September 6, 2006 12:09pm by Steve | 
I am currently investigating clean power alternatives for my home in Connecticut. With the new home addition we are working on, I was thinking that it might be pretty cool and geeky to add photovoltaic (PV) cells on the roof to generate electricity. The problem is… the savings are just not there.
There are other options for using clean power, but all of them amount to a "donation to the Earth", at least in CT. Switching to clean energy almost always results in a cost rather than a savings. This is unfortunate. And this is even with the amazingly supportive incentives and rebates offered by the State of CT for installing a grid-connected residential power generator.
In CT, we have two distinctly different options for acquiring and using clean power:
1) Install PV cells on your roof and connect them to the power grid. Connecticut offers generous incentives if you want to have such a system installed. If you want to price out your own system, you can use this amazingly detailed calculator (Internet Explorer). The only problem with the calculator is that it asks you to input values for which you have absolutely no guidelines. You just have to guess, unless you are already talking to an approved PV installer.
Here is an example for a system that I was pricing out:
2.5 kW roof-top system on a SouthEast exposure that will meet 17% of my energy needs. Total estimated cost to me is $8,018 ($22,500 before rebates and incentives). The State of CT pays for nearly 2/3 of my system!
With standard assumptions, this system would knock $389/year off of my electricity bill. Even so, if I estimate the life of the system to be 10 years, my net cash flow would be ($4,648). That’s a $4600 donation to the Earth over 10 years. If the life of the system is 20 years, I will actually make my money back starting in the year 2021. So if the system lasts long enough (and operates at the same efficiency), eventually it pays for itself and starts making money.
Do PV systems last 20 years? I have no idea.
2) The second option for using clean power in CT is to enroll in the CT Clean Energy Options program. What you are doing here is voluntarily paying more ($11-25/month) to indicate that you want 100% of your electricity to come from a mix of Wind, Hydro, and Landfill gas. The only problem here is that this "donation" doesn’t mean anything physically. The electricity you receive doesn’t actually change. In theory you are receiving electricity from clean sources, but in reality it is just everyday electricity from the grid.
The net result of enrolling in this program is merely the indication of a economic choice. You are stating that you are willing to pay more for clean energy. Does this actually mean anything? Does it actually influence the future of electricity generation? Who knows? Apparently, about 6000 residents and businesses have signed up for the program, which is slated to run through March 2008. At that time, it will be reevaluated. They only expected 4000 participants, so there is slightly more demand for clean energy than anticipated.
Still though, the bottom line here is that you are donating money to the clean energy cause.
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Steve,
I’d love to be able to do this, but like you, I just can’t afford it. From what I’ve heard, solar technology is improving year over year. Like ANY technology, the early adopters will pay a premium for the prestige, and eventually the rest of us will be able to afford it.
Considering the massive subsidies given to traditional energy companies, I think it’s only right to support renewable energy.
The lowest hanging fruit for energy savings at home are the energy saving light bulbs. They use something like a third of the energy, and last 4 times as long. More expensive, though, right? No. If you go to Costco, you can get a 10-pack of them for < $5.
David
Speaking of energy efficiency, I thought this was interesting:
http://money.cnn.com/magazines/business2/business2_archive/2006/09/01/8384321/index.htm
Steve;
Just wanted to share some thoughts:
You are right in saying that owning a PV system is donating money to the cause. I too have looked into building a system, but just have not had the time and money to actually do it. One way to save money, if you local city ordinances allow it, is to do the work your self. It is actually easier than most people would think. Also, some localities have feed in tariffs; in AZ one of the utility companies actually pays you for any extra energy you system produces, a whole $0.02 /kWh. Of course they sell it right back to you for $0.10 /kWh.
As far as cost is concerned it is going to be high for a while at least until more lobbying convinces the politicians to get off their butts and worry about the environment. However, there is some movement to change the power based incentives to energy based. This is what is being done in Germany and has proven successful. In other words one would get paid for what is put into the grid. So if you spend some