FAQ

DID YOU KNOW

Solar power can power through cloudy, rainy, and dark periods

Frequently Asked Questions

How does solar work?

Why should my business invest in solar power?

How can I tell if a solar power system makes financial sense for me?

What happens to the excess electricity if my solar power system produces more power than I can use?

How do I receive my credits for the solar energy produced?

How do I know what size solar power system I’ll need?

How much ongoing maintenance is required?

Is solar power reliable? How long will my system last?

What types of solar panels do you offer?

What happens when it’s dark or cloudy?

What is the Federal Solar Tax Credit?

How much can you save?

How do I file for the tax credit?

How do I use the tax credit to pay down my loan?

How does solar work?

Solar photovoltaic panels, made up of tiny silicon cells, collect solar radiation from the sun and convert it into an electrical current
The electricity from your solar array travels into an inverter located on your property
The inverter then converts direct current (DC) from the array into alternating current (AC). This is the electricity that is used to run appliances, TVs, computers, etc. You are now harnessing the power of the sun

Why should my business invest in solar power?

There are many reasons for businesses to invest in solar power, including:

Reduce or eliminate monthly electric bills
Earn credits for excess electricity sent back to the grid
Lock in utility rates now and insulate your business from future rate hikes
Increase the value of your business
Run a more environmentally friendly business
Boost your ESG score and make your business more attractive to eco-conscious consumers, investors and employees

How can I tell if a solar power system makes financial sense for me?

Sunworks will provide you with a set of financial solutions that establish the path toward long-term stability, predictability and cost savings. We work with design engineers to develop a financial model that considers all rebate programs and interconnection efficiency to achieve the highest returns possible.

You will save money on electrical costs for years to come as well as increase the value of your home, farm, or commercial building. Typically, our solar customers see a Return-On-Investment (ROI) within 3-8 years. If you are located in an area that offers greater rebates and/or incentives, you may be able to recover your investment even sooner.

What happens to the excess electricity if my solar power system produces more power than I can use?

Your solar power system will be connected to the grid. This means that any excess energy you produce is sent back to your local utility company to be used elsewhere. Most utility companies provide credits in return — essentially paying you to use the electricity you generate.

How do I receive my credits for the solar energy produced?

When you begin to generate your own solar power, your electricity bill will drop significantly. How much you can save depends on the size of your solar power system, your electricity usage and electric utility rate schedule.

Any power that you don’t use from your solar electric system spins your meter backwards, and you receive a credit from your utility company. This is called Net Metering.

The credits can be applied at retail rates, and in the middle of the day that means your credits add up quickly. You then draw the power back at night when rates are low.

In most states, the more grid power you use, the more you are charged based on your tiered usage. Solar helps by eliminating your usage in the high tiers and thus brings down your bills by shaving off the expensive power first. This is called Tier Shaving.

Additionally, electric rates have historically gone up at a higher rate than inflation over time. So the ability to fix your long term cost of energy yields a higher return on your investment over time.

How do I know what size solar power system I’ll need?

The optimum size for your solar power system depends on a variety of factors, and can only be determined after a thorough evaluation of your site.

Our team will start by gathering all of the necessary data about your home or business, property lines, flood zones and local restrictions, along with your required electrical capacity, solar metrics, and load characteristics. We enter each project with an open mind, looking to apply solutions tailored to your individual needs.

After assessing your requirements, the Sunworks team will help you make an informed decision by explaining the various configurations available in today’s market, along with the trade-offs inherent in each option.

How much ongoing maintenance is required?

Solar power systems typically require little to no regularly-scheduled maintenance due to the lack of moving parts. However, like any manufactured product, some level of service and maintenance may be required.

After installation, we continue to monitor your system for optimal performance and address any issues that arise. This includes analyzing your annual energy production and determining when your solar panels need to be cleaned to maintain peak performance over the course of your system’s life.

Should any service needs arise, Sunworks has a dedicated in-house Service team that handles all in-the-field maintenance and service projects.

Is solar power reliable? How long will my system last?

Yes, solar is highly reliable by any standard. Solar technology is a mature industry that has been around for over 50 years, with many of the initial solar installations still in operation today.

The solar power systems being built today are even more reliable than their predecessors, with modern solar panels designed to produce at least 80% of their initial power. Solar panels carry a manufacturer’s warranty and the inverters carry a 10-year warranty. Our comprehensive warranty works in parallel with all the traditional manufacturer warranties.

What types of solar panels do you offer?

Sunworks maintains professional relationships with multiple manufacturers of panels, inverters, and mounting systems, giving our team access to all of the equipment options they need to design an ideal system for your home or business.

Our in-house team includes seasoned, electrical and mechanical industry veterans who know the industry. They will select the proper components specifically tailored for your performance needs. By choosing the right components, our systems minimize electrical loss during transmission, optimize inverter loads and wire runs, and take advantage of design efficiencies.

When you choose Sunworks, you can rest assured that your solar power system is the most efficient possible for your application.

What happens when it’s dark or cloudy?

The solar power system will produce its best energy in direct sunlight and will produce slightly less energy on a cloudy day. During the night, your system does not produce any energy.

However, your Sunworks solar electric system is designed to draw enough power during the sunny days to offset the cloudy, rainy, and dark periods of the year. The solar power system will be interconnected to the local utility grid so power can automatically be drawn from the grid whenever needed. The switch between solar and utility grid power happens seamlessly, with no interruptions whatsoever. You won’t even know it’s happening.

What is the Federal Solar Tax Credit?

The federal government rewards you with a tax credit for investing in solar energy. The tax credit is a “dollar-for-dollar” reduction to the income tax credit you owe. Every dollar of credit rewarded is a dollar less you will have to pay in taxes.

How much can you save?

Taxpayers ay claim 26% of the total system cost which includes both labor and equipment. That is a lot of savings! Congress passed a spending bill that has extended the 26% through 2022.

How do I file for the tax credit?

To claim the tax credit on your solar power system, you must file the IRS (5695) form and record the information from that form (1040) tax form. Additional information on how to file your taxes can be found here.

How do I use the tax credit to pay down my loan?

Most of our loan partners provide the option to lower monthly payments in exchange for credit received from the federal government. We recommend reviewing the terms of your loan contract to determine if you are eligible to pay down your loan for a lower monthly payment.

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