FAQ For Government Solar & Nonprofit

How do solar photovoltaic (PV) panels work?

Solar panels absorb the sun’s energy throughout the day and convert it into direct current (DC) electricity. Most homes and businesses run on alternating current (AC) electricity, so the DC electricity is then passed through an inverter to convert it to usable AC electricity. At that point, you either use the electricity in your house or send it back to the electric grid. See how solar panels produce electricity for homes, businesses, and farms.

What are the financial benefits of solar energy?

Home and business owners can often realize a 10% ROI or better. Given their longevity, the systems will pay for themselves well within their lifetime while producing clean energy. As energy prices continue to rise, the return on investment will also improve.

What are the environmental benefits of solar energy?

Solar is one of the best ways to decrease your carbon footprint. The Midwest is powered largely with coal, so each kWh produced from a solar system essentially saves one pound of coal from being burned. A solar electric system will offset the energy to produce the modules in less than 3 years – that means truly clean energy for the remaining life of the system over the next 25+ years!

How do I know what size solar electric system I need?

Your best starting point is to determine how many kilowatt hours (kWhs) your home used in each of the previous 12 months. With this, we can compare expected monthly solar energy production to your electricity usage. Annual electricity usage total is also a good start. You’ll find your monthly kWh records via paper copies of your utility bills, a phone call to your utility provider, or through your online utility account.

What is the best location for a solar array?

A south-facing area that gets sun from approximately 9 am to 3 pm is best. Solar systems also work well even when facing west or east, if that’s your best option. We can mount the systems on the majority of roof types, including a variety of materials used on pitched and flat roofs. Systems can also be ground-mounted.

How long do the systems work and how durable are they?

Solar electric systems are designed last more than 25 years.  Many solar electric systems from the 1970s and 1980s are still functioning today. Solar electric systems need very little maintenance and have a long functioning life. The solar electric panels themselves have a 25-year production warranty and will sustain 1-inch hail impact at 50 mph.

What tax benefits are we eligible for?

Tax-exempt organizations are not eligible to use solar tax benefits such as the 30% Federal Tax Credit or MACRS depreciation.

How do tax-exempt entities typically fund a solar project?

Tax-exempt entities may indirectly realize the savings of solar tax benefits by partnering with a for-profit third party who can purchase the solar equipment and perform the installation on behalf of your organization. Learn more about third-party financing for tax-exempt organizations by visiting our Government/Nonprofit Financing section.

Are there other ways to finance a project?

Aside from a Solar Power Purchase Agreement (PPA) or Lease through StraightUp Solar and our financing partner, your tax-exempt organization could also form a single-purpose business entity, usually in the form of an LLC. Tax benefits for the solar array, chiefly the 30% Federal Tax Credit and MACRS depreciation, would trickle down to the members of the LLC. Filing for an LLC will require legal expertise and approximately $1,000 in filing fees.

How can I teach my community or my students about solar energy?

StraightUp Solar is dedicated to fulfilling our CLEARE values, which include “Educate the Solar Lesson.” Please contact us to arrange an educational presentation for your organization or school.

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