With electric deregulation coming to Pennsylvania, I’ve been wondering whether solar technology makes sense here. It powers my calculator and trickle charges my boat battery but can it make a positive impact on my annual electric bill along the Main Line?
So what is a solar photovoltaic or PV system?
Simply stated, PV systems convert sunlight to electric current. PV systems that are interconnected to the utility company are often referred to as net-metered. So when net-metered systems are creating a surplus of electricity it can be sold back to the utility company at the full retail rate for each kilowatt-hour produced.
What are the components of a PV system?
Along with a series of photovoltaic panels that are normally mounted on the roof (referred to as an array), the direct current or DC that is produced is routed by wires then combined before entering an inverter that transforms it into alternating current or AC. The alternating current is either used immediately or run into a separate meter spinning it backwards earning a credit from the power provider.
How much alternating current will my Delaware Valley PV system generate?
The amount of electricity that is generated is unique to every installation. Some of the factors include: the tilt of the modules, their orientation in relation to due south, shading from trees and other obstructions, the design wattage of the modules, along with the inverter efficiency and system losses.
Using the PVWATTS program (version 1) of the National Renewable Energy Lab www.nrel.gov/rredc I determined that a 4kW nominal system in Montgomery County PA can be expected to deliver 4775 kWh of alternating current annually or 1193.75 kWh of alternating current for every nominal kW of PV system.
Are there any government programs to help pay for PV?
On July 9, 2008, Pennsylvania Governor Ed Rendell signed into law the Alternative Energy Investment Act which, among other things, will provide $100 million in grants for solar photovoltaic systems and solar water heating systems for homes and small businesses. The legislation also provides $80 million of support for larger solar installations and solar companies.
The residential and small business program will be managed by the Pennsylvania Department of Environmental Protection, which is now working to design the new program. Sources within the Solar Working Group in Harrisburg expect a 35% rebate. The PA DEP has created a webpage for interested people to enter their email addresses for receiving email updates about the status of these new programs. Please visit www.ahs2.dep.state.pa.us/aeifsignup/ to sign up for these program updates.
Included within the Federal Emergency Economic Stabilization Act of 2008 which was signed into law by President Bush on Wednesday October 1, 2008, was some renewable energy legislation. This is great news for individuals interested in solar power. Not only was the 30% commercial solar investment tax credit extended through 2017, but the same tax credit was extended to residential installations also.
Under this new legislation the previous $2,000 cap for residential solar installations is eliminated. This means that starting in January of 2009 the purchase of a residential solar electric system will make you eligible for a tax credit equal to 30% of the cost of your solar system, including installation.
So how long would the payback of my investment take?
Steve Buerkle of SunGlow Solar http://sunglowenergy.com estimated that a roof mounted PV system would cost about $11.00 per nominal watt of power. So a 4kW system would cost $11.00 X 4000 W = $44,000. Assuming a 35% PA rebate and the 30% Federal tax credit:
Installation Cost $44,000.00
Less 35% PA Rebate ($15,400.00)
Sub Total $28,600.00
Less 30% Federal Tax Credit ($8,580.00)
Sub Total $20, 020.00
Annual AC power produced 4775 kWh
Average Annual payback $923.43
Years to payback 23
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