A Solar Energy Panel Odyssey
 | Desert Observer's Page Palm Springs, CA. In June I attended a "Go Solar" information seminar sponsored by Southern California Edison. The session convinced me solar energy systems can be a worthwhile investment. They offset electricity usage charges and as energy costs continue to rise a residential solar energy system should prove to be an even better investment. After learning that solar energy systems are permitted in my homeowner community, I decided to investigate having one installed. |
My path down the solar energy road included taking an online Home Energy Efficiency Survey, gathering energy usage data and reviewing four system installation proposals. Electricity usage in my home last year amounted to 12,476 kilowatt hours (kWh) and my plan was for solar energy to replace up to 75% of that need. I soon learned a 4-kWh system, capable of producing 8,030 kWh annually, approximating 64% of my usage, would be the most cost effective, for it would allow me to avoid an electric panel upgrade. That 8,030 kWh estimate is based on Orange County averages and it's possible the Palm Springs desert location, with more annual sunlight, may provide a higher rate of energy production. The "Go Solar" presentation estimated average retail costs for a 4-kWh system at $34,000. Average cost estimates for other configurations are $17,000 for 2-kWh, $51,000 for 6-kWh, $68,000 for 8-kWh, and $85,000 for 10-kWh systems.
The entire solar energy issue is not a layman-friendly topic. Much of the literature, including sales brochures and information on the Internet, is filled with terminology unique to the fields of solar energy and electricity production. I searched in vain for product reviews, unbiased recommendations and useful information on which to base a choice of solar panels and installation contractors. The field is relatively new, the base of interested users not terribly large and the upfront costs almost prohibitive. I assume those factors may be why none of the consumer ratings groups have performed studies and published recommendations. Without such information, the non-technical layman is at the mercy of all who claim expertise and choices are probably often based on sales presentations, rather than facts.
The biggest cost item in a solar package and the most important components are the solar panels. Their wattage and size determine the number of panels needed for a particular installation. Panels are marketed by many companies including Akeena Solar, BP Solar, Evergreen Solar, GE Energy, ICP Solar, Kaneka, Kyocera, Mitsubishi, Sanyo, Shott Solar, Sharp, Sunpower, Suntech, and Uni-Solar. A mandatory 25 year warranty is required for panels sold in California. My research failed to disclose information that would point to one particular panel as better or more suited to the desert than others. That doesn't mean that differences and suitability don't exist, but only that published data supporting such conclusions isn't available in the public domain. Therefore no basis was found that would support an assumption one product is necessarily superior to another.
The "Go Solar" seminar handouts included a listing of registered installers in the desert area. I selected three installers from among the 79 listed and a fourth, though not listed, was recommended to me. I met with installer representatives in my home where all examined the electrical panel and two inspected the roof (the others relied on satellite photos). Their presentations were fairly similar for each recommended one or more solar panel products, extolled the advantages of preferred selections and options, touted their installation record and mentioned the length of time their company has been in business. I was surprised to learn none appear to have performed follow-up studies of installed residential solar energy systems in this area. When I mentioned the "Go Solar" Orange County energy production estimates and asked about similar information for the desert area, there were no helpful responses. It was also surprising to learn none had testimonials to offer or usage information from installed residential locations in this or similar areas. If any had provided actual energy production data from comparable desert residential systems, it would have greatly buttressed their presentations. Without some evidence of local customer experience and data supporting energy generation results from installed residential systems, I found it difficult to give full credit to individual presentations.
I was unable to substantiate the system energy generation claims made by the representatives. One reported their system would produce 7,635 kWh of energy output per year. Another said 6,232 kWh, another 8,000 kWh and another claimed 7,204 kWh. None of the estimates were supported by independently verifiable data (though such may exist in company files) and only one of the production estimates appears in a sample purchase contract. I concluded energy production claims may be based more on opinion than fact. So, individual representations of energy wattage output do not appear to qualify as a reason for deciding which installation package to select.
Other than solar panel manufacturer, energy wattage estimates, and the actual system price, there wasn't much difference of significance between the proposals. One firm plans to float the panels on the rooftop while others will anchor them with bolts attached to roof beams. One includes an Optional Remote Monitoring System with five years of web-based monitoring, while others offer the system, without monitor service, as an option. (Note: I was informed the information available from a remote monitoring system is also viewable on the control unit near the electrical panel). All solar energy installations are subject to state and local government requirements that, in addition to the 25 year solar panel warranty, include 10 year warranties on other components and on labor, panel setback from roof edges, contractor licensing and provisions for local code enforcement inspections. All contractors promised to handle permits and rebate paperwork, but none offered deferred, interest-free or otherwise enticing financing options. So there appears to be nothing in an "other" category that would support the selection of a particular installer.
Since there are no reviews or ratings for contractors, panels or other components and no applicable customer testimonials or actual usage data based on local experience were made available, I've concluded the presentation packages are essentially comparable. It's entirely possible one panel would work better in this area than another, and that large installations might benefit from one product over another, but a layman would not be qualified to make such judgments. One company has a rather slick marketing package that includes a discount coupon, cash for referrals, subsidies for hosting a solar party, a promise to "...plant trees on your behalf" and a requirement that a sign be permitted on the property for 3 months after installation. Those in a position to benefit from such offerings would certainly see their net cost decrease each time they successfully participate in the referral marketing program. Setting such marketing innovations aside, the four installation proposals appeared essentially similar and the only significant difference was the price.
Solar energy systems are expensive and arrangements must be made to pay the full price once installation is complete. Afterwards, the bottom line cost will eventually be reduced by a State of California Solar Initiative EPBB (Expected Performance-Based Buydown) rebate and a 30% Federal Income Tax credit. A minor note: one contract proposal incorrectly computed the Federal credit on the original purchase price instead of the adjusted price after deducting the EPBB rebate. I had to add the $2,380 difference to their bottom line presentation in order to achieve a more accurate final cost estimate. The current EPBB Rebates are based on $1.90 per system Watt; however, the calculation must be more complex for the estimates provided differed in each proposal, ranging from $6,348.18 to $7,600. One proposal noted the EPBB rebate would be accepted as the final contract payment but it too noted the amount listed was an estimate.
The $34,000 average retail price estimate for a 4-kWh system provided during the "Go Solar" seminar proved high for the quotes I received ranged from $28,000 to $33,620. Each proposal also included a probable net cost of the system after deductions for estimated rebate amounts. The "Go Solar" seminar reported the average after rebates approximate net cost at $17,850. The ones I received ranged from $14,380 to $18,277. Since all installation proposal references to net costs turned out to be unverifiable estimates, the full system price appears to be the appropriate amount to use for comparison purposes. In making my decision which installation proposal to accept, I found no appropriate, significant or determining factor, other than full price, to use as a basis in choosing the contractor. Accordingly I selected the one offering the lowest price.
After the system is installed and connected to Edison's grid, the cycle of monthly electricity bills will end. Instead, a bi-directional meter will measure electricity flowing into and out of my residence (when the system produces excess energy it flows into the grid and the meter runs backward). Edison will send monthly reports of energy produced and used, but actual billing will occur once a year on the system's anniversary date. At that time I'll be required to pay for any electricity that was supplied by Edison. Currently, if I use less energy than my system produces, that credit is lost on the anniversary date for there is no provision requiring Edison to pay for excess energy received from installed solar energy systems.
A year from now I expect to be able to assess the performance of my Solar Energy System based on actual electricity production statistics and usage data. At that time I'll revisit this report and possibly publish an update based on the new information. That's when the truth will be known about system performance, how long it will take to recover my initial outlay and perhaps then will be able to better forecast when I'll start raking in that promised extra cash.
Bond Shands
Palm Springs
One of the great things about solar energy is that we are only at the beginning of it's era. I am very optimistic that we'll be able to make full use of it in few decades. I can't help being surprised that some of us are still unaware of these perspectives.
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