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When not to Put in a Photovoltaic System
We
believe that solar photovoltaic systems can be a great energy solution
for most homeowners. However, they are not the best solution
for every homeowner. In talking to experienced solar contractors
they estimate that about 15% of homes are not a good fit for a solar
PV system. There are a number of scenarios where PV systems
are impractical or where other uses of your money would get better
results. In order to make a good determination you need to
look at both energy generation and energy conservation.
Here is a list of scenarios where we think putting in a PV system
would be ill advised:
- Poor Insulation - Many homeowners have
homes that are under insulated. There is no point in creating
energy using solar panels only to have that very same energy
go out through your roof and be wasted. Energy conservation
should always come before energy generation so take care of
your home's insulation first before you spend any money on a
PV system. Once your home is properly insulated and if you have
money left over then you can consider a PV system. Also, it
is worth noting that increasingly many states will insist that
your home be properly insulated before they will provide rebates
for photovoltaic systems.
- Old Roof - Also, if your insulation is good
but your roof is on its last legs you probably should consider
getting the roof done first so there is a good foundation for
the solar panels. If you try to wait a few years and then
do your roof then you are going to have to remove all of the
solar panels first which can add unnecessary cost.
- Unavoidable Shade - Solar panels are very
durable devices but their performance drops significantly if
all or even part of the panel is exposed to direct shade for
any length of time. A competent solar contractor can analyze
the location where you are thinking of putting your panels using
a device called a solar Pathfinder and can tell you what the
impact of shade from trees or other buildings might have.
If trees are the problem you have the option to remove them.
However, sometimes the trees are on a neighbors property and
removing them may be more difficult. If you are in an
urban area and shade is being caused by another building the
problem is a good bit harder. Some states have begun enforcing
the right of one homeowner not to shade out another homeowner's
PV system (a right to light so to speak) so there is some chance
you can take legal action to remove whatever is shading your
property. However, these types of lawsuits are relatively
new and it might end up being more hassle than it is worth.
Consider using a pole mounted system for holding your solar
panels or consider putting the panels on your garage instead
of your house. If these are not options then solar PV
might not be the best solution for you.
- The Payback is Too Long - For some homeowners
the payback period for solar energy may be too long. This
is particularly true in those states that do not provide any
incentives for solar energy. If you are not sure if your
state provides incentives check out the database at
www.dsireusa.org and you
can see what incentives they offer. When all is said and
done any investment should make good economic sense. Solar
has its positives and negatives as an investment. On the
negative side is the fact that the current administration is
in the process of letting the $3000 federal solar incentive
lapse. However, there is a chance this will either get
overturned or brought back by the next administration. On the
positive side of the equation there is the fact that both electric
rates and home heating fuel costs are going up rapidly which
shortens the payback period for solar. Any payback analysis
should include some adjustment for the likelihood the energy
rates will continue to rise. Since solar panels last a
very long time (25-30 years at minimum) the question is how
much will they rise. Most estimates we have seen suggest factoring
in an annual rise in energy costs of 6% a year is appropriate
in a payback analysis but given the recent dramatic rises in
the cost of electricity in the last few years you may want to
go with a higher inflation factor.
- Insufficient Capital - Sometimes people just
cannot afford to put in a complete PV system. A full size system
can cost between $15,000 and $50,000 depending upon the size
of your home and for many people these days that is just too
much money to come up with. One option is to consider
getting a loan for the system. A number of states have low interest
rate energy loans they can provide to help support the cost
of putting in a PV system. Home equity loans are also
an option for those of you who still have equity in your homes
given the recent decline in the housing market. While
equity is down so are the interest rates on home equity loans.
Also you might want to consider putting in a smaller PV system
now and then adding more panels later. Once you have a
basic system installed adding additional panels is relatively
easy. We have seen many owners add on to their base system by
looking for sales on panels when the opportunity presents itself.
Finally, one option you may want to consider is going with a
solar thermal system rather than a PV system. Solar thermal
systems cost far less than a full-sized PV system and can still
provide very significant energy savings. Most cost between
$4000 to $6000 and can pay for themselves in just 3-5 years.
- You Are Planning to Move - This one is just
a bit tougher to judge. The question is, if you are only
planning on being in your home a short time will you get a good
return on an investment in a PV system. In other words
will the increase in your sales price be equal to or greater
than what you spent on the system. Many experts believe
that adding a photovoltaic system to a home will immediately
result in a significant increase in home value. However, we
have heard other real estate experts tell us that given the
current down real estate market the investment in a solar energy
system is not completely recoverable in a short time frame. Many of the areas where
this appears to be the case, such as Florida and California,
are going through one of the worst housing markets in the last
50 years. If you are thinking of moving soon after installing
a solar system you might want to discuss the resale value with
real estate agents in your local area. House prices are
a local phenomenon and what might be a good investment in solar
in one area might be a bad investment in another.
That being said one other option you might consider is taking
your panels with you when you move. The bulk of the cost of
a solar system is the panels themselves and frankly they are
not all that hard to dismantel and transport. On most systems it is a relatively
easy job to take the panels and railings off of your house and take them
with you to your new house. Even the inverter can usually be
transferred. You would still have to have the panels installed
and inspected in the new location but this is something we are
seeing more and more. We even know of one family that moved
their solar system from California to Hawaii!
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| New Content |
We have been getting a lot of questions
lately as to the costs for a solar
PV system and how soon PV systems pay for themselves. It is not always
easy to tell given the host of federal and state regulations. To
provide some clarity on these cost issues we have updated our section on
Typical Costs to reflect the
latest prices and have added a new article on
Calculating the Payback for
a solar PV System. Take a look! |
| Solar Factbook |
PV Demand Growing - Global photovoltaic demand continues to soar in 2010 and is currently projected to double over the rate of installations
year last year, according to Solarbuzz®, a solar energy market research company.
Solarbuzz has raised its 2010 market size to 15.2 GW, which compares with a revised 7.5 GW in 2009.
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