Claudette Hanks Reichel, Ed.D. Professor and Extension Housing Specialist Director, LaHouse Resource Center Louisiana Cooperative Extension Service Louisiana State University AgCenter

© 2015 LSU AgCenter  Benefits of clean, renewable energy  Home solar PV = expensive investment  Many options, factors to consider  Wide array of incentives Jump start solar investment & industry  Creative financing (solar leases, PPA) Problems and complaints

© 2015 LSU AgCenter  PV before efficiency  Surprise! No solar when no grid power  Poor installation, damage to home, permits  Inefficient, low output  Misinterpret incentives, net metering  Predicting financial ROI – buying vs. leasing  High pressure sales, deceptive practices  Signed “acknowledgment” is really sale or lease contract  Delays: payments due before solar power output  Inflated predicted savings, high lease/PPA annual escalation rate  Repairs, replacements, reroofing – who, how?  Impact of lease on home sale, value, marketability

© 2015 LSU AgCenter

To provide objective, user-friendly consumer ed. on home solar PV:  Benefits, limitations, tech options, installation guidelines, contracting and financial considerations  Answer key consumer questions  Insights to avoid problems  Enable well-informed choice  Achieve desired benefits

© 2015 LSU AgCenter  Benefits  Clean, renewable energy  Save money, hedge against rising energy costs  Distributed energy  Personal values  Limitations  Cost  Not continuous, need back-up  Location limits, shade  Local restrictions

© 2015 LSU AgCenter  Efficiency First!  Efficient home needs less power  Don’t pay to waste!  How-to resources  Analyze ROI (savings or payback)  Consider long term  Find Incentives 

© 2015 LSU AgCenter  Solar PV Basics  Components  Types of Systems  Off-grid (battery bank)  Grid-tied (electric utility)  Hybrid  Net Metering or FIT (feed-in tariff)  Incentive – credit for surplus power  Retail rate vs. wholesale rate  Eligibility, caps, carry-over limits  Policies can change  Community Solar alternative

© 2015 LSU AgCenter  Types of PV Technology  Crystalline cells o Mono – highest cost, efficiency o Poly – lower cost, efficiency  Thin film cells o Flexible o Attractive building-integrated forms o Lowest cost, efficiency - but More tolerant of shade, diffuse light Less overheating in warm climate  Future technologies

© 2015 LSU AgCenter  Placement  Orientation o S, SE, SW ideal o West for high value power  Tilt, tracking  Shade – BIG impact  Your Geographic Solar Resource  See solar map at  Avg. hours sunlight/day o NW USA = 3 hrs./day o SW USA = 6.5 hrs./day

© 2015 LSU AgCenter  Sizing  PV power rating, solar resources, electricity output  Use NREL PVWatts Calculator  Installation Tips  Roof mounted o Racks, reroofing concerns o Solar porch/patio roof advantages  Ground mounted  Building-integrated  Cautions: o Wind, hail, insurance, fire codes, permits, zoning, grid procedures, inverter location  Operation and Maintenance  External and internal issues

© 2015 LSU AgCenter  Search and verify  Search methods  Credentials  Judgments, complaints  Get written proposals  Get a Strong Contract  Provision that protect you  Know permitting requirements  Examine Warranties  Components, labor, time, maintenance obligations  Who is responsible?  Roof warranty

© 2015 LSU AgCenter  Many things to consider  When buying, you own it o May pocket “profit” after cost recouped  When leasing, the co. owns it o May start saving right away  Leasing a solar PV system = 3 rd party financing:  Solar lease o set monthly payment  Power purchase agreement (PPA) o set price/kwh for solar power  Escalation schedule o 2-4% increase each year

© 2015 LSU AgCenter  Solar lease contract – protections to look for:  Right to rescind  Maintenance requirements  If malfunction, poor installation or damage to home, then…  Renewal, purchase terms  Termination (ending lease)  If you sell your home…  If you default…  If the co. defaults or goes out of business…

© 2015 LSU AgCenter  Purchasing a solar PV system  Can use incentives  Explore low-rate loans o Local solar loans o PACE (repaid through property taxes) o Home equity loans especially FHA, VA, USDA, HUD  Compare buying vs. leasing  Compare apples with apples  Use of tax credits, other incentives  Monthly cost (less tax deduction)  Effect on property value, marketability  Net metering availability  Future monthly cost (escalation rate)  Future savings (monthly cost – bill reduction )  Tax liability

© 2015 LSU AgCenter

Claudette Hanks Reichel, Ed.D. Professor and Extension Housing Specialist Director, LaHouse Resource Center b