RESIDENTIAL & COMMERCIAL

SOLAR REVIEW

Presented By:
Daniel M. Mullaney
1st Light Energy
www.1stLightEnergy.com
Solar System: Most systems today are Grid tied, meaning no battery back up involved.
The typical
system includes the panels on the roof, which generate Direct Current from the suns rays.
This D/C
current is carried by a conduit to an inverter, which converts the D/C power to A/C for use
in homes and business. From the inverter, the electricity flows into the service panel, with
excess power flowing back to the Grid.
Net metering is a program offered by a utility company for customers that install
renewable energy systems to generate their own electricity that can be used to offset
a portion of the electric energy provided by the utility. Any excess energy generated
by the customer during the monthly billing cycle would be sold to the utility company
and credited to the customer.
Unlike most home improvement projects, Solar PV installations are a true
investment, as there is a rate of return based on the savings derived from a
reduced utility bill, as well on any funds invested as part of a down-payment
to reduce the electric rate.

It is estimated that for every 6 residential system installed, one job

is created.
 Some Obvious Questions about Solar
Does Solar Work in New England?
New Englands climate can be tough at times, but there is plenty of sunlight to support solar
energy. In fact, cooler Northeast temperatures make solar electric cells work more
efficiently. Much more important than sunlight intensity are programs to make solar cost
effective, which is why cool and cloudy Germany is actually the global leader in solar
generated electricity.

What about snow?

Solar panels will not produce when covered in snow. However they have a tempered glass
surface and dark color, so snow is quick to melt off them once the sun returns. This means
that over the course of a year snow cover has an extremely small effect on overall
production.

Would a solar system increase the value of my home?

Every home is different, but a study published by the Appraisal Institute estimates that for
every utility-bill dollar saved due to an energy improvement, you gain $20 in property
value. So a solar system that saves $1,000 per year in utility costs can increase your
homes value by $20,000. Also, the U.S. Department of Energy recently found that even in
soft housing markets, a home with solar will sell in half the time as one without.

Are solar panels fragile?

Solar Electric systems are extremely rugged. They have no moving parts to wear out over
time. Many solar installations have been producing energy for over thirty years, and today
almost all solar panels come with a 25 year warranty. Todays panels are designed to
 Some Obvious Questions about Solar
Do solar panels need to be cleaned?
Except in unusual circumstances where panels are in close proximity to a dusty or heavily
polluted area, solar panels do not require cleaning. In New England there is enough rain to
give solar panels all the washing they need.

Does a roof need to face south?

The ideal roof slopes towards the south, since southern exposure will maximize the
efficiency of solar panels. But even if your roof is east or west facing, you can still get
strong results. If there is a flat roof we can orient the panels to maximize efficiency.

How much roof space is required for a solar electric system?

For every kilowatt (kW) installed, a solar system takes up about 100 square feet, so an
average solar system takes between 500 and 600 square feet.

What size solar system is needed?

The size of a solar PV system depends on how much electricity is used. When we design an
array, we start by looking at utility bills to determine the usage. From there we assess the
specifics of a clients site, including building orientation and roof shading to see how much
energy it could generate. We then offer the client a detailed proposal usually with two or
three optimal system sizes - specific to their situation.
 Solar Power Qualifiers

Roof Age

Shading

Azimuth

Roof tilt
 SITE QUALIFICATION

Roof Condition and Age

No Cracking or Curling of Shingles,

10 Years or younger in age is ideal
Roof Mounts
Professional Mount
 Roof Mounts
Panel Claw for Flat Roofs
 SITE QUALIFICATION

Shading
 SITE QUALIFICATION

Azimuth
Southern Orientation is most desirable
Eastern Exposure typically acceptable
Western Exposure is often possible
Northern Orientation usually improbable
 Suns Path
 SITE QUALIFICATION
IM NOT
POR
TA
NT
Roof Tilt
For maximum annual generation in Massachusetts,
a solar array should be installed at approximately
a 30-45 degree angle to the horizon.
Example:
90 - 42 = 48 Tilt is the most ideal
 State Solar Programs

Solar PV works in states with viable incentive

programs
Massachusetts Commonwealth Solar
Initiative
California Production Based Incentive (PBI)
New Jersey SREC program
Pending - Connecticut, New York,
Pennsylvania Arizona, Colorado, New Mexico,
Oregon and Hawaii,,
The ARRA American Recovery and
Reinvestment Act
 Incentives - Lots of Green $$ to Go Green
Federal Renewable Energy Residential Tax Credit
Tax credits are available at 30% of the cost of the solar energy system,
with no upper limit through 2016 (for existing homes, business & new
construction). If a potential tax liability is small a customer can take the
credit every year until it is gone until 2016.
State Tax Credit A personal tax credit is available at 15% of the cost
of the solar energy system (after federal tax credits and grants) up to
$1,000. The credit can be carried forward for 3 years.
State Rebates
The Massachusetts state rebates for solar PV and solar are available to
customers served by all the major utilities in the state. This rebate is
capped at $2,000 and is adjusted downward for larger systems (projects
are eligible for rebates only if their total capacity is under 15kW)
Solar Renewable Energy Credits (SRECs)
SRECs are tradable certificates generated by the creation of solar
electricity. A system will produce 1 SREC per year for every 1kW of PV
installed. The average New England home uses about 6,000 kWh = 6
kW system = 6 SRECS
 Incentives - Lots of Green $$ to Go Green
(cont)
SREC Values = $285 minimum per SREC

SREC Values are guaranteed until 2020 by the Commonwealth of Mass.

SRECs Trade on an auction platform regulated by the states.

Typical System: 6 SRECS x 285 = $1,710 per year in income

This income is either received by the customer or by the Solar

Provider, depending upon the method of financing selected.

Solar is expensive at roughly $4,700/kilowatt (or $0.37/kWh)

Government credits, rebates and subsidized programs = under .10/kWh

On a typical solar project, the federal tax incentives pay for more than 1/3, local
or state incentive programs pay for 1/3 and the last 1/3 comes from spreading
out payments through PPA or Lease/Loan.
 Choice of Funding Methods

CASH (All incentives) Customer pays for the entire system from savings
Responsible for any maintenance, insurance, monitoring, inverter
replacement, and removal and disposal of the system after useful life.
LOAN (All incentives) Customer pays for system through 10Y debt
Responsible for any maintenance, insurance, monitoring, inverter
replacement, and removal and disposal of the system after useful life.
PREPAY w/SREC-(SRECs only)Customer pays for lease UPFRONT
NOT Responsible for any maintenance, insurance, monitoring,
inverter
replacement, and removal and disposal of the system after useful
life.
Receives SRECs
LEASE/P.P.A (No Incentives) Customer pays a low monthly fee, no
upfront. NOT Responsible for any maintenance, insurance,
monitoring, inverter
replacement, and removal and disposal of the system after useful
life. NO SREC
 FINANCE PARTNERS

FINANCIERS

1.) Clean Power Finance PPA (Pay for amount of energy

PV system produces every month)

2.) NRG Solar Lease (fixed monthly payment)

3.) Admiral Bank Conventional Loans and FHA Title 1

Funding
 Lease & Power Purchase Agreement (PPA)
Free Installation
1st Light Energy will install the solar system for free with zero out of pocket cost.

Save on Monthly Electric Bills

With a Solar PPA- simply pay for solar power by the monthjust like a utility billonly
lower.

Savings Grow Every Year

Savings can grow over time as utility rates continue to increase. Historically, utility
rates have increased over 4.5% every year. With a Solar PPA, a low rate will be locked
in for 20 years.

Premium Service Package

With a Solar PPA, we install a system for free and we maintain the equipment on the
home.

System Monitoring- Constant monitoring of a system's performance with Locus , a

premier monitoring service. If problems do arise, a service crew will be notified and
dispatched to get the solar system back online.

Repair Service- 1st Light Energy owns the equipment and is responsible for repairs,
such as inverter replacement.

Insurance Coverage-- All-inclusive system coverage protects against damage or

theft.
Power Purchase Agreement (PPA)
PPA gives you a low ($0 or more) up front cost.
Youre locked in for 20 years to this agreement, which is transferable to
a new owner of the home should you sell the house.
They charge you a set electrical rate that is sometimes flat, and
sometimes calculated to rise over the term of your agreement. So
instead of paying for coal fired electricity rates, youre paying for PPA
rates generated through your solar panels.
The PPA company takes care of the maintenance and any needed
repairs and monitors your system.
You dont get anytax benefitsor State rebates orSolar Renewable
Energy Credits (SRECs)
You usually have some kind of option to buy later or at the end of the
agreement for a set price per watt.
You need to have an good credit rating to qualify.
Youre always tied to the grid, so any residual electricity needs that your
solar panels dont produce is covered by your utility.
 Lease
Lease gives you a low ($0 or more) up front cost.
Youre locked in for 20 years to this agreement, which is transferable to
a new owner of the home should you sell the house.
Unlike a PPA, you do NOT pay for any power that your solar panels
generate. Instead, you pay a lease payment plus any extra power you
need to buy from your electric company. So, solar panel power is
technically free, but you have a set lease payment that is fixed or may
rise 3 to 4% a year. Thats typically less than the 5% rate increases by
your electric company.
The lease company takes care of the maintenance and any needed
repairs and monitors your system.
You dont get anytax benefitsor State rebates orSolar Renewable
Energy Credits (SRECs)
You usually have some kind of option to buy later or at the end of the
agreement for a set price per watt.
You need to have an good credit rating to qualify.
Youre always tied to the grid, so any residual electricity needs that your
solar panels dont produce is covered by your utility.
 Information needed for
enrollment
Credit Rating Score of 700 or greater

Updated Utility Bill

Site Survey

High Speed Internet Connection

High Speed Internet
Connection
12000 Evan Shu Case
scenario
10000 Reduced need of
Pre solar
usage
electricity from
8000
Post solar National Grid by
usage2 56%.
6000 Pre solar Reduced annual
cost
Post Solar
energy cost by 18%
4000
cost from $1550 a year
2000
down to $1250!

0
 With a locked in rate of $0.096 and
55% of energy coming from Solar
$3,500
Power
$3,000

$2,500

$2,000
Pre Solar
$1,500
Post Solar
$1,000

$500

$0
8000 Customer Kevin
Case scenario
7000
Reduced need of
6000 Pre Solar
Usage electricity from
5000 Post Solar NSTAR by 100%
4000
Usage2 Reduced annual
Pre Solar
Cost
energy costs by
3000
Post Solar 51% from $1200 a
2000 Cost2 year down to $580
1000 a year!
0
 With a locked in rate of $0.087 and
100% of energy coming from Solar
$4,000
Power
$3,500

$3,000

$2,500

$2,000
Pre Solar
$1,500 Post Solar

$1,000

$500

$0
dmullaney@1stlightenergy.com
1 (508)395-9380
www.1stlightenergy.com