Solar 101: An Introduction to Solar Power and Battery Backup

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While it still feels like summer, and we’ll have sun for months to come, school starts soon. And we’re no exception! Class is in session for the first semester of Solar School at Sugar Hollow. In this blog we will break down the following very important aspects of going solar including:

  • How a Solar Panel Works: Ever wondered about the science behind those gleaming panels? We're peeling back the layers to reveal the magic.

  • Solar Battery-Backup Systems: No more mysteries around this concept! Discover the whys and hows of having a solar battery-backup system.

  • The Solar Installation Process at Sugar Hollow Solar: Curious about what it takes to transform your space? We're giving you an exclusive look behind the scenes.

  • Solar Panel Placement's Impact: It's more than just finding a sunny spot! We're delving into the art and science of strategic solar panel placement.

  • Discounts on Your Solar Array: Who doesn't love savings? Learn about the different avenues to make your solar dreams even more affordable.

These are just a handful of the questions we regularly tackle, and today is no different. So, grab your metaphorical notebook, join us on this enlightening journey, and let's make the most out of this Solar School session!

Lesson 1: How does a solar panel work? 

We’ll start off with the very basis of solar power, how a solar panel works!

A solar panel has small rectangles on it called solar cells. These cells are like tiny power generators. When sunlight hits them, they turn the sunlight into electricity. The solar cells are connected with grid-like lines on the surface of the panel. These lines direct the generated electricity. 

The electricity made by the solar cells goes to a box at the back of the panel. This box gathers all the electricity from the cells. Next, the electricity goes through a device called an inverter. The inverter changes the electricity produced by the solar cells (which is called direct current or DC) into a kind of electricity we can use in our homes and businesses (called alternating current or AC). When two or more solar panels are wired together, this is referred to as a solar array, or simply an array. 

Now, we have usable electricity! It can power our lights, computers, fans, and so much more. 

You’re probably wondering, what if I’m not using all the electricity being produced during the day? Well if you don’t have battery backup, also known as energy storage, then your excess energy will flow back into the electrical grid. But what is battery backup?

Lesson 2: What is a battery backup system? 

So, what is battery backup? As the name implies it is a means of having a battery supply power. In this case a battery that would store solar energy for your home, business, or nonprofit.  

But why would I need a battery to supply power if I already have solar panels?  As we discussed in our solar myth-busting blog, solar panels create electricity quite well, but have no means of storing it. So a battery serves as a means of capturing the power YOU make to use for later, for instance when you might normally lose power in a storm or if power infrastructure is having problems. 

Think of battery backup as a rain barrel, and solar panels as your gutters.

If you don't have a rain barrel, the rain will flow back into your yard, losing any potential you could have used it for.  But with a rain barrel you can use that water however you like!

But battery backup units are not just for power outages or emergencies. These batteries can store your power during peak solar production hours and let you use it when the sun sets and electricity rates are higher. This little trick allows you to offset your electricity bill substantially during Winter and Summer when demand is high.   The best part about battery backup is three fold:

  • First, you don’t need solar! While solar will make battery backup a significant cost efficient power storage system, it’s not necessary.  You can draw power from the grid during low usage hours and then use that cheaper energy during higher demand hours in the mornings and evenings. 

  • Second, battery backup is smaller and quieter than a generator, and with solar panels, you never have to worry about refilling your battery.  

  • Third, there are no moving parts. This means that maintenance is rarely needed and that the time it takes for the power from the battery to kick on is nearly imperceptible. 

We now have a basic understanding of how solar panels work, and how we can store the power they generate with battery backup. But how does one go about getting a solar system and or battery backup installed? 

Lesson 3: What is the solar installation process like from start to finish? 

Installing a solar system is a team effort with many hands helping to create a tailor fit solution for every client. So let’s get started and talk about our process here at Sugar Hollow Solar. 

First steps:

The very first step of the solar process is contacting our Sales Coordinator by phone (828) 776-9161 or filling out our quote form and telling us a bit more about your ideal energy solution. Our sales coordinator will answer any questions you have, and if you qualify- will set you up on a Discovery Call with one of our Energy Consultants. 

Finding the best fit for your needs:

When you meet with one of our Energy Consultants they’ll go over all the fine details of system sizing, battery backup, and any additional questions you may have. Our Energy Consultants can do this on the phone and through a site visit to your home or business! 

Once you’ve found the energy solution you’re looking for one of our Design & Proposal Specialists will help create the optimal solar panel layout for you. Once your customized solar system is approved it's time to sign the contract and join our community of wonderful solar powered clients.

When you become a valued client of Sugar Hollow Solar:

After your contract is signed a Project Manager from our Operations team will reach out to you. Your Project Manager will be your main point of contact from here until your system is commissioned!

Our Project Manager will first schedule a home visit from our Site Surveyor who will take measurements, inspect your home’s electrical panel and system, attic, meter main, and scan your home and roof with our drone to better capture roof features and increase installation speed and precision.  

After the site visit, your Project Manager will work with you to schedule a tentative installation date. They’ll reach back out to you and update you on the timeline as things progress.

The Install:

Upon the arrival of your scheduled installation date, our team will promptly initiate the installation process. Since each installation is uniquely tailored to every client, the duration of the installation may differ. Upon successful completion of the install, our team will carry out a comprehensive final assessment before concluding the process.

Post Install steps:

Your system will not be fully live until a site inspection is conducted to ensure proper state and safety requirements are approved. 

After the system has passed inspections, your utility will need to approve the system interconnection. Our Interconnection Specialist will handle the application process for you. Once you’ve been approved for interconnection your system will be turned on and start producing power!   

Follow up:

Upon successful activation of your system, someone from our Operations Team will reach out via phone to address any additional questions you might have. Additionally, they will supply you with pertinent information regarding the appropriate contacts for system maintenance or resolution of any potential issues. Regardless of who you talk to at any stage of the journey with us, our entire team at Sugar Hollow Solar is always here for you at every step of the way. In fact, you can learn about each of our staff and their roles on our staff page.

As you can see, the installation process here at Sugar Hollow Solar embodies a collaborative endeavor, underscored by our commitment to provide unparalleled service to our valued clients. Throughout each step of this journey, the dedicated Sugar Hollow team stands ready to offer unwavering support. 

During the planning phase you will be given an optimized panel placement plan for approval before signing a contract. But why are the panels placed in such a way, and impact does it have on your future system?

Lesson 4: Why Does Solar Panel Placement Matter? 

To begin, let’s review the ideal solar panel direction for those going solar in WNC or Upstate SC. Here in North America we’re north of the equator. That means we place solar panels facing south to maximize the amount of sun the panels can absorb. 

We always tell those building new structures that their roof should face due south if possible!  However if a roof is not perfectly aligned south, it’s not the end of someone’s solar journey. If possible we will simply add more solar panels to help offset the loss of production, ideally equalling a slightly smaller system facing south. Ground mounted solar, where possible, is also a great way to get around non ideal roof direction or shading. 

Next we’ll discuss panel pitch, so grab your protractors and let’s get to measuring!

The pitch of a solar panel is the angle that the panel sits on your roof. This is determined by the average position of the sun in the sky and the pitch of your roof. Every home is different, with roof pitches varying widely. Thankfully due to our sun exposure in NC, all but the most steep roofs should be great candidates for solar! Flat roofs offer a unique opportunity to place panels at the ideal angle with great ease.  

You may hear someone refer to a roof pitch by using numbers such as 9/12 or 14/12. This is a common measurement of how many inches the roof rises over the course of 12 horizontal inches. For example, a 7/12 roof pitch would mean that the roof is at just about a 30° angle.  

If you want to pull out your calculator here is the equation for converting a rise/run measurement for the angle of a roof:  degrees = tan-1(rise / run)

With all of this in mind we’re in a fantastic solar situation. We receive around 212 days of sunshine a year with a low minimum angle needed for our panels to produce at their highest efficiency. 

Now that we’re well versed on panel placement, the process for installing a solar system, how to store the energy we create, and how a solar panel works, there’s the final piece to the puzzle. How much does a solar system cost, and what incentives are there to help us pay for it?

Lesson 5: What Are the Various Types of Solar Incentives and Rebates Available?

We’ll be wrapping up this semester by learning about renewable energy incentives. We’ll be discussing tax credits quite a lot in this piece, so here is some helpful information:

A tax credit is a one to one reduction in the amount of federal income tax you would owe. To illustrate; if you claimed a $1,200 federal tax credit, you would reduce your owed federal income tax by $1,200.  

To begin with we need to discuss the Inflation Reduction Act, also known as the IRA. The IRA was signed into law on August 16, 2022. This bill has significant provisions and incentives for installing renewable energy production for homes, businesses, nonprofits, and agricultural producers. 

The most well known section of the IRA in the solar world is the Federal Solar Tax Credit and the Investment Tax Credit (ITC). It should be noted here that the ITC for homeowners is different from the ITC available for businesses. 

For Homeowners: 

The ITC allows homeowners to claim 30% of the cost of installing a solar system or a battery backup unit. This 30% applies to all systems and battery backup units that are installed before 2032. 

Expenses that qualify for the 30% tax credit:

  • Solar Panels

  • Contractor costs

  • Wiring, inverters, and mounting equipment

  • Battery Backup Units (rated for a minimum of 3 Kilowatt-hours storage capacity) 

Claiming the tax credit:

Talk to a tax professional to ensure that your investments are eligible for the tax credit, once confirmed, complete IRS form 5695 and attach it to your federal tax return. 

For Businesses and Nonprofits:

Much like the homeowner ITC, the ITC for businesses, nonprofits, and tribal governments is a tax credit that reduces tax liability equal to a portion of the cost of system installation during the tax year.  In addition to the baseline 30% ITC there are bonus credits. These credits are dependent upon reaching certain thresholds or goals. 

Domestic Content Bonus 10%:

In order to be eligible for the domestic content bonus, it is necessary for all utilized structural steel or iron products to be manufactured within the United States. Additionally, a specified proportion of the overall costs for the facility's manufactured products, including its components, must come from mining, production, or manufacturing activities within the United States. This percentage is determined by dividing the expense of all domestically produced products and components by the total cost of all manufactured items.

Energy Community Bonus 10%:

  1. a brownfield site – specifically, a site that has been contaminated by the presence of a hazardous substance, pollutant, or contaminant (excluding petroleum), including certain mine-scarred lands.

  2. an area that, after 2009, had a 0.17% or more direct employment or 25% or more local tax revenues related to the extraction, processing, transport, or storage of coal, oil, or natural gas, and has an unemployment rate at or above the national average for the previous year; or

  3. a census tract in which a coal mine closed after 1999 (including any adjoining census tract), or a coal-fired electric generating unit has retired after 2009. 

Low-income bonus 10-20%:

This bonus tax credit is only available for projects under 5 MW (ac) and may receive either: 

  1. an additional 10% ITC for being located in a low-income community as defined by the New Markets Tax Credit (Category 1) or on Indian land (Category 2); or

  2. an additional 20% ITC for being classified as a “qualified low-income residential building project”(Category 3) or “qualified low-income economic benefit project” (Category 4). To qualify for the credit, the financial benefits of the solar facility must be allocated equitably between the residents.

There is also the Modified Accelerated Cost Recovery System (MACRS). This section of the IRA allows a solar energy system to be depreciated over a 5-year period with 80% bonus depreciation available for projects installed in 2023. MACRS can help cover up to 50% of the cost of solar. It should be noted that this does not apply to nonprofits. 

And finally there is REAP (Rural Energy for America Program) for Farms and agricultural producers. The REAP program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements. Agricultural producers may also apply for new energy efficient equipment and new system loans for agricultural production and processing.

There are many more federal solar incentives than can fit in a social media post. If you’re interested in learning more about incentives for solar or battery backup, contact us to speak with an energy consultant today. We’ll help you find the energy solution that best fits your needs. 

This concludes our first session of Solar School. We hope you’ve found yourself with a solid understanding of some of the basics of going solar in WNC and Upstate South Carolina. 

We covered:

  • How a Solar Panel Works: More than a large black glass rectangle, we dove into the basics of how a solar panel can create energy from the sun! 

  • Solar Battery Backup Systems: We covered a basic overview of energy storage and how you can make the most out of a solar system with battery backup. 

  • The Solar Installation Process at Sugar Hollow Solar: You learned that tailor made solar system creation and installation is a team effort, and we have the best team to help your solar dreams come true. 

  • Solar Panel Placement's Impact: We learned why good solar panel placement matters and how it can help you save money.

  • Government discounts on Your Solar Array: You learned how the government is helping to make solar more affordable, and what options might apply to your energy needs.

We’ll be returning with further articles, videos, and general explanations soon. If you have lingering questions or reading through has sparked interest, you can contact us at (828) 776-9161, email us through the contact us form or reach out for a quote.

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