Environmental Commission
Solar Panels on My Roof The Right Thing To Do
By Andy Cozzi,
member of the FranklinTownship Environmental Commission
I have imagined a solar electric system powering my home for a long time. I always expected it would be cost prohibitive or impractical to install for one reason or another. But I found that solar was practical, as well as a good investment and a hedge against likely rising energy costs.
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The basic principles of photovoltaic solar in general are simple. When the sun shines onto the panels on my roof, the panels transform the sunlight into DC electricity (the type in your flashlight or car battery). This electricity is carried down to an electrical inverter that changes it into AC electricity commonly used throughout my home. During the day, the system produces electric power. Any extra not used when we are at work or the kids are at school is fed into the utility grid. On the way out, the extra electricity actually spins our electric meter backwards, creating a virtual "credit". When the sun is down and the system is not producing any electricity, most or all of this credit is drawn back by regular use in the home. This net metering is what makes the system so practical. It requires no storage of power through batteries but rather becomes part of a larger system. This is especially helpful in the summer months when the solar system is producing the most and demand for air conditioning is at its highest. (If you wanted to use the electricity a solar system produces during a power outage, you would need to also own a battery system to store the electricity you produce, drawing from your batteries when the grid goes down.)
The capital cost of the system has been made more affordable through rebates from the New Jersey Board of Public Utilities (BPU) and a New Jersey Clean Energy Rebate Program. In 2005, the capital cost rebate for my system was about 70% of the total. It is estimated the remaining 30% of the system cost will be paid back to me in less than seven years at today's energy costs. This State rebate may have changed in 2006, but the Federal "residential energy efficient property credit" may make up any reduction in rebates for converting your home to solar energy for 2006 and 2007.
The total cost of a system primarily depends on its size. At a cost of $7.55 per watt the cost of a 3,500 kW system would be out $26,424. With rebates close to $18,497 the out of pocket costs are under $8,000. Return on that investment (ROI) is dependant on the rising cost of electricity. My return was calculated as 14.27%. That sure beats a savings account these days.
Financial payback comes in two forms. The first is the actual energy my solar system should produce, estimated for my home at 7,457 KWh of electricity per year, and PSE&G said my average annual usage was 10,227 KWh for the year.
The other portion of the payback is S-REC credits that are brokered as a commodity back to the utility companies who need to purchase renewable energy credits. These credits are reportedly averaging 17¢ per KWh or $170 per 1,000 KW unit. My system's size is 6.3 KW and the credits may earn me another $1,020 for the year. The bonus is that the system continues to produce electricity after it is paid off completely with a 25-year warranty on the roof panels and 5-year warranty on the inverter.
Investing in solar and other renewable resources is the right thing to do for our local and global community.
Our children benefit if we all step up and do the right thing by investing in alternative energy. As a member of the Franklin Township Environmental Commission, it was my time to do the right thing. I hope you will join me.
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