Commercial Grid-Connected Solar Electric Power Systems For Businesses, Interconnection

Commercial Grid-Connected Solar Electric Power System FAQ Page
Frequently Asked Questions and Topics

Return on Investment :
No matter what size system you buy, or what percentage of your electric usage you offset, your, "pay back," period will be the relatively the same. It is all a matter of how much you can invest to hedge against rising energy costs. Once your system is "paid back," you have $0 invested in your system, and a percentage of your electricity bill eliminated for decades. The payback period is determined by a number of factors, including the technical difficulty of the installation, the utility credit purchase payments, and your utility rate plan.

Time	Source	ROI	Cumulative ROI
Typically upon system activation however may be a performance based incentive (PBI) paid over time.	Utility credit purchase payment: Typically utility commercial customers can receive a rebate of some dollar ($) amount for each watt of rated solar power (DC watts) installed in a grid-tied application. Utility credit purchase payments for most Arizona public utilities vary are $2.50/watt, and are subject to change (usually on an annual basis).	30%*	30%
1st Year	Federal Tax Credit: A 30% federal energy tax credit is currently available to businesses that invest in or purchase solar or geothermal energy property in the United States. The Energy Policy Act of 2005 (H.R. 6)	30%	60%
5th Year	5-year Depreciation: Modified Accelerated Cost-Recovery System (MACRS)	~30%**	60-85%

NOT INCLUDING ENERGY SAVINGS!!!***

*based on APS/SRP credit purchase payments after taxes (credit purchase payments are taxable income),
a pre-rebate installed cost of $7.50 / watt, and 35% tax bracket
**based on 35% tax bracket
***varies depending on utility, rate plan, and demand, and increases with rates

What percentage of my bill can we eliminate?
It is possible to eliminate almost all of it! We cannot remove 100% of your electric bill, because you are billed for a monthly service fee and for demand in addition to your electric usage charges. Although a solar electric system may lower your demand charges, it will definitely lower your usage charges. How much of your usage we can reduce is dependent on how many panels you purchase, which is often dependent on how much unshaded roof space you have available on which to mount the panels. Assume 8 ft.² / $1 / month savings for most APS and SRP commercial rate plans for pitched roofs. Of note, depending on the nature of the commercial business, utility usage may vary by a considerable amount. Not unlike the sizing of a residential system, sizing commercial grid-tie systems begins with the same basic variables: Available unshaded roof space (during the peak sunlight hours of the day), a history of electricity usage of the commercial business and the amount of the investment that can be made.

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Publicity / PR
Now is an exciting time for the solar electric industry. These projects aren’t so new and experimental that they are difficult and costly, but are still new enough to generate public and media interest. American Solar Electric has enjoyed great success with our commercial customers in co-promoting the commercial business’ adoption of the technology.

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Batteries:
Batteries are not necessary for grid-tie systems, but are for off-grid systems. Batteries are necessary for storing electricity. Otherwise, any electricity not used by the business as it is produced is sold to the utility company at a rate specified by the utility company.

Batteries are expensive, and need to be replaced every 7-10 years, whether you use them or not.

Grid-tie systems with battery backup are the most complicated, expensive systems we offer, and are only recommended if frequent power-outages are a problem. Battery backup systems can be added to regular grid-tie systems at a later date, without affecting the cost significantly. The usual method of back-up power employed by commercial businesses is a generator, of which can be well integrated with the solar array.

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Maintenance:
Our Commercial Grid-Connected Solar Electric Power Systems are virtually maintenance free. Heavy dusting of the solar array can be eliminated by simply spraying down the panels with water (ideally in the early morning, late afternoon or evening).

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Warranty:
Kyocera Solar Systems
Kyocera Solar Panels come with a 20 year warranty on the power production of their panels. Because there are no moving parts, the only wear-and-tear these systems see is from daily sun exposure, year after year. This is factored into the 20-year warranty, which states that by the end of the twelfth year, the panels should still be producing at 90% of their initial capacity, and that by the end of the 20th year, they should still be producing at 80% of their rated power. If you notice an electric bill that seems higher than it should be, check your Sunny Beam remote display to check the history of electric production for your system. If you see a noticeable jump that doesn't seem weather related, call us. If you perceive something some other problem with your system, we will come out and check/test your system. If it turns out one or more of the solar panels is not performing to specs, we will coordinate with Kyocera to have them replace the defective panels for free. This warranty is standard for most manufacturers of silicon solar electric panels. Kyocera Solar Panel Warranty

The SMA America ‘Sunny Boy’ inverters that are paired with our Kyocera module based systems come with a 5-year warranty. Extended warranties of 5 years are also available for less than 10% of the cost of the inverter. SMA Inverter Warranty

Installation Warranty:
Our work is guaranteed for two years.

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Products:
Kyocera Solar Panels
Kyocera has been producing solar panels for over 30 years, and is the world’s second largest producer of solar electric panels in the world. Their size and experience allows them to sell quality panels at the best value ($/watt). Their products have been thoroughly tested in all climates in all parts of the world. They have a distribution warehouse in north Scottsdale, which allows us to get their product quickly, and at a good price. They are tested to withstand 1” hail. Kyocera 175GT Spec Sheet

SMA inverters
SMA is the world’s leading producer of solar grid-tie inverters. With more than 500,000 in the field, they have been very well tested and improved upon. German engineered, they have a 15-year average mean time between failures. Their size and experience allows them to sell rock-solid inverters at the best value. SMA Inverter Spec Sheet

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