The United States has a long-established culture of immediate gratification. The ping from a social media interaction or quick delivery from Uber Eats provides that nearly instantaneous reward so many seek. Perhaps that is why solar energy has yet to catch the fancy of most Americans. Those heaven-sent rays of sunshine that generate such clean energy can take years to turn a profit, which may be why solar has failed to pick up many residential followers.
Aside from the feel-good monthly emails from the inverter system that tout the equivalent carbon offset of planting a certain number of trees that a solar system has generated during that month, gratification is more delayed—a homeowner who installs a solar energy system might have to wait as long as 12 to 18 years to recognize a savings. While seeing a report showing the offset of planting five trees feels pretty darn good, solar is more like a long-term investment than an instant jackpot.
Solar savings are not going to be fast or obvious. The benefits do, however, begin immediately–reducing carbon footprint through a zero-emission system, excess energy produced that decreases an electric bill, and regular checks for energy sold at auction to electric providers are regular reminders of how a residential solar array is beneficial. The money earned from generating power is known as an SREC–Solar Renewable Energy Credit–and every megawatt hour of solar power generated generates one SREC whereas the power generated daily is measured and credited on the monthly electric bill.
How it works
Imagine a day in late spring. The sun is shining brightly, but it isn’t yet hot enough to turn on the air conditioner. A homeowner’s electricity consumption should be fairly low at this time of year. A look at the meter that registers the solar power will show that the meter is spinning backwards. This means that the solar panels are producing more electricity than the home is using. That energy goes back into the grid and the power company will reimburse the homeowner for its generation. This solar income will be detailed on the monthly electricity bill under net metering.
Keep in mind that depending on the size of a residential photovoltaic solar array–which directly converts sunlight into electricity—most days might not be days in which the meter spins backwards. More days might be break even and even more might show more electricity used than produced. The bigger an array, the more energy produced, the faster savings are realized.
The size of a solar array depends on many factors ranging from cost to available space (south facing is best) to shade cover. Panel and inverter capacity will affect the amount of energy produced as well. Companies that install solar will first send a solar estimator to help determine the roof orientation and shading. The PV panels can be installed rooftop or in a yard. Even before that step, however, it is recommended that a homeowner do everything possible to first to reduce energy consumption by making a home be as energy efficient as possible.
First, do this
Achieving an energy efficient home requires first doing what Geoff Bristow of the Energy Programs Office of the Pennsylvania Department of Environmental Protection says many homeowners view as the “boring part”—buying efficient appliances, LED lighting, looking for opportunities to reduce air leakage and pollution, and improving insulation. After those things have been addressed, a homeowner can look at energy generation options like solar.
A typical solar system has a lifespan of 25-30 years. It loses a bit of efficiency over time—up to 0.5 percent to 1 percent of performance each year–but even a system at the tail end of its life should still generate up to 80 percent of power. One way to look at it: while it could take the first half of the lifetime to pay for the system, the second half will be generating power for free.
Sit back and collect the check
All the terminology, permits, checks, and credits that come with a solar installation can seem overwhelming, but most solar installation companies will handle almost every detail so that all homeowners have to do is cash the check and feel good about doing their part for the environment. Homeowners will want to ensure that the company has trained and certified specialists for installation.
Most companies will apply for required zoning permits and electric utility interconnection approval. They won’t charge annual maintenance expenses, and will also manage the SREC paperwork with the state and energy company. A third party can also track kilowatt hour production and determine the best rates.
Many reasons to go solar
Installing solar can help to increase the property value of a home. Who wouldn’t want to buy a home that is generating some of its own electricity? Rob Altenburg, the Senior Director for energy and climate at PennFuture, says that other solar benefits include reducing emissions to help environment, generating energy to cut personal electric costs, earning dividends from sale of energy generated, and taking advantage of a 26 percent federal Solar Investment Tax Credit.
There’s never been a better time…
Altenburg would like more homeowners to consider solar, but even he has to acknowledge that “pretty much every family in Pennsylvania has immediate needs that are higher priorities than that $10,000 for solar. It’s not that it isn’t cost effective–it is. It’s just that people prioritize things, so even if it makes financial sense in the long run, it doesn’t mean it will be the choice people make in the short run.”
He says that anyone who chooses to install solar will get their money back, “and then some.” In the meantime, choosing solar today is much cheaper than it was 10 to 15 years ago, according to Kerry Campbell of the state’s Energy Programs Office, who added that “the payback is faster, too.” According to a guide on solar energy from the state Public Utility Commission, the cost of solar has dropped about 70 percent since 2009.
Part of the reason payback comes more quickly has to do with the advancement in technology–solar panels have increased from 200-250 watts per panel to 400 watts per panel (read that: making more energy more quickly), and they’re much cheaper today, too. Depending on the size of the array, costs to install range from $6,000-$35,000.
No space, no property, no problem
Community and state planners, not to mention President Biden, would like to make solar a more attractive and viable option for everyone–that also includes renters. This could be achieved through community solar programs like those being proposed in a bill currently in the Pennsylvania legislature. According to Altenburg, the bill would create the opportunity for solar companies to install arrays within a community that they would then allow residents to lease or buy shares of, offering solar access to renters or homeowners who don’t have good spaces for their own solar arrays.
Every Pennsylvania resident currently has the option to get their electric through a green energy provider. Through PA Powerswitch, residents can choose a company that generates power with renewable energy sources like solar, so even if you’re not ready to make the full-blown investment, you can make small changes to help make an environmental difference.
