earning money from solar energy

System · April 2008

Hello one and all,

I currently live in houston texas and am looking into an opportunity to invest approximately 100k into a very small array for the sole purpose of collecting energy and feeding it back into the grid here. As this is more of a venture capital effort I am not really quite sure just how much revenue this would pose nor the requirements of doing said project. Everyone in here seems to be extremly knowledgeable and I would appreciate any and all feedback...

thanks

BB. · April 2008

Re: earning money from solar energy

This is a very good place to research the laws and available "incentives" for any location in the US (listed by state).

Next, if you are looking into solar voltaic (solar electric panels), this site does a good job of estimating the yearly output of a solar array.

Right now, for larger scale systems, wind turbines are getting the majority of the investments today (probably for tax and legal reasons).

Larger solar electric systems typically use a solar thermal collector, boiler, and steam turbines (or equivalent technologies) to generate power from larger sites.

For your area, a "retail" priced solar PV system would cost about $8-9 per watt to install, and just a flat rate of return (Cost of installation / #kWhrs per year * 25 year life) gives you a basic cost of power of ~$0.25 per kWhr...

Of course, you can probably cut the installation price by up to 1/2 plus local and federal rebates and tax breaks. Then you need to find somebody who will purchase your power.

Many of these issues are extremely local--and contacting somebody already doing it, or somebody that wants to (i.e., electrical utility, local government agency, etc.) would be a good place to start.

While it is possible that you will make a very good rate of return from your $100k investment--I would treat it as a gamble and only invest the amount that you feel you could afford to lose.

This is not a "risk free" investment by any means.

-Bill

crewzer · April 2008

Re: earning money from solar energy

Kitty,

I highly recommend that you get your hands on Denis Du Bois' article “Affordable Solar”, in the Oct/Nov 2007 issue (#121) of Home Power magazine.

HTH,
Jim / crewzer

Roderick · April 2008

Re: earning money from solar energy

I guess I would ask whether your goal is to get a good return on your investment, or be involved with solar energy.

Other than research and PR installations, I'm unaware of facilities in this country that use photovoltaics and try to make money selling the electricity. That probably means that the time is not right.

If you want to be involved with solar energy, consider putting up solar hot water or solar electric on your own house. If nothing else, that will give a good feel for the technology and what's involved. If you have expensive electricity, you might even make a little money on the deal over time, but it's not going to make you a millionaire.

If you want to invest in the photovoltaic industry, consider buying stocks in some solar companies, either here, or abroad (American Depositary Shares). Just do your homework before you buy. Solar stocks have fluctuated wildly over the past few years. Look at the charts of FSLR, LDK, SPWR, and you'll see what I mean.

rickeolis · April 2008

Re: earning money from solar energy

Here is an electric provider out of Arizona using PV:
http://www.greenwatts.com/pages/SolarOutput.asp

-Rick-

BB. · April 2008

Re: earning money from solar energy

According to their 2007 two page glossy report, working backwards, they value the "green power" program's return at $0.07 per kWhr... Pretty difficult to achieve with solar pv system (without massive subsidies/write-offs).

From this article about Solar Power Generation by TEP, that large solar PV array (I am pretty sure they are talking about the Springerville array):

Tucson Electric Power generates currently at 9.9 cents/kWh, albeit their system is adjacent to their existing coal-burning Springerville power plant, obviating the need for the usual infrastructural costs (transmission, land, etc.). Their site might be a ideal site for additional large-scale centralized installations.

If one estimates that infrastructure cost is about 50% of a customer's electric bill--that would put "real" costs at close to $0.20 per kWhr at the customer's door.

Arizona's electric rate delivered is probably closer to $0.10 per kWhr (+/-)...

-Bill

Telco · April 2008

Re: earning money from solar energy

If you really want to make money in solar, invest in a company that either makes or sells solar gear. In the 1840s the gold prospectors were living hand to mouth digging thousands out of the ground per day. It was the shopkeeps who were making all the money, charging a pound of gold for a pound of flour then claiming transportation costs to bring food west were killing them. Doing earns you little, but supplying those who do earns you much.

System2 · April 2008

Re: earning money from solar energy

kitty.. I am not sure how Texas does it, but in Florida you won't get back a check for the extra energy sold back to the grid. You should check your local utility to see what they offer in terms on net metering.

GreenerPower · April 2008

Re: earning money from solar energy

In Houston, SouthWest PV is a wellknown solar installer (i.e. the PoCo knows them and they have gone through the paperworks process). Check with them for the rules/regulation in Houston. For investment, I don't think PVs in Houston would be a good choice unless you want to support (i.e. spending money) to go green. If you could, Austin would be a better choice. If you are within AustinPower service areas, you'll get 4.5$/watt rebate, none in Houston, just 30% federal tax deduct. I think currently Houston would pay at retail rate if your net is selling. There are proposals from PoCo to change that to bulk-rate (i.e. a few cents/KWhr). Depending on the amount selling back, you could be considered as a "small PoCo" and a whole new set of rules apply. Southwest PV probably knows more since they have installed in both residential and business.
GP

earning money from solar energy

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