Alternative Energies
See other Alternative Energies Articles
Title: Rooftop solar is now cheaper than the grid in 42 American cities
Source:
Utility Dive
URL Source: http://www.utilitydive.com/news/roo ... -in-42-american-cities/352799/
Published: Jan 14, 2015
Author: Herman K. Trabish
Post Date: 2015-01-26 11:05:24 by Willie Green
Keywords: electricity, solar
Views: 2494
Comments: 6
Escalating utility rates lose out to solar’s fixed price
New numbers show solar-generated electricity is ready for head-on competition with utility-delivered electricity.
Nearly 21 million single-family homeowners in 42 of the 50 biggest U.S. cities can now expect to pay less for electricity from solar than for electricity they buy from their utility. In fact, the numbers show money spent on a residential solar system earns a better return than investing in Standard and Poor’s 500 index fund.
“Solar is now not just an option for the rich, but a real opportunity for anyone looking to take greater control over their monthly utility bills and make a long-term, relatively low-risk investment,” explains "Going Solar in America: Ranking Solar’s Value to Consumers in America’s Largest Cities," a new study from the North Carolina Clean Energy Technology Center.
The information gap
To breach the “clear information gap” between the popular presumption that solar energy is an expensive indulgence and the new reality that it is a competitively priced source of electricity, the paper uses a range of National Renewable Energy Laboratory (NREL) System Advisor Model (SAM) parameters and other factors to calculate rankings. The list for the top 50 solar cities was based on:
- First-year average monthly savings
- Net present value (NPV) relative to a 25 year investment in the S&P 500 stock index
- Levelized cost of electricity (LCOE) compared to the cost of electricity from the local utility
“We decided to use first year savings because NREL research shows customers tend to be more responsive to something that gives them greater benefits more quickly,” explained Senior Policy Analyst and report co-author Jim Kennerly.
Solar’s NPV was calculated for a 5 kilowatt system purchased with a 25-year, 5% loan and compared to an S&P 500 index with assumed SAM default parameters of a 6.61% annualized and dividend reinvested discount rate. It assumed a 2.7% inflation rate.
Kilowatt-hours from that same system now cost less than those from a residential customer’s local utility. “Of the single-family homeowners in America’s 50 largest cities,” according to the report, “9.1 million already live in a city where solar costs less than their current utility [retail] rates if they bought a PV system outright – and nearly 21 million (93% of all estimated single-family homeowners [that are customers of the utilities that serve] those cities) do if low-cost financing is available.”
Poster Comment:
Another reason we don't need Keystone XL, fracking and dirty coal. (1 image)
Post Comment Private Reply Ignore Thread
Top • Page Up • Full Thread • Page Down • Bottom/Latest
Solar technology will continue to advance. Better solar cells are on the way that are much more powerful and efficient. Same with electric car battery technology. I believe politicians and bureaucrats suck, but I still believe in the advancement of science and technology. Like Francis Bacon, I believe those advancements are here for mankind's benefit.
#2. To: Willie Green (#0)
Interesting!
Willie, what is the average life span of a solar system? Once installed, what is the first component most likely to need to be replaced? I realize there is not likely one size fits all system. Just curious what the weakest link is in such a system.
I live in a rural area, but like the idea of a system off the grid, a one time investment, and then go xxx years and no bills! Also would be nice to not have to worry about downed lines, broke poles, blown out transformers, power generator malfunctions, etc.
Thanks for the reply in advance! Much appreciated!
Si vis pacem, para bellum
#3. To: Willie Green (#0)
New numbers show solar-generated electricity is ready for head-on competition with utility-delivered electricity.
I owned an alternative energy business in Maine before I retired in 2006, I find it hard to believe that with the cost of battery's, inverters, and maintenance that solar is cost effective. 6 volt T-40's the industry base standard for battery's are now over $110 each dealer cost, that means $200+ delivered and installed, without cables.
#4. To: Stoner (#2)
Willie, what is the average life span of a solar system? Once installed, what is the first component most likely to need to be replaced? I realize there is not likely one size fits all system. Just curious what the weakest link is in such a system.
Batteries, batteries and more batteries.
The batteries need semi annual work, the generator needs annual work, the solar panels need to be checked after every big storm like the one coming your way tonight.
In Maine there is no way solar is going to save you anything.
#5. To: Willie Green, Stoner (#0) (Edited)
Here is proof that I was in the alternative industry business, www.christianpatriot.com/inverters.htm
Most of the pictures are long gone, but I have never gone and taken it all down. The prices may even still be up.
Stoner, I may have a used 2800 watt Whistler inverter and a half dozen T-40 batteries for sale with cables when I get home in May, I haven't heard anything about them being sold and can check for you, if you would like.
#6. To: Willie Green (#0)
Rooftop solar is now cheaper than the grid in 42 American cities
It is until the birds crap all over it.
Top • Page Up • Full Thread • Page Down • Bottom/Latest
[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]