Cost of Installing Solar – When Installing Solar Makes Sense

By sblackb • Mar 10th, 2010 • Category: Alternative Energy Sources, Lead Story

One of the questions I get asked frequently is what the right cost per watt is before it makes sense to install solar panels.  While endless variables make for a less than black and white answer, I can offer my opinion on what makes good fiscal sense and what I’m considering before taking the plunge.  This is the beginning of a series of posts that look at solar energy, the cost, considerations, and reasoning behind going green. installing solar panels.

What Goals do you Achieve by Installing Solar Panels?

Call me crazy, but I like to solve most problems by starting at the end result and working backwards.  Too many times I have bought something with the best intent, but soon realized that I didn’t fully understand the solution I needed and I wasted time and money on the wrong result.  Installing grid tied solar panels on your house would be would be an abject failure if your principal goal was to create emergency power backup.  Of course installing a battery bank which is connected to your solar panel array could be added to the solution, but certainly not a trivial measure and not one that should be an afterthought.  So with that in mind, I suggest you get really clear on your goals for installing solar panels or wind turbines before concerning yourself with cost.  Sure, it’s a major factor, but not one that should change your goals – maybe just how you get there.  Don’t just buy a pallet of solar panels because there are significant tax incentives or your saw it on Green TV.   Do it because you absolutely are clear about your goals and how you want to achieve them.

With that in mind, let me walk you through how I’m approaching solar so you get a sense of my goals and what actions I’m taking.

Initially, I got hooked on the notion that I could have energy independence by strapping on the solar panels and having the utilities pick up half the tab.  when I ran the numbers, it didn’t quite pencil out like I thought it would and the size of the array I would need for my energy IN-efficient house was insanely large.  My design is further complicated by the fact that I also have a goal of installing solar and/or wind on a remote cabin – and the design of that that installation is completely different from our primary residence and has different goals.  Just what I need to muddy up the ideas in my head.

Reasons for Installing Solar Panels, Wind Turbines, or Micro Hydro Electric?

I’ve spent quite a while trying to answer this question and in its most basic form (in my head,) this urge to go Alternative Energy (aka Green Power) is driven by one of four key desires:

  • Save the Planet /Health – There are those who believe that we have the power to destroy or save the earth.  While I’m not one of them, I do believe in preserving in for our future generations and improving the overall health of our surroundings.  I may not buy into the greenhouse gas argument, but I don’t like to see my air either.  Right or wrong, “green” reasons are very much a driving factor when installing alternative energy sources.  If you happen to have this desire burning in your belly, they you can throw all other rational to the wind and dive forward with solar panel or wind turbines without too much other thought beyond the system design and maybe how where the hardware is made.  Funny how simple things become when you decide to do it because “it’s the right thing to do” – carry on.
  • Financial – Don’t kid yourself – Green is an industry.  From Solar panel makers, to insulation installers, and our fearless (and sometimes mindless) government from the town mayor to President Obama –  going green is all about the Benjamins!  But homeowners have the ability to rake in some serious tax incentives and utility offsets in addition to reducing or eliminating their power bill.  If you live in a warm climate like I do or face brutally cold winters, killing the power bill alone is nothing to scoff at.  So everyone has something to gain from green which makes for a very balanced equation (or unbalanced on depending how you look at it.)If you are looking a solar because there  are good incentives, prices have come down, or you want to reduce your power bill, take some time to do your research and see if it pans out for your situation.  Often times solar doesn’t pencil out alone as it didn’t in my case.  That’s why we are taking measures to improve the efficiency of our house before installing photovoltaic (solar panels) on our roof.
  • Energy Independence – If you believe in the Peak Oil argument or simply hate that we are beholden to foreign oil to power our homes, cars, and office buildings, Energy Independence might top your list of reasons to install solar panels or wind turbines.   It might also go hand in hand with our last desire  in the list which is Emergency Preparedness.  Depending on your focus, the goal of Energy Independence may actually expand the scope of your project to include transportation as well.  As plug-in hybrids are becoming more popular, we will start seeing more solar  or wind power systems on houses and business that are sized to supply the additional demands of the vehicle.  Independence from commercial energy sources allows you to safeguard against energy shortages, spikes in oil costs, and reduce the impact of rising utility rates.
  • Emergency Preparedness -  Everyone knows that they should be prepared for an emergency, but how many of us really do it?  Do you keep extra water on hand?  How about an ample supply of food, cash, medicine or other necessities in case we run into major trouble?   While most of us could probably eek out a week or two without leaving the house if needed, but would that continue to be true if you lost power?  How much of your food would spoil?  Are you on a well with an electric pump?  Do you have an alternative heating source and sufficient supply of fuel?  Could you even make a phone call for help of your cell phone battery was dead?The response of local utilities is typically pretty good which causes very few of us to fear that we will face a disaster that will knock us back to the stone ages for any length of time.  If we did, we would all be more prepared.   Given the state of our economy, a government that is drunk with spending and trashing the long-term value of the dollar, and the harsh reality we faced on 911 when we learned of those in this world that want to kill us, emergency preparedness is a very strong argument for solar power.  But be careful as there are all sorts of scams out there that prey on people’s fears of loosing power and selling “Solar Generators” as a solution.  While they do convert solar energy to useable power, they do not store enough power to use on most household appliances.  They are fine if you need a way to toast your pop tarts when the power is out, but don’t expect them to power any vital systems for any length of time.  Part of being prepared is arming yourself with the right information, right?  Plan your system wisely.

So there you have it.  What I think are the four main reasons people look to solar power and alternative energy sources.  I’m sure there are more, I just haven’t come up with them yet as I explore my motivations for adding solar to our current home.  (Feel free to expand my list by adding a comment below.)  Most of us don’t fit neatly into one particular category, but rather desire a combination of each of these.  So before you go buy solar panels, a “solar generator,”  windmill, or sign a contract with some green energy pedaling salesperson, take some time to get real clear on why you want to do it and what that will look like when you are done.  You may be surprised that the solution you end up with is different than the one you start with.

Part two we will look at Design considerations for Installing Solar Panels.

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sblackb is Scott and Liz share a passion for the outdoors and want to help protect the natural beauty of our planet. Scott feels like one of the best ways to accomplish this is to take on responsible power use, generation and learning new methods for better living with less resources.
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