Tuesday, Aug. 11, 2009 • Utility district offers rebates to customers who install solar panels

Publisher’s note: This story originally appeared in the Tuesday, Aug. 11, 2009 edition of the Lassen County Times.

If you’re interested in installing solar power on your home or business, you may want to take advantage of a state-mandated rebate program that can help you recover some of the initial purchase and installation costs.

The Lassen Municipal Utility District offers rebates to both residential and commercial customers who install and operate qualifying photovoltaic systems.

Residential customers may receive a $4 per watt rebate for a maximum of $16,000 not to exceed 50 percent of the total cost of the installation, and commercial customers may receive a rebate of $2.80 per watt up to a maximum of $280,000 not to exceed 50 percent of the total cost of the installation.

SB 1, known as the California Solar Initiative, mandates the rebate program. Over a 10-year period (2007 through 2017) LMUD will contribute $140,000 per year for a total of $1.4 million to fund the rebate program designed to increase the number of photovoltaic systems in its customer base.

“The solar rebate program gives incentives to customers who want to install photovoltaic panels on their houses or businesses,” said Theresa Phillips, LMUD’s energy services and compliance specialist. “The program allows customers to offset some of the cost of installation with rebates from LMUD.”

Applications for the program are available at the LMUD office, located at 65 S. Roop St. in Susanville or on the Web at lmud.org.

“The intent of the program is to generate 3,000 megawatts of solar power on the rooftops of California residences and businesses,” Phillips said. “The goal is to offset usage by using solar electricity, so customers have to be connected to the grid. We’re providing rebates for those want to go green and go solar.”

She said the rebate program wasn’t designed for those who want to completely power their homes or businesses with solar power and then drop off the grid.

Using a formula that calculates the percentage of the load used by each electricity provider in the state, LMUD’s target goal through the program is 1.6 megawatts of solar power.

So far, only two residential projects have been completed for LMUD customers — a residence in Susanville and a residence in Janesville. Those two projects generate a maximum of 8.7 kilowatts of solar power.

Phillips said the district has received a number of inquires from commercial customers and third party vendors that might want to install commercial systems on the rooftops of local buildings, but none of the projects have moved beyond the talking stage yet. She said the interest in commercial installations has increased recently.

“That seems to be an up-and -coming thing, especially with the recent changes to the federal tax law,” Phillips said.

Changes to the federal tax law offer more incentives — up to 30 percent of the cost as a federal tax credit — for those who install solar generation projects, Phillips said.

But installing solar panels may not be right for everyone.

“If your goal is to reduce your power bill, you ought to look at energy efficiency first,” Phillips said. “Heating, cooling and installation, those types of things are going to save you money but not be a huge investment like solar is. When people tell me their goal is to reduce their energy bill, I tell them before they invest $40,000 in a solar system, take a couple of thousand dollars and make some energy efficiency changes in your house and see how that goes for you.”

Those who spend their money on improving their energy efficiency can see a lot more bang from their buck, as opposed to the cost of installing a solar system, Phillips said. In any case, making those energy efficiency changes is the first step in the process, even for those who eventually decide they want to install a solar system.

How to qualify
In order to qualify for the program, LMUD customers must plan or complete an LMUD Energy Efficiency Audit and implement all measures with a less than three year payback; submit and obtain the required building and electric permits to install the solar system from the city or county building department; complete and sign two copies of the Interconnection Agreement with LMUD; install a compliant system that includes a 10-year warranty from the retailer or installer; request an LMUD inspection after the project has been passed by the city or county building inspector; submit the Interconnection Agreement, the receipt for the system and a copy of the warranty to LMUD; and once approved by the utility district, customers should receive a rebate check within 30 days.

Commercial rebates exceeding $50,000 will be paid over multiple years on the anniversary of the completion of the project.

In order to qualify for an LMUD rebate, all flat plate solar panels must be certified by a nationally recognized testing laboratory and must appear on the latest California Energy Commission certified photovoltaic modules list, and all inverters must be certified as meeting the requirements of the California Energy Commission.

The systems must be installed by a qualified and registered contractor in conformance with the manufacturer’s specifications and all applicable electrical and other codes and standards.

Here’s how solar power works
The sun has been producing energy in the form of solar radiation for billions of years, yet it remains a relatively untapped resource in comparison to the demands placed on oil and other fossil fuels. Photovoltaic devices use solar energy to heat your living space and power your water heater, in addition to other electronic devices in a home.

Solar power can save money, and it’s something customers can feel good about. Once installed, PV systems can reduce heating and energy bills up to 80 percent. As a free, limitless, renewable source of energy, solar has gained popularity among homeowners across the country in recent years.

Solar does not release carbon dioxide emissions unlike many traditional energy sources, so it helps protect the environment.

A solar power system should not be seriously considered before adopting the best energy efficiency measures possible.

More information on energy conservation is available at these Web sites: lmud.org, gosolarcalifornia.org and solarelectricpower.org.

How does a solar panel work?
Sunlight hits the PV panels and moving electrons create direct current voltage.

An inverter converts the direct current into alternating current that is then fed into the electrical service or breaker panel.

The electrical service or breaker panel takes the energy from the inverter and distributes it throughout the building.

The electric meter provides three readings — energy produced by the solar system, energy used in the building and the net difference.

Energy from the electrical service panel is used to power various electrical items in the building such as washing machines, dryers, televisions, computers and lighting.