Thinking about solar

[Lee Schierer]

With the price of power continuing to rise and the current incentives for solar panels, I'm thinking about having an array (maybe 16 panels) set up in my back yard. Our house is all electric and gas is not an option in our locale. I know that panels won't supply all our needs and our bill really isn't all that bad either. Anybody have any recent experience with solar panel installations and their ability to pay back?

[Prashun Patel]

We had a system installed in 2010 on our company building. The incentives vary by state.

In NJ, for every 1 MW of solar energy you generate, you receive a certificate (SREC). The SREC's can be sold on an exchange. The SRECs are currently trading around $650 in NJ. A typical residential installation will generate let's say, 10MW/year. So, besides the pure electricity savings, an NJ system can also bring about $5000-6000/ann.

For my company, the SREC income has been double the electricity savings.

When I calculated the payback for our company, I get between 4 and 5 years.

The US treasury also offers a 30% rebate on the price of commercial installations.

The IRS also allows you to depreciate the system much faster than typical capital purchases.

If yr state trades SREC's, then the calculated payback hinges on your personal assumption about the future price of those SREC's. I'm bullish for the next 5 years.

As for the maintenance, there really is none. A reputable installer will certify the parts for 20 years, and the labor/installation for 5 years in NJ.

If yr installing in the backyard, then leaks are a non-issue vis-a-vis a roof install (DAMHIKT!).

If you wanna know more, PM me.

[Chuck Wintle]

Don't solar panels lose efficiency over time?

[John Hemenway]

We went solar November of '07. We don't pay any electric bill. Used to be ~$2500/year. Your installer should be able to calculate payback years based on cost of your current power, rebates and current tax kickbacks. The location of the panels is important. Trees are bad. They should be cut down and turned into lumber!

We've made 21.415 MWh of power since install!

[Rich Eberly]

Slightly off topic, but solar water heating and solar air heating both might have a good expected return on investment as well.
Rich

[David Weaver]

Make sure you have your bases covered on insurance. I don't have an array, but I remember insurance being an issue when I was looking a few years ago. With as many incentives as there are, and the fact that we have net metering in PA (or something like that), it's a good time to get them. I don't remember what the sun factor is here, but I believe we get about 70% of the sun that an ideal location does, and there will be a lot of days where the array doesn't produce much, but it's a marathon and not a sprint. And, they've never been cheaper per kw.

I'd imagine the folks who install them could give you good advice on insurance and whether or not that's still an issue. Over time, it would have to become less and less of an issue as more households get them. Wouldn't want to have a nice array blasted by hail.

[Brian Elfert]

A different energy saving opportunity could be looking into geothermal heat/air conditioning in addition to or instead of solar power. The federal government will pay 30% (no limit) through 2016.

[Charles McKinley]

Hi Lee,

Check out "Home Power" magazine for more information. Mother Earth News used to have anice forum but when they "redisigned" the website they made the forums almost unsuable but some one there may be able to point you to a good solar/ alternative energy forum.

[Bill Cunningham]

We went solar November of '07. We don't pay any electric bill. Used to be ~$2500/year. Your installer should be able to calculate payback years based on cost of your current power, rebates and current tax kickbacks. The location of the panels is important. Trees are bad. They should be cut down and turned into lumber!

We've made 21.415 MWh of power since install!

What did a array like that cost to install ?

[John Hemenway]

Blll C.
Well I really like your signature. I've already had the lightning flash!

I see to remember it was about $28K with tax rebates and credits of about $7-8K. So net of $21K, or so. If electric rates remained the same I was figuring payback in 8-10 yrs. YMMV

Time to take a big breath here. I'm guessing they are less now and might be really different 'way up north'. The local tax credits/rebates play a big part in the final pain in the checkbook.

Check around for a good installer and they will be able to give you more accurate info for your area. It's necessary to do an analysis of your needs and your site. We have one good roof area that gets lots of sun and filled it with panels. Turns out that was just right to supply all the electricity we use for the year. Our kids are out of the house so there are not lights left on 24/7!

I don't know if there is a 'lifetime' on the panels. The inverter and interconnect will probably have to be replaced at about 10 yrs since that is the warranty.

[Dennis Peacock]

I got a quote from a company out of texas to get me off the grid. Price quote was $68K installed. I said....no thanks.

[Dan Friedrichs]

Be careful of trusting any random solar installation company to do the ROI calculations for you. There is a LOT of stuff that goes into it. For instance, you would not believe how much power production is lost when a large leaf lands on a PV panel (it actually effects more than just the area it shades).

I'd do the ROI calculations yourself, being very careful to account for everything.

[Lee Schierer]

A different energy saving opportunity could be looking into geothermal heat/air conditioning in addition to or instead of solar power. The federal government will pay 30% (no limit) through 2016.

I have had a geothermal heat pump for more than 24 years. We upgraded to a geothermal heating/air conditioning unit between rebates, but I have no regrets. We added A/C but kept our electric use the same over the use of fans and a dehumidifier in the summer months to try to stay cool.

[Charles Goodnight]

I put in a 3.6 KW system. It covers all my electrical needs in the summer, not so great in the winter up in northern Vermont. I am not sure about payback. I got summer salary one summer (I am a professor) sort of out of the blue, and decided to put the money into something that would pay dividends forever. Solar was the choice. I like it because it seriously cuts my electric bill, but more importantly it insulates me from future rate increases. It really has removed electrical bills from my budgetary considerations. With energy prices going up the stability that that offers is appreciated. I also put in solar space heaters on a southern wall. I built these things for less than 500 dollars, and I am sure they payed for themselves in the first season. I am convinced that solar space heating is the single most cost effective use of solar. I suspect that solar hot water is a close second to solar space heating. It is in my future, but I haven't figured out the details yet.

[Ben Hatcher]

I also put in solar space heaters on a southern wall. I built these things for less than 500 dollars, and I am sure they payed for themselves in the first season. I am convinced that solar space heating is the single most cost effective use of solar.

Could you elaborate on solar space heaters? Do you have some links or resources you could point me to? It sounds very interesting.