Solar panels convert sunlight into electricity using photovoltaic (PV) cells. When sunlight hits a PV cell, it generates an electrical current. This DC (Direct Current) electricity is then converted to AC (Alternating Current) electricity through an inverter, powering your home or business.

A kilowatt-hour (kWh) is a unit of energy commonly used to measure electricity consumption. It represents the amount of energy used if you have a device with a power rating of one kilowatt (1 kW) running for one hour. For example, if you have a 1,000-watt (1 kW) appliance running for an hour, it consumes 1 kWh of energy.

In practical terms, kWh is often seen on electricity bills and helps you understand how much energy you’re using over a billing period.

Net metering is a billing arrangement that allows homeowners and businesses with solar panels or other renewable energy systems to use the electricity they generate and feed any excess back into the grid. Here’s how it works:

1. Generation and Consumption: When your renewable energy system generates more electricity than you need, the excess energy flows back to the grid. When your system isn’t generating enough energy (like at night or on cloudy days), you draw electricity from the grid.

2. Metering: Your electric meter measures the electricity you draw from the grid and the electricity you feed back into it. With net metering, your meter tracks the net amount of electricity used over a billing period.

3. Billing: You are typically billed only for the net amount of electricity you use. For example, if you generate 500 kWh of electricity and use 300 kWh from the grid, you would pay for the net 200 kWh.

Net metering can reduce your electricity bills and is an incentive for investing in renewable energy systems. The specifics of net metering policies can vary depending on the location and the utility company.

Capstone partners with Puget Sound Cooperative Credit Union, and Concert Financing / Greentech Renewables to offer you the most competitive low-interest financing options available for Solar Panels. Additional assistance may be available through Olympia Community Solar.

The payback period for solar panels in the Pacific Northwest generally ranges from 8 to 12 years. However, this can vary based on several factors:

1. System Cost: The upfront cost of installing solar panels, which includes equipment, installation, and any necessary permits or fees.
2. Incentives and Rebates: Federal, state, or local incentives can significantly reduce the initial cost. For instance, the Federal Investment Tax Credit (ITC) offers a substantial tax credit, and some states or utilities have additional rebates.
3. Energy Savings: How much you save on your electricity bill depends on the size of your solar system, your energy consumption, and the amount of sunlight your location receives.
4. Electricity Rates: Higher electricity rates can shorten the payback period, as you save more on your energy bills.
5. Weather and Sunlight: The amount of sunlight and the efficiency of your solar panels will affect how much energy you can generate. The Pacific Northwest has less sunlight compared to other regions, which may impact the system’s overall performance and payback period.
6. Net Metering: The availability and terms of net metering policies in your area can also influence the payback period.

Given the Pacific Northwest’s relatively lower solar irradiance compared to sunnier regions, the payback period might be longer, but the savings from reduced energy bills and available incentives still make solar panels a worthwhile investment. It’s always a good idea to get a detailed analysis from a local solar provider to understand your specific situation.

When considering solar panels for your home, the type, angle, and age of your roof can all influence the feasibility and effectiveness of the installation. Here’s how each factor impacts your solar panel installation:

1. Roof Type:

Material: Different roofing materials affect the installation process. Asphalt shingles are the most common and generally easiest for solar installations. Metal roofs can be advantageous because they are durable and often easier to mount solar panels on, but they require special mounting techniques. Tile roofs (like clay or concrete) can be more challenging and may require additional mounting hardware to avoid damage.

Structure: The structural integrity of your roof is crucial. Solar panels require a stable and secure mounting surface. If your roof is in poor condition, it may need repairs or reinforcement before installation.

2. Roof Angle (Pitch):

Optimal Angle: Solar panels are generally most effective when installed at an angle that allows them to capture maximum sunlight. In the Northern Hemisphere, a pitch that faces south is typically ideal. However, panels can still be effective at various angles, as long as they are installed with the proper tilt to capture the most sunlight throughout the year.

Flat Roofs: If you have a flat roof, solar panels can be installed using a racking system that angles them toward the sun. This can often be customized to achieve optimal performance based on local solar conditions.

3. Roof Age:

Condition: A roof that is nearing the end of its lifespan might require replacement before installing solar panels. It’s generally more cost-effective to replace an old roof before installing solar panels, as removing and reinstalling panels during a roof replacement can be cumbersome and costly.

Warranty: Consider that solar panels usually come with a long warranty (typically 25 years), so it makes sense to have a roof that will last as long as or longer than the panels to avoid future issues.

Before moving forward with solar panels, it’s advisable to have a professional solar installer assess your roof. They can provide recommendations tailored to your specific roof type, angle, and condition, ensuring that you maximize the benefits of your solar system.

When evaluating the cost of installing solar panels, it’s important to distinguish between the total cost and the net cost. Here’s a breakdown of each:

Total Cost

The total cost is the overall amount you would p ay to install a solar panel system before any deductions or incentives. It includes:

• Equipment Costs: The cost of solar panels, inverters, mounting hardware, and any other necessary components.
• Installation Costs: Labor charges for installation, including any structural modifications needed.
• Permitting and Inspection Fees: Costs associated with obtaining necessary permits and having the system inspected.
• Additional Costs: Any potential costs for roof repairs or upgrades, electrical system upgrades, or other ancillary expenses.

Net Cost

The net cost is the amount you actually end up paying out of pocket after applying any incentives, rebates, and tax credits. It is the total cost minus:

• Federal Tax Credits: For example, the Federal Investment Tax Credit (ITC) allows you to deduct a significant percentage of the cost of installing a solar energy system from your federal taxes.
• State or Local Incentives: These might include rebates, grants, or tax credits provided by your state or local government.
• Utility Company Rebates: Some utility companies offer incentives or rebates for installing solar panels.
• Other Financial Assistance: This could include solar loans, leases, or power purchase agreements (PPAs) that reduce upfront costs.

Example:

1. Total Cost: Suppose the total cost of installing a solar system is $20,000.
2. Incentives and Rebates:
   • Federal Tax Credit (e.g., 30%): $6,000
   • State Rebate: $1,000
   • Utility Rebate: $500
     Total Incentives: $7,500
3. Net Cost: $20,000 (Total Cost) – $7,500 (Incentives) = $12,500 (Net Cost)

The net cost is the amount you would need to finance or pay out of pocket after accounting for all available financial incentives. Understanding both the total and net costs helps you gauge the actual financial impact of going solar and assess the return on investment more accurately.

In Oregon and Washington, several grants, credits, and rebates can help reduce the cost of installing solar panels. These incentives can vary over time, so it’s essential to check the latest details or consult with a local solar provider for the most current information. Here’s an overview of the available incentives as of the latest updates:

Washington

1. Federal Investment Tax Credit (ITC):

   • Description: Allows you to deduct 30% of the cost of installing a solar energy system from your federal taxes.
   • Eligibility: Available to all U.S. taxpayers who install solar systems.
     
     

2. Washington State Solar Incentives:

   • Renewable Energy System Cost Recovery Program: Previously provided incentives for solar energy systems, but this program ended in 2020. Existing installations may still benefit from previous agreements.
   • Eligibility: Was available for systems installed before the end of the program.
     
     

3. Washington State Sales Tax Exemption:

   • Description: Exempts the purchase and installation of solar panels and related equipment from state sales tax.
   • Eligibility: Available for all residential and commercial installations.
     
     

4. Net Metering:

   • Description: Allows you to receive credits for excess solar power you send back to the grid, which offsets the cost of the electricity you draw from the grid when your solar system isn’t producing enough power.
   • Eligibility: Available to all customers with solar panels who meet the utility’s requirements.
     
     

5. Local Utility Incentives:

   • Description: Some local utilities may offer their own rebates or incentives for solar installations.
   • Eligibility: Varies by utility company.
     
     

Oregon

1. Federal Investment Tax Credit (ITC):

   • Description: Allows you to deduct 30% of the cost of installing a solar energy system from your federal taxes.
   • Eligibility: Available to all U.S. taxpayers who install solar systems.
     
     

2. Oregon Residential Energy Tax Credit:

   • Description: Provides a tax credit for residential solar installations. Note that this program was discontinued for new applications in 2017, but existing credits might still apply if you qualified before the cutoff.
   • Eligibility: For homeowners who applied before the program closed.
     
     

3. Energy Trust of Oregon:

   • Description: Offers cash incentives for residential solar installations in certain areas served by Pacific Power, PGE, or NW Natural.
   • Eligibility: Available to residential customers in specified service areas.
     
     

4. Oregon Solar + Storage Rebate Program:

   • Description: Offers rebates for both solar panels and energy storage systems.
   • Eligibility: Available for residential customers meeting specific income qualifications and other requirements.
     
     

5. Property Tax Exemption:

   • Description: Solar systems are exempt from additional property taxes, meaning you won’t see an increase in property taxes due to the installation of solar panels.
   • Eligibility: Available to all property owners who install solar systems.