Converting to Solar (Is it worth it?)

System
System Posts: 2,511 admin
in General Solar Power Topics #1
I'm GREEN to GREEN
I am new to solar power and would like to convert my whole house to solar as much as is possible. Is it worth the investment? Are there still tax creditd and such? What do I need to have? I am reading this forum to inform myself but there is so much info. Can someone narrow the search to give as much info per time invested. I would appreciate any help.
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  • BB.
    BB. Super Moderators, Administrators Posts: 33,613 admin
    #2
    Re: Converting to Solar (Is it worth it?)

    Short answer is NO, it is almost never worthwhile to just convert to solar power.

    Yes, I am being a little silly with the answer, but if you have utility power, there are other places that are better (and greener) to first spend your money before installing solar panels.

    Typically, the first place to spend you money is conservation. Before I put up a 3kW grid tie solar system, I insulated my walls, put in double pane vinyl windows, operating skylights for light and ventilation, florescent lighting, new gas furnace, new appliances, beating on kids to turn off lights/close doors, energy star appliances, switch power strips on tv, digital receivers, VCRs, stereos, changed to Time of Use power metering and placed timer on freezer to use off-peak power, etc.)...

    Doing the conservation part is important. A one time expense saves power (never used) for the rest of the life of your home.

    Once you have done that, you can look into how much a solar system would cost you... I will give you an example... Your are in Baltimore Md... Let's look at a fixed mounted (typically on roof top) grid tie system (best use of solar $$$ for electricity--assume that your utility will allow grid tied systems).

    My 3 kW grid tied system costs about $30,000 to install. It has 3.5kW of solar panels and a 3kW inverter connected to my utility line (permits, OK from utility, etc.). I got about $8,000 back in rebates (CA rebates was most of the money). I generate about 4,800 kWH per year:

    $30,000 / (25 years * 4,800 kWh/year) = $0.25 per kWhr (before rebates)

    Your system (using this link to calculate power for Baltimore, MD):

    A 3.5 kW (solar panel rating) for $30,000 (guess) installed, will generate about 4,297 kWhr per year...

    $30,000 / (25 years * 4,297 kWh/year) = $0.28 per kWhr (before rebates)

    According to the website, your power bill is about $0.078 per kWhr...

    As you can see, assuming no cost of money (or a 4% interest only loan), the cheapest (and best) way to generate solar electricity will cost you almost 4x what your current utility bill. Hence the recommendation to first conserve. This will save you money. Solar PV system probably will not (at least for the present time).

    In CA, it sort of make sense for me... With rebates, my Solar GT system costs me about $0.15 per kWhr, and my current power rates (residential) start at $0.12 per kWhr... So the spread is almost zero. Add in the fact that I can now use Time of Use metering, my off-peak rate is $0.09/kWhr--so I can use cheaper rates with my system.

    And since I generate about 1/2 my power during peak rates (noon-6pm) which are $0.27 per kWhr--I am actually "making money" during this time ($0.27-$0.15=$0.08 per kWhr during summer afternoons).

    Also, in California, we have "tiered rate plans"... If I use more than 1,000 kWhrs per month, I will pay between $0.30 and $0.49 per kWhr (yes, 50 cents per kWhr in the summer peak time). So, if I get an electric car (or plug-in hybrid), my solar array, even if it can't keep up with my entire kWhr usage (today, I generate more power than I use year over year), Solar PV will help keep me out of the "peak tier" pricing--and save me lots of money.

    If you are looking to go "green", one possibility you should consider is Solar Hot Water and Hot Air for domestic hot water and home heating. The systems are typically cheaper and smaller, and you still have saved money/gone green whether you are saving electricity or natural gas / oil / coal for heating.

    The one downside to solar thermal system is they can get complex. Accounting for freezing weather, and long term maintenance (pumps, anti-freeze, plumbing leaks, etc.) vs the "plug in and forget" that comes with solar grid tied systems (wash the solar PV panels once in a while, trim trees).

    -Bill
    Near San Francisco California: 3.5kWatt Grid Tied Solar power system+small backup genset
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  • BB.
    BB. Super Moderators, Administrators Posts: 33,613 admin
    #3
    Re: Converting to Solar (Is it worth it?)

    Thank you Bad Apple... Trying to post too quickly. :blush:

    KMZ, I am not trying to stop you from installing solar energy, but to look at all of the other alternatives out there too (conservation, solar thermal, ground sourced A/C-heat pumps, etc.).

    It is really cool that I can run my entire home on a 3kW grid tied system, get a $5 / month electric bill (12 months a year) and still have a $250+ credit at the end of the year (Net Metered power in CA does not give cash at the end of the 1 year period--you either pay the extra balance or they drop any credits).

    I purposely installed solar and got a slightly larger system than I needed because 1. I did not trust CA Regulatory agencies and the price of power--remember this is just after the state went $25,000,000,000 into the red because of bad regulations; 2. because I am pretty sure that in the next couple years there will be a decent plug in or plug in hybrid car that will work for 90% of my family around town driving; and 3. In ~2006, the state rebates and power policies were very pro-solar conversion--and I did not trust that the state would keep those policies--and low and behold, they changed the entire program and have killed off a large part of the people that were getting "warmed up" to solar conversions (before the regs were probably too pro solar consumer, and now the regulations are too pro-bureaucracy and have made a very dicey economic equation quite poor for the consumer).

    In the end, whether or not you install some sort of Solar RE system--you will be much happier (in my humble opinion) if you invest your time and monies into conservation first. Then if Solar Thermal and/or Solar PV still looks interesting, the system will be much smaller because of the lower energy foot print of your home.

    -Bill
    Near San Francisco California: 3.5kWatt Grid Tied Solar power system+small backup genset
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  • icarus
    icarus Solar Expert Posts: 5,436 ✭✭✭✭
    #4
    Re: Converting to Solar (Is it worth it?)

    There are two pieces of advice I would give you at this stage,,perhaps three.

    Consider conservation your first, second, and third option BEFORE working on solar. It aint as sexy, but way cheaper and much a more efficient use of your dollars first.

    Second, spend as much time learning and reading and asking questions before you buy/build anything. Since you are grid connected now, you have the time to make the good hard choices, which leads to the final and perhaps the hardest lesson to learn: By doing the first two, you will tend to avoid the expensive "Ready, Fire, Aim" that so many people fall into.

    The wheel has already been invented, your choice now is to find out which one to use.

    Good luck,

    Icarus
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