So you want to install solar panels in your home, but you have some questions. What about the cost, the permits, installing meters, how do you find an installer, and are they even trustworthy? The whole process can be daunting. We at HahaSmart know that and are here to help with a guide to installing residential solar. It’s not a complete list of what to expect, but it is a good place to start.

Where to Start?

This is the first step. Before you do anything else, you need to know how much power you use, when you use it, and how much it costs. As many power companies have different rates for different times of the day, it is important to know how and when you use power.
There are many ways to get this information, but one of the easiest is to contact your electric utility and ask for your interval data, or if you have an account with the utility you can look this information up online.

How Much Will a Solar Installation Cost, and is There Help?

Yes, there is help with the cost. In terms of help, the Federal Government’s tax credit is the biggest way to reduce the cost of going solar. For example, if you are installing enough solar panels to generate 6KW of power, and the cost is $15,000 for parts and labor. If you apply the $4,500 you receive as a tax write off, then it has the potential to turn a $15,000 investment into a $10,500 investment.
The cost of panels might go up a little this year, because of imposed tariffs on solar panels imported from China, but there are also many domestic companies producing panels, and as the cost of production continues to fall, the price is expected to level off again by the end of the year. 
A good certified installer will give you a reliable price quote, with a complete breakdown of parts and labor needed to finish the job.

Does the Type of Solar System Affect the Process?

The short answer is yes. 
The long answer depends whether you are connected to the grid, or if you are installing solar for an off-grid property that has no access to outside power.
If you are connected to the grid, you will need less equipment and you won’t need storage batteries. When you are generating power you use, you own and sell the leftover power back to the utility, what is known as net-metering. At night, when the panels aren’t active, you use the regular power grid with credits for the power you generated to the system.
The installation of an off-grid system needs storage, and those batteries can vary in cost depending on how much storage you need. Unless your home is in a remote area that has no grid access, you don’t need batteries. 

DIY Solar Installations

In the age of YouTube videos teaching people how to do everything, it might seem simple to install solar panels, but it’s not. It’s actually dangerous and you can electrocute yourself if you don’t know what you’re doing. This is why we recommend using a certified installer. Those installers know what they are doing, they know about electricity, and they know how to tap into the grid without getting electrocuted, which is a lot different than watching videos of someone installing solar panels and doing it yourself.

Permits? Not to Worry

Basically, contractors and your certified installers will handle the heavy lifting needed to get permits signed, but depending on your utility, you may need to sign a few papers. A good example in California is with PG&E. They make solar panel owners sign an Agreement and Customer Authorization form as well as a Standard Net Energy Metering Interconnection Application.
By singing the Authorization Agreement you are authorizing your utility to release data about your usage to the solar company. By signing the Net Metering Agreement you agree to install only the solar equipment contained in the application and to operate it only in accordance with the instructions from the utility.
In this agreement, you are also indemnifying the utility against any damage to its grid or other loss caused by your solar generation equipment. We looked and couldn’t find a case where solar panels damaged the grid, but it is good to be aware of these clauses.

Who Installs the Net Meter?

Most utilities install the meter themselves, or they have authorized contractors to do the installation. In some cases, the utility uses the solar company’s licensed electrician to upgrade the meter. Your authorized installer will walk you through this process and any costs associated.  As the net meter works, it measures both the kilowatt hours delivered to your home, as well as the kilowatt hours overproduced and fed back to the grid.

What Happens If I Generate More Power Than I Use?

This is where the net metering comes in. It is important to note that net metering is not available in every state, but it is available in 38 of the 50 states.Basically, net metering works like this. If you generate 50 kWh more power than you use in a month, the excess power will cover the first 50 kWh you imported from the grid the next month. 
At the end of each year, there is what is known as an annual true-up.This means if you have excess energy credits at the end of the year the utility can do one of three things, depending on the net metering rules in each state:

• They can pay you out for them at the full retail rate (it’s rare, but it does happen).

• They can pay you out for them at an avoided cost rate of 3 to 4 cents per kWh
  (this is the case with California, Massachusetts, Utah, New York, New Jersey and most of the other leading solar states) Basically, an avoided cost rate is a wholesale rate the utility would pay a normal fossil fuel burning power station for power.

• They can cancel the excess credits with no compensation to you. This is less common but you should know if your utility does this.

So there you have it. Installing solar power is not as hard as you thought. Going solar is easier than ever and there are lots of certified installers out there. Come check out our price comparison tool at HahaSmart. We are also able to help you find the perfect certified installer, and because we work with the distributors directly, we are also able to help you save money on the cost of equipment.