Solar Panel Electricity

Solar Power Economics: the costs and benefits of residential solar electricity - part 2


This is part 2 of an article discussing the costs and benefits of residential solar electricity; you may want to go back and read part 1 of solar power economics before continuing.

Government incentives

As already mentioned, local and national subsidies are often available as an incentive for the uptake of solar power. These can be substantial, often covering around half of the initial cost of installation. Why? Largely because of the increasing political pressure to tackle climate change, or at least to be seen to be trying. As a consumer it's a no-brainer if your home qualifies for one or more subsidies because it will drastically shorten the length of time it takes you to recoup your investment. You still need to look at the numbers and weigh up whether you can afford it or not, of course!

I would love to be able to list all the available subsidies here, but it's an impossible task as these things are often very localised and change with the slightest shift in economic and political conditions. I'd advise you to check with national or state administration sources, or ask local installers themselves - it's in their benefit to be aware of these grants because it increases demand for their products and services.

Depending on where you live, you might even be able to get paid a certain amount for each kWh of electricity you produce - even if you consume all of it yourself! Talk about having your cake and eating it...

Location, location, location

It's obvious to most people that the sun's intensity is greater the closer you are to the equator, and naturally this is a major contributing factor to the potential performance of a solar array. There is a standard measure for this, called solar insolation - defined as the number of kWh that can be produced by a square metre of panelling per day. It's a very important indicator of what size system you'll need to support your energy requirements, or conversely how much capacity a given system will have in a particular location. This data is widely available as an average over the last number of years for a particular area - simply search for "solar insolation" plus your city or region.

Having a rooftop that points in the right direction is also very important for getting the best performance from your solar panels. Ideally the solar panel array should face due south (in the northern hemisphere, or due north in the southern hemisphere) and be inclined at a 30 to 40 degree angle. That's not to say that solar will not work for you if you don't have the perfect location, just that it won't produce as much electricity as it could. Consult a professional installation company to help you assess your home.

It probably goes without saying, but I'll say it anyway: there should be no nearby structures or vegetation that will cast a shadow over the panels - they need direct sunlight to work.

Industry growth

Renewable energy is in a growth phase at the moment. There is a lot of money being pumped into research and development and production facilities. This is all good news for the consumer because the result of a maturing industry is a greater capacity to provide more efficient systems at a lower cost. That does not necessarily mean one should wait before having a solar system installed though, because as market forces drive the cost of solar energy down, no doubt we will see a reduction in the level of government support that exists at the moment. So whilst solar panels are likely to be cheaper overall, they may not be cheaper to the consumer than they are right now!

Conclusion

As we have seen, installing a residential solar electricity system is a significant investment which should not be taken lightly. But there are enough economic benefits to make it realistic to expect to see a return on investment in five to ten years in many cases. Just make sure you do your homework before shelling out your money, to ensure that it makes sense in your particular situation.