Are small solar systems worth it?

07 Oct.,2024

 

Are Solar Panels Worth It in ? - MarketWatch

Several factors can play a role in whether or not solar panels are worth it for you, including:

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  • The weather and climate where you live
  • Your roof&#;s steepness, shading and size
  • Solar incentives available in your area
  • The amount of energy your household consumes

For instance, if you live in a state that receives a lot of sunlight and has ample solar incentives, in addition to having a large, south-facing roof, you will see high solar energy savings. On the other hand, if you live somewhere with less sunlight, fewer solar incentives and a steep roof, solar may still be worth it but you will likely see lower energy savings.

Location

The location of your home plays a vital role in the value of a solar power system. If you live in a part of the country with lots of sunlight exposure throughout the year, you will get more out of using solar panels than in cloudier locations. The map below displayed the &#;specific photovoltaic power output&#; or &#;PVOUT&#; expected in each state &#; which is the estimated kWh produced per kW of installed solar capacity. The higher the PVOUT the more energy each of your solar panels will produce.

Though sunny states like Florida, Texas, California and Arizona are ideal regions to install a solar system, your panels may not generate enough energy to offset the upfront installation cost if your roof is shaded by trees or buildings. But if your roof is unshaded or faces south, southwest or west, your panels will receive more direct radiation from the sun and generate more solar energy.

Locations that see more extreme weather events and power outages are also better suited for solar systems with battery storage. You can use a solar battery to store excess energy during the day to use during blackouts, at night or on cloudy days.

It is important to note that it is not just sunshine that varies with location. A state&#;s energy prices can also factor into whether solar is worth it for you. High power costs can help you achieve a faster system payback, while lower power costs mean lower solar energy savings. A user on the Bogleheads public forum puts it this way: &#;Solar investment on the grid in California with its high rates can be worth it. In Texas, solar payback is way too long.&#;

Your Home&#;s Roof

The size, shape and slope of your roof are also important factors to consider. According to Garrett Nilsen, the deputy director of the U.S. Department of Energy&#;s Solar Energy Technologies Office, roof structures can be one of the biggest roadblocks to going solar.

&#;If there are trees near your home that create excessive shade on your roof, rooftop panels may not be the most ideal option,&#; he said. &#;Solar panels perform best on south-facing roofs with a slope between 15 and 40 degrees, though other roofs can be suitable, too. Installers can model roofs to determine if the orientation and slope are suitable for energy generation.&#;

Steep roofs make installation challenging and can increase labor costs or require additional mounting equipment. Roofs with plenty of surface area and few obstructions &#; such as skylights and chimneys &#; are ideal. You can still add solar panels to smaller roofs but would benefit from installing efficient panels, such as monocrystalline panels, that generate more power using less space.

Local and Federal Tax Incentives

Solar tax incentives and rebates are available at the federal and state levels. The federal solar tax credit, formally called the Investment Tax Credit (ITC), allows you to claim 30% of your total system cost as a credit to reduce your federal tax burden.

If you don&#;t owe thousands of dollars in taxes each year, you can roll over the remaining credit amount for up to five years. We suggest consulting a tax adviser to determine how to best capitalize on the credit.

Other solar incentives vary from state to state. Many state governments and local utility companies offer solar rebates, credits, and sales and property tax breaks to make solar more affordable. Many states also offer net metering programs to help lower your power bills even more. We encourage you to use the Database of State Incentives for Renewables & Efficiency (DSIRE) to learn what rebates and solar tax credits are available in your state.

Energy Consumption

Before installing solar, it is worth taking stock of your monthly energy consumption. According to the U.S. Energy Information Administration, the average household uses around 893 kilowatt-hours (kWh) of electricity per month. On average, a residential solar setup can produce between 350 kwh to 850 kWh per month. Therefore, going solar can help you save as much as 95% off your utility bill. As a Reddit user shared, &#;Our last bill before getting solar was just under $800. Our next bill was $180.&#;

If you live in a state with high electricity rates, switching to solar will likely be a good investment. However, if your household does not require a high energy consumption to operate day-to-day, you may not save enough to offset the installation system cost. Residential solar systems can cost anywhere from $15,000 to $25,000 or more.

Electric Bill Savings by State

Mini plug-in solar panels: Are they worth it?

Balcony solar systems are booming across Germany. Generating electricity can save money and get people interested in green energy, say experts. But do the systems pay off for everyone?

Germany has seen a massive surge in the installation of plug-in solar systems. The number of small systems registered increased more than seven-fold in the first quarter of compared to the same period last year, according to official figures.

"The market is gigantic," plug-in solar advocate Christian Ofenheusle told DW. He runs the Berlin-based company EmpowerSource which promotes these relatively cheap mini systems. By , he predicts there could be "12 million plug-in solar systems in Germany."

Small solar systems are also becoming increasingly popular in China. In the megacity of Hangzhou, they're a common sight on large apartment buildings, according to Hans-Josef Fell, president of the Energy Watch Group, a renewables think-tank in Berlin, and former Green Party lawmaker. 

In Italy, meanwhile, the largest electricity supplier, Enel, is also promoting this form of plug-and-play home energy generation.

An inverter that allows you to plug a small solar device into a wall outletImage: Frank Rumpenhorst/dpa/picture alliance

There is "a great deal of interest" in the technology in other European countries such as Poland, France, the Netherlands, the UK, Austria, Switzerland and Hungary, said Ofenheusle. Each of the states has also tried to cut the red tape around installing such units. 

Germany too plans to simplify the installation of the devices, with advocates saying they could complement the energy transition if enough people install them. 

But how do plug-in solar modules work? 

Residents can produce solar electricity themselves with one to three photovoltaic modules hung on balconies or walls, or installed on a terrace, roof or in the garden. Most importantly the devices don't require installation by a tradesperson. 

The direct current from the solar module is conducted to a small box where it is converted into grid-standard alternating current (AC) by an inverter. The unit can then be simply plugged into a standard wall outlet. 

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How much electricity does balcony solar generate? 

Solar modules produce the most electricity in direct sunlight, which is why they are especially productive in sunny regions and in spring and summer.

In sun-drenched parts of Africa, the Middle East, Australia, China, Latin America and the US, a 400-watt module can generate up to 800 kilowatt hours (kWh) of electricity per year. It's about half that in less sunny Germany and Central Europe.

But module placement is also key. It is optimal to align the modules facing south and at the best power-yielding angle.

A 400-watt module installed on a south-facing facade or balcony in Germany perpendicular to the sun's rays, generates an average of around 260 kWh of electricity per year. A module facing east or west can still generate around 190 kWh annually.

Is a balcony module sufficient for a home's electricity needs?

A plug-in solar module will only cover part of energy demand in industrialized countries where per capita electricity consumption is relatively high. A four-person household in Germany consumes on average about kWh annually, with a single person using around kWh.

Still, electricity generated can help reduce power bills, say advocates.

In spring and summer, a south-facing 400-watt module with an optimal inclination angle can generate up to 320 watts on average, half as much when it is slightly cloudy and only about 50 watts when it is very cloudy.

In autumn and winter, mini systems generate 160 watts when the sun shines and only 20 watts when it is very cloudy.

So even in the dark of winter, there is enough power for an internet router, for example, which consumes around 10 watts. And a balcony module can almost always supply enough power for a small 80-watt refrigerator and a laptop of 40 to 100 watts.

Plug-in solar can be mounted on the wall of a house, especially on the top floor where there is no shadow from other balconiesImage: SoLocal Energy

But a plug-in module isn't enough to run a powerful PC with two monitors of around 900 watts, a -watt washing machine or even a kettle, which uses between 600 and watts. 

What do plug-in solar systems cost?

Plug-in solar systems with one to three panels cost anywhere between &#;400 and &#; ($449 to $1,348) in German online stores. 

With electricity prices currently around 30 to 50 cents per kWh, the panels will pay for themselves in six to nine years, said Thomas Seltmann of the Berlin-based German Solar Industry Association, which represents the interests of some solar businesses. 

Thereafter, electricity the module generates is free &#; and will be for at least another ten years. Solar panels today last on average more than 25 years, while inverters work for up to 15 years. 

How safe are plug-in solar modules? 

"Basically, plug-in solar units are very safe. No damage has been reported so far," said Seltmann.

However, he recommends buying such systems from specialized dealers or online retailers who ensure all the components are matching and provide installation instructions and advice. The VDE, a German technical and scientific institution that tests and certifies electrical equipment, components and systems, makes similar recommendations, for purchasing the devices. 

Sunny roofs &#; Tiles with solar modules

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Such modules are also becoming increasingly available, with 25 of 27 European Union member states approving the systems &#; only Belgium and Hungary don't yet allow balcony solar. Germany is also considering increasing the maximum limit of the systems from 600 to 800 watts.  

When installing the modules, residents should ensure they are well secured and anchored to balconies or walls so they can withstand wind and harsh weather conditions. 

A DIY energy solution 

Experts in the solar industry agree that plug-in solar units will only be able to cover a small part of future electricity demand.

But the balcony modules also allow users to "have fun" generating their own solar power, while promoting climate friendly energy solutions, said Leo Ganz from Bonn-based international market research company, EUPD.

"These balcony solar installations are super important to mobilize people for the energy transition," he said.

This article was originally published in German. 

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