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Solar Power
The earth receives a virtually limitless amount of clean, renewable energy from the sun. The more we understand about solar power, the better we can make informed decisions about related policies, practices and products. This section is intended to inform and enlighten you on the what, why and how of photovoltaic energy.
Benefits of Solar Power
In one hour, the earth receives more energy from the sun than its inhabitants currently use in an entire year. With the use of photovoltaics (PV), this energy can be converted into electricity. As the technology improves and becomes more cost-effective for a wider range of energy generation applications, PV will become an essential component among the world's renewable energy sources. Among the many benefits of solar energy are the following:
- Non-Polluting: The use of PV to generate electricity releases zero emissions into the atmosphere. Many of the traditional forms of electrical generation release carbon dioxide, nitrogen oxide, sulfur dioxide and mercury, which are known to contribute to global warming, acid rain and smog.
- Renewable: Solar energy is freely available wherever the sun is shining, and some can even be produced on cloudy days. With a battery backup system, it can be indirectly supplied at night as well. As long as the sun continues to shine, solar energy will be a constantly renewing power source.
- Energy Independence: A well-designed PV system means you only use energy from the grid to supplement what you can generate. With a battery backup system, in the event of a grid outage you will still have electricity in your home. Generating power with PV also mitigates the effect of utility rate hikes.
- Reliable: PV systems are designed to provide power over a long period of time (20 years or more) with little or no maintenance. There is no fuel to add and no moving parts. Because they are so dependable and silent, you may forget they are there -- until you receive your reduced electric bill.
- Low Operating Costs: Once your initial investment is made and the system is installed there are generally no recurring expenses. For years to come you can benefit from clean energy generation and reduce electricity costs.
- Modular: If you find your energy needs increasing, adding more panels to your system is a simple process. Your system can adapt to your growing needs.
How Solar Power Works
There are many different types of solar power applications ranging from a few cells powering a calculator to large utility-grade plants generating megawatts of electricity to power hundreds of homes. Photovoltaic (PV) systems can be configured to suit a wide range of applications. A typical home installation works as follows:
1. Rays of light from the sun strike the solar panels and are absorbed. The panels are made from a special type of silicon that converts solar energy into DC electricity.
2. The DC electricity from the solar panels enters the inverter. The inverter converts it into AC electricity, which is the type used in a typical home.
3. The utility panel in the house receives the AC power from the inverter and distributes it to the loads (e.g., lights, appliances, etc.). If the solar panels are not generating enough electricity to satisfy the house loads (for instance at night), the utility panel will draw additional electricity from the grid.
4. If the solar panels are generating more electricity than is being used in the house, the inverter will convert some of the DC electricity from the panels to the appropriate DC voltage required to charge the batteries.
5. If the batteries are fully charged and the solar panels continue to generate more electricity than is required by the house, the excess is exported to the utility grid.
6. The utility meter measures the electricity flowing in and out, spinning forward and backward as appropriate. You only pay for the difference between the amount of energy used and the amount of energy exported. This is called “net-metering.” (Click here to see if net-metering is allowed in your state.)
7. If power from the grid is not available (such as during a blackout), a battery backup inverter switches over to battery power. Critical loads in the house will continue to have power supplied to them from the batteries, for as long as they are sized to provide it.
Economics of Solar Power
The cost of a photovoltaic (PV) system will vary depending on the system's size, equipment options and labor costs. Generally, the price for a system can be estimated at $8-11/Watt. In other words, a 1-kW (1000-Watt) system would cost between $8,000 and $11,000 to purchase and install. A typical home installation is between 1-6 kW, with newer homes generally increasing the size of their PV capacity.
There are a number of ways to reduce this cost. Many states and even some municipalities offer rebates to encourage more homeowners to go solar. For example, the rebates in New Jersey can reduce the price of a system by as much as 70% depending on the size. Significant rebates are also available to commercial installations.
Additionally, your electric bills will be lower each month if you are creating some of your own electricity. With net metering, excess electricity generated may be sold back to the utility, which would further lower your electricity bills. Having a PV system installed may also make you more conscious of energy conservation and encourage the use of energy-efficient appliances.
Finally, special mortgages are available through some institutions to help people finance adding solar energy to their house. Many states do not include solar systems in the value of the house for calculation of property tax. However, to a prospective home purchaser, a well-designed, well-functioning PV system certainly adds significant value to the home.
For more details on rebates, net metering, grants, loans and other financial incentives available on a federal and a state-by-state basis, please visit www.dsireusa.org.
For more information on Energy Efficient Mortgages, please visit FCIC - Energy Efficient Mortgage Homeowners Guide.
FAQs
If I install a solar system on my house, will I have electricity when the grid goes down?
It depends on what type of system you install. Energy storage (i.e., battery backup) is needed in order to have electricity when both the grid and the sun are down. However, most conventional grid-tied inverters also shut down when primary (grid) power fails, even though solar power may be available.
What is battery backup?
Battery backup means that batteries are included as part of the installed solar system. When solar power is not available, the batteries can still provide electricity. The length of time for which the batteries will continue to provide electricity depends on the load, as well as the size and number of batteries.
What is the difference between grid-tied and off-grid installations?
Grid-tied means that the PV system is installed on a property that has access to the utility grid. In this case, the utility grid will serve as the main backup when solar power is not available. However, many grid-tied customers also enjoy the benefits of having battery backup to ensure electricity is always available, even when the grid goes down.
Off-grid is for properties that do not currently have a connection to the main utility grid. These installations need to have batteries to provide electricity when solar power is not available. They may also install a generator to provide electricity when the batteries run down and solar power is not available.
What is net metering?
Net metering means that your utility meter will actually spin backwards when the solar panels are generating more electricity than you’re using. In these cases, users are selling electricity back to the utility. Most standard meters are capable of facilitating the net metering “transaction” by spinning backwards. With net metering, your overall electric bills will be lower. Click here to see if net-metering is available in your area.
Will I notice the difference between solar power and utility power when I use my appliances?
No. The inverter converts the DC electricity coming from the PV panels to the standard 120-volt AC current in your house today. Your appliances do not know the difference.
Recent Power Outages
Today's centralized electricity grid is a complex and fragile network subject to frequent interruptions and outages. A survey by the Electric Power Research Institute (EPRI) estimates the annual loss in the U.S. from power outages and fluctuations at $100 billion -- 50 cents for every dollar spent on electricity. Photovoltaic systems provide independently generated and environmentally beneficial renewable energy.
