment, it’s good for our reputation as a city that embraces innovation, and it’s been great for our economy.”

This news comes during a week that has been great for solar.  Just last week the CPUC voted against SDG&E’s bid to implement a network use charge for solar customers.  The report by Environment California can be read in its entirety here.

The war is not over but this was a huge battle we have won.  The ruling basically said the proposed Network Use Charge was in violation of net metering law.  SDG&E will now go through the legislative process to try to change this law.  Rest assured, we will continue to battle and fight for this cause.  The process going forward is unknown at this point and we are not sure of the exact direction it is headed but are sure it will not simply go away because of this ruling.  A media statement released by SDG&E this morning suggests they will continue to pursue this matter.  That can be read here.  Please continue to stay active in this matter as we move through this process, your continued support is what makes this possible!

Being a solar customer you know and enjoy the many benefits of having a solar electricity producing system on your home.  The proposed fees have the ability to dramatically affect the economics of solar return on investment as they are asking for an additional monthly fee for all solar customers.  Should this proposal be approved it will directly affect you as a homeowner.  There are a series of hearings this week – and NOW is the time to take action.

As the smart grid develops, distributed generation matures and new technologies come to market, the utilities are rightfully concerned about their ability to preserve their revenue streams. This leads them to the extreme gaming strategies on display in its application,” said Executive Director of Utility Consumers’ Action Network, Michael Shames, in a recent response to SDG&E’s filing.

It is crucial that the local solar community take a stand on this issue as it has the ability to negatively affect the industry that we have come to know and love.  SDG&E is already being subsidized by more than 13,000 solar power producers in the region.  The new rate increase will create millions of new revenue dollars, without any increase in jobs or costs to the utility.  It is simply a mechanism to keep investors happy whilst stomping on the toes of their most important asset – you.

SDG&E currently collects a meter charge of $5 per month from solar power system owners for being tied to the utility grid, even if the customer produces all the energy they consume. The proposed rate hike not only hurts solar power generators’ pocketbooks, it effectively voids the existing net-metering agreement entered into by both parties. This additional charge was never specified in the original agreement.

You have the opportunity to have your voice heard in person. Next week there are eight hearings in San Diego County and we encourage you to please attend. The only public hearings that will have a Commissioner present will be on Monday, October 10, in Kearny Mesa at 2 p.m. and 7 p.m. All hearings will be on record.  You can be heard at the following hearings:

Monday, Oct. 10, in San Diego: Al Bahr Shriners Center, 5440 Kearny Mesa Road.

Tuesday, Oct. 11, in Chula Vista: Comfort Inn & Suites, 632 E. Main St.

Wednesday, Oct. 12, in El Cajon: El Cajon City Hall Council Chambers, 200 E. Main St.

Thursday, Oct. 13, in Oceanside: Civic Center Library, 330 N. Coast Highway.

If you are trying to determine whether solar is right for you, this factor will increase the piece of mind that solar as an investment already offers.  Our residential clients see a healthy return on investment and a short payback period.  This news brings even more value to the equation if you are not planning on owning your home for a long period of time.  Give us a call or email us if you would like to determine the value of solar on your home.

• Simple interest, unsecured financing, which means there are no hidden escalators or fees.  We can show you exactly what your payments will be for the life of the loan and guarantee they will not change, very much unlike your electric bill.
• Ease of Application.  It only takes a 10 – 15 minute phone call to get approved.  Our highly trained solar consultants will walk you through the entire process.  The is very little paperwork involved and everything is very easy to understand.
• Flexibility – there is a built in one time principal pay-down without any penalties.  This enables you to go solar today then what you get your 30% investment tax credit you can apply it towards your loan for lower monthly payments!
• No Payoff Penalty – should you decide you want to payoff the loan in full; you can do so at any time without any penalties.
• Long Term Option – The Loan is offered in increments of five, ten, fifteen or twenty year terms.  You get to choose your payment amount and interest rate by adjusting the term to your liking.
• No balloon payments at the end of the term.  Once it is paid off you own the system and enjoy the free electricity.
• You reap all the benefits of full ownership – the Investment Tax Credit, all available rebates, and accelerated depreciation (if available).

We are very excited to offer option as a part of our expansive financing portfolio.  Our goal is for everyone who owns a home to have the ability to go solar and enjoy the many benefits.  Now with the loan we expand that ability to nearly anyone!  Hows that for moving forward in a tough economy?