At South Central Power, we are your source for energy and information. Since interest in solar power generation is growing, we put together a series of frequently asked questions to help answer questions you might have. Contact us for more information about solar and assistance in making decisions about whether solar is a good option for you.
Most Common Solar FAQs
- Effective March 1, 2022, South Central Power transitioned from net metering to net billing.
- This means that Buckeye Power will be purchasing excess generation at a rate established annually by Buckeye Power that reflects the true cost of the energy to the Cooperative's membership.
- Net billing settles each hour, so if the amount your home needs is less than the amount you generate, you will have excess generation for that single hour.
- Residential solar arrays cannot exceed 25 kW-AC measured at the solar inverter.
- Non-residential solar arrays can go up to 100 kW-AC at the solar inverter.
- Any array size larger than 100 kW-AC will need to contact our Key Accounts department at keyaccounts@southcentralpower.com.
- Members should contact Energy Advisors at 740-689-6125 or energyadvisors@southcentralpower.com to start the process.
- A member inquiry to South Central Power regarding solar interconnection will trigger the process. Member will provide limited information to South Central Power for the process, such as total inverter size and installer contact info. South Central Power will prepare an application and related documents for the member.
- South Central Power will communicate and meet with member directly. No interaction between South Central Power and installers will be needed.
- Member agrees with load side interconnection beyond the first means of disconnect.
- Member will provide South Central Power’s instructions to their installer for interconnection fee payment, if applicable.
- Installation cannot begin until documents are fully executed and interconnection fee is received. If removal of a meter is necessary during the interconnection installation, member must contact South Central Power at 800-282-5064 to schedule a temporary disconnect for the work to be performed safely.
- The generating facility should not be in operation prior to the bi-directional meter installation.
- After solar installation, member will self-certify that all national, state, local and other applicable electric codes were followed. Installers should provide certification documentation to the member.
- South Central Power will schedule bi-directional meter installation after interconnection fee, self-certification, and previous documents are received and fully executed. Permission to Operate (PTO) is automatically granted to the member after the bi-directional meter is installed.
- South Central Power has the right to perform an audit of the solar installation and related documents at any time. Installers should provide documentation to member for the member’s records.
- Residential (<25 kW-AC) and non-residential (<100 kW-AC) accounts have an identical process and documents, except applicable rate schedules are used.
- Power Purchase Agreements. Ohio Revised Code prohibits Power Purchase Agreements (PPA) in South Central Power territory.
- Leases. Leased solar arrays are allowed in South Central Power territory as a financing option, not as a PPA.
- Renewable Energy Credits. Members can sell their renewable resources in the market known as a Renewable Energy Certificates or Credits (REC) or Solar Renewable Energy Credits (SREC).
- No, you will not receive a letter. The member has permission to operate their solar array once the bi-directional meter is installed. It is also stated in the Interconnection Agreement signed by the Authorized Party that they have permission to operate.
- If a member produces excess electricity that their home doesn’t need, it goes back to the grid where Buckeye Power, our generation provider, purchases that electricity and gives a credit to the member on their next electric bill. The excess generation rates, as determined by Buckeye Power, are volatile over the years as noted in this graph:
Additional FAQs
Solar energy systems work when sunlight hits a solar photovoltaic module (solar panel or PV panel) and causes electric current to flow. The current produced from the PV panels is controlled and regulated by an inverter, which converts direct current (DC) to alternating current (AC), needed for use by household appliances. The electrical panel is where the power gets distributed throughout your house; any excess electricity may be sent from the panel back to South Central Power’s electrical grid.
Battery-backed or grid-independent systems use on-site energy storage to store excess generation produced during the day for use at night or when the sun is not producing enough power. Choosing this option will add significant cost and maintenance to your system.
Most people opt for grid-connected systems for:
- Reduced cost
- Maintenance
- High reliability
With this type of system, your cooperative continues to provide energy to you when you need it 24-7. Your PV system will produce energy, and even excess generation, on sunny days. Your system will not collect sunlight at night and on cloudy days. That means, you will continue to draw electricity from your cooperative during these times.
Most grid-connected PV systems shut down to prevent backfeeding electricity into de-energized power lines that may have fallen or that line crew members may be working on. It’s important to have this shut-down feature to prevent injuries—and even death — to those working on the line.
The price of PV components varies depending on:
- The size of the system (generating capacity)
- Type and quality of the components purchased
- Complexity of the system selected
The good news for consumers is that the cost of PV has declined dramatically, while the technology has improved, equally dramatically. Installation costs depend on the size and complexity of the system, but also on the home layout and construction. For example, a simple, south-facing roof allows for an easier install than a roof with hips and valleys. In addition, some homes require structural or wiring upgrades.
Average costs:
- An average 4 kW system may cost between $10,000 and $20,000, before credits and incentives
- This is based on a typical installed cost of $2.50 to $5 per watt of distributed generation capacity
- To determine your costs, look for online calculators to help you estimate your pricing, and also get bids from reputable installers
Yes. There may be a federal tax credit of 30%. In addition, there may be:
- State or local income tax credits
- Property tax exemptions
- Rebate programs from government agencies
These vary by national, state, city and utility, and may also depend on whether the system is purchased or leased.
Find information about Ohio’s programs on the DSIRE website. Be sure to consult with your financial and tax advisor. Be sure to research the Department of Energy, IRS, or DSIRE websites for the latest status of incentives or credits.
The payback period can range from fewer than 10 years to more than 20 years, depending on:
- The system cost
- Available rebates and incentives
- The amount of electricity produced
- The retail price of electricity you purchase from your cooperative
Certified PV products and systems generally are reliable:
- They have a life expectancy of about 20 to 30 years
- Manufacturers test PV panels for hail impact, high wind, and freeze-thaw cycles to represent real-life situations
- Most manufacturers offer 20- to 25-year warranties for panels; extended warranties may be available at an extra cost
Little maintenance is required; occasionally it may be necessary to rinse modules off with water to remove dust and grime. Other components, like inverters, may have a shorter life. PV panels may outlast the roof they are attached to. Make sure your roof is in good shape or budget for replacement during the life of the system.
To begin, you can look at factors such as:
- Which direction your home faces
- The condition of your roof
- Obstructions such as trees and other buildings that may block the sun during the peak generation period of 9 a.m. to 3 p.m.
Solar contractors can provide a more detailed analysis on what to expect, and your cooperative can offer advice, too.
If your house is not ideal for solar, you rent your home, or you just aren’t ready to make a big investment, there are other options. Talk to us about our community solar program. Find out more on our Community Solar page.