Hawaii Energy Connection: Solar, Simplified

Solar

simplified P R E S E N T E D B Y H AWA I I E N E R G Y C O N N E C T I O N Produced by Hawaii Home + Remodeling

A 16-page Guide to

Saving Energy & Money

understand

choose

install

the benefits

the right system with confidence

SOLAR SIMPLIFIED

/ HAWAII HOME + REMODELING 1

2 H A W A I I H O M E + R E M O D E L I N G / SOLAR SIMPLIFIED

Table of Contents

contents 4

10

PV Power (By the Numbers)

Get Hard-Wired for Savings

Get Hooked Up

Money Matters

5

13

Seven Reasons to Install PV Today

How PV Works

Now’s the Time

6

PV Profile

Understand the Basics

14

System Savvy

Everybody Wins with Solar

Seven Questions to Ask Your Solar Contractor

9

15

Meet an EV / PV Family

Six Common Installation Myths, Debunked

Supercharge Me!

Knowledge Is Power

➼ Written , designed and published by Hawaii Home + Remodeling

P U BLISH ER

ART DIRECTOR

E: terryr@hawaiihomemag.com P: 534-7506

E: kristinl@hawaiihomemag.com P: 534-7560

Terry Rollman

Kristin Lipman

W RITER / EDITOR

ADVERTISING DIRECTOR

Sabra Morris Media E: mediamorris@gmail.com

E: michellem@hawaiihomemag.com P: 534-7576

Sabra Morris

Michelle McGuinness

Solar Simplified is published as a supplement to Hawaii Home + Remodeling magazine, January 2013. All contents copyright ©2013 by PacificBasin Communications at 1000 Bishop St., Suite 405, Honolulu, HI, 96813. hawaiihomemag.com. Presented by Hawaii Energy Connection. All photos from thinkstock.com unless otherwise noted. Cover illustration by Marcos Chin.

All tax-credit information was verified and current at press time (Nov. 1, 2012). State and federal tax-credit benefits and terms are subject to change.

SOLAR SIMPLIFIED

/ HAWAII HOME + REMODELING 3

Get Hooked Up

( By the Numbers )

PV Power

Installing photovoltaics (PV) is a win-win for you, the environment and your wallet. Check out the latest facts and figures.

National average cost of electricit y, per kilowat t hour (kWh).

18

$

11-12 C E N TS:

Typical amount spent on electricity by Oahu residents after installing a 5 kilowatt (kW) photovoltaic (PV) system*. A 5 kW PV system can save you up to $214 per month and almost completely wipe out your electric bill! You could use that savings to pay for a week’s worth of groceries, make a car payment, contribute to a college-savings account or fund your retirement.

33.5 cents

68%

Hawaii pays the highest electricity rates in the nation!

Source: U.S. Energy Information Administration, Average Price by State Provider, 1990-2010

about

5

Years:

$33,000:

$90 Typical monthly electric costs for an average Oahu resident with a 2.5 kW PV system. You’ll save an average of $119 on your electric bill. That’s enough money to buy 12 movie tickets or 29 gallons of gas.

Maximum percent of the cost of a PV system that can be offset by tax credits. The state of Hawaii offers a tax credit of up to 35 percent of the actual cost of the system, or $5,000, whichever is less. The federal government offers a tax credit of up to 30 percent of the installed cost of the system.

Percent increase in total PV installations in Hawaii in the second quarter of 2012, compared to the same time period in 2011. Join the ever-growing club: Install PV and watch your electric bill disappear.

Typical length of time it takes for a purchased PV system to pay for itself (through maximum-allowed tax credits and electricity savings). With Hawaii’s high-energy costs, that’s the fastest payback in the nation!

Q: What’s a Kilowatt Hour?

A Kilowatt Hour equals 1,000 watts of power used continually for one hour. It costs a typical U.S. resident 11-12 cents to use 1 kilowatt of electricity for one hour, and it costs a typical Oahu resident 33.5 cents to use 1 kilowatt of electricity for one hour.

Typical amount you can save on your electric bill, over a 10-year period, with a 4.5 kW PV system.

4 H A W A I I H O M E + R E M O D E L I N G / SOLAR SIMPLIFIED

Typical price of monthly electric bill for Oahu residents*

65%

Typical cost of electricity, per kWh, on Oahu. Oahu residents pay about three times the national average and Neighbor Island rates are even higher.

Now that’s expensivE!

$209.82

$131,000:

Typical amount you can save on your electric bill over the 25-year equipmentwarranty period of a 4.5 kW PV system.

*Based on “Effective Rate Summaries” released by Hawaiian Electric Company, Sept. 2012 and typical Hawaii residential customer kWh use per month (600). Includes service fee from Hawaiian Electric Company.

Now’s the Time

7

Reasons to Install PV Today

especially when it comes to your monthly electric bill. Slash your monthly electricity costs today and protect your bill from rising tomorrow by installing PV. Here are seven great reasons to do it now.

Life in paradise costs a pretty penny,

1

|

Hawaii residents pay the highest electricity costs in the nation. electricity cost

typical monthly bill

Hawaii Island

40.7 cents / kWh

$254.69

Maui

34.9 cents / kWh

$218.12

Oahu

33.5 cents / kWh

$209.82

National Average

11-12 cents / kWh

$67.10

| PV could increase the resale value of your home.

6

Source: Based on “Effective Rate Summaries” released by Hawaiian Electric Company, Sept. 2012 and typical Hawaii residential customer kWh use per month (600),. National average source: http://www.hawaiienergy.com/13/get-the-facts

2 | You can reduce your electric bill right away.

A 2.5 kW system can cut a typical electric bill in half, while a 4.5 kW system can almost eliminate that same electric bill.

3 | You can prevent rising electricity costs tomorrow.

About 90 percent of the electricity we use in Hawaii to power our homes and fuel our cars comes from imported oil. The cost of fossil fuels (fuels mostly derived

from oil) is only expected to increase over time.

A properly installed and warrantied photovoltaic system can last up to 30 years or longer. That means you’ll continue to reduce or even eliminate your electricity bill, even if electricity costs rise.

4 | Financial incentives are high (but they probably won’t be around forever!)

The federal income tax credit is set to expire on Dec. 31, 2016.

In addition, “Unlike the

federal tax credit, the state tax credit has no expiration,” says Mallory Fujitani, public information officer and state legislative coordinator for the State of Hawaii Dept. of Taxation.

However, it is always within the purview of the state legislature to amend the law if it believes that the state’s policy of offering a tax credit needs to be modified.”

| Financial help is available for system purchase, and interest rates are still low.

5

Many local banks now offer solar finance plans with competitive interest rates for those who qualify.

A recent study of 72,000 California homes by the Lawrence Berkeley National Laboratory found “… strong evidence that homes with PV systems have sold for a premium over comparable homes without PV systems,” as much as $17,000 more, on average.

| Solar energy is cool, it’s the future, and the future is now.

7

While the phones, TVs, cars and fashionable clothes we buy may improve our lives for a while, not many of these items pay us back over time. The opposite is true with PV. When you invest in a photovoltaic system, you jump on the cutting edge of solar technology.

Your system can pay for itself in five years or less, and it puts even more money in your pocket as the years progress.

SOLAR SIMPLIFIED

/ HAWAII HOME + REMODELING 5

PV Profile

The Sialana family of Ewa Beach stands in front of their home, which is now powered substantially

by PV. Left to right: Son, Micah (17); daughter, Zoe (10); mom, Lynn; dad, Paul; and son, Ian (12).

6 H A W A I I H O M E + R E M O D E L I N G / SOLAR SIMPLIFIED

PV Profile

Everybody

WINS

This West Oahu family worked together to save energy at home. They gained knowledge, substantial savings and one very cool reward.

By Sabra Morris // Photography by Elyse Butler

When 12-year-old Ian Sialana broke the good news to his dad, Paul, they were on a flight back from Maui, where they’d been to visit family and friends for a few days.

“He said, ‘Oh, by the way, we won a KumuKit™,’” says Paul. “I said, ‘Really? You waited until Sunday to tell us?’”

The Sialana family, which includes Paul; mom, Lynn; sons Ian (12) and Micah (17); and daughter Zoe (10), won its photovoltaic (PV) system after participating in Hawaiian Electric Company’s 2011-2012 Home Energy Challenge. As participators in the challenge, the Sialanas joined other families at Keoneula Elementary School in competing with schools islandwide to reduce home-energy usage for a period of six months.

As a challenge bonus, participating families who reduced energy use at home were entered into a drawing for a 1.25 kW KumuKit™ system, courtesy of Hawaii Energy Connection.

The Sialana family was the lucky winner. That day, somewhere over the Islands, Paul learned they’d be returning to Oahu with lower energy bills on the horizon.

Years of Consideration

The Sialanas’ journey to a cleaner-energy home didn’t begin with the 20112012 Home Energy Challenge. In fact, it began three years earlier, when the family started noticing panels appearing on roofs in their Ewa Beach neighborhood.

“Several of our neighbors were installing PV systems. But for us, the price was prohibitive, to say the least,” says Paul. “But we always understood that, as technology improved and prices went down, it was something we wanted to [continue to] take a look at.”

Fast-forward to last year, when a family friend from Micah’s soccer team installed a KumuKit™. “He told me his electric bill was only, like, $20.00 per month,” says Paul. “And when he told us what the price [of his system] was, I said, ‘We’re in the ballpark now.’ So I’d better give these guys [at Hawaii Energy Connection] a call.

“A representative from Hawaii Energy Connection came out to give us an estimate,” Paul continues. “The price was reasonable. But, at that time, we

SOLAR SIMPLIFIED

/ HAWAII HOME + REMODELING 7

PV Profile

also had to replace one of our vehicles.

It was either PV or a car. When both of our cars broke down, we decided we needed to get the car. It wasn’t much of a choice.”

With their PV plans on hold once again, the family turned their attention to the 2011 Home Energy Challenge.

Spurred on by their parents, Ian and Zoe signed the family up.

Months of Conservation

In the weeks that followed, the family became a team, employing energysaving measures throughout the home wherever they could. Everyone took shorter showers, turned water off when brushing teeth and turned unused lights off whenever possible. The family began drying clothes on a clothesline outside instead of in the dryer.

The family also started washing dishes by hand, conserving as much water as possible when doing so, including turning the faucet off in between.

“Now, we use our dishwasher as a drying rack,” says Lynn.

In addition, the family replaced regular power strips with high-efficiency power strips and turned off the A/C whenever possible in favor of using cross-ventilation from outside to keep the house cool.

The Sialanas saved an average of $34 on their electric bill, or about $173 over a five-month period, from October 2011 to February 2012, as a result of their efforts.

The couple agrees that, although the Energy Challenge is over, the family has created habits that will last into the future.

PV Becomes Reality

The Sialanas learned they’d won a five-panel PV system in the Home Energy Challenge drawing. However, instead

 financing made easy

“It’s more affordable than people think. Even if we hadn’t won the award, when you start looking at the numbers, the savings is still there.”

—Lynn Sialana

of simply installing the five panels alone, the family chose to supplement it with five more panels, bringing their system up to 2.5 kW, the size of the original system they had intended to install when they received their first estimate.

Hawaii Energy Connection made the preparation and installation processes easy. “Our friend told us, ‘They [Hawaii Energy Connection] are going to help you through the whole process,’” Lynn says. “We both work, and we just don’t have time to do the paperwork.”

The company delivered. The Hawaii

Energy Connection team helped move the Sialanas’ permitting and financing processes along quickly and seamlessly.

In addition, they helped facilitate the paperwork process with the Sialanas’ neighborhood homeowners’ association. The team also came to the house to do a full assessment of the home’s electrical and structural PV readiness.

Looking Ahead

With their current system in place, the Sialanas look forward to cutting their electric bill almost in half right away. Hawaii Energy Connection estimates that, factoring in the expected rising cost of electricity in Hawaii over a 25-year period, the Sialanas stand to save as much as $77,000 in electricity costs.

“That’s college tuition,” says Lynn.

Not surprisingly, the Sialana family doesn’t want to stop there.

“If we didn’t get the car, we’d be installing 20 panels,” says Paul. Lynn adds that, when the family is ready to install their next 10 panels, their loan officer will likely be able to help them apply for more financing.

“In the future, once the panels are up, we’re hoping to someday get an electric car so we can save even more money on gas,” says Paul.

To compound their savings, Hawaii Energy Connection introduced the Sialanas to its Synergy solar funding plan, which helped them secure a low-interest loan. The family qualified for an 18-month same-as-cash plan, which will allow them to defer the down payment on their solar loan until after they receive their tax credits from the purchase of their PV system. Throughout the installation prep process, the Sialanas were continually surprised at how easy installing PV could actually be. “It’s more affordable than people think,” says Lynn. “Even if we hadn’t won the award, when you start looking at the numbers, the savings is still there.”

8 H A W A I I H O M E + R E M O D E L I N G / SOLAR SIMPLIFIED

Supercharge Me!

EV / PV Family

runs his home and his car on solar energy. Here’s an inside look at why he made the switch, and how he and his family are maximizing their clean-energy potential.

State Representative k. Mark Takai

State Representative K. Mark Takai (center), at home with wife, Sami (right), son, Matthew (left) and daughter, Kalia (foreground).

Why did you decide to go solar at home?

A: “ Hawaii’s electric rates are expected

to soar even higher, so the main reason we got a photovoltaic system (PV) was to protect ourselves against a rising electric bill.”

How much did you save on that first electric bill after installing PV?

A: “We put a 12-panel system on our roof in 2009 and we saved about $180 per month as a result.”

What’s the current size of your system?

photo by elyse butler

A: “We have a 25-panel 4.42 kilowatt

(kW) system now. When we originally got our PV system, we only installed 12 panels so we could maximize state and federal tax credits. In 2010, we installed another 10-panel system in anticipation of the new car. Turns out, we needed three more panels because we needed even more PV production for the car, so we installed those in 2011.”

How much electricity does your car use?

A: “My car runs on about 4 miles per kW, so driving around 50 miles per day would use approximately 12.5 kW of electricity. In addition to the PV that powers my home, I estimate that it takes an additional 12 PV panels to power my car every day.”

Do you ever experience “range anxiety?”

A: “Our car fully charges overnight, and

a full charge gives me around 70 miles.

My daily driving habits usually keep me at 50 miles or under. However, if I drive more than 60 miles, I typically look for the nearest charging station to ‘refuel’ with a few kilowatts.”

Are charge stations conveniently located?

A: “There are actually quite a few

charge stations in town, including one at the state capitol. More stations are going up all the time. However, driving an EV for longer distances still takes some extra planning.”

With the cost of all that PV, are you still saving money?

A: “Yes. Tax credits have offset

some of the cost of our system, and we save dramatically on our electric bill each month. Add in the money we save by not paying for gas and I estimate we will save enough to pay off our system within two years. Also, we take advantage of HECO’s time-of-use rates so we pay a cheaper rate for electricity between 9 p.m. and 7 a.m. After we pay off our system, the electricity we use and the miles we drive with our Nissan Leaf will be almost totally free!”

SOLAR SIMPLIFIED

/ HAWAII HOME + REMODELING 9

Money Matters

Hard-Wired for

savings

Consult these frequently asked questions to maximize the financial benefits of your PV system.

Q: I’ve heard I can have solar installed for zero dollars down. That sounds awesome! Is it right for me?

A: That depends on what your potential installer means by “zero dollars down.” There are a few ways to defer or eliminate your down payment on a photovoltaic (PV) system and, while all of them allow you to save money on your electric bill right away, some are more financially beneficial in the long run than others.

two common ways in which you can install a PV system for zero down:

1. Purchasing the system using a loan from a private lender such as a bank or credit union. You may qualify for a zero-down loan option through your bank. Each financial situation is different, however, so be sure to consult your lender for details.

2. Entering into a Power Purchase Agreement often called a “PPA” or “Solar PPA.” These programs often function like a lease, allowing you to install PV on your roof, most often, without paying anything upfront. Under a PPA, you don’t purchase and own the PV system. Instead, the company you “lease” from owns the system and you pay a monthly fee to keep the system on your roof.

Power Purchase Agreements(PPAs)

allow you to save on your energy bill, but not as much as if you owned your system outright. You’ll always pay a monthly fee to “lease” the system, which will offset your electricity savings. Other fees may apply, such as maintenance fees, which could further erode your savings. In addition, “With a PPA or lease, the consumer does not own the system and does not get the tax credits,” says Lisa Burgin, director of communications for American Savings Bank.

1 0 H A W A I I H O M E + R E M O D E L I N G / SOLAR SIMPLIFIED

the bottom line: Purchasing a system is the best option if you qualify for a good finance program. That’s because you can reap generous tax credits on that purchase and receive more in electric bill savings over time.

The Big Picture:

Going solar is always better than doing nothing.

You’ll save more by entering into a PPA, or dramatically more by purchasing a system, than you would by not installing PV at all.

Money Matters

lo Kee p i t

c al :

: PPAs es o f o t yp that keeps ii, w t e r a a ne There l PPA , or o ate of Haw h ic t A loca ars in the s te PPA , wh be ll ta to tax do n out-of-s x credits se and a s Hawaii ta tate. Choo s w f allo ed out o w hen filter a local PPA le. possib

Q: How can I maximize the state and federal tax credits available for my PV purchase?

A: First, consult a tax expert to

discuss your individual situation.

Then, talk to your solar contractor.

He or she should have the knowledge and resources to help you maximize your tax-credit potential each year. Tax-credit terms are subject to change, so it’s important to choose a solar contractor who understands the current tax climate and stays up-to-date on the latest information.

Ca-Ching!

for more information For more information on the state tax credit, visit dsireusa.org and click on the state of Hawaii on the U.S. map. Then, select “Personal Tax Credit.” Or, call the State of Hawaii Department of Taxation’s Taxpayer Services Branch at 808-587-4242.

For more information on the federal tax credit, visit energystar.gov and click on “Tax Credits for Energy Efficiency.”

 remember:

Each taxpayer’s situation is different.

Contact your tax preparer to determine how the tax credts will affect you before purchasing and installing a PV system.

Q: How good are Hawaii’s financial incentives?

A: “The financial benefits of

PV are often more favorable in Hawaii than any other U.S. state*,” according to the Interstate Renewable Energy Council. State and federal tax credits can offset the cost of a PV system by up to 65 percent of the installed cost. Because Hawaii pays some of the highest electricity rates in the nation, monthly electric-bill savings is also among the highest in the country. These facts make Hawaii the nation’s brightest solar hot spot.

Many lenders offer financing programs that are interest free for 18 months. Some finance plans also allow you to use your tax credits toward your purchase.

iMy installer says I can roll the cost of my lanai addition or roof replacement

into the “cost of installation” on my PV system. How does that work?

A: It doesn’t. Costs you incur by making structural changes or electrical upgrades to your home in order to prep your PV system for installation are not considered “installation costs.” Therefore, home improvements you make in preparation for your install are not eligible for state and federal tax credits. When creating your PV budget, be sure to allow for extra improvement costs.

SOLAR SIMPLIFIED

/ HAWAII HOME + REMODELING 1 1

Money Matters

Where should I spend

$25,000?

Compare the return on investment of PV against other popular types of investments.

Efficiency First

1. A 5-Year CD: 1% Return Ð

Q: Is PV still a good investment, even if the state tax credit is reduced?

A: Absolutely. In Hawaii, unlike most other states, solar electricity is already less expensive than grid power, even without incentives.

The cost of solar photovoltaic systems has come down dramatically in the past five years due to efficiencies in the manufacturing process, competition and installation practices. That means the typical payback of a PV system will not change that much, even as incentives are reduced.

Factor in the federal tax credit, which will be around until December 2016, and the payback, even without state tax credits, is still five years or less.

2. A 1-Year CD: 0.3% Return Ð 3. A Money-Market Account: 0.1% Return Ð

The less electricity you use every day,

the less PV you’ll need to purchase in order to offset your home’s energy costs.

Maximize your PV investment by choosing efficiency first.

Download Hawaiian Electric’s “Power to Save,” “101 Ways to Save” and “Energy Tips and Choices” booklets at heco.com for hundreds of energy-saving ideas. Click on “Residential Services” then “Energy Publications” to download.

4. A

2.5 kW KumuKit ™ PV system: 15% Return

The return on investment (ROI) for PV is more than 5 times the ROI of these traditional investments.

PV is one of the best investments you can make right now!

Items 1-3: Source: Bankrate.com. Based on 2012 interest rates, calculated over a 10-year period. Item 4: Source: Hawaii Energy Connection.

How much energy do you use?

Perform your own Internet-based

home-energy audit at heco.com by clicking on “Residential Services” and “My Home Energy Check.”

Good to Know: When it comes to PV, you don’t have to spend it

all in one place. Purchase a small system now and start saving on your electric bill right away. Then, add to your system each year as your finances allow, and watch your savings increase over time.

Q: I want to purchase my system! How, and where, can I get financial help?

A: For more information on financing your system and contact information for local banks, head to the State Energy Office’s “Developer and Investor Center” at http://energy.hawaii.gov/ developer-investor/financing-and-incentives-for-renewable -energy-projects/private-fundingresources-in-hawaii.

1 2 H A W A I I H O M E + R E M O D E L I N G / SOLAR SIMPLIFIED

Understand the Basics

e x t ra

How PV Works

Photovoltaic technology is based on sound (and pretty awesome) science. But you don’t have to be a braniac to understand how PV works for you.

c redi

W it h H a w N e t - En e a ii rg c r e d a n Ele c t y M e t e r f o r a i t s y o u r r ic C o m p i n g , n e a you p y excess nerg y bi ny ll e r u s e i o d u c e d b le c t r ic i t y nag iven ut didn’t mon th .

t!

Here are the basics: A

A: The sun emits photons, a fancy term for a piece of solar energy.

(Albert Einstein figured that one out a few years ago).

B C

G

B: Photovoltaic panels on your roof turn those photons into direct-current (DC) electricity.

D

F E

C: Inverters turn DC electricity into alternate current (AC) electricity for use in your home.

D: A main breaker box distributes the electricity throughout your home.

E: A Net-Energy Metering (NEM) meter, installed by Hawaiian Electric Company, automatically detects the excess electricity you produce but don’t use.

F: At night, or during cloudier times, you automatically take electricity back from the utility grid.

G: Electricity you don’t use is sent back to Hawaiian Electric for full retail credit.

Invest in Your Inverter Inverters convert the electricity the sun produces into usable electricity for your home. But not all inverters are created equally. Inverters come in two basic types; 1) microinverters / optimizers and 2) central inverters. Here’s the difference: Microinverter / Optimizer (New)

Each individual device attaches to each individual solar panel.

One central inverter connects to multiple solar panels, or sometimes an entire system.

Each module optimizes for each panel, collecting the most solar energy possible per panel.

The PV system can only collect as much electricity as the panel that collects the least amount of solar energy will allow.

What’s the difference?

The system maximizes total energy input, no matter how much shade or sun each panel gets during a given time of day.

If one panel is subject to temporary shading, your entire system’s energy production decreases.

Which is more reliable?

When one module goes down, the rest of the system continues to work.

When the central inverter goes down, the entire system goes down.

How it’s attached

How it works illustration by marcos chin

central inverter (old)

SOLAR SIMPLIFIED

in a powerful nutshell Microinverters collect and convert more usable energy from your PV panels than central inverters do (up to 12 percent more in shaded conditions, according to a recent study by the National Renewable Energy Laboratory). Because microinverters stand to save you more energy and money over the life of your system, they’re worth the higher up-front cost.

/ HAWAII HOME + REMODELING 1 3

System Savvy

Six Questions to Ask Your Solar Contractor So, as with any large purchase, it’s important to do your homework. Start here, by asking these six key questions.

Not all solar contractors are created equally.

1

| Are you licensed?

In Hawaii, the installation company needs to have a C-13 electrical contracting license (which also includes a C-60 solar license) that is issued by the state.

A licensed journeyman electrician is required to be on site to perform the electrical portion of the installation.

2

| Are you insured?

Your contractor should have liability insurance. That way, if any unforeseen accidents happen during your installation, you won’t be liable for the damages.

3 | Do your products and installation come with a warranty?

Your installation company should offer two types of warranties: a workmanship warranty with a typical duration of 10 years, which covers the physical portions of the device, and a production warranty with a typical duration of 2025 years, that covers the power output of the device.

4

| Who supplies your panels?

The panels your company supplies should be provided by a reputable supplier with proven longevity. That way, if

one of your panels needs to be replaced, you’re more likely to get the parts you need. Look for brand-name companies such as LG, Sanyo or Panasonic that make lots of products (not just PV) and have successful histories making equipment for a wide range of industries.

5

| Who does the installation?

Avoid third-party installers. Doing so will help you avoid the “blame game” that can ensue if something goes wrong.

6

| Do you install quality roof

flashing?

Your contractor should professionally flash and seal all roof penetrations that occur during your install. This prevents roof leaks, and is standard practice.

avoid the paper chase!

Some contractors offer turnkey programs that monitor, and even help you complete, your paperwork.

Such contractors know the ins and outs of obtaining the required agreements, and can eliminate guesswork, thereby saving you valuable time.

Your Installation-Day Checklist:  Homeowner’s Association Approval

Make sure you’ve taken the steps outlined by your association before installation day, and that you have received approval in writing.

 Local Permits

You’ll need to obtain both building and electrical permits, as required by state law. Obtaining the proper permits will help ensure that your system is installed in a safe manner, and will also help you to prevent structural and / or fire hazards.

 Utility Net Energy Metering (NEM) Application

Before you begin installing your system, make sure you’ve submitted your NEM application to the public utility. The utility will review and send a letter advising you and your contractor to go ahead with the install.

iChoosing the right solar contractor

Choosing the right solar contractor will maximize your PV investment. Here’s a three-part plan for finding the contractor who’s right for you. • Ask around. Talk to trusted neighbors and friends who have installed PV and ask for recommendations on PV companies to approach. • Obtain more than one bid. Remember, the best solar installer might not always be the least expensive. • Check for up-to-date licenses and complaints using Hawaii’s Consumer Resource Center. Find the phone number for your local branch at Hawaii.gov/dcca/quicklinks/consumer_resouce_center.

1 4 H A W A I I H O M E + R E M O D E L I N G / SOLAR SIMPLIFIED

Knowledge is Power

5

Common Installation Myths Debunked

With so much information on PV floating around, misinformation is bound to crop up. We’ll help you separate the myths from the facts.

M inimal c e : t enan PV M ainrly installeodmore

e n e P r o p req uire w it h t h ls ay pane uick spr ce in a on aq . than se every y clean t ho s o a t , e l w hi

amount of innovation happening, with solar, it’s a lot slower,” says MJ Shiao, senior analyst for Solar Markets at Greentech Media (GTM) Research.

Compared to the money you’ll save over time by installing your system now, you stand to lose money waiting for small technological gains.

Myth: My neighborhood association won’t allow me to install solar.

fact: By law, your neighborhood

“The process for installing a typical residential or small individual-business solar system should be faster and easier than ever.” —Peter Rosegg, Hawaiian Electric Company Myth: My neighborhood doesn’t

get enough sunlight to produce electricity consistently. fact: Any and all areas on the island of Oahu get enough average sunlight year-round to produce electricity consistently. However, you may need slightly more panels to offset your electricity use if you’re in a less sunny place.

Myth: It’s always better to go with high-efficiency panels.

fact: Standard-efficiency panels are

the most economical choice for

almost everyone. High-efficiency panels produce more electricity per square inch than standard-efficiency panels making them the best choice for homeowners with limited roof space.

You don’t need a more expensive highefficiency panel if you have enough roof space for standard-efficiency panels.

Myth: PV technology is changing

so rapidly that current systems run the risk of becoming outmoded. fact: PV technology isn’t changing that rapidly. “Whereas with phones and computers, there’s a significant

association can’t prevent you from installing solar. “The Hawaii State Legislature has acted to protect residents’ rights to install solar energy devices,” says Mark Glick, energy administrator for the Hawaii State Energy Office. You can read the law at http://www.capitol.hawaii.gov/ hrscurrent/vol03_ch0121-0200d/ HRS0196/HRS_0196-0007.htm.

Myth: I’ve heard that my local circuit might reach capacity for solar and that soon, people in my neighborhood won’t be able to get any more solar installations. fact: If you are thinking of installing a small system (10 kW single inverter on a single phase transformer) there should be no problem with so called “solar capacity” or “grid saturation.” “The process for installing a typical residential or small individual-business solar system should be faster and easier than ever,” says Peter Rosegg, of Hawaiian Electric Company. “We are adding staff and resources to help people who decide to go solar to get there quickly.”

You can learn more by visiting goingsolar.heco.com.

SOLAR SIMPLIFIED

/ HAWAII HOME + REMODELING 1 5

METER PX00000000 S KWH/DAY 0

$ /DAY

0

0 0 31.6 7.56 35.7 8.19 A KumuKit™ typically pays for 36.1in just 4 to 5 years!

8.24 itself 34.9 7.97 (the fastest payback in the USA) 34.2 7.91 30.0 6.90 33.0 7.33 35.0 6.86 31.1 5.85 31.9 5.86 31.4 5.74

051310 05522 P1 G

TOTAL AMOUNT DUE $16.26

Your Electric

Utility PO Box Honolulu,0000 HI 96800

ACCOUNT NUMBER 0000-0000-000

AMOUNT ENCLOSED

S

D

O

I

R

E

P

L

L

I

B

T

N

U

O

M

KUMUKIT CUSTOMER BILL BALANCE FROM PREVIOUS BILLING PAYMENT - THANK YOU BALANCE PR CURRENT IOR TO BILLING T O T A L A M O U N TE LDEUCET R I C S E R V I C E D U E 09/01/11

07/23/11

A

RNM RESIDENTIAL SERVI CE NM F R O M 08/08/11 T O 09/07/11 31 D A Y S M T R # P X000000000 KILOWATT HOURS CURR P R E V I EO NU TS RR EE AA DD II NN GG 68566 DIFFER 68566 B MULTIP ENCE 0 I USAGE LIER 1 L 0 L

L

I

A

T

E

D

CUSTO INIMU NON-F MER M NERGY M CHARGE BASE UEL E ENER Y INTER FUEL N C R E A SG E 2009 I N T E R I M II NCR PBF S IM C H A R G E A S E 2007 ENERG UR C O S T AE D USTMENT I R P C OY S R E C O EJ RY TOTAL T F O R S EV RVICE

SERVICE ADDRESS

000000 P H O T O V O L T A I C S T * $16.26 16.26$ 0.00 16.26 $ 16.26

$ 16.26 0.00 0.00 0.00 0.00 0.00 0.00 0.00

$16.26

40

PLEASE MAKE CHECKS PAYABLE TO:

A U 36 ELECTRIC USAGE PROFILE FOR V METER PX00000000 S DATE G 32 KWH AMOUNT A DAYS KWH/DAY 09/07/11 K $/DAY 28 0 G $ 16.26 W 31 08/08/11 0 H E 24 0 0 07/10/11 16.26 29 948 0 06/08/11 226.35 P 20 30 0 1072 P 31.6 245.99 E 7.56 30 05/09/11 35.7 R R 16 8.19 1119 04/09/11 255.04 31 1116 O 36.1 03/07/11 254.97 D 12 8.24 32 1060 34.9 245.41 A F 7.97 31 02/07/11 34.2 Y 8 868 7.91 I 01/08/11 199.96 29 1092 30.0 12/06/10 242.42 L 6.90 4 33 1014 33.0 198.74 7.33 29 E 11/08/10 35.0 0 S 6.86 934 175.73 10/08/10 30 O N D J F M A M J J A S 1021 31.1 09/07/10 187.25 5.85 32 972 2010 31.9 177.74 MONTHS 5.86 31 2011 31.4 5.74 WHEN PAYING IN PERSON, PLEASE PRESENT BOTH PORTIONS PLEASE DETACH AND RETURN 051310 05522 P1 G THIS PORTION WITH YOUR PAYMENT

Your Electric

Utility PO Box Honolulu,0000 Telephone HI 96800 000-0000 Fax Number(808) (808) 000-0000

ACCOUNT NUMBER

0000-0000-000 DATE DUE

OCT 01, 2011 KUMUKIT CUSTOMER 000000 PHOTOVOLTAIC ST * OAHU PV HI 96700-5555

TOTAL AMOUNT DUE $16.26 AMOUNT ENCLOSED PLEASE MAKE CHECKS PAYABLE TO:

Your PO BoxElectric Utility Honolulu, 0000 HI 96800 11 000067450031 00000000000 00000016700

Your Electric Utility Gotta Get a KumuKit™ PO Box 0000 and begin saving money on 1 Install a KumuKit™ Honolulu, 96800 your electricHI bill immediately.

2 Delay the cost of the system with our same-as-cash program. 3 Use the available solar incentives to pay for a large portion of your system.

With our unique Synergy Solar Funding, we’ll find a way to finance the balance–so that your energy savings pay for most or all of your monthly payments!

000000000 00000016700 Call for a free on-site, no-pressure, consultation and we’ll show you just how affordable solar can be.

www.kumukit.com 808-524-7336 SOLAR ELECTRICITY

1 6 H A W A I I H O M E + R E M O D E L I N G / SOLAR SIMPLIFIED

Contractor #C31046