SOLAR-WISE FREQUENTLY ASKED QUESTIONS
Q: Will our building insurance change?
Answer: Adding a solar energy system to your building may impact your insurance policy, but the specific changes depend on your provider and coverage. Here are key considerations:
Coverage for Solar Panels: Solar panels are often considered part of your building’s structure. Most insurance providers include them under property coverage, but you should confirm this with your insurer.
Liability Coverage: If your solar system is ground-mounted or accessible, your insurer might suggest additional liability coverage to protect against injuries related to the system.
Premium Changes: Your premiums may increase slightly to account for the added value of the solar system. However, these costs are typically minor compared to the savings solar energy provides
Before installation, contact your insurance provider to discuss the changes and update your policy as needed. This will ensure your system and building are fully protected.
Q: Do we need to insure the panels ourselves?
Answer: In most cases, you do not need to insure the solar panels separately because they are considered part of your building and covered under your property insurance. However, there are some key points to consider:
Property Insurance Coverage: Verify with your insurance provider that the solar panels are included in your existing policy. Most insurers treat panels as part of the building’s structure, similar to a roof or HVAC system.
Third-Party Ownership: If your system is leased or installed under a Solar Energy Procurement Agreement (SEPA), the third-party owner typically insures the panels. Confirm this arrangement with the system provider.
Warranty and Manufacturer Protections: Many solar panels come with warranties that cover defects and some types of damage. These warranties may reduce the need for additional insurance.
It’s a good idea to consult with your insurance provider before installation to ensure your policy aligns with your system’s value and any unique risks. This proactive step will help protect your investment.
Q: Will this affect the warranty on our roof?
Answer: Adding a solar energy system to your roof could impact your roof warranty, but this depends on the type of warranty, the installation process, and the condition of your roof. Here are some key considerations:
Manufacturer’s Warranty: Most roofing material warranties cover defects or failures in the materials themselves. Solar panel installation may void this warranty if roof penetrations or modifications are made outside the manufacturer’s guidelines. Using an installer certified by the roofing manufacturer can often prevent warranty issues.
Workmanship Warranty: If your roof was installed by a contractor offering a workmanship warranty, the warranty might be affected if another contractor modifies the roof. Check the terms of the warranty to see if it covers post-installation modifications like solar panels.
Solar Installer's Responsibility: Reputable solar companies often guarantee their work and offer a warranty that covers any roof damage resulting from the installation. This can provide an added layer of protection.
No-Penetration Mounting Systems: For flat or TPO roofs, some installers use ballast or no-penetration mounting systems that minimize the risk of voiding warranties. For pitched roofs, using flashing and proper sealing techniques can protect the roof and maintain its warranty.
To ensure your roof warranty remains intact, communicate with both your roofing contractor and solar installer. Confirm that your installer uses best practices and adheres to manufacturer guidelines. This proactive approach can help safeguard your investment in both your roof and your solar energy system.
Q: Should I be worried that the panels will harm the roof?
Answer: When installed by a qualified professional, solar panels should not harm your roof. Proper mounting systems, such as sealed penetrations for pitched roofs or non-penetrating systems for flat roofs, protect against damage. An inspection before installation ensures your roof is in good condition to handle the panels.
Solar panels can even extend your roof’s lifespan by shielding it from sunlight and weather. Reputable installers also provide warranties covering any damage caused during installation. By choosing an experienced installer and addressing any roof issues beforehand, you can minimize risks
Q: Should we replace our roof before adding solar?
Answer: It depends on your roof’s age and condition. Solar panels are designed to last 25–30 years, so it’s best to have a roof that can match that lifespan. If your roof is nearing the end of its useful life or needs repairs, replacing it before installing solar can save time and money later.
A professional inspection can help determine if your roof is in good shape or if replacement is necessary. Addressing this upfront ensures you won’t need to remove and reinstall the panels for roof work in the future. Some lease or Solar Energy Procurement Agreement (SEPA) providers will include a one-time no-cost removal of your solar energy system to allow for a roof replacement during the term of your agreement.
Q: What is the warranty for solar panels?
Answer: Solar panel warranties typically include two components:
Product Warranty: This covers defects in materials or manufacturing. Most solar panels come with a product warranty lasting 10–25 years, depending on the manufacturer.
Performance Warranty: This ensures the panels will produce electricity at a specified efficiency level for a certain period, usually 25–30 years. For example, a panel might guarantee at least 80–90% of its original output at the end of the warranty period.
A Workmanship Warranty may also be provided by your solar installer and covers issues related to the installation process, such as roof leaks or improper mounting. These warranties typically last 5–10 years but vary by installer.
Q: What are additional costs we should consider?
Answer: While solar systems are low-maintenance and have a low cost-of-ownership there are some additional costs you should consider. Many if not all of these costs will often be covered if your system is procured through a lease or Solar Energy Procurement Agreement (SEPA) including:
Maintenance: Cleaning panels as needed to remove dirt and debris, typically once or twice every five years.
Inverter Replacement: For systems with string inverters, this cost will be uncured after 10–15 years. For systems with micro-inverters, this cost will be incurred after 25 years.
Battery Costs (if applicable): Replacements every 10–15 years.
Roof Work: Panel removal and reinstallation if roof repairs are needed.
Insurance: Possible premium increases.
These costs are typically minor compared to the savings solar provides over its lifespan.
Q: Can we add on to the system at a later date?
Answer: Yes, most solar energy systems can be expanded later, but it’s essential to plan for future additions during the initial installation. Key factors to consider include:
Inverter Capacity: Ensure your inverter can handle the additional panels, or plan to upgrade it later.
Roof Space: Verify enough unshaded space is available for expansion.
Electrical System: Your building’s electrical setup may need upgrades to support a larger system.
Q: What are the benefits of adding battery storage?
Answer: Adding battery storage to your solar energy system offers several advantages:
Energy Independence: Store excess solar energy for use during the evening or cloudy days, reducing reliance on the grid.
Backup Power: Batteries provide power during outages, keeping essential systems like lights and refrigeration running.
Cost Savings: In areas with time-of-use rates, you can use stored energy during peak hours when electricity is most expensive.
Maximized Solar Usage: Batteries allow you to use more of the energy your solar system generates, reducing exports of excess solar energy to the grid.
Battery energy storage systems can also often be added to a solar energy system in the future, though it is important to discuss this desire with your installer. If you are planning to add a battery in the future it's a good idea to plan ahead! Your solar system must be compatible with battery storage. Check if the inverter is battery-ready or if it will need to be upgraded to integrate with a storage system. Ensure there’s enough physical space for the battery installation, whether indoors or outdoors. Battery storage adds resilience and flexibility to your system, making it a valuable addition for many congregations.
Q: Will the solar panels lose their effectiveness over time?
Answer: Yes, solar panels lose effectiveness gradually, but the decline is minimal. Most panels experience a degradation rate of about 0.4%–1% per year, meaning they retain 80%–90% efficiency after 25 years. High-quality panels often have warranties guaranteeing performance levels for 25–30 years. Proper maintenance, such as keeping panels clean and ensuring no shading, can help maximize their performance over their lifespan.
Q: Will I still be connected to the grid?
Answer: Yes, most houses of faith with solar energy systems remain connected to the grid. You will still receive a power bill from your existing utility company! Remaining connected allows your building to:
Access Power at Night or on Cloudy Days: When your solar panels aren’t generating electricity, the grid provides the energy you need.
Sell Excess Energy: If your system produces more electricity than your building uses, some utilities offer credits or payments for excess solar power.
Ensure Reliability: The grid serves as a backup, ensuring a steady power supply even if your solar system isn’t meeting demand.
If you choose to add battery storage, it’s possible to operate independently during outages, but most systems still benefit from grid connectivity for consistent energy access.
Q: Will the panels still produce electricity on cloudy days?
Answer: Yes, solar panels still produce electricity on cloudy days, though at a reduced level. Depending on the cloud cover, production may drop to 10%–30% of the usual output. However, modern solar panels are highly efficient and can capture diffused sunlight to generate power. Adding battery storage can help store excess energy on sunny days to use during cloudy periods, ensuring consistent power availability.
Q: Will we export energy back to the grid? Could we get paid for this?
Answer: In Georgia, if your solar energy system produces more electricity than your building consumes, the surplus energy can often be exported back to the grid. Georgia Power, the state's monopoly utility, offers compensation for this excess energy through its Renewable and Nonrenewable Resources (RNR) program. Under this program, customers are credited at the Solar Avoided Energy Cost Rate plus an additional $0.04 per kilowatt-hour (kWh) for the surplus electricity they supply to the grid.
It's important to note that Georgia does not have a statewide net metering policy, and compensation rates and solar metering policies vary from utility to utility. Some utilities even impose discriminatory fees on customers who have solar energy systems and these fees can sometimes completely wipe out any savings from a solar energy system. Therefore, it's advisable to consult with your local utility provider to understand the specific terms and rates applicable to your situation.
ALL ABOUT GEORGIA BRIGHT & SOLAR ENERGY PROCUREMENT AGREEMENTS
Q: What Is Georgia BRIGHT?
Answer: Georgia BRIGHT is a wholly owned subsidiary of the Capital Good Fund, a non-profit Department of Treasury-Certified Community Development Financial Institution (CDFI) operating in 14 states and the recent recipient of a $156 million Environmental Protection Agency ‘Solar for All’ Grant. A credible Solar Energy Procurement Agreement (SEPA) provider, Georgia Interfaith Power and Light (GIPL) works with Georgia BRIGHT to assist congregations with long-term solar leases.
Q: What happens if my SEPA provider goes out of business?
Answer: In the unlikely event that the SEPA provider ceases operations, several outcomes are possible:
Transfer of Agreement: Typically, the SEPA and ownership of the solar system would be transferred to another entity, such as a financial institution or another energy service company. This ensures the continuation of services and maintenance as per your original agreement.
Continuation of Terms: The terms of your SEPA, including payment rates and maintenance responsibilities, would remain unchanged under the new provider.
System Maintenance: The new owner would assume responsibility for system upkeep, ensuring its continued performance.
Buyout Options: The SEPA includes provisions allowing you to purchase the solar system during the term of the agreement.
Cancellation Options: In the event of the SEPA provider’s default, property owners may also elect to terminate the agreement.
Q: What happens if the SEPA installer goes out of business?
Answer: If the installer contracted by the SEPA provider goes out of business, the impact on your solar energy system will be minimal, as the SEPA provider is primarily responsible for the system’s performance and maintenance. Here’s what to expect:
SEPA Provider’s Responsibility:
The SEPA provider retains ownership of the system under the SEPA and is responsible for its operation, maintenance, and performance guarantees.
If repairs or maintenance are needed, the SEPA provider will contract another qualified solar installer to handle the work.
System Warranties:
Equipment warranties (e.g., for solar panels, inverters, or other components) are typically provided by the manufacturers and remain valid, regardless of the installer’s status.
Labor warranties specific to the installation remain valid through your SEPA agreement with the SEPA provider, which would arrange for another installer to address any issues.
Installation Records:
The SEPA provider retains all system design and installation records. These ensure that any future work or upgrades can be done efficiently, even if the original installer is no longer involved.
Continued System Performance:
Your SEPA guarantees the energy output of the system, so the provider remains responsible for ensuring the system functions as promised, even if the installer is unavailable.
Q: What is covered in terms of maintenance and operations?
Answer: Under a SEPA, the provider owns the solar system and handles the cost and work of all maintenance and operations, including:
System Monitoring: Continuous remote monitoring and issue troubleshooting.
Preventative Maintenance: Regular inspections and panel cleaning to ensure efficiency.
Repairs and Replacements: Repairs for any faulty components, such as inverters, wiring, or panel connections. Replacement of damaged parts, often covered under equipment warranties provided by the manufacturer.
Performance Guarantees: The SEPA provider ensures that the system meets agreed-upon energy production levels. If performance falls short due to system issues, your nonprofit is compensated at the agreed-upon SEPA rate at regularly scheduled “True-up” periods.
No Cost Removal and Reinstallation: At one time during the term of the SEPA, the SEPA provider will cover the cost of removing and reinstalling the solar energy system to allow for building roof repairs and/or roof replacement.
Insurance: Coverage for risks like weather damage or theft, and liability for accidents.
End of Term: At the end of the SEPA term, maintenance and operations responsibilities may transfer to you if you choose to buy the system outright.
Q: What happens at the end of the SEPA agreement term?
Answer: At the end of the SEPA agreement (typically 25 years), you can either purchase the system outright for a minimal fixed amount (often under $500) or have the system removed at no additional cost. If choosing to purchase the system, it may be wise to enter into a maintenance agreement with your chosen solar installer to ensure that the system continues to operate without issue.
Q: Can we buy the system at any time?
Answer: Yes, most SEPA providers offers the option to purchase your solar energy system at any time beginning at the start of year seven at the mutually agreed-upon “Fair Market Value.” “Fair Market Value” is determined and included in your SEPA agreement for every year of the term of the agreement.
It is important to note that when a purchase option is executed, the property owner then assumes all responsibility to operate and maintain the system for the remainder of the system’s life—including all costs associated with replacing older equipment.
Q: Are there any costs not covered by the lease that we should anticipate?
Answer: The biggest benefit of a SEPA, especially through Georgia BRIGHT, is the ability to access the cost-saving benefits of solar energy without the high upfront cost of ownership. However, that does mean that under the agreement, you cannot claim the federal solar Investment Tax Credit (ITC), as you do not own the solar system. The SEPA provider retains ownership of the system and is eligible for the tax credit.
Providers like Georgia BRIGHT do pass much of the tax credit savings onto property owners in the form of a lower SEPA rate and through lower “Fair Market Value” purchase-option rates. While you don’t directly benefit from the tax credit, the SEPA structure allows you to access affordable solar energy without the upfront costs of ownership.
Q: Are there any costs not covered by the lease that we should anticipate?
Answer: In a SEPA, most costs related to the solar energy system are covered, including maintenance, monitoring, and equipment replacements. However, you’ll still be responsible for any utility costs not offset by the solar system, including connection fees and energy used beyond the system’s production.