Solar Series: Getting Started with Solar
Additional information for this post provided by Tara Lynn Blum
This is the first entry in our Solar Series of blogs where we will guide YOU, the consumer, through the world of solar, helping you learn where you fit, and about the benefits of adopting a solar PV microgeneration system on your home.
Let’s Get Started
You’ve seen the news, you’ve heard the chatter - solar is having a moment. But how exactly does it help you? When someone decides to transition from traditional electricity to renewable energy (utilizing an alternative source such as solar to power their home), they become known as a micro-generator. This can be done by installing solar PV (photovoltaic) panels on the roof of their home, garage, or another area of their property. By doing so, the benefit to the consumer is two-fold. They are making an investment in a service that is better for the environment and will reduce their carbon footprint. They are also making a financial investment that could pay dividends if they take advantage of micro-generator programs offered by electricity retailers that pay them a fair price for the excess electricity they generate and export to the grid, such as the Solar Club.
There are lots of things to love about investing in solar, from reducing your impact on the environment to the lowering of your electric bill, to potentially increasing the resale value of your home. Naturally, there are things for each individual to consider before going ahead with solar: the startup costs can be high, and it isn’t ideal for every roof type. The most important thing to consider is what type of energy user you are looking to be by installing solar on your home? In part one of our multi-part series on helping you understand the exciting world of solar, we have pinpointed three distinct types of solar consumers so you can determine where you fit best.
Electrical Needs Only
The majority of homeowners looking to get into solar will probably find themselves in this category. It’s a perfectly suitable starting point; a chance to dip your toe into the solar market. Consumers in this tier won’t be generating enough electricity to completely offset all of the utility costs for their home, but will have a portion of their electricity bill covered each month (as electricity prices in Alberta continue to rise, this will become even more important).
It’s not uncommon for consumers in this tier to make the decision when buying a new house to have the solar install happen during the move-in process, or to work with a homebuilder that works with solar.
A common misconception among consumers hesitant to jump into solar is that they will not be in their house long enough to see the value of the commitment. It is important to understand that the value stays with the home as an investment that can act as a selling point when searching for potential buyers.
While the data isn’t quite in for Canadian properties, according to Solar Alberta, a 2019 study out of the US which showed that homes with solar PV sell for about 4.1% more, is likely also the case in Canada. And the studies found that it’s not just solar systems that have this impact on resale value; energy efficient homes also sold for 8% more than less efficient homes. This is most likely because energy efficiency saves homeowners more money over the long-term, and reduces the energy upgrades they will have to devote their time to.
While installing solar on your home is a major investment, moving away from your solar equipped home should not be viewed as impossible. With solar energy costs declining 90% since 2009 and government grant programs available to offset the initial investment cost, the prospect of moving on from a solar home has become much less daunting.
Tara-Lynn Blum is an Edmonton resident who listed her Net Zero micro-generator home for sale in the spring. As a unique way to make her home even more desirable to buyers, Blum wants to transfer the credits from her solar exports that will accumulate on her account over the summer to the new homeowners. As a strong advocate for solar technologies, she wants to ensure that the new owners of her home can truly experience the benefits her system has to offer. To do this, Blum is working closely with her electricity retailer, Spot Power.
“It is important to me that the future homeowners purchase the house with the credits created over the summer,”said Blum. “The summer is when the majority of the credits are created that ease the demand in the winter, that way the value from the solar production stays with the home.”
Taking Solar to the Max
Been dreaming of solar? Always wanted it but only now getting around to it? You will likely find yourself in this category. Consumers who are eager to maximize the use of solar on their homes likely want to know how much they can get and how big they can go. The only real limit is roof space and the system capacity (the system must have a capacity less than 150kW as defined by the Alberta Microgeneration Regulation). If you do intend to run as much solar as you can on your home, obviously you want to make sure you are well researched and willing to prioritize quality of the product over the cheapest option.
For some, maxing out solar capability on your home can be a badge of honor! Which, if you are eyeballing this tier and identifying with it, you already know. Likely consumers here will have other energy efficient features in the home that will coincide nicely with solar (such as a solar water heater, window insulation, smart light bulbs just to name a few), and are itching to flip the switch to fulfill their home’s renewable energy potential.
Under Alberta’s Microgeneration Regulation, micro-generators receive credits for the electricity they produce but do not consume. Small micro-generators are credited for the electricity sent back to the grid at their monthly retail rates. If you have taken your solar system to the max, you will not only see a reduction in your electricity consumption, but will also likely enjoy watching the solar credits from your exported electricity build up on your utility bill over the summer months.
The added benefit to maximizing your solar PV system, is that it will also offset a portion of your distribution and transmission (D&T) fees on your monthly electricity invoice. Not only are you generating credits that can be applied to the costs for consumption (the deregulated charges), but some D&T fees are usage-dependent. This means that as your usage decreases, so too does the proportion of your bill that is related to D&T. To put this into perspective, the regulated charges, which include distribution and transmission, account for approximately 60% of most invoices.
Net-Zero
If you are converting to solar, establishing a “Net-Zero” home is what you're probably aiming for, but the logistics of achieving it can be tricky, although not totally unattainable. Having a net-zero home means the total amount of energy being used by your home is equal to the amount that is being produced on site. You are benefiting from using the grid and a feedback loop that takes and gives energy, that leaves you only having to work with one electrical bill.
Seeing as the size of one’s roof can only be utilized so much in regards to how big it is, to become net-zero you’d really have to incorporate other ways of sustainable living as well. This means you’re no longer connected to gas, rather finding alternative ways to heat your home in the winter months such as large windows for solar space heating and solar thermal collectors for domestic hot water, or using external energy from a wood stove.
The game plan for a net-zero home is typically to import more electricity in the winter months and export more in the summer, resulting in 0 kilowatt-hours over the year.
The Perks of Being a (Solar) Flower
While it’s easy for us to sit and talk about solar PV microgeneration systems, it’s another thing entirely to see it for yourself. This year’s Eco-Solar Home Tour was a virtual experience that allowed you to take a peek inside the homes of some of Alberta’s solar adopters. As a virtual tour, there was no charge and no need to travel! The event may have passed, but there are video presentations of some of the homes that took part available in the aforementioned link for your viewing pleasure.
The Solar Club was a proud sponsor of the Eco-Solar Virtual Home Tour because we believe in helping Albertans find ways to reduce their carbon footprint when it comes to electricity. And now that you’ve identified which type of solar customer you are, make the most of your investment by joining the Solar Club, and together we can reduce our impact on the environment.
The Solar Club was created to help customers capitalize on their investment by installing a solar PV system on their homes, farms, commercial buildings, and irrigation fields. As a member of the Club, you’ll gain access to special seasonal electricity rates (that you can switch between at the drop of a hat, and at no extra charge), 5% cash back on all energy imported from the grid (paid once annually), and free green REC offsets. The only cost to join the club is a donation to your local food bank or a charity of your choice.
The Solar Club is a program where WE pay YOU for the surplus of green electricity you produce and feed back to the grid.
To learn more about the Solar Club, click here.
Stay Tuned for Part 2
In our next entry in our Solar Series of blogs, we will hear from an expert on Solar and they will tell us more about its impact on consumers bills, how it can reduce costs and its effect on the environment.