I recently offered an optimistic, but un-researched suggestion that a wider application of wind and solar power systems for individual residences could potentially be a big part of solving our continuing "Energy Crisis" and was (justly) criticized for not bringing any facts to the discussion. I have since done a bit of reading. While my initial (self-serving) reason was to respond to a critic, once i got into it, I began to feel that I should share this info more widely. (That, and the fact that the diary (on problems associated with Carbon Neutral Energy) is Way off the front page now, and have no idea whether my critic would see my response!)
I do believe that while Photovoltaic Energy systems may not be cost effective for Large scale power generation, they may be for individuals. This diary will probably prove to be only a start.
It rapidly became obvious that there is no "one-size-fits-all" solution to the question of where residential power generation should fit into the mosaic of solving our ongoing problem in providing energy for our economies (personal and National), but as I dove into the subject, I became more and more convinced that Home Energy Generation makes more sense than the Conventional Wisdom would indicate. It is true that not every home owner can economically benefit from home energy, but I believe that many people who believe they cannot benefit are in error, particularly if one considers photovoltaic (PV) systems linked to the existing grid ("net metering").
One Southern California Home Solar owner's experience:
In October 2003 I installed to 3.5 KWh solar system in Ladera Heights California. Excess power generated during the day is fed back to Southern California Edison and drawn back at night, avoiding the need for unrealiable batteries. My usage is "netted" over the course of a year and the system covers my entire power consumption for the year. My total power bill for the year is about $20, which covers the basic charge for connection and the minimum power charge. Because I produce more power than I generate, I pay nothing for the power actually used.
...
The final installed cost of my system after rebates and credits was around $10,500. The costs, and credits are slightly different now, compensated for in part by reductions in in the technology costs. Outside California, the credits would be completely different if available at all. The availability of rebates within California may vary depending on your utility provider.
The cost of the system including installation was around $25,000 with approximately half that cost covered by the State of California. An additional $1,500 was received as an income tax credit. The payback time for such a system works out to approximately 8 years. The expected life of the system is expected to be greater than 25 years and the system is essentially maintenance free. A system that used batteries would cost more and the batteries would require maintenance; tying the system to the grid reduces the costs and eliminates most maintenance. Because of the California net metering laws the cost to tie to the grid is essentially $20 per year for the basic and minimum charge from Southern California Edison.
Of course, Most of us don't live in Sunny Southern California and the South-Western States, so we couldn't expect such great results, but anyone who Does should consider that owner's experience/results. Even those of us who do not average 6 hours of full sunshine per day may benefit from such a system. I found this site which examines the economics of Home Solar Installations in NY, NJ and CN. Their calculations estimate the Return on Investment of a home solar installation to be between 6% and 10%. The time necessary for energy production to pay for the upfront cost is between 9 and 14 years....but the systems are guaranteed to last at least 20 years. Solar Panel Manufacturers claim the Panels should last for 25 to 30 years. Costs of Solar Panels continue to decline because of technological improvements and economy of scale improvements as demand accelerates and as Federal tax credits have been expanded/extended since the SoCal owner's purchase: reducing the pay-back time to as little as 8-12 years even for a Virginian, like me! I am Seriously considering a retro-fit in this direction, and if I jump I will update/report.
From my reading it appears that I would be able to reduce my current Electric Power usage by 50%.
Sunshine economics
A few big variables dictate whether a home PV system makes economic sense. But in rough terms, here's how the numbers break down in states with the best incentives: The average solar-power system is 4 kilowatts. (Think of kilowatts as the size of the system. The power it generates depends on size, efficiency and sunlight.) Figure the price, including installation, is $10,000 per kilowatt, so the total comes to $40,000. Through various rebates, credits and tax breaks, some states pay half that cost. The federal government will also chip in 30% of the cost, up to $2,000. Taken together, those subsidies drop the total to $18,000. Manufacturers say that solar panels will last 25 to 30 years, and they guarantee them for 20 years. Assuming a 20-year life span, that averages out to a cost of $75 per month.
Assuming those generous state subsidies, you'll get your initial investment back in ten to 15 years, including financing costs. The environmental benefit: 3 fewer tons of carbon dioxide generated every year.
If You are considering this option, here's a good place to start:
http://www.connectionary.com/...
This site offers a pretty comprehensive look at the factors one should consider before investing in home solar.
The American Clean Energy and Security Act of 2009 (pdf file of the bill here,) just passed by the House. Consumer Reports has a blog with the bullet points.
Update: This site is LOADED with government data on energy issues, including January 2008 and (estimated)2009 price per kWh by state and a state by state comparison of price from 1990 to 2007!
Greenbuilder.com has pretty decent Sourcebook for Passive solar building design.
and a Really good Links page.
Crashing Vor posted this link to check on tax incentives in each state! Many Thanks!
mataliandy posted a link for Figuring Out what your system will need, as well as some astute commentary! (below)