JFSI - Jewish Facilities Solar Initiative

answers to some frequently asked questions (FAQ):

Why solar?
How does solar energy work?
Why JFSI?
Why now?
Who will own the solar energy system? How will it work?
What is a Power Purchase Covenant (PPC)?
Will the solar energy system still be connected to the grid?
Will the system produce more solar energy than my facility will use?
What is net metering? Does it mean I can sell electricity to my utility?
Will solar reduce my demand charges?
What determines the output of a solar energy system?
What parts are included in the system?
What impact will the system have on my roof, if any?
Will the system be visible from the street?
How will I know how much energy the system is producing?
What are the maintenance concerns of a solar system? How long will the solar system last?
Where does solar incentive money come from?
What is the typical payback for a solar energy system?
What happens if there is a utility power outage?
How much space will the solar energy system take up on my facilities roof?
How will the weather affect the solar energy system?
Who performs your installations?
What's the next step?

WHY SOLAR?

It's a clean and dependable renewable energy source. Solar produces electricity from the power of the sun and the sun rises every day (baruch hashem). Thus, there will always be a regular supply of “fuel" for the system that produces no greenhouse gasses or other pollutants in the electricity generation process.

It’s reliable. There are no moving parts to wear out, no compressors, tanks or fuel lines to maintain. Solar modules typically carry a 25 year warranty, and will likely still be producing energy long after the warranty period. Much of the PV made 40 years ago is still operational.

It produces power at peak periods. The midday hours, when the sun is shining most intensely are most often when the electricity grid is under the greatest strain. Utility companies must pay higher rates to acquire energy to supplement their production during these peak hours, leading to higher midday energy rates. Fortunately, these peak hours are also when the solar system produces the most energy. This can get complex though – for more information, read about “time of use” metering

How does solar energy work?

A solar array uses the sun's light as fuel, with the photons from the sun being converted into electricity when they hit the PV cell. The material in the solar cell causes the photon to kick off an electron and the freed electrons are then collected and channeled out of the solar module to become DC (direct current) electrical power. This DC power is converted into "AC" power, which is the type of power in the grid that standard appliances and electrical devises use, in a devise called an inverter. Read more if you are interested in the photovoltaic effect, modern solar panels, inverters, or just more general information about the science and technology behind solar energy.

WHY JFSI?

All we do is help Jewish facilities “go solar”. We try to be transparent with all our operations and work closely with you so you can have confidence that we have your best interests in mind.

As a non-profit organization, you cannot take advantage of one of the biggest financial incentives for solar installations, the federal solar investment tax credit, which provides a 30% tax credit on the total eligible cost of an investment in a solar energy system. Through our investment vehicle, JFSI LLC, we will be able to utilize the federal solar investment tax credit and your facility will benefit from lower energy prices that would have been lost if you bought the system yourself.

Its our humble opinion that your organization has better things to do with its capital and operational resources than to invest in, own or maintain a solar PV system. However, if you decide you want to own a solar system from the start – JFSI will gladly advise your facility in this process. And/or, if you want to raise some of the capital yourself and potentially lower your monthly energy costs, JFSI can help facilitate the inclusion of this capital into the JFSI owned system.

WHY NOW?

The federal solar investment tax credit is due to expire at the end of 2008. While there is a chance the tax credit could be extended, at this point no one really knows if or when that would happen. So, why risk it? Without the tax credit, the only way you will be able to finance a solar energy system for your facility is by raising the capital yourself. Who knows how long that will take? Plus, in some states, like California, state rebates for solar energy systems are dropping rapidly, making it harder to justify investing in a solar system.

Who will own the solar energy system? How will it work?

JFSI will lease roof space from your facility for $18 a year. Your facility will sign a Power Purchase Covenant (PPC) with JFSI outlining the terms and conditions under which your facility will buy the power generated by the solar energy system JFSI installs at your facility. Once the system is up and generating electricity for your facility, you will pay JFSI a monthly fee based on the amount of energy the system generates. JFSI will install, own, operate and maintain the system for a minimum of five years. At some point after the fifth year your facility may (depending on the terms negotiated in the PPC) have the opportunity to purchase the system from JFSI at a significant discount to its initial cost. Or, you can elect to continue to pay just for the solar energy you use and let JFSI retain ownership and operations. It’s up to you.

We won't be able to tell you exactly when your facility will have an opportunity to purchase the system or how much it will cost until we model your facilities physical characteristics and energy demands, but you will definitely have this information before you have to make a decision on whether or not to work with us.

What is a Power Purchase Covenant (PPC)?

A PPC is a formal agreement between your facility and the JFSI Fund (our solar “Fund”) that stipulates the terms and conditions under which we agree to generate solar energy and your facility agrees to purchase that energy at a predetermined "per-kWh" rate and under predetermined terms and conditions.

Will the solar energy still be connected to the grid?

Yes. The solar energy system we install on your roof will reduce the amount of energy you draw from the electrical grid, but not replace it completely. The terms of the interconnection between the JFSI system and the grid are controlled by something called "net metering" which allows the solar system to put energy into the grid if it is not being consumed by the host-facility, thus creating an energy credit that the facility draws against when the system is not working (during the night or on a cloudy day). For safety, an interconnected solar system will stop putting energy into the grid if the grid goes down, unless your system is designed to be a "back-up" system that includes energy storage at your facility. Though this is technically an option for your solar system, it makes the system much more complex and expensive and is,,unfortunately, NOT included in the JFSI model.

Will the system produce more solar energy than my facility will use?

The system we install on your facilities roof may produce more energy than your facility uses on any given day, but solar electric systems are typically designed to reduce, not completely replace, the electricity you draw from the grid. Your facility's system will likely cover no more than 90% of your current electrical use. Furthermore, depending on the facilities specific characteristics, size of your system, energy demand profile, and utility rates and structure, it may be lower. As a part of JFSI your facility will undergo an energy audit. That audit will likely recommend many ways in which your facility could reduce itÕs total energy demand by implementing simple and cost-effective energy efficiency measures; allowing your facility to save money on your energy bills right away.

What is net metering? Does it mean I can sell electricity to my utility?

JFSI systems, as with most photovoltaic systems installed these days, are required to be tied to the grid to participate in rebate programs. However, being tied to the grid also allows your solar systems to participate in "Net-Metering." A fancy way of saying the meter will show the "net" amount of energy that flows in, or out, of your facility. If more flows in than out, (e.g. you use lots of lights at night and of course the system isn't making any power) you will have to pay the utility for the extra electricity you use. If the system makes more electricity than the facility uses, then you are feeding the grid and , you build a credit with the utility to take energy from the grid later at no charge. With net metering, your meter will actually spin backwards when the energy generated from your solar energy system is greater than the amount of energy your facility is consuming. When you return to using more than the system produces (at night) your meter will spin forward again, and you will begin using up the credit generated when the sun was shining and you were producing more than you were using. For instance, if, during daylight hours, your system produces 18 kWh more than you actually consumed, then you will enter the evening with a 18 kWh credit that can be used after the sun goes down. In most instances, this credit is "zeroed-out" at the end of the year and any excess the system has produced is "given" to the utility. Grrrrr.

Will solar reduce my demand charges?

Solar cannot be relied upon to regularly reduce your demand charges. Since demand charges are calculated at your single highest usage point during the entire month for each rate period, there is no guarantee that this point of maximum consumption will be covered by output from the solar system. Your high demand peak could come during the time that the system is not producing much output, such as in the early evening or during a rainstorm. Therefore, we typically do not model a reduction in demand charges when we calculate savings from solar. The real-world impact of demand reduction can get complex and there is a chance that there are additional financial benefits that may result from peak demand reduction.

What determines the output of a solar energy system?

The output of a solar energy system is primarily determined by the efficiency of the modules as well as the size, orientation and location of the system. Final output is then influenced by additional factors such as:

The weather: While the modules will still produce even when the sky is cloudy or foggy, the panels require direct sunlight to produce any significant level of power. Clouds will cut the level of output significantly.

Shading: If the panels are shaded at anytime during the day by trees or buildings, their output will be reduced. As part of the design of the system we install at your facility, we will use a Solar Pathfinder to determine the amount of solar radiation and shade at the array site. The modeled output of the system will be adjusted downward to compensate for shade issues, so that the estimated production will already include a de-rating for shade.

Season: The elevation of the path of the sun in the sky varies based upon the season; in summer it is at its highest point in the sky, and in winter it is at its lowest. This affects output in two ways: one, the higher the sun is in the sky, the more hours of daylight there will be. Second, the more direct the angle of sunlight on the modules, the more they will produce. If the panels are tilted, they will be set at an angle roughly equivalent to your latitude that maximizes output (for example, 34 degrees in the Los Angeles area) or a lesser angle to make the modules “flatter” which can be more aesthetically pleasing.

Temperature of the Panels: As the temperature of the module heats up, it becomes less efficient in converting the sun’s rays into energy. The panels require airflow on both top and bottom in order to stay cooled to peak efficiency. Even if the design calls for flat-mount, our installer will leave enough of a gap between your roof and the bottom of the panels to provide airflow.

Cleanliness of the Panels: The panels should be washed from time to time to reduce buildup of dust, sand, pollution, and to generally clean them off. A good rain will do the trick as well – but depending on your local weather – this may not be the best thing to rely on.

What parts are included in the system?

JFSI solar systems are “turn-key” for your facility. You just keep turning lights on, and off (remember to conserve!) like you did before. Here is a breakdown of what comes in a typical solar system:

Modules: The primary component is an array of solar electric modules, which capture the sun’s rays and convert it to direct current (DC) electricity.

Inverters: The system we install on your facility will include at least a few inverters to convert direct current (DC) to alternating current (AC) power. Smaller inverters can be wall-mounted, and larger ones, above 30 kW in capacity, are typically set up on the ground like other large switch gear.

Transformers: One transformer will be required for each inverter needed. Transformers are often integrated into the inverter.

High Voltage Disconnects: Two high voltage (HV) disconnects will be included for each inverter: one for the DC side, between the panels and the inverter, and one for the AC side, between the inverter and the grid.

Racking: The modules will be mounted in rustproof, often aluminum racks to form panels of 6-18 modules each.

Tilt Kits: The system we install on your facility may include tilt kits to angle the modules towards the sun in order to increase their average output. These tilt kits will enable the installers to precisely set the degree of tilt for your panels to strike the best possible balance between output and available space.

Wiring and Balance of System Components: The modules may be run in strings into combiner boxes, which will then be wired through the DC HV disconnect box(es) into the inverter(s).

What impact will the system have on my roof, if any?

If we mount the system on your roof (which is highly likely), the systemÕs weight will be carried by the roof structure. We will make sure your roof is structurally capable of taking this load. On the up side, the system will shade the roof deck underneath it, protecting it from harmful UV and infrared rays, potentially reducing cooling bills and increasing the life of your roof. Roof mounting has had strong advances over the past several years and often now require minimum penetration of the roof. However, in the event that the roof needs to be penetrated, rest assured, JFSI only works with insured and bonded construction professionals who stand behind their work. The LAST thing we, or they, want is to cause a leak. But we canÕt know the specifics of the roof mounting system that your facility will need until we review the physical characteristics of your facility. So contact us!

Will the system be visible from the street?

This is a highly variable question that depends on the specific physical characteristics of the host-facility. For most flat-roofed buildings, it is unlikely that the system will be very visible, if at all, from the street, particularly if your facility has a parapet of more than a foot or so. Some designs can involve hanging a portion of the array over the parapet, creating a "solar shade" which will be highly visible. We believe that visible solar modules make a powerful statement about your commitment to clean energy and Tikkun Olam, but if your aesthetics or local codes call for minimal visibility that can likely be accommodated.

How will I know how much energy the system is producing?

Keeping track of system performance is easy. The inverter(s) will come with a display that indicates the current power output of the system. In addition, it is likely that the system will come with a real-time on-line tracking system that graphically shows how much energy the system is producing, and dirty grid-power you are avoiding. This can also be a way to share information about the system with your congregants, members, or students. On cloudy days you might be able to actually watch your meter change speed as clouds pass over and away from the sun.

What are the maintenance concerns of a solar system? How long will the solar system last?

There is really nothing to maintain because the system has no moving parts. Furthermore, JFSI owns the system so if anything does go wrong with it, we get it fixed (because if the system isn't making power you are not paying JFSI anything and we wouldn't be able to pay our investors). All the system should need is to be rinsed off, at least once a quarter, with a typical garden hose. Clean panels produce about 7% more annually than dirty panels.

Most solar panels come with a 25 year power output guarantee. This means that the panels will be producing at least 80% of their original power for 25 years. The inverter is the most fragile component of any solar electric system. The expected life span of inverters is about 10-15 years, and the warranty period is five to ten years. Inverter reliability and efficiency is continuing to increase - but like all electronics, its actual life depends on manufacturing quality and service stresses.

Where does solar incentive money come from?

Despite its free fuel source, and long term financial benefits, solar energy is still expensive in the short term because of the capital required to develop the system. The federal government and many state and local governments provide incentives for solar energy to make it more affordable. At the state or utility level, these funds usually come from small charges that are approved by the state legislature or public utilities commission and added to all rate-payers' bills.

What is the typical payback for a solar energy system?

There are a number of factors that drive the length of time for full payback of a commercial solar energy system. System size, financing method, federal and state incentives, the strength and abundance of the sun (called "insolation") at your location, the cost of grid-supplied energy your facility pays, the rate of utility electricity cost increases, all combine to influence the length of time for full payback of a solar energy system. After JFSI has had a chance to review the basic information about your facility and energy demands, such as your roof type and utility bills, we will generate a report for you that gives you a fairly accurate picture of what the payback period would be if you decided you wanted to raise the capital to pay to install a system on your own. We will also let you know how much time, money, and hassle you will likely save, while reducing your organizational "risk," by working with JFSI.

What happens if there’s a utility power outage?

If your system is grid connected with no battery backup, you will experience loss of power when the utility grid is down. This is intentional. When there is an electricity outage there are people working on the power lines. If your system were allowed to stay active during the outage, the people working on the power lines would run the risk of being electrocuted by the live wire. If your system were to have a backup power option built into it, then you would be able to continue to power your facility during a utility power outage. However, adding a backup power system will add complexity and extra expense. It is possible to do this, but only if your facility is determined to have, and willing to pay for, the backup system.

How much space will the solar energy system take up on my facilities roof?

A good rule of thumb is 100 sq. ft. per every kilowatt of electricity the system produces. Thus a 50kW system will require 5,000 square feet of un-shaded flat or appropriately sloped roof space.

How will the weather affect the solar energy system?

Solar energy systems are very robust and designed to withstand extreme weather conditions. Lightning, wind up to 80 miles per hour, and extreme temperatures are all things your solar system is designed to handle. However, weather conditions can reduce energy production because of reduced insolation. In fog, marine layer, or June gloom the system will still produce 25% to 30% of normal production. Similarly, a rain storm cuts production but is great for cleaning your panels. If for any reason your system were to go off line due to weather we will know about it immediately (via the monitoring system) and will work to get the system up and running ASAP. After all, you only pay JFSI for power you get from the system. If the system isn't producing energy, your buying energy from the utility and not paying JFSI, so its in our interest to keep the system running.

Who performs your installations?

JFSI will request competitive bids from reputable, third party professional solar integrators (installers) with solid track records and lots of satisfied customers. The integrators will be selected based on their quote to install a custom PV system at your facility. Your facility may have the option to be involved in the selection and design process if this is of concern.

What's the next step?

If you are interested in learning more about how a solar system could benefit your facility, please contact us!