Mid-Atlantic RegionConsumer's Guide toBuying a SolarElectric System

Cover photo: This house generates its own electricity from a 4.25-kW PV systembeautifully integrated into the rooftop. A net-metering relationship with theirlocal utility makes on-site electrical storage unnecessary for these homeowners. (Solar Design Associates, Inc./PIX 04470)

Sponsored by the U.S. Department of Energy Philadelphia Regional Office

Prepared by the Maryland Energy Administration

April 2001 BR-520-30164

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Mid-Atlantic RegionConsumer's Guide toBuying a Solar Electric System

Includes information for:Delaware PennsylvaniaDistrict of Columbia VirginiaMaryland West VirginiaNew Jersey

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Are you thinking about buying a PV system for your home or business? If so, thisbooklet will provide basic information that you need to know. Consumers in theMid-Atlantic region are showing increased interest in solar electric systems fortheir homes and businesses. Photovoltaic—or PV—systems are reliable, pollutionfree, and use a renewable source of energy—the sun.

Aside from the excellent technological advances and cost reductions in PV tech-nology, several state and federal PV programs and incentives are available to customers that are making PV systems more economical than ever before. Forexample, several state government offices offer financial assistance in the form of grants and tax credits to prospective PV customers.

The availability of net metering across the region is also providing an environ-ment more conducive to the provision of cost-effective PV and renewable energydevelopment. Net metering means that when your PV system generates more powerthan you need, the meter runs backwards, resulting in an even swap for the gridpower that you use at other times. In essence, you receive full retail value for all the power that your PV system generates.

This booklet is designed to guide you through the process of buying a solar elec-tric system. A word of caution: This is not a technical guide for designing or install-ing your system—for that information, we recommend you consult an experiencedPV system designer or system supplier (“PV provider”) who will have detailedtechnical specifications and other necessary information. A PV system can be asubstantial investment, and, as with any investment, careful planning will helpensure that you make the right decisions.

These materials also provide information on PV programs, incentives, and policiesfor the states across the region. As the guide evolves, updated and more detailedinformation on state PV programs and policies will be provided.

IntroductionContents

Background Page❑ What is a solar electric, or photovoltaic, system? . . . . . . . . . . . . . . . . . . .2

Investing in a PV system❑ Why should I buy a PV system? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4❑ Is my home or business a good place for a solar system? . . . . . . . . . . . . .4❑ How big should my PV system be, and what features should it have? . .5❑ How much will my PV system save me? . . . . . . . . . . . . . . . . . . . . . . . . . .6❑ How much does a PV system cost? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6❑ Are incentives available to help reduce the cost? . . . . . . . . . . . . . . . . . . .7❑ How can I finance the cost of my PV system? . . . . . . . . . . . . . . . . . . . . . .7

Selecting a PV provider❑ Who sells and installs PV systems? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8❑ How do I choose among PV providers? . . . . . . . . . . . . . . . . . . . . . . . . . . .8❑ How do I choose among competing bids? . . . . . . . . . . . . . . . . . . . . . . . . .9❑ Is the lowest price the “best deal”? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

Before connecting a PV system to the grid❑ What about permits? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11❑ What about insurance? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11❑ How does the system interface with my existing utility connection?

What are my options? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11❑ What about net metering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12❑ What about utility and inspection sign-off? . . . . . . . . . . . . . . . . . . . . . ..12❑ What about warranties? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

AppendixMid-Atlantic Regional PV Programs, Incentives, and Contacts

❑ Virginia Alliance for Solar Electricity (VASE) Program . . . . . . . . . . . .15State PV Programs, Incentives, and Contacts in the Mid-Atlantic Region

❑ Delaware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16❑ District of Columbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16❑ Maryland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17❑ New Jersey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18❑ Pennsylvania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19❑ Virginia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20❑ West Virginia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21

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systems connected to the utility grid,because additional electricity you needis automatically delivered to you byyour utility.

Second, PV-generated electricity canbe more expensive than conventionalutility-supplied electricity. Improvedmanufacturing techniques have reducedthe cost to less than one percent of whatit was in the 1970s, but the cost (amor-tized over the life of the system) can be2–3 times higher than the kilowatt-hourrate charged by the utilities in the Mid-Atlantic region. Net metering, whichallows residents to spin their electricmeters backwards and offset retail electricity costs, can help make PV

more affordable, and various incentivescan make it cost-effective

Finally, unlike electricity purchasedmonth by month from a utility, PVpower comes with a high initial invest-ment and no monthly charge thereafter.This means that buying a PV system is like paying years of electric bills upfront. You’ll probably appreciate thereduction in your monthly electric bills,but the initial expense may be signifi-cant. By financing your PV system, youcan spread the cost over many years,and state “buy down” grants and otherfinancial incentives can help make thecost more manageable.

The 800-watt solar system being installed on this rooftop will provide about one quarter of the electricity needed by a typical household in the Mid-Atlanticregion. If the home is built very efficiently with good exposure to sunlight, thesystem could supply up to half of the home's energy needs.(David Parsons, NREL/PIX05579)

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What is a solar electric, or photovoltaic,system?

Photovoltaic (PV) technology convertssunlight directly into electricity. It worksany time the sun is shining, but moreelectricity will be produced on sunnydays, when the light is more intense and is striking the PV modules directly(when the rays of sunlight are perpen-dicular to the PV modules). Unlike solarsystems for heating water, which youmight be more familiar with, PV tech-nology does not use the sun’s heat tomake electricity. Instead, PV produceselectricity directly from the electronsfreed by the interaction of sunlight withsemiconductor materials in the PV cells.

But you don’t need to delve intodetailed physics of how PV works tounderstand its appeal: investing in PVallows you to produce your own elec-tricity with no noise, no air pollution,and no moving parts while using a clean,renewable resource. A PV system willnever run out of fuel, and it won’tincrease our oil imports from overseas.In fact, PV may help to reduce the tradedeficit, because many PV system com-

ponents are manufactured in the UnitedStates. Because of these unique charac-teristics, PV technology has been called“one of the ultimate energy sources forthe 21st century.”

The basic building block of PV tech-nology is the solar “cell.” PV cells arewired together to produce a PV “mod-ule,” the smallest component sold com-mercially, and these modules range inpower output from about 10 watts to300 watts. A PV system tied to the util-ity grid consists of one or more PVmodules connected to an inverter thatchanges the system’s direct-current(DC) electricity to alternating current(AC), which is compatible with the util-ity grid and able to power devices suchas lights, appliances, computers, andtelevisions. Batteries may be added tothe system to provide back-up power in case your utility experiences a poweroutage.

Some things you should know beforepurchasing a PV system

First, it produces power intermittentlybecause it works only when the sun isshining. This is not a problem for PV

Background

Photovoltaic Modules

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employed. The table below displaystypical roof-area requirements for arange of PV system sizes and moduleefficiencies. Although the efficiency (or percent of sunlight converted toelectricity) varies with the differenttypes of PV modules available today,higher-efficiency modules generallycost more. Therefore, to meet yourlong-term energy savings goal, both thecost and the efficiency must be consid-ered when purchasing a PV system.

What kind of roof do you have, andwhat is its condition?

Some roof types are simpler andcheaper to work with, but a PV systemcan be installed on any type. Typically,composition shingles are easiest towork with, and slate is the most diffi-cult. In any case, an experienced solarinstaller will know how to work on allroof types and can use roofing tech-niques that eliminate any possibility ofleaks. Ask your PV provider how thePV system affects your roof warranty.

If your roof is older and needs to bereplaced in the very near future, youmay want to replace it at the time the PV system is installed to avoid the costof removing and reinstalling your PV

system. Panels often can be integratedinto the roof itself, and some modulesare actually designed as three-tab shin-gles or raised-seam metal roof sections.One benefit of these systems is theirability to offset the cost of roof materials.

How big should my PV system be, andwhat features should it have?

As a starting point, you might con-sider how much of your present electric-ity needs you would like to meet withyour PV system. For example, supposethat you would like to meet 50% of yourelectricity needs with your PV system.You could work with your PV providerto examine past electric bills and deter-mine the size of the PV system neededto achieve that goal.

You can contact your utility and requestthe total electricity usage, measured inkilowatt-hours, for your household over the last 12 months (or consult your electric bills if you save them). Ask your PV provider how much yournew PV system will produce on anannual basis (also measured in kilowatt-hours) and compare that number to yourannual electricity demand to get an ideaof how much you will save.

100 250 500 1,000 2,000 4,000 10,000 100,000

4 30 75 150 300 600 1,200 3,000 30,000

8 15 38 75 150 300 600 1,500 15,000

12 10 25 50 100 200 400 1,000 10,000

16 8 20 40 80 160 320 800 8,000

PV capacity rating (watts)PV moduleefficiency*

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Roof Area Needed in Square Feet (shown in Bold Type)

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* Although the efficiency (percent of sunlight converted to electricity) varies with the different types of PV modules available today, higher-efficiency modules typically cost more. So, a less-efficient system is not necessarily less cost-effective.

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Why should I buy a PV system?People decide to buy PV systems for

a variety of reasons. Some want to helppreserve the earth’s finite fossil-fuelresources and reduce air pollution.Others believe that it makes more senseto spend their money on an energy-pro-ducing improvement to their propertythan to send their money to a utility.Some people like the security of reduc-ing the amount of electricity they buyfrom their utility, because it makes themless vulnerable to future increases in theprice of electricity. Finally, some peoplejust don’t like paying utility bills andappreciate the independence that a PVsystem provides.

Whatever your reason, solar energy iswidely thought to be the energy sourceof choice for the future, and electricityconsumers in the Mid-Atlantic regionhave a unique opportunity to take advan-tage of a state and federally-sponsoredprograms to help make it their energychoice for today as well as tomorrow.

Is my home or business a good placefor a solar system?Can you orient your system for goodperformance?

A well-designed PV system needsclear and unobstructed access to thesun’s rays for most or all of the day,throughout the year. You can make aninitial assessment yourself, and if thelocation looks promising, your PVprovider has the tools to trace the sun’spath at your location and determinewhether your home or business canmake use of a PV system.

The orientation of your PV system(the compass direction that your system

faces) will affect performance. In theMid-Atlantic region, the sun is alwaysin the southern half of the sky and ishigher in the summer and lower in thewinter. Usually, the best location for aPV system is a south-facing roof, butroofs that face east or west may also beacceptable. Flat roofs also work well forsolar systems because the PV modulescan be mounted flat on the roof facingthe sky or mounted on frames tiltedtoward the south at the optimal angle. If a rooftop can’t be used, your solar mod-ules can also be placed on the ground toprovide maximum performance.

Is your site free from shading by trees,nearby buildings, or other obstructions?

To make the best use of your PV sys-tem, the PV modules must have a clearview of the sun for most or all of theday—unobstructed by trees, roof gables,chimneys, buildings, and other featuresof your home and the surrounding land-scape. It is important to note that eventhough the area where a system ismounted may be unshaded during onepart of the day, it may be shaded duringanother. In such a case, this shadingmay substantially reduce the amount of electricity that your system will produce.

Do you have enough area on your roofor property?

The amount of space needed by a PVsystem is based on the physical size ofthe system you purchase. Most residen-tial systems require as little as 50 squarefeet (for a small starter system) up to as much as 1,000 square feet. A typical 1-kilowatt (kW) system would occupyfrom 80 to 300 square feet, dependingon the type and efficiency of modules

Investing in a PV system

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just rough estimates, and your costs willdepend on your system’s configuration,your equipment options, and other fac-tors. Your local PV providers can pro-vide you with estimates or bids.

Are incentives available to help reducethe cost?

Numerous state programs and incen-tives available help to “buy down” thecost of a residential PV system or other-wise make it easier to finance. Theseincentives may include: tax credits,state grants, and low-interest financingpackages. Please see the final section of this pamphlet (“State PV programs,incentives, and contacts in the Mid-Atlantic Region”) for the most up-to-date information on incentives andfinancing options for PV systems inyour state.

If your home is used for a business,you may be entitled to a 10% federal tax credit and accelerated depreciationon the PV system. These tax benefitscan substantially reduce the effectivecost of your PV system and should bethoroughly investigated.

How can I finance the cost of my PVsystem?

There is nothing magical about financ-ing the cost of purchasing and installingyour PV system. Although there aresome special programs available forfinancing solar and other renewable-energy investments, most of the optionswill be familiar to you.

One of the best ways to finance PVsystems for homes is through a mort-gage loan. Mortgage financing optionsinclude your primary mortgage, a sec-ond mortgage such as a U.S. Depart-ment of Housing and Urban Develop-ment (HUD) Title 1 loan, or a home-equity loan that is secured by your property. There are two advantages to mortgage financing. First, mortgagefinancing usually provides longer termsand lower interest rates than other loanssuch as conventional bank loans.Second, the interest paid on a mortgageloan is generally deductible on yourfederal taxes (subject to certain condi-tions). If you buy the PV system at thesame time that you build, buy, or refi-nance the house on which the PV sys-tem will be installed, adding the cost ofthe PV system to your mortgage loan islikely to be relatively simple and mayavoid additional loan application formsor fees.

If mortgage financing is not available,look for other sources of financing, suchas conventional bank loans. Rememberto look for the best possible combina-tion of low rate and long term so thatyou can amortize your PV system asinexpensively as possible. Because your PV system is a long-term invest-ment, the terms and conditions of yourPV financing are likely to be the mostimportant factor in determining theeffective price of your PV-generatedpower.

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As you size your system, you shouldconsider the “economies of scale” thatcan decrease the cost per kilowatt-houras you increase the size of the system.For example, many inverters are sizedfor systems up to 5 kW, and if your PVarray is smaller (say 3 kW), you maystill end up buying the same inverter.Labor costs for a small system may benearly as much as those for a large sys-tem. Therefore, it’s worth rememberingthat your PV provider is likely to offeryou a better price to install a 2-kW sys-tem all at once, than to install a 1-kWsystem this year and another next year—multiple orders and multiple site visitsare more expensive.

Also, it is generally not economical totry to produce more power than youneed. This is because in some states theutility is either not required to compen-sate the consumer for excess generationabove the net metering period or is onlyrequired to do so at a low buyback rate.Typically, this rate is the utility’s“avoided cost,” which may be a merefraction, say 20%, of the retail rate pro-vided under net metering.

How much will my PV system save me?The value of your PV system’s elec-

tricity will depend on how much youpay your utility for electricity and howmuch your utility will pay you for anyexcess that you generate. Because manyMid-Atlantic utilities are required tooffer net metering (and provide fullretail credit for your generated, or netexcess, electricity), your calculation isfairly easy because you and your utilitywill each pay the same price for eachother’s electricity.

A 1-kW system should meet about12%-18% of the typical residential cus-tomer needs. Given the amount of solar

resource available in the Mid-Atlanticregion, it would produce about 1600 kWhannually under ideal conditions (i.e.,a south-facing installation and properslope of the roof). If you multiply thisannual power output by your averageelectricity rate (8 cents per kWh or so)and then divide by 12, you come up witha monthly energy savings of about $11 per month. Depending on the grantsand incentives involved, you shouldexpect to see a system payback of lessthan 20 years—which is when the valueof energy produced equals the initialinvestment of the system. This goal isachievable, given the state and localprograms and incentives availableacross the region.

How much does a PV system cost?There is no single answer, but keep in

mind that the program offered greatlyreduces the cost. Your system’s pricewill depend on a number of factors,including whether the home is underconstruction or whether the PV is inte-grated into the roof or mounted on topof an existing roof.

The size of your system may be themost significant factor in any equationmeasuring your costs against your bene-fits. Small, single PV-panel systemswith built-in inverters that produceabout 75 watts may cost about $900installed, or $12 per watt. These smallsystems will offset only a small fractionof your electricity bill. A 1-kilowatt sys-tem that will offset a large percentage ofthe electrical needs of a very energy-efficient home may cost $6,000 to$10,000 installed, or $6 to $10 per watt.At the high end, a 5-kW system that willcompletely offset the energy needs ofmany conventional homes may cost$30,000 to $40,000 installed, or $6 to$8 per watt. These prices, of course, are

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or a subcontractor has an electrical con-tractor’s license. You must contact theappropriate state agency to verify that agiven contractor is licensed to performthe installation. Local building depart-ments also may require that the installerhave a general contractor’s license.Consumers should call the city andcounty in which they live for additionalinformation on licensing. Some stateseven require that properly licensedinstallers must demonstrate that theypossess special knowledge aboutinstalling PV systems. You shouldcheck with your state energy contact.See the list of state energy contactslisted in the final section of this guide.

Does the company have any pending oractive judgements or liens against it?

As with any project that requires acontractor, due diligence is recom-mended. The Consumer ProtectionDivision of your state’s AttorneyGeneral’s Office may be able to tell you about any judgments or complaintsagainst a state-licensed electrician. Youshould call the city and county in whichyou live for additional information onhow to check up on contractors. TheBetter Business Bureau is anothersource of information on contractors.

How do I choose among competing bids?If you have decided to get more than

one bid for the installation of your PVsystem (and it’s generally a good idea todo so), you should take steps to ensurethat all of the bids you receive are madeon the same basis. For example, com-paring a bid for a system mounted onthe ground against another bid for arooftop system is like comparing applesto oranges. Similarly, different types ofPV modules generate more electricityper square foot than others. Bids should

clearly state the maximum generatingcapacity of the system (measured inwatts or kilowatts). If possible, have thebids specify the system capacity in “ACwatts,” or specify the output of the sys-tem at the inverter.

You may want to obtain some esti-mate of the amount of energy that thesystem will produce on an annual basis(measured in kilowatt-hours). Becausethe amount of energy depends on theamount of sunlight—which varies bylocation, season, and year to year—it is unrealistic to expect a specific figure. A range of ±20% is more realistic. Bidsalso should include the total cost of get-ting the PV system up and running,including hardware, installation, con-nection to the grid, permitting, sales tax, and warranty. Your warranty is avery important factor for evaluatingbids. The installer may offer longer warranties. Also ask yourself, Will thiscompany stand behind the full-systemwarranty for the next two years?

Is the lowest price the “best deal”?It might not be. Often, you get what

you pay for. Remember that a PV com-pany is a business just like any other,with overhead and operating expensesthat must be covered. It’s always possi-ble that a low price could be a sign ofinexperience. Companies that plan tostay in business must charge enough for their products and services to covertheir costs, plus a fair profit margin.Therefore, price should not be your only consideration.

Remember, if your state has an incen-tive program for solar energy, it may bethrough a pre-selected group of contrac-tors. If so, you can only get the incentiveby using one of those contractors.Furthermore, most state programs

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Who sells and installs PV systems?Consumers will need to select a ven-

dor to install their PV system. We rec-ommend that you contact the localchapter of the Solar Energy IndustriesAssociation to get help in selecting acontractor/installer (i.e., New YorkSEIA, Mid-Atlantic SEIA, andMaryland-D.C.-Virginia SEIA).

In some states with PV grant programs,residents may select any PV installerthey wish. In others, the state govern-ment has already selected a qualifiedcontractor through a competitive bidprocess. You should check with thelocal Regional Office (RO) of theDepartment of Energy or your stateenergy office contact listed in the finalsection of this report. The PhiladelphiaRO serves the Mid-Atlantic region; theBoston RO serves the New York regionand Northeast.

In some locations, finding a PV pro-vider can be as simple as and lookingunder “Solar Energy Equipment andSystems—Dealers” in the telephonedirectory. Be aware, however, that manyof those listings are for solar water-heating companies, and these compa-nies may not be experienced in PVsystem design or installation. Similarly,many electrical contractors, althoughproficient in typical electrical contract-ing work, may not have expertise in PVor with residential roof-mounting tech-niques.

How do I choose among PV providers?Compile a list of prospective PV pro-

viders. You might first consider thoseclosest to you, because the contractor’stravel costs might add to your system

price. Next, contact these providers andfind out what products and services theyoffer. The following questions may giveyou a good sense of their capabilities:

Has the company installed grid-connected PV systems? If not, has itinstalled grid-independent PV systems?

Experience installing grid-connectedsystems is valuable because some ele-ments of the installation—particularlyinterconnection with the local utility—are unique to these systems. Becausegrid-connected systems are relativelyuncommon, most contractors with PVexperience have worked only on sys-tems such as those that power remotecabins far from the nearest utility line.Therefore, they have experience with all aspects of PV system installationexcept the connection with the utilitygrid. Although grid-connection work is different from off-grid work, a com-petent company with PV experienceshould not be eliminated just because it has not installed grid-connected PVsystems in the past. In fact, experiencewith off-grid systems is valuablebecause grid-independent systems are more technically complicated than grid-tied systems.

How many years of experience does thecompany have installing PV systems?

This issue speaks for itself:A companyor contractor that has been in business along time has demonstrated an ability towork with customers and to competeeffectively with other firms.

Is the company properly licensed?

PV systems should be installed by anappropriately licensed contractor. Thisusually means that either the installer

Selecting a PV provider

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What about permits?If you live in a community in which a

homeowners association requiresapproval for a solar system, you or yourPV provider may need to submit yourplans. Gain approval from your home-owners association before you begininstalling your PV system.

Most likely, you will need to obtainpermits from your city or county build-ing department. You will probably needa building permit, an electrical permit,or both before installing a PV system.Typically, your PV provider will takecare of this, rolling the price of the per-mits into the overall system price.However, in some cases, your PVprovider may not know how much timeor money will be involved in pulling apermit. If so, this task may be priced ona time-and-materials basis, particularlyif additional drawings or calculationsmust be provided to the permittingagency. In any case, make sure the per-mitting costs and responsibilities areaddressed at the start with your PVprovider.

Code requirements for PV systemsvary somewhat from one jurisdiction tothe next, but most requirements arebased on the National Electrical Code(NEC). The NEC has a special section,Article 690, that carefully spells outrequirements for designing andinstalling safe, reliable, code-compliantPV systems. Because most localrequirements are based on the NEC,your building inspector is likely to relyon Article 690 for guidance in determin-ing whether your PV system has beenproperly designed and installed. If youare among the first people in your com-

munity to install a grid-connected PVsystem, your local building departmentmay not have approved one of these sys-tems. If this is the case, you and yourPV provider can speed the process byworking closely and cooperatively withyour local building officials to help edu-cate them about the technology and itscharacteristics.

What about insurance?If you are buying a PV system for your

home, your standard homeowner’sinsurance policy is usually adequate to meet the utility’s requirements. How-ever, you may wish to contact yourinsurance carrier or one of the groupslisted in the final section of this booklet.In some states, the electric utility mayrequire additional insurance.

How does the PV system interfacewith my existing utility connection?What are my options?

There are basically three ways thatPV systems can be wired for residentialhomes: grid-connected, grid-connectedwith battery storage, and off-grid.

Grid-connected implies that the PVsystem interfaces directly with yourcurrent utility connection. This set-upallows the you to put excess generation(when PV generation exceeds currentconsumption) back on the grid. In timeswhen consumption exceeds generationby the PV system, you simply obtain theadditional power from the local utility,as always. Grid-connected systems areincreasingly popular because they donot require battery storage and are moreefficient in converting solar energy toelectricity. Provided the utility allowsnet metering, grid-connected systems

Before connecting a PV system to the grid

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require the prospective PV customer tofirst contact the state to apply to thegrant program and verify that incentivesare still available. You should not expect

to receive incentives or grants after youhave installed a system on your own. Sobe sure to contact the state before pro-ceeding with your solar project.

Rick Brook, second from left, and Lyle Rawling, right, President of FIRST, a solar inte-grator, carry solar photovoltaic panels to the roof of Brook's home in New Jersey.When the first summer storm knocks out the grid in 1998, "we'll still have power," says Brook. "I think that will be a good time for a party." (Bob Gibson, UPVG/PIX08095)

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also tend to be the most cost effective.Net metering means that you get fullcredit for the excess electricity fromyour PV system back to the utility forthe same price that you paid for electric-ity. In essence, your electric meter willrun backwards when you are not usingall the power that your PV system gen-erates. This topic will be addressed inmore detail in the following section onnet metering. Several Mid-Atlanticstates offer net metering, although theterms and conditions vary in each case.

A second option is grid-connectedwith battery storage. The included bat-tery system provides back-up power incase of a utility power outage. Batteriesadd value to your system, but at anincreased price.

A third option is to operate the PVsystem independent of the utility grid,in cases where the home has no electricservice to begin with, or to providepower to outbuildings on a residentialproperty, for example. In cases where a house is off the grid and there are noutility lines available, PV often becomesthe most economical choice for both theconsumer and the utility. The cost ofrunning a special line is usually morethan the cost of installing a PV system.

What about net metering?Net metering has been generally

accepted as one of the best, unobtrusiveways for states to encourage consumersto purchase renewable energy systems.Basically, net metering allows cus-tomers to only pay for their “net” elec-tricity, which is the amount of powerconsumed from the utility minus thepower generated at the customer’s homevia the PV system. Excess generation(power not consumed during the billingperiod) may be met with a reimburse-

ment at the utility’s avoided cost (usu-ally a much lower rate) or not at all.

Once the utility has been contactedand has cleared your PV system for netmetering, you should check that you arereceiving credit. On a bright sunny day,when few or no lights or appliances inyour house are running, examine yourelectric meter. You should observe itspinning in reverse. You should note the meter reading, then check again in a few hours of bright sunshine and see if the meter reading is lower. In mostcircumstances, the “old-fashioned”meter with mechanical dials works fine. However, some newer electronicmeters have trouble registering electric-ity flow in reverse. Your PV installershould be able to let you know if youwill have a problem.

What about utility and inspection sign-off?

After your new PV system is installed,it may need to be inspected and “signedoff” by the local permitting agency(usually a building or electrical inspec-tor) and perhaps by the electric utility.Inspectors may require your PV pro-vider to make corrections, but don’t bealarmed—this is fairly common in theconstruction business.

What about warranties?Warranties are key to ensuring that

your PV system will be repaired ifsomething should malfunction duringthe warranty period. PV systems shouldcarry a full (“not limited”) 2-year war-ranty, in addition to any manufacturer’swarranties on specific components. This warranty should cover all parts and labor, including the cost of remov-ing any defective component, shippingit to the manufacturer, and reinstalling

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the component after it is repaired orreplaced.

Be sure you know who is responsiblefor honoring the various warrantiesassociated with your system—theinstaller, the dealer, or the manufac-turer. The vendor should disclose thewarranty responsibility of each party.Know the financial arrangements, suchas contractor's bonds, that assure the

warranty will be honored. Remember, awarranty does not guarantee that thecompany will remain in business. Youmust clearly understand who you shouldcontact if there is a problem. To avoidany later misunderstandings, be sure toread the warranty carefully and reviewthe terms and conditions with yourretailer.

A 1.8-kW GPU Solar system being installed inMarch 1998 on the home of Rick Brook,owner of Jersey Shore Solar in Lakewood, New Jersey. (Bob Gibson, UPVG/PIX08096)

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AppendixRegional and State PV Programs,

Incentives, and Contacts

The PV roof shingles on the inner portion of this institute's lower roof were laid out andnailed down using the same methods used to lay conventional shingles. This rooftoparray of PV roof shingles was developed by United Solar Systems and EnergyConversion Devices under the DOE PV:BONUS program. (John Haigwood/PIX04577)

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Mid-Atlantic Regional PV Programs, Incentives, andContactsVirginia Alliance for Solar Electricity(VASE)

The Virginia Alliance for Solar Elec-tricity (VASE) is a partnership that beganbetween BP Solar, Virginia Power, Vir-ginia's Center for Innovative Technol-ogy (CIT), the Virginia Department ofMines, Minerals, and Energy (DMME),and DOE to accelerate the commercial-ization of a new generation of PV mod-ules being manufactured in Virginia byBP Solar. The VASE partnership hasexpanded from its original partners andnow includes other states in the Mid-Atlantic region, including New Jersey,Pennsylvania, Maryland, and NorthCarolina.

The VASE program was awarded cost-share funding from the DOE under theCommercialization Ventures Program

through a cooperative agreement madeto DMME. This cost-share funding isbeing used to “buy down” the cost ofBP Solar's new tandem-junction amor-phous silicon thin-film photovoltaicmodules manufactured at their Virginiaplant. The VASE partners are identify-ing eligible building owners and devel-opers interested in installing this PVtechnology. For more information about the VASE partnership, VASE-funded projects, and technology appli-cations, please visit the VASE web site(www.vase.org). The VASE contact atBP Solar is Clive Sinnott, 410-981-0270.

For more information about BP Solar,their products, and manufacturing facil-ities, please visit the BP Solar Web site(www.bpsolar.com).

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cling process and for use primarily forthe purpose of abating or preventingpollution of the atmosphere or waters.”It addresses the following technologies:passive-solar space heat, active-solarwater heating, active-solar space heat-ing, solar-thermal electricity, and pho-tovoltaics. To determine if your localityoffers this property tax exemption, con-tact your local commissioner of revenueand cite the following Section from theCode of Virginia, §58.1-3661. The citiesof Alexandria, Charlottesville, FallsChurch, Hampton, Lynchburg, andRoanoke; the Town of Richlands; andthe counties of Albemarle, Chester-field, Fairfax, Hanover, Isle of Wight,King and Queen, Loudoun, PrinceWilliam, Pulaski, Spotsylvania, War-ren, and Wise all offer the exemption.

Net Metering

In March, 1999, Virginia’s state legis-lature enacted Virginia Assembly billS1269, which requires net metering for small solar, wind, and hydroelectricsystems. The law requires all of thestate’s utilities to offer net metering toresidential systems of 10 kW or less and non-residential systems of 25 kWor less. The law limits the amount ofnet-metered generation to 0.1% of theprevious year’s peak electricity demand.Customers can apply the credit for elec-tricity generated from their system tothe following month; however, at theend of the year, any excess generation isgranted to the utility. For more informa-tion on net metering, contact your localutility provider, visit the Web site atwww.state.va.us/scc/division/eaf/compete.htm, or contact:

Tommy OliverVirginia State Corporation CommissionP.O. Box 1197Richmond, VA 23218 Phone: 804-371-9358 E-mail: toliver@scc.state.va.us

State Contacts and Other Resources

Maryland-DC-Virginia Solar EnergyIndustries Association (MDV-SEIA)Ann Elsen, Executive Director1606 Lansdowne WaySilver Spring, MD 20910Phone: 301-920-0144Fax: 301-920-0145E-mail: info@mdv-seia.orgWeb site: www.mdv-seia.org

This organization is the regional tradeorganization of the photovoltaics andsolar-thermal manufacturers, distribu-tors, and component suppliers. Theirmembership also includes companiesthat design, sell, install, and maintainsolar energy equipment for residential,commercial, and institutional cus-tomers throughout the region.

West VirginiaState Contact

Bill WillisWest Virginia Development OfficeBuilding 6, Room 645State Capitol ComplexCharleston, West Virginia 25305Phone: 304-558-0350Fax: 304-558-0362E-mail: bwillis@wvdo.org

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