July 2010

Purchasing and installing solar power on your home or business can be overwhelming. You want to do your part for the environment, but don’t know where to begin, right? Here are a few ideas and resources to get you started.

> Research and interview all the potential installers in your area, no matter how small an outfit.

> Ask about their business:

* Are you licensed, bonded and insured? Find out if they have NABCEP certification (North American Board of Certified Energy Practitioners). If they have been in business for a long time, they may think this step is unnecessary, so check references, and find out if they are licensed in your state.

* Do you have any judgments against you? Call the Better Business Bureau or the Consumer Affairs Office to check.

* How long have you been installing solar? A company has more experience the longer they have been in operation.

* How many installations are off-grid? Grid tied? An experienced company will have done both. Off-grid was more common until net-metering became popular, so good installers need to know both. (Net metering is when you connect your solar PV system to your local utility, and they pay you for electricity you produce but do not use.)

> Ask about their services and obligations:

* Do you give free estimates? You want to hear Yes.

* Do you conduct a site survey? Do I need to be present? They should say yes on the site survey, and I recommend being there, no matter what they say. It’s a great time to ask questions.

* Does your company design the system and purchase materials? Again, you want a Yes.

* Do you know the building code and inspection requirements, and do you get the permits? They should say Yes, and you should ask what permits there are.

* Are there any financial incentives, and do you do the necessary paperwork? Do you offer financing? Each outfit should know the current state and federal incentives offered. You can check on them here. If they offer financing, ask about terms – how much down payment, how long to pay it back and interest rates. Ask for the total cost after it’s paid off.

* Do you outsource your work? They should say NO! You want the same outfit who does your site assessment to do your installation.

* Will you write up a contract that includes materials, start and finish dates of the job, and price and payment schedule? A contract should include all of these things.

> Do a cost analysis. Your PV system needs to be sized according to your needs, and an installer will have software to determine this. S/he will also be able to figure out the return on your investment (ROI) and how long it will take to be paid off with energy savings.

> Ask about and research the materials each installer uses. Components vary in quality and power output. You want the best and most powerful!

> Ask about warranties. Expect a 10 year warranty on an inverter and 20-25 years on the solar panels. The company should also give you at least a 5 year warranty on their service, as well as for roof and electrical damage.

> Compare the bids you get from the various installers, and ask lots of questions. The bids must be on the same size and style of installation. The size of the system will be shown in watts (W), and the cost will be shown in dollars per watt ($/W). Be sure that all bids are expressed in either AC PTS (Alternating Current, Performance Test) or DC STC (Direct Current, Standard Test Conditions. Again, each bid must be for identical situations to be calculated accurately and so you can compare accurately.

> Check references! Ask for the names and numbers of past customers. When you contact these folks, find out if you can drive by their home to see their system. Maybe they will let you come in so they can talk about it! Ask about the customer service, if the company has lived up to their service pledge and their expectations, if there have been maintenance problems, and if the cost analysis was accurate.

> Do not take the cheapest bid just to cut corners. It is better to get a smaller system than buy a larger, cheaper and probably lower quality system. Quality over quantity. You can add to it later. If you are confident, though, that the cheapest installer is the best with the best materials, good customer service and great references, then get that system. If you are net-metering, then you will want the biggest system to cover all your needs and then some.

> Most important – hire a professional! Prompt customer service, transparency, documentation and patience are good signs of a good company. Move on to the next one if you don’t feel they are making you the most important part of this transaction.

(This post was written with the help of Tor Valenza, aka @SolarFred. Visit him at Solar Power Rocks.)

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(This is a guest post by David Quilty, owner and publisher of The Good Human, a comprehensive site on sustainable living and progressive politics. Follow him on Twitter.)

Looking to increase the energy-efficiency of your home this year? Well, you are in luck – if you purchase an energy-efficient product or renewable energy system for your home, you will probably be be eligible for a decent-sized Federal tax credit. Not bad, considering that whatever you do is also going to save you money on your utility bills! While most people would think that if they just buy Energy Star rated products then they would be eligible for the credits, not all Energy Star items can qualify, so be sure to do your homework before running out and buying the first thing you come across. In addition to Federal tax credits, there are also state-level incentives to going green at home, which will be discussed after the Fed ones. There are different dollar amounts, percentages, and dates for different products and jobs, so be sure to check out the details for what you plan to do very carefully. Let’s take a look at what tax credits are available, dependent which efficiency upgrades you make at your home.

Until December 31, 2010, you can get a tax credit of up to 30% of cost up to $1,500 on the following items.

The work must be done on an existing home and this home must be your principal residence. Rentals and new construction do not qualify.

> Biomass stoves – Biomass includes wood, wood waste and residues (including wood pellets), plants , grasses, residues, and fibers.
> Advanced Main Air Circulating Fan – A fan which blows the air that your furnace heats up through the duct system.
> Air Source Heat Pumps – During the heating season, heat pumps move heat from the cool outdoors into your warm house; during the cooling season, heat pumps move heat from your cool house into the warm outdoors.
> Central Air Conditioning – I think we all know what these are!
> Gas, Propane, or Oil Hot Water Boiler – Heating units that use water circulated throughout the home in a system of baseboard heating units, radiators, and/or in-floor radiant tubing.
> Natural Gas or Propane Furnace – Uses the combustion of fuel and air to create heat.
> Insulation – Just what you think it is. The credit applies to weather stripping, spray foam, and house wrap.
> New Roofs – Metal roofs and asphalt roofs that reflect some of the sun’s rays.
> Gas, Oil, Propane Water Heater – Heats up the water for your home.
> Electric Heat Pump Water Heater – Heats up the water for your home.
> Storm Windows & Doors – These can enhance efficiency by creating another barrier from the weather outside.

Until December 31, 2016, you can get a tax credit of up to 30% of cost with no upper limit on the following items.

Existing homes & new construction qualify, as do both principal residences and second homes. Rentals do not qualify.

> Geothermal Heat Pumps – Similar to ordinary heat pumps but they use the ground instead of outside air to provide heating, air conditioning and, in most cases, hot water. VERY efficient.
> Residential Wind Turbines – Yep, turning the wind into energy to power your home.
> Solar Energy Systems – This includes both solar panels and/or solar water heaters.

Until December 31, 2016, you can get a tax credit of up to 30% of the cost, up to $500 per .5 kW of power capacity on the following item.

Existing homes & new construction qualify, and the home must be your principal residence. Rentals and second homes do not qualify.

> Fuel Cells – Not too common, especially in the U.S., a fuel cell is an electrochemical cell that converts a source fuel (usually hydrogen) into an electrical current.

So, how would you go about applying for these Federal tax credits and rebates? Well, after you have done your homework and purchased the appropriate products/had correct items installed, head on over to the Energy Star website, which provides information on the necessary tax forms and other information.

However, don’t stop there – there may be State credits and rebates available as well!

The Database of State Incentives for Renewables & Efficiency, or DSIRE, provides a full list of state, local, utility and federal incentives and policies that promote renewable energy and energy efficiency. Created by the U.S. Department of Energy, it is an amazing reference to all things related to your home state, so be sure to remember to use it in addition to any Federal information you may find. You don’t want to leave any tax credits or rebates on the table while they are still available!

A major key to our communal survival on this planet is by using energy in a much more efficient manner. We cannot continue to destroy the planet in order to continue living the exact same way we did 25 years ago, so we have to make changes in the way we both harvest energy and use energy at home. Upgrading your home to be more energy efficient is a huge component of this, so please – when remodeling, building, or when just wanting to “go green” at home, take advantage of these tax rebates and credits whenever possible. They will save you some money and save us all some energy.

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