Your Solar System

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.

Increased Federal regulations on toxic and greenhouse gas emissions, utility investments needed to respond to growing climate changes such as increased forest fires and hurricanes, and closures of expensive coal and nuclear power plants are all translating to higher utility electricity costs until more 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. This will ensure the continued annual increase of utility costs to customers for decades to come.

What happens when the utility has a power outage?

Utility-connected solar systems are required to automatically shut down when a utility power outage is detected, primarily to prevent solar system electricity to be sent into the utility grid creating a safety hazard for anyone working on the utility lines trying to restore power. However, including energy storage (batteries) with your solar system will enable your building to use the solar power even during a utility power outage. OnSwitch can include an energy storage option for your SkyQuote.

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

In some states, 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. 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.

In states where the utility pays less than retail rate for your excess solar electricity, your solar system will be engineered to your desire to either maximize your solar electricity production or to maximize your solar system financial return, and in this case the solar system size may be smaller than the case where the utility pays full retail rate for your solar electricity. To enable OnSwitch to optimize your SkyQuote for states where the utility pays less than the retail rate for your solar electricity, click the “Request” button in your SkyQuote to authorize OnSwitch to download your last year of electricity billing data from the utility for OnSwitch to analyze and update your SkyQuote.

How do I maintain my solar system?

Solar system maintenance is minimal. Even cleaning solar panels is not necessary except in 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 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, 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. Your building uses the power generated by the solar system first and then if additional electricity is needed the utility electricity will seamlessly flow through the meter to your building 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 convert that current to alternative current or AC. That conversion is done by inverter equipment. Once converted this electricity is then routed to your electrical outlets for your use.

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 most states your property tax will not increase due to a solar system being installed.

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 OnSwitch and included with your solar system or solar electricity service purchase rather than performing them yourself.

Patching Roof Where Solar System Will Be Installed

Repairing any aged roof sections before the solar panels are installed prevents the need to temporarily relocate the solar panels for roof work after the solar system is installed. OnSwitch will do this inspection and provide customers with any expected repairs and costs as early in your solar purchase evaluation process as possible. Typically these roof repairs are not expensive if the roof is less than 15 years old, though older roofs may need to be fully replaced.

Strengthening Roof Structure Under Solar System

This is necessary when the building structure is unable to hold the additional weight of the solar panels and racking, but is rarely necessary since usually only applicable to very old buildings.

Trimming Trees or Moving Relocatable Obstructions

Sometimes OnSwitch will recommend that trees be trimmed or movable roof structures like antennae or signs be relocated to reduce shadows and maximize the solar production and financial return of the solar system.

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 OnSwitch.

Solar Electricity Service Option

What kind of contract is used for OnSwitch Electricity Services?

The contract is commonly called a Power Purchase Agreement (PPA) and is the primary way businesses contract for solar electricity, having been used by thousands of businesses including the largest corporations over the past two decades. The PPA is a 10-25 year agreement you sign with the solar system owner (one of many national energy system financing companies who specialize in PPA's) to buy the electricity produced by the solar system located on your building's rooftop or on canopies in your parking lot. A such, the only payments you ever make are after the system is installed and operating at your facility and you only pay per kWh at the agreed upon rate, similar to how you pay the utility today but at a lower rate. PPA's can include energy storage and EV charging systems, too.

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 at new mutually-agreed upon pricing for the number of years you'd like.
  • Request the financing company who owns the solar system to remove it from your facility at no charge.

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

You can

  • Purchase the solar system for the price that has already been agreed by you in the PPA agreement's Termination Table, and then add that to the building's requested selling price, or
  • If the solar system owner approves the credit of the new building owner, the PPA can be assigned to the new building owner.

Can I buy the solar system sometime during the PPA?

Yes, you can buy the solar system (and any included energy storage and EV charging systems) starting in Year 6 of the PPA at the price that has already been agreed by you in the PPA agreement’s Termination Table.

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 who have a long and consistent track record of successful business.

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.

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.