Re: Solar Ideas - long but hopefully informative

["Bob Bolles" <bbolles@cts.com>]

On Thu, 25 Jan 2001, Andreas Georgiades
AGeorgiades@Gain.com, wrote:


>I've been considering buying a PV (photovoltaic) solar panel system but I
was pretty shocked at how significant the initial cost would be...
I thought, oh well, once you buy it should pretty much pay for itself  in a
few years assuming it's virtually maintenance free. - <snip>
> Any ideas out there from all you supersmart people from all over the
world?

Following is a response from my partner, Skip Fralick, PE, regarding your
post. He was the San Diego Gas & Electric (SDG&E) Solar engineer for a
number of years. Now we are doing what SDG&E wouldn’t – providing solar
systems for San Diego. Regards, Bob

Hi Andreas,
I'm not supersmart - just an engineer, but I'll try to address some of your
questions.
First, and foremost, your calculations are right on (about 20 year-plus
paybacks)!  Also, the 6 hours a day peak output is a bit high for San Diego
and most regions.  I assume about 1800 t0 2000 kWhs a year per peak kw
installed here.
Typical PV residential systems here are costing around $8,000 to $10,000 a
kw, grid-tied, with no batteries.  Rates here have been hanging around $.20
a
kwh for several months.  I expect them to drop, but who knows how much?
California also has a "Net Metering" law that essentially unwinds the
electric meter whenever PV energy is fed into the grid.  One other incentive
here is a $3,000 rebate from the utilities for a grid-tied system.  Putting
all the optimistic numbers together ($8,000 cost, $3,000 rebate, 2,000 kWhs
a
year sold at $.20/kwhr, gives a 12 year payback.   If the system cost is
amortized in a 30-year mortgage at low current rates, the monthly costs
(interest tax-deductible) can be close to the average utility cost (assuming
they stay high), and would thence serve as a hedge against future rate
spikes.
I don't advise my customers to do PV on grid homes if economics is their
main
concern.  As happened when solar water heaters 20 years ago had 15-year
paybacks against natural gas, and many people still chose to buy, this is
starting to happen now.  Many people buy for reasons other than short
paybacks.  Many buy to make a statement, or to contribute to growing a good
industry.
The best application of residential PV is for new construction, where a
power
line might have to be run for more than a third or half-mile.  Then a
pv/battery/generator system might be more cost effective, especially if
sound
passive, strawbale, efficient appliances, principles are incorporated to
reduce the size and cost of the PV system.  My company, Sustainable Earth
Enterprises (www.StrawBaleHouse.com) builds straw bale and other natural
passively-conditioned homes, and solar thermal & electric systems.  With
intelligent design, an energy efficient house can be built for about the
same
as a house using 2 to 4 times as much energy.
So the bottom line recommendation is design the home as a system, not to
just
look at one component.
Hope this helps.  Email or call me if you have more questions.  Your
analysis
was very good!
Skip Fralick
619-985-2603
solarskip@aol.

Poway, CA
(San Diego County)
www.strawbalehouse.com

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