Financial Benefits of Solar Power
How Solar Works
Will solar work on my home or business?
We hope so! The two biggest factors are the amount sunlight you get throughout the day and the amount of open roof space. We can give you a quick assessment by looking at satellite photos of your property. If your roof looks good, we will schedule a follow-up free solar consultation where one of our experts will survey your site to evaluate if a solar power system will fit with your architecture and meet your energy needs.
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Will I need to adapt my home or business to run on solar power?
No. Solar power electric systems fit seamlessly into your building. You won't have to buy new appliances or change your electrical outlets; everything will work just the same as it did before. You should experience no practical changes except for one: you won't have to pay a big electrical bill every month!
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No big utility bill? Really?
Really! When you begin to generate your own solar power, your electricity bill will drop significantly. How much you can save will depend on the size of your solar system and your electricity usage. When your solar system generates more electricity than your building can immediately use, your excess power flows back to the utility grid and your meter literally spins backward! Learn more about utility billing and "net metering".
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Should I wait for new technology?
No, now is really the best time to invest in a solar system with the combination of technology and cost. The underling benefit of turning sunlight into electricity will not change for as long as we still use electricity to power our homes and businesses! SolarCity offers multiple solar panel solutions to our customers, including First Solar modules, the latest in thin panel technology. We continue to evaluate new technology and will offer it to our customers once it becomes a reliable and cost effective option.
The other key component in evaluating the right time to install solar is government incentives. Federal and state governments are currently offering generous rebates and incentives to go solar; however, these programs are designed to reward early adopters of solar power, so the rebate amount per project continues to drop as the allotted funds are consumed.
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What size solar system do I need?
Every home and business is different, so the size of your system will depend on your energy needs, roof space and solar goals. Residential solar systems are typically 3-10 kW and commercial systems range from 50–500 kW for a medium sized business. SolarCity will custom design a system to meet your specific needs and offset as much of your utility bill as you desire.
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What maintenance is required?
Your solar energy system requires very little maintenance, largely because it has no moving parts. All your system requires is minimal shade, occasional cleaning and inspection. We suggest that you keep an eye on trees that may shade your system and keep them trimmed. Using SolarGuard—the SolarCity service team proactively monitors your system output to ensure that your system is performing as it should. In the unlikely event that your system underperforms, SolarCity will alert you and help to remedy the situation. With our SolarLease, PurePower and PPA, maintenance and warrantee repairs are included as part of our service to you.
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How reliable is solar power?
Solar systems built today are very reliable. They have proven to be dependable sources of energy for large office buildings, mass retailers and governmental agencies, supplying megawatts of energy. Some of the largest companies in the world have buildings powered by solar energy, including eBay, FedEx, WalMart, Whole Foods, and the US Air Force. SolarCity has incredible high quality standards and only use best of breed equipment—we build our systems to last.
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Do I need a battery back-up system?
No. Battery systems are expensive and are not recommended. All SolarCity solar systems are connected to the utility grid so you always have access to a power source. You never have to worry about “running out” of power.
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What happens at night, or when the weather turns cloudy?
Since the amount of power your solar system generates is a direct result of sunlight, it will produce slightly less energy when the weather is cloudy. Your system will not produce any energy at night. Your SolarCity power system will be interconnected to your locally utility grid, so that you can automatically begin to draw power from the grid whenever you need it. You won’t experience any power interruptions—the switch between solar system power and the utility grid happens seamlessly, with no effort on your part.
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What happens if there is a black out?
In the event of a black out, your system is designed to turn off. This is a safety requirement by the utility company so that their technicians can safely repair down electrical lines.
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How long will a solar system last?
Most of the parts on your solar system, such as solar panels, carry manufacturer's warranties of 25 years; other parts, such as inverters, carry 10-year warranties. In addition, SolarCity offers a warranty of at least 10 years on installation and system performance. Most solar systems may far outlast their warranties; many of the first solar systems installed more than 30 years ago are still going strong.
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Installation Process
Is it difficult to switch over to solar power?
No. SolarCity makes it easy to switch to solar. We will get your solar system up and running as quickly and smoothly as possible so that you can start saving money and using clean energy. You won't experience any changes inside your home or business.
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How long will it take to get my new solar system up and running?
A typical residential roof installation takes about 3-5 days and a typical commercial installation takes about 1-3 weeks from the day we begin the installation. The length of time depends on the complexity of your roof and the number of panels that will be installed. The estimated installation time will be included in the design proposal presented to you by SolarCity.
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What kind of permits are needed to meet local building codes?
As part of our comprehensive service, SolarCity will obtain all building permits and design your system to meet your local building codes. We’ll arrange the electrical, building and utility inspections and be on-site to make sure that everything is up to code. SolarCity takes care of your project every step of the way.
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What if my roof needs repairs after I've installed solar panels?
Ideally, you should install solar panels on a roof that is in good condition. When a SolarCity site auditor comes out to inspect your building prior to installation, he or she will check to make sure that your roof is suitable for a solar installation. Once the solar panels are installed, they actually help to protect your roof from the elements. If you should ever need to make repairs on the roof, the solar panels will need to be removed and re-installed. SolarCity offers this service for a reasonable fee.
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Financial Benefits of Solar Power
Does a solar system make financial sense for me?
Solar is a smart financial investment because you will save money on electrical costs for years to come and increase your home value. Our customers who purchase their system typically see a strong Return on Investment (ROI) and expect to recoup their solar system investment within 5-10 years. Depending on the rebates and incentives offered in your area, you may be able to pay back your system even sooner.
With SolarCity’s SolarLease, PurePower and Power Purchase Agreement (PPA), you can finance your system with zero upfront investment, so that you can start saving right away.
Homeowners can try our solar calculator to get a quick, high level estimate to purchase or finance a solar system.
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Will the government really give rebates and tax incentives for going solar?
The incentives and rebates are both real and substantial. Both state and federal governments offer tremendous financial incentives for businesses to choose solar. A combination of incentives and tax credits can cover 50% or more of the total cost! The most important thing to keep in mind about these governmental programs is this—they won't last forever. Now is the time to take advantage of the federal and state mandate to switch to renewable sources of energy; once the adoption rate reaches a certain level, the incentives will disappear.
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Is now a good time to buy a solar system?
Now is the perfect time to switch to solar. Federal and state governments are offering generous rebates and incentives to go solar; however, these programs are designed to reward early adopters of solar power, so the rebate amount per project continues to drop as the allotted funds are consumed. In additions, solar can dramatically reduce your utility bill and will protect you from rising utility rates for years to come.
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Do you have financing available?
Yes. SolarCity offers SolarLease and PurePower financing for homeowners and a Power Purchase Agreement (PPA) for business owners. Now you can start experiencing the benefits of solar power immediately—without any capital investment or equipment purchase. We install and maintain the equipment on your site. You just pay a low monthly payment.
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SolarLease
What are my options at the end of the SolarLease?
SolarLease is a very flexible way to go solar. When your SolarLease ends, you have several good options to choose from:
- • You can upgrade to a new system with the latest solar technology under a new SolarLease.
- • You can also extend your existing SolarLease in five year increments.
- • You can ask SolarCity to remove your system for free.
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What if I move to a new home before the end of the SolarLease?
You can pass on the solar system to the new owners in two ways. The great thing about either of these options is that solar homes typically have a higher resale value, because their lowered electricity costs.
- • You can transfer the SolarLease to the new homeowners if they qualify with excellent credit.
- • You can also prepay the lease and include it in the asking price.
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Can I decide to buy the system later?
No, but you can renew your lease in five year increments.
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A SolarLease includes full service. What is included?
- • Your free SolarGuard monitoring service will alert you and SolarCity of any changes in performance. If we see a problem, we will give you call to help diagnose the problem and dispatch a repair team to fix it if needed.
- • Every SolarLease includes an extended warranty on workmanship and hardware through the end of your lease. SolarCity will repair or replace broken components at no cost to you. For instance, your inverter will likely need to be replaced around year 12.
- • SolarLease performance is guaranteed. If your system doesn't produce as much electricity as we promise we will pay you back.
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How does the Performance Guarantee work?
SolarCity offers a performance guarantee that your system will produce as much electricity as we promise, or we will pay you back. This takes into account normal weather variation and solar panel performance over time. The amount of electricity we promise to deliver is stated in your contract. We track your system performance through our SolarGuard monitoring service.
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PurePower
What is the difference between PurePower and SolarLease financing?
Based on your state of residence and utility provider, SolarCity’s residential financing offering is either a lease (SolarLease) or a Power Purchase Agreement (PurePower). Both types of financing are offered directly from SolarCity and both let you get started with zero upfront cost. Both financing plans are commonly used in the solar industry. With PurePower, you pay a pre-set rate—purely for the power your solar system generates. With a lease, you pay a steady fixed monthly payment. One easy-to-understand comparison is to car rental agreements. SolarLease is like renting a car with unlimited mileage. PurePower is like paying for only the actual miles driven.
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Is PurePower a Power Purchase Agreement (PPA)?
Yes, PurePower is SolarCity's residential PPA financing option. It is an agreement between you and SolarCity, where SolarCity covers the full cost of a solar system at your home and in return, you agree to buy the power produced by the system. This allows you to avoid a large upfront cost. You will be "locking in" your electricity rate for the next decade. No matter how much the cost of utility electricity rises, you can rest assured that your PurePower rate is fixed and predictable for years to come!
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What are my options at the end of the PurePower term?
PurePower is a very flexible way to go solar. When your PurePower agreement ends, you have several good options:
- • You can upgrade to a new system with the latest solar technology under a new PurePower agreement.
- • You can ask SolarCity to remove your system for free.
- • You also have the option (but no obligation) to purchase the system at the end of the term for fair market value.
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What if I move to a new home before the end of the PurePower agreement?
There are a number of options if you move before the end of your agreement. You can move the solar system to your new home if it is in the same utility district. Or you can pass on the solar system to the new owners in two ways. The great thing about either of these options is that solar homes typically have a higher resale value, because of their lowered electricity costs.
- • You can transfer the PurePower agreement to the new homeowners if they qualify with excellent credit.
- • You can also pay off the balance of your PurePower agreement and include it in the asking price.
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Can I decide to buy the system later?
Yes. The PurePower agreement provides you with an option (but no obligation) to purchase the system at the end of the term for its fair market value.
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PurePower includes full service. What is included?
Free SolarGuard monitoring service is included for the life of the agreement. SolarGuard will alert you and SolarCity of any changes in performance. If we see a problem, we will give you call to help diagnose the problem and dispatch a repair team to fix it if needed.
Every PurePower agreement includes an extended warranty on workmanship and hardware through the end of your agreement. SolarCity will repair or replace broken components at no cost to you. For instance, if your inverter needs to be replaced SolarCity will cover the repair or replacement.
PurePower includes a performance guarantee that your system will produce as much electricity as we promise, or we will rectify the situation for free.
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How does a PurePower differ from SolarCity's Commercial PPAs?
PurePower is SolarCity’s residential PPA financing option. We also offer Power Purchase Agreements to our commercial customers. Both are agreements made with SolarCity, where SolarCity covers the full cost of a solar system and in return, the homeowner or business agrees to buy the power produced by the system. PPAs allow our customers to avoid a large upfront cost and to pay over time with recurring payments that are more affordable.
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