Solar power is a booming business, and with any boom, there are people trying to take advantage of the excitement. If you're approached about solar power or go seeking information on a potential project for your home, keep the following in mind. Also, consider the important points laid out in the U.S. Department of the Treasury's Consumer Advisory about solar scams.

There are a lot of scams. Scammers are trying to get your personal information. Be aware of callers who ask for your personal information or say that they are from or work for SREC.

Don't be fooled. Your bill will not be zero. Companies make promises that are not always kept. Remember: your average electric bill helps determine the size and potential savings for solar at your home. According to EcoGen America, "Is Solar Worth It In NJ?," on average homeowners in New Jersey who have installed solar panels save $20 per month on their energy costs. This amounts to a total savings of $240 per year.

System Connection Fee. No matter how much energy your solar panels produce, you still must pay your system connection fee. The System Connection Fee (previously called the Facilities Charge) is a fixed charge on your monthly bill used by the Co-op to cover the expenses of maintaining and investing in improvements to our equipment and infrastructure. This is the cost of bringing power to you, the member. Every member pays this fee each month, regardless of kWh (kilowatt hour) use. Even when you are making use of solar panels to provide energy to your home, you still make use of power from SREC at nighttime or when the sun isn't shining. The system connection fee helps us maintain our power lines and ensure power can get to you when it's needed. For solar consumers, the system connection fee is outlined in our Tariff (page 41 of this document).

Sizing requirements. Generators cannot exceed one hundred percent (100%) of the member's previous year kWh usage per service location.

Companies who tell you that SREC does not work with them. Solar companies are trying to sell you a product in order to make a profit. Instead of telling you that they will not make enough money from you because of our low rates, many contractors will tell you that we do not work with them. This is untrue. SREC has over 150 residential solar installations in our territory that have been installed over the last decade plus. If they will not work with you, find someone who will.

Companies who tell you they have a "partnership" with SREC. Please note that Sussex REC's relationship with any solar company is limited to reviewing, approving, or rejecting applications and inspecting completed systems before issuing permission to operate. This is the standard relationship that a utility has with any solar company. We do not endorse any solar company and never have - we simply allow our members to choose for themselves who they will work with. If a solar salesperson comes to your door and claims their company has a partnership with Sussex REC, we encourage you to remain skeptical. If they are willing to lie about this, they will likely try to mislead you on other things such as how much their system may cost or how much money you'll be able to save with solar panels.

Do your homework!

It is important to choose the right installer. Some members recommend getting multiple bids to consider in order to find your best option. A bid should include the total cost of getting the PV system up and running, including hardware, installation, connection to the grid, permitting, sales tax, and warranty. A cost/watt and estimated cost/kWh are the most useful metrics for comparing prices across different installers, as installers may use different equipment or offer quotes for systems of difference sizes.

Here is a list of questions to consider asking each solar installer.

• Is your company familiar with SREC's interconnection process?
• Is your company familiar with the township's requirements, as well as the State Electrical Inspection process?
• Can you provide references from other members in SREC's service territory?
• Are you properly licensed/certified?
• Do you carry liability insurance?
• What is the warranty for this system?
• What happens between you and the contractor if you sell your house and you have signed a long-term contract with the solar contractor?
• Are there any state or federal tax credits that will help to reduce your out-of-pocket costs?
• What does a service call cost?

Remember to:

Ask how much energy the system will generate. Remember that the output of a renewable energy system is highly dependent on the weather and therefore will not generate at its full potential all of the time. Have your contractor run numbers using local weather data.

It is very important that you compare based on your cost per kWh from Sussex Rural Electric Cooperative. You may see big savings in literature which are based on Investor Owned Utilities that have higher rates than Sussex Rural, so make sure you compare savings to the rates you currently pay. Make sure your contractor's proposal includes the rate included in the solar application packet.

Will the system pay for itself in a few years? Ask your contractor about system upkeep and warranty issues. Check out the manufacturer's and contractor's references. Ask about and visit other local installations and talk to the owners. See what lessons they learned and what they have to say about system performance.

Solar companies have a responsibility to follow all of Sussex Rural Electric Cooperative's rules throughout the installation and interconnection process. We offer an online guide for solar companies, available here.

If you are interested in beginning the interconnection process with Sussex Rural Electric Cooperative, you can find a step-by-step guide and a link to our online interconnection application on our SREC Interconnection Process page.

For a quick overview of the process, consult the infographic below:

Net metering is the accounting process that SREC uses to bill for members that use solar power. This process requires replacing the current meter with a net-meter that is programmed to capture energy flowing from the SREC distribution system to the member's home and energy generated by member's solar that is flowing onto the SREC distribution system.

Please note: the net meter does not measure your solar output. During the installation phase, your solar company will install their own meter that measures the output of your solar system. Some of that energy will be consumed by your home "behind" SREC's meter. The net meter, installed by SREC at the end of the inspection process, only measures energy that passes through the primary meter, either flowing into the home or back out to our power lines. Effectively, the net meter is there to measure the difference between your electricity usage and the output of your solar system.

The Net Metering Process

The basic concept behind our net metering process is to accurately determine both power consumed and power produced. Based on these values, Sussex REC will calculate the monthly bill amount. At a minimum, the member's monthly bill will be the applicable service connection fee as defined by our tariff and further revised as per your specific situation. On a monthly basis, the Net Energy will be calculated by subtracting the "Received Energy" from the "Delivered Energy." Excess energy is "banked" and is purchased on an annual basis by Allegheny Electric Power according to your contract with them.

A more in-depth explanation of net metering can be found on our SREC Interconnection Process page.