Electric Co-op Today

With solar arrays turning up in backyards far from California or Arizona, there’s a word of advice for electric cooperatives.

Solar is no longer just for traditional sunshine states, as this array atop Chickatawbut Hill in Milton, Mass., proves. (Photo By: Green Massachusetts)

“The residential solar market is changing dramatically and rapidly,” said Doug Danley, senior program manager at NRECA’s Cooperative Research Network. “Even if the solar market has not reached your co-op today, it is important to understand the technological and financial aspects of this fast-growing industry.”

Danley provided an update on some trends in residential solar during Touchstone Energy’s® National Energy Efficiency Conference.

“The most significant, and relevant, trend has nothing to do with technology; it has to do with financing,” Danley said of solar leasing. “With the residential PV market growing at a rapid clip, it has attracted the attention of bigger players such as banks and investment firms.”

Danley explained how a solar lease works: “The homeowner signs a medium-term lease with a solar installer. The installer does all of the system design and installation, completes all of the paperwork, collects the rebates and makes some money in the process. The homeowner simply pays a fixed fee over the lease period, which is at least partially offset by a reduction in their electric bill.”

While leasing has many advantages, Danley said co-ops should make members aware of potential disadvantages. Those include the possibility that the lease won’t transfer if the home is sold.

Another trend is PV systems with energy storage. With the price of systems falling, more consumers are willing to consider incorporating a battery backup. And several companies now offer pre-engineered packaged systems.

“The systems replace the standard PV inverters with a unit which can work with both battery and PV,” Danley said.

“When the grid is available the battery is kept fully charged, and the PV is passed through to the house utility. If the power goes out the system isolates itself from the grid and continues to provide power to at least selected loads in the house.”

Danley urged co-ops to keep abreast of changes.

“It is important for co-ops to stay ahead of the game so that they continue to provide their members with reliable, affordable power.”

The National Energy Efficiency Conference can be accessed through September 2012 by clicking here.

Tags: Cooperative Research Network, National Energy Efficiency Conference, R&D, Solar Energy, Solar Power, Touchstone Energy