I wouldn’t say I was shocked by the price, but definitely a bit off guard at the amount it might cost to get my home setup with a photovoltaic solar panel system. I stumbled across a really resourceful site on the subject called Renewzle. With some basic information and a few clicks, the site can generate a rough estimation about what it would take to power my house according to my current energy usage. It’s pretty awesome actually, except for the cost. If I wanted a system that took over about 50% of my current energy usage, I’m looking at roughly $10 grand and I’m not sure that included labor.
Another bummer is that I’ll only recoup about half that amount when it comes time to sell my house. I guess the cost of energy is still so low that people don’t really see the value in adding solar panels and won’t pay a premium for it, but that doesn’t really bother me. However, there is one slightly less appealing aspect to solar power. If I finance the project with my home equity, the additional amount to my mortgage will be about $10 more per month than what I’m paying for my electricity now. Not a huge amount, but it almost negates the purpose… almost.
There are some advantages to solar. For one, the government wants to give me a fat tax break just for living off the grid. I can also sell some of my excess energy back to the power company. I’m guessing they would give me a credit on my energy rather than cutting me a check, but I could be wrong. If anyone reading knows the answer to that one, I’d love to hear it.
Finally, nearly 50% of the electricity I use now is created through natural gas, which is better than coal, but still releases a huge amount of Carbon Dioxide into the atmosphere. I could cut my carbon footprint by as much as 5,000lbs just by eliminating my dependency on piped in electricity. That’s pretty cool.
Unfortunately, the housing market has my equity in a downward freefall, so it will be awhile before I can make the investment. When it does come back from the depths below, I’ll be ready, and it just may be a lot cheaper by that time.
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Brad Smith 10.06.08 at 2:59 pm
I can answer your question about whether or not your utility company will cut you a check for excess power your solar system would push back into the grid…no. All of the applicable incentives and regulations are set up to prevent you from installing a solar system that generates more power than you use, so you will always have some remaining utility bill, even if it is very, very small. The good part is that you will get full credit for the power you send to the grid, you just don’t want to install a system that generates more power than you use.
By the way, the estimates Renewzle provides assume that you will finance the purchase and the net monthly cost include everything; loan payment, tax savings, remaining electric bill, etc. It all depends on where you live and how much you currently pay for electricity, but most Californians can reduce their monthly expenses by installing a solar system. Moreover, with the new Federal Investment Tax Credit that takes effect on January 1, 2009, the savings will be enormous for most homeowners.