5 Common Myths About Solar PV Power
Since this is my first post for ChicagoREgen, I will take a moment to introduce myself. I’m Dan Kuthy, President of PVPower, a local Chicago solar PV components, technology and services provider. A few weeks ago, ChicagoREgen asked me to be a contributing blogger and I couldn’t be more enthusiastic about getting involved. I’ll admit, I haven’t been in the solar industry for long but I’ve spent countless hours learning the ins and outs of solar PV and the renewable generation market and I’m looking forward to sharing my perspective with the ChicagoREgen community. I’m a real, active member of Chicago’s entrepreneurial community and if you want to get in touch with me, feel free to send me an email at dan.kuthy@pvpower.com.
Since this is my first post, let me go ahead and take a moment to demystify solar and dispel some of the most common myths I hear about solar PV.
The 5 Most-Common Solar Power Myths
1. There isn’t enough sun in Chicago to make solar power feasible
This just isn’t true. It only takes a quick glance at a solar radiation map to see that Chicago has nearly the same amount of average sunlight per day as Miami. Germany is the most progressive country in the world in terms of solar adoption and they have considerably less sun than Chicago (see below – remember that the map of Germany is measuring kWh per square meter per year, rather than per day). On average, Chicago can produce 4-5 kWh per square meter of collector per day (see below). What does that mean? That means your Chicago solar installation is, on average, producing 4-5kWh of electricity per square meter of roof space per day, a total of 1460-1825 kWh per year per square meter. Germany averages between 800 and 1400 kWh of solar output per year. These numbers aren’t perfect but they give us a pretty clear comparison.
2. If I just wait for it, one day, installing a solar power system will drop radically in cost
No, solar systems aren’t like iPods. By waiting 6 months, you’re not going to experience dramatic reductions in the cost of solar technology. Most industry experts and scientists agree that the cost of installing solar energy systems will continue to decline gradually year-over-year and we won’t see any dramatic revolutions in solar technology. Remember, solar isn’t new; we’ve been harnessing the sun to create electricity for decades.
3. I can install a solar energy system myself and save money
I wouldn’t recommend it. Solar systems are complicated and dangerous to install. They require connection with the electrical grid and a lot of work with DC power. I wouldn’t recommend embracing DIY solar installation unless you’re an experienced electrician and have done your homework.
4. Producing solar power requires batteries for storage
Not true. Batteries are only necessary for off-grid solar systems that aren’t grid-interconnected. The Energy Policy Act of 2005 requires all publicly owned utilities:
‘‘(11) NET METERING.—Each electric utility shall make available upon request net metering service to any electric consumer that the electric utility serves. For purposes of this paragraph, the term ‘net metering service’ means service to an electric consumer under which electric energy generated by that electric consumer from an eligible on-site generating facility and delivered to the local distribution facilities may be used to offset electric energy provided by the electric utility to the electric consumer during the applicable billing period.”
That means that utilities are required to allow you to interconnect with their electrical grids and feed excess energy back into the power grid. When excess electricity is produced, it actually turns your electric meter backwards! If you’re grid-interconnected, you don’t need batteries unless you expect frequent interruption in service.
5. Solar power isn’t cost effective
This one is tough. It isn’t a myth entirely; it’s simply a myth to assume that all solar power systems are money pits. In many circumstances, with the right system and the right incentives, solar systems can be quite profitable. We look at the profitability of a system based on two major types of cost and revenue.
Types of Costs
- Components ~ 80% of an installation
- Permits ~ 5% of an installation
- Installation (Labor) ~ 15% of an installation
- Maintenance & Replacements – I’d plan on approximately 15% of the initial system cost over the life of the system (25 years)
Types of Revenue
- Incentives that Offset Initial Costs (Federal Investment Tax Credit, State Rebates, etc.)
- Incentives that Pay for Production (Renewable Energy Credits, etc.)
- Offset Cost of Electricity ($0.08 – $0.20 / kWh depending on your utility)
As you can see, forecasting the return on a solar power system can be complicated but feel free to contact PVPower at 866-274-0642 or dan.kuthy@pvpower.com if you’re interested in doing an analysis of your home or business. We’re happy to help.
By: Dan Kuthy
Themocracy
Dan,
Good job in dispelling myths. One you failed to mention is the myth of using payback period as the metric for financial performance. This outmoded, almost useless metric actually discourages many from adoping solar.
Please see the above web site for more information on this and a free spreadsheet model that provides the modified internal rate of return (MIRR), a metric that can be compared directly to the APY of a CD, bond or any other alternative investment. The results of running this model will show that in most areas of the country, solar PV is a solid investment.
Thanks for the comment Durward and thanks for sharing the resource.
Dan