Elon Musk, the visionary founder of PayPal, Tesla, and SpaceX, made news again this spring when he unveiled a suite of solar batteries for homes, businesses, and utilities. The batteries, manufactured and sold by Tesla, are sleek, lithium-ion batteries that can capture and store up to 10 kWh of energy from renewable energy sources like wind and solar. Designed to be mounted on a wall in the garage or on an outside wall, the “Powerwall” batteries measure 1.3m by 68 cm and up to eight batteries can be “stacked” in a single. The solar batteries represent one of the first big steps towards large-scale solar storage, and Musk’s announcement garnered a lot of support and enthusiasm from the solar industry. Coming on the heels of his spring announcement, two recent reports emphasize the potential for solar + storage and how solar storage can be an energy game-changer.
The first report, released at the beginning of October by the Clean Energy Group, highlights the potential of solar+storage systems to increase the resiliency of energy generation in the U.S., especially during natural disasters like superstorm Sandy. The project investigated whether it is economical to install solar+storage technologies in multifamily affordable housing complexes in three U.S. cities.
Overall, the Clean Energy Group found that solar+storage is an economical solution for low-income housing that would also introduce a resilient energy supply with no net cost over the lifetime of a project. Solar+storage can reduce operating costs in large apartment buildings, and battery use in combination with solar systems can achieve similar operating-cost savings as those from stand-alone PV systems. As an added benefit, the solar+storage option would not require any change in resident behavior. The payback for investment in solar+storage systems can be as short as a few years; helping bring solar energy to lower-class communities that, until now, have largely been shut out of solar power opportunities.
The second report, released last week by the Climate Council, a nonprofit research group, indicates that going “off-grid” with solar+storage systems could potentially be cheaper than staying on the grid by 2018 in Australia. The report, which focused on Australia, suggests that the new solar storage technology, combined with the abundant sunlight on the continent, could make Australia the world’s largest solar market. Of course, that reality is dependent on battery prices continuing to fall and electricity remaining expensive, but the main takeaway is that off-grid, energy independent solutions are available much sooner than many have expected.
The revelation that a major industrialized nation could potentially transition half of its population to solar in the next couple of decades has been met with great excitement. Although a comparison of the solar market in Australia to the U.S. is not an apples to apples comparison, these findings allude to a looming energy revolution that utilizes solar+storage systems to take thousands of homes off the electrical grid. In addition to driving our society towards a cleaner energy economy, solar+storage systems would also help reduce the demand on the grid that is currently straining many energy utilities.
Tesla’s Powerwalls are not commercially available yet. We look forward to hearing more about when they will be released onto the market and made available for us and other Colorado solar companies to install.
The owner of
Golden Solar reserved a Powerwall for himself directly from Tesla many months ago. But there has been no word on when he can get one.
From what we have seen on spec sheets, they are high voltage batteries not compatible with currently available existing off-grid and battery back-up inverters. So we expect Tesla or other manufacturers will provide the new inverter technology needed to work with the Powerwall.
All things considered, the new storage technologies appear to hold immense promise for the future of
solar energy.
With the world’s energy crisis becoming increasingly widely-discussed, scientists, investors and innovators are rapidly developing ways to utilize and improve existing methods of generating renewable energy. While wind power is one of the most promising in terms of large scale implementation, solar power is among the easiest and most inexpensive to utilize on the local level. Even private individuals and small companies are relying more heavily on electricity generated by solar power systems. Furthermore, as the reliance on these technologies increases, so does the need for efficient solar power systems. Gone are the days of solar power being an experimental source of energy strictly for conservation enthusiasts. It is now a viable and efficient means of generating power, not to mention the fact that it may be key to saving the planet.
One of the most critical advancements in solar power is the ability to store it for longer periods of time without losing energy. According to
Popular Mechanics, fuel cells to convert solar power back into stored chemical energy are in development and may be the key to storing large amounts of solar power effectively. This would solve the problem of how to keep energy generated from
solar panels around for long periods of time, efficiently and inexpensively. As of right now, traditional batteries are still used. These can store the energy, but they are somewhat costly and inefficient. In fact, today energy storage systems are the most costly aspect of implementing a solar power system. The panels themselves have gotten far more affordable, without an effective storage method to accompany them.
Another advancement that is in the works for solar power systems is a way to increase the efficiency of the panels themselves. If more energy could be generated per panel, more energy will be stored, which will put us one step closer to ending the world’s fossil fuel dependence and solving the energy crisis as a whole. According to Phys.org, there may just be a way to do this, and the solution is quite simple. By installing reflectors around all solar panels, light is able to bounce back into the panels, instead of being wasted. By implementing such a simple concept, the efficiency of every
solar panel farm in the world could be improved dramatically.
The Intermountain Rural Electric Association (IREA), Colorado’s largest rural energy co-op, recently announced that they will institute a new charge for residential customers using solar panels on their homes. The co-op serves about 145,000 customers spread across parts of Adams, Arapahoe, Douglas, Elbert, and Park counties, which accounts for a large swath of the Denver metropolitan area. The new charge is described as a form of demand charge and has significant implications for
solar panel customers within the service area.
So, what exactly is this new charge? IREA describes it as a “Load Factor Adjustment (LFA)”, which is similar to demand charges that are commonly used with large users of electricity. Demand charges are often applied to large users of electricity, which mostly include commercial and industrial interests. Because these entities sometimes require additional energy for their operations, the electric utility must maintain the capacity to provide electricity to them at all times. Often, this requires the utility to maintain capacity above the base demand, which necessitates additional infrastructure and maintenance. Demand charges allow the utility to share the costs of this infrastructure with the companies that require the additional capacity.
The recently adopted LFA is designed to apply the principle of a demand charge to solar customers. Utilities across the country have been struggling to cover the costs of service as solar power gains popularity.
Solar power customers usually have a low average power usage because the solar array is able to generate a large proportion of the home’s energy. However, when the panels are not producing sufficient electricity the homes require power from the grid. When this happens, usage levels spike nine or 10 times above their average levels. This spike can severely strain the utility’s infrastructure. The new LFA is designed to help cover the stand-by capacity the utility needs to meet peak power demand for its customers.
Unfortunately, many in the solar industry feel that the new charge is overly confusing and will limit the adoption of new solar systems beyond the end of the year. Because the LFA is a demand-based rate, it will be much more difficult for solar installers to accurately estimate cost savings for solar customers. Because the cost savings from solar are a major selling point for new customers, some industry experts believe the difficulty in describing the savings will negatively affect sales of solar panels in IREA’s service area.
The new charge is believed to be the first of its kind in the country and will be effective beginning on December 31, 2015. The charge could add between $20 and $24 to the monthly utility bill for IREA’s solar customers. IREA currently has about 650 solar customers, about two percent of the total customer base, but projections anticipate the number of solar systems to approach 1,000 by the end of 2015. The charge will apply to all new residential customers, but will mostly affect those who install solar panels after December 31.
The LFA is intended to help cover the costs of supplying electricity to solar customers at night, but is being interpreted by some as anti-solar. It will be interesting to see how the new charge affects new installations and if similar charges are adopted by other utilities both in Colorado and around the country.
Reducing monthly bills is one of the most important things on a homeowner’s to-do list. Instead of paying for electricity from a local power company every month, a homeowner can have solar panels installed to provide electricity to their home. These
solar panels will absorb energy from the sun and convert it into electricity that can be used to power everything in a home, including the hot water heater. Who wants to continue paying for electricity when they can generate their own with solar panels? There are many benefits to installing a solar power system on your property.
Common Misconceptions About Solar Systems
Some homeowners think that they can’t have a solar system installed on their home because of how their roof is designed, but the panels don’t necessarily need to be installed on the top of a home. They can be placed in the yard or anywhere on the property that gets plenty of direct sunlight during the day. Solar panels can even be moved from home to home if you decides to move in the future.
It’s common for a homeowner to avoid using solar power because of the price of the system. However, most solar power companies offer financing options for those who qualify. Making a monthly payment on the
solar panels is better in the eyes of most homeowners because they are working towards a goal. Once they finish paying for the panels, they will own them and never have to pay for electricity again.
The Installation Process
Installing solar panels installed is a fairly simple task that can be completed in a day or two, depending on the number of panels. An installation company consults with the homeowner to find the best spot to install the panels. They will need to place them on a stand if they are going in the yard, otherwise they can fasten them securely to the roof. A professional installation service will be able to install them properly.
Other Benefits Of Solar Panels
Homeowners with solar power systems are eligible for a tax credit when they file their tax returns at the end of the year. These extra savings can help reduce the amount of money someone owes to the IRS. In addition to the financial savings, installing solar panels will reduce the CO2 emissions a home normally gives off. Switching to solar panels is much better for the environment, which has become a huge concern in the recent years. Homes using solar power are similar to electric cars- reducing our use of fossil fuels results in less pollution in the atmosphere.
There are many reasons to take advantage of a solar system for your home. Decreased CO2 emissions, tax credits, a reduced electricity bill and so many more positive things result from using solar power. Take advantage of companies that install solar panels to make your home energy-efficient and cheaper to run.
The US Department of Energy created a program named “Sunshot” to reduce photovoltaic (PV) installation costs to $1 per watt. Their goal is to lower the installation cost before consumers receive tax credits and utility incentives, which greatly offset the final cost and make solar power systems more affordable. There is still the problem of how to store electricity that is generated from
solar panels. Storage is the “holy grail” for renewable energy. The Colorado PV system owners can get the full benefit of electivity sent back to the grid during sunny hours through net metering. Net metering is an electricity policy that allows utility customers to self produce renewable energy to offset some or all of their energy costs. The electricity meter spins forward when electrify is being used at a higher rate than it is generated. It spins backward when electricity is being sent back to the grid. In essence, if you use less electricity than you generate, you can greatly reduce the cost of your electric bill monthly.
In the 1980’s, costs were about $100 per watt for PV. Costs are currently between $2-4 per watt depending on the size, site conditions and materials used. This made a decrease in the installation price of approximately 95 percent. Panel costs have dropped so that they are only about 1/3 to 1/4 of the installation cost. The rest of the cost is for inverters, racking, labor, wire and paperwork costs such as the city and county permits required and utility company requirements for interconnection to homes and businesses. Solar installers are working diligently to reduce all costs from every area.
Solar panel manufacturers are losing money or barely profitable at current market prices for solar panels, so the panel costs will likely not drop much in the short term.
From my perspective, the goal of $1/watt is inspiring, but even if the panels were free at this time, we would not be able to install them for $1/watt. Solar installation costs should drop slowly by a few percent per year while the move to solar energy increases.
The National Community Solar Partnership was created by the Office of Energy Efficiency & Renewable Energy. The mission of the partnership is to expand solar access to new demographic and geographic markets and increase deployment in low and moderate income communities. The partnership was created and announced on July 7, 2015 in a White House fact sheet. Colorado is an active partnership member in this project. At the moment, some communities cannot delve into the solar power industry. This includes people who rent homes or apartments. Buildings with little roof space cannot produce enough green energy through solar power to support the amount of residents, such as in the case of apartments and high-rise buildings. The partnership is actively working on storage methods to make the power available to these electrical customers. They are investigating on- or off-site shared solar to provide power to all markets. The PV market should increase from 5.5 to 11 percent by the year of 2020 according to their estimates.
In the interim period, most Xcel incentives are almost gone, but United Power incentives are the best in the Denver Metro area at 10 cents per watt. IREA has no incentives and is determining how to reduce net metering credits as well. Highline Electric association in northeastern Colorado has the best incentive for solar energy at $2 per watt with a maximum cap at $6,000 or 3 KW, for residential systems and up to $20,000 or 10 KW for commercial systems.