The price of traditional energy sources is going up. And solar energy prices are coming down. Does it make sense for your home or business to go solar?
When considering solar energy solutions, consider these four factors:
- Cost: How much does it cost and how long will it last? Cost is directly related to the size, efficiency and location of the solar system.
- Size: How big is it? The larger the solar system, the greater the power generation.
- Efficiency: How efficient is it? The more efficient the solar system, the greater the power generation.
- Location: Where will you install it? The areas that have the greatest exposure to sunlight will generate the most power.
Cost
Although solar systems are more affordable today than in the past, it still represents a costly investment for a home or business, and must be weighed against the benefit of a solar system. In many cases, the factors that affect cost are:
- the type of solar “cell” or “module”
- the power output of the system
- the fixed costs associated with installation and permitting
Today’s solar cells are significantly more efficient and less expensive than previous solar cells, and it is starting to make economic sense for the home or business owner, especially if you are located in a high-energy cost area.
Size
Along with the potential cost of a solar system, the size requirements are also important factors. Prior to installing a solar system, most often an energy audit is performed to gauge which system is most appropriate for the home of business.
Smaller PV systems only require 50 square feet; however some commercial systems can utilize over 1000 square feet.
Efficiency
Efficiency of the Building One major factor that helps to determine the required size is the energy efficiency of the home or office/business. Obviously, the more efficient the building in terms of insulation, natural lighting, etc., will result in a smaller solar system.
Efficiency of the Solar Module Another factor is the efficiency of the solar modules. For example, for a home/office requiring a 1 kW system, a PV module with an efficiency of only 4% will require 300 square feet. However, the latest PV systems have efficiencies approaching 16%, which would only require 80 square feet of rooftop space.
For very large systems, 10 kW, a 16% efficiency system requires 800 square feet yet an 8% efficiency system is double that, 1500 square feet.
Location
However, the most important consideration not mentioned is the sun, specifically the location of the solar PV system relative to the sun’s position.
California For most applications in California, the optimal solar PV placement occurs on areas that face west or southwest. This allows for the optimal exposure to the sun during peak sunlight hours.
Northern States In the northern reaches of the United States, the size and efficiency are not the only factors when calculating potential power output, as these areas have shorter daylight exposure time that will require either more efficient or larger solar panels.
Foliage and Sun-Blocking Structures Trees are good for the environment, and you certainly don’t want to cut them down to allow for solar panel installation, so take a look at where your foliage is –and any potentially sun-blocking structures — before determining where to put your solar panels.
The map shows the US Department of Energy National Renewable Energy Laboratory’s description of solar PV resource potential. The green and blue areas represent areas of lowest solar PV potential, only estimated at 3-5 kWh per square meter per day. The yellow and red areas represent the highest potential for the United States in the southwestern desert areas of the country.
Other Considerations
- Is the solar module upgradable?
- Is made from environmentally friendly materials?
- Are there local, state, or federal tax rebates or incentives that you qualify for?
Solar energy isn’t a new kid on the block. But it’s certainly making headlines again. What’s going on? Two things:
- The price of current energy sources is skyrocketing, making solar seem less expensive in comparison.
- Government and private industry are working in tandem to make solar energy affordable and more efficient.
Regardless of political position, it’s undeniable that gas and electricity prices are rising globally, now practically catching up to the cost of current solar energy solutions. And sun, unlike other energy resources, is plentiful and renewable.
The History of Solar
This happened before, back in the 1970s: rising costs of fossil fuels led to interest in investing in solar energy research. Remember the wave of those expensive heavy solar panels on our neighbors’ roofs? But we didn’t decrease our reliance on oil, oil prices fell again and so did our interest in solar.
Where We Are Today
This time around, the momentum may just be enough to get the much needed government initiatives passed and the capital investment engines turning.
President Obama’s statement regarding the United States’ lag in solar energy provides some home this is true. “America produces less than three percent of our electricity through renewable sources of energy like wind and solar,” he said. “We pioneered solar technology, but we’ve fallen behind countries like Germany and Japan in generating it — even though they get less sun than we do,” Obama continued.
The United States, and the World, is in a tough position. Oil prices are high, and this administration seems ready to deal with the issue head on. New incentives passed at the state and federal levels have made solar energy more affordable, but it is still a long ways off from being common.
The good news:
- Solar energy is becoming more affordable because it’s more marketable
- Solar energy is evolving fast.
- Advanced solar technologies are ready to make the plunge.
Technology advances allow for power generation in a variety of configurations, such as:
- Stalwart rooftop systems
- Solar thermal systems
- Solar farms
- Self-sufficient solar communities
- Flexible materials that allow for solar cells to be placed just about anywhere — solar powered cars, bikes, backpacks, tents, radios, clothing, etc.
Not only have the materials improved, but the way solar cells are manufactured has evolved, allowing for faster, more efficient, and cost effective processes.
The early solar cells were difficult and costly to make, requiring high capital machinery and processes. The next generation solar cells can be manufactured almost completely by automation with advances in material technology mirroring the improvements in power generation and efficiencies.
Companies Making Waves in Solar
There are several solar technology companies with novel solar applications that may lead the way of next generation photovoltaics.
Kyocera (NYSE: KYO) more often associated with the cellular phone, has extensive solar expertise, with a wide variety of residential, industrial, commercial/institutional and marine/RV systems in place.
First Solar (NASDAQ: FSLR) offers solar solutions based on advanced thin film semiconductor photovoltaics. Their cadmium telluride (CdTe) photovoltaic represents the field’s transition to lower cost materials and manufacturing processes.
Along those lines, Evergreen Solar (Nasdaq: ESLR) utilizes a novel manufacturing process to make use of the standard silicon materials, allowing for low-cost silicon wafer production.
Shrink Solar’s parent company, Shrink Nanotechnologies (OTC: AUIO), represents the cutting edge in solar manufacturing and technology. By combining advanced materials and manufacturing processes, Shrink is able to design and produce photovoltaics that can rival any current silicon or semiconductor solar system.
The key lies in Shrink’s ability to integrate advanced quantum dot technology with patented fabrication techniques. Additionally, Shrink is developing new solar technology that is able to augment current solar systems, in essence boosting the efficiencies of an existing solar installation. Taken together, Shrink’s solar technology demonstrates the potential of next generation photovoltaics.
