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If you are a PARTICIPANT IN THE FIRST PROJECT and you have technical questions specifically related to the products we will use in this project, contact the contractor from Imagine Energy (503-477-9585). We'll try to keep track of the FAQs here, for everyone's perusal. If you haven't seen it at an event already, take a peek at the Going Solar with Solarize Portland presentation PDF here.
Now you are in line and when they get to your name Imagine Energy will contact you to set the site-assessment appointment. While you are waiting, get your house in order. Make sure your electrical and roofing systems are all in good shape. Check out this brief outline from Imagine Energy about what to expect in the coming weeks.
Q: Is there enough sun in Portland to make solar power a viable option?
Yes. Here is a surprising fact: Portland gets as much sun as the "national average." And how about this: we get more sun than anywhere in the whole of Germany. Interestingly, Germany is the global leader in solar installations.
Q: What does a solar electric system cost, roughly?
Let’s take a mid-range system, which would be just about perfect for a Portland Bungalow = 3KW. Your house (or your budget) might warrant a smaller system, or it might warrant a larger system. If as a group we aggregate a total purchase of 150 KW (around 50 homes), through Solarize Portland a 3kw system should cost around $20,500 before incentives and tax credits. With incentives and tax credits, that cost should come down to about $3600. Remember, your solar installation can scale to meet your needs OR your budget (a smaller installation would cost you less and still be quite rewarding).
That same system will generate an energy savings of about 3000kWh per year which should translate to about $300 savings per year (at today's electricity rates). At today's rates, these systems will pay for themselves in 10 years and if energy costs rise (if?) the time it takes for this system to pay for itself shortens. Meanwhile, you are generating clean energy for Portland and investing dollars in the green-technologies market. It is a long-term investment, for sure. But if the long view looks good to you, join us.
Q: What are the incentives that are available this year?
Solar Oregon offers a rundown of available incentives at: http://www.solaroregon.org/learn/financial-incentives/residential-solar-incentives/solar-electric
Solar Now! also offers a rundown of available incentives, including a low-cost financing option through Umpqua Bank called GreenStreet Lending. Go here: http://www.solarnoworegon.org/paying.html
Energy Trust offers a cash incentive that depends on the size system you install and who your electric company is. Most of us in the project area have PGE as a utility, but some folks are served by Pacific Power. The incentive rate for PGE customers is $2.25 per watt, and for Pacific Power customers is $2.00 per watt. The max you can receive is $20,000 per house... which is a really big system. Their incentive works kind of like a coupon in that the contractor will reduce the price to you by the amount of the incentive, which means you have less money to pay up front. Energy Trust reimburses the contractor after the system passes inspection.
The state tax credit, which is administered by the Oregon Department of Energy, is calculated at $3.00 per watt you install. But, it's capped at $6,000 - pretty much any system installed through this project will get the full $6,000. This credit is taken over time in $1500 chunks. So, you'll be receiving $1500 in the 2009 tax year, $1500 in the 2010 tax year, $1500 in the 2011 tax year, and the final $1500 in the 2012 tax year. If you can't claim the full $1500 in any given year, now worries; you have up to 8 years total to claim the tax credit (4 extra years to use up any excess carry forward).
The federal tax credit is 30% of what you pay to the contractor (which is the sticker price LESS the Energy Trust cash incentive). There is no cap. So, if you do a 3kW system that costs $20,400 and receive $6,750 from Energy Trust, for a net of $13,650 that you pay the contractor... you'll receive 30% of that ($4,095) as a federal tax credit. You can claim this in one year or carry it forward.
Q: How will the contractor choice be made?
Each Solarize Portland project will lean heavily on the research and vetting already done by other organizations, like Energy Trust of Oregon. As Lizzie Rubado (Residential Solar Project Manager) at the Energy Trust explained to us in a meeting in May 2009, the Energy Trust has a significant stake in what goes on your home. With the Energy Trust providing up to $20,000 towards the bill, they want to make sure what they get (and you get) is a good contractor, a proper install, and quality technology that is efficient and built to last. Great. That’s what we want too. So, we are happy to use the Energy Trust Trade Allies list as our source list for picking a Project Contractor. To receive Energy Trust funds, we have to use a contractor Energy Trust, well, trusts. To be eligible for the State tax credits, the job must be done by an Oregon Department of Energy Tax Credit Certified Technician, which means the contractor you choose must be Energy Trust approved AND State Certified as a Certified Solar Technician. Solarize Portland projects will pick contractors that meet both qualifications. Which should not only mean that you are eligible for all available incentives, but also that this contractor has been vetted more than the average construction contractor. That sounds good too.
UPDATE from the first Solarize Portland project - Summer 2009: We've chosen a contractor AND we know the discounts we'll be offered based on our bulk-purchasing power. The contractor is locally based Imagine Energy (www.imagineenergy.net). Going local means we get the added bonus of seeing a sizable amount of money (that which we will spend on solar panels as a group) invested in our local economy. In 2009, Portlanders are paying an average of $9,500 per kw for solar panel systems. As a group, Solarize Portland participants will pay $6,800 per kw.
Q: Will the Alternative Minimum Tax (AMT, this is a Federal Tax) prevent me from realizing the tax credit incentives?
AMT used to be a concern, but new legislation passed in October of 2008, "allows individual taxpayers to use the credit to offset AMT liability, and to carry unused credits forward to the next succeeding taxable year." So it’s no longer a barrier. As you might imagine, we must remind you that only a tax professional can give you tax planning advice... so remember to check with your preferred professional.
Q: What maintenance costs and procedures should I expect and budget for over the life of my solar electric system?
Regular maintenance is minimal for residential systems. If panels get especially dirty, you can hose them off once a year. Eventually, the inverter will wear out and need to be replaced (it is a computer, and like a computer has a life expectancy of about 10-15 years). The inverters to be installed for Solarize Portland participants (SMA Sunny Boy) carry a 10 year warranty from the manufacturer.
Q: What does an inverter cost?
Imagine Energy tells us that right now inverters cost about $1.00 per watt of solar electric panels you have. So, an inverter for a 3kW system will run you about $3,000. Here's the good news: these costs are coming down and Jonathan Cohen of Imagine Energy forecasts that prices could be as low as $.50 per watt in ten years, which is the soonest you'd be replacing your inverter.
Q: What solar electric panels did the first project purchase and install?
Participants in the first project have three choices of panels: SolarWorld Sunmodule, Evergreen ES-A Series or Sanyo HIT. They each have their own features, and it will be up to you to work with Imagine Energy to determine which one is best for your project. (NOTE: The Sanyo HIT panels will only be available for homes that have a limited roof space relative to the amount of energy production they are trying to achieve.) The inverter is the SMA Sunny Boy, and it is about the size of a desktop combination printer/scanner/fax machine. The inverters will likely come with desktop monitoring like this.
Q: I pay very little in the way of taxes because I already have large deductions. Can I realize the tax credit benefits?
The good folks at the Energy Trust of Oregon explained to us that the state tax credit (usually $6000 total) is taken over 4 years, at $1500 per year. If you are unable to claim the full $1500 in any given year, don't worry -- you have four extra years (for a total of 8 years) in which to claim any unused credit. NOTE: you need to claim an average of $750 per year in tax credits to be able to take full advantage of the state credit.
The federal tax credit (which is 30% of the cost paid to the contractor) can be taken in one year or carried forward. (Carry forward for how many years? Check back again for that answer as we are still digging that up.)