Monday, August 28, 2006

The Power of the Sun

I attended a seminar at work today. My company is subsidizing solar panels for homeowners. And no, I don't own a home, but I went because I was curious.

I learnt about the interesting concept of Net Metering or how to make your meter run backwards. The solar panels generate DC power, which is converted to AC (which is what the grid supplies) using an inverter. This AC power is fed back into the grid, when it is not being consumed (e.g., when you are away at work), which CREDITS your meter! How cool is that? Read more here.

There was an interesting question about what would happen in a power outage. Contrary to what you might think, a solar powered home would be blacked out in an outage. Obviously, there is power to be had from the panels, but the feeding back of the power into the grid would endanger PG&E's lines and workers (who are expecting no power on the lines due to the blackout). This is PG&E way of dealing with renewable energy (in the short term, at least).

The cost for solar-enabling your home is offset in part by a rebate from the state of California (currently $2.6 off from $9 per watt), plus you can get a long-term financing with tax-deductible interests. The government subsidies are predicted to go down as time goes by (as solar power gains acceptance, and the incentive is no longer necessary. Plus, the cost of the panels will go down roughly proportionally as well).

The panels come with a 10-year equipment warranty and an average 20-year power output warranty. So look at this as a long term investment. But who stays in a house for over 5 years anyway?

3 Comments:

Anonymous Anonymous said...

Now I don't claim to know anything about power transmission, but isn't it not an unideal model to have power being fed into the grid at numerous multiple and random points? It's quite an ingenious idea no doubt, but I think it may not appear equally attractive to people in parts of the undeveloped and developing world.

In India, for instance, most people who'd take the trouble and the time to invest in some form of alternative energy would do so because the main grid is just not reliable enough, with extended and frequent power outages. So the average person who buys solar panels will want the advantage of having backup power available when the main grid does not supply power.

If there's any extra stored power left after that, only then would the user consider using the solar power to cut on power costs.

In India, electricity for domestic consumers is priced at relatively affordable costs, even though the nation has a power deficit. In addition, despite so many years of development, solar panels continue to remain relatively expensive.

I have the suspicion that most people figure that the amount of money required to buy solar panels (enough to completely power a medium sized house), if saved in a bank, will generate more than enough interest to cover the annual electricity costs. I'm not sure whether this is true, but I have heard this being said.

August 31, 2006 at 9:09 PM  
Anonymous Anonymous said...

Oops. *is it not

August 31, 2006 at 9:10 PM  
Blogger Rookie said...

witnwisdumb,

I'm not quite sure I understand why it is not ideal to feed power (generate power) and feed it back to the grid. Do you mean in terms of the actual electricals of it or just in terms of the usage model which you talk about later?

I agree that a big plus would be to have solar power supply your house in an outage. And I am sure it will happen; the current situation exists because PG&E is enforcing this as a way of ensuring safety of its grid and workers. In India, I am not aware of solar panels being mada available for home installations (yet). And yes, when it does come around, it would make sense to enable it to be active in power outages.

In the US, the average cost to install panels for an average home (3 bedroom, 3 bath, >$150 electricity bill a month) is about $20k. This is a long term investment, and I do not believe interest from a bank will offset it (maybe if you a more savvy investor?). And remember, it is not just the "annual energy costs" that are being offset, it is energy costs over the upcoming years...

September 2, 2006 at 9:58 AM  

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