Going Solar

The 1970’s brought issues of energy to the American public like never before. The OPEC oil crises of 1973 and 1979 ushered in calls for energy independence. President Jimmy Carter embodied these concerns in words and deeds. Not only addressing the nation in fireside chats about the need for energy independence, Carter had solar water heating panels installed on the West Wing of the White House. He also established the National Center for Appropriate Technology in Butte Montana. Following Carter, President Reagan – with a different agenda – pulled down the solar panels a few years later and stated Americans did not need to make sacrifices; “energy conservation means being cold in winter and hot in summer.”  And so began a collective decades-long national amnesia about energy and fossil fuels. 

Fast forward to 2023. Photovoltaic (PV) cells, generating direct current electricity from sunlight, have become a maturing technology and the cheapest source of energy on the planet.  Since the days of the Carter administration, the cost of manufacturing a PV cell has dropped 99.6%. As production continues to ramp up, the cost will continue to come down. How much will it ramp up? The world is currently generating 1 terawatt of PV energy. According to the National Renewable Energy Laboratory (another Carter-initiated agency), that number will exceed 60 terawatts in 35 years. At the utility level, solar farms are popping up across the country, but not without resistance (see our NIMBY edition). Our focus today will be oriented to homeowners who have the option to install residential rooftop solar. 

If you are thinking about going solar, the first step to consider is energy conservation. No point generating a lot of energy that is simply pouring out of a leaky home. Check out our “Button Up” edition of 52 weeks. Once you’ve reached a reasonable level of energy efficiency in your home, you are ready for solar. You will want to start with a site assessment and there are now many solar contractors available to do this for you, even virtually. Here at 52 Weeks World HQ, we were keen to get an assessment on the suitability of solar. Back in the post WWII era, when our hometown Shoreline was growing as a Seattle suburb, the development model was kind to large trees, as opposed to clearcutting entire neighborhoods. We are the beneficiary of that approach with four major conifers on the south and west side of the home. It came as no surprise when we learned that these green giants provide too much shade on our roof for a PV installation. With the added benefit of having carbon neutral electrons provided by our local utility, Seattle City Light, I could not justify cutting down these beautiful trees. For the many subscribers in the Northwest region, where hydropower is providing green electricity, it is still worthwhile to check out a solar option. Demand keeps growing in the Northwest and we can’t scale up the hydropower. 

Some people have compared a solar rooftop installation to buying a car because it will cost you somewhere from $15,000 to $30,000.  Here is where the comparison ends:

• 30% will be subsidized through an Inflation Reduction Act tax credit (assuming the Republicans don’t kill this over the current debt ceiling crisis),
• Many states and local governments have additional incentives. Here in the state of Washington there is no sales tax on the cost of system purchase and installation. This is real money; since Washington has no state income tax, sales tax can be around 10%. 
• PV systems are warrantied 25 – 30 years. They are projected to continue working at 80% efficiency after this time. Unlike a car, which immediately loses thousands of dollars in resale value once you drive off the lot, a residential PV system is an asset that will appreciate and increase the value of your home. 
• Assuming you finance the system, your monthly loan payment will be offset by a sizeable reduction in your electric bill. Many homeowners finance through a Home Equity Line of Credit. Some banks and credit unions are now offering solar loans. 

Most, but not all, states have passed legislation that requires net metering. What’s that, you say? Net metering makes you both a consumer AND producer of electricity on the grid.   During those long, sunny summer days, your electric meter will be twirling backward, feeding your local grid with excess electricity. This energy credit is then used to offset the times when you are using more energy than your system can produce (during night, at a minimum). Here in the state of Washington, utilities are required by law to credit you the full retail value of those electrons when you are a net producer. California, a state often on the “bleeding edge” of technology deployment, has provided some indication of where net metering might be going. Short headline – adding on home scale battery storage may start becoming the norm as the grid becomes more dependent on residential solar. 

If you are a homeowner, get a site assessment. If you rent or live in a condo, have a discussion with your landlord or HOA. Now is the time to check out the possibilities. Here in the Pacific Northwest, the contractors are keen for your business but don’t be surprised if demand exceeds the supply within a year or two. 

Resources:

• Database of State Incentives for Renewables and Efficiency
• Solar Washington – a treasure trove of information for Washington state residents
• Solar Washington Webinar – an informative how-to guide that’s slightly dated (April 2020)
• Google Project Sunroof – an online tool that provides some site assessment data