Sunbeams to dollars?

[jackb]

We are seeing more and more solar power installations in our area, which is surprising as New York is not exactly the sunshine state. Still, it must be financially attrative for the company doing the installs. Our new neighbor told me the company knocked on his door and offered to install panels at no charge at all. He signed a 25 year lease, with a buyout option after five years. He said his monthy lease was considerably less than he was paying the local utility for power. The company only approaches south facing houses with their offer, which leaves us out of the equation. Farms seem to be taking advantage of the solar offer, with large installations, including placing panels on the roofs of barns and out buildings. I read that the local utility is considering getting into this also, which should be interesting, kind of an if you can't beat them join them approach.
jackb

 

[Smart Red]

In New York, huh? I think we get about the same sunlight, perhaps a bit more. No one has stopped at my house offering solar energy. I guess I should stay at home just in case. I would love it if solar was an effective way to get off the power grid here in south-est, central-est Wisconsin.

 

[jackb]

Even our town office buildings have had them installed to save taxpayer's dollars, which I am sure they will spend on something else.

 

[bobm]

A word of caution .... unless things changed more recently.... I found that the mathematical cost of the solar panels and other equipment, even with offered rebates when amortized vs. the cost of local power is 7 years then ones' solar power cost will drop. At the same time frame the solar panel cells start to degrade and produce less and less power starting after the first year or two after original installation and start to loose their effeciveness to produce electricity so the average effective life span is 7 years. So ...

 

[jackb]

Interesting observation. I will have to ask the guy if there is an escalation clause in the lease he signed.

 

[jackb]

Hmmm, from engineering.com:

"Photovoltaic (PV) modules typically come with 20 year warranties that guarantee that the panels will produce at least 80% of the rated power after 20 years of use. The general rule of thumb is that panels will degrade by about 1% each year. Is that rule accurate?


Degradation Rates
The National Renewable Energy Laboratory (NREL) performed a meta-analysis of studies that examined the long term degradation rates of various PV panels. They found that the 1% per year rule was somewhat pessimistic for panels made prior to the year 2000, and today’s panels, with better technology and improved manufacturing techniques, have even more stamina than their predecessors. For monocrystalline silicon, the most commonly used panel for commercial and residential PV, the degradation rate is less than 0.5% for panels made before 2000, and less than 0.4% for panels made after 2000. That means that a panel manufactured today should produce 92% of its original power after 20 years, quite a bit higher than the 80% estimated by the 1% rule.

 

[bobm]

Hmmm, from engineering.com:

"Photovoltaic (PV) modules typically come with 20 year warranties that guarantee that the panels will produce at least 80% of the rated power after 20 years of use. The general rule of thumb is that panels will degrade by about 1% each year. Is that rule accurate?


Degradation Rates
The National Renewable Energy Laboratory (NREL) performed a meta-analysis of studies that examined the long term degradation rates of various PV panels. They found that the 1% per year rule was somewhat pessimistic for panels made prior to the year 2000, and today’s panels, with better technology and improved manufacturing techniques, have even more stamina than their predecessors. For monocrystalline silicon, the most commonly used panel for commercial and residential PV, the degradation rate is less than 0.5% for panels made before 2000, and less than 0.4% for panels made after 2000. That means that a panel manufactured today should produce 92% of its original power after 20 years, quite a bit higher than the 80% estimated by the 1% rule.

 

[bobm]

Hmmm, from engineering.com:

"Photovoltaic (PV) modules typically come with 20 year warranties that guarantee that the panels will produce at least 80% of the rated power after 20 years of use. The general rule of thumb is that panels will degrade by about 1% each year. Is that rule accurate?


Degradation Rates
The National Renewable Energy Laboratory (NREL) performed a meta-analysis of studies that examined the long term degradation rates of various PV panels. They found that the 1% per year rule was somewhat pessimistic for panels made prior to the year 2000, and today’s panels, with better technology and improved manufacturing techniques, have even more stamina than their predecessors. For monocrystalline silicon, the most commonly used panel for commercial and residential PV, the degradation rate is less than 0.5% for panels made before 2000, and less than 0.4% for panels made after 2000. That means that a panel manufactured today should produce 92% of its original power after 20 years, quite a bit higher than the 80% estimated by the 1% rule.

Very interesting Jackb ... a couple years ago I too was contacted by a solar company to install the solar panels. Using the price quotes from the salesman and using his solar panel company's solar panel data sheets , then checking with PGE ( solar panel production would be tied into the PGE power grid and buy all of the extra power that may be produced ) power representatives fact data sheets regarding solar panel amortization, electricity output , degradation of panel production , life expectancy of the panels, etc. , then comparing the electricity costs from PGE the break even point was about 7 years then at that point the solar panels couldn't produce enough power to be economical and would have to be replaced for peak efficiency. Hmmm ! I now wonder if the salesman was trying to peddle "old technology" out of date solar panels to suckers and I just happen to contact PGE to confirm costs. Needless to say, I didn't buy his system.

 

[jackb]

The farm in the photo is a large dairy operation and our Town Offices have had them installed. I would hope that all financial and legal aspects of the contract were explored by both before they signed on the dotted line. Like I wrote, there are some very large installations for farms and business going forward locally.