Installing Photovoltaic Energy Systems on homes and business rooftops is affordable, due to President Obama’s Stimulus Plan, providing Federal and State incentive to utilize clean renewable energy and rebates offered through local utility companies. There are economic benefits as well as environmental benefits from converting to a solar power system.
The Salt River Project (SRP) and electrical utility company serving cities in the Phoenix area, provides an analysis tool on their website that calculates the size of the solar electric/ photovoltaic system that would be recommended for your home or business based on the power usage. For example,installing a 3.0kW residential PV system, the total net system cost, including installation, after all rebates would be about $7,700.
The environmental benefits of installing a 3.0kW system, using an original power output cost of $150 per month, would realize an annual reduction of the following emissions into the air: 5,300 lbs of CO2, 7.7.76 lbs of NOx and 5.60 lbs of SO2 is reduced.
Below is a table that provides examples of various systems, possible rebates and environmental benefits. The calculations are based on the results from SRP’s solar calculator feature found on their website.
Example of Solar PV Systems Analysis of Costs, Savings and Environmental Benefits
Based on SRP’s Solar Cost Calculator Estimator
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Residential 3.0kW-DC System (original energy cost of $150/month)
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Residential 4.0kW-DC System (orig. monthly energy cost of $300)
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Business
25kW-DC System (orig. monthly electric cost of $2,500)
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Net System Cost
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Avg Installed Price
SRP Incentive:
Fed & State Tax Credits:
Increased Fed Taxes
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$21,000
-$9,000
-4,600
$280
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$28,000
-$12,000
-$5,800
$280
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$175,000
-$70,000
$4,900
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Estimated Final Cost:
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$7680
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$10,480
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$109,900
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Annual Savings & Costs
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Electricity Bill Savings
Loan Payment*
Loan Tax Savings
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$390
($613)
$163
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$520
($837)
$222
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$2,426
($8,774)
$2,329
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Total Savings / Costs
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($60)
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($94)
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($4,019)
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Yearly Environmental Benefits (estimated)
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Electricity production
CO2 Reduction
NOx Reduction
SO2 Reduction
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4,787kWh
5,300lbs
7.76lbs
5.60lbs
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6,382kWh
7,066lbs
10.35lbs
7.47lbs
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39,890kWh
44,165lbs
64.70lbs
46.67lbs
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*Loan amount based on 7% interest rate with a loan life of 30 years.
Source: SRP Solar Cost Calc. 25 March 2009.
While the above data displays that the environment can benefit from PV systems, a macro picture needs to be considered. The longevity of solar panels is about 25 years. After 25 years, these panels will more than likely end up in our landfills. If 25-50% of the rooftops in
Phoenix are covered with solar panels over the next 5-10 years, what will our landfills look like in 30-40 years? First Solar claims they will take back used solar panels after their useful life is over. This is a “cradle to grave” approach, but what about the solar panels that come from China and other companies that do not have a “cradle-to-grave” approach and what happens if First Solar is not in existence 30-50 years from now? It is something to consider. Other issues surrounding the chemicals in the solar panels are of concern as well and more details on the environmental side effects of solar panels can be found in the LA Times article: the Darker Side of Solar. Are we really being truly environmental friendly when we look at the long term, macro picture of this solar technology? This is not to say that solar technology is not healthy for the environment, it does help reduce greenhouse gases, but measures need to be addressed regarding the long term impacts solar technology has on the environment. The use of innovative, sustainable, cleaner technology in the development, design and manufacturing of solar panels may help offset the potential intrusion solar panels can have on the environment 30-50 years from now.
Overall, the rebates and incentives for solar initiatives are abundant, many cost efficient energy saving items should be analyzed first. Energy audits usually focus on solar products because of the enticing rebates and incentives, along with the high paybacks to the installer. Simple and inexpensive means of altering energy usage and function in the home should be considered prior to undertaking expensive solar power systems. For example, increasing the insulating factor of a home can dramatically reduce energy consumption; thereby, reducing gases expelled into the environment.