09.25.07
Can you make money from solar or renewable energy?
I noticed in yahoo answers, some forums and other blogs that there is a lot of confusion on if solar power is profitable or not. This seems to be a question that is answered over and over. In some places it is not profitable and will only break even. Other places you will land a good return on your investment.
A simple way to look at it is:
If you are using a public utility for your power needs you are renting your power. Have you ever rented a car and later noticed after 4 years having to give the car back or pay for it. You have nothing if you are renting.
You never see people sell their homes because they want to rent a place to live. It is more in the line of renters want to buy a home. So why would you want to rent electricity when you could own it?
Here is a thought, You checked on buying and installing a solar electric system. You was told that it would cost you around $36,000. Your first thought is WOW, that is not worth it. I currently only pay $100 per month electric bill so why would I want to pay that much.
Do the math. A grid tie solar electric system last about 30 years plus with out you doing anything more then sweeping some snow or hitting it with the water hose to get the dust off the panels.
Now back to the math, One hundred dollars a month over 30 years is guess what, Yup $36,000 and then if your add in the lower end of inflation of 3.5% increase per year you are hitting closer to $100,000 in rental utility electric. You could buy almost three solar electric systems for that amount. Or a solar electric system AND a new Corvette to set in your driveway.
Think about the fact that if you after 5 years you wanted to sell your home and move on. You can only recover the cost of your home in the sale if you were renting electricity from the utility. But you could add 20% to the cost of the installed solar power plant and make a profit. Then if your electric bill was $100 per month for the last 5 years, that is $6,000 of free electric.
Sounds like there is a real profit in solar to me.
Check out this page http://www.oynot.com/how-solar.html and find the link “Price and cost Planner” it is an excel spread sheet that will show you your savings over time.Don K.
SolarFriend said,
September 26, 2007 at 10:19 pm
You state the problem very well-
Like beer-One can never really own electricty so why buy it-
Like your math with the solar panels too - it is a VERY large investment to make to try to save $100 a month or whatever the personal numbers are.\Most people faced with this dilema WILL rent but till now there were no rental solar panels- Till now.
Renting solar panels is sort of more akin to leasing a car.
You rent the panels for a fixed monthly sum for a fixed period and assume you will get a fixed usage out of them. With a car lease it is so many miles a year with solar electric power it is kWh. So much electricity is contracted for and the panels are sized to deliver this amount. any extra and you get it from the typical electric utility.
Now how does this solve your problems
\One transporting electricity is very expensive so having the solar panels on your roof saves money for you.
Two it saves the environment because producing electricty is one of the most polluting things we do.
By helping to make these savings you get to save money because the costs for solar are fixed in your contract and are much less over time than paying month after month to the utility company. In fact most people can save right away because the rental fee is based upon the last years published utility charges in your area and DON’T go up.
Right now only 21 major metro areas are participating but more are due so if you would like more info let me know
Don K. said,
September 27, 2007 at 8:16 pm
I understand where you are coming from. There are a lot of people who don’t have that kind of money laying around in their bank account. Then there are the ones that can’t get the load. But yet both want to do their part in making the world green and protecting their children’s children from green house gasses / pollution. The rental solar power systems you speak of would be just the thing. I’m with you there and agree there is a need for the service. Never the less you are no better off financially then renting from the public utility?
What is need is a better way for people to get loans and discounts. Solar electric systems will pay for themselves already but the problem is getting the cash to buy them. Same as with buying a new car, most people could not afford to just buy one and have to get a loan somewhere. So GMAC, Ford and even Chrysler formed they’re own financing division to take care of this problem. Why is there not the same thing for solar power systems?
Buying the system will allow people to gain equality in their solar electric system and added value to their homes. Renting will not.
I think most people don’t want a new way to rent something that they can never own but would rather buy. Never the less as said above there is a need for both ways.
Don K.