Solar Companies Helena MT help businesses and homeowners reduce their electricity costs by generating power from the sun. They also provide jobs in construction, sales, and other areas.
The best solar company is one that offers a variety of options for their clients. These include a rooftop installation, an on-site battery storage solution, and a hybrid system.
A solar energy system can save you money and help the environment by reducing your local electricity costs. However, you might be curious about how much this technology actually costs to install. There are many variables that affect the cost, and a good solar installer can explain them to you. The first step is to determine your annual electricity consumption. This can be done by looking at your utility bills or contacting your local electric company. It is important to account for seasonal variations in usage as well as possible changes to local electricity rates over the next few years.
Once you know your electricity consumption, you can compare it to the amount of power your solar system will produce. This is known as your levelized cost of electricity (LCoE). It’s a measure of how much it costs to generate a single unit of electricity through various methods, including fossil fuels, wind, and solar. It’s usually expressed in dollars per megawatt hour ($/MWh).
Soft costs, or non-hardware expenses, can account for more than half of the total project cost. These include permitting and inspection fees, interconnection costs, engineering and design, and insurance and warranties. Many of these expenses depend on your building’s location and accessibility. For example, a system installed on a roof with a steep pitch may require structural engineering work and expensive cranes.
Solar tax credits and other incentives can cut the price of a solar system by up to 50%. For homeowners, a 5 kilowatt (kW) system costs about $13,550 before federal incentives. This includes the 30% federal solar tax credit, which can be increased to 40% or even 50% for businesses located in an “energy community” or that meet domestic content requirements. In addition, commercial solar systems qualify for accelerated depreciation under the Modified Accelerated Cost Recovery System (MACRS).
Experience
Choosing a solar company is more than just selecting a contractor who can install panels on your roof. You also need to choose a company that offers a wide range of services, including warranty coverage and maintenance plans. When evaluating a solar company, be sure to ask about their experience and track record in the industry. You should also look at customer reviews and how the company responds to praise and criticism.
Many states offer rebates and incentives to help make going solar more affordable. These can reduce the payback period, which is the time it takes for energy savings to offset the initial investment. You should also consider the financing options available. For example, you can get a loan with low interest rates and monthly payments that are lower than your current electricity bill. Solar loans are typically available for up to 30 years, which means you can enjoy the benefits of solar for decades.
When considering a solar installation, you should only work with experienced professionals. A reputable solar company will provide a customized recommendation for your needs and location. They will also be able to guide you through the entire process, from installation to maintenance and ancillary equipment. They will help you understand the different options and benefits of each, and can explain the impact on your utility bills and the environment.
The solar installation process is complex and requires the right expertise to ensure the project is completed correctly. For this reason, it is essential to look at the company’s track record in the industry and the number of installations they have completed. You should also check the quality of the racking system and inverters used, which are critical components in a solar power generation system.
Licenses
There are a number of important licenses, permits, and insurance requirements that solar companies must have in order to operate smoothly. Failure to obtain the proper documentation can result in fines and legal trouble. In addition, without the proper documents, a company can lose business and be forced to close down.
Solar installation requires the installation of a complex electrical system and roofing techniques, which must be installed according to local building codes and safety regulations. Licensed solar contractors are required to have extensive experience with both electrical and roofing systems, as well as knowledge of building codes and solar energy technologies. They also must pass rigorous exams and participate in ongoing training to keep up with changing technology and safety protocols.
Typically, solar project developers must negotiate and obtain a permit with the local utility company to ensure grid interconnection. This can involve a detailed process of submitting engineering reports, load calculations, wiring schematics, and safety plans. Other environmental permitting processes may include wildlife surveys, archaeological/cultural heritage assessments, and stormwater management. Depending on the location of the solar project, water rights and use permits, and environmental impact statements may also be required.
Several reliable online tools make it easy to check whether a solar contractor is licensed in your area. However, it is essential to avoid contractors who pressure you for an immediate decision or demand full payment upfront. Also, look out for red flags like a lack of a physical business address and insurance documentation.
Another important requirement for a solar maintenance company is to have liability and workers’ compensation insurance. These types of insurance cover damage to property and injuries to employees. Moreover, health permits are often necessary if your maintenance services involve handling chemicals or other potentially hazardous materials.
Insurance
As a solar company, it’s crucial to have the right insurance policies in place to protect your investment and business. This includes a builder’s risk policy to protect your materials during construction and installation, plus additional coverage to cover “soft costs” such as labor, financing, and loss of income. It’s also important to review your policy details and consider adjustments to ensure comprehensive coverage, particularly in regions prone to hail or wind damage.
Solar installers should also carry general liability insurance to protect themselves against any accidents that could occur on the job. These policies typically include protection for property damage, bodily injury, and more. In addition, it’s worth considering a business interruption insurance policy to help you pay for lost revenue while you await repairs.
Specialized solar-specific insurance policies are also available. These policies address the specific risks associated with photovoltaic systems, including damage to components, inverters, and loss of energy production. In addition, these policies can include additional benefits such as a warranty that covers manufacturer default and bankruptcy protection.
Regardless of the type of solar panel system, it’s essential that you notify your insurer about the new installation before or immediately after installation. Failure to do so could invalidate your existing coverage and leave you unprotected.
While the majority of solar projects go smoothly, there are many potential hazards that can arise. For example, construction sites can be vulnerable to theft, vandalism, and other risks. Furthermore, equipment can be damaged during transportation or in storage. To safeguard your investments, it’s best to work with an insurance broker with experience in energy and climate tech, such as Brown & Brown’s Energy & Climate Technology Team.
Incentives
The cost of solar can be high, but there are many incentives that can reduce the initial investment. These can be in the form of cash rebates, tax credits or depreciation. These incentives help to make solar energy more affordable for businesses of all sizes. They can also help to offset the high cost of electricity and encourage companies to go green.
For instance, businesses can claim the federal Investment Tax Credit (ITC) to cover 30% of the upfront cost of a solar system. This incentive will save the business money and improve its ROI. Additionally, some states offer additional incentives for installing solar panels. For example, Walmart has taken advantage of these incentives to install solar systems at more than 360 locations across the country. These systems cut their energy costs, and the accelerated depreciation under the Modified Accelerated Cost Recovery System (MACRS) allows them to recover the investment within five years.
Another popular incentive is the Solar Energy Certificates (SRECs). These certificates are awarded for every kilowatt-hour of power that the solar panel produces. The SREC market is based on the spot price of electricity, so it can provide a lucrative income stream for businesses that produce large amounts of solar energy. In addition to SRECs, some solar companies offer performance-based incentives, which pay the business for the energy it produces.
To determine if you qualify for these incentives, check out your local government’s website or contact your utility. Some utilities have set a minimum system size to qualify for their cash incentives, while others only give incentives for solar systems of certain sizes. Incentives are available on a first-come, first-serve basis, so you should apply for them as soon as possible. In addition, the NY-Sun incentive program uses a block grant structure that rewards early adopters with more money per watt of their system.