Solar Energy Basics

for Homes and Businesses

Call Your Electric Cooperative First! Overview
For safety and required standards, call your electric power association before
Solar technologies allow us to harness the sun’s energy
investing in solar electric generation.
for our immediate use. Solar energy can be stored as

When solar electric generation is connected to metered wiring at your home or heat and the sun’s light can be used to generate electric

business, it is interconnected to the national power grid. Any solar installation power for your home or business. Because the amount

not meeting nationally approved standards can be a serious safety hazard for of solar radiation varies across our country, expectations
the owner and power line crews. The United States Department of Agriculture of system performance should be based on location and
Rural Utilities Service requires interconnection agreements for power
orientation. This publication provides a basic overview
generating equipment tied to funded rural electric systems.
of considerations. For serious solar decision-making,

read the “Resources” section listed at the end of this

publication and carefully select a qualified professional

Overview.....................................................................1 for assessing potential benefits. For your own safety

and for the safety of our electrical line workers, call your
Energy Efficiency First.............................................2
local electric power association for interconnection

Light can be
Solar Q & A..................................................................4
requirements.
System Types and Payback...................................8

Questions to Ask.................................................... 12

Resources................................... Inside back cover

Be sure to call before contracting
the solar installation!
used to generate
electric power.
 Energy Efficiency First • Install an ENERGY STAR® programmable thermostat and
learn to use it correctly.
Achieving energy efficiency first can lower the size and cost of a reduce heat gain into the home. • When replacing appliances, look for the ENERGY STAR®
solar installation. Investments in energy efficiency upgrades will • Before purchasing a heating/cooling system, assure proper label.
most often result in faster payback as compared to solar power sizing. Oversized systems are less efficient. Ask the heating/cooling • Use kitchen and bath exhaust fans for short times only to
generation. Before evaluating solar energy for your home or contractor for a printout of the ACCA Manual J (or J8) load remove excess moisture.
business, make energy efficiency a priority. calculation. • Insulate all accessible hot water pipes with pre-cut foam
• Purchase an ENERGY STAR® heat pump or geothermal system. A insulation sleeves.
Household Efficiency Measures: geothermal heating/cooling system will likely provide most of your • Repair all leaky faucets, pipes and water pumps. Install
• Reduce leakage from air conditioning and heating ducts by having hot water as a free bonus. high-efficiency shower heads and low-flow faucet
duct joints sealed with mastic. (MOST IMPORTANT!) • Make sure that the return air filter grille is large enough. The controls.
• Air seal and insulate your home envelope to ENERGY STAR® return filter grille size for an average three-ton system should be • Lower the water heater temperature setting to 120
recommendations. (http://www.energystar.gov) around 600 square inches total or more. Replace disposable filters degrees.
• Shade sunny windows from the outside during the summer to at least once a month or clean reusable ones.
Commercial Energy Efficiency:
Reducing the size of the total peak electrical load for your
commercial facility is the first and most cost effective
A Solid Investment: 45 step in planning solar generation. Lighting is one of the
Efficiency Upgrades largest users for commercial buildings, so upgrades are
Annual return on investment (percent) after tax

Offer Financial Benefits 40 usually first order. Because lighting generates heat inside
the building, lower lighting wattage saves energy for
Adopting the following 10 35 both lighting and cooling. Fluorescent T12 lighting can
energy efficiency measures in be replaced with more highly efficient T8 or T5 lighting.
a typical home yields nearly 30 Lighting power density should be around .9 watts
$600 in annual bill savings, Average return per square foot for most commercial applications and
providing an average 16 25 for all measures
occupancy sensors should be installed where applicable.

Make energy
shown: 16%
Programmable Thermostat
Fluorescent Lamps and Fixtures

percent return on investment. Energy efficient lighting technologies emerging into the
20 market include LED lighting and induction lighting.

Water Heater Tank Wrap

Clothes Washer

15 The total load reduction goal includes energy efficient

Refrigerator
efficiency a
Dishwasher
equipment for heating/cooling, motors, water heating,

Heat Pump
10 lighting and other processes. Look for the ENERGY STAR®
Duct Sealing

Air Sealing
label and follow regular maintenance schedules. For more

Insulation
priority.
5 information, see http://www.energystar.gov/ and select
Buildings and Plants; Guidelines for Energy Management;
and Portfolio Manager Benchmarking Starter Kit.
2 = ENERGY STAR Product Source: U.S. Department of Energy Home Energy Saver Program
 Solar Q & A Where can solar energy be used? How much do solar systems cost?
The U.S. Department of Energy defines renewable energy resources, The total installed cost of solar PV power generation
What exactly is solar energy? including solar, as those that “are naturally replenishing but flow- systems nationally ranges from approximately $6 to
Like the air we breathe, solar energy from the sun surrounds us limited.” The availability, or flow, of solar energy varies greatly $10 per watt, not including any federal tax credits. The
every day. We have always enjoyed the sun’s life-giving benefits of according to geographical areas of our country. larger the system, the lower the cost per watt will be and
warmth and light. However, with today’s improved technologies, new home systems tend to be around 60 cents per watt
solar energy can be harnessed for specific uses inside homes and A solar electric installation in the state of Arizona will generate more lower in cost. Battery back-up will also influence pricing.
businesses. electric power annually than the same solar installation in the state Commercial systems sized around 8 kW or more will cost
of Mississippi. Because there is less solar radiation in our state, a less per watt. Advancements in solar technology and mass
How can solar energy be used? larger installation would be necessary to match the same amount production are expected to lower future costs and hasten
• Sunlight can be converted into electricity. of electric output. As a result, the cost of a solar power installation is payback on PV solar system investments.
• Sunlight can be captured for use as indoor lighting. higher in our state.
• The sun’s heat energy can be used for water heating, space A solar thermal water heater for a family of three to four
heating, or even pool heating. may cost around $5,000 to $8,000 before the federal tax
credit is applied. Cost and payback for solar water heating
What types of on-site solar systems are there? ranges from around 4 to 10 years depending on the
• Photovoltaic (PV) systems produce electricity from the sun’s light system type, system size, hot water use, and costs. Labor
energy. Photovoltaic solar panels are typically placed on the roof. costs vary.
• Solar thermal systems use solar collectors, typically on the rooftop,
to transfer the sun’s heat energy for water heating and space Is there a solar tax incentive for homeowners?
heating. The American Recovery and Reinvestment Act of 2009
• Passive solar design consists of a combination of building features (Stimulus Bill) provides a homeowner tax credit for 30% of

As energy costs
to reduce or occasionally eliminate the need for cooling, heating the PV solar system cost. The system must meet applicable
and lighting. fire and electrical code requirements. This credit, to be
• Now emerging into the market are PV roofing shingles and solar filed on IRS Form 5695, will be in effect until Stimulus Bill
funds for this purpose are depleted.

rise, the value of

laminate materials made possible by thin film solar technology.
These are classified as building integrated photovoltaics (BIPV) and
give the appearance of standard construction features. A thirty percent credit also applies to solar thermal water
See System Types and Payback section for more information on each. heating systems.
• Solar water heating for a pool or hot tub is excluded.

The map right, from the

National Renewable Energy
kWh/m2/Day
• The water heating system must be certified by the Solar
Rating Certification Corporation or other comparable
government endorsed entity.
any solar energy
also increases.
Laboratory, illustrates the • At least half of the water heating must be solar energy.
annual availability of solar
energy throughout our nation.
4
 Q & A Continued • Read about solar by checking out Resources on the last page of What are the reasons to interconnect my solar system?
Since PV energy production depends on sunshine, a typical solar
Examples of stand-alone solar electric items that are not connected
to the grid include:
this publication.
Is there a solar tax incentive for businesses? installation will need access to the electric power grid on a daily basis • Solar stake light for sidewalks
• A business solar investment tax credit may apply for 30% of the Be sure to ask your cooperative representative about insurance for the supplementary energy needs. If your PV system generates more • Solar garage light (dedicated wire)
initial PV installation expenditures (IRS Form 3468). requirements and responsibilities for service and maintenance. power than you use, the additional energy can be sold back to the • Solar powered attic ventilator
• A five-year accelerated renewable energy property power provider at their avoided cost. Any PV system that connects to the • Solar powered livestock watering pump
depreciation allowance (IRS Form 4562) may result in How is solar energy delivered? metered electrical wiring in your home or business is interconnected to • Gate opener
faster payback on PV investments. The national electric power grid is the superhighway of power lines the grid, and requires an interconnection agreement.
used for delivering electricity in our nation. Stand-alone solar electric items are purchased as kits at home
Is financing available for solar systems? Why is an interconnection agreement required? improvement stores and consist of a small solar PV cell, a battery, and one
Solar renewable and energy efficiency projects are typically Solar systems that are connected to the grid deliver power through The USDA Rural Utilities Service requires interconnection agreements for item to be powered directly.
financed through home equity loans or home improvement loans. electrical wiring in your home or business. Typically, most of the consumers to interconnect generation. These agreements are a means
The US Environmental Protection Agency provides financing for solar power generated is used at that same location. Any remaining of assuring safety, reliability and quality of electric service for all. Even How should I select an installer?
solar thermal and solar photovoltaic systems in an ENERGY STAR® solar power is usually exported to the electric grid. Some solar national security is tied to the reliability of our national electric power As with any technology installer, the most important considerations for
home or building if a 10-year payback is demonstrated. Other installations have back-up batteries, which add around 30% to the grid. selection are:
loan programs are available through Fannie Mae Corporation, cost of the installation. • Training
the U.S. Department of Agriculture, the Federal Home Mortgage For all of these reasons, certain equipment requirements and work quality • Certification
Corporation, and the U.S. Department of Energy. The Small Business Solar systems that are not connected to the electric grid deliver the standards must be met within electric cooperative service territories. If • Experience
Administration also has a loan program for commercial solar sun’s heat or light energy to the need inside the home or business. one line worker is unaware of power generating equipment in the area • Word of mouth recommendations
installations. when repairing electric power lines, the results can be deadly. For family
Are PV solar systems interconnected to the grid? and community safety, be sure to call your electric cooperative about an The North American Board of Certified Energy Practitioners provides
What are the first steps for considering a solar system? Typically, photovoltaic (PV) systems that serve various power needs interconnection agreement prior to installing solar PV systems. national certification for installers in the field of renewable energy.
Even solar system installers agree that energy efficiency should be are connected to the metered electric wiring network inside the The number of certified solar photovoltaic installers and solar thermal
the first priority before considering solar systems. Here are the first home or business. That on-site interconnection links your solar Who determines the interconnection requirements? installers is limited but growing. See Resources on the last page of this
steps: electric system to the cooperative’s power lines and to the national Electric cooperative requirements for interconnection are based on publication.
• Read Energy Efficiency First and reference Resources on the last power grid. Connecting solar PV generation to the wiring inside standards established by the Institute of Electrical and Electronic
page of this publication. your home or business is very different from connecting a major Engineers (IEEE) and Underwriters Laboratory (UL). All PV system installations must be certified by an approved certifying
• Apply needed energy efficiency measures. electric appliance. For safety, there are national standards that apply agent before interconnecting to the electric grid. See the electric
• Estimate the square footage of any south facing rooftop area or to interconnection. Which types of solar systems are NOT connected to the grid? cooperative interconnection agreement for the details regarding
other area that receives hours of direct sunlight every day. Solar systems that do not produce electricity are solar thermal water interconnection certification requirements.
• CALL YOUR LOCAL ELECTRIC POWER ASSOCIATION. Can I use solar energy to “get off the grid” completely? heating systems or solar light pipes. These systems use the sun’s heat and
• For solar PV generation, ask to speak to the cooperative’s Generally, those who use on-site solar PV as a sole source of power, light energy, but are not connected to the grid.
distributed generation representative about an interconnection do so because they reside far from existing power lines. For these
agreement. installations, PV can be a cost effective alternative to avoid the
• For solar thermal (hot water), ask to speak to an energy efficiency cost of a very remote power line connection. Most of these non-
advisor. Ask about how to find listings for SRCC certified grid systems have a battery back-up for times when the sun is not
6 equipment. shining.
 Solar System Types and Payback Quick Estimate of PV Cost
1. Determine the square footage of available south-facing
Photovoltaic (PV) Systems roof area.
The word “photo” means light. “Voltaic” relates to electric 2. Multiply square footage x 10 to get watts.
current. Photovoltaic (PV) technology uses the sun’s 3. Multiply watts x $6 to $10 to get a ballpark total
light energy, not heat, to produce electricity. installed cost.

How does it all happen? Cost and Payback

Solar PV cells are the basic building blocks. The With numerous solar PV calculators on the web, there are
semiconductor material that makes up a solar cell is some differences in calculating payback. See Resources.
similar to a computer chip. When high energy solar Note that some calculators give credit for increased real
DC/AC inverter
rays strike the surface of a PV cell, electrons begin to estate value as a result of the installation.

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move and electricity is generated. These are the same

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For an all-electric home averaging around 1350 kWh per

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solar rays that cause sunburn, but now they can do

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something amazing! DC circuit month, a 3 kW PV system would produce about 25% of

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an lar P
the total energy used by the home.

So
When connected, PV cells form a PV module or panel.
If modules are connected, the grouping is called a AC Example 3 kW PV System
solar array. Some photovoltaic cells are integrated into DC disconnect switch Producing approximately 25% of energy;
building materials, so that they are not visible. Roof Source................................................. http://www.solar-estimate.org
shingles and glass can contain PV material that acts like Prior Home Usage........................... 1350 kWh; $158 per month
a solar module. Utility System Size......................................................................... 3.1 kW DC
Roof Area...................................................................307 square feet
The inverter converts the direct electric current (DC) Approximate Total Cost.......................................................$27,630
produced by the PV system to alternating current (AC). Federal Tax Credit (if applicable)........................................ $ 8,289
Alternating current is compatible with the grid and your Net Cost.............................$19,341 (after applicable tax credit)

Photovoltaic (PV)
home appliances. Some PV systems have a battery used Payback.................................................................................. 23 years
to store excess energy to supplement when the sun is
not shining. This example assumes that all power generated is used at the
same home location. Any excess power can be sold back to the
At the present time, the average PV efficiency of turning
solar energy into electric power runs around 12%. When
technology advances result in greater efficiency, then
Utility
Disconnect
power supplier at avoided cost. Break-even points for payback
vary with cost of utility power, inflation rate, system orientation
to the sun, system cost, financing, and tax bracket. This web
technology uses the
sun’s light energy.
payback on consumer dollars will be faster. That new Meter calculator assumes an $8,425 increase in home resale value for
technology is in the works! this 3 kW system. For interconnected PV calculations at http://
www.solar-estimate.org, energy cost entered should be cost per
8 kWh after any base charge is applied.
 Types and Payback Continued Water Heater Sizing Passive Solar Design
To determine broad sizing estimates for the storage tank and the Passive solar design is the most economical way to use the sun’s
Solar Thermal Water Heating Passive solar water collector, see guides below. However, rely on a qualified professional to energy. Many homes and buildings are designed to take advantage of
Solar thermal systems collect and transfer the sun’s heat Batch heating system determine the correct size for your household or business. solar resources for use as heating and natural lighting. Passive design
collector integrates building features to reduce the need for heating, cooling, and
energy, with the most common uses being domestic water
heating and pool heating. For a warm touch on cold winter Minimum Residential Solar Tank Size daytime artificial lighting
mornings, water heated by a solar collector on the roof can Hot water 1-3 people.................................................................................. 50 to 60 gallon tank
to house
be piped under floors for space heating too! There is no 3-4 people .............................................................................................80 gallon tank Heating and Cooling: Since the south side of a home or building receives
electric power produced by this type of system. 4-6 people .......................................................................................... 120 gallon tank the most solar heat, passive design uses large south-facing windows for
heating. To avoid the additional heat gain in summer, the overhang on
The plus side of solar thermal is that it is much more efficient Typical Collector Size (to meet nearly all hot water needs) the same window is sized according to latitude. This provides shading
at using the sun’s energy when compared to PV. Greater Spigot drain valve First 2 people....................................................................... 20 square feet for each from the high summer sun, while allowing the winter sun to shine in at
(for cold climates)
efficiency along with a lower initial price tag means a much Additional people.................................................................8 square feet for each a lower angle for heat and light. Landscaping helps south, east, or west
Solar storage/ facing windows avoid summer heat gain. Deciduous trees, those that lose
faster payback for consumer dollars invested. backup water
Bypass valves Experts suggest that for active systems, there should be at least 1.5 their leaves in winter, allow winter sunlight to pass through while shading
heater
The device that absorbs the sun’s heat energy is a solar Cold water gallons of storage to every one square foot of collector area. This is to in summer. See Resources for overhang sizing.
collector. Like a PV module, it can be placed on a roof or on supply prevent overheating when the demand for hot water is low.
a support structure. Before sizing your solar water heater Daylighting: Daylighting is the practice of architectural design for
and collector, find ways to reduce your overall hot water Solar Water Heater Payback Example maximum use of daytime sunlight. Levels of electric lighting can be
consumption. Install low flow shower heads, faucet aerators, Source...................................................................... http://www.solar-estimate.org adjusted to accommodate available natural light. Solar light pipes or
Active solar water Location.................................................................................... near Hattiesburg, MS light tubes transport the sun’s light from the roof to the desired indoor
and an ENERGY STAR® washer and dishwasher. See the Solar heating system
Rating Certification Council website listed in Resources. People............................................................................................................................3-4 location.
Solar Collectors...............................................................................................................2
Types of Solar Water Heating Systems: Passive and Active Hot water
Tank Size.........................................................................................................80 gallons For commercial buildings, schools, and other institutions, daylighting
Flate plate Annual Energy Saved.................................................................................. 4688 kWh has been proven to increase worker productivity, patient health, and
A passive solar water heating system is the simplest, least collector
to house
cost system. It is somewhat less efficient, but has no pumps Cold water Approximate Total Cost....................................................................................$6,000 students’ grades. There is also potential for energy savings, by decreasing
or controls for maintenance worries. These systems will supply Federal Tax Credit................................................................................................$1,800 the amount of heat otherwise produced by artificial lighting.
operate during a power outage. Antifreeze fluid in Net Cost.................................................................................................................$4,200
collector loop only Payback (assuming increase in property value)................................5-6 years Windows with a high VT rating (visible transmittance) allow more light
Solar storage/
Active systems use electric pumps, valves, and controllers backup water into the building or home. Glass VT ratings range between 0 and 1 with
to move water or an antifreeze solution, through collectors. heater Calculation assumes an active system. For water heating calculations at the higher numbers being best for using the sun’s daylight. Glass with a
This is the most common type of solar water heater in the http://www.solar-estimate.org, energy cost entered should be cost per low SHGC rating will reduce solar heat gain and lower cooling needs. For
Double-wall
United States, but it will not operate during a power outage Pump heat exchanger kWh after any base charge is applied. System cost and payback will vary more information on passive solar design and glass ratings, see Resources.
unless pumps have backup power. A drainback system that according to system type and hot water usage patterns.
These illustrations are from the
uses water for heat exchange is the most simple type of
US Department of Energy: Energy
active system.
10 Efficiency & Renewable Energy
 Questions to Ask Ask Your Solar Dealer/Installer:
Resources PV Ratings
http://solar.calfinder.com/blog/solar-information/solar-panel-
1. May I see the specification sheet for the solar panels?
“Off the Grid” No More Energy Bills? 2. What is the minimum warranted power? This is the amount of Energy Efficiency Savings and Home Energy Audit ratings-breakdown/
How many solar panels would it take to supply all of my home power generation guaranteed from a solar panel. http://www.touchstoneenergysavers.com/homeAudits.html
Solar Rating Certification Council (rates solar water heaters)
power needs, so that I could disconnect from the cooperative power 3. What are the STC* and PTC** ratings?
Energy Efficiency: Home Energy Savings Handbook http://www.solar-rating.org
lines? Of course the answer varies for each household according to 4. For how many years is the power production warrantee?
usage patterns, orientation to sun angle, energy cost, equipment http://www.smepa.coop/news/smepa_energy_guide.pdf
5. What is the solar module efficiency in watts per square foot? (not Daylighting
efficiency, and installation type. cell efficiency) http://www.daylighting.org
Energy Star®
6. What is the efficiency rating of the inverter? Purchase a high http://www.energystar.gov/ http://www.nfrc.org/documents/Daylighting_consumers.pdf
Payback (off the grid) Example:
efficiency inverter for more power production.
Source.........................................................http://www.solar-estimate.org Economics of Solar Systems – Payback Calculator Windows and Overhang Sizing
7. Does the inverter have a heavy duty copper wound output http://www.nfrc.org
Prior Home Usage........................................ 1350 kWh; $158 per month http://www.solar-estimate.org
System Size.................................................................................12.13 kW DC transformer? http://www.susdesign.com/overhang/
Roof Area Needed....................................................................... 1,229 sq. ft. 8. Does the manufacturer’s label on the mounting system state Florida Solar Energy Center
Estimated Installed Cost................................................................$110,610 medium to heavy duty (or a hurricane mounting kit)? http://www.fsec.ucf.edu Passive Solar Design Technology Fact Sheet and Solar Road Map
See PV Ratings listed under Resources. http://www.southface.org
Tax Credit (if applicable)..................................................................$33,183
Cost after Tax Credit..........................................................................$77,427 Renewable Resource Data Center
(Click on Solar; Models and Tools; PVWatts) Financing Solar Systems
Payback (cash vs. loan)................................................................... 26 years *STC, the standard test conditions rating, represents the number of watts
http://www1.eere.energy.gov/solar/pdfs/26242.pdf
produced. It is typically displayed within the manufacturer’s model number http://www.nrel.gov/rredc/
http://www.nrel.gov/gis/solar.html (map of U.S. PV solar radiation)
Solar-estimate.org, assumes a $37,000 increase in home value for on the module nameplate. Standard test conditions are a constant 78 degrees Solar Contractor Locator
this 12.3 kW installation. If this appreciation in home resale value Fahrenheit. http://www.findsolar.com
Portal for the solar industry
does not apply, the payback period will be significantly longer. For http://www.solarbuzz.com
** PTC test conditions represent watts produced under varied realistic weather
these homes NOT connected to the utility electric grid, adequate North American Board of Certified Energy Practitioners
conditions. When PV module temperatures increase, the amount of electric
battery back-up may add significantly to cost. Solar materials cost U.S. Department of Energy – Energy Efficiency http://www.nabcep.org
power production decreases. PTC watt ratings will be lower than STC watt
varies over time. and Renewable Energy
ratings. (The source for PTC testing is Photovoltaics for Utility Scale Applications
http://www.eere.energy.gov

Visit these
(PV-USA.)
Applied Products and Building Research
http://www.toolbase.org
Notes: Search for “solar”

Federal Tax Incentives

http://energytaxincentives.org resources
12 12/2009 South Mississippi Electric Power Association; Hattiesburg, MS 39404-5849
online.