by Jack
California leads the nation in solar panel installation on homes. If you follow the solar panel ads, they claim to save you up to 80% on a typical electric bill. Further, they say if you don’t use their power, you can spin your meter backwards and put the electricity back into the grid, so potentially you could wind up getting paid by PG&E! That’s all great, but what happens to PG&E when the electric demand drops below what it takes to maintain the power grid?
We still need that grid to shuffle power back and forth at night and when the sunshine isn’t enough. So, who makes up the lost revenue to care for our infrastructure? I think I know, PG&E is going to ask y-o-u to cover their lost revenue caused by too many solar cells on homes and businesses. Y-o-u will have to pony up cash whether you use solar or not. This will likely be a flat monthly fee per household, of an amount yet to be determined, but it’s surely coming your way soon.
Have you ever stopped to consider the costs involved with solar? How much extra does it cost to do a re-roof when there are solar panels on the roof? It could be anywhere from a few hundred up to a few thousand, depending on many you have and how hard the roofer has to work to remove them for the new roof. And how much green house gas is produced in making and shipping the solar panels? I’m told that part zero’s out any green effect from solar. And as the solar panels age they produce less and less electricity, until they finally are worthless. What will it cost to dispose of them and what is the impact on the environment? And with the coming PG&E rate hike to maintain the electrical grid, the disposal costs, roofing costs, environmental impact cost, just exactly how much will we really be saving to go solar? My hunch is not enough to make it worthwhile. Me thinks it might better if PG&E worked on giving us more clean, low cost, hydro-electric power and we keep those solar panels off the roof or at least stop subsidizing them with our tax dollars so the real cost will be known to the consumer.
Solar panels have been around in my area for some time. My next door neighbor recently had them installed –for free, he said, but someone must have paid for it, probably us in the form of taxes. He bragged that his monthly bill was declining. I pointed out that my own bill was increasing to pay for his discount. I showed him my monthly utilities bill, with a new charge, deceptively named as a recapture charge. As my research revealed, the utility company had to go before the state utilities regulation commission and argue that since they would lose profits due a few people not paying as much, they needed to recapture those profits from the general customers. Look on your bill. I’ll bet you will find some similar euphemism.
I had them installed on my roof in July and they’ve saved me around a thousand dollars in electricity cost. I paid nothing for the panels or installation. If they become damaged the solar company will fix or replace them at no cost to me. If/when my roof needs to be replaced they will remove and replace them, again at no cost to me.
The company I used was recommended by my son who had them installed first. And then his in-laws and I followed with the same plan.
Sound too good to be true? It is true, per the contract I have. In return for the electricity they generate they get the kilowatts I don’t use, I assume to sell.
My roof wasn’t big enough to reach the 80% mark, but the 70% cut my $350 PGE bill for July to $23 for August. In Oct. I received a bill from the solar company for $78 for three months. My house is not big, my AC unit is new and efficient, but I have a pool and koi pond that have filters and pumps that must run.
I do agree with all of the solar panels going up PGE is going to have to either get into the solar panel industry or they’re going to see their profits go down to an unstainable level resulting in a subsidy to offset their loss.
One feature I asked the representative about was being able to have solar batteries for short or long power outages. He said they are working on experimental batteries now. I am very interested in them when they become available to be able to go completely off of the grid.
What’s happened in AZ is that once folks install solar panels, then the utility company cries poor-mouth and wants to raise rates. When the rate increase isn’t as much as they want, they put “fees” in place.
The claim that you can “make $$” from over-generating is bogus, since a cap is placed on how much you can sell to the power people.
Solar does work, if you have the right installation AND installer, but don’t expect a zero utility bill.
J. Soden, I absolutely agree with you that solar does work, how well it works is the $64 dollar question.
I think solar is a great backup to our power generation, but its not without many hidden or seldom considered cost factors and also a few environmental concerns. Thus its less cost effective and less efficient than advertised, but it does work. However, if there was a bottom line in this story its this: There will come a point when reduced revenue by the use of solar will take enough money away from the utility budget so that proper maintenance of the power grid is not affordable. When that happens, somebody has to make up for that shortfall or the grid will fail for lack of funding.
If I had the chance to take advantage of the subsidized solar panels I probably would go for it, but my house is so efficient solar is not a cost effective option. I’m told that your electrical bill has to be over $150 a month or solar doesn’t pencil out. My electric bill is about $40 a month.
There are two types of solar power systems.
Independent systems are intended to provide all the power that is required for a location. These types of systems are usually installed in remote areas where there is no access to electrical power lines. These systems tend to be much larger and usually include batteries to store power to be used during evenings and night or at times that the panels are not producing power. The systems are larger because they need to produce all the power that is needed by the location at the time the power is needed.
Most systems installed are called Grid Connected systems. That means the system is attached to the PG & E power grid. When solar power generated exceeds the power that is being used the extra power is provided to the power grid and the meter turns backwards. At other times when the power generated is less than that used the power used by the location is augmented by the grid power and the meter turns forward.
When the system is installed PG & E is notified and the billing model is usually switched to “Net Metering” and “Time of Day Use” billing. The “Time of Day Use” billing model charges more than normal for power during peak use times and less than normal for power used during off-peak times. This billing model is used because the solar power system will usually provide all of the power needed during peak hours (plus extra)so there is no charge for this time of day. Off peak times, such as night time, the solar power system is not generating and the location will be using power but will be billed at a lower rate. The “Net Metering” billing model determines the effect on the locations bill taking into account the excess solar power generated that is added to the grid. In California solar powered locations are credited for power generated that is added to the grid. The rate that is used is a low fixed rate and does not take into account billing tiers or the time of day the power was added to the grid. In other words, if the location is on time-of-day-use billing and more power is generated than used at a high rate time of day the location is only credited at the low fixed rate, not the high time of day use rate. If the next day is cloudy and the location uses more power than generated the amount used from the grid is billed at the high rate. If the credits exceed the billed amount for the power used from the grid no money is paid to the location owner from PG&E. The credit just continues to increase. This was challenged in court by non other than Clint Eastwood. Mr. Eastwood is the owner of the Tehama Golf and Coun try Club outside of Carmel. The golf club installed a large solar array on the country club building only to find they would not be paid for the excess power they generated. Eastwood challenged net metering in court and lost.
The advantages of a grid tied system are no batteries are required because power is available when the panels are not generating and grid tied systems tend to be smaller. The goal is systems are sized such that at the end of the year the credits match the cost of power used from the grid.
There are several ways to pay for a solar power system. You can buy it outright, finance it, or lease it. If you buy it outright or finance it the system belongs to you. You are responsible for maintenance and repairs. The panels have warranties for 25 to 30 years but will probably last as much as 40 years. The amount of power produced by a panel decreases by a small amount each year. The inverters usually have a warranty for 10 years. The advantage of buying is you receive the federal tax credits provided for solar power systems. In my case the tax credit was 25% of the system cost. The remaining cost was financed. The monthly payment for the solar array is about 70% of what my average PG&E bill was. And, I don’t have to worry about rate increases (other than the affects on net metering).
A solar power system can also be leased. Usually there is no cost to the location owner for the system and the installation. The leasing company then charges you a fixed rate or a rate based on usage. The power cost is usually lower than what grid rates are and it is usually fixed for the term of the lease. When a system is leased the location owner does not have to pay for any maintenance, just the fixed lease rate or usage rate. The solar equipment remains the property of the leasing company and it is the leasing company that gets the federal tax credits, not the property owner.
Leases tend to have a fixed term. At the end of that term the property owner must either buy the system or the system is removed. There may be some back-end charges for removing the system. Home owners may also be responsible for increasing their insurance to cover the cost of the equipment.
So which is better, buying or leasing? That all depends on the circumstances.
Getting a nice tax credit is great but you need tax liability to offset. The tax credit is not the type that pays someone that has no or low tax liability. It can roll over to multiple years if necessary. Leasing is great because you don’t have to put up any money up front but you might find you still are paying the same amount per month that you would have if you financed the system. I only paid $1000.00 down for my system and financed the rest. Again the payment is about 70% of what I was paying to PG&E each month on average. If you do lease, just make sure you read the fine print and fully understand what you will be charged for power and what your options and costs will be when the lease runs out.
You also need to understand what happens with the lease if you decide to sell your home. The lease may be assumable but the leasing company will probably have the last word on the assumption and there may be some processing fees.
If you decide to install a solar power system, get recommendations from friends. Don’t go with the lowest bid unless you check everything out. There is one company (I won’t name) owned by a California billionaire that is notorious for using very cheap and low quality equipment. If you want the system to last do your homework on the proposed equipment and check references. And, read the small print!
Aren’t you embarrassed? To be shilling for the PG&E?
Are there no depths to which you will not sink? Is this not violation of your conservative principles? Are not individual energy producers the very embodiment of your ideals? … and “collective” generation all that you abhor?
I’ve told you before, and you’re going to hear it this time.
Rural utility service is not sustainable. You cannot possibly pay enough in fees to cost out service. This has been fact since day one.
You flaming individualists have been subsidized by the rest of us from day one.
Henceforth, you will own it, be properly grateful for it, and vote Democrat.
I do giggle.
But I’d bone up on my sustainable technologies. Yes, I would. Because, if you will not own up, be properly grateful, and vote Democrat … we will abandon you to the mercy of the markets.
I do giggle.