As a GCEA member, your electricity is already powered by 36% renewable energy. If you are looking to generate your own solar energy, GCEA is here to help you decide if rooftop solar is the right option for you.
- Solar panels transform energy from the sun into direct current (DC) electricity.
- An inverter converts the electricity produced by the solar panels from DC to alternating current (AC) for use in your home.
- Energy is used to power your home.
- A bi-directional utility meter measures the energy used from the electric grid and excess energy produced from your solar panels.
Maybe.
Whether and how much you will benefit from a residential solar array depends on:
- How much you pay for electricity
- How much electricity you use
- Your roof
- Federal, state, and local incentives for solar development
- Your solar installer
At GCEA, we can help answer many of these questions.
Maybe.
- Does your roof face south or west and is it shaded?
- Will you need to replace your roof sometime during the life of the panels? If so, you should replace your roof first.
- Have you explored all of your energy efficiency options? (It doesn’t make sense to purchase more solar than you need!) We can help you reduce your energy use and right-size your array.
- Does your community have restrictions?
If you are purchasing a rooftop solar array, be sure to ask:
- What is the total installed (turnkey) cost of the system?
- What is the payback period? What are the assumptions underlying that estimate?
- Will I need to finance the array?
- Who gets the tax credits (the “renewable energy credit”)?
- Will I receive “free” electricity once panels are paid for?
- Does the company offer warranties on panels and inverters?
- What are the details of the service contract?
If you are leasing panels in a rooftop array, be sure to ask:
- What is the upfront cost of the system?
- Are there other customers in the vicinity with comparable systems? How much electricity are their systems producing?
- Who gets the tax benefit (the “renewable energy credit”)
- Can the lease be transferred if I sell the house?
- Does the lease company have the right to run a credit check?
Do your research.
When you make the decision to invest in residential solar, you are making a significant financial investment. Be sure to do your research on the company.
- Are the installers North American Board of Certified Energy Practitioners (NABCEP) Solar Photovoltaic (PV) Electric trained and certified?
- When was your company established and how much solar has it installed to date?
- Can your company provide a list of the projects and references for them?
- Are you accredited with the Better Business Bureau? If so, what is your rating?
No.
Without a battery and a smart inverter, most solar arrays do not provide power during outages.
You’ve done the research. You’ve found your solar installer, and you understand your electric usage patterns. It may seem like solar is the right decision for you now, but will it still pencil out in the future if and when net metering laws or electric rates change?
Electric utilities like GCEA are subject to inflation, supply chain issues, and other rate pressures just like any other industry. As a result, our rates will undoubtedly adjust over time. This is often an argument in favor of rooftop solar. The idea being, you can lock in your energy costs with an up-front investment or purchase contract. However, you should also consider that net metering laws are beginning to be revised across the country, and there is a good chance revisions may also occur in Colorado during the life of your solar system investment. Potential legislation revisions could reduce the value of the bill credit provided within existing net-metering legislation, and this could, in turn, affect your solar system’s return on investment. Financial incentive revisions may be acceptable to you, especially if your primary solar objective is not financial.
GCEA's rate structure is also changing. Roughly three-fourths of GCEA’s costs to provide service are fixed and do not vary based on how much energy a member may use. At a high level, GCEA incurs costs in three major categories: 1) generation (variable), 2) operation and maintenance of generation and transmission infrastructure (fixed), and 3) costs of operating and maintaining the local distribution system and business functions (fixed). Variable costs fluctuate with the amount of energy delivered to consumers, while fixed costs do not.
Conversely, GCEA consumers are currently billed mostly through a variable energy charge, measured in kilowatt-hours (kWhs). For instance, our primary residential rate currently has a fixed service availability charge of $40 per month (no matter how much energy a member may use) and a variable energy charge of $0.15419 per kWh consumed. The average residential member therefore pays only approximately 28% of their monthly bill through the fixed service availability charge. As a result, a member who may reduce their kWh usage via a solar net-metering installation is able to reduce their bill by more than GCEA is able to reduce its cost.
GCEA continues to incur fixed costs in order to provide services to members with net-metered systems. GCEA is billed for the fixed costs associated with the generation and transmission infrastructure based on its monthly peak demand, which occurs most of the time within the three hours after sunset. Net-metered solar members contribute similarly to this monthly peak and its resulting costs in exactly the same way as GCEA’s non-solar members do. The current monthly service availability charge does not attempt to recover this demand cost and only partially recovers the fixed costs of operating the local distribution system.
As more GCEA members install net-metered solar systems, purchase electric vehicles, buy second homes, etc., it is important for GCEA to ensure equitable cost recovery through appropriate rate design. Accordingly, GCEA is adopting new rate structures for all members that better align with the costs we all collectively incur.
Existing solar systems will be eligible for legacy rates for a time, and the new rate structure will still be solar-friendly, but members should evaluate their decision based on the new rate structure, which will also now provide potential economic benefits for member-owned batteries.
If you have questions about net-metering or the rates to use in calculating your return on investment, please click here.
Call Before You Sign! Be Wary of Solar Scams.
With the increased focus on renewable energy nationwide, attention on solar has grown. Be wary of too-good-to-be-true offers from solar salespeople and consider the following before signing any contracts:
- High-pressure sales tactics: Solar scammers often use high-pressure sales tactics to pressure you into signing a contract. They may try to make you feel like you're missing out on a great deal or that you'll regret not signing now. If you feel pressured, it's best to walk away.
- Unrealistic promises: Solar scammers often make unrealistic promises about how much money you can save with solar panels. They may say that you'll be able to eliminate your electric bill entirely or that you'll make a lot of money by selling your excess solar power back to the grid. It's important to do your research and understand the true costs and benefits of solar before you sign any contracts.
- Hidden fees: Solar scammers often hide hidden fees in their contracts. These fees can add up quickly and make your solar installation much more expensive than you expected. Be sure to read the contract carefully and ask about any fees that you don't understand.
- Unlicensed or unqualified contractors: Solar scammers are often unlicensed or unqualified contractors. This means that they may not be properly insured or that they may not have the experience or expertise to install solar panels properly. Make sure to check the contractor's credentials before you hire them.
If you're considering solar, it's important to do your research and be aware of the potential for scams. Here are some tips to help you avoid solar scams:
- Contact GCEA. We have worked with hundreds of GCEA members who have successfully adopted solar, and we can help walk you through the policy requirements for net metering.
- Get multiple quotes from different LOCAL solar companies.
- Read the contract carefully and ask about any fees that you don't understand.
- Make sure the contractor is licensed and qualified.
- Check the company's reputation online.
- Don't feel pressured into signing a contract right away.
If you think you've been the victim of a solar scam, there are resources that can help. The Colorado Solar and Storage Association (COSSA) is a trade association that represents the solar industry in Colorado. Visit their website for more information.
How your home receives power when the sun isn't shining
How excess energy is credited
Current electric rates and how they may affect your investmentHave more questions? Call us at (970) 641-3520 or email GCEA.