The concept of solar grid parity was only a dream when photovoltaic power first became available decades ago. Today, the dream of solar energy costs equaling or even beating the costs of traditional electricity has become a reality.
According to the latest U.S. Residential Solar Economic Outlook report by Greentech Media (GTM) Research, a total of 42 states are expected to reach the point of parity within the next four years.
Will your state be one of them?
Grid parity occurs when the cost of adopting solar decreases at the same time as the retail rates for traditional energy sources increase. Eventually, they equalize — or solar becomes cheaper.
For 20 states, rooftop solar has already reached or exceeded the point of parity.
Missouri, Minnesota, Utah, Rhode Island, Colorado and Maryland barely squeak by, just meeting parity with the electrical grid by a small percentage. Louisiana and Connecticut solar customers are a bit better off than power company customers in those states, seeing bills of about 10 percent less than traditional electricity in their first year after going solar.
In several states — Arizona, Vermont, New Mexico, New York, Delaware, New Hampshire, South Carolina and Washington, D.C. — first-year solar customers are averaging electrical bills of roughly 18 to 20 percent less than traditional electricity.
Massachusetts, Hawaii and New Jersey customers see savings of about 22 percent in their first year. Californians with photovoltaic systems benefit the most, however — their first year bills are nearly 40 percent less than average electrical bills.
The GTM report reveals that the rest of the states are likely to reach the parity point by 2020, assuming business as usual.
Some states are reevaluating their net metering rules and rates. However, the GTM report asserts that — even with net metering changes — the continued favorable costs of photovoltaic modules and increasing costs of other energy sources are likely to be enough to achieve country-wide parity by 2020.
So, which states may not make the cut? According to the GTM report, the worst states for solar include North Dakota, Oklahoma, Washington, West Virginia, Alaska, Montana and Nebraska.
In the Intermountain West, many of our local service areas have reached — or are rapidly approaching — grid parity. So if the cost of solar energy will be equal to or less than what you’re paying now to the power company, it’s hard to argue with this persuasive data. When you consider the energy independence you will gain as a result, we think the answer is clear.
Contact Intermountain Wind & Solar today, to learn more about the potential cost benefits for your location. We look forward to helping you understand how much you can save, whether you achieve solar grid parity this year or in the future.
For the solar energy industry, the sun is shining brighter than ever this year.
Research analysts have many theories about the future of photovoltaic power in the United States, but one thing is clear — the outlook is bright indeed.
Solar experts have forecast three important trends for 2016.
Solar energy installations reached an all-time high in 2015, with 7.3 gigawatts in new residential and commercial deployments.
This brought the total capacity of the U.S. market up to 27 gigawatts. Photovoltaic power also accounted for more new electric generating capacity installed last year, beating the total of natural gas for the first time.
Industry analysts from Greentech Media, a clean energy research organization, expect that 2016 will be another banner year for solar power. Near the end of February, the country’s millionth photovoltaic installation came online, and experts predict that a record-breaking 16 gigawatts of PV power will be installed this year.
The Solar Energy Industries Association (SEIA) is optimistic that this growth will continue and anticipates that the country will reach 2 million installations within the next two years.
Over the past few years, hardware costs for photovoltaic systems have dropped significantly. In fact, experts agree that, although equipment costs could fall further, the potential for lower costs in the future aren’t enough to offset the tax credit and incentives that are available today.
This favorable pricing structure, along with growing concern about the U.S. power grid and its failing infrastructure, has significantly increased the interest in stand-alone PV solar systems with backup batteries for power storage.
Photovoltaic industry experts believe that off-grid solar energy system installations will skyrocket this year, as customers race to take advantage of the federal tax credit and other local incentives and rebates.
As the interest in true energy independence continues to grow, the off-grid model of photovoltaic power will become even more popular in the coming years.
The latest 50 States of Solar report issued by the N.C. Clean Energy Technology Center revealed that 42 states studied or made changes to their net metering policies in 2015. As the utility companies are forced to adjust to the continued sector growth, more policy changes are likely in 2016.
What kinds of changes are expected? Industry analysts believe we will see many types of rate design reform, including lower net metering rates, time-of-use schedules for solar customers, net metering aggregation and policies that address grandfathering existing customers.
These continuing developments point to the undeniable fact that now is the time to make your move to the energy independence and significant cost savings that solar energy provides.
Intermountain Wind & Solar is the leading photovoltaic sales, service and installation expert in the Intermountain West. Contact us today to learn more about how you can benefit from a grid-tied or off-grid solar energy system.
The recent changes in Nevada’s net metering policy have led to many heated debates and protests across the state. Now — following the class-action lawsuit filed against NV Energy — the battle is once again headed to the courts.
The Alliance for Solar Choice (TASC) has filed a lawsuit against the Nevada state Public Utilities Commission (PUC), seeking to overturn the new decisions.
In late December 2015, the PUC unanimously approved several revisions to the state’s net metering regulations.
The monthly fixed charge for solar customers was set to increase from $12.75 to $38.51. The increase was to take effect over four years, but the Nevada commission voted in February to extend the timeline to 12 years.
The rate for excess electricity individual solar users send to the grid also changed with the new policy. Solar customers will no longer get the full rate. The PUC decided that they will now be compensated at the wholesale rate, which is only about a third of the previous retail rate.
The increased monthly fixed charge and decreased rates don’t just apply to new solar customers; existing customers also are affected.
A grandfather clause to exempt existing customers from the changes was proposed to the commission, but the PUC refused to approve the provision in February. This is a first for the United States, as no other state has decided against a grandfathering provision.
As a result of the new policies, the Nevada solar industry has regressed.
Photovoltaic companies are seeing less interest in solar energy, and many high-profile industry members have stopped operating in the state. Hundreds of jobs have already been lost, at a time when thousands of solar jobs are being created in many other states.
So how does this all add up to a lawsuit?
TASC alleges that the rate changes and lack of a grandfather clause benefit the utility company, NV Energy, at the expense of solar companies and their customers. TASC believes that the new guidelines will kill the solar industry in Nevada.
Nevada has laws that are intended to encourage renewable energy and stimulate economic growth in the state. According to the TASC, the decisions of the PUC defy these state laws and do not support the diversification of energy resources.
Intermountain Wind & Solar serves customers in Nevada, as well as Utah, Wyoming, Idaho and Colorado. We understand the ramifications that this and related decisions bring to our industry and our customers. Rest assured that we continue to closely monitor all important developments, and always strive to bring you the most up-to-date information on developments in the solar energy industry, including changes in net metering policies.
Although you may not hear solar power mentioned as often as immigration, gun control and the federal debt, alternative energy issues have sparked a great deal of debate among the 2016 presidential candidates.
In fact, political scholars believe that solar power may exert quite an effect on the upcoming election cycle.
In March, The Alliance for Solar Choice (TASC) commissioned a national public opinion research firm to conduct a poll among independent voters in the swing states.
You may be surprised by what they discovered.
TASC polled independent voters in 11 swing states: Colorado, Florida, Iowa, Maine, Missouri, Nevada, New Hampshire, North Carolina, Ohio, Virginia and Wisconsin.
Those polled were overwhelmingly in favor of increasing the use of photovoltaic power.
Nearly 90 percent of those polled agreed that homeowners should have the choice of adopting solar energy, and that the country would benefit from job growth in the alternative energy industry.
A whopping 77 percent agreed that industry growth will help keep electric rates down for consumers. Only a small number of the voters polled — just 6 percent — were against increasing solar power for the purpose of competition in the electricity market and creating new jobs.
According to TASC, the poll results indicate that solar power is an issue of key importance to independent voters in the upcoming elections.
The Democratic presidential candidates are supportive of photovoltaic power. Hillary Clinton wants the United States to become a clean energy superpower, with more than 500 million solar panels providing electricity. Bernie Sanders is also a strong advocate and believes that the country needs to rely less on fossil fuels and invest more heavily in renewable energy.
Donald Trump has been very vocal against renewable energy and has said that solar technology is unproven.
Those interested in the financial savings and energy independence that solar power provides may have to let their voices be heard in the voting booth, at local, state and federal levels.
So who will the independent voters end up choosing in the election?
It might seem that most would vote on the Democrat side, as both Clinton and Sanders edged out Trump in this particular poll. But this isn’t a certainty. According to the TASC report, 27 percent of the independent voters polled would seriously consider switching their support to a Republican candidate if he showed more vocal support for solar energy.
Whatever the outcome of this year’s elections, the experienced professionals of Intermountain Wind & Solar will continue providing residential and commercial customers with the significant financial and energy independence benefits provided by alternative energy technologies.
Contact us today for your complimentary energy evaluation. You can protect your family and property through the political winds of change with your own solar power system.
How much energy could rooftop solar systems generate, if one were installed on every suitable building in the United States?
A new study from the National Renewable Energy Laboratory (NREL), a division of the U.S. Department of Energy, aims to answer this question.
Researchers used detailed light detection and ranging (LiDAR) along with data analysis and simulation tools to estimate the potential of rooftop photovoltaic power in 128 cities across the country. Their results — and what they could mean for the future of photovoltaic power — were quite impressive.
Back in 2008, when the NREL did its last analysis, researchers estimated that the capacity of rooftop solar across the country was 664 gigawatts (GW). The energy that photovoltaic power could produce was determined to be 800 terawatt hours (TWh).
This time around, the capacity of U.S. solar was found to be 1,118 GW, and the annual energy generation was calculated at 1,432 TWh. This amount of energy is equivalent to 39 percent of current electricity sales.
So why did the numbers nearly double?
According to the NREL, the tools used for the 2016 study were able to provide more accurate estimations of the number of buildings suitable for rooftop photovoltaic power. In addition, more buildings are being designed to potentially accommodate photovoltaic panel arrays.
The United States could produce 1,118 GW of energy if rooftop photovoltaic power were deployed on every suitable building. Would that be enough to meet the country’s peak demand?
The NREL says yes.
Currently, peak demand in the United States is between 700 and 800 GW. Just installing rooftop solar systems on small buildings could be enough to meet this demand. In fact, the study found that small buildings alone could accommodate 731 GW of solar capacity.
The NREL study only looks at rooftop solar, and only considers installations on suitable rooftops. The figures did not include any possible energy production from ground-mounted installations.
The study determined, for example, that only 26 percent of small buildings are suitable for rooftop deployment. What about the other 74 percent? While the rest might not be ideal locations for solar panels, systems placed on those rooftops could still contribute a significant amount of energy.
Ground-mounted photovoltaic power has immense potential that was not factored into the report. When you consider how much energy can be produced by just one field of solar panels, it’s easy to see that ground-mounted installations across the country could produce a significant percentage of our nation’s electricity.
At Intermountain Wind & Solar, we have known for many years that solar energy is the future of energy production, for individuals as well as businesses. From coast to coast, people are embracing the potential cost savings and energy independence photovoltaic solar offers.
We serve residential and commercial customers in Utah, Wyoming, Colorado, Idaho and Nevada. Contact us today to learn how to get in on the rooftop solar explosion.
Photovoltaic energy is far from new. In fact, according to the U.S. Department of
Energy, people have been using the sun’s power for thousands of years.
Technology has certainly improved from these early years, but photovoltaic solar power
really hasn’t been a competitive energy source — until now.
Energy experts believe that solar power has finally grown sufficiently to become a viable
challenge to conventional energy sources like coal, natural gas and electricity. These
same experts assure us that PV energy is absolutely the power of the future.
The photovoltaic industry has experienced an incredible surge of growth over the last
few years.
The latest US Solar Market Insight report from the Solar Energy Industries Association
(SEIA) indicates that photovoltaic energy systems totaling 7,260 megawatts of power
were installed in 2015. That’s up 16 percent over 2014. Most of this growth has been in
the residential sector, which had 66 percent more installations than last year. But
utility-based solar also had a record year, with growth of 6 percent.
Last year also marked another first for solar power.
Solar energy accounted for 29.4 percent of all new electric generating capacity
installations in the country. This is the first time that photovoltaic system installations
outpaced natural gas.
So why is photovoltaic energy growing by leaps and bounds?
Price is unquestionably the biggest factor. The SEIA research shows that overall system
costs continue to decrease. In 2015, prices fell by up to 17 percent, depending upon the
market segment. And this isn’t anything unusual — national average prices dropped by
up to 12 percent in 2014 and by up to 16.3 percent in 2013.
Adopting solar power has become much more affordable due in large part to the federal
tax credit available today. It provides a 30 percent credit for new photovoltaic energy
system installations, which can bring costs down by many thousands of dollars.
At the end of 2015, over 900,000 individual photovoltaic energy projects delivered
power across the country.
By this time next year, the United States will have well over 1 million solar installations.
Another 16 gigawatts of photovoltaic power are forecasted by SEIA to be added this
year, increasing the total by 120 percent.
As last year was the fourth consecutive year in which the residential market grew by
over 50 percent, this sector is expected to have another banner year. Significant growth
is also anticipated in the utility market — nearly triple the number of installations,
according to the report.
By 2021, more than half of all states are expected to produce more than 100 megawatts
of photovoltaic power annually throughout all sectors.
Experts agree, however, that pricing can’t fall too much farther than it already has. In
addition, the solar tax credit and many regional and local rebate programs are
scheduled to expire in next few years.
There is no time like the present to choose photovoltaic energy to power the future of
your home or business. Not only will you save money on power every month, you will
establish your own energy independence. As electric utility rates continue their
explosive trend upward, your savings will grow year after year.
Contact Intermountain Wind & Solar today to schedule a solar energy consultation.
Based in Northern Utah, we serve commercial and residential customers throughout the
Intermountain West region. We look forward to showing you how photovoltaic energy
can change your financial future.
If you have considered a solar energy system for your home or business, you’ve probably looked into photovoltaic pricing as well.
Energy experts recommend requesting estimates from at least a few installers. Before you speak to any solar contractors, however, it can be helpful to understand some basic facts about how photovoltaic systems are priced.
You will undoubtedly hear installers refer to the PPW, or price per watt, of photovoltaic systems. Here’s what you need to know.
The PPW for a solar energy system is typically based on the total cost. In other words, it should be a full package deal. Calculating the PPW in this manner is the standard for the solar industry.
Your solar energy system estimate may — or may not — have the various system costs broken down by categories, such as labor, materials, permits and financing. But all of these costs should be wrapped together for the total price per watt.
If they aren’t, you won’t be able to accurately compare price quotes among solar energy contractors.
To calculate the PPW, the installer will first add up all of the costs for the photovoltaic array to arrive at the gross price for the system. This figure is then divided by the number of watts of power that the system will provide.
But, since photovoltaic systems are measured in terms of kilowatts (kW), the array size must first be converted to watts. This is achieved by multiplying the number of kilowatts by 1,000.
Don’t worry if this sounds complicated. Give it a try. Consider a 5 kW solar panel system with a gross price of $18,000. First, multiply 5 by 1,000 to find out the number of watts, which is 5,000.
Now, take the gross price and divide by 5,000. This gives you a system cost of $3.60 per watt.
When you receive a solar energy system estimate, make sure that the installer uses the gross price for the system, not the net price. The net price is the total cost after federal, state and local tax credits and rebates have been applied.
Quotes that are based on the net price cannot be accurately compared to other PPW estimates.
System size has a big impact on the PPW.
Generally, the larger the photovoltaic array, the lower the PPW. Roof type is another factor involved in pricing, as installations on tile or steep roofs can increase system costs.
The different components to be used in the system also have an effect. Brand-name solar panels are more expensive than those from discount manufacturers, for example, and the type of inverter you choose can result in a price difference as well.
Before you consider the apparent bargain you get with discount components, however, be sure to carefully evaluate the product’s warranties, expected output over time and reliability. What may seem like a bargain today won’t do you much good if the panels fail early on in the system’s life, and the manufacturer is no longer around to honor the warranty.
Now that you have a better understanding of PPW, you’re ready to get some price quotes.
Start with an estimate from the professionals at Intermountain Wind & Solar. We are the Intermountain West region’s largest provider of alternative energy systems. Our bulk purchasing programs allow us to offer exceptional pricing for the high-quality, name-brand equipment you can rely on for decades to come.
Call us to schedule a consultation today and learn how much money a solar energy system can save you.
In most states, net metering policies allow businesses with solar energy systems to feed their excess electricity back to the utility grid. But these policies are not well-suited for many larger electric customers.
To rectify this problem, several states have now adopted a modification to their current aggregation policies. Here’s how it works.
Basic net metering policies require a photovoltaic array to be attached to the building or electric meter where the business wants to offset energy use costs. Also, each building or property area must be serviced by its own, separate solar array.
This means that businesses with numerous buildings or service areas must install multiple photovoltaic systems if they want to offset electricity use costs at multiple locations.
Aggregated net metering, also known as net energy metering aggregation (NEMA), allows a solar energy system to service multiple electric meters. In other words, a business can offset energy use costs at many buildings or service areas with a single photovoltaic array.
According to the latest 50 States of Solar report from the N.C. Clean Energy Technology Center, more than half of the states in the U.S. studied or made changes to their policies in 2015.
Even more are expected to consider reforms — such as net energy metering aggregation — in the upcoming year.
Currently, however, only 17 states have modified their energy policies to allow aggregation. Among the Intermountain West states that have done so are Colorado, Nevada and Utah.
As for Idaho and Wyoming, NEMA is not yet available to any sector of business there.
To qualify for NEMA, businesses must meet certain guidelines.
A single solar energy system can offset electricity use at multiple buildings and service areas, and the photovoltaic array does not need to be installed on the same property as the meters.
However, the sites serviced by the solar array must all be located on adjacent properties that are owned, rented or leased by the same utility customer. Property that is divided by a road is still considered to be adjacent, as long as the business has legal rights on both sides of the road.
Policies that allow aggregation also have limits on the size of eligible solar energy systems.
Most states cap the total generation capacity of a single photovoltaic array at one megawatt. Consequently, larger customers may still need to install more than one solar array, but they won’t need as many as they would have without NEMA.
Are you ready to start reaping the substantial financial benefits that solar energy can offer your business? Contact Intermountain Wind & Solar today for a comprehensive review of your company’s energy needs. We serve commercial customers throughout the Intermountain West region, including Nevada, Colorado, Utah, Idaho and Wyoming.
We look forward to showing you how much money you can save through aggregated net metering.
Photovoltaic energy modules have been steadily dropping in price for several years.
To make sure that hardware quality doesn’t slip along with the cost of solar energy components, the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) has finalized a new international standard for solar panel manufacturing.
This standard marks the culmination of five years of research and work by the NREL, in collaboration with the International Electrotechnical Commission (IEC) and the International PV Quality Assurance Task Force (PVQAT).
Consequently, photovoltaic manufacturers will soon be required to comply with the new regulations.
In preparing the new international photovoltaic energy standards, the NREL researched 50,000 photovoltaic systems, looking for quality issues.
They found that less than 1 percent of solar energy systems experienced hardware problems each year. In addition, only 0.1 percent of systems were affected by underperforming or damaged modules.
So, if photovoltaic modules are already this reliable, why create new manufacturing guidelines?
According to the NREL, roughly $100 billion is invested in solar energy every year. The standard was developed by the international solar industry to maintain the quality of that investment. As photovoltaic manufacturers follow the guidelines, then investors, utilities and consumers will gain confidence in solar energy and investment will continue.
The standard addresses three specific issues that can affect the quality and reliability of solar panels.
The new standards regulate durability testing for photovoltaic modules with various mounting configurations in different climates. Manufacturing consistency is also covered in the standard, with guidelines for factory inspections and quality assurance controls.
Finally, the standard contains directives on how to ensure that the solar energy system is fully functional after installation.
Once the international standard is formally adopted by the IEC, photovoltaic manufacturers will be required to follow the new rules.
Manufacturers will be required to identify any potential failure points for their solar panels, and then take any necessary steps to resolve those vulnerabilities. This may involve making changes at the design, production or application phases of manufacturing or in the delivery process.
Photovoltaic manufacturers also will be required to improve the traceability of their products throughout the entire supply chain, to better support recalls and warranty claims.
In addition, the standard mandates that photovoltaic energy manufacturers obtain IEC certification. As a part of this process, the PV manufacturers must implement an ongoing quality and reliability testing program to monitor solar panel performance. To ensure compliance with these regulations, regular factory audits will be completed.
Ultimately, the new NREL standards will result in an already-reliable technology becoming an even more consistent and worthwhile investment.
Intermountain Wind & Solar provides professional PV solar energy system installation to customers in Utah, Colorado, Wyoming, Nevada and Idaho. We offer our customers only the highest quality products, backed by extensive equipment and installation warranties.
Contact us today to learn more about how your home or business can benefit from photovoltaic energy.
If you plan to operate your home off-grid, then solar backup power will be necessary to ensure you have electricity whenever you need it.
As government entities and disaster preparedness experts well know, many factors threaten the U.S. power grid’s stability. And if the network (or even part of it) does go down, federal safety regulations require that grid-tied photovoltaic systems must be shut down too.
With the right off-grid solar backup system in place, however, you’ll never have to worry.
Whenever the municipal power system goes down (for any reason), a specific federal safety standard (UL-1741) requires that all grid-tied solar system inverters go dark as well. In fact, the utility company has access to a disconnect switch that is used to take your system offline.
The purpose of UL-1741 is that it protects the safety of line workers attempting to restore power during an outage. If a system remains online, it may send power back up the line, resulting in a serious accident.
With an off-grid system, however, your excess electricity is stored using your backup system, typically consisting of a battery bank and backup generator. But depending on your dedication to pure energy independence, the type of solar backup power system you select can vary.
The true definition of energy independence, a battery bank and generator system allows you to have an ongoing supply of electricity.
Depending on your goals, these solar backup systems can meet only your critical load needs or power your entire home. Generators can be outfitted with a transfer switch that monitors the ongoing flow of electricity, and kicks in instantly to avoid any break in your service.
This eliminates the need to fire up the system manually in order to switch power sources.
If you want the best of both worlds, then consider a hybrid approach rather than a purely off-grid solar power backup option.
The hybrid system complies with the UL-1741 restrictions through an AC-coupling switch that allows your panel array to remain tied to the power system when it’s live, but disconnect if power goes out for some reason.
During a power outage, a battery backup system feeds power to a secondary electrical panel system that is not tied to the grid. Like the free-standing approach, you can design your hybrid solar panel system to meet all of your electricity needs or to supply only basic emergency power.
Contact Intermountain Wind & Solar today to learn more about your backup options. We serve customers throughout the Intermountain West, in Utah, Wyoming, Idaho, Colorado and Nevada,
Whether you would like to explore a full system installation or add backup capacity to your existing photovoltaic array, we look forward to helping you save money and establish your energy independence with an off-grid solar power backup system.
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