Solar Education Center
Educating the public on renewable energy is the catalyst to large scale changes. Knowledge allows you to produce power. The power of the sun can be held in the palm of your hand and provided to everyone in your neighborhood through photovoltaic technology.
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Frequently Asked Questions (FAQ)
How does a solar PV system work?
Solar PV systems work by using cells to convert sunlight into electricity. The PV cells are made up of semiconductor material that absorbs light energy. This energy knocks electrons within the material loose, creating a flow of Direct Current (DC). Inverters then transform the DC into Alternating Current (AC) that can power appliances or be sold to the utility grid.
What is the average system size?
- Residential: 2kW - 7kW
- Commercial: 20kW and up
What are the components of a PV system?
Generally, a photovoltaic system consists of:
- Racking for modules
- Solar Modules (Panels)
- Batteries (for off-grid or hybrid storage)
- Inverter (String or Micro)
- Electrical enclosures/cabinets
- Balance of System (BOS): wires, grounding components, etc.
How much does a system cost?
PV systems can range significantly based on size and components. Larger commercial solar systems often achieve a lower cost-per-watt.
Historical Estimates: A 2kW system may range from $10,000-$14,000, while a 5kW system may cost between $22,500 and $30,000 before incentives. Source: www.solarexpert.com
Historical Estimates: A 2kW system may range from $10,000-$14,000, while a 5kW system may cost between $22,500 and $30,000 before incentives. Source: www.solarexpert.com
What is the Rate of Return (ROI)?
Many PV users have seen their complete investment returned within 5-7 years. After that point, your system is producing revenue. The lifetime of a system is typically 25+ years, ensuring long-term energy savings.
What are the tax rebates & incentives?
- NYSERDA Rebate: $1.00 per watt installed (varies by block status).
- NYS Tax Credit: 25% of the installed system cost.
- Federal Tax Credit (ITC): 30% of the system’s cost and installation.
Check www.dsireusa.org for a comprehensive list of renewable energy incentives.
Are there financing options available?
Yes. Beyond direct purchase, options include:
- Solar Lease: Little/no money down. Immediate cash-flow positive.
- Power-Purchase Agreement (PPA): Customer purchases only the electricity generated.
- PACE Financing: Up-front cost paid by local government fund, repaid via property taxes.
- SREC Loan: Utility pays bulk cost, repaid via SREC sales.
Note: Owning your system (via cash or loan) typically offers the best value—you keep the tax credits, incentives, and SRECs.
Source: www.seia.orgHow do I size my system?
You should try to size your system equal to or less than your annual consumption. In New York State, the utility grid will typically not reimburse for extra energy above 110% of consumption. Your installer will analyze your kWh consumption history to design the optimal high-efficiency solar array.
How does Net Metering work?
If your system produces more power than you need, the excess is sent back to the grid. These kWh are credited to your account and carried over to the next month. If you consistently produce excess, you may be reimbursed by the utility company.