solar electric energy systems
The conversion to solar power: Does cents?
Why can not we see more solar panels? Should not all take this "free energy from the sun" we've heard so much? Unfortunately, nothing is free. In this article we will look at the dollars and cents surrounding decisions to convert solar energy near my house in Chester County, Pennsylvania.
With the legislative and financial environment today, it would take a long time to recover costs associated with a residential solar installation in my house. This may change quickly and dramatically. You will see how some positive changes will completely transform the balance of Outlook, or recovery for solar electricity in southern Pennsylvania. I have examined the number of years required to recover the cost of the system in different situations. All scenarios assume the installation of a 3 kW photovoltaic system solar power could generate enough electricity to supply our energy current annual needs of 7,500 kWh household.
Parameters:
- Number of years required to amortize the cost of the recesses (years)
- Cost of the system (SysCost)
- The cost of the system Rebated (RSysCost)
- Electricity cost (ECost)
- Increasing the annual rate of electricity (MODERATE)
- Bonus State (State)
- Federal (Fed cut)
The solar system:
All scenarios assume the installation of a 3 kW photovoltaic system solar energy at a cost of $ 30,000 stopes. 3kw system provide 75% of needs total electricity production for the home. Initial rate of electricity (MODERATE) is $ 0.1529 per kWh.
State and federal rebates:
Our area does not currently have a rebate program, but legislation recently passed in the Senate to provide up to 35% of the equipment and installation costs. This bill is expected to be passed in the House of Representatives.
Federal programs provide 30% of system cost up to $ 2,000 as an energy credit that can be used to offset a tax liability in the year of installation.
Estimated cost of Electricity:
In July, U.S. Energy Information Administration raised its forecast for 2009 to increase the price of electricity from 3.6% to 9.8% (CNNMoney.com, 7/8/2008). The scenarios (several possibilities Table 1) the long-term pattern of price increases.
The scenarios:
Table 1. Parameters for three scenarios of solar energy in Chester County
SysCost
State
Fed
RSysCost
MODERATE
($ 000)
% Discount
($ 000)
($ 000)
% Pa
Base Case
30
0%
2
28.0
3.5%
Moderately favorable Case
30
15%
2
23.5
6.0%
Very favorable Case
30
35%
2
17.5
9.5%
Each situation generates an annual cumulative savings, determined by the consumption of utilities (with solar panels = 2,500 kWh, without solar panel is 10,000 kWh) x adjusted rate by inflation in a base year. This allows us to determine the number of years to recoup the cost of the solar system (years). All scenarios assume the cost for install solar electric systems are paid in full and not financed. The cost of financing a system would increase the recovery time or the number of years required to recover initial costs.
Figure 1. Cumulative cost and the balance for three scenarios.
Figure 1 shows the equilibrium point at approximately 18, 13 and 9 years for the increasingly favorable scenarios.
Discussion:
Breakeven point for solar-energy systems is a function of several variables. Concurrent changes in the economic and regulatory environment can have a profound synergistic effect on the feasibility of implementing solar energy – in Chester County, PA. This is great news because it shows that there can be alternatives viable in our current energy model. In the best cases, a repayment period of 9 years would provide a good incentive to switch to a "free" and renewable energy source. However, solar panels currently available have an expected lifetime of 25 years and are guaranteed for 20 years. The recovery time would have a finite time of 11 to 16 years. It is not disputed in this paper is the option to sell excess power back to the service provider. In areas and situations in which the system generates more electricity you use, the meter runs backwards, and can sell electricity to the service provider. This only increase the annual energy savings.
If a combination of legislative and economic variables come into alignment, solar energy can leave the realm of environmentalists Avid and into the mainstream. An economically viable model of solar energy will go a long way to reduce our footprint collective carbon and reducing our dependence on nonrenewable energy sources.
solar electric photovoltaic (PV) System
