Saving Money with Solar Power?

Hey Mr. Green,
If I were to put solar panels on my home, would it be cost-effective? I see most solar panels in hot climates, and Ohio can be very cold. I live on a five-acre tract and have the option of wind turbines also. --Sherry in Dayton, Ohio

It may get cold in Dayton, but that doesn't mean you don't get sun. In fact, you get 80 percent as much sunlight in a year as Sacramento, California, whose municipal utility is a leader in solar development.
First, consider the low-tech route: efficiency. The average U.S. household consumes 11,000 kilowatt-hours per year, when many could get by on half as much. Eliminate waste by turning off lights and appliances when not in use, for example, and you could slash your energy costs with no investment.

Wherever you live, take a look at returns over the long haul. At $9 a watt, which is the typical cost in your region, a solar energy system large enough to generate power for an average household would cost roughly $80,000 after rebates and tax credits (or less in areas with stronger incentive programs). In Ohio, as in most states, if you generate more than you use, your excess power feeds into the electricity grid and you earn credit for it, allowing you to draw out as much as you put in--for free.

Still, it would take about 30 years for you to break even, assuming the utility rate goes up 4 percent a year and you put money saved from your energy bills into tax-deferred investments. But you'd keep more than 260 tons of greenhouse gases out of the atmosphere over the life of the system.

Once you nail down the cost per watt for solar, contact wind power dealers and see how their costs compare. It's hard to be more specific about wind power because there's so much variation, depending on windmill height and local topography. You might also consider systems that combine wind and solar if wind blows much harder in the winter than in the summer. These hybrid systems take advantage of seasonal variation. Meanwhile, be thankful that Big Oil hasn't privatized the sun and forced us to pay for it right down to the last photon.

Comments

[Carl Carter]

An alternative which wasn't asked for but which I think you should have mentioned is using solar panels for heating water. New, high efficiency, well insulated solar water heaters are cost effective in most of the US and are much cheaper to install than solar electric, plus they are considerably cheaper.

I have investigated both for my location in Oregon, and the water heater is a viable option for me and is on my to do list.

[John Reindl]

A worthy analysis. What I would also like to see included are the social and environmental costs associated with both the current situation and any alternatives. A number of countries incorporate these costs into the costs of products and services, to internalize the externalities and help the decision making process, a la Pigou. The state of Wisconsin did such an analysis for the statewide recycling program and the numbers were quite large ($285 a ton benefit from recycling).

On a different issue, I was very surprised to see that the average US home uses 11,000 KWH a year. I have a pretty standard 3 bedroom ranch home in southern Wisconsin and use about 2,400 KWH a year. It would be of interest to know why the average US home is over 4 times that level, since I haven't really done that much to reduce electrical use, beyond replacing most incandescents with fluorescents and not using either air conditioning nor dehumidifiers.

John Reindl
John Muir Chapter Member
Madison, WI

[Tony R]

In NW Ohio, we use nearly 10-11,000 KWH per year (3 small kids, house built 1996, 1800 sq. ft.). This is double our use prior to the children (think lights left on). A/C contributes about 1,000 KWH during the summer.

NW Ohioan

[Ron Tisue]

I found your response to sherry in Dayton, Ohio about solar collection and wind collection irresponsible. You, of all people should understand that any heat gain, developed from any system, will be lost through poor insulation. Compact Fluorescents are a must- as is upgrading the home envelope.
A critical look at your home's insulation and heat loss should always be the first step in analyzing the potential for energy sustainability.
In the future, I would hope that you would encourage your readers to address the most basic framework of heat loss in their homes, in order to protect that they are getting the most out of their solar panel investment.

Ron Tisue
Solarbank Energy Systems
Cincinnati, Ohio

[Edith Borie]

a comment on your suggestions for solar power. In addition to
photovoltaic systems to produce electricity, one can use solar
energy to heat hot water and support the home heating system.
The German magazine Oekotest published a study last March, indicating
that one can break even in a bit less than 20 years. The hot water
has to be stored in a well-insulated tank. A system with about
10 square meters (90+sqare feet) and a tank capacity about 200 gallons
can supply a family of four with hot water and about 20 percent of the
heat in most places in Germany (assuming a properly integrated system).
These numbers should be comparable in most places in the USA.

PS My neighbor has a solar heating/hot water system and uses no fuel
at all from May to October. My plumbing was not suitable, so I opted
for photovoltaic. It is at the very least a more environmentally
responsible and cheaper toy than a fancy sports car or SUV.

[Dave]

Just remember this, the more people buy into this, the cheaper it gets. Soon, one would hope our rubbish governments would get involved!