Solar Electricity Service Option

What kind of contract is used for OnSwitch Electricity Services?

OnSwitch uses a Power Purchase Agreement (PPA). The PPA is a multi-year agreement to buy the electricity produced by a solar system on your building’s rooftop. Someone else owns the system, and you pay a monthly power fee. Instead of making an upfront investment in solar panels, you can get started with a $0 down payment. You'll be able to start saving money from the first day the solar panels are installed. The PPA is sometimes called a Power Purchase Agreement.

With an OnSwitch solar system on my roof, do I need to increase my insurance?

The installation of a solar system rarely increases the building owner's insurance premium. However, you should consult your insurance company to confirm this.

Will my property taxes increase?

In California, like most other states, your property tax cannot be increased due to a solar system installed and operating.

What happens at the end of the PPA?

When the PPA term is over you’ll have a few options:

  • Buy the solar system at the higher of fair market value or a price pre-defined in the PPA.
  • Extend your PPA.
  • Request the owner of the solar system to remove it for use at another site.

What if I sell the building before the term of the PPA is over?

You can

  • Purchase the solar system for the price that is included in the PPA and then include it in the purchase price of the building, or
  • If the solar system owner approves the credit of the new building owner, you can assign the PPA to the new building owner.

Can I buy the solar system sometime during the PPA?

Yes, you can buy the solar system at various times starting the sixth year of the PPA.

When the Solar system is generating more electricity than my building is consuming, do I still have to buy the electricity?

No because most states including California require the utilities to do Net Metering with solar systems. Under Net Metering, that over-generated electricity will be stored in the utility grid for use and purchase by you later in the day (as solar electricity), when you are consuming more than your solar system is generating.

How do I pay for the solar electricity?

The owner will invoice you monthly, or can set up automatic monthly invoicing and payments. The amount of each payment will be calculated from the previous month’s electricity generated by the solar system and read by the utility-grade meter that will be installed with the solar system.

Solar System Ownership Option

What happens when the utility has a power outage?

For safety reasons, your solar system will automatically shut off if the utility power goes out. Grid tied systems are required to have built-in shut down mechanisms in the event of to a power outage. Although a power outage may seem like the perfect time to be self-generating your own power, you must understand that if you are generating power you could be sending power back to the grid and risking the lives of anyone working on the lines trying to restore power. It is also vital that in the event of a fire and power loss, the fireman can be assured that the solar array is not producing power as they are doing their job.

As the solar system owner, can I sell my solar electricity to my utility?

Your solar system will be connected to the utility as a "net metered" solar system, meaning any solar electricity that cannot be used by your building will spin your utility meter backwards – in effect, selling your excess power to the utility at the full utility retail rate. On a monthly basis, you pay only the "net" of the power you used. If you generate more power than you used in a month your utility company will forward your excess solar electricity credits to be used during the next month. This allows any excess energy generated in the summer to be used during the winter when there is less solar energy and usually higher energy usage. However, your solar system should be sized to generate no more electricity than your building can consume during a 1-year period since the utility won’t pay a retail rate for any excess solar electricity you provide to the utility during a 1 year period.

How do I maintain my solar system?

Solar system maintenance is truly minimal. Even cleaning solar panels is not necessary except in extremely dusty environments. For maintenance budget planning, OnSwitch recommends budgeting for inverter replacements every 12 years.

How long will the solar system last?

The solar panels and racking have 25-year warranties, but are expected to continue to produce electricity for 40 or more years. For maintenance budget planning, OnSwitch recommends budgeting of inverter replacements every 12 years.

Will I notice any difference in the performance of my facilities equipment?

OnSwitch solar systems are fully coordinated with your electric utility connection, such that you will notice no difference in your electricity service – except that your total electric bill will be lower.

The solar system is synchronized with the existing utility feed into your building. You use the power generated by the solar system first and then if additional electricity is needed the utility electricity will seamlessly flow through your meter to your facility and equipment, ensuring a full supply of uninterrupted power. Your equipment will not know where the electricity is coming from so there will be no difference in its operation.

How does a solar system work?

The solar panel contains several individual cells that are made largely of two layers of silicon. By design there is an electronic imbalance between the two layers and when the sun’s photons bombard the cell it knocks the electrons loose and they “bounce” from the top layer to the bottom layer creating energy. These bouncing electrons are captured as electricity by metal contacts in the panel.

Since the electricity created inside the panel is direct current or DC, it is necessary to push the current through an inverter that creates alternating current or AC. Once converted this electricity is then routed to your electrical outlets for your use.

Installation

What are the specifications of the OnSwitch solar system?

Your OnSwitch solar system has a design life of 30 years. It will generate 123456 during the first year, then 0.5% less annually. Some technical features of the solar system proposed are:

  • Polycrystalline solar modules
  • Racking is non-penetrating, ballasted, and tilted 10-degrees
  • Inverters are mounted on the roof
  • Online monitoring provided for real time and historical solar electricity generation data

Is there anything I am required to do with my building or premises to enable the solar system to be installed?

The following items may need to be completed before install. However, you can choose to have these items performed by the solar system installation team and included in your PPA price rather than performing them yourself.

Patching Roof Where Solar System Will Be Installed

Repairing any roof sections now rather than later minimizes the need to move the solar system to access the roof. OnSwitch will do this inspection and provide customers with any expected repairs and costs as early in the process as possible. These repairs will are usually not expensive unless the roof is over 15 years old.

Strengthening Roof Structure Under Solar System

This is in the rare case the current structure is unable to hold the additional weight of the solar panels and ballast system. Most structures do not require this.

Trees and Obstructions

Sometimes OnSwitch will recommend that trees be trimmed or movable roof structures like antennae or signs be relocated to reduce shadows and maximize solar production and savings for our client.

Upgrading of Electrical Switch Equipment / Wiring

Typically this is required only for older switch gear / wiring which could benefit from an upgrade anyway. This is a minimal cost and can be performed by the solar installer.

What does my Head of Facilities need to know about this solar system on our roof and in our electrical room?

For safety reasons DO NOT handle any of the solar system components without supervision of a certified solar technician. The system is producing large amounts of electricity and can cause serious injury. Your Facility Manager can help to relocate any rooftop obstructions that could potentially shade the solar system.

What if my roof needs to be repaired under the solar system?

No problem, you accrue 48 daylight hours annually during which time the solar system can be offline, including for ordinary repairs and maintenance of your roof.

How often do I need to let the solar system owner's maintenance people on my roof or in my electrical room?

Preventative maintenance is usually performed on an annual basis. This can include inspection on the solar system, meter checks, system performance monitoring, cleaning (remove dust, debris, power washing), and minor repairs. You will be given advance notice of a solar system maintenance visit.

If I buy the solar system, who will manage my installation contract?

This will depend on whether you purchase the solar system or sign-up for a solar electricity service agreement.

If you purchase the solar system, your contract will be with a top-tier, experienced, solar system installer qualified by OnSwitch.

If you sign a solar Power Purchase Agreement, your agreement will be with a top-tier, experienced, solar financing company qualified by OnSwitch.

If you are not happy with our recommended installer or financing company for any reason, OnSwitch will propose another well-qualified alternative company for you.

If I sign up for a Power Purchase Agreement, who will manage my service contract?

When you sign up for a Power Purchase Agreement, the solar system owner (an OnSwitch financing partner) is responsible for all install costs, operations, and maintenance of the solar system for the full duration of your service term.

Our partners are large, financially secure companies who demand the highest standards in installation and reliability to ensure quality service for the duration of your service term. OnSwitch only partners with solar providers with a long and consistent track record of successful business.

Utility Electricity Prices

Why is the cost of the utility electricity you are comparing to the solar electricity cost higher than what I thought I paid for utility electricity?

Most utility electricity rates are higher during peak daytime periods and the spring-summer months than at other times. A major benefit of solar energy is that it generates most of it’s annual electricity during these expensive utility electricity periods.

This means that your solar system is most productive when utility energy is at the highest price of the day! Avoiding these peak costs are how solar saves money as soon as it is installed.

Are Utility prices forecasted to increase?

The problems confronting electricity systems throughout the US are the result of multiple factors that point to continued increasing utility price increases:

Increasing Costs for Fossil Fuel Electricity Providers

While these are important policies in combatting climate change, things like increased federal regulations on toxic emissions, greenhouse gases, and the impending closures of fossil fuel power plants will translate to higher costs until renewables fill the gap.

Additionally, natural gas, commonly used by fossil fuel plants throughout the US, is forecasted to increase by 5.8% annually for next three decades (LINK). This will ensure the continued annual increase of utility costs to customers for decades to come.

Changes in State Energy Portfolios

In addition to federal initiatives, each State has their own energy obstacles and prices. They also have what is called an Energy Portfolio, which includes all the sources of energy a State uses.

For example, California has seen high and volatile utility prices due to a reduction in available energy sources. Nuclear provided 18% of California electricity in 2011 but decreased to 9% in 2012. Hydropower provided 18% of California electricity in 2011, but decreased to 9% in 2012. As drought conditions worsen, hydropower electricity for California has decreased even more.

I have heard that solar prices have been declining for many years, so why wouldn’t I wait until they decline further?

The time to buy is now. Although solar panel prices have been declining for many years, that decline has been less every year. Then starting last year, solar panel pricing bottomed out and then started increasing. The recent trade tariff imposed by the U.S. on most solar panel imports has further caused prices for all solar panels to go up. Beyond that, in just over two years the 30% Federal Investment Tax Credit is being reduced every year for the next 5 years.

About OnSwitch

Who is OnSwitch?

OnSwitch is a solar electricity provider who takes pride in offering the lowest price and most streamlined buying process for Businesses and Governments! We bring together top-tier commercial organizations, installers, and financiers across the U.S. to offer the best savings and best solar systems to all our clients.

OnSwitch was founded by leaders who have worked together for the past 14 years at commercial solar pioneers including PowerLight, SunPower, and Hanwha Q Cells. These years of experience produced well over a billion dollars of commercial solar projects for over 300 businesses and public agencies.

The OnSwitch mission - Leverage valuable industry expertise to provide the simplest, most economical solar systems available for Businesses and Governments, without sacrificing performance or quality.