Solar Panel ROI: SRECs, Net Metering, Property Factors
In part one of this multi-part blog series, we went over some basics on how to determine your expected return on investment (ROI) for a solar panel installation. These installations often bring fantastic return in addition to helping you become more environmentally conscious in your energy usage, and this is a big factor for home and property owners as they consider their installation needs.
At Intermountain Wind & Solar, we’re happy to help with ROI and numerous related factors for any of our commercial or residential solar panel installations, featuring the Tesla Powerwall. We’ll assist you with comparing your expected solar energy rates to prior rates, plus help you note all the important factors that may play a role in your ROI bottom line. Today’s part two of our series will look into several other major variables that impact solar ROI, including some that may benefit others in your area and not just your own property.
We went over various solar incentives in part one, and SRECs – short for Solar Renewable Energy Certificates – are one group here that deserves their own section. These are state-level or even utility company-level programs present in many states, which require some percentage of their electrical power to come from solar (these numbers are increasing in many states).
SRECs, then, are certificates given to property owners who have solar systems. Each certificate represents 1 megawatt hour (MWh) of electricity production. These certificates can be sold to utilities that must source certain amounts of power from solar generation – the utility then surrenders those SRECs to meet clean power obligations in their area. Inquire with our team about the SRECs you might qualify for.
In many areas, a program called net metering will be available – this is a similar program to SRECs, and may even be combined with it in many cases. In situations where your solar panels are actually generating more power than your property requires, net metering allows you to feed that power back into the local grid for others to use, often for a return of credits like SRECs. This can be a major factor in improving your solar ROI.
Property Factors and Efficiency
Another major element in determining solar ROI is simply how efficiently the technology functions on your property. Some of this traces back to features of your property – does it get plenty of sun facing in the proper direction? Is the roof sloped well for UV ray intake? Are there shade elements or other blockers for parts of the day? These will all play a role in how well the system does.
In addition, the actual tech itself is important. We only install the latest and best in solar technology, ensuring your system functions at peak efficiency and will offset the highest possible percentage of your monthly energy needs.
For more on how to determine solar panel payback period and ROI, or to learn about any of our solar panel installation programs, speak to the staff at Intermountain Wind & Solar today.