(C) Daily Kos This story was originally published by Daily Kos and is unaltered. . . . . . . . . . . Ask Solarman: Examples of Strong Economics [1] ['This Content Is Not Subject To Review Daily Kos Staff Prior To Publication.'] Date: 2023-10-15 As always, make comments, ask questions and share your own experiences. ~~~~~ Scientific articles (like the one I posted from NYT recently) and well known climate scientists, tell us it is NOT too late. It seems obvious but I’ll say it- we need every change we can make. Nothing should get excluded because other things are “needed more” or some upcoming technology breakthrough might “be better”. Changing one incandescent light bulb to an LED is progress. Okay, you might say, what does the change to carbon free power for a home look like, on an economic basis? Might I be able to afford it, or afford to finance it? How does it pay for itself? I know, I know- the environmental benefits should be taken into account. But with most projects we have no way to place a value on them. So we nail down every concrete, immediate value we can. Fortunately the Democrats we elected figured out economic incentives, which go a long way to placing a value on carbon free energy systems. Here are a few examples of how we can use the economic advantages of energy efficiency, renewable energy and EV adoption. All are real examples. Narrative on my home’s conversion to near zero carbon The cost of power here is mid-range of what it is across the US. At a mile high elevation we have a mile less atmosphere for solar radiation to get through, so our solar PV system production is higher than on the coast. The cost of a system is similar to many parts of the US. We reduced usage with energy efficiency about 20%. Then installed 4.4kW of solar PV for electricity and solar thermal to knock out all gas usage for hot water heating and most of our home heating gas usage. A year later we bought two EVs, added 2.5 kW of solar PV to power them. Our gas & electric bills are usually just the meter fees, $21.80/month. We don’t buy gasoline for our cars and don’t need oil changes. The EV regenerative braking system means we don’t even use the brakes much. So the maintenance is mainly new tires and windshield washer fluid. A home in Boulder County, Colorado They just bought their solar PV system. Their roof faces east so the system produces less per kW than if it faced south. Solar panels are so cheap we just added 3 more panels to cover their full usage. This project example skips some energy efficiency equipment that reduces usage, and skips the optional batteries, both of which they ended up buying. So it is just the solar PV system. Here are their economics. 19 solar panels = 7.7 kilowatts (kW) Production per kW at their location, orientation & roof slope = 1,316 kWh (kilowatt hours) per kW. The system covers all annual usage. Project Cost = $21,300 Federal tax credit earned, 30% of cost = $6,390 Net cost after taking the credit off their tax bill = $14,910Year 1 property value increase = $16,853 Note: Most real estate agents here don’t have a clue so would not recognize the increase in value. Happily, the state auditor bars property taxes on residential solar. Year 1 electricity bill savings = $1,404 Annual Pollution Reduced: 27,131 lbs CO2 63 lbs NOx 80 lbs SO2 A Rental House in Boulder Lots of trees casting shade on parts of the roof used to make the project impractical. The drop in solar equipment pricing made nearly every roof workable. This house is owned by a retired NOAA scientist who called out the alarm about the rise of particulates and carbon in the atmosphere for decades. He was my landlord. The mostly unshaded (8% annual shade where the array is), highest roof has suitable east and west facings. The lower, south facing has too much shade to get significant solar production. Production per kW at their location, orientation & roof slope = 1,316 kilowatt hours (kWh) per kW. The system covers all annual usage. When placing some panels on one roof plane and more on another we calculate the solar production of each section. Here we face east, losing 25% of annual production we’d get if facing south; and west, losing 26%. Along Colorado’s Front Range the late day clouds in the summer make this 1% difference. The good news for the landlord is that he’ll classify this project as commercial as he can charge more rent by touting the energy is carbon free plus reduces costs for the renter paying to electric bill. Commercial projects get more tax incentives. 16 solar panels = 6.4 kilowatts (kW) Project Cost = $19,032 Federal tax credit earned 30% + 10% Adder for meeting standard for being US Content = $7,612 Bonus Depreciation can all be taken in the year of installation. At his 33% tax rate this is worth $6,370 in tax savings. Net cost after taking the tax incentives = $5,212 Year 1 property value increase = $12,465 (but most real estate agents here don’t have a clue) Year 1 electricity bill savings = $1,039 Annual Pollution Reduced: 18,134 lbs CO2 42 lbs NOx 54 lbs SO2 The shop & farm solar is upper right. Finally, a Commercial Solar Project This is on a small car renovation shop and farm SSE of Denver. The incentives I noted above are for any commercial project, and there are a few more that sometimes apply. The USDA grant is for only rural commercial projects. This system includes a set of batteries which are sized to catch all the daily solar production the shop doesn’t use during the day and cycles the batteries each night. The result is not having to send any power to the Grid, therefore not touching the utility’s equipment. Meaning this system does not require utility approval. It’s like an off grid system, however the electric meter remains there. The term for this relatively new kind of system is Grid Backup. Not just battery backup but the full sized batteries to mean the Grid is only a backup power supply. 38 solar panels = 15.39 kilowatts (kW) with 20.4 kWh of battery storage. Project Cost = $83,617 Federal tax credit earned 30% + 10% Adder for meeting standard for being US Content = $33,447 Bonus Depreciation can all be taken in the year of installation. At his 37% tax rate (he owns another business so has strong income) this is worth $30,938 in tax savings. USDA REAP Grant for rural businesses less the tax liability on the rebate (IRS considers it taxable income) nets $21,071 Net cost after taking the tax incentives = – $1,839 (the incentives cover all of system cost plus a bit) Year 1 property value increase = $28,556 Year 1 electricity bill savings = $2,380 Annual Pollution Reduced: 63,065 lbs CO2 146 lbs NOx 186 lbs SO2 ~~~~~ Every project is different. I hope, there will be a lot of questions. And a lot of people getting inspired to acquire your own system. Remember, reducing energy use is extremely important. After energy efficiency the solar system you need to cover the frest of your power usage will be that much smaller, cost that much less. That wraps up today’s article. Be well. Take action. [END] --- [1] Url: https://www.dailykos.com/stories/2023/10/15/2199122/-Ask-Solarman-Examples-of-Strong-Economics?pm_campaign=front_page&pm_source=more_community&pm_medium=web Published and (C) by Daily Kos Content appears here under this condition or license: Site content may be used for any purpose without permission unless otherwise specified. via Magical.Fish Gopher News Feeds: gopher://magical.fish/1/feeds/news/dailykos/