When clients contact us about investing in and installing a solar array for their business, organization, or community, they often have many different questions. Sometimes, we hear the same questions again and again, and those are the questions we want to answer today. Let’s explore some of our most frequently asked questions so we can help you discover the answers.
How Do Solar Energy Systems Work?
There are three types of solar energy systems, according to SEIA: photovoltaics (PV), solar heating and cooling (SHC), and concentrating solar power (CSP). Verogy works with photovoltaics (PV) solar systems, which use solar cells to generate electricity. A solar cell has two types of silicon built into it: P-type silicon and N-type silicon. Silicon acts as a semiconductor that can conduct or insulate electrons, depending on the circumstances around it.
When sunlight hits a solar cell, one of four things could happen: the cell could reflect the sunlight, it could absorb the sunlight as heat, the sunlight could pass straight through the cell, or the cell could excite the electrons in the sunlight and convert them into usable electricity. The N-type and P-type layers of silicon in the solar cell generate an electric field that traps electrons between layers, and the sunlight disrupts that field and loosens the electrons. Then the N-type and P-type layers force those loose electrons back into their respective layers. When you connect the layers to a circuit, the electrons’ interaction with the sunlight creates direct current. Then your solar system uses an inverter to run the generated electricity to your building.
How Can You Finance Your Solar Installation?
When you decide to invest in a solar installation, you can finance it through several different options. You can purchase your solar array outright with cash or a solar loan. When you select this option, you keep the installation on your balance sheet, but we maintain your solar panels for you. Purchasing your solar array outright is a good option for you if your business or organization has usable capital and available tax appetite. Additionally, you can take advantage of solar tax credits and incentive programs when you own your solar array outright.
You can also finance your solar installation with a power purchase agreement (PPA). When you enter into a PPA, we own the solar array, and you purchase its generated electricity from us. This option works well for businesses and organizations with little usable capital. However, your PPA electricity prices depend on the prices in the current solar markets, which means the price can change quickly.
Similarly, you can also finance your installation through a solar lease. This financing option is similar to a PPA, but its prices aren’t as volatile. Instead, you pay a fixed, flat payment for the system’s energy during a lease period. The flat payment can help drastically reduce your energy expenses. Once the lease period ends, you can renew your lease or purchase the solar energy system outright. The solar lease option gives you cost-effective access to solar energy without requiring any upfront capital.
What Types of Tax Incentives Are Available?
If you purchase your system outright, you can take advantage of a variety of different tax credits and incentives to help you offset the costs of development, installation, and maintenance. For example, the federal solar Investment Tax Credit is provided to businesses that invest in solar energy systems. This tax credit has given a major boost to the growth of the solar industry in the U.S. You can check the DSIRE database to find out more about solar tax credits and incentives that you may be eligible for.
You can purchase your solar array outright with cash or a solar loan. When you select this option, you keep the installation on your balance sheet, but we maintain your solar panels for you. Purchasing your solar array outright is a good option for you if your business or organization has usable capital and available tax appetite.
Make Your Solar Investment With Verogy
Reach out to Verogy today if you’re ready to invest in a solar installation for your business, organization, or community. We have the solar industry knowledge and experience to help you select the right solar array and the best financing options for your specific energy needs.