- It is a simple process requiring no moving parts.
- Photons from the Sun strike the solar panels during daylight hours and causes electrons in the silicon crystals to be excited. That movement of the electrons create a Direct Current (DC), which is sent to an inverter to be converted to an Alternating Current (AC) electricity. (That is what homes and business run off of).
- During the day, in peak production months, the solar system will produces more electricity than is needed to run your home or business and that excess electricity is automatically sent to the utility company and your electric meter actually runs backwards giving you the credit for this excess energy.
- In reality your excess energy flowed to your neighbors and helped to power them with clean renewable energy but you still got full retail credit for it since your meter was spinning backwards.
- Then after the sun sets your home or business starts to draw energy back from the grid and the meter spins forward, indicating you are taking power back from the Utility.
- With this system of spinning the electric meter forwards and backwards the consumer can avoid buying costly batteries and in essence is using the utility grid as an inexpensive limitless battery.
- No money ever trades hands as the credits one accrues stay on paper as a solar bank to be drawn from in low production, off peak months.
- If we did our job right in designing your Photovoltaic system the amount the meters spins backwards in a year equals the amount it spins forward in a year and you never have to actually buy electricity again.
- Each late spring/early summer you would automatically fill your solar bank with unused electricity credits and then each winter draw it down to near zero.
- Batteries can be added if a customer desires the ability to have back-up power during grid outages or as a means to reduce peak demand charges.
- Electric cars can also be charged for free from a Photovoltaic system. On average all that is needed is 5 to 7 extra solar panels and an EV charge controller with a plug.
FAQs
What kind of solar panels do you use?
Unlike some of our competitors who warehouse solar panels and thus need to motivate you to buy what they have in stock, not necessarily what is best for your needs, we are not locked in with just one kind of solar panel. We use several manufacturers and different efficiency levels to customize your design to best match panel efficiency and price to meet your needs. It all depends on the size and details of your installation as to what we recommend not what product we need to move out of the warehouse.
How does the Federal Tax Credit work?
In October 2008 the US Congress passed HR 1424. This law increased the tax credit for installation of renewable energy systems. Currently that credit is at 26% of the total cost of the project.
How does the Xcel rebate work?
Xcel Rebate – To offset the carbon tax Utilities incur for burning coal to make electricity they will buy the Renewable Energy Credits (REC) from the solar consumer and give a rebate per-kilo-watt/hour you produce for the next 20 years. At present it is half a penny per kWh. In return you sign a contract with the utility agreeing to stay on the grid for 20 years and allowing them to use your carbon credits.
How is Electric pricing set – The Colorado Public Utility Commission (PUC) authorizes electricity rate increase requests of the private/public utility companies. For 2020, Xcel charged a residential retail rate for electricity of .13c/kWatt-hour. Historically the cost of electricity has inflated faster than the general inflation rates every year, for an average of 5% annually.