Frequently Answered Questions

Costs and financial resources | System installation | Co-op function and organization

• How much will a solar system cost and will it cover all my electrical needs?


• How long does it take to get permits and how much will it cost?


• If I don't have funds available, are there programs available that will help me finance my solar system?


• Can a PV system save money on my electricity bill?


• Can a PV system pay for itself relatively rapidly?


• What determines the economics of a solar system?


• How much will I save by working with the co-op rather than contacting solar retailers and installers?


• Why should I buy through the co-op when I can get stuff cheaper on the Internet?


• Is the California Energy Commission (CEC) still providing rebates?


• Are there any tax credits for solar installations?


• If a co-housing community installs solar, do individual homeowners qualify for solar tax credits?


• Will a PV system add to the value of the home?


• What are the maintenance costs for a PV system?


• How can I better understand the financial aspects of a PV system purchase?

• How long does PG&E take to complete their part of the Net-Metering Agreement?


• I want a solar water heating system, will you be "bulk purchasing" these as well?


• I want to install wind turbines, will you be "bulk purchasing" these too?


• What about the PowerLight PowerGuard system?


• How can a PV array be installed to minimize aesthetic impact?


• I'm anticipating Homeowner Association resistance. How can the co-op help me?


• Are people installing systems with or without batteries?

• How did the idea for a co-op come about?


• Why a co-op?


• What are the advantages of a co-op versus a non-profit?


• Does the co-op do bulk ordering, in other words, lots of people purchasing at one time?


• How do I get additional information and stay informed on the current status of Cooperative Community Energy?


• Who do I contact?

Costs and financial resources

How much will a solar system cost and will it cover all my electrical needs?

The cost of a solar electric system will depend on how much power you consume and what portion of your total energy needs you want to supply with solar power. What follows is a quick example that should give you a rough idea of the investment, followed by some steps to guide you through your own analysis. You can also look at our sample PV system cost estimates.

Quick Example: A 2.8 kilowatt system should put a significant dent in the average-size home's PG&E bill and will cost about $24,000 (including installation cost and before rebates) if purchased from a local retailer in Northern California. The California Energy Commission "Emerging Renewables Rebate" program currently offers a rebate of $2.60 per watt, so this example system could get a rebate of around $6,300. The CEC applies various additional factors in their calculations, such as inverter efficiency and past usage patterns. Final cost for this example would be around $18,000 after rebate. Your system, and every system, will vary.

Your analysis: Look at your PG&E bill for a section called the "Electric Account Detail." Here are two figures of interest:

1. Usage - this shows how much electricity you consumed over the course of the month, expressed in units called "kilowatt hours". Typical usage for a modest 2-bedroom home will range between 350 and 700 Kwh (kilowatt hours).

Technical Note: A "watt" is a unit of power, but it is an instantaneous measure; the "hours" add the time element. Here is an example by way of an analogy: Your car runs out of gas. You can apply muscle power to push the car (think "watts" here) but you will need to apply that power over a period of time to push the car to the nearest gas station a block away (think "hours" here, though it should only take a few minutes). You will have expended energy (measured in units called "foot pound minutes").

2. Kwh per day - This is in the heavy border box at the bottom of the page (or at the top of the next page), right next to the "Electric Kwh" figure that looks suspiciously like your "Usage" figure. The Kwh per day breaks the monthly figure down to a daily figure. This is important because you want to compare your daily usage with the amount of power that you can generate each day while the sun is shining on your home.

Marin County gets an average of about 5.5 hours of "usable" sunlight each day; more in the summer, less in the winter. Using the 2 kW system in our previous example, we could generate about 11 Kwh of power each day. Do the math: 2 kW x 5.5 hours = 11 Kwh. A 3kW system would yield 16.5 Kwh daily.

Technical Note: The National Renewable Energy Lab publishes figures for solar radiation for various localities across the US. Figures for San Francisco are available online and also here on this site in spreadsheet format.

Resist the urge to rush out and buy a solar system. The first step is to conserve. We cannot emphasize this enough. A popular rule of thumb is that each dollar you spend on reducing your consumption (switching to compact fluorescent light bulbs and more efficient appliances) will translate into a $5 savings in terms of equipment cost you avoid with a solar system sized for your reduced electricity needs.

The next point to consider is that you may not want to completely eliminate your dependency on PG&E by producing all of your own power and getting "off the grid", as attractive as that may sound. There are some very practical reasons for this:

1. The California Energy Commission "Emerging Renewables" rebate program is only available to homeowners who stay connected to the grid and are able to feed power to the grid. This is called a "grid tie" system. No grid tie, no rebate. An "off grid" system will have the added expense of storage batteries to provide power at night. A "grid tie" uses the grid itself as a storage medium. However, many homeowners are opting for hybrid systems that are connected to the grid but also have back-up batteries to avoid the affects of rolling blackouts.



2. When you are producing more power than you are using, you will run your meter backwards and get credit off of your PG&E bill. This is called a "Net Metering", and it reduces the amount you owe PG&E. However, PG&E is not required to pay you for all the electricity you feed into the grid. If you reduce your PG&E bill to zero, that is all you will get "paid" for your excess electricity. After that, you are just subsidizing PG&E with your free electricity. We're assuming you don't want to do that.



3. Your investment payback period is determined by the utility costs that you offset by your solar installation, i.e. the money you would have spent on utility power. Since the utility rates are tiered and increase by usage, you will find it most cost effective to replace that portion of your bill that is above your baseline usage, since that is the most expensive power that you are currently purchasing.
   Be sure to check out our sample PV system cost estimates.
   Back to cost questions

How long does it take to get permits and how much will it cost?

Every municipality has different fees as well as different requirements. Solar installations are still relatively new and municipal building departments are still developing their procedures for handling this. The CCEnergy field representative in your area may provide this information as part of discussing a solar installation for you. Typically fees range from $200-500.  Back to cost questions

If I don't have funds available, are there programs available that will help me finance my solar system?

Yes. The California Energy Commission's "Consumer Energy Center" web site has financing resources for solar, wind and other energy systems. Also, many lending institutions that have traditionally shied away from financing solar installations have now changed their attitudes and are eager to finance the flurry of purchases now underway.

There are also a number of other incentive programs available to help homeowners with the financial aspects of going solar.  Back to cost questions

Can a PV system save money on my electricity bill?

Absolutely! A photovoltaic solar electric system starts producing electricity right away. The more electricity you generate, the less you have to buy from PG&E (or any other utility that services your area), translating into paying less on your utility bill.  Back to cost questions

Can a residential PV system pay for itself relatively rapidly?

Yes, but the payback period is tied directly to the cost of the electricity. If you use very little electricity at the baseline rate (typically 12.6 cents per kWh), then the payback period can be as long as 17 years. If you use a lot of electricity and are in the highest rate tier (around 26.5 cents per kWh), then your payback period can be as short as 5.5 years. Keep in mind that the PV modules have a 25 year warranty, so you can look forward to many years of free electricity.

Cost recovery is typically faster in the early years than in the later years. In some scenarios, residential purchasers can recover about 50% of the system cost within the first two years, and about 75% of the cost within 5 years. This cost recovery rate is dependent on many factors such as how much of the purchase cost is financed, the rebate amount, the loan interest rate, the loan period, and the rate of inflation.  Back to cost questions

What determines the economics of a solar system?

In general terms, a solar system's economics are influenced by such factors as the amount of sunlight available at the site location, seasonal energy usage and load, desired level of utility cost offset, system sizing, local utility rates, available solar incentives, air conditioning savings, site roof condition and maintenance, tax credits, improved power quality, purchasing power of selected solar equipment vendor, and special site needs.

The type of installation in question -- residential, business, or municipal -- also affects the economics. For example, businesses installations can qualify for a federal investment tax credit in addition to state tax credits. Municipal installations may be able to advantage of special renewable energy bond funding.  Back to cost questions

How much will I save by working with the co-op rather than contacting solar retailers and installers?

The co-op can help you save on the equipment costs (not the labor costs) by getting prices that are close to wholesale prices. Retailers will charge a markup of about 40%. Co-op members typically save money becuase our prices are typically lower than other solar retailers.  Back to cost questions

Why should I buy through the co-op when I can get stuff cheaper on the Internet?

We appreciate your wanting to get a great price on your equipment. It's no secret that you can get just about anything on the Internet cheaper than what you pay in a retail store. Why is that? The difference is in service.

Will the Internet retailer:

• Come to your house and do a detailed energy analysis, climb up on your roof to take detailed measurements for sun exposure and shading, and generate a CAD drawing to show you where to locate your array?


• Screen qualified installers in your area and make recommendations to help you to decide on whom to hire?


• Handle all of the paperwork required to deal with the California Energy Commission, your local building department, and your special relationship with PG&E?


• Make sure that the installer has done a proper job based on current NEC requirements? Does he know of the local ordinances that affect your installation?


• Be there to handle warranty issues if your array is not functioning properly? Will he come to your house to perform diagnostics to determine if a piece of equipment is defective, and arrange for speedy replacement?

Broadening the scope a bit, will he:

• Stay abreast of the changing regulatory environment that will impact your project? Will he send out email alerts to make you aware of these issues and give you a way to affect the outcome? Will he go to Sacramento to lobby on your behalf (as we did recently) so that the lawmakers don't take away laws and funding that make solar power legal and affordable?


• Sponsor local training workshops to educate the local building department and fire department officials so that they understand solar technology and start approving permits for these projects?


• Initiate local energy policies that make it possible for you to participate in a Municipal Utility District or energy cooperative where you can buy and sell your clean energy with your neighbors?


• Spend his dollars locally to support the local economy and employ others in local renewable energy?

As you may have guessed, these are all services and benefits provided by our co-op that are not provided by Internet retailers. Back to cost questions

Is the California Energy Commission (CEC) still providing rebates?

Yes, the California Energy Commission rebates are still available, through the "Emerging Renewables Program". IMPORTANT NEWS: The current Emerging Renewables Program (ERP) residential rebate is $2.60 per watt but the rebate amount and rules will change in January 2007 with the new California Solar Incentive (CSI) program. Both the ERP and Self-Generation Incentive programs will replaced with the CSI along with many new rules and requirements. The initial rebate rate under CSI will be $2.50 per watt.
Read more about CSI » | Get up to speed on oustanding issues »

The basic theory behind incentive programs is to reduce the rebate rate as the market grows and solar becomes less expensive.

One of the newer rebate program requirements is for all eligible PV systems to include either a performance meter that measures the total energy produced by your system in kilowatt hours or an inverter that contains internal metering and display equipment.

Keep checking this web site for rebate information, or you can call CCEnergy directly at 1-877-228-8700. You can also find out more about CSI on the California Public Utilities Commission's website or the state's newest website: www.gosolarcalifornia.ca.gov.
  Back to cost questions

Are there any tax credits for solar installations?

Yes, both the federal government and the State of California offer tax credits for residential and commercial solar energy system installations. California provides a 7.5 percent solar tax credit that can be applied to your personal income tax. For more specific tax credit information, See our financial incentives page for more links and downloadable tax forms.  Back to cost questions

What about rebates offered by the Federal government?

The 2005 Federal Energy Bill created a new 30% tax credit for residential solar installations for two years, capped at $2,000. This credit applies to all property placed in service after December 31, 2005 and before January 1, 2008. Commercial solar installations get a 30% tax credit until January 1, 2008.  Back to cost questions

If a co-housing community installs solar, do individual homeowners qualify for solar tax credits?

Yes! Individual members of cohousing homeowners associations in California are eligible to claim a portion of the 7.5% photovoltaic system tax credit on their state tax returns, based on their pro-rata share of their ownership of the common property. See our financial incentives page for more specific tax credit information, links, and downloadable tax forms.  Back to cost questions

Will a PV system add to the value of the home?

The real estate appraisal industry is just now beginning to recognize the value of a photovoltaic system. A microwave oven added more value to a home in 2002 than an electrical generation system that would make the home energy-independent. This view is changing rapidly as more realtors become familiar with the benefits of a PV system. A similar process occurred with energy-efficiency improvements such as double-paned windows, insulation, and EnergyStar appliances. These were not initially recognized as adding value; it has taken years for Realtors to realize the benefits and include this in their appraisals.

The true value of the PV system is the value of the electricity that the system will produce during its warranted life. The general rule of thumb is that a home's value increases $20 for every $1 in reduced energy costs annually (according to the trade publication Appraisal Journal). Furthermore, at least through 2005, adding a solar system does not adversely impact property tax assessments.  Back to cost questions

What are the maintenance costs for a PV system?

A properly installed system should not require any regular maintenance other than periodically rinsing the modules with a garden hose if you are in an area that gets a lot of dust or pollen. PV modules have a 25-year warranty and inverters have a five-year warranty. To be conservative, plan on replacing the inverter once during the 25-year PV module lifespan, but that cost is typically less than 10 percent of the overall system cost.  Back to cost questions

How can I better understand the financial aspects of a PV system purchase?

You can think of a PV system as an insurance policy and an annuity. The "insurance policy" of a PV system protects you from uncertain supply and rising energy costs over the next 20-30 years. Right now you are subjected to energy market fluctuations, not knowing whether electricity will be available and at what cost. With a PV system, you will be secure in the knowledge that you will always have electricity at a known cost.

The "annuity" analogy applies because you purchase the system at a fixed, up-front cost, and then enjoy the benefits every month in a "payment" equal to the value of the electricity you produce. The net present value of this "payment" stream can be well in excess of the initial cost of the system.  Back to cost questions

System installation issues

How long does PG&E take to complete their part of the Net-Metering Agreement?

PG&E estimates that it will take 10 days to get a technician to visit the site once the Net-Metering Agreement (now called "Net Energy Metering" or "NEM") is submitted. PG&E expects that your system remains "off line" until they inspect the system and make sure there is a disconnect switch to take your system off line in the case of a nearby line repair. After they confirm the disconnect, then you start contributing watts on the grid and the net-metering starts.  Back to installation questions

I want a solar water heating system. Will you be "bulk purchasing" these as well?

We will not do "bulk purchasing", for the reasons mentioned, above . However, many members have asked us to provide solar heating equipment, so we are now purchasing this equipment for our members. At some point we will consider expanding to also purchase wind turbines, micro-hydro turbines, fuel cells, and energy-efficient appliances.  Back to installation questions

I want to install wind turbines. Will you be "bulk purchasing" these too?

A qualified yes. The co-op is focusing on solar PV (photovoltaic) systems and has gained considerable expertise and knowledge of that market. This has enabled us to negotiate some good deals with manufacturers and suppliers and offer the equipment at competitive prices right now. Wind is certainly available; in fact, we are adding wind to a hybrid wind-PV system in the West Marin area. Eventually wind will be as well integrated into the co-op as PV, but not for now.  Back to installation questions

What about the PowerLight PowerGuard system?

This is an excellent choice for very large flat-roof installations, such as Moscone Center or the Alameda Correctional Facility. PowerLight does not typically bid on systems smaller than 100 kW in generating capacity. Because a residential system will be between 1.2 kW and 10 kW, the PowerGuard system is really not an appropriate choice for a residential purchaser.

Schott Applied Power is about to begin offering a flat-roof product similar to the Powerlight product. This will be more suitable for smaller systems, and CCEnergy will offer the product when it becomes available.  Back to installation questions

How can a PV array be installed to minimize aesthetic impact?

An array can be mounted flush to the roof in order to minimize its visibility. Keep in mind that an array operates at peak efficiency when oriented due South and at a tilt equal to the latitude (about 38 degrees in the Bay Area). Reducing the array tilt will reduce its efficiency; a flat mount will lose about 11% efficiency from optimal tilt. Even a slight tilt will dramatically improve efficiency, and will tend to be self-cleaning by shedding rain water.  Back to installation questions

I'm anticipating Homeowner Association resistance. How can the co-op help me?

First of all, the California Legal Code prohibits restrictions to renewable energy installations for planned communities. In fact, the CEC web site has published a white paper that addresses this issue. The co-op can act as an advocate on your behalf. Homeowner associations not inclined to be receptive to the needs or desires of a single homeowner who wants to "rock the boat." However, they tend to be much more responsive when an organization of homeowners expresses a desire to move toward renewable energy options in their community. There is truly strength in numbers. The co-op can provide those numbers and offer up solutions that have been successfully implemented in other planned communities.

More information specifically about solar installations for dwellings belonging to homeowner associations can be found at:

• California Solar Rights Background
  How and why the California law prohibiting restrictions on solar energy systems installations came to be.


• California Solar Rights Act of 1978
  Details of California Civil Code 714 prohibiting restrictions on the installation of solar energy systems.


• Rights for Residents of Home Owner Associations, Solar for Planned Communities.

Back to installation questions

Are people installing systems with or without batteries?

About 40% of those systems going in today are a grid-tie with battery backup vs. grid-tied only.  Back to installation questions

Co-op function and organization

How did the idea for a co-op come about?

On Earth Day 2002, Sustainable Fairfax held its Solar Energy forum, which happened to coincide with the biggest energy "crisis" since the mid 1970s gasoline shortages. Hundreds of citizens attended the event and the follow up of interest was overwhelming. Sustainable Fairfax had organized the event to make people aware of solar energy options and to instigate community action to come up with our own solutions to the energy "crisis". The co-op is a solution that evolved out of a series of meetings and investigations over the ensuing two months. It will give a lot of people what they say they want: lower cost clean renewable energy equipment and quality installation services.

The initial strategy was to organize a bulk purchase of photovoltaic equipment. The purpose of a bulk order was to aggregate the demand for a product to take advantage of volume discount pricing and to provide leverage to negotiate the best prices. In the course of our research into the solar equipment market, we have learned a lot about its pricing structures and dynamics.

Our first thought was to select a local distributor and place a large order for the equipment they carry in hopes of getting some price break based on the size of the order. This approach had the benefit of simplicity and expediency, but fell far short of our expectations regarding discount pricing and selection.

Our next strategy was to widen our search to include the equipment and suppliers that have been approved by the California Energy Commission. We researched the equipment to better understand what is most appropriate for our typical homeowner and contacted the suppliers to negotiate the best prices.

Based on the estimated size of the orders over the next several months (about 2 megawatt) a number of industry experts, including the distributors, recommended that we go directly to the manufacturers to get the best prices. By doing this, we would be acting as a wholesaler/distributor, and would need to structure a business entity, such as a buyer's co-op, to process the orders.

There was a lot of discussion about creating installation services, and installation services may be included in the future, but for now we want to get equipment and start getting installations started by selecting well qualified independent installation professionals in our community. We have come to appreciate that the long-term success of renewable energy depends on vigilant compliance to rigorous engineering standards, so we are building processes by which we will ensure a high level of quality for the installations done for our members.  Back to co-op questions

Why a co-op?

A co-op exists to benefit its members. This is a different relationship than the typical buyer-seller relationship where the seller is driven by the desire to maximize profits at the buyer's expense. Nothing wrong with that...it's the way most businesses run in America. However, the cooperative model is an alternative that we think makes a lot of sense for regular folks who are interested in purchasing solar PV equipment and getting it installed on their property. As members, you get to vote on co-op policies and know that the co-op will be responsive to your needs.

• Want better pricing? We will work very hard to get you the best price available.
• Want better information? We will gather the best information from the most respected sources and present it to you in a way that makes sense to regular folks, not just the techies.
• Want more of a voice in energy policy? The co-op can provide a means to inform and mobilize our members so that we can speak with one very powerful voice. Basically, the co-op is a means to pool funds and resources to help its members achieve their goals.

  Back to co-op questions

What are the advantages of a co-op versus a non-profit?

A clarification may in order. The terms "non-profit organization" and "Cooperative" are pretty much mutually exclusive in the legal sense. This distinction is muddled by sometimes conflicting State and Federal laws on the matter. In essence, a non-profit organization must work for the good of the public community without favoring any group or organization. A cooperative organization works for the benefit of its members, though it may--and often does--also provide significant benefits to the community at large. State law has placed co-ops in the category of "non-profit" to distinguish them from standard "for-profit" corporations; this is mainly due to the requirement that a co-op distribute its "profits" to its members, so the co-op itself does not show a profit at the end of the year. So, the co-op resides in a middle ground between "non-profit" and "for-profit" that provides many of the benefits of each.

Since a non-profit cannot act on the behalf of specific individuals, such as those wishing to purchase solar equipment, it is not the right type of organization for such an activity. We could not qualify as a non-profit organization under IRS rules. A co-op, on the other hand, is ideally suited to this type of activity; in fact, they were developed for the specific purpose of helping individuals organize their economic resources for their common good, such as agricultural co-ops. Food co-ops operate on a similar principle whereby individuals band together to aggregate their purchases to get goods at wholesale prices and pass along the savings to the members. This co-op was formed to serve the same purpose, aggregation of demand, but to purchase solar equipment instead of food.

A co-op is a democratically controlled organization, whereas a non-profit organization is not. This means that a co-op must be more responsive to the needs of its members, reflecting the needs of the communities in which those members live. It is typical for co-op members to vote to allocate funds for community based projects and organizations rather than distribute their "profits" amongst themselves. This gives a cooperative organization a certain amount of economic leverage to fund "good works" in their communities that might otherwise go unfunded by municipal or other government entities.

We are aware of other groups in the Bay Area that are forming co-ops similar to our own. This is great news because it will make it possible for us to cooperate with them to further aggregate our purchasing power for lower prices. This aggregation will also give us leverage to make the market, from manufacturers to system integrators to installers, more responsive to the needs of our communities. It will also help to define a larger market into which manufacturers can sell, which will spur them to invest in more manufacturing facilities (maybe in our community) and further lower the cost of equipment.  Back to co-op questions

Does the co-op do bulk ordering, in other words, lots of people purchasing at one time?

We do not place massive bulk orders. In order for bulk orders to be an effective discount mechanism you need to have a large group where everyone agrees to buy exactly the same equipment at exactly the same time. This sounds great in theory, but is virtually impossible in practice. Everyone has different system requirements and timing. We have found that it works better for people to take their own time and buy through a single organization, like this co-op, that aggregates the demand over time. The co-op can negotiate a better price initially and, as volume increases, negotiate better prices over time.  Back to co-op questions

How do I get additional information and stay informed on the current status of "Cooperative Community Energy"?

This web site is updated often, so check back frequently for news and notifications. This site also has technical information regarding solar equipment as well as a mailing list and resource links.  Back to co-op questions

Who do I contact?

You can contact Cooperative Community Energy by calling (877) 228-8700 or emailing us at info[at]ccenergy.com. Back to co-op questions