Recently, I read HoundDog's dairy "Solar Cell Costs Fell 21% this Year, and May be Cheaper Than Fossil Fuels and Nuclear in 3-5 Years". After I commented about my panels, HoundDog suggested I write a full dairy on them. So I'll cover:
- How I got my solar panels
- The installation process
- Costs, tax credits, and reimbursements
- My BGE usage and bills
- Future forecast
While I am very pleased with the performance of my panels, I want to stress that it is not the easiest or most effective way to make an impact on your energy needs or impact on the planet. Energy efficiency is a much easier, faster, and cheaper way to make a dent in your energy bill and carbon footprint. Check for local programs from your energy provider or these tips from the Dept. of Energy.
If you're like me and plan to live at your home for as long as you can, then solar panels are a good long term investment, just not the only way to lower your impact.
Back when I was in the process of getting my forever home last year, I knew I wanted to get solar panels. I'm an environmental scientist by trade and planned on living in my house for the long haul. After the purchase was underway (thank you $8,000 home buyer tax credit), I did searches for local solar panel dealers and companies.
1. How I got my panels
Maryland used to be home for BP's Solar Panel factory/research HQ. They've since relocated HQ to Madrid and have production facilities in India and China. So they were out.
Luckily, I did find many reputable small-mid size dealers within my area. I went with Standard Solar mainly for their turn-key service. Here in MD, we have a mandate to generate 20% of our energy from renewables by 2022, with a 2% minimum from solar. This leads to the creation of Solar Renewable Energy Credits (SRECs). Other states with mandates should have something similar.
A SREC is a credit I get when my panels make 1 megawatt of power (1,000 kilowatts). Baltimore Gas & Electric (BGE) then purchases my SRECs to be in compliance with the state mandate on renewables. The process, to me, was cumbersome and one of the perks with Standard Solar was that they handle all the paperwork with the state, utilities, and accounting for the SREC.
A representative from the company came to my house and did a visual inspection of the roof, basement, and exterior. My house was essentially perfect for panels. My attached townhouse has a flat roof, faced south, and had no shade obstruction. Checks also included if the roof was able to support more weight, scouting out potential places for wiring, and adequate space for new panels.
I was offered a $19,602 2,593 kWh/yr system made in China, or a $10,878 1,534 kWh/yr system from a plant in Ohio. Yes, I went with the American manufacturer. Another feature of personal solar panels is that you can add more when you like. In a few years, I do plan to get more solar electric panels to increase my capacity. The price was the whole price for the panels, install, and other services from Standard Solar.
Something that depressed me was that the sales rep informed me that their US makers have difficulty competing with the Chinese mainly because there was no government incentive, no mandate to increase production. As more states pass a mandate this may change.
I signed the agreement, set-up my appointment times for installation of the panels and electric boxes and wires. The panels would be ready within a month and installation would occur soon after.
2. Installation
Over two visits, Standard Solar sent crew out to set-up my panels. It required little more than my presence at the house and access to the roof for the panels and basement for the electrical panels.
The only hiccup was that one of the holes drilled into my house for wires to go into the basement was not completely sealed. A call to the company and it was fixed next day.
By the end of September I had solar panels and the equipment to run it. Just not the authorization due to bureaucratic process in MD and BGE. A BGE representative had to come out to inspect all the work then sign off. Then I got word a week later that I could turn the switch and allow the power the panels that have sitting idle to power my house.
It was a pretty cool moment to see the system turn on and have the output display the amount of energy made and CO2 saved within the first few minutes.
3. New Equipment
Aside from the panels, I also had two new electric panels installed. One was a net-meter replacing my old meter, done by BGE. This meter goes up or down depending on my household uses of electricity vs generation from the solar panels.
The new panel is the one connected directly to the panels. This panel displays:
Total capacity - If a panel is covered by snow or debris, this would drop. The slope of the panels though means this would only a temporary problem.
Generation today - This was taken at the end of a cloudy day. The only time, aside from night, I get no energy production is during rain storms or snowpacalypse.
Total over lifetime - 685.5 kW over lifetime (less than a yr) and 1913 hours making energy
CO2 saved - I'm not sure how this is calculated. It maybe a generic formula, or a comparison to how much an equivalent amount of fossil fuel would release, or what. I'll update this when Standard Solar gets back to me.
The only other pieces of new equipment were wires and cables connecting the whole thing.
4. Costs
I paid out of pocket $10,878 for the whole system. Tax credits dropped this:
Federal - $3,263.40 - The Fed pays for about 30% of the costs, and this credit is in effect until 2016.
MD state - $2,143.75 - I actually maxed out on tax credits for 2010, so most of this will roll over to 2011.
All total, I paid $5,470.85 for my solar panels.
5. BGE usage bills
I have not generated 1 mW of power yet (over halfway there though). Each 1mW equals 1 SREC. Standard Solar estimates that BGE will pay me about $318.50 for each SREC.
My panels have been playing a noticeable roll in my household's energy usage. I have used BGE for 3,156 kW and my panels have made 685.5 kW. All told, solar has powered 21.72% of my household needs.
The more energy efficiency you put in place (and fewer wasteful roommates and a boyfriend who has to turn on each light you have) the percentage should be higher.
6. Future Forecast
Going by Standard Solar's guide (they gave me lots of info, folders, and graphs to look over), they expect the following:
Return on Investment - 10% - during recent discussion with my bank's manager, she raved about my panel installation. She said she can easily see at least 15% return based on how the housing market is going.
Carbon Offset - 1.6 tons/yr - my panels have offset 1165 lbs, about 45% of the way there.
Payback - 10 yr - this takes into account the tax credits, sale of SRECs, and reduced BGE bills.
Am I happy with my system? Damn skippy I am. Again, I stress that investment in increasing energy efficiency is a better path to go. Swap out your bulbs for CFLs, apply caulk to every crack, upgrade your appliances, and get a programmable thermostat. Your energy and carbon savings will be much higher and quicker than what you can gain from solar panels. I do environmental consulting for a living, so I took care of the efficiency step when I moved in.
Solar panels, while costly upfront, pay off quickly and are a great addition to your home if you plan on living there for years. My next upgrade will likely be a solar water heater. Those systems pay for themselves faster than solar panels. And soon, I'll be self sufficient enough to survive the zombie apocalypse.
10:31 PM PT: Sweet, the reclist!
Wed Jun 01, 2011 at 6:28 AM PT: From Standard Solar:
In response to your question about how the SMA inverter calculates the CO2 emissions avoided, I am not sure what formula they use. I searched for an answer on their website but did not find an answer. My assumption is that they take your kWh produced with solar and make some assumptions about the composition of the gird electricity at the national level (I doubt they program it to be state or regionally specific).
Thu Aug 25, 2011 at 7:35 AM PT: Yesterday, the Maryland Energy Administration sent me a "grant" for my solar panels (I love living in this state). My panels now cost me around $3,000, and that is not including the now 5th month in a row of zero electric bills.
Tue Sep 06, 2011 at 9:10 AM PT: During Hurricane Irene, most of the power on my block in Baltimore went out. Come the first rays of sun though, my panels powered on and provided me with enough to get through simple tasks throughout the day. I submitted a letter to The Sun regarding it - http://www.baltimoresun.com/...