Use a qualified installer
NorthWestern Energy recommends obtaining bids from multiple qualified installers and verifying the installer you select is using a licensed electrician to complete all electrical work.
Considering adding solar panels to your home? Here is some important information.
Adding solar to your home is a big financial decision. Make sure you do your homework before you enter into a contract with a solar installer. Recently, we’ve seen a rise in aggressive and confusing marketing tactics. Most solar providers are honest and fair. However, there are some red flags to watch out for, and if a claim sounds too good to be true, it probably is.
Watch Out for False Claims
If a solar installer makes these false claims, we recommend finding someone else to do business with.
False Claim:
You can get free solar energy at no cost.
The Truth:
Solar panels are rarely free. Offers claiming to provide free solar panels or other services deserve a close look at the fine print. The federal government does not have any programs that install solar panels for free. However, there are legitimate programs, including loans, that lower the up-front costs.
False Claim:
NorthWestern Energy will pay customers to install solar on their home.
The Truth:
NorthWestern Energy does not offer incentives for solar installations for residential customers. This false claim is often seen on social media ads. Clicking on an ad directs the customer to an online qualification survey. This is a marketing tactic attempting to gather customers’ information.
False Claim:
You will never pay an electricity bill again after a solar system is installed.
The Truth:
NorthWestern Energy customers who install home solar are still charged a monthly service fee. Net metering allows any energy not used by the customer to be exported back to the electric grid. This unused energy is tracked and made available as a credit to the customer on future bills until their selected settle-up month. At the customer’s annual settle-up month, Montana law mandates that any excess energy credit resets to zero. The amount of money you can save with solar depends upon how much electricity you consume and the size of your solar energy system.
How do I know if solar makes sense for me?
Before installing solar panels, a good first step is to make your home as energy efficient as possible. Reducing your energy use can reduce the size of solar system you need, which could save you thousands of dollars. There are three steps for determining if solar energy makes financial sense:
Step 1: Determine how much electricity you use.
Review your past electrical usage and determine how much electricity you use on average in a year. NorthWestern Energy customers can access two years of electrical usage data by registering for a My Energy Account at NorthWesternEnergy.com. You can then decide how much electricity you want to offset through a solar system. Most consumers try to offset between 25-75% of their annual electrical use.
For example, if you use an average of 10,000 kilowatt hours (kWh) per year, and you want to offset 50% of that usage, you will need a photovoltaic (PV) system that produces 5,000 kWh per year.
Step 2: Analyze the available space for the solar energy system.
You’ll need to determine the correct system size based on the average solar production for your area. In Montana, a standard fixed-mount PV system produces approximately 1,300 kWh of electricity per year for every one kilowatt of installed solar.
For example, in step 1, we determined we want to produce 5,000 kWh per year. Using the one kilowatt expected annual output of 1,300 kWh, the required system size is determined by taking the desired output (5,000 kWh) and dividing it by 1,300 kWh. In this case, that is 3.846, which means the solar array would need to be about 3.8 kilowatts. (5,000/1,300=3.846)
Next, you’ll need to determine if you have enough roof space for a 3.8-kilowatt system and whether any trees or other objects shade any part of your roof.
Step 3: Calculate the cost of the system.
Determine the total cost of the system. A reputable installer will be able to provide you a complete, detailed bid outlining all costs. You’ll also want to research federal PV tax credits. Next, calculate how much you will save on electricity with your solar panels.
For example, if your electric bill is about $100 a month, and you expect to offset 50% of your electricity use with solar, you will save about $50 a month, or $600 a year. If your system costs $10,000 (after tax credits), the payback time on your system will be 16.7 years, not including interest or additional costs associated with the PV system. (10,000/600=16.667).