Frequently Asked Questions (FAQs)

When will the Solarflow Energy Pilot Project start and how long will it last?

• The Solarflow Energy Pilot Project, partly funded by customers of Xcel Energy through a $1.5M grant from the Renewable Development Fund, is launched in two phases: a Solar Assessment phase, which started August 2008, and a Solar Installation phase, which started November 2009.
• The Solarflow Energy Pilot Project will end in the fall of 2010, which is the time it will take Solarflow Energy to install the 30-40 or so solar systems. To be exact, Solarflow Energy will deliver 280 KW of installed solar capacity, which translates roughly to 30-40 homes and small businesses, depending on the number of panels that each homeowner and/or business owner selects.
• Once the systems are installed, Solarflow Energy will continue to operate and maintain the solar systems beyond the 15 months of the Pilot Project. In addition, Solarflow Energy will continue to grow and add more customers after that.

In summary, the Solarflow Energy Pilot Project is just the beginning! 

What selection criteria will be used to determine the 50+ homeowners or businesses to be included in the Solarflow Energy Pilot Project? 

The key selection criteria for participating in the program include the following:   

• Homeowners or small businesses must have a long term plan to stay at their current locations
• Located in the Twin Cities area
• Currently an Xcel Energy customer
• Sufficient roof size with proper orientation to the sun
• Roof condition (depending on the time since installation, re-roofing, etc.)
• Shading factors (Ex: blockages due to trees, neighboring buildings, etc.)
• Ensure that homeowners insurance coverage includes solar panels
• Credit worthiness of the homeowner or business

What is the proper insurance coverage? 

Both liability and property insurance are required from the homeowner.  Liability insurance must be at a minimum $300,000 based on requirements from Xcel Energy.  Property insurance will have to be increased by the homeowner by an amount equal to the replacement value of the solar system added to the home.  Please note that this will entail an additional monthly cost to the homeowner for protection of the additional equipment on the house.

Is solar really viable in Minnesota? 

Yes, it is viable.  As a matter of fact, the Twin Cities have more annual solar energy potential than Houston, Texas, and nearly as much solar potential as Miami, Florida.  Even during cold winter days, Minnesota is blessed with blue skies and plenty of sun shine. 

Will my house or business still be connected to the power grid? 

Yes, you will be able to draw electricity from Xcel Energy when needed. You will also be able to sell back any excess energy to Xcel Energy when it is produced.  Actually, this will be the expected operation of the Solarflow Energy system:  ebb and flow of electricity providing the benefits of solar plus the reliability of the power grid.  And remember that your electric bill will be reduced either significantly or almost completely, depending on the number of panels that you select for your home. 

What is Net Metering? 

Minnesota state law provides net metering of electricity.  That means the following:

• At any time during the day, solar panels in your home will generate electricity depending on the sun conditions of that moment. 
• At the same time, you will consume whatever amount of electricity you require to carry on with your normal activities.
• The difference between what is generated and consumed either flows in or out of the house (thru the electric meter), ensuring that the solar panels and the power grid work together to serve your home. 
• Naturally, the meter will track the ‘net difference’ between what flows in and out of the house, thus the name ‘Net Metering’.

Are there any up-front costs to homeowners?

• The only up-front cost to home-owners is the deposit.  
• The deposit will be returned to the homeowner at the end of year 15 of the Service Contract, unless the homeowner decides to end the Service Contract before that term.  In that event, Solarflow Energy keeps the deposit. 
• Solarflow Energy will hold deposits in interest bearing accounts, thus returning each deposit with the interest earned.  

How much is the deposit and how much is the monthly lease? 

Pricing and deposit amounts for residential sites are listed below. For larger commercial systems, please contact Solarflow Energy for a quote.

What is the Solarflow Energy Service Contract and what are the lease terms? 

The Solarflow Energy Service Contract is the document that regulates the services delivered to the homeowner and also the payment terms and such other commitments that the homeowner makes.   The terms of the Service Contract are fairly simple:

• The lease starts with the signing of the Service Contract and the payment of the deposit.
• The lease is designed to have a 15 year duration, at the end of which the homeowner receives the deposit back with interest. 
• If the homeowner for whatever reason wants to end the lease before 15 years, the penalty is that Solarflow Energy keeps the deposit. 
• After 15 years, the homeowner will have an option to buy the solar system at a "fair market value" per IRS regulations.
• After the buyout option the homeowner will benefit from the solar panels for at least another 10 years per the manufacturer's warranty.  The maintenance, however, will no longer be performed by Solarflow Energy.

What is the estimated monthly cost for solar energy compared to conventional electricity from Xcel Energy? 

The estimated monthly cost for solar electricity will initially be higher than conventional energy from Xcel Energy.  It is important to know, however, that the social and environmental externalities associated with electricity generation are rarely contained in the market price. These include health costs to treat pollution related sicknesses and costs associated with global warming. A study¹ done by the University of California-Berkeley concluded that the cost of externalities associated with conventional coal may be as much as 53.5 cents/kWh, while the external cost of using solar is 1 cent/kWh or less. Conventional practices are also heavily subsidized by the U.S. government, widening the difference between the true cost and the market price. The Solarflow Energy long-term goal is to drive down the costs of solar leasing to a level which is competitive with conventional sources. The more customers that choose solar, the cheaper it will become.  

How long will it take to install the solar panels in my home? 

Actual installation of the solar system in your home will take approximately two to three days.  Our intent is to develop ‘Best Practices’ so that we can install more efficiently and make solar more affordable overall.   

Please note that the entire process from the time that a homeowner signs a Service Contract until the solar system is operational may take as much as 6-8 weeks.  This is because there are additional steps which are not controlled by Solarflow Energy:

• Obtaining & paying for permits and approvals
• Commissioning and approvals by city/state inspectors and Xcel Energy. 

What exactly will be done to my home and roof as part of the installation of the solar panels?

• The Solarflow Energy installation first requires securing solar panels to the structure of the roof. This is a straight forward process done with attention to structural soundness and water tightness of the roof (no leaks!).  Our licensed building contractor will recommend and monitor all decisions with regard to your roof.
• In addition, Solarflow Energy will run conduit on the exterior (backside, ideally) of your home to the location where Xcel Energy brings electricity to your home.  Installing conduit on the exterior is part of the Solarflow Energy strategy to lower solar installation costs. 
• Lastly, addressing the homeowner’s aesthetic concerns is also important.  Our work plan includes a discussion and joint decision-making around the exact placement of the conduit, plus an optional use of techniques to ‘blend’ into the architectural appearance of your home.    Given that aesthetic concerns are very personal, Solarflow Energy would quote and deliver such optional services on a Time and Materials (T&M) basis if needed. 

What differences will I notice inside my home and how I use electricity? 

There will be no differences in the electricity service and use inside your home. Every electrical appliance and light in your house will continue to operate just the same.   

In terms of ‘seeing’ the solar system work, you may enjoy watching the electricity meter run backwards during sunny days!  The other option to visualize solar electricity production will be on the Solarflow Energy website, where we post real-time data of the solar production in your home: Click here for real-time solar data.  

Can a homeowner easily convert back to regular electricity if she chooses to? 

Yes, you can do this by simply terminating the Service Contract. Once a Service Contract has been terminated, Solarflow Energy will proceed to remove the solar panels, inverters, conduit, and service panel only.  The removal of the remaining auxiliary hardware (brackets on the roof, conduit, etc) will require discussion and agreement with the home owner.  Given that there are likely to be different options and related costs, the discussion could potentially yield an optional quote for T&M work to address the needs of each home if needed.   

What happens if I sell my house and move? 

• Terminate the Service Contract (as explained in the previous question) and have the solar system removed.
• If you believe that the sale of your home will be enhanced by the solar panels, you can advertise and sell the house with the solar panels and transfer the contract to the new owner (in actuality, a new contract will be drafted with the new owner’s name).

Note: If you are interested in moving your system to your new house, please remember that your solar system is likely not the right size for your new home, and a new site assessment would be required.  If the new home happens to be equivalent in solar and electric terms and you prefer to ‘move’ your solar system, then you can pay a moving fee and keep your Service Contract.

What happens if I need to re-roof my house during the lease? 

Is there any provision for upgrading the equipment as new technologies are available? 

Can renters participate in the program? 

Not directly, since the person signing the solar lease and the owner of the house need to be the same person.  However, if you find that your landlord is interested in solar leasing, you may guide him/her to our program.    Your landlord could potentially be interested in differentiating his/her rental units to create renter loyalty. 

How will Solarflow Energy determine if the Pilot Project is a success?  Solarflow Energy will consider the Solarflow Energy Pilot Project a success if we accomplish the following:

• Solarflow Energy installs a total of 280 KW of solar panels in homes and small businesses across the Twin Cities (this will require approximately 30-40 installations, depending on the number of solar panels chosen by each customer) in a fifteen month period.
• Solarflow Energy increases the awareness of solar electricity throughout our Twin Cities community, as a viable alternative to non-renewable electricity.
• Solarflow Energy brings hope to customers that they can be a part of the solution to climate change.
• Solarflow Energy obtains for the first time in the United States a financial model for leased residential solar electricity, thus enabling the massive deployment of solar electricity beyond the Twin Cities.

What are the environmental benefits of solar electricity? 

A typical household in Minneapolis uses around 7,200 kilowatt hours per year, which is equal to 12,240 pounds of coal burned to generate that electricity and 8,000 pounds of CO2 emissions resulting from burning the coal. With a total conversion to solar, homeowners will no longer cause release of CO2 into the atmosphere from their electricity usage.  

What were the results of Solarflow Energy's customer survey?
In order to determine the viability of solar leasing in the Twin Cities, Solarflow Energy conducted a customer survey from February 2008 to June 2008.  This survey focused on what Twin Cities' residents would be willing to pay for a solar lease in reference to their current electric bill. 
These results are based on 218 surveys completed:

• The average electricity bill was $80 a month
• 94% of respondents understand that conventional electricity has a negative environmental impact 
• 95% of respondents are interested in solar PV for their home
• Based on the benefits of a monthly fee program, the average respondent is willing to pay 1.49 times their current electric bill
• If a commitment to leasing solar today would result in a decreasing lease rate over five years, respondents would be willing to pay 1.65 times their current electric bill today

 ^1. Kammen, Daniel M. and Sergio Pacca. "ASSESSING THE COSTS OF ELECTRICITY". Annual Review of Environment and Resources. November 2004. Volume 29: 301-344.