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Q: How much does a solar energy system cost, and how much will I save on utility bills?
A: Some of the following documents are available as Adobe Acrobat PDFs. Download Acrobat Reader.
Unfortunately, there is no single or simple answer. But a solar rebate and other incentives can reduce the cost of a PV system. This cost depends on a number of factors, such as whether it is a stand-alone system or is integrated into the building design, the size of the system, and the particular system manufacturer, retailer, and installer. For solar water heaters and space heaters, you also have to consider the price of the fuel used to back up the system. In most cases, you would have to add the cost of natural gas or electricity to get a more accurate estimate of how much you can expect to pay for a solar energy system.
It is also difficult to say how much you will save with a solar energy system, because savings depend on how much you pay your utility for electricity or natural gas, and how much your utility will pay you for any excess power that you generate with your solar system. You can ask your solar system provider how much your new system will produce on an annual basis and compare that number to your annual electricity or hot water demand to get an idea of how much you will save.
Other Resources:
To learn more about solar energy, please visit our information portal.
To learn more about energy saving tips and renewable energy technologies, please visit U. S. Department of Energy's Energy Saver's Web site
To learn more about energy saving tips and renewable energy technologies, please visit U. S. Department of Energy's Energy Saver's Web site
To learn more about financial incentives in your area, please visit the Database of State Incentives for Renewable Energy (DSIRE) and contact your State's Energy Office . One caveat: any time you work with a contractor, it is wise to check references.
To find a solar energy system designer or installer in your area, please visit our solar yellow pages for a list of sources of solar professionals.
Consumer's Guide to Buying a Solar Electric System. September 1999. NREL. (PDF 704 KB).
The Florida Solar Energy Center provides information about solar energy system applications
Your U.S. Department of Energy (DOE) regional support office may be able to provide some guidance.
To learn more about the Million Solar Roofs Initiative, an effort to install one million solar energy system by 2010, please visit
To learn more about financing opportunities, please see The Borrower's Guide to Financing Solar Energy Systems: A Federal Overview. September 1998. (PDF 501KB).
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Q: Can I afford photovoltaics (PV)?
A: That depends. Generally, PV energy costs are higher than those of energy bought from your local utility. However, if you need power in an area not served by a utility, PV may be the most cost-effective option. All over the world, PV system installations are increasing. As more people learn about this versatile, clean power option, this trend will continue, bringing costs down and affordability up.
Most of us must consider our goals in light of our wants and needs when determining affordability. Availability is an important determinant, and it has a unique meaning for a PV system. This is because it depends not only on reliable equipment but on the level and consistency of sunshine, and the capabilities of the energy storage system, at your site.
Because the weather is unpredictable, designing a PV system to be available at all times and conditions is expensive and often unnecessary. PV systems with long-term availabilities greater than 95% are routinely achieved at half the cost or less of systems designed to be available 99.99% of the time. Designing for lower availabilities decreases the size of the PV array and batteries and saves many dollars.
Another way to resolve the cost and availability issue is to specify a hybrid system, which includes another energy source (usually one that runs on a fossil fuel such as propane). Although saving money is important, you'll want to acquire a safe system that will last 25 years or more. Quality may cost more initially, but it will save money in the long run.
Other Resources:
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Q: How do I find out about financial incentives such as rebates or tax credits in my home state?
A: Several resources are available to help you track down this information.
Other Resources: To learn more about financial incentives in your area, please visit the Database of State Incentives for Renewable Energy (DSIRE) and contact your State's Energy Office. One caveat: any time you work with a contractor, it is wise to check references.
Your U.S. Department of Energy (DOE) regional support office may also be able to provide guidance.
To find a solar energy system designer or installer in your area, please visit our solar yellow pages for a list of sources of solar professionals.
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Q: What resources, grants, loans, and other incentives are there for installing a PV system?
A: A variety of state and local incentives are available, as noted below.
Other Resources: To learn more about energy saving tips and renewable energy technologies, please visit U. S. Department of Energy's Energy Saver's Web site
To learn more about financial incentives in your area, please visit the Database of State Incentives for Renewable Energy (DSIRE) and contact your State's Energy Office . One caveat: any time you work with a contractor, it is wise to check references.
Your U.S. Department of Energy (DOE) regional support office may also be able to provide guidance.
To learn more about the Million Solar Roofs Initiative, an effort to install one million solar energy system by 2010.
To find a solar energy system designer or installer in your area, please visit our solar yellow pages for a list of sources of solar professionals.
To learn more about financing opportunities, please see The Borrower's Guide to Financing Solar Energy Systems: A Federal Overview. September 1998. (PDF 501 KB)
Download Acrobat Reader.
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Q: How can I start my own photovoltaic business?
A: We don't know of any publications that deal specifically with this topic. But you might want to contact the marketing department of the manufacturers of the types of PV products you're interested in, or search the Internet for relevant publications.
Training programs for solar installers are offered by several groups. A Sandia National Laboratories Web site lists many of them www.sandia.gov/pv/training.htm.
For more information about the tax credits, grants, and other incentives available in your area, check the national Database of State Incentives for Renewable Energy (DSIRE). DSIRE is a searchable online renewable energy database that includes state financial incentives, programs and regulatory policies, utility programs and incentives, solar programs in school, local government and community incentives, programs and policies that support renewable energy.
Other Resources: For more information about opportunities to work with DOE and its partners. See also your U.S. Department of Energy (DOE) regional support office . Please visit our education page to learn about adult education and career opportunities in solar energy.
To learn more about the Million Solar Roofs Initiative, an effort to install one million solar energy system by 2010.
To learn more about partnership opportunities with the National Renewable Energy Laboratory, please visit Applying Technologies to learn about partnership opportunities.
To learn more about partnership opportunities with Sandia National Laboratories.
Links to DOE sites that provide information about solar energy.
SEIA's home page provides access to a selection of information about solar energy companies.
To learn more about the training courses offered by Solar Energy International, write to:
PO Box 715
Carbondale, CO 81623-0715
970/963-8855, Fax: 970/963-8866
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Q: What is net metering? Is net metering available where I live and work?
A: Net metering is a policy that allows homeowners to receive the full retail value for the electricity that their solar energy system produces. The term net metering refers to the method of accounting for the photovoltaic (PV) system's electricity production. Net metering allows homeowners with PV systems to use any excess electricity they produce to offset their electric bill. As the homeowner's PV system produces electricity, the kilowatts are first used for any electric appliances in the home. If the PV system produces more electricity than the homeowner needs, the extra kilowatts are fed into the utility grid.
Currently, more than 30 states have metering programs across the United States. To find out more about the programs in specific states, please check our National Database of State Incentives for Renewable Energy (DSIRE).
Other Resources: To learn more about net metering, please visit our PV in Use page.
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Q: What is the energy payback period for photovoltaics (PV)?
A: Some of the following documents are available as Adobe Acrobat PDFs. Download Acrobat Reader.
Typically, the energy payback time (i.e., the time it takes for a PV system to generate the same amount of energy that it took to manufacture the system) for PV systems is 2 to 5 years. Since a well-designed and maintained PV system will operate for more than 20 years, and a system without moving parts will operate for close to 30 years, PV systems produce far more energy over their useful life than we use to manufacture them.
Other Resources: To learn more about other benefits and paybacks of PV, please visit Why PV is Important.
See also:
National Renewable Energy Laboratory. Energy Payback: Clean Energy from PV. 1999. (PDF 74 KB).
An Empirical Perspective on the Energy Payback Time for Photovoltaic Modules. By Karl E. Knapp, Energy & Environmental Economics, Inc., and Theresa L. Jester, Siemens Solar Industries, presented at the American Solar Energy Society Annual Meeting in Madison, Wisconsin. June 16-21, 2000.(PDF 53 KB).
Numerous papers that have been written about energy payback times for PV systems.
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Q: What is an average break-even point for a solar energy system?
A: Some of the following documents are available as Adobe Acrobat PDFs. Download Acrobat Reader.
It depends. The break-even point for a system depends on financing and incentives, which vary from place to place, and it depends on your solar resources and what you would pay for another source of energy. A system designer that has information about your location, the amount of energy you typically use, how much land or roof area you have for the system, etc., could give you a more accurate answer.
You can obtain a very good estimate by contacting a reputable system designer or installer.
Other Resources: Consumer's Guide to Buying a Solar Electric System. September 1999. (PDF 704 KB).
Photovoltaics and Commercial Buildings - A Natural Match: A study highlights opportunities and locations for using photovoltaics to power businesses. September 1998. NREL. (PDF 210 KB).
To find a solar energy system designer or installer in your area, please visit our solar yellow pages for a list of sources of solar professionals.
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Q: How can federal facilities make the economics of solar work for them, given the long payback period? Are there financial incentives available to help them pay for solar roofs?
A: Solar energy systems meet federal life-cycle cost requirements in situations where they are providing high-value power or where the cost of alternatives is high. All costs must be considered in comparing solar to other options, however. For remote systems, the government considers the cost of transporting fuel to a site, and the risk and cost of fuel spills during transit or storage. Solar energy is often the least-cost alternative when a project involves building an electricity distribution line. The Federal Energy Management Program (FEMP) has many examples of cost-effective solar installations on its Web site.
Federal facilities may also qualify for state or utility incentive programs for using renewable energy. In Hawaii, the Coast Guard and the Navy have used a utility rebate to buy down the cost of thousands of solar hot water systems. Check the DSIRE Web site for more information about state incentives for renewable energy.
Direct financial support for federal renewable energy projects depends on appropriations. When grants are available, FEMP usually announces them on its Web site or in its newsletter for federal energy managers.
A wide variety of resources are available through DOE FEMP to assist federal agencies in financing solar energy projects. Funding options available for federal projects include the following:
Direct Appropriations – These allow the federal government to retain all of the savings from cost-effective renovations and to avoid incurring interest charges. This method also enables agencies to implement energy efficient projects with minimal contractual obligations.
Energy Saving Performance Contracts (ESPCs) – Here, federal facilities enter into contracts with energy service companies that assume the capital costs of installing energy and water conservation equipment and renewable energy systems in federal facilities; companies are repaid out of the agency's guaranteed energy cost savings over the term of the contract.
Super Energy Saving Performance Contracts (Super ESPC's) – These were developed to make the ESPC process easier. Super ESPC contracts are based on the indefinite delivery, indefinite quantity provision of the Federal Acquisition Regulation.
Utility Incentives – These allow federal facilities to participate in utility incentive programs to finance projects.
Other Resources: To learn more about the Federal Energy Management Program (FEMP).
To learn more about FEMP's Renewable Energy Program.
To learn more about financing alternatives available to federal agencies though FEMP
To learn more about financing options available to federal agencies interested in participating in energy efficiency and renewable energy projects
FEMP's bimonthly newsletter, FEMP Focus
U.S. Department of Commerce. Energy Price Indices and Discount Factors for Life-Cycle Cost Analysis — April 2003 (NISTIR 85-3273-18). This document can be downloaded from the National Institute of Standard and Technology Website (PDF 330 KB).
Download Acrobat Reader.
NREL. A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies. March 1995. You can order this publication through NTIS using the order number DE95000211INZ.
To order: or sales Desk: 1-800-553-6847 or (703) 605-6000 / 8 a.m. – 6 p.m.; EST, Mon-Fri. The publication costs $36.50.
Call the FEMP Help Desk for more information: 1-800-363-3732.
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