Ask Us First

Are you aware that when you sign a solar contract you only have 3 days to modify or terminate the contract before you are legally obligated to an investment with no proof of performance? For this reason, it is strongly encouraged for members to CONTACT their local cooperative or utility before signing a CONTRACT. Getting data from your electric provider will strongly benefit your research on a potential solar investment. This will allow you to have accurate usage data to better confirm the estimated results from a solar array. In some cases, solar vendors are able to provide accurate information, but your local co-op wants to ensure you are protected.

 Co-op contact info

The best outcome starts with getting yourself, the solar vendor and your electric provider all working together for your energy solution.

Know how self-generation works

Net metering is a process that enables members with a wind or solar system on their home or business to export power that is in excess of their immediate on-site needs. This offsets an equal amount of power supplied by the cooperative at a different time within the same monthly billing period. In this situation the member is billed at the regular cooperative retail rate for the “net” amount of power used that is in excess of power the member generates on site.

If a member generates more power than their home or business uses during the monthly billing period, the excess is metered and put out onto the electric grid. The cooperative subtracts the amount of power purchased from the grid from the amount generated out to the grid and provides the member with a “credit” for the “net excess” power. For most Missouri cooperatives, the credit is calculated by multiplying the number of “net excess” kilowatt-hours times Associated Electric Cooperative’s cost to purchase the fuel needed to generate a kilowatt-hour (called avoided cost).

Example:

Member solar panels generate to the grid: 1,000 kWhs
Member receives from the grid: – 950 kWhs
Member receives avoided cost credit for: 50 kWhs

The credits you could earn have to be used within 12 months of receiving the credit

Your electric provider will not send you a check for any excess generation a solar system would produce.

Did you know:

The state net metering statute states that once an electric utility reaches five percent of its single-hour peak load from the previous year in total rated generating capacity of self-generation systems it does not have to offer net metering to its member-consumers.

It also states that “in any given calendar year” the utility is not required to approve any application for interconnection if the total rated generating capacity of all applications for interconnection already approved to date in said calendar year equals or exceeds one percent of its single-hour peak load from the previous calendar year.

This is an effort to protect the reliability of the electric grid.  Members interested in installing a renewable energy system can still do so by becoming a qualified facility through our cooperative power supplier, Associated Electric Cooperative, Inc.  Contact your local co-op for additional information.

10 Steps to Take Before Installing Solar

INTRODUCTION

As prices decline and technology improves, installing a residential solar system—also called a photo-voltaic or PV system—makes sense for some co-op members and is something homeowners are considering. However, even with these recent improvements, it’s important to find out the facts before committing to a purchase.

RESEARCH, RESEARCH, RESEARCH, BEFORE INVESTING IN A SOLAR SYSTEM.

Your electric cooperative should be one of your first contacts. Experts at your co-op can answer basic questions, provide resource materials, and direct you to reputable websites, contractors and other experts in your area.

MAKE YOUR HOME MORE ENERGY EFFICIENT BEFORE BUYING A SOLAR SYSTEM.

Adding insulation, sealing air leaks, and completing other basic fix-it projects make sense for several reasons. You can cut your energy costs immediately and reduce the size of PV system you purchase. If your goal is to lower your electric bill, this may be all you need to do. Your cooperative or one of their energy partners offer energy audits to help identify priority areas for money saving improvements.

UNDERSTAND HOW A SOLAR SYSTEM MESHES WITH YOUR COOPERATIVE’S SYSTEM.

Most solar systems are designed to provide you with a portion of the electricity needed but not 100 percent. At night, on cloudy days, and possibly at high-energy-use times, you’ll need more power than your PV system can produce. That means you’ll still need electricity from your cooperative’s power lines. Because these systems are grid-connected, energy can flow both ways. Your electric cooperative sets appropriate policies and rates for connecting PV systems to their lines (the grid) and for purchasing any excess energy your system might provide. As you begin to explore solar systems, be sure you ask cooperative experts about interconnection, essential safety precautions, net metering, and any other connection-related details.

REVIEW YOUR CURRENT ENERGY USE SO YOU CAN DETERMINE WHAT SIZE PV SYSTEM TO INSTALL.

Your electric cooperative staff can help review your past energy use, as well as assisting you to determine how potential energy efficiency projects may help lower your future energy use. They can also help you understand how your energy use fluctuates throughout the day, which is another important factor to consider. Having this information will help you determine—with expert assistance—the size and type of system best suited to your situation. For example, if your greatest need for power comes when the sun isn’t shining, solar won’t help.

TALLY COSTS UP FRONT.

Your cooperative does not sell, install, or maintain PV systems at this time, so if you decide to install a PV system, you will either purchase or lease a system from a contractor who is not a part of the cooperative. If you purchase a solar system, you will be the owner, and you’ll be responsible for the purchase price, as well as ongoing maintenance and repair costs. If leasing is the option you prefer, you will pay less initially, but you’ll likely have higher ongoing costs. In either case, it pays to spend time figuring out all of the expenses you’ll be responsible for during the life of the system. These may include installation (in addition to the price of the system), interconnection costs, insurance, taxes, other possible fees. If you are leasing, ask contractors about the term length, if the contract is transferrable to a new homeowner in the event you sell your home, potential for price increases, in addition to any questions you’d ask if you planned to purchase a PV system. In the “credit” column of your price comparisons, list any incentives, rebates, and tax credits offered for either a purchase or a lease. Also, don’t forget to ask how long the system will function.

SEARCH FOR INCENTIVES, REBATES, AND TAX CREDITS.

Any financial incentives available will help reduce your investment costs. Opportunities are changing each year. Your electric cooperative staff and your contractor can provide up-to-date details about available incentives available.

ACCEPT SHORT- AND LONG-TERM RESPONSIBILITIES.

If you purchase a PV system, you’ll need to meet the requirements of your electric cooperative’s interconnection agreement. That includes paying any costs of connecting to the cooperative grid. It is your responsibility to notify them in advance about your installation. After the interconnection requirements are met, and the safety and integrity of your system are approved, your cooperative will take care of the connection to the grid. And, as the owner of the system, you’ll be responsible for maintenance and system repairs. If you lease a system, your responsibilities will depend on the agreement you sign. Be sure you know and understand what your responsibilities are.

FOLLOW ALL SAFETY PRECAUTIONS.

Most solar systems are grid-connected. Because of the two-way flow of electricity, any excess energy your PV system generates during the day will flow onto your cooperative’s lines; therefore, improper connection and maintenance of your system may endanger people and the reliability of the grid. This makes you responsible for the safety of your cooperative’s lineworkers and others who may come in contact with a downed power line, and your cooperative’s equipment.

CHOOSE A REPUTABLE CONTRACTOR/INSTALLER.

Start with a list of options garnered from website research, your electric cooperative, local or state Better Business Bureaus, renewable energy associations, your state energy office, your state Attorney General’s office, extension service staff, neighbors and any other local experts you can call on for assistance and advice. Contact several contractors, especially if recommended by multiple state and local experts. Check out other installations the contractor has completed, comparing bids (get at least three), checking references, and thoroughly examining contracts. If possible, ask a contract specialist or lawyer to review the contract before signing.

MAINTAIN GOOD RECORDS.

Keep files on your pre-purchase research and pre-installation data provided by your cooperative, as well as bids, contracts, inspection reports, maintenance records, and all other details you may need to refer to in the future. In addition, you’ll want to know about system performance, so set up a system to track and compare your actual system performance with estimates provided by the contractor/installer.

Solar Issues

Missouri’s Electric Cooperatives support our members’ interest in solar power for their homes or businesses. However, we want to ensure the decision to invest in solar is based on accurate information. It’s not unusual for electric co-ops to hear stories of unscrupulous solar vendors from members after it’s too late to cancel the installation. Those complaints cover a variety of issues including:

• Incomplete installations
• Incorrect installations
• Safety violations
• System generation underperformance
• Improper explanation of net metering policies
• Negative financial impacts
• System payback inaccuracies
• Inability to contact solar vendor after installation

These issues resulted in drastic financial impacts for many co-op members. The Missouri Attorney General’s office is also receiving hundreds of complaints about solar vendors. While not all solar vendors engage in these unethical business practices, we want to protect our co-op members from the vendors who don’t have their best interests in mind.

If you feel you were given false information or false promises from a solar vendor, please use the follow link to file a complaint with the Missouri Attorney General’s Office. https://ago.mo.gov/app/consumercomplaint

You can contact your local electric cooperative to assist you in completing the form.

Below is a list of false information being given to co-op members, followed by the correct information.

FALSE: I will have no electric bill.
TRUTH: Solar systems most often generate between 60% to 80% of a home’s electricity needs. In addition, all cooperative members pay what is called the “service availability fee” or “grid fee” to have access to the grid and constant reliable power.

FALSE: Some solar vendors quote inaccurate electric rates and inflate potential annual electric rate increases when estimating the payback of the solar system, which calculates to a shorter payback period.
TRUTH: We have been told some vendors are using 6% as the average annual increase in electric rates when the true average is between .05% to 3%. It is crucial to contact your cooperative to get accurate information to estimate your payback.

FALSE: There are some solar vendors who are encouraging co-op members to drastically oversize their solar system and telling them they will make good money from their co-op without explaining to them how the net metering law works.
TRUTH: According the state law, members who generate excess solar energy above the needed monthly use of their home get paid in the form of a credit on their electric bill. If the credit is not used within one year, it goes away. In almost every case, oversizing a solar system will only cost you more money and significantly lengthen the payback period on your investment.

Taking energy efficiency steps can immediately lower your bill and lower cost of potential solar install.

Before making a large renewable investment all solar vendors and electric utilities should tell you to first make your home or business as energy efficient as possible. If you are sending all your hot or cold air out of the house thru inefficient windows or poor insulation, trying to offset your costs with solar or wind generation doesn’t make sense. Your electric co-op or other utility provider can perform a home energy audit and give you a list of easier, inexpensive fixes that could dramatically lower your electric usage. Once those steps are taken, the next step should be to find the most efficient way to heat and cool your home, such as a Ground Source Heat Pump which is another renewable energy option, to lower your electric usage even more. Once those steps are taken and your electric usage has been significantly trimmed, it is now time to look and see if installing a solar array makes sense for you. Having a conversation with your electric co-op and solar vendor will ensure the best possible outcome for you.

Take a look at the energy efficiency options below and see their immediate energy savings.

Here is what you need to know about connecting to your utility’s electric grid.

Safety

Hooking a solar system to your electric cooperative’s utility grid is a large responsibility for the safety of the employees working on the lines and for the reliability of the infrastructure. That is why we encourage you to contact your electric co-op first when thinking solar. There are specific safety requirements and inspections necessary to tie a solar array into the electric grid. Your electric co-op will help ensure your installation is done accurately and safely if they are aware the install is happening.

Solar Sizing

It is important to talk with your electric co-op or utility provider about the size of solar array before installation to ensure the infrastructure can handle the amount of electricity a large solar array could put back on the grid. When sizing a solar array it is important to remember that the goal should be to offset a portion of your onsite needs and not largely over-produce energy. In almost every case, oversizing a solar system will only cost you more money and significantly lengthen the payback period on your investment. Using data from co-op members who have already installed solar, we found that sizing a solar system to cover 60% of your annual generation has the best and quickest return on your investment.

Cost of Reliable Electricity

There is a cost to ensuring your electric co-op’s grid can provide you with reliable electric when a solar panel is not producing needed electricity and one that takes the energy a solar array will produce. This cost is called the service availability or grid fee, and it is a fixed cost shared by all members of the co-op. It is essential that all members, whether they choose solar or not, pay their share to maintain the integrity of the infrastructure. So, if you hear anyone say “if you install solar you won’t have an electric bill” they are not being truthful, and we encourage you to call your electric co-op and inform them of this misconception.