FAQ

FAQ
FAQ

Commercial & Residential Solar

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MORE INFORMATION

Frequently
Asked Questions

We’ve been installing solar panels on residential and commercial roofs since 2010 and we love to meet new customers and help them with custom solar solutions.

Q. What tax incentives are currently available for solar?

Contact us and we’ll help you determine the current incentives. The solar panel tax credit allows filers to take a tax credit equal to up to 30% of eligible costs. There is no income limit to qualify, and you can claim the credit each year you’re eligible for it. The credit amount will remain 30% through 2032. The tax credit works as a “gift card” against what you owe in taxes for the year so it’s important to recognize that this is not a check you receive from the government for installing solar and batteries.  You, as an individual or business entity, need to have a tax liability to benefit from the tax credit. Beginning in 2024, Nonprofit organizations are also eligible for a “direct pay” tax credit if they install solar or batteries. Previously, nonprofits were not allowed a solar tax credit because they do not typically pay income taxes. There is also a State-based incentive for batteries called SGIP (Self Generation Incentive Program). The amount of incentive fluctuates based on battery size, zip code, peak demand, income level, fire zone, etc.

NOTE: HPM Solar urges you to consult with your CPA or tax advisor to determine if you will qualify and benefit from any and all incentives.

Q. What size solar system do I need?

This is based on your monthly utility bills, daily consumption behavior, long-term energy goals, and budget. Higher electricity consumers will typically see a faster payback on solar. We recommend that you maximize the sunniest roof areas with a goal of off-setting as much electricity consumption as possible. These days a battery might be required to maximize the short and long-term benefits.  Batteries also help to mitigate the impact “TIME OF USE” rates and will allow for consistent electricity in the future. You should consider long-term goals such as the possibility of investing in an electric car and powering your daily commute with the sun. Note that solar companies typically quote system size in DC (kilowatts “kW”) but this gets converted to AC through the inverter equipment. Note that now under NEM 3.0, batteries are typically required to maximize the solar investment.

Q. How many kwH/year will 1Kw produce?

A good rule of thumb is that in So. California, you can safely assume that 1kW (DC) installed in a non-shaded area will produce approximately 1600kWh per year or (133 kwh per month).

Q. Should I install a backup battery system?

Battery backup systems are becoming increasingly popular but they are still an expensive investment. Unless you want to go 100% off-grid or you expect multi-day power outages, the return on investment doesn’t pan out for most customers. Batteries are becoming more important as local utilities implement TOU (Time of Use) rates where energy becomes more expensive in the afternoon and evening when most people come home from work and run appliances and AC. In this case, storing the solar in batteries for “Peak shaving” and evening usage might be very beneficial as a way to maximize ROI and payback.

Q. Can I sell excess energy back to the utility?

Yes, this is called NET METERING. It’s not ideal though. Your best bet is to properly size the system so that YOU USE what you PRODUCE. For example, you will want to store excess energy in a battery and consume the stored energy at night or on cloudy days when the solar panels are not meeting your consumption needs. NOTE: that under NEM 3.0, if you sell the excess electricity, the utility buys it from you at the “avoided cost” rate even though you pay the full retail rate.

Q. Is any maintenance required?

No. No moving parts. It’s wise to spray the modules with a hose every couple of months or more often in dusty areas.

Q. Who handles the permits and rebates?

The installer (HPM Solar)

Q. How long will my solar system last?

25 Year warranty on the solar panels (i.e. solar modules). 25 years with microinverters. If you go with a string inverter, the warranty is shorter (about 10 to 12 years) but it can be extended to 25 years at a reasonable cost.

Q. Will surrounding trees be an issue?

It depends. If the array is facing south or west, then any trees to the North will not be an issue. A rule of thumb is that any obstacle will produce a shadow twice its height. You want to avoid areas that will shade the modules between 10am and 3pm. Microinverters can help deal with shading issues because , unlike typical string inverters, instead of the entire array going out, only the affected module will be impacted by shade.

Q. How much roof space will my system need?

A rule of thumb is that every 1,000 Watts of solar modules will require 100 sq ft of roof space. Since most systems range between 2,000W to 6,000W the roof space required will range from 200 sq ft to 600 sq ft.

Q. Will solar increase my property value?

Yes. According to real estate appraisers, for every $1 of electricity that you offset through solar, it will increase the value of your home by $20. This means that your home would increase in value immediately by about the total net cost of the system after rebates.