to Buying a

Solar Electric System

Ohio Consumer’s Guide

3

PV technology converts sunlightdirectly into electricity. It works anytime the sun is shining, but moreelectricity will be produced when thelight is more intense (a sunny day) andis striking the PV modules directly(when the rays of sunlight areperpendicular to the PV modules).

Unlike a solar system for heatingwater, which you might be morefamiliar with, PV technology does notuse the sun’s heat to make electricity.Instead, PV produces electricitydirectly from the electrons freed by theinteraction of sunlight withsemiconductor materials in the PVcells.

But you don’t need to understand thedetailed physics of how PV works tounderstand its appeal: investing in PVallows you to produce your ownelectricity with no noise, no airpollution, and no moving parts whileusing a clean, renewable resource.

A PV system will never run out offuel, and it won’t increase our oilimports from overseas. In fact, manyPV system components aremanufactured in the United Statesincluding right here in Ohio. Ohiomanufacturers produce inverters,batteries, and glass for use in PVsystems.

A national directory of renewableenergy manufacturers can be found at<www.GreenEnergyOhio.org> underthe heading, ‘Resources’.

Due to these unique characteristics, PVtechnology has been called: “Theultimate energy source for the 21stcentury.”

The basic building block of PVtechnology is the solar “cell.” PV cellsare wired together to produce a PV“module” - the smallest PV componentsold commercially. These modulesrange in power output from about 10watts to 300 watts. Conventionalmodules are designed to be mountedonto a roof or a free standing structure.New “building integrated” modules aredesigned into roofing materials and actas both a roof and an electricitygenerator.

A PV system tied to the utility gridconsists of one or more PV modulesconnected to an inverter that changesthe system’s Direct Current (DC)electricity to Alternating Current (AC),which is compatible with the utilitygrid and able to power devices such aslights, appliances, computers, andtelevisions. You may include batteriesin the system to provide back-uppower in case your utility experiencesa power outage.

What is a solar electric, or photovoltaic, system?

Background

ContentsPage

Background • What is a solar electric, or photovoltaic system? . . . . . . . . . . . . . . . . . . . . . . . . . . • Are incentives available to help reduce the cost? . . . . . . . . . . . . . . . . . . . . . . . . . .Investing in a PV system • Why should I buy a PV system? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • What makes a good location for a solar system? . . . . . . . . . . . . . . . . . . . . . . . . . . • Building-integrated photovoltaics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • How big should my PV system be, and what features should it have? . . . . . . . . • How much will my PV system save me? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • How much does a PV system cost? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • How can I finance the cost of my PV system? . . . . . . . . . . . . . . . . . . . . . . . . . . . .Selecting a PV installer • Who sells and installs PV systems? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • How do I choose among PV providers? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • How do I choose among competing bids? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • Is the lowest price the “best deal”? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Before connecting a PV system to the grid • Permitting a PV system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • Insuring a PV system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • Obtaining an interconnection agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • Obtaining a net metering agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • Utility and inspection sign-off? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Getting help . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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. Buying aPhotovoltaic—or PV—system can be a substantial investment in your propertydepending on the size of the system.

PV systems are reliable, pollution free, and use a renewablesource of energy—the sun. The more energy-efficientyour house, the greater the impact of a PV system.Measures such as increased insulation and energy-efficientlighting, appliances, and windows will drastically reduceyour home’s use of electricity.

To make PV systems more affordable, the state of Ohiooffers financial incentives through the Energy Loan Fundand other programs. Some utilities offer net metering tomake PV systems even more economical. Net meteringmeans that when your PV system generates more powerthan you need, the meter runs backwards resulting in aneven swap for the grid power that you use at other times.In essence, you receive full retail value for all the powerthat your PV system generates.

As with any investment, careful planning will helpensure that you make the right purchase decision.

**This booklet isdesigned to guide youthrough the process ofbuying a solar electricsystem. A word ofcaution: This is not atechnical guide fordesigning or installingyour system—for thatinformation, werecommend that youconsult an experiencedPV system designer orsystem supplier (“PVprovider”) who willhave detailed technicalspecifications andother necessaryinformation.**

35

6689

101212

14141515

161617181821

54

What incentives are available to help reduce the cost of mysolarelectric system?

Energy Loan Fund (ELF)The Ohio Department ofDevelopment (ODOD) Office ofEnergy Efficiency (OEE) hascollaborated with private lendinginstitutions to offer special lowinterest rate loans for energyefficiency and alternative energyprojects. This incentive isavailable to businesses,institutions, and residences. TheELF also supports a GrantProgram to partially fund thedevelopment of distributed energyresources throughout the state.Please visit the ELF website formore information:<www.odod.state.oh.us/cdd/oee/energy_loan_fund.htm>

OAQDA Tax ExemptionThe Ohio Air QualityDevelopment Authority (OAQDA)can offer tax exemptions (sales and usetax, pro-perty tax, and corporatefranchise tax) for renewable energyprojects. While the majority ofOAQDA projects come from businessand institutional custo-mers, residen-tial applications are eligible and arecost-effective if the project is ofsubstantial size. For more informa-tion, call the Authority at (800) 225-5051 or visit them on the web at:www.ohioairquality.org.

Conversion Facilities TaxExemptionFor companies considering energyconversion, solid waste energyconversion or thermal efficiencyimprovements to their facilities, taxexemptions may be available throughthe Conversion Facilities TaxExemption program. Details areavailable by calling John Greenway at(614) 466-7406.

Net Metering/SimplifiedInterconnectionIf your renewable energy system isconnected to the utility electric grid,net metering allows you to send anyexcess electricity back to the electricgrid and your electric meter actuallyspins backward. Each investor ownedutility (IOU) has simplifiedinterconnection standards (so you canhook your renewable energy system tothe grid) and the ability to offer you anet metering agreement. The PublicUtilities Commission of Ohio websitehas two documents that provide moredetail:• “Distributed Generation: How To Get Interconnected to Your Local Electric Utility Company’s System” and;• “Net Metering Questions & Answers” Both of these can be found at: <www.puc.state.oh.us/PUCO/ Consumer/information.cfm>

Additional Financial AssistanceThere are also Federal loans, grants,and tax credits available for a variety ofrenewable energy investments. A com-plete list of state and Federal incen-tives can be found at the Database ofState Incentives for Renewable Energy(DSIRE): <www.dsireusa.org>

Ohio has several incentiveprograms to encourage residential,business, and institutional solarinstallations. Eligibility andguidelines for these programs dochange periodically. Please referto the respective websites or the‘Getting Help’ section of thispamphlet for up-to-dateinformation on incentive programs.

Before you decide to buy a PV system, you should understand the current status of the technology:

­ First, it produces power intermittently because it works when thesun is shining. This is not a problem for PV systems connected tothe utility grid, because additional electricity is automaticallydelivered to you by your utility. Also, energy can be stored inbatteries connected to the PV system, so this energy can be usedlater when the PV system is not producing electricity directly fromthe sun.

­ Second, if you live near existing electrical service, PV-generatedelectricity is usually more expensive than conventional utility-supplied electricity. Improved manufacturing has reduced the costto less than one percent of what it was in the 1970’s, but the cost(amortized over the life of the system) is still about 25 cents perkilowatt-hour. This is about two to five times the retail price thatresidents now pay for electricity from their utilities. Financialincentive programs and net metering can help make PV moreaffordable, but it can’t match today’s price for electricity fromyour utility.

­ Finally, unlike electricity purchased month by month from a utility,PV power comes with a high initial investment and no monthlycharge thereafter. This means that buying a PV system is likepaying years electric bills up front. You’ll probably appreciate thereduction in your monthly electric bills, but the initial expensemay be significant. By financing your PV system, you can spreadthe cost over many years, and an assistance program can alsolighten your load.

A Building Integrated Photovoltaic (PV) system completed atOhio Univers i ty in Athens , Ohio

76

•AreaThe amount of mounting space neededfor a PV system is based on thephysical size of the system youpur-chase. Most residential systemsrequire as little as 50 square feet (for asmall “starter” system) up to as muchas 1,000 square feet. Commercialsystems are typically even larger.

A rule of thumb is that a square foot ofPV module area produces 10 watts ofpower in bright sunlight. Therefore, a1,000-watt system requires about 100-150 square feet of roof (mounting) area,depending on the type of PV moduleused.

PV modules are available today in arange of types, and some offer moreef-ficiency per square foot than doothers. If your location limits thephysical size of your system, you maywant to ins-tall a system that usesmore-efficient PV modules. Greaterefficiency means that the module usesless surface area to convert sunlight intoa given amount of electric power.(see table 1)

The cost per kilowatt of higher-efficiency modules is about the same aslow-efficiency modules, so this may notadd to your system’s price. Systemsizing is discussed later in this booklet.

•Roofing Surface If a roof-mounted system makes themost sense for you, it is useful to knowthat some roof types are simpler andcheaper to work with than others;however, a PV system can be installed onany type of roof. Typically, com-position shingles are easiest to workwith, and slate is the most difficult. Inany case, an experienced solar installerwill know how to work on all roof typesand can use roofing techniques thateliminate any possibility of leaks. Besure to ask your PV provider how the PVsystem might affect 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 thePV system is installed to avoid the costof removing and reinstalling your PVsystem. A Building-integrated systemcan be designed using PV cells that areincorperated into the roofing materialsthemselves. This is an excellent optionfor those replacing their roof or building anew home.

Table 1

PV cells can now be integrated into roofing

material

PV moduleefficiency

( % )PV capacity rating (watts)

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

Investing in a PV System

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-fuel resources and reduce air pollution. Otherswould rather spend their money on an energy-producing improvement to their property than tosend their money to a utility. Some people likethe security of reducing the amount of electricitythey buy from their utility, because it makesthem less vulnerable to future increases in theprice of electricity. Finally, some people justdon’t like paying utility bills and appreciate theindependence that a PV system provides.Whatever your reason, solar energy is widely thought to be the energy source ofchoice for the future, and state-sponsored programs can help you make it yourenergy choice for today and tomorrow.

Security . . . Efficiency . . . Independence . .\Investment in anenergy source fortoday and tomorrow

What makes a good location for a solar system?

•AccessTo make the best use of your PVsystem, the PV modules must haveunobstructed access to the sun’s raysfor most or all of the day. Trees, roofgables, chimneys, buildings, and otherfeatures of your home and the surr-ounding landscape can obscure lightrays and decrease the productivity ofyour solar array. Ohio law allowsproperty owners to create bindingsolar easements for the purpose ofprotecting and maintaining properaccess to sunlight.

Note that even though the areawhere a system is mounted may beunshaded during one part of the day, itmay be shaded during another. If this isthe case, then this shading maysubstantially reduce the amount ofelectricity that your system willproduce. Your PV provider has thetools to trace the sun’s path at yourlocation and determine whether yourhome or business can make use of a PVsolar system.

•OrientationThe orientation of your PV system(the compass direction that yoursys-tem faces) will affect performance.In Ohio, the sun is always in thesouthern half of the sky and is higherin the summer and lower in the winter.Usually, the best location for a PVsystem is a south-facing roof, butroofs that face east or west may alsobe acceptable. Flat roofs also workwell for solar sys-tems because the PVmodules can be mounted flat on theroof facing the sky or mounted onframes tilted toward the south at theoptimal angle.

If a rooftop can’t be used, your so-larmodules can also be placed on theground, either on a fixed mount or a“tracking” mount that follows the sunto orient the PV modules for maximumperformance. Other options (usedmost often in multifamily orcom-mercial applications) includemounting structures that createcovered parking or provide shade aswindow awnings.

98

How big should my PV system be and what featuresshould it have?Estimating DemandAs a starting point, you might considerhow much of your present electricityneeds you would like to meet withyour PV system. For ex-ample,suppose that you would like to meet50 percent of your elec-tricity needswith your PV system. You could workwith your PV pro-vider to examinepast electric bills and determine thesize of the PV system needed toachieve that goal.

You can contact your utility andrequest the total electricity usage,measured in kilowatt-hours, for yourhousehold or business over the last 12months (or consult your electric bills ifyou save them). Ask your PV providerhow much your new PV system willproduce on an annual basis (alsomeasured in kilowatt-hours) andcompare that number to your annualelectricity demand to get an idea ofhow much you will save. In the nextsection, we’ll provide moreinformation on estimating how muchyou will save.

Battery Back-upOne optional feature you mightconsider is a battery system to provideback-up power in case of a utility gridpower outage. Batteries certainly addvalue to your system, but at anincreased price.

Economies of ScaleAs you size your system, you shouldconsider the associated “econ-omies ofscale”. A larger system costs moreoverall, but has a lower cost perkilowatt-hour of generation. For ex-ample, many inverters are sized forsystems up to 5 kilowatts, and if yourPV array is smaller (say 3 kilowatts),you may still end up buying the sameinverter. Similarly, labor costs for asmall system may be nearly as much asthose for a large system. You willprobably pay less to install a2-kilowatt system all at once, than toinstall a 1-kilowatt this year andanother similar system next yearbecause multiple orders and multiplesite visits are more expensive.

Clean Power Estimator

The Ohio Energy office offers this valuable internet-based tool.The Clean Power Estimator (CPE) estimates energy output andprovides detailed economic analysis of a renewable energysystem customized to your needs. The CPE providesinformation for any location in the state based on Zip code. TheCPE uses precollected data on electric rates, tax rates, incentiveprograms, electric load profiles, and local weather patterns toprovide an estimate of costs, benefits, and output for almost anytype of renewable energy system. You can access the CPE at:

<www.clean-power.com/ohio>

Building-integrated photovoltaics (BIPV)Investing in a PV system is also aninvestment in the value of your home orbusiness. For many years people havebeen reluctant to invest in solar energyout of concern for aesthetics.

The heavy glass construction and bulkymounting of many conventional solarpanels may detract from the architec-tural style of a building or from thegeneral aesthetic of a community.Building-integrated PV systems aredesigned to blend with theconstruction of your roof, preservingaesthetics and increasing property value.

BIPV products use an advancedsemiconductor material that is adheredto stainless steel instead of beingsandwiched between glass panels. Thismakes the PV cells lighter, more flexible,more durable, and allows them to beintegrated into roofing materials.

BIPV technology has helped makesolar power more attractive and morecompatible with other values. BIPVmakes it possible to invest in cleanenergy without compromising theaesthetic value of your property.

The decreased reflectiveness of BIPV’sand the availability of different colorsmakes your PV system barelynoticable from a distance. Thesystems ability to work on diffuselight makes it effective even if theorientation of your roof isn’t perfect.Looks can be preserved without givingup too many points on efficiency. Askyour PV provider about the BIPVoptions for your home or business.

Shingle systems are just likeregular roofing shingles, except thatthey are covered with a film of PVmaterial. PV shingles allow yoursystem to blend seamlessly with therest of your roof. All of the wiring isinternal and there is no compromise tothe integrity of your roof. The Deckermodel home, featured on the cover ofthis pamphlet, is an example of a PVshingle system. Laminate systems are typicallyused for metal roofs. The PV filmcomes in rolls with adhesive backing.Even very large laminate systems canbe installed relatively quickly andcheaply since there is no additionalmounting materials necessary. Anillustration of a laminate system can beseen on page 4 of this pamphlet.

Slate or tile roofs will require a moreconventional rooftop PV system.Building-integrated rooftop systemsare still less intrusive than conven-tional systems and provide all theadditional benefits of the newtechnology.

Benefits of BIPV:• lighter and easier to mount• more durable• shade tolerant (able to work on diffuse light)• less reflective• available in a variety of colors

1 110

Keep in mind that actual energy production from your PV system will vary byup to 20 percent from the figures from the table, depending on your geographiclocation, the angle and orientation of your system, the quality of the components ofyour system, and the quality of the installation. Specific system output data forany location in Ohio can be determined using the Clean Power Estimator (featuredon page 9 of this pamphlet). The CPE provides accurate output data customized toyour geographic location and system characteristics.

Consider asking your PV provider for a written estimate of the average annualenergy production from the PV system. You should realize though that even if anestimate is accurate for an average year, actual electricity production will fluctuatefrom year to year due to natural variations in weather and climate.

If your utility does not offer net metering, you can still use the calculation boxto determine the amount of electricity your system will produce. But determiningits value is much trickier because your excess electricity will not be worth as muchas the electricity you actually use. You may earn only 2 cents per kilowatt-hour—orless than half of the retail rate—for your excess power. PV systems produce mostof their electricity during the middle of the day when residential electric loads tendto be small. If net metering is not offered by your utility, you may want to sizeyour system to avoid generating electricity significantly beyond your actual needs.

1400

1500

1600

PV EnergykWh/kW-yr

1400

16001500

1300

This regional solar insulation map illustrates kilowatt-hours of solar energy availableper year. NREL has compiled more specific data for certain cities in Ohio. Residentsof Toledo, Dayton, Cincinnati, Columbus, Mansfield, Cleveland, Akron, andYoungstown can obtain detailed solar insulation data at the following website: <http://rredc.nrel.gov/solar/calculators/PVWATTS/>

How much will my PV system save me?

The value of your PV system’s electricity will depend on how much you pay yourutility for electricity and how much your utility will pay you for any excess thatyou generate. If you buy electricity from an Investor Owned Utility (IOU), theyare required by Ohio law to offer net metering agreements. This means that theypay you the full retail price for any excess energy you produce (the same price youpay them). A listing of IOU’s and contact information can be found in the ‘Gettinghelp’ section of this pamphlet.

You can use the Calculating Electricity Bill Savings box on this page to get a roughapproximation of how much electricity your PV system will produce, and howmuch that electricity will be worth to you. Use a recent electricity bill to find outyour utility rate.

Calculating Electricity Bill Savingsfor a net metered PV system in Ohio

Directions:1. Find the estimated annual system output below that correlates best

with your location and the anticipated size of the PV system.

2. Multiply that number by your electric utility rate (e.g. 8 cents = .08)to get your annual electric bill savings.

Example:A 2kW (2,000 watts) system in Toledo with an electric rate of 12.5cents per kWh will save approximately $375 per year.(3000 kW/year x $0.125 =$375.00)

5 0 0watts

1 ,000watts

2 ,000watts

2 ,500watts

3 ,000watts

4 ,000watts

Western OH(Toledo, Dayton)

Rest of State

North East OH(Youngstown)

1 ,500 3 ,0007 5 0 3 ,750 4 ,500 6 ,000

7 0 0 1 ,400 2 ,800 3 ,500 4 ,200 5 ,600

6 5 0 1 ,300 2 ,600 3 ,250 3,900 5 ,200

Est imated Annual System Output (kWh per Year)Locat ion

**Estimates are based on peak watt output. This data was calculated using thesolar insulation map appearing on the following page. Insulation map is provided

by the National Renewable Energy Laboratory

1 312

How much does a PV system cost?A 2 kilowatt system that will offset thetotal needs of a very energy-efficienthome may cost $16,000 to $20,000installed, or $8 to $10 per watt. At thehigh end, a 5-kilowatt system that willcompletely offset the energy needs ofmany conventional homes may cost$30,000 to $40,000 installed, or $6 to $8per watt.

These prices, of course, are just roughestimates, and your costs will depend onyour system’s config-uration, yourequipment options, and other factors.‘Stand alone’ systems that are notconnected to the grid require extraequipment and may not follow thisdecreasing price-per-watt trend. Yourlocal PV providers can provide you withactual prices.

How can I finance the cost of my PV system?Financing the cost of purchasing andinstalling your PV system is similar tofinancing any other home improvement.Although there are some specialprograms available for renewable energyinvestments, most of the financingoptions will be familiar to you. (Pleasesee page 5 of this pamphlet forinformation on programs that helpoffset the cost of your investment suchas the Energy Loan Fund.)

The best way to finance PV sys-temsfor homes is through a mortgage loan.Mortgage financing options inc-ludeyour primary mortgage, a secondmortgage such as a U.S. Department ofHousing and Urban Development(HUD) Title 1 loan, or a home equityloan that is secured by your property.

There are two advantages to mortgagefinancing. First, mortgage fin-ancingusually provides longer terms and lowerinterest rates than other loans. Second,the interest paid on a mortgage loan isgenerally deductible on your federaltaxes (subject to certain conditions).

If you buy the PV system at the sametime that you build, buy, or refinance thehouse on which the PV system will beinstalled, adding the cost of the PVsystem to your mort-gage loan is likely tobe relatively simple and may avoidadditional loan application forms or fees.If mortgage financing is not available, lookfor other sources of financing, such asconventional bank loans.

Remember to look for the best possiblecombination of low rate and long term.This will allow you to amortize your PVsystem as inexpensively as possible.Because your PV system is a long-terminvestment, the terms and conditions ofyour PV financing are likely to be themost important factor in determining theeffective price of your PV-generatedpower.

PV systems purchased for businessapplications are probably best financedthrough a company’s existing sources offunds for capital purchases- usually SmallBusiness Administration loans orconventional bank loans.

Costs vary depending on a number offactors, including whether the home isunder construction, and whether the PV isintegrated into the roof or mounted ontop of an existing roof. The price alsovaries depending on the PV system rating,manufacturer, retailer, and installer.

With that in mind, the cost of a PVsystem does scale somewhat in relation tothe size of the system and how muchenergy it will produce.

Small, single PV panel systemswith built-in inverters that produceabout 75 watts may cost around $900installed, or $12 per watt. These smallsystems will offset only a small fractionof your electricity bill.

Pictured above: A 3 kW Photovoltaic System installed on the CarriageHouse at the Governor’s Residence. This “all-Ohio” installation is

owned by Green Energy Ohio with support from the Ohio Department ofDevelopment Office of Energy Efficiency through the Energy LoanFund. The PV project features thin film solar panels donated and

manufactured by First Solar in Perrysburg, a Vanner invertermanufactured in Hilliard, and three Ohio renewable energy installation

companies located in Maumee, Glouster and Athens, Ohio.

DOTY AND MILLER INSTALLATION

1 514

PV experience should not be eliminatedjust because it has not installed grid-connected PV systems in the past.

♦ How many years of experience doesthe company have installing PVsystems?This issue speaks for itself: Acompany or contractor that has been inbusiness a long time has demonstratedan ability to work with customers andto compete effectively with otherfirms.

♦ Does the company have anypending or active judgements or liensagainst it?As with any project that requires acontractor, due diligence isrecommended. Your State ElectricalBoard can tell you about anyjudgments or complaints against astate-licensed electrician. Consumersshould call the city and county inwhich they live for additionalinformation on how to check up oncontractors. The Better BusinessBureau is another source ofinformation on contractors.

How do I choose among competing bids?It is generally a good idea to get morethan one bid for the installation ofyour PV system. You should takesteps to ensure that all of the bids youreceive are made on the same criteria.For example, comparing a bid for asystem mounted on the ground againstanother bid for a rooftop system is likecomparing apples to oranges. Similarly,different types of PV modules generatemore electricity per square foot thanothers. Bids should clearly state themaximum generating capacity of thesystem (measured in watts orkilowatts). If possible, have the bidsspecify the system capacity in “ACwatts” under a standard set of testconditions, or specify the output ofthe system at the inverter.

You may want to obtain some estimateof 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—itis unrealistic to expect a specific figure.A range of ±20% is more realistic. Bidsalso should include the total cost ofgetting the PV system up and running,

including hardware, installation,connection to the grid, permitting,sales tax, and warranty.

A good manufacturer warranty for aPV system will last five years andcover the full cost of repair orreplacement of defective components.Ohio law requires PV Installers toprovide a one year service warrantycovering the labor of removing andreinstalling any defective components.Providers may also include annualmaintenance of your system as part oftheir service.

Your warranty is a veryimportant factor for

evaluating bids.

Is the lowest price the “best deal”?It might not be. Often, you get whatyou pay for. Remember that a PV com-pany is a business just like any other,with overhead and operating expensesthat must be covered. Companies thatplan to stay in business must chargeenough for their products and servicesto cover their costs, plus a fair profitmargin. Therefore, price should not beyour only consideration.

Selecting a PV Installer

In some locations, finding a PV provider can be as simple as picking up thetelephone directory and looking under “Solar Energy Equipment and SystemsDealers.” However, many of those listings are for solar water-heating companiesthat may not be experienced in PV system design or installation. Working with an

experienced PV provider will make this process a loteasier. Not only will your provider help you to selectthe right system, they will also guide you throughfinancing your system, help you find funding, andwork with your utility to get your systeminterconnected. A list of qualified local providers canbe found at <www.GreenEnergyOhio.org> under theheading, ‘Resources’.

Who sells and installs PV systems?

You should hire aprofessional PV

provider to help youselect and install the

right system

How do I choose among PV providers? Once you have compiled a list of prospective PV providers, you might firstconsider those closest to you, because the contractor’s travel costs might add toyour system price. Next, contact these providers and find out what products andservices they offer. When contacting companies, you will want to ask thefollowing questions to get a sense of their capabilities:

♦ Is the company properly licensed?PV systems should be installed by anappropriately licensed contractor.Depending on where you live, yourinstaller might need an Ohio electricalcontractor’s license to connect yoursystem to the grid. The State ElectricalBoard can tell you if a contractor has avalid electrician’s license. Local buildingdepartments also may require that theinstaller have a general contractor’slicense. Consumers should call the cityand county in which they live foradditional information on licensing.

Additionally, installers may be able todemonstrate that they possess specialknowledge about installing PV systemsin one of the following ways:

• Certification from the manufacturer ofthe PV system stating that the installerhas experience and/or training necessaryto install the system properly.

• Certification in PV systems by agroup such as the North AmericanBoard of Certified Energy Practitioners(NABCEP), the Great LakesRene-wable Energy Association(GLREA), or the Solar EnergyIndustries Association (SEIA).

♦ Has the company installed grid-connected PV systems? If not, has itinstalled grid-independent PV systems?Experience installing grid-connectedsystems is valuable because someelements of the installation--parti-cularly interconnection with thelocal utility-- are unique to thesesystems. Grid-connected systems arebecoming more common, but manycontractors with PV experience haveworked only on very rural systems thatare far from the nearest utility line.Although grid-connection work isdifferent from “off-grid” work, acompetent company with

1 716

Obtaining an interconnection agreementConnecting your PV system to theutility grid will require you to enterinto an interconnection agreement anda purchase and sale/ net meteringagreement. Federal law requiresutilities to supply you with aninterconnection agreement. Mostutilities have developed simplified,standardized interconnectionagreements for small-scale PVsystems.

The interconnection agreementspecifies the terms and conditionsunder which your system will beconnected to the utility grid. Thesewill include technical requirements foryour system, and other issues such asyour obligation to obtain permits andinsurance, maintain the system in goodworking order, and operate it safely.

The purchase and sale agreementspecifies the metering arrangements,the payment for any excess generation,and any other related issues. Netmetering is covered further in the nextsec-tion. Note that if you buy powerthrough a competitive electricsupplier, you will need to make anadditional purchase and sale agreementthrough them.

The language in these contracts shouldbe simple, straightforward, andeasy to understand. If you are unclearabout your obligations under theseagreements, you should speak withyour PV provider or contact yourutility for clarification. If yourquestions are not adequatelyaddressed, contact one of the groupsunder the ‘Getting Help’ section at theend of this booklet.

National standards for utilityinterconnection of PV systems havebeen developed and are being adoptedby many local utilities. The mostimportant of these standards focuseson inverters. Traditionally, inverterssimply converted the DC electricitygenerated by PV modules into the ACelectricity used in our homes. Morerecently, inverters have evolved intoremarkably sophisticated devices tomanage and condition power.

Many new inverters contain all theprotective relays, disconnects, andother components necessary to meetthe most stringent national standards.Two of these standards are particularlyrelevant:

• Institute of Electrical and ElectronicEngineers, P929: RecommendedPrac-tice for Utility Interface ofPhotovoltaic Systems. Institute ofElectrical and Electronic Engineers,Inc., New York, NY (1998).

• Underwriters Laboratories, ULSubject 1741: Standard for StaticInverters and Charge Controllers forUse in Photovoltaic Power Systems(First Edition). UnderwritersLaboratories, Inc., Northbrook, IL(December 1997).

You don’t need to fully understandthese standards, but your PV providerand utility should. It is your obligationto ensure that your PV provider usesequipment that complies with therelevant standards, so be sure todiscuss this issue.

Connecting to the Grid

Permitting a PV systemIf you live in a community in whicha homeowners association requiresyou to gain approval for a solarsystem, you or your PV provider mayneed to submit your plans to anarchitectural committee and obtain anagreement from your neighbors beforeyou have the system installed.

Most likely, you will need to obtainpermits from your city or countybuilding department. You willprobably need a building permit, anelectrical permit, or both beforeinstalling a PV system. Typically,your PV provider will take care of this,rolling the price of the permits into theoverall system price. However, insome cases, your PV provider may notknow how much time or money will beinvolved in “pulling” a permit. If so,this task may be priced on a time-and-materials basis, particularly ifadditional draw-ings or calculationsmust be provided to the permittingagency. In any case, make sure thepermitting costs and responsibilitiesare addressed at the start with your PVprovider.

Code requirements for PV systemsvary somewhat from one jurisdictionto the 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 and ins-talling safe, reliable, code-compliant

Be sure to get allrequired permits before

installing your PVsystem

PV systems. Because most localrequirements are based on the NEC,your building inspector is likely torely on Article 690 for guidance indetermining whether your PV systemhas been properly designed andinstalled. If you are among the firstpeo-ple in your community to install agrid-connected PV system, your localbuilding department may not haveapproved one of these systems. If thisis the case, you and your PV providercan speed the process by workingclosely and cooperatively with yourlocal building officials to help educatethem about the technology and itscharacteristics.

Insuring a PV systemYour electric utility will require you toenter into an interconnectionagreement, described more fully in thenext section. Usually, theseagreements set forth minimuminsurance requirements that you mustkeep in force. If you are buying a PVsystem for your home, your standardhomeowner’s insurance policy isusually adequate to meet the utility’srequirements. However, if insurancecoverage becomes an issue, contact oneof the groups under the ‘Getting Help’section of this booklet.

1 918

Obtaining a net metering agreement

Since 2000, Public UtilitiesCommission of Ohio (PUCO)regulations have required all IOU’s inthe state to offer interconnection on a“net metering” basis. This is availableto all residential customers with PVsystems of 100 kW or smaller. Ohioutilities are required to provide theseagreements until the total amount ofconsumer generated power in theirservice territory reaches 1.0% of theutility’s electric demand.

Additional notes on net metering:• Each utility has different interconnection and net metering tariffs.Information on these can be found on the PUCO website referenced in the‘Getting Help’ section at the end of this booklet.

• Commercial customers may be billed on an kW basis rather than kWh basis,that is they are billed based on demand. In this case net metering will not beavailable, but a PV system can still be effective in lowering your energy bill bygenerating electricity during periods of high demand.

• Rural electric cooperatives and municipal-operated electric utilities are notrequired to offer net metering. Some of them do offer this service, but youwill need to check and make sure.

Net metering allows eligible customerswith PV systems to connect to the gridwith their existing single meter.Almost all standard utility meters areable to measure the flow of energy ineither direction. The meter spinsforward when electricity is flowingfrom the utility into the building andspins backward when power isflowing from the building to the utility.Net metered customers are billedmonthly for the “net” energyconsumed. If the customer’s netconsumption is negative in any month(i.e., the PV system produces moreenergy than the customer uses), thebalance is credited to subsequentmonths. If a customer’s bill shows acredit for three consecutive months,the customer can request a cashpayment for the total accumulatedcredit.

After your new PV system is installed, it must be inspected and “signed off”by the local permitting agency (usually a building or electrical inspector) andmost likely by the electric utility with which you entered into an intercon-nection agreement. Inspectors may possibly require your PV provider to makecorrections to satisfy requirements. Don’t be alarmed if this happens, it isfairly common in the construction business.

Utility and inspection sign-off

Ohio is home to some ofthe most consumer-

friendly net meteringregulations in the nation.

PV Purchasing Checklistq Assess Location

√ Review the items discussed on pages 4 and 5 of this pamphlet. Make an initial assessment of how well solar power will work in your location.

q Estimate Demand√ Consult past electric bills or contact your utility and request your total usage (in kilowatt-hours) for the past 12 months.√ Look into energy efficiency techniques to decrease your demand and make your PV system more effective. Visit: <http://www.eere.energy.gov/consumerinfo/ energy_savers/>

q Size a System√ Decide how much of your annual demand you would like to offset with PV generation, perhaps you can use PV to supply your total energy needs.√ Use the Clean Power Estimator (CPE) to find the kilowatt-hour potential in your location for different sizes of systems. <www.clean-power.com/ohio>

q Consider System Options√ Is a building integrated system the best for you? Perhaps your location will require an independently mounted system. Will a battery back-up be useful?

q Contact PV Providers√ Green Energy Ohio maintains a list of certified PV installers operating in Ohio. <www.greenenergyohio.org>√ Check out credentials, compare bids and warranty information. Refer to pages 10 and 11 of this pamphlet.

q Financing and Funding√ Investigate which incentives and grant programs you may be eligible for. Your PV provider can help you with this process. Page 5 of this pamphlet covers incentives.√ Choose a financing method to cover the rest of the cost. Refer to page 10 of this pamphlet for more information on financing.

2 120

Permits and Net Metering Checklist

o Permits√ Contact local building department and homeowners’ associa tion to find out what permits are required in your jurisdiction. Refer to page 16 of this pamphlet.√ Your PV provider will have experience in this area and may even be familiar with the building codes in your jurisdiction

o Insurance√ Make sure your homeowners’ insurance will cover your PV system. This will be a requirement in your interconnection agreement.

o Interconnection/Net Metering√ Contact your utility and tell them you wan to be a distributed generation customer. Request an application for an intercon nection and net metering agreement.√ Work with your PV provider to complete the application. See pages 17 and 18 of this pamphlet for more on interconnection and net metering.

o Inspection and sign-off√ Have your system approved by your utility and by the local permitting agency.

Investor Owned Utilities

American Electric Power (AEP)Larry HutchinsonDistributed Generation Coordinator1 Riverside PlazaColumbus, OH 43215(614)--716-1377www.AEPcustomer.com/home/generatingdgcoordinator@aep.com

Allegheny Power800 Cabin Hill DriveGreensburg, Pa 15601-16891-800-255-3443

CinergyMark Musick1000 E MainPlainfield, IN 461681-(800)-262-3000 ext. 1152

Dayton Power & LightSharon CrawfordPO Box 8825Dayton, OH 45401(937) -259-7181

First EnergyPaul Gerber76 S. Main St., 11th FloorAkron, OH 44308(330)-384-5230

Information on other utilities

AMP Ohio2600 Airport Dr.Columbus, OH 432191-800-875-2676www.amp-ohio.org

Buckeye Power6677 Busch Blvd.,P.O. Box 26036Columbus, OH 43226(614)-846-5757www.buckeyepower.com

Web Resources:

PV Provider Listing:<www.greenenergyohio.org>

Clean Power Estimator:<www.clean-power.com/ohio>

Database of State Incentives for RenewableEnergy: <www.dsireusa.org>

U.S. Department of EnergyEnergy Efficiency and Renewable Energy<www.eere.energy.gov/solar>

National Renewable Energy Laboratory<www.nrel.gov>

The Foundation for EnvironmentalEducation<www.the-environment.org>

More Information

Notes:

Public Utilities Commissionof Ohio180 East Broad StreetColumbus, Ohio43215-37931-(800)-686-PUCOwww.puc.state.oh.us • guide to distributed generation • net metering frequently asked questions • technical requirements for interconnection • tariff schedules

This consumer’s guide was produced by Green Energy Ohio with thesupport of the Ohio Department of Development Office of Energy

Efficiency. It is modeled after other state-specific consumer guidesproduced by the National Renewable Energy Laboratory (NREL).

Ohio Department of DevelopmentOffice of Energy EfficiencyTom MavesRenewable Energy Specialist77 S. High St.Columbus, OH 43216-1001Toll Free Number: 1-(800)-848-1300Email: tmaves@odod.state.oh.usWebsite: www.odod.state.oh.us/cdd/oee/renewables.htm• information on state incentive programs• links for consumer information and PV system design

Contacts

Information and assistance for all aspects ofrenewable energy:

Green Energy Ohio7870 Olentangy River Rd. Ste. 209Columbus, OH 43235Toll Free Phone: 1-(866)-GREEN-OHWebsite: www.GreenEnergyOhio.orgEmail: geo@GreenEnergyOhio.org• PV provider listings• resource links• speakers, workshops, community events.