Question 1

What size solar electric system do I need?

Accepted Answer

The recommended size of your system depends on your business' power consumption.  If you want to completely offset your current electrical usage from the utility with a solar electric system, the first step is to review your annual energy consumption which can be obtained from your utility bill.  Commercial systems can range in sizes from 10,000W, up to and beyond 100,000W, or 1,000 to 10,000 square feet of solar modules.  Your needs will depend upon the size of your facility and your energy loads. ​

Question 2

Will solar improve my company’s image?

Accepted Answer

Absolutely!  Going solar will demonstrate that your company is committed to environmental responsibility.  Consumers are increasingly demanding that the companies they do business with engage in sustainable business practices.  Many large American companies have answered that call, and regionally, conscious storage facilities, retailers, grocery stores, water districts and small businesses have gone solar to show their commitment.

Question 3

What is the best orientation of my roof?

Accepted Answer

The best roof orientations tend to be Southeast or Southwest with South being the best.  Southeat to Southwest orientations will result in only a slight annual energy reduction of 2% to 4%.  If you have no shading issues then adding a couple more solar modules to your system size will compensate for these losses.The best roof pitch or tilt angle is 15 to 45 degrees, with only 2% to 4% loss compared to the perfect pitch.  Even a flat pitch will only result in about a 10% annual output reduction.

Question 4

Can the building owner sell power back to their utility?

Accepted Answer

Yes. Through net metering, any excess electricity generated will spin your meter backwards which has the effect of selling your excess power to the utility at a full retail rate.  On a monthly basis, you pay only the net of the power you used.  If you generate more power than you used in a month your utility company will forward your excess solar energy credits to be used during the next month.  This allows any excess energy generated in the summer to be used during the winter when there is less solar energy and usually higher energy usage. ​ Some  rate schedules have "demand charges," which enable us to meet customers’ peak power demands. These are in addition to energy charges, but the energy charges are lower than those on rate schedules without demand charges. Demand charges are: Facilities-Related Demand Charges, applied all year round.  Time-Related Demand Charges, applied only during summer months. Here's a breakdown of how each dollar we receive from customers is spent: 44¢ Generation Cost of energy sources, including solar, wind and natural gas, and generation SCE owns, including hydro and natural gas plants. 30¢ Distribution Grid maintenance and new equipment, including poles and wires, and substations. 8¢ Transmission Investment in operations & maintenance for high-voltage transmission lines. 4¢ Paying off long term contracts from the energy crisis. 14¢ Programs including those for energy efficiency and to protect low income customers. ​ ​Your energy charges are based only on the total amount of energy you consume. Your demand charges are based on the highest level of electricity supplied at one time during the billing period and at the time of day it’s needed by your business.

Question 5

How are demand charges calculated?

Accepted Answer

Demand charges are based on the highest 15-minute average usage recorded on the demand meter within a given month. If your facility tends to use a lot of power over short periods, your demand charges will comprise a larger part of your bill. If you use power at a more consistent rate throughout the month, your demand charges will generally be a smaller part of your bill. ​

Question 6

Why worry about demand charges?

Accepted Answer

Demand charges make up a significant portion of commercial and industrial customers’ total electricity costs: typically between 30 and 70 percent. Demand charges are increasing across the U.S., even while energy prices are decreasing.

Question 7

Who pays demand charges?

Accepted Answer

Demand charges usually apply to commercial and industrial customers that pay time-of-use rates and at certain bill sizes. Utilities usually install a demand meter once a customer reaches a certain demand level consistently. For example, 2000 kilowatt-hours per month for four consecutive months. Once demand billing begins, it does not end until monthly energy consumption has gone down consistently, dropping to less than 2000 kilowatt-hours per month for 12 consecutive months.

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