What is the primary difference between a Power Purchase Agreement (PPA) and a Solar Lease for a homeowner?
Answer: In a PPA, the customer pays a fixed price per kilowatt-hour (kWh) for the electricity the system generates, similar to a utility bill. In a Solar Lease, the customer pays a fixed monthly amount for the use of the equipment, regardless of the system's production. Both mean the customer does not own the system.
What is the specific hardware component installed by the utility that makes net metering possible, and how does it function?
The required hardware is a Bi-Directional Meter (or Net Meter). It functions by measuring electricity flow in both directions: the energy pulled from the grid when the home needs it (import), and the excess solar energy pushed to the grid (export)
A leading North American solar module manufacturer is often highlighted for its "Made in the U.S. and Canada" advantage.
Silfabs
From an environmental perspective, solar energy is considered a clean source because it generates electricity without producing what type of harmful output, unlike fossil fuels?
Greenhouse gases (or Carbon Dioxide / $\text{CO}_2$).
Roof condition is a major factor. If a roof is determined to be too old or damaged, what is the most common solution recommended during the solar qualification process to ensure the longevity of the solar investment?
Roof Replacement (or installing a new roof) before the solar panels are mounted. This prevents the need to remove and reinstall the panels shortly after installation due to roof issues.
What is the current common name and percentage of the Federal Tax Credit available for homeowners who purchase a new solar system?
It is officially the Investment Tax Credit (ITC), and the current rate is 30% (as of this writing) of the system's total cost, applied as a dollar-for-dollar reduction in federal income taxes owed.
Under the most favorable, traditional Net Metering policy, what rate is the customer compensated for their excess electricity exported to the grid?
The excess energy is compensated at the Full Retail Rate (or 1-to-1 credit). This means one kilowatt-hour (kWh) exported is worth the exact same amount as one kWh imported, making the grid act as a perfect battery for energy banking.
A global energy solutions provider and a dominant player in the U.S. market holds the No. 1 market share position in the U.S. residential and commercial solar module segments for multiple consecutive years.
Q cells ( Hanwha )
Besides reducing electricity costs, what is a significant long-term financial benefit of solar ownership that relates directly to the value of your property?
It increases property value. Studies have shown homes with solar panels often sell faster and at a higher price than comparable homes without them.
When assessing a home's roof, what characteristic is crucial for maximizing solar production and often disqualifies a roof if it's excessive?
Shading (usually from trees or other buildings). Even small amounts of shading can significantly reduce the energy output of the entire system.
What is Net Metering and why is it important for a residential solar customer?
Net Metering is a billing mechanism that credits solar energy system owners for the electricity they add to the power grid. It is important because it allows homeowners to use the grid as a "bank" for excess energy generated during the day, which can then be used at night or when production is low, effectively reducing or eliminating their electricity bill.
How does a Net Billing (or Net Energy Metering 3.0) policy typically differ from traditional Net Metering in terms of compensation for exported power?
With Net Billing, the compensation for exported power is usually at the Wholesale Rate or an Avoided Cost Rate, which is lower than the Full Retail Rate the customer pays to buy power. This lowers the overall financial benefit for the customer compared to traditional Net Metering.
One of the world’s largest and oldest Tier 1 solar panel manufacturers, founded in 1997. Known for high power output and excellent value. A pioneer in large-format cells (210mm wafer) and high-power module designs, particularly the Vertex series.
Trina Solar
In the U.S., what is the name of the federal tax incentive that allows homeowners to claim a significant percentage of their solar installation cost as a deduction?
The Investment Tax Credit (ITC), also known as the Federal Solar Tax Credit.
Before a solar company can design a system, they need to look at the homeowner's past power usage. What document provides the necessary historical data on electricity consumption, measured in kilowatt-hours (kWh)?
The Utility Bill (or electric bill). This document shows the average monthly and annual kWh consumption.
What is the function of a Solar Inverter, and what two common types are most often used in residential installations?
The Solar Inverter is the critical component that converts the Direct Current (DC) electricity produced by the solar panels into Alternating Current (AC) electricity, which is the standard type used by household appliances and the electric grid. The two most common residential types are String Inverters and Microinverters.
What is the industry term for the annual process where the utility settles the customer's total year-long accumulation of net metering credits?
This process is called the Annual True-Up (or Settlement Date). On this date, any remaining accumulated Net Excess Generation (NEG) credits are typically either paid out to the customer at the lower wholesale rate or, in some policies, simply expire and reset to zero.
Recognized for innovative cell technology, including pioneering the half-cut cell design. Its premium line, the Alpha Pure series, uses Heterojunction (HJT) technology and features a gapless cell layout and a lead-free construction for superior performance and sustainability. Known for offering strong warranties, including a 25-year product and performance warranty on many premium lines.
REC Group
Solar energy contributes to the security and resilience of the electrical grid. What benefit does having a battery backup system alongside solar panels provide to a homeowner during a power outage?
It allows the homeowner to keep essential appliances running (like lights, refrigerators, and medical equipment) even when the main utility grid is down, providing energy independence and backup power.
For most residential solar systems, what is the ideal compass direction that the roof should face in the Northern Hemisphere to receive maximum sunlight exposure throughout the day?
Although Southwest and Southeast can also work well, a true South-facing roof provides the best overall sun exposure.
When an agent refers to "SRECs" or "RECs," what do these acronyms stand for, and what do they represent in the context of renewable energy compliance?
RECs stand for Renewable Energy Certificates.
SRECs stand for Solar Renewable Energy Certificates.
They are tradable commodities that represent the "renewable-ness" of the electricity generated. Utilities or other obligated parties buy them to meet state-mandated Renewable Portfolio Standards (RPS), helping to finance the cost of solar for the homeowner.
What is Virtual Net Metering (VNM), and for what type of customer is it most commonly used?
Virtual Net Metering allows the energy generated by a single solar array (like a community solar garden) to be credited across multiple different utility accounts. It is most commonly used for Community Solar projects, or for customers with multiple meters on a single property (like an apartment building or farm), even if the solar panels are not physically on their specific meter.
A global leader in module shipments, having been the first company to ship over 210 GW of solar modules worldwide.
Jinko Solar
One of the primary financial benefits of installing solar panels is the potential to reduce or eliminate monthly utility bills. What term is commonly used to describe the result of your solar system generating more electricity than your home consumes, causing your meter to run backward?
Net Metering (or Net Billing).
When assessing a home's roof, what characteristic is crucial for maximizing solar production and often disqualifies a roof if it's excessive?
The homeowner's Credit Score (or FICO score). Most solar financing requires a minimum score, often 650 or higher.