Distributed Generation: Understanding the Basics
What is Distributed Generation (DG)?
Distributed Generation (DG) refers to a system that generates electricity on-site, like solar panels installed on rooftops or ground mounts. This system directly powers the site, positioned "behind" the customer's electrical meter. It offers numerous benefits, including lower energy costs and environmental advantages.
Types and Scale of DG Systems
DG systems vary in size, catering to different energy needs, from small residential arrays to large industrial setups. They are designed to match the electric load of homes, businesses, or large industrial sites.
Goals & Considerations for DG System Installation
Evaluating Your Energy Needs and Location
Key considerations include understanding your energy bill, the duration you plan to stay at the location, and deciding between rooftop or ground-mounted systems. Proper sizing of the system is crucial to ensure it meets your typical electric usage and maximizes savings.
Finding a Suitable Vendor
Criteria for Choosing a Vendor
Illinois Shines vets solar vendors rigorously, requiring them to provide critical project and cost information. It's essential to speak with multiple vendors, obtain various bids, and understand your rights as a customer. Knowing your options, especially concerning Equity Eligible Contractors, is vital.
Customer References and Knowing Your Rights
Obtaining customer references and being aware of your rights are crucial steps in selecting a vendor. Illinois Shines ensures consumer protection and requires vendors to adhere to specific program rules.
Evaluating Solar Bids
Understanding the Disclosure Form
Every vendor must present a Disclosure Form, detailing contract costs, incentives, project efficiency, and other vital information. This standardized format aids in comparing different vendors and financing options.
Key Elements in a Bid
Considerations include overall costs, net savings, and the impact of Illinois Shines incentives on the purchase or lease price. It's important to compare these elements across different bids.
Key Questions to Ask Vendors
Essential Inquiries for a Potential Vendor
Questions should cover topics like REC incentives, experience, products used, budget, contract terms, permitting, installation, energy storage, system performance, support, maintenance, building transfer, and contract assignment.
Financing Options for DG Systems
Different Financial Models
There are several ways to finance DG systems, each with its pros and cons. The primary structures include System Purchase, Lease, and Power Purchase Agreement (PPA).
System Purchase
In this model, the customer owns the system, either through upfront payment or a loan, and is responsible for maintenance and insurance.
Lease
Similar to leasing a car, the customer makes monthly payments for using the solar system, with the vendor retaining ownership.
Power Purchase Agreement (PPA)
Under a PPA, customers pay for the electricity generated by the system at a predetermined rate, without owning the system.
Conclusion
Making an Informed Decision
Choosing a DG system involves considering various factors, including energy needs, vendor selection, financial implications, and understanding the specifics of your contract. Illinois Shines provides a structured framework to guide consumers through this process, ensuring informed decisions and customer protection.
Frequently Asked Questions - Distributed Generation and Illinois Shines
What are the main benefits of installing a DG system?
DG systems offer reduced energy costs and environmental benefits. They can be tailored to meet the specific energy needs of a home or business.
How does Illinois Shines ensure consumer protection in solar panel installation?
Illinois Shines requires vendors to adhere to strict program rules, provides a standardized Disclosure Form for bid comparison, and supports consumers in case of vendor violations.
What should I consider when choosing a financing option for my DG system?
Consider the ownership structure, maintenance responsibilities, long-term costs, and how the financing option aligns with your energy needs and financial situation. Distributed Generation and Illinois Shines
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