Showing posts with label Residential. Show all posts
Showing posts with label Residential. Show all posts
10 Benefits of Having a Solar Energy System
Nowadays, we can't live without our mobile phones and our computers. Of course, advances in technology have already radically changed how we live our lives. Did you know that there is a very important aspect of our life that is still using 140 years of technology? And that is our main source of energy, which is coal power. Yes, there are improvements in the technology for extracting energy from coal, but there is a limit to this, because the coal we use is still the same as it was first used 140 years ago. Burning coal can also disrupt our planet's natural carbon cycle by releasing the carbon content of coal into the atmosphere in the form of carbon dioxide. This increases the amount of carbon dioxide in our atmosphere, which traps the heat from the sun and warms the entire planet.
Fortunately, we now have new, clean, and efficient energy sources in the form of solar energy. Here are the benefits of having a solar panel system in your home:
1) Clean - Solar energy does not produce any harmful greenhouse gases in its operation. Also, by using the solar energy system, you can reduce the energy you buy from your electric grid, so reduce our total emissions. With our collective efforts, we can make a difference, even if the amount of solar energy you generate on your roof is very small compared to our total energy consumption.
2) Renewable - Renewable energy source means from energy that won't run out. Examples include sunshine, rain, wind, waves, tides, and geothermal heat. This is important for energy sources because we don't have to worry about running out of fuel. For traditional fossil fuel sources such as coal, most of the costs come from mining, refining, and transporting fuel. Since it is not a problem for renewable energy sources, they are likely to be much cheaper.
As we already know that we can never rely on fossil fuel sources like coal, it is inevitable to replace it with cleaner and better energy sources. Since solar power is the only energy source that single homes can use, it has become one of the top options for coal replacement.
3) Increase the value of the property - See Solar Roofs Map for neighborhoods with solar density and you will see an increase in values.
4) Cooling effect - Providing shade for your roof which helps reduce hear.
5) Net Metering - Our electric grid is designed for one-way power transmission, from the electric grid to our homes. However, with renewable energy, such as solar energy systems, homeowners are given the ability to generate electricity in their homes. This opens up the possibility for electricity to flow back into the electrical grid. In line with this change, a net metering scheme was created.
Net metering is a policy that allows homeowners to re-export or re-sell the grid and get credit for their monthly electricity bills. Since the solar energy system generates energy when there is sunlight, there may be times when it generates a lot of energy but the overall energy consumption of your home is low. In these cases, the excess energy is exported back to the electric grid. Your electricity provider credits you with an amount equal to the total export power multiplied by the feed-in-tariff at your location.
When your solar power system generates energy, the priority of your home appliances is to use that energy first. If this is not enough, this is the only time you can buy power from the grid. When your solar power system generates more power, the excess is exported and sold back to the grid.
6) Exporting Excess Power Back to the Utility Grid?
Export power, on the other hand, refers to excess energy from your solar PV system, which you export or resell to the electric grid.
This means that the energy that goes into your self-consumption is equal to the cost of kW electricity from the grid. Because instead of buying electricity from the grid at this price, you get energy from your solar PV system.
On the other hand, for some countries, including the Philippines and Australia, exported energy is worth less than your self-consumption. When you export or sell energy back to the grid, you get credit for your monthly electricity bills. The problem is that you are credited at a price per kilowatt which is less than the total cost of electricity.
For example, In the Philippines, the cost of electricity is 10 pesos per kilowatt. However, you will be credited with only 5 pesos per kilowatt. There are other countries, such as the US, where the exported energy is deposited from the grid at a price equal to the cost of electricity.
That is why it is important to consider in detail your hourly use system to measure your home's solar PV system in terms of size, self-consumption, and exported energy caused by your solar PV system.
7) Monthly savings - As they say: "Money Makes The World Go Round" For this reason, being a clean energy source is still not enough to solve our energy problems. It should also be economically feasible. Fortunately, solar panel costs have fallen continuously due to improvements in solar panel technology and manufacturing techniques and processes. For this reason, grid equality for solar energy has already been achieved in most countries of the world. This means that solar power is officially already cheaper than electricity coming from the grid.
Currently, solar energy systems have become an option for homeowners who want to save on their monthly electricity bills. Because the sun is basically shining anywhere in the world, there is no limit to the efficient use of solar energy systems in homes.
To understand how you can save on your monthly electricity bills, you need to understand some aspects of solar energy systems:
How much you can save?
How much you can save depends on whether the value of electricity from your exported energy grid is less than or equal to the actual cost of electricity. If it's the equivalent of electricity from the grid, you can easily save 100% of your monthly electricity bill by having a solar PV system that generates more energy per month for your monthly electricity usage.
In another case, determining how much you can save can be tricky. To get started, you first need to evaluate your usage patterns. Think about how many tools you use from morning to afternoon. From this point in the day, your energy consumption is part of your total energy consumption, which you can offset with your solar PV system.
However, to get a more accurate estimate that considers both self-consumption and exported energy, you should contact a solar company to do this for you. They only need a copy of your electricity bills and a description of your hourly usage policy. From that data, a good solar company can already create a 25-year financial analysis that shows not only your monthly savings, but also other financial parameters:
- Recommended System Size and Options - A good solar company should be able to recommend the perfect solar PV system size for your use and uphold this recommendation. However, they should also offer you other options in terms of system size considering your size and the desired monthly savings. Note that some solar companies recommend system size greater than optimum to increase their sales.
- Brand and Model of Solar Panels and Solar Inverters - There are many cheap, low-quality solar panels and solar
- 25 Years of Economic Analysis - From there, it will show you how much energy is generated and estimate the amount that will go into your self-use and re-exported to the grid. It can be used to create a financial analysis for the entire life of the solar PV system (25 years), showing all months of the year, ROI, payback period, energy level, or monthly savings expected for LCOE. Others.
- Service Package - A good solar company should be able to detail their service package in detail, especially after installation.
- Improving self-utilization - To further maximize the benefits you can get from a solar PV system, you can adjust your usage pattern to better match the product of your solar PV system. For example, you can choose to use your washing machine, flat iron, and any other tools during the afternoon. This reduces your export power (which is less valuable for solar PV systems in some countries)
8) Independent Power Producer - The best thing about having your own solar PV system is an independent power generator. This means that you have your own solar power plant on top of your roof.
9) It feels good to do something good for your neighborhood and community.
10) It looks cool and people will think more highly of you.
What is a Solar PPA Power Purchase Agreement?
A solar (PPA) power purchase agreement is a financial agreement where a solar developer arranges for the design, permitting, financing, and installation of a solar roof, solar farm, or solar parking lot on a customer’s property at little to no cost. The developer sells the solar energy generated to the host customer at a fixed rate that is typically lower than the local utility’s retail rate. This lower electricity price serves to offset the customer’s purchase of electricity from the grid while the solar developer receives the income from these sales of electricity as well as any tax credits and other incentives generated from the system. PPA agreements typically range from 10 to 25 years and the developer remains responsible for the operation and maintenance of the system for the duration of the agreement.
Benefits of PPA's to the property owner
- No or low upfront capital costs for the solar system: The developer handles the upfront costs of sizing, procuring, and installing the solar system. No upfront investment and the customer is able to save money as soon as the system becomes operational.
- Reduction of energy costs: Solar PPAs provide a fixed, predictable cost of electricity for the duration of the agreement and are structured in one of two ways:
- Fixed escalator plan, the price the customer pays rises at a predetermined rate, typically between 2% - 5%. This is often lower than the projected utility price increases.
- A fixed price plan, on the other hand, maintains a constant price throughout the term of the PPA saving the customer more as utility prices rise over time.
- Limited risk: The developer is responsible for the solar system performance and operating/maintenance risk.
- Better leverage of available tax credits: Developers are typically better positioned to utilize available tax credits to reduce system costs. For example, municipal hosts and other public entities with no taxable income would not otherwise be able to take advantage of the Section 48 Investment Tax Credit.
- Potential increase in property value: Solar systems have been shown to increase property values. The long-term nature of these agreements allows PPAs to be transferred with the property and thus provides customers a means to invest in their homes at little or no cost.
- Extension: At the end of the PPA contract term, a customer may be able to extend the PPA, or have the developer remove the system or choose to buy the solar energy system from the developer.
- Transferable: PPA's agreements are typically transferable if a sale or the property occurs.
Colorado, for example, first entered the market in 2010, and by mid-2011 third-party installations represented over 60% of all residential installations and continued to rise to 75% through the first half of 2012. This upward trend is evident throughout states that have introduced third-party financing models.
Apparently, Walmart is a big fan of PPAs and has entered into a lot of agreements at some stores.
