There are two main ways to reduce energy bills in buildings and they can be combined to achieve greater savings: consuming less energy or generating electricity on site to offset consumption. Solar panels are the most popular option for on-site generation as they can fit onto virtually any building. If you have a large enough roof or land area that is not covered by shadows, installing a solar photovoltaic system is a viable option.
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Photovoltaic modules are the visible part of a solar energy system, but they must be combined with other components to obtain a suitable power supply for your building. Solar panels generate voltage and current when exposed to sunlight, but they are direct current (DC) sources, just like batteries. To use electricity from photovoltaic modules in homes and businesses, their output must be converted into alternating current (AC) with an inverter.
Main components of a solar photovoltaic system
Photovoltaic modules are the basic building blocks of a solar energy system , and they must be connected together and firmly fixed to the roof or ground. Wiring is carried out with MC4 connectors and photovoltaic cable, while structural fixing can be carried out with different types of rack systems. Depending on the type of roof, the solar rack system can be secured with clamps or penetrating brackets, or held in place with ballast brackets.
The solar panels are then connected in series circuits, which are then connected to an inverter. Photovoltaic modules are grouped depending on their orientation and power output profile; Groups of modules connected together operate more efficiently when their power output behaves similarly throughout the day.
String circuits are connected to solar inverters , and the maximum number of solar panels on each circuit is determined by the inverter's capacity. Some solar inverters use power optimizers, which are devices installed on each solar panel to increase productivity. Alternatively, you can install a microinverter on each solar panel and connect them into a parallel AC circuit, just like your household appliances.
Regardless of your system configuration, the solar inverter performs two important functions:
- Converting the DC power output of your solar panels into an AC power output suitable for electrical devices.
- Synchronize the AC voltage produced by the solar panel with the AC voltage supplied by the local power company.
When you have a grid-connected solar power system, your building can use electricity from the photovoltaic panel and the grid simultaneously, without the need for manual switching. You can also export surplus solar energy to the grid in exchange for a credit on your energy bill, whenever generation exceeds your building's consumption.
How a solar photovoltaic system reduces your energy bill
There are two main ways solar panels reduce your monthly energy bills:
- They generate energy for your electrical appliances, and this value is subtracted from your monthly consumption.
- If permitted by local regulations, you can also sell solar energy to your local electric company and get a credit on your energy bill in return.
This second option is great when you can't consume all the electricity produced by your solar panels. For example, this happens on weekends if you have a business that only operates Monday through Friday.
In the case of New York City, solar panels can also help avoid emission penalties under Local Law 97 of 2019 . Starting in 2024, this law imposes a fine of $268 for every metric ton of CO2 equivalent above your building's annual limit. LL97/2019 assigned a carbon footprint of 0.000288962 tCO2-eq when using grid electricity, but this is reduced to zero when using on-site solar energy. This means that a commercial PV array producing 300,000 kWh/year would reduce building emissions by 86.7 tCO2-eq per year, saving over $23,200 in emissions penalties!
When combined with heat pump systems , solar panels can also help you save on fossil fuels like natural gas or propane. Because heat pumps run 100% on electricity, they can use the output of an on-site solar panel. Heat pumps can be used for space heating and hot water, eliminating the need for combustion-based heating systems.
