The ABCs of Solar Electricity
© Martin Webb 2006
A Ask a Professional: When seeking answers about going solar (what is the cost? will PG&E buy my solar
power?), know that some companies will send someone friendly and knowledgeable out to visit your property for free.

B Baselines & You: California uses an interesting system called tiered billing. Homes are assigned a “baseline”
amount of power, purchased at the cheapest rates. Going over the monthly baseline means paying higher rates.

C California is Different: With tiered rates and solar rebates, solar is very cost competitive. In California, solar
electricity costs as little as 20 cents/kWh while PG&E’s Tier 3 is 23 cents, Tier 4 is 32 cents and Tier 5 is 37
cents/kWh.

D Decisions to Think About: Do you need batteries for long black-outs or a home business? Is the best solar
location on the ground or on the roof? Do you plan on passing your property on to children?

E Environmental Benefits: Less carbon dioxide and mercury pollution from power plants means less global
warming, less autism and less asthma. Solar panels last for several decades and recoup the energy used to make them after 4 years of use.

F Federal Tax Credit: Currently only valid for systems installed in 2006 or 2007, the $2,000 residential federal
tax credit is applied to any federal taxes owed for the year of installation. Excess credit can be carried forward!

G Grid Connection: The common distribution network of utility power lines is referred to as the grid. Solar
systems connected to the grid have the benefit of not needing batteries for power supply whenever sunlight is locally unavailable.

H Homeowner’s Insurance: While not often talked about, a solar system should be added to an existing home
insurance policy, thereby providing coverage if a tree falls on a panel or a system is somehow damaged by nature.

I Instant Payback: Easy to acheive with systems that offset only the expensive PG&E tiers, this occurs when
equity is used to purchase a system and the monthly loan payments are less than the old monthly PG&E payments.

J Job Creation: Instead of mailing a check to an out-of-town utility, your energy dollars can go to local
workers in the growing solar industry, boosting the local economy and creating jobs for young adults in the community.

K Know the Procedure: How to Go Solar: 1. Site visit and design estimates. 2. Choose a system. 3. Sign
installation contract with 10% deposit. 4. Reserve a rebate. 5. Install system. 6. Claim the rebate. 7. Enjoy.

L Long Lifespan: The modern solar electric panel is just over 50 years old with original solar panels still
putting out 85% of what they were 50 years ago. Today’s warranties guarantee 80% output after 25 years!

M Motivations Dictate System Size: Inheritance properties may want to be 100% solar-powered to carry
through the decades ahead, while those just seeking a “zero bill” don’t need to be 100% solar-powered. If merely
chasing payback, shrink the size to shave off the expensive tiers on your bill.

N Net-metering: The legal term for hooking a solar system to a utility meter so that it spins backward, or at least forward at a slower rate. This means solar will be valued at full retail power prices.

O Off-grid Solar: This is a solar system that provides power independently and remotely from utility lines,
frequently with batteries and a generator for back-up. Not eligible for state rebates, but does qualify for the $2,000
federal tax credit.

P Payback Analysis: Payback measures the time it takes for the dollars you save to equal the dollars you spent.
Sometimes it’s instant (see letter “I” above), other times it’s 7-10 years; plus, payback time decreases as rates increase.

Q Quiet and Clean: Part of the magic of solar (and it is magic) is that every solar electric system operates
quietly, with no moving parts, no exhaust pipes and comes with a lifetime supply of free fuel.
R Resale Value: Early payback occurs when a home is sold with the solar intact, fetching a higher price equal to
the solar system cost. Plus, under state law the increased property value is exempt from property tax until 2010!

S State Rebate Program: California’s utility customers pay into a rebate program that will cover up to 25% of
a grid-connected solar system. By program design, the rebates get smaller every year.

T Time-of-Use Meters: Special PG&E meters run below-normal prices 90% of the year in exchange for higher
prices during 1-7 pm in the summer. Great for solar as you sell power back at rates higher than you will buy it back at
night.

U User Friendly: To be honest, a solar electric system isn’t 100% maintenence-free. Here’s why: when the
panels get dusty you take water and rinse them off. Also, glancing occasionally at the output display and nodding
approvingly helps.

V Voting with Dollars: Over 20 years, there are 5 days for choosing a president balanced against 7,300 days of
choosing an energy source. Which do you think is more effective in determining the future over 20 years?

W Why Wait: Due to worldwide shortages, solar panel prices are expected to remain flat until 2010 or longer,
while rebates are dropping every year. And new cost-breakthrough technologies may not become available for 10-20 years.

X X Marks the Spot: When it comes to assembling a built-to-last solar system on a roof (or on the ground),
only an experienced team of individuals should be used, with everyone involved covered under the contractor’s
insurance.

Y Your Children’s Future: While it often sounds funny, it’s true: think of the children. What kind of world are
they inheriting from us? What kind of air will they breathe? How much will their power bills be? (Yipes!)

Z Zeros: Zero utility bills. Zero price hikes. Zero emissions. Zero maintenance...okay, except for the hose part. And what do you get if you decide to stick with PG&E instead of going solar? A guaranteed lifetime payback of zero.
Martin Webb owns and operates Plan It Solar, a Penn Valley-based business that is
dedicated to helping the community switch to using solar power, at (530) 432-3776.