You’ve seen the depressing headlines. Hawaii electric bills continue to climb to record levels with little relief in sight, and if you use air conditioning or a pool pump daily, it’s even more painful on the pocketbook.  Costly utilities are a price of living in paradise.

On the  bright side, with tons of sun, established incentives and new financing options, solar power now makes more sense than ever.

Hawaii’s top solar experts share the inside scoop on their secrets for plugging into and saving on photovoltaic (PV) for your home.

Solar companies seem to be springing up every day.  How do I know which one is right for me?

Answer: Do your homework: Ask for references from past clients, verify number of years of local
experience, research the panel brand and go with a reputable company. “Look for experience,” says Mike Benes, sales manager at Hawaiian Island Solar. “Choose a contractor you can trust based on their track record and their thorough explanations of everything from equipment to tax credits.”

Inside Scoop: Ask your friends and family. “Ninety-five percent of our business comes from referrals,” says Eric Carlson, RevoluSun principal. “That’s the beautiful thing about Hawaii, everybody knows everybody. If you do good work, people are going to find out.”

How much does it cost to completely convert a typical island home to PV?

Answer: Depending on a variety of factors (difficulty of job, system size, quality, etc.), approximately $20,000 to $40,000. A moderately sized system will cost half that. Of course, tax credits can greatly reduce your cost.

Inside Scoop: Now’s the time to make the switch to PV. “Solar-system pricing has dropped nearly 50 percent since 2008,” says James Whitcomb, CEO of Haleakala Solar. “It’s one of the best investments you can make because it’s good as long as the sun keeps coming up.”

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Did you know?

The return on investment for PV is faster for those living in sunnier locations such as Ewa Beach, Kapolei, southern Honolulu and Waianae. Of course, solar makes sense everywhere in Hawaii, since all areas get relatively high levels of solar energy annually.

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How long does it take to get the return on my investment with PV?

Answer: While you’ll start seeing savings on your electric bill immediately, it will take time to completely recoup your investment. An investment in a PV system typically pays for itself in approximately four to seven years. The system’s expected life is 30 to 40 years.

Inside Scoop: Be patient; your PV investment will pay off quicker than projected if rates continue to climb. “As electric-bill rates climb, the system continues to save more and more money. In the end, it will pay for itself many times over,” says Benes.

What sort of rebates and tax credits are available?

Answer: Both solar-system types (PV, which converts sunlight into electricity, and solar water heating or SWH, which uses sunlight to produce hot water for the home) qualify for a 30 percent federal tax credit with no cap and a 35 percent state credit with a cap of $5,000 per system per year. There are no rebates for PV, but you may qualify for a $750 rebate from Hawaii Energy Efficiency Program (HEEP) for a SWH system. All incentives are carried over from year to year until exhausted.

Inside Scoop: While the federal tax credit is in place until 2016, the state tax credit has no specific expiration date. But that can change with every legislative session. Carlson is hopeful the state tax credit will stay in place. “It’s helped spur our local industry, which has created thousands of local jobs,” says Carlson, whose company RevoluSun has doubled its residential volume since 2010 and expects to do so again in 2012.

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Did you know?

Hawaii ranks HIGHEST in the United States in electric-energy costs:

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What types of financing options are available?

Answer: Solar companies will help their customers find financing. Many partner with financial institutions that offer loan packages for solar home energy. Having good credit is crucial. A good rule of thumb is that if you can afford a larger initial investment, do so. “If you have cash or credit, we advise that you go that direction for the best return over the long term,” says Rolf Christ of R&R Solar Supply.

Inside Scoop: Can’t qualify for  financing? Consider leasing. Many solar companies are now offering leasing as an option if you have little or no money to put down, but you won’t receive any tax or energy credits. “Leasing is a good option if you don’t have cash or you can’t get credit,” says Christ. Carlson agrees, “Leasing has opened the door to make solar doable for more people. Young families just starting out can now afford it.” Hawaiian Island Solar is now offering its SolarWorld Lease option, in which the cost of a system can be zero. Hawaiian Island Solar pays for the PV and charges you a low monthly fee for the energy your system generates. Your monthly lease payments will automatically be lower than your old electric bill, which translates into savings. Other solar providers, including Haleakala Solar, Lighthouse Solar Hawaii and RevoluSun, offer similar lease programs.

Is it better to install a few panels every year or to do it all at once? 

Answer: Tax credits are key factors when considering how much PV to add and when. It’s all a matter of timing. “It depends on personal preference and whether you believe the tax credits will be there in the future to support the purchase,” says Benes.

Inside Scoop: “There are no changes on the horizon that would increase the tax benefits, only the possibility that some of the credits may be taken away,” says Whitcomb. “There is no reason to wait unless you have low electric usage or cannot afford a system.”

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Did you know?

Residential electric bills on Oahu hit record highs at the end of 2011 due to rising fuel costs.

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Can I get credit for my excess solar power?  

Answer: Net Energy Metering (NEM) allows you to “sell” extra electricity that you produce back to the utility. The NEM agreement allows the customer to carry over unused credits (excess net generation expressed as a monetary value) to future bills within a 12-month period, starting from when the agreement is executed. Unused credits left at the end of each 12-month reconciliation period may not be carried over to the next 12-month period. Your PV contractor should be able to help you obtain a NEM agreement. “Without a net-energy metering agreement with HECO, residential PV would take much longer to pay for itself,” says Benes. Another option is Hawaiian Electric’s Feed-in-Tariff (FIT) program, but that’s usually a better fit for larger residential systems and small businesses.

Inside Scoop: “Net metering is the best option to recover your investment fast, because you are saving at the full retail rate,” says Christ.

Are some types of roofs better than others for solar?

Answer: Composition shingle roofs and standing-seam metal roofs are the easiest. Monier and other fragile tile, as well as heavy shake, are the most difficult.

Inside Scoop: “An experienced contractor will have proven methods for installing PV on every roof type,” Benes says.

How do I calculate how many panels I need?

Answer: Talk to a PV professional. “We look at the homeowner’s electric bill to establish the baseline kilowatt-hours they consume per month,” says Mark Kelley, owner of Lighthouse Solar Hawaii. The company will then size a system to eliminate the average usage or any portion thereof.  Sometimes tax-credit considerations play a role in this decision.

Inside Scoop: “A good solar company should be able to estimate savings to within 5 percent of actual savings, plus or minus. Ask the company if it can guarantee a savings range,” says Whitcomb.

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Did you know?

Last year, Hawaii installed more solar power per person than any other state except Nevada.

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What sort of preparations should I make to my home for PV installation?

Answer: Most experts agree, take the time to make your home energy-efficient first. If you use a lot of electricity on cooling, having a tighter thermal envelope will keep the cool air in, and you won’t need as large a solar array to offset your costs. You may also want to consider the condition of your roof. “If your house is pretty old, you may want a roofer to determine whether or not you need to re-roof before you install PV,” says Natalee Stewart, Photovoltaic Specialist for Hawaii Home Expo.

Inside Scoop: “Ask your contractor for a home-energy audit,” says Larry Ponce, owner of Solar Services Hawaii. “They can help bring down your usage and that adds up to even more savings once you install your PV.” Swapping out incandescent bulbs for energy-efficient CFLs and LEDs, using Energy Star®-rated appliances, and sealing doors and windows can shave 10 percent to 15 percent off your electric bills.

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Things To Do

Follow these steps to make your home more energy efficient and get the most value out of your solar investment:

1. Switch to Energy Star®-rated appliances.
2. Upgrade or replace windows and doors to keep the cool air in.
3. Plant shade trees around your home.
4. Trade out your incandescent bulbs for CFLs.
5. Use ceiling fans rather than A/C.
6. Take shorter showers.
7. For more expert advice, ask your solar provider for a home-energy audit.

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Besides tracking my monthly bills, how do I know my PV is working?

Answer: Many solar systems come with Web-based monitoring so you can log in to a secure website and see your system’s production in real time. A good monitoring system will track both incoming and outgoing power. 

Inside Scoop: “By monitoring the system, you can make sure it is producing the amount of energy it’s supposed to. It is 100 percent worth the cost to have a system monitored,” says Whitcomb.

What can I do to protect my investment?

Answer: Ask about warranties. Depending on the brand, PV systems typically have warranties of 20 to 30 years on power output and five to 10 years on materials. Note that installation work is separate. Solar hot-water panels usually carry 10-year warranties or more. Ask for a copy of the warranty and read carefully. “Some actually exclude places surrounded by salt water, so Hawaii is not covered,” says Ponce. “People need to read the fine print.”

Inside Scoop: “Warranties are only as good as the companies that back them,” warns Benes. “If a company goes out of business, the warranties disappear with the company.”  

WHERE TO GET IT

Haleakala Solar
2700 S. King St., Honolulu
955-0050
Maui Mall, 70 E. Kaahumanu Ave., Kahului
808-871-4059
haleakalasolar.com

Hawaii Home Expo
2933 Koapaka St.
836-3449
hawaiihomeexpo.com

Hawaiian Island Solar
Waimanalo
261-9740
hawaiianislandsolar.com

Lighthouse Solar
783-0357
lighthousesolar.com

R&R Solar Supply
922 Austin Lane, Bldg. D
842-0011
randrsolar.com

RevoluSun
1600 Kapiolani Blvd., #1700
748-8888
revolusun.com

Solar Services Hawaii
721-3585
solarserviceshi.com