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Solar Panel FAQs

What would a small solar energy system cost?
There are several components to the cost of a system, including the cost of the actual system; installation; the cost of interconnection; and maintenance. The 4 kW system at our Energy Park cost $30,378 installed. Typically, solar energy systems cost on average $8 to $10 per watt installed. This does not include interconnection and maintenance costs.

Are any incentives available for solar energy systems?
There are a number of tax incentives available for renewable energy systems. The US Department of Energy and Database of State Incentives for Renewable Energy websites are excellent resources for current information about federal, state and local incentives.

How much electricity can be generated?
You should first determine how much electricity you want to generate. Based on your current electricity usage, decide how many kilowatt-hours you would like your system to generate, then select a system size to meet your needs.

The exact amount of energy produced by a solar energy system will depend on product placement including tilt or angle, as well as other factors such as shading, dust, panel conversion and wire losses.  Solar panels are assigned a rating in watts based on the maximum power they can produce under ideal sun and temperature conditions.  You can use this rated output to estimate the number of panels you’ll need to assist in meeting your electricity needs.

When purchasing a solar energy system, the right choice will depend on how much sunlight your area receives, your budget, how much conventional power you want to offset with solar power, how much room you have on your roof or in your yard, and where the solar panels will be mounted.

Information about the current and historical output of the 4 kW solar energy system in Midwest Energy Cooperative’s Energy Park can be found at the Energy Park Data Center.

Some states, including Michigan, have net metering rules that restrict homeowners from generating more electricity than they would normally use. Check with your state utility commission for more information.

Does the cooperative buy the extra power I generate?
Midwest Energy Cooperative offers a net metering program. When a consumer uses electricity supplied by the cooperative, the electric meter moves forward. When the consumer’s renewable energy system produces more electricity than the consumer needs at any particular time, the excess is fed back into the grid and the meter rolls backwards. Any excess generation produced during a billing period is credited at the full retail rate (effective July 2009).

How do I get connected to the cooperative grid?  Does this cost anything?
Connecting your system to the grid allows you to send excess power to the cooperative. A packet of information outlining the specifics is available from the cooperative. There is a $100 non-refundable filing fee.

What, if any, permits and inspections are required to operate a solar energy system?
Check with your county planning or permitting department to find out about any zoning regulations and permitting requirements related to renewable energy systems on your property. Homeowners will need to obtain any local permits required before installation.  Typically, your installer will assist you in obtaining permits and clearance from your local officials.

What kind of payback can I expect in terms of breaking even?
A variety of things will affect your payback period, including the cost of the system and related operational/maintenance expenses, and the output you experience. You can determine your investment payback based on the two systems in our Energy Park by visiting the My Energy Usage tab under our Energy Park Data Center. Simply plug in your meter number and your payback, based on your usage and our system(s), will display.

How reliable are solar energy systems?  Will I have to perform much maintenance?
This really depends on the system you purchase. Most are designed for a long life and operate completely automatically. Proper maintenance will keep your system running smoothly, and most vendors recommend an annual inspection.

Where can I find out more about solar energy and where to purchase a system.
There is considerable research and information available to help you learn more about renewable energy technologies. You might start by asking renewable operators in your area for references, or contacting manufacturers of systems you are interested in and asking for a list of authorized dealers. Another option is to ask your state’s renewable energy organization or energy office. The Department of Energy provides contact information for state energy offices at their website.

In terms of up-to-date regional and national information about renewable energy technologies, two great resources are The Midwest Renewable Energy Association (MREA) and the US Department of Energy, Office of Energy Efficiency and Renewable Energy.