Residential Solar: Is it right for you?

IMU is diversifying its energy portfolio with a community-scale solar field set to begin construction this summer. Best of all, the electricity generated from it won’t cost IMU customers any more than standard generation, and no action is required to take advantage of locally-generated solar. It will simply become part of IMU’s energy mix. At the same time, many homeowners are looking at residential solar as a means to produce cleaner energy, save money on their current bills, and have locally-stored power available in the event of an outage. If you’ve been thinking about installing solar at home, there are a number of factors to consider.

What are the benefits of residential solar?

Given Iowa’s climate and annual sunshine days, savings should not top of the list of reasons to add residential solar. That said, there are worthy benefits.

• The average home solar system prevents over 11,000 pounds of C02 emissions each year.
• There are current tax credits for up to 30% of the cost of a new system.
• Zillow estimates that adding residential solar increases your home’s value by about 4%.
• The price of solar panels has fallen 70% in the last decade while quality has improved exponentially.
• Battery walls to store excess power are becoming more affordable and efficient. Don’t automatically reject them for upfront cost, as they greatly extend the usefulness of your installation.
• If you have battery storage and a transfer switch (just like for a whole house generator), you’re somewhat protected from blackouts and can extend power for your critical needs.

IMU buys back your excess solar power

IMU uses the inflows and outflows method with respect to billing. The customer is charged for any usage over and above what the solar installation produces. If the customer’s usage is less than production, IMU purchases the surplus from the homeowner. Since the homeowner is considered a supplier, IMU pays homeowners the same whole- sale, or avoided, rate for electricity that it pays to its primary supplier, NMPP Energy.

While solar can lower your bill, each month there are built-in charges – a small energy buyback meter charge and the regular $11 electric meter charge.

How do I connect my solar panels to the IMU grid?

PRO TIP: Bi-directional meters, also called revenue meters, measure two things:

• Delivered: electricity the customer buys from IMU
• Received: electricity IMU receives from the customer

While it seems like the two numbers should offset, solar panels don’t produce consistently over a 24-hour period. So sometimes there’s a surplus and sometimes there’s a deficit that varies by day, depending on weather and usage.

Is residential solar a good fit for me?

A lack of consumer protections and regulation make purchasing residential solar installations in Iowa tricky. Many installers will make claims that systems will generate ample electricity and eventually pay for themselves, but results vary widely due to several factors.

• Your home’s location. How much sun will your panels receive? It depends on the pitch of your roof, its age and orientation to the sun, and the amount of shade vs. sun hours the panels receive each day.
• Technology is evolving rapidly. Today’s solar panels might well be obsolete in five years, and prices are coming down quickly as capacity goes up. You may recoup your initial investment of $25,000 (after tax credits for 10kw) in 10 to 20 years. But the panels on your roof, if they’re still functioning at all, will be obsolete and have little monetary value. They may even be considered a liability in the event of a home sale.
• Ownership costs aren’t included in the “formula.” Panels break and have to be repaired or replaced over time. The same goes for the hardware and wiring. And as your system ages, finding replacement parts might be an issue, especially considering many manufacturers still have proprietary systems so parts must be purchased from just one source.

The bottom line

There are many reasons to add solar panels to your home, though cost savings shouldn’t top the list. It’s a big investment, so do your homework and shop around for multiple quotes. To ensure you understand everything, make sure you read the fine print on both your supplier contract and IMU’s policy and guidelines.