Community Solar – Green Coast https://greencoast.org Renewable Energy and Green Living Mon, 06 Feb 2023 17:38:38 +0000 en-AU hourly 1 https://greencoast.org/wp-content/uploads/2021/07/green-coast-favicon.jpg Community Solar – Green Coast https://greencoast.org 32 32 The Truth About Free Solar Panels https://greencoast.org/free-solar-panels/ Mon, 06 Feb 2023 17:38:32 +0000 https://greencoast.org/?p=3732 There are plenty of advantages when it comes to utilizing solar energy to power our homes. The cost of installing them, however, can often turn many potential solar users away.

A rise in misleading marketing tactics and scams offering “free solar panels” has led many homeowners to believe they can receive a fully functional solar system for free. You may have seen such advertisements, but is there such a thing as free solar panels? Or is there a catch?

The good news is that there are plenty of unique financing structures available to get low or no cost solar panels installed. Read on to find out everything you need to know about obtaining free solar panels for your home.

Why go solar?

As the world seeks concrete ways to fight climate change, renewable energy sources have become more vital. Solar energy is becoming increasingly popular for residential and commercial buildings alike as a reliable source of renewable power.

Today’s solar panels are more efficient than ever before. Solar energy offers plenty of health and environmental benefits that go beyond fighting climate change, from preserving water to reducing the use of fossil fuels.

rooftop solar panels on a suburban house
Going solar not only helps fight climate change but also saves money on utility bills

Not only are they great for the environment, but solar panels can also save their owners money on utility bills over time and even increase the value of a home. The average owner of a solar panel system could easily save an estimated $25,500 to $33,000 on electricity during the lifetime of the system.

However, if you’ve been shopping for the right solar panel system for your home or business, you’ve likely come across advertisements for free solar panels – these ads imply that a company will install a system for free. But is this really the case?

Is it really possible to get free solar panels?

To draw the attention of potential buyers, solar companies often market ‘free solar panels’. Before considering this offer, it’s important to understand what it really means.

The offer of free solar panels does not refer to a company installing solar panels at your house and never charging you for solar power again.

The cost to install a solar panel system can vary widely, depending on the size of the system: a small one can cost as low as $5,000, while large, high-end installations can cost upwards of $40,000. These costs also vary state to state in the U.S.

However, there are a variety of different ways to get solar panels installed at your home without having to pay this hefty cost upfront.

Free solar panels for home use

While it’s unlikely that solar panels will be gifted to you, there are a few ways to go solar with no upfront cost.

Solar panels are often referred to as free because a variety of different solar programs are zero down. This means that the solar panels are installed with no upfront cost, and then the owner pays for the use of the solar panels each month.

a male worker installing solar panels on the roof
Zero down financing methods imply that the solar system is installed with no upfront costs

The reason this is so cost-effective (and ends up being free in the long run) is that your monthly payments are expected to be much lower than your previous utility bills when the grid supplied your electricity.

There are a couple of options for going solar without paying large sums of cash upfront. And, with the right program, your monthly repayments will be lower than your previous energy bills.

Solar leases and power purchase agreements

There are two primary agreements that homeowners can pursue to pay zero upfront costs on their solar panel systems. This can typically be achieved through Power Purchase Agreements (PPAs) and solar leases.

With a PPA, an energy company installs a solar system on your rooftop and sells you the energy that you use on a per-kWh price.

Solar leases are similar in that the energy company carries out the installation, but your fixed monthly fee is based on an estimate of the amount of power that you will use.

Are solar panels actually free when using a power purchase agreement?

PPAs, along with solar leases, have many zero down plans, meaning that you do not have to pay an upfront cost. All you need to pay is your monthly payments.

So how does it work?

Homeowners enter into a contract with a solar company and rent their solar panels for a period of around 15-25 years. After the panels have been installed on your roof, you then purchase electricity off the utility company.

Do solar leases actually save you money in the long run?

With solar leases and PPAs, there really is no upfront cost to install a solar panel system. In addition, the rate that you pay for energy is usually lower than the rate of typical energy bills. In this way, solar leases can bring in savings in the long run.

Leasees also do not have to pay to maintain or repair the panels, because they are technically owned by the solar company. It’s important to note that solar panels do not technically belong to the consumer in these agreements, but to the company leasing them out.

This situation presents some disadvantages, one of which being that you can not reap the benefits of owning your system such as tax rebates or incentives. These benefits go to the owners of the panels – the solar company.

A PPA or solar lease is usually easier to arrange, although they require a good credit score. It’s important to note, however, that not all states in the U.S. allow PPAs. There are currently fifteen states that allow PPAs.

a map of the USA that shows states that allow PPAs
PPA eligible states

How do solar loans differ?

Solar loans are considered to be a better financing option when it comes to maximizing the return on investment for a solar panel system. Solar loans allow you to borrow money from a lender to purchase your solar system, which you can repay over time with your energy savings.

Solar loans are generally preferred, because they grant ownership of the system. However, interest payments chip away at energy savings for approximately the first seven years until the loan is paid off.

The amount of time a solar loan takes to pay off ultimately depends on factors like the upfront cost, size, energy efficiency, and interest rates associated with your solar system. After the designated time period, owners get to keep all of their energy savings.

As the proud owner of your solar panel system, however, you can receive all of the tax benefits and incentives available from the government with a solar loan.

What federal and local solar incentives are available?

Once you are approved for a solar loan and own your system, there are several U.S. incentives available to you, depending on the state you live in.

The federal solar investment tax credit is available to all U.S. homeowners and is one of the best incentives to pursue. This credit provides solar panel owners with a 30% rebate on an entire system, which is beneficial if your tax bill is higher than the tax benefits that you could receive through this system.

Additional programs on the state level include Solar Renewable Energy Credits (SRECs) and performance-based incentives.

Eligible houses with solar systems that can produce more than one megawatt-hour (MWh) of electricity can claim SRECs. In certain states, SRECs are sold separately from the physical electricity that your solar panels produce. They are essentially vouchers that prove that the electricity from your solar panels is renewable.

Performance-based incentives are rewards given for producing a certain amount of solar energy. These incentives reward solar owners for choosing renewable energy.

It’s key to note that these federal and state-wide incentives can be combined, meaning you can benefit from both federal and state incentives to help offset the costs of going solar.

What kinds of solar loans are available?

There are a few different kinds of solar loans available to homeowners, depending on where you live.

Secured loans

Secured loans are often more affordable than unsecured loans because they have lower interest rates and are tax-deductible. However, this type of loan (for example, a home equity loan) does use your home as collateral, so you need to be sure that you can pay off the money.

An alternative to a home equity loan is an FHA Title 1 Secured Loan. This has a government guarantee, and instead of repossessing your home if you do not make the repayments, the outstanding amount is paid upon selling your house.

Unsecured loans

Unsecured loans may cost more, because there can be additional fees, the interest is higher, and you have no access to tax reductions. Similarly to credit cards and other loans, however, your home will not be used as collateral.

The penalty for non-payment is the negative impact on your credit card score.

PACE loans

A Property Assessed Clean Energy (PACE) loan is a straightforward financing option that is available to residents of California, Missouri, and Florida. PACE loans differ from solar loans as they tax assess your property.

Your payments for your solar system will show up along with your other property-related taxes on your tax assessment. Homeowners can benefit from this type of financing because, oftentimes, the first payment is not made for six months.

Your home is the only collateral on this type of loan, and it does not include any of your other assets. This means that they can be a little bit more expensive than other types of solar loans.

All in all, solar loans and leases are zero down. The monthly energy rates are lower than getting your electricity from the grid as usual. If you get a solar loan, once it’s paid off, thanks to the sun, your electricity really is free!

Community solar projects

Community solar is another great option for people who want to utilize solar energy with no upfront cost. Homeowners can simply sign a subscription agreement that says you will subscribe to a community solar project.

Then, the power of that facility will get credited to your electric bill as an offset. These programs are often a win-win, as they allow you to start saving money right away.

Free solar panels for seniors and low-income families

Solar panels are no longer just for the wealthy! Low-income families can also benefit from PPAs/solar leases and solar loans because there are no upfront costs, and savings are made every month compared to paying normal energy bills.

There are some specific low-income solar programs and initiatives happening across the United States which provide additional support for those on low incomes.

These are a few entities that provide free solar panels:

  • Grid Alternatives is a non-profit organization that offers several programs, such as:
    • Solar Works DC, a program that trains community members to install solar panels. During their training, solar systems are installed for free on the homes of low income residents;
    • Energy for All is a program for low-income homeowners in Colorado, California, and Washington D.C.
  • Some government grants are available in Boulder, Colorado.
  • The California-based Single-Family Affordable Solar Homes Program has installed and interconnected over 9,600 PV systems, and referred over 10,922 low-income homeowners to the utilities’ Energy Savings Assistance (ESA) programs.
  • The Mass Solar Loan program in Massachusetts offers discounts on solar loans for low income residents.

Similarly to low-income families, the best option for seniors wanting to go solar is to take out a solar loan or solar lease. Bear in mind that as a senior, if you are not paying tax, you may not receive the tax rebates that make solar loans such a great option.

Frequently asked questions about free solar panels

Let’s dive into the answers for a few of the most frequently asked questions on obtaining free solar panels.

How do solar panels work with my monthly electric bill?

Electricity generated using solar panels is fed back to the main grid. These systems will often use a net meter, which monitors the usage of electricity and keeps track of the units fed back into the grid.

How many solar panels would it take to power a house?

The average home in the U.S needs between 16 and 20 solar panels to cover its electric bills. Three main factors impact how many solar panels you need: your energy usage, the sunlight in your area, and the solar panels you choose.

Is the U.S. government giving away free solar panels?

We found no evidence of a federal program that provides free panels and incentive checks. Some homeowners may be eligible for tax credits related to solar panel installation, but that is not equivalent to a cash payment. We rate this claim False.

Can I sell my home in the middle of my solar lease or loan?

Sometimes, if you are mid-lease or loan, you can run into difficulty when putting your house up for sale.

If you financed your solar PV system with a secured loan, such as a home equity loan, you will need to pay off the rest of the balance before you sell, since your property was used as collateral for the loan.

If you financed your solar PV system with an unsecured loan (one that is not tied to your property), you can sell your home before paying off your loan — but you will still be responsible for paying off the loan.

Can free solar panels be installed on any home?

Not all homes are necessarily suitable for solar panels. If your roof is shaded all year round, you will not generate enough energy to power your home and you may need to purchase additional energy from the grid.

This means that solar power may not be the right option for your home, and you are better off trying to find a green energy provider if you want to power your home with more sustainable energy.

PVWatts is a useful tool that allows you to calculate how much energy your home could generate from solar power.

The final verdict on free solar panels

Although ‘free solar panels’ are not 100% free for most people, it is easier than ever to get solar panels today without paying a penny upfront. Solar leases/PPAs, solar loans, and community solar allow homeowners to install solar panels on their houses with zero down financing or no capital cost.

The bottom line is, although the description of free solar panels is a little misleading, if you take out a solar loan, solar panels are an investment that is sure to pay off over time.

Green Coast is a renewable energy and green living community focused on helping others live a better, more sustainable life.

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Solar Farm Land Requirements: Top 7 Tips for Farmers, Ranchers, and Landowners https://greencoast.org/solar-farm-land-requirements/ https://greencoast.org/solar-farm-land-requirements/#comments Sun, 05 Dec 2021 08:27:00 +0000 https://greencoast.org/?p=2404 If you’re like many farmers, ranchers, and landowners, you’re experiencing our climate crisis firsthand in undesirable ways. Drought, extreme heat, and flooding are wreaking havoc on your very means of survival: your land.

The situation is so hopeless for some that drastic measures such as selling their property seems to be one of the only solutions remaining on the table.

Fortunately, there is an alternative.

Have you considered leasing your land as a solar farm?

In this article, you’ll find out everything you need to know about solar farms as a way to create a steady income from your land for 25-50 years. 

Let that sink in for a minute.

Meeting the solar farm land requirements could set you up for early retirement today! Or maybe not. It all depends on a number of factors.

Here you’ll discover:

  • Advantages and disadvantages of leasing your land for solar energy production
  • Solar farm land requirement details, rules, and regulations
  • Best of all: Your compensation! 

It’s all here in one blog post.

Our in-depth analysis on all the essentials about solar farm land requirements concludes with a list of the top 7 tips for farmers, ranchers, and landowners thinking about leasing their property to a solar developer or solar storage business.

What is a solar farm?

You’re used to seeing “amber waves of grain” billowing in the breeze across acres and acres of farmland as far as the eye can see.

Now just imagine rows upon rows of hundreds or hundreds of thousands of ground-mounted solar panels, often with adjoining buildings that house immense batteries to store the power generated by those photovoltaic (PV) modules for later use.

solar farm

Also called solar parks, plants, fields, or power stations, solar farms are becoming commonplace throughout the world. As countries, states, and municipalities transition toward phasing out fossil fuels as energy sources, they are actively looking to expand clean energy capacity — namely, solar and wind energy — in their jurisdictions.

This is where you, as a farmer, rancher, or general landowner, come into the picture. Solar developers want you to partner with them in solar projects that generate electricity. 

Types of solar farm

There are two main types of solar projects that solar developers are actively pursuing right now all over the United States:

1. Utility solar farms

In the case of solar farms consisting of thousands or hundreds of thousands of PV modules on your property, the developers will sell the electricity created by the solar panels to a public utility in urban and suburban areas. In rural settings, the power will go to an electric cooperative. 

In these cases, the electricity generated by sun energy hitting the PV panels travels on the electric grid for widespread use by consumers or corporate entities located far from your farm.

Alternatively, the developers will sell the electricity to large corporations, institutions, or university systems that have massive demands for power in centralized settings. They also want to purchase renewable energy instead of electricity generated from fossil fuels. 

2. Community solar farms

Solar developers could also sell the electricity created on your land to locally organized groups of individuals who become subscribers to a community solar program. These people may not have the means or space to purchase their own rooftop solar system, but still wish to participate in the renewable energy revolution. 

Community solar members purchase shares of the energy created on your solar farm. Others interested in solar energy may enter into power purchase agreements (PPAs) with public utilities at a fixed cost for a certain length of time. 

Westmill Solar Park
Westmill Solar Park is is one of the world’s largest community-owned solar power stations.
Source: Wikimedia / MrRenewables

Typically, utility solar power stations are huge in comparison to community solar farms. This means that your property — whether big or small — could be a candidate for leasing a solar farm.

How much land do you need for a solar farm?

Solar farms can take up a few acres of land or tens of thousands. There are many reasons for the wide differences that we’ll explain in this section. 

The size of a solar farm defines how much electricity it creates. The bigger the solar farm, the greater the power output.

In fact, instead of using a land measurement to describe the size of a solar farm, they are classified according to how much electricity they can generate from the sun. This quantity is called their capacity to generate electricity. Capacity is measured in watts, the standard unit for electrical power.

Sample calculation for determining the size of a solar farm

To illustrate how the size in acreage corresponds to the size in wattage to a solar farm, here is a sample calculation. Using it, you’ll be able to predict the largest solar farm size that your property could reasonably service.

To start, think of something more familiar: a rooftop solar array

For an average American family using 900 kilowatt hours (kWh) per month, (or 30 kWh/day), the solar system would be sized at about 7.5kW. This estimation assumes full sun directly hitting all the panels for 4 hrs./day. (We determine the size by dividing 30 kWh by 4 hrs.) Such a system is large enough to cover approximately all of household energy demands.

Note: In reality and to guarantee that their home energy needs are met, homeowners may opt to increase their calculated system size by 15-20% to account for:

  • Occasional lack of full sun 
  • Panel inefficiency 
  • Energy losses in transmission and DC to AC conversion 
  • Module degradation over time.

To figure out how much roof space you need for the PV panels producing 7.5kW, assume each kilowatt requires 100 sq. ft. This is the standard area used in calculations of this sort. 

So, you’ll need 100 x 7.5 = 750 sq. ft. of roof space to house a 7.5kW residential solar system.

When it comes to solar farms, everything is calculated in a similar fashion but on a much grander scale. 

For instance, a 5 MW (megawatt, where 1 MW = 1,000 kW) solar farm would require a minimum of 100 x 5,000 = 500,000 sq. ft. 

Given the equivalence of 1 acre = 43, 560 sq. ft., that works out to be about 11 ½ acres needed for a 5 MW solar park.

Note that’s just for the panels. Figure in an additional 8-10 acres more to house other solar system hardware plus the space needed between rows to avoid shading (and consequent power loss) as well as space for periodic array maintenance. 

Waldpolenz Solar Park
Waldpolenz Solar Park is divided into blocks with additional space to house centralised inverters.
Source: Wikimeadia / JUWI Group

That brings the total for a 5 MW solar farm to 11.5 + 10 acres = 21.5 acres. This is a conservative estimate.

Other sources suggest 6-8 acres for each megawatt of power produced is needed to build a profitable solar farm.

Note that as PV module technological improvements result in higher panel efficiencies, fewer acres per megawatt will be needed.

To give you a better idea of the type of solar power station that could operate on your land, consider a community solar farm. These days, it’s typically 1-10 MW in size. A utility project may be sized at 25 MW up to 1 GW (1 gigawatt = 1,000 megawatts).

Here’s a table of information that gives you a better idea of how much land is required for solar farms of various capacities. The data are derived from a National Renewable Energy Laboratory (NREL) report.

Notes about the table: The “ac” written after the wattage unit stands for alternating current. This refers to the electricity that has already been transformed from the direct current (DC) electricity produced by the PV array. AC current is necessary for integration with electric grid power lines.

Fixed panels do not move along with the sun. Single- and dual-axis trackers move the PV modules up and down and from left to right during the day in order to capture the maximum amount of sunlight all the time. CPV is an advanced solar technology. 

Table 1. Solar farm land requirements in the United States, as measured by megawatts (MWac) of electrical power generated

Technology Average direct land use (acres/MWac)Average total land use (acres/MWac)
Small PV
(>1MW, <20MW)
5.98.3
Fixed5.57.6
Single-Axis6.38.7
Dual-axis,
flat panel
9.413
Dual-axis, CPV6.99.1
Large PV (>20MW)7.27.9
Fixed5.87.5
Single-Axis9.08.3
Dual-Axis CPV 6.18.1

How much does it cost to set up a solar farm?

According to the latest national average cost figures from the Solar Energy Industries Association (SEIA) taken from their second quarter (Q2) report of 2021, the turnkey installation cost of non-residential and fixed tilt utility PV ranges between $0.77 to $1.36 per watt.

By comparison, a residential rooftop or ground-mounted solar system costs between $2.50 and $3.50 per watt. When buying in large quantities for solar farm projects, solar developers save on equipment costs.

Generally, solar developers pay a total installation cost of $3 million per megawatt to build a solar farm (excluding the cost of land). This amounts to about $500,000 per acre.

For a quick return on investment, solar developers are usually unwilling to build a solar farm under 1 MW in capacity. However, for land that is optimally suited to yield a quick return on investment, they may consider it. See below for more on what makes your land ideally suited for a solar farm.

Solar farm lease rates

Granted your property adheres to all necessary solar farm land requirements, the typical solar farm lease rate varies between $600 – $1,200 per acre for every year of your contract. 

If you’re able to hire a savvy lawyer who will tirelessly advocate for you during contract negotiations with a solar developer, you could make sure annual rent increases are included as well as adjustments for inflation.

If your lawyer’s negotiating skills are outstanding — or the solar developer is desperate for your land — adding in partial royalty payments would increase your income even more. 

Factors that affect solar farm lease rates 

How much money you get for leasing your land for a solar farm depends on several factors. Here are the most important.

1. Interconnection proximity

If your property is located near transmission or distribution lines or a substation, that makes it super easy — and cheap — to send the power a solar farm on your property generates to the electric grid.

Two caveats:

  1. The line or substation voltage is close to the voltage that your farm’s capacity delivers;
  2. The line has available injection capacity to absorb what your solar farm sends to it.

2. Suitability of your land for a solar farm

Solar developers scout out flat, clear land as ideally suited for a solar farm. This means less than 5° of slope, but more may be acceptable if it’s facing south.

There shouldn’t be trees or buildings that can obstruct sunlight or cause shading issues. Nor should there be waterways.

Having a major road or two adjacent to or running through your property will make it easier for construction vehicles to access your land.

solar farm during the winter
Solar companies are looking for flat land with little to no wetlands

A large plot of land (hundreds of acres) is often more valuable on a per acre basis than a smaller one if a solar developer is looking to build a huge solar power station. 

However, if they wish to build numerous small solar parks in a particular region due to local tax incentives that encourage the creation of community solar projects, a small land parcel will be perfect.   

3. Market supply and demand for solar farms

Of all the major factors that influence solar farm lease rates, this one is most likely to evolve over time. Changes may happen on short notice, propelling solar developers to hunt out suitable land for solar farms and get signed contracts quickly.

If your state or county recently announced its goal for increasing renewable energy in a Renewable Portfolio Standard (RPS) within a certain time frame, solar developers will be working fast to achieve that mandate.

Sometimes, the RPS will accompany tax incentives for solar projects, making solar farm projects even more attractive to both developers and farmers.

Or, a large corporation may release a Request for Proposal (RFP) to solicit bids from solar developers in a specific region because of their intention to build a large-capacity data center that runs only on renewable energy.

Finally, a public utility may announce an upgrade to or new construction of its infrastructure in a certain area. Solar developers will act rapidly, looking to secure commitments from local farmers, ranchers, or landowners to build solar farms on their properties.

Advantages of solar farm leasing

There are many advantages for farmers, ranchers, and general landowners if they meet solar farm land requirements and lease their property for solar farming. Here are the major pros for solar farm leasing:

  • Guaranteed a steady passive income
  • Long-term financial security
  • Does not have a negative impact on your property’s value in rural areas
  • Supports local economy through green jobs creation
  • Boosts local governmental services arising from the additional property taxes paid by the solar developer
  • Reduces fossil fuel consumption for home or commercial electricity
  • Aids in achieving U.S. energy independence

Disadvantages of solar farm leasing

There are several disadvantages when leasing your property as a solar farm after you’ve been approved by a solar developer for satisfying solar farm land requirements. Here are the major ones:

  • Your property taxes will likely increase because you may lose your Current Agricultural Use Value (CAUV) status if you stop growing crops.
  • Switching from agricultural to commercial land use could result in tax penalties for you.
  • The amount of money your land could generate for you over 25-50 years through traditional agricultural activities could actually work out to be more than the rent paid to you for solar energy. 
  • If the solar company goes out of business before your lease is up, you could be stuck with costly PV module and cement ballast disposal before you can begin farming again. (Learn how to combine solar power generation with farming in our guide to Agrivoltaics).
  • During the exploratory phase of a solar farm project, extensive testing on your land could result in significant crop damage that you’re left to repair or remove.
  • Unless your property is well-maintained during the length of your lease, noxious weeds growing around and under the PV panels could spread to adjacent properties, angering neighbors.

See the next section for tips on how farmers can reduce their risks when leasing their land for solar power stations.

Top 7 tips for farmers about solar farm leases

While there are several economic advantages to farmers when leasing their land — after meeting the solar farm land requirements — for solar projects, it’s important to guard against the risks you may encounter. 

When beginning the process, in most cases, you won’t ever need to fill out applications and actively recruit a solar developer, assuming you satisfy the solar farm land requirements. They will come looking for you! 

There is a huge demand for solar energy but not enough land to situate all the PV modules on. Your land is a precious commodity to solar developers. They have much to gain from you and want you to sign on with them.

Unfortunately, if you don’t take all the necessary precautions, you could literally lose everything.

Here are the top 7 tips for farmers about solar farm leases to keep yourself in a good financial position from start to finish.

  1. Get a lawyer who understands the risks incurred by landowners who lease their land as a solar farm. They will ensure that the written contract between you and the solar developer will protect your interests from beginning to end. Preferably hire someone with knowledge and experience in solar farm projects. Your attorney will make sure that certain wording in the contract that gives the upper hand to the developer is avoided. It must not, for instance, require you to relinquish your land in any case or give “easements” to the developer — whatever that means!
  1. Insist on the creation of an escrow account for the solar project such that the developer must maintain a minimum balance at all times that will cover the complete removal of PV panels, equipment, and cement ballasts at the end of the lease. 
  1. Make sure that the written contract contains — at a minimum — clauses to the effect that the solar developer is responsible for paying: (1) property taxes beyond what you’d pay as a farmer; (2) crop damage during any time during the project; (3) maintaining the areas under and around the panels to reduce noxious weed spread. 
  1. Be sure that you’re entering an agreement between you and a bonafide solar developer. Thoroughly investigate their background, project history, reputation, and financial solvency before choosing a solar developer. The developer wants to form a long-term working partnership with you. They want everything to go smoothly and everyone to benefit. By contrast, land brokers or land agents simply want to buy or rent your property. They’re not interested in what happens to you after you sign on the dotted line.
  1. Don’t sign anything before speaking to your lawyer! Be aware that the developer — even at an initial “exploratory” meeting — may first request that you sign what’s termed a solar option (not a solar lease). The solar option is legally binding. It does not contain an option for you to leave the deal without incurring negative consequences. It’s just an option for the solar developer to use the land.
  1. Search out the advice of an agricultural economic advisor before you decide. Are you sure that over 25-50 years, the rent from solar leasing will be more than what your land could create in other ways?
  1. Field multiple offers from different solar developers before deciding on one. Remember that they want something you own. Let them compete for it! Compare bids with your lawyer. Search out solar industry professionals for their input, too, before making a final decision.

Key takeaways on solar farm land requirements

Farmers, ranchers, and landowners in search of a predictable way to receive passive income should determine if they meet the solar farm land requirements for leasing a solar project on their property.

The advantages gained from satisfying the minimum of 6-8 acres of solar-ready land per megawatt needed to construct the smallest of community solar farms may outweigh any disadvantages as detailed in this article. 

One hundred sixty or more acres would satisfy the solar farm land requirements for a larger (20 MWac minimum) utility-scale solar power station.

But each case is unique. Search out legal advice before going all in.

With our top 7 tips for farmers concerning solar leasing after you’ve met the solar farm land requirements, you’ll be well on your way as a partner in a quintuple win/business opportunity for you, the solar developer, the public utility, consumers, and the planet.

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7 Top Solar Energy Questions to Ask: Get the Answers You Need https://greencoast.org/solar-energy-questions-to-ask/ https://greencoast.org/solar-energy-questions-to-ask/#comments Mon, 23 Sep 2019 10:57:05 +0000 https://greencoast.org/?p=3449 When thinking about installing solar, you are often bombarded with salespeople, installers, financiers and more to push you to a decision. That might lead to an impulse decision. We are here to help provide the right questions to ask. These are some of the most important solar energy questions to ask when thinking about installing solar.

7 Best Solar Energy Questions to Ask: Get the Answers You Need

You might be thinking to yourself should I go solar? That’s a great consideration as solar energy costs have declined rapidly in recent years. Solar is becoming the way to produce and consume energy of the future.

When installing solar, you are facing a long-term commitment or a large upfront capital expenditure. In order to make the right decision, you have to ask the right questions to a solar company.

This will lead to an optimal outcome for you or your business.

Who is Involved in the Solar Installation Process?

The whole solar installation process can be a long-one. You will end up dealing with multiple people during the full start to finish process of installing solar.

How Do I Choose a Solar Company?

You can start out by doing a rough calculation of the financial benefits of solar energy by downloading our solar ROI calculator. In order to choose the right solar company, you should vet the local service providers in your area.

Once you call and let them know that you are interested in installing solar, you should ask for references or people that you can contact about their work.

Always consider 2-5 different solar companies. Each one is a bit different and you’ll want to ensure you find someone with top reliability, performance and customer satisfaction.

Consider using interviewing some larger players in the space as well as local installers. Here are some of the most well-known solar companies in the world:

  • Vivint Solar
  • First Solar
  • Tesla / SolarCity

Inquire about solar panels or use our list of the best solar panels to buy. You might save money by buying the solar panels on your own and then have an installer simply ensure they are properly mounted on your roof or land.

Here is an analysis of how to determine if you should lease or buy your solar panels.

Top Questions to Ask Your Solar Company

Here are some of the most important questions to ask when considering solar energy installation.

Questions to Ask A Solar Panel Salesman

Before you purchase a solar panel, you will most probably engage with a solar panel salesperson. These are the top questions to ask a solar salesman.

1. How Does The Solar Panel System Work?

If you are new to this type of energy or don’t have much knowledge about it, this should be the first question. A solar system is made up of connected solar panels that absorb rays from the sun and convert it to electricity.

The panels are made in such a way that when the sun rays come into contact with the surface of the panels, the solar cells convert them into DC (Direct Current) electricity.

Since this form of electricity is not usable in most homes or businesses, an inverter transforms this direct current, into alternating current (AC).

The AC electricity is now ready for use in our businesses or our homes.

2. How Durable Are The Solar Panels?

The average life expectancy of most solar panels falls between 25 and 30 years. This is a long period that is great to cover the initial set up price. However, some other solar panels do have a shorter life span, while others have a longer one.

For instance, the thin-film solar panels come with a lifespan of between 14 and 17 years. Other more expensive models can have a life expectancy that can go up to 50 years. Therefore, it all depends on the type of panel.

See Related: Are Solar Panels a Fire Risk?

3. What is The Cost of Installation?

Different solar panel systems will have different prices, as well as different installation costs. However, inclusive of labor, equipment, and permits, the solar panels cost something between $15,000 and $30,000.

The prices will vary depending on the type of panels, quality, size, and installing company, among many other factors.

For example, the average cost of a 2kW system ranges between $6,000 and $7,500 countywide. Therefore, you must first know what your power needs are before you purchase any system.

With durability, solar panels have a long lifespan. You need to know the exact economics of your solar system.

There are a few things that impact that, which are the cost of installation upfront, the anticipated production and the lifespan of the project. Here is how to determine how much energy a solar panel produces.

Questions to Ask the Solar Installer

The solar panel salesman might not know the technical specifics of the solar installation.

4. Can The Installation Be A DIY Process?

Although it is possible to be a DIY (do it yourself) process, it is advisable to seek the services of an expert in this sector.

A professional can easily identify where on your roof to install the panels without causing any damage to the roof. Also, the placement of the panels is crucial to ensure they are exposed to maximum sunlight. See related a DIY solar generator guide.

5. How Long Does The Installation Process Take?

The duration of this process may vary due to various factors such as your solar array’s size, the mounting as well as how your property is.

Nevertheless, it will only take around two to several hours. Not an entire day. The good thing is that the same wiring that exists in your house is the one you will use.

You don’t have to change the wiring. Do you know the proper angle of the solar panel for your location? You will likely need to have optimal angling for optimal production.

6. Is It Necessary to Have A Backup Storage?

If you want to enjoy full-time availability of solar electricity, having reliable and ample battery storage is advisable. This will help ensure that you have enough power to use, even when the sun is down.

However, you can also connect to the utility grid to ensure you have a continuous supply of power. By joining the grid, you will be selling the extra energy you produce during day time, and when the sun goes down, you can use the grid power.

Consider these best battery storage solutions for your solar system.

7. How Long Before I Notice The Change In My Power Bills?

The solar panels start creating electricity immediately after installation. Therefore, you might even see the changes in the next bill you receive.

These are only 7 questions to ask. There is a lot more.

See Related: Is It Possible to Get Free Solar Panels?

Conclusion on Solar Energy Questions to Ask

If you are about to install a solar panel system, either at your house or business, it is important that you remove all the doubts you may have. With this article on solar energy questions to ask, I believe you will find all the questions you may need to ask, as well as some of their answers.

Through this, your transition to solar power will be smooth and stress-free. Thinking about leasing solar panels? Read our guide highlighting the differences of leasing vs buying solar panels.

Was our guide to the top solar energy questions to ask helpful? Please let us know in the comments below. We’d love to hear from you.

Related Resources

Related Guides for Going Solar

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How Community Solar Works: A Pros and Cons Analysis https://greencoast.org/how-community-solar-works/ https://greencoast.org/how-community-solar-works/#comments Mon, 27 May 2019 00:36:03 +0000 https://greencoast.org/?p=2202 Community solar is sometimes hard to understand. There are different ways that community solar farms are shared amongst residents. Here’s exactly how community solar works, including a full pros and cons analysis of the asset and opting in for the energy savings.

How Community Solar Works: A Pros and Cons Analysis

When it comes to solar power generation, a community solar garden has gained much popularity in recent years. Usually, solar installations consist of a relatively large and privately owned solar panel array.

For community solar, the community dedicates a specific site for the installation of solar panels. For instance, a barren agricultural field, warehouse roof or deserted factory ground can be utilized for such an installation.

This type of community solar power facility generates electricity during the day and feeds the local grid. The subscribers of the community solar garden get the share of power produced through these solar arrays.

I’ve personally used Arcadia Power to start lowering my electric bill for moving to community solar.

On the contrary, this isn’t the case in the cooperative solar gardens. Here, the users are not the owners of the solar panels or any equipment associated with them. However, they get some financial advantage through ‘net metering’.

Net metering will reduce your energy costs on your meter readings through a discount or subsidy offered by your utility.

How Community Solar Works

In order to install solar panels on a large scale, you need a considerable amount of investment. Hence, solar energy isn’t free at all, as you need to buy expensive solar panels, equipment, and pay for their installation.

A private solar system cost $25,000 to $35,000, which is sufficient to meet the power needs of an average-sized home. This suggests that depending on the consumption of the house and efficiency of the solar system, it would take at least 10 to 30 years to break even the actual cost of solar installation.

Solar panels last a long time, which helps you retain much of the capital cost over time. Here’s a guide on the lifespan of a solar panel.

Community solar garden doesn’t require any upfront investment on the part of users. The subscribers or users don’t have to pay out of their pocket to start a community solar project.

Pay-As-You-Go is a common community solar business model. This involves charging some sort of onboarding fee that stays well under the three-figure range. This model allows subscribers to pay for power on a monthly basis.

There are a few solar gardens, which offer up-front or partial up-front fee options. If you pay up-front charges, it covers the amount of electricity you will use throughout the contract.

On the other hand, users may choose to pay the flat fee that is not tied to the projected consumption of electricity. In both of these payment models, operators do offer some sort of discount with reference to the kilowatt-hour rates.

The new subscriber has to pay considerable substantial up-front costs under any of these models. If you are opting for full up-front payment, it may reach into five-figure amount.

But the consumer gets the benefits in the long run by saving huge amounts each month. This is why people with modest incomes or limited savings, do prefer subscribing for a community solar garden.

Net Metering Explained

After getting community solar explained, it’s time to discuss the net metering. Net metering is a way to calculate and pay your utility in accordance with the net electricity consumption. If you have installed a good solar system, you can produce a sufficient amount of electricity to meet the needs of your home.

In this case, you only pay for the electricity that you have drawn from the grid. In addition, if the solar array manages to produce some excess energy, you can sell the surplus amount to your grid.

The limits of providing energy back to the grid and the rate per kilowatt-hour depends on the policy of the utility company. The subscribers of community solar gardens also enjoy the advantages associated with net metering.

See Related: Best Solar Panels to Buy and Use

Community Solar vs. Rooftop Solar Arrays

If you don’t have an idea that whether you should go for a rooftop solar array or community solar garden subscription, you can make a decision after considering the pros and cons of these options.

For this purpose, let’s dig into the community solar pros and cons.

Community Solar Garden Pros

Given below are some widely known advantages of subscribing to a community solar garden.

Suitable for Renters

In order to obtain the electricity produced by a community solar garden, you don’t need to get the permission of the landlord. If you are a tenant and living within the proximity of a solar garden, you can subscribe and start saving. At times, you don’t even need to live close to a community solar garden to be able to reap the benefits.

No Infrastructure or Physical Equipment

Being a solar garden subscriber, you are not required to get physical equipment installed or build an infrastructure for obtaining solar power.

All the installations, upkeep, and repair work is the responsibility of the trained professionals hired by the solar garden operator.

It is good news for the renters, as they don’t have to acquire prior permission from the homeowner. What they need is to subscribe to the community solar facility and minimize the utility expenses.

No On-Site Installations

When subscribing for a solar garden, you can keep your rooftop free from unpleasant piles of solar panels. In fact, solar arrays can affect the curb appeal and overall aesthetics of your home.

Solar gardens are ground-based systems, which acquire large rural lots or abandoned factory grounds. This means subscribers can utilize their rooftop for any other purpose.

Solar Rating is Irrelevant

If you want to install a rooftop solar array, it is necessary to know the sun score or solar rating of your property. This relates to the time for which sun shines on your roof. The solar rating also explains the intensity of the sunrays.

It helps to analyze how much power one can generate through a rooftop solar array. However, the subscribers of the community solar garden don’t require any kind of solar rating.

As long as the solar garden receives the sunlight, you are good to use this facility.

Up-Front Investment is Much Lower

With a view to subscribing to a community solar garden, you are not bound to make a massive up-front investment. What you have to pay is just the subscription fee, which is quite manageable.

On the contrary, the cost of an average-sized rooftop solar array may settle for five-figures.

Even if you take a home equity loan or use a low APR credit card to finance this project, this financial burden will continue to bother you for years to come.

Community Solar Gardens Cons

Following are the disadvantages or cons of getting a community solar garden subscription. You better read them before making any decision.

Complex Contract Structure

When buying a solar system and installing it on your rooftop, you may need some sort of loan. However, the legal aspects of purchasing a solar system on lease are relatively less complicated as compared to the solar garden subscription.

First, you have to enter into a power purchase agreement (PPA). It is a framework, which binds the utilities and community solar garden operators. These contracts stay intact for more than 25 years.

In addition, the community solar contracts are confusing, making it difficult for the subscriber to reach a decision. For example, there are lock-in periods, hefty exit fees, lowest share sizes, and some other restrictions.

No Concept of Projected Savings

Although the community solar operators do guarantee minimum cost savings, these ratings never appear to be true. Some of the operators offer savings close to the amount of baseline bills, but others don’t.

If the contact doesn’t identify minimum savings, the subscriber can’t oppose abrupt price changes. This may reduce or even eliminate the chances of savings.

This is the reason why some subscribers regret their decision of choosing a solar garden facility. Nevertheless, you can avoid such issues by taking into view the dubious claims made by an operator.

See Related: Best Books on Renewable Energy

Requires Excellent Credit Score

In most of the cases, solar garden management appears to be quite strict with reference to subscriber’s credit score. For example, if the FICO score is lower than 680, it would be hard to enter into a deal with the solar garden operator.

Therefore, prior to thinking about this option, make sure that your credit history is in good shape. A community solar subscription is a type of financial deal; hence, the utility or solar garden operators look for the subscribers with clean financial history.

There are some other community solar garden providers out there that do not require very high credit scores.

Geographical Restrictions

One of the biggest disadvantages of getting a solar garden subscription includes geographical restrictions. This means that if you leave the territory of a community solar garden, it isn’t possible to take the subscription with you.

In this situation, you have to find someone else who can take over your existing contract with the community solar garden operator.

Moreover, you also need to bear the transfer fee, which alone can disturb your saving.

Little or No Tax Benefit

Since the solar industry is booming, the tax credits or benefits are lowering. These benefits were used as a way to assist in solar energy development and produce greener energy.

The solar garden developers and commercial entities associated with solar industry use these credits to complete their community solar projects.

However, this facility is not available to the subscribers or they can’t take advantage of these tax deductions.

Lack of Control Over Output or Operations

The solar garden subscribers are not allowed to take control of solar power operations. They are not even in a position to know the actual output their solar garden is producing.

Similarly, in case of natural calamity or system failure, your garden will go offline. As a result, the production or supply of electricity to the grid will become zero and your savings for that time also go to zero.

These problems may also arise in the rooftop solar arrays, but you have complete control over it. You can simply call a technician and get your solar system fixed within a couple of hours.

Huge Termination Costs

Most of the Community solar garden charges a hefty termination fee. This fee is even higher for the new subscribers. On the contrary, you can unplug your rooftop solar system any time, without worrying about paying any termination fee.

Self-Sufficiency Isn’t a Reality

Despite all the debates and environment-friendly tags, community solar isn’t doing much at the moment. In fact, even after subscribing to the solar garden, your home will still be dependent on the grid.

Hence, it is important to stay hooked up to the grid unless you have other options like a diesel generator. If you are keen to live off the grid and attain the stage of self-sufficiency, a home-based solar array should be a viable choice.

See Related: Best Books on Green Living

Conclusion on How Community Solar Works

You need not worry about community solars garden or rooftop solar systems, as you are not alone. There is a wide range of people who are using the private solar system or taking advantage of a community solar garden.

At least, you can hope for the best in the future, when solar energy may turn out to be truly free.

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