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Sun Volt

Sun Volt Solar

earth, the final frontier

Clean Energy, Clean Environment

We are at a cross roads in human history, we can choose to continue on as we have been, or we can make a change to improve our future and quite possibly the future for several generations to come. We are here to promote energy independence, a better environment, a secure future and a higher return on investment for your hard earned dollar. It is what I believe in, it is why I am in the solar business.

Cost of Renewable Energy vs. Traditional energy sources

09 Feb 10 | Conservation

One point that always comes up in any solar sales presentation, why does it cost so much.  That is a very good question and there are several reasons:

  1. With solar energy systems, power producing equipment is installed vs. fossil fuels systems, where energy is purchased from a supplier.  There is no capital investment made, once the fuel is used, it is gone.
  2. Manufacturing, raw materials and research and development costs of solar power is higher than conventional system because of their smaller market share.  As solar expands, prices will come down and already have.
  3. Competition for raw materials, Photovoltaics in particular are competing for raw silicon against computer manufactures and other electronics manufactures, this is also decreasing.
  4. Fossil fuels prices are artificially low.  One estimate puts the actual price of a barrel of oil around $480.00 if all factors are considered.

In light of those factors, renewable energy, particularly solar is not expensive at all.  Consider this; we are burning through our reserves of oil much faster than new oil deposits are being discovered.  It is true, there are still billions if not trillions of barrels of oil yet in the ground.  However, most of that will never be extracted.  It is too expensive in terms of energy and capital to get to.  Therefore, it will stay where it is.  In the mean time, the amount we pay for our gas, oil, and electric in no way reflects the true costs associated with those products.

In light of those things, solar is pretty economical.  It is easier to pay the oil companies for their energy, but is it better?

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09 Feb 10 | Conservation | Comments (3)

Google searchs show what the public is thinking about Solar

18 Jan 10 | General

The search engine known as Google has a handy auto complete function. If you start to type in a phrase, it tries to guess what you are looking for and complete the phrase before you can, thus making your searches easier, at least in theory. The auto complete part of the phrase is based on what people have searched for in the past.

With all of that in mind, I typed: “Why is solar…”  In the search box and let the auto complete fill out the rest.  This is the response:

why is solar...

It is Martin Luther King Jr. day, which explains the graphic at the top of the search results.  It is heartening to see that people are looking into reasons why solar is important or good.  I’d expect result #4, “Why is solar so energy expensive?” to be number one primarily because it is a question that is asked at least once on every sales call.

I believe that the general public is beginning to catch on in that most searches are looking for positive aspects of solar energy.  There is still a long way to go until the preception of solar moves from “alternative energy” to “main stream energy”  source.

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18 Jan 10 | General | Comments (0)

Solar Power: Save money, increase the value of your home

20 Dec 09 | Sales, Solar Electric, Solar Hot Water, solar thermal

I have been going over some of the bills from the last few years. My utility company, Central Hudson Gas and Electric has been increasing the cost of electricity by 9% annually.

central hudson electric rates

Nine percent per year seems like quite a bit, especially since inflation has been running around two to three percent. The increases of fuel costs and energy products in general has far outpaced inflation. Projected out 25 years, the cost per kWh is $1.53! I don’t expect it to get that bad, but one never knows.

Here are some solar facts:

Based on conditions here in NY state:

  • The average home owner chooses to install a 4 KW DC photovoltaic system. This generates 4500 to 5000 KWh per year.
  • With rebates and incentives, the final system cost is about $10-11K.
  • Over the course of the system life (25 years), the electricity generated will cost $0.09 per KWh. Currently, NY electricity averages $0.158 KWh (increasing at 9% per year).
  • Without inflation, that equals a savings of $29,000.00.

Also, based on conditions in NY state:

  • the average home owner chooses to install an 80 SF/80 Gallon solar hot water system. This will supply a family of four with 80% of their hot water annually.
  • With rebates and incentives, that system cost is around $3,800.
  • Over the course of the system life (25 years), the energy converted by this system will cost $0.03 per KWh. Currently, NY electricity averages $0.158 KWh (increases 9% per year)
  • Without inflation, that equals a savings of $16,500.00.

Of course, these are long term investments. In order to realize this type of savings, a homeowner will have to stay put for 25 years. That is a rarity these days.

Solar systems retain almost all of their pre-incentive/rebate value when added to a structure as a capital improvement. Here is a list of residential home improvements and the values added to a typical house:

  1. Two story addition: 94%
  2. Bathroom remodel: 93%
  3. Major Kitchen Remodel: 91%
  4. Solar System: 90%
  5. Basement finish/remodel: 89%
  6. Siding: 88%
  7. Roof Replacement: 85%
  8. Deck: 84%
  9. Hot tub: 84%
  10. Family room addition: 82%
  11. Sun room: 75%
  12. Garage addition: 70%
  13. Backup power generator: 58%

Of course, if the rebates and incentives are considered, then the installation of a solar system is cash positive from day one. What this means is the homeowner pays $11-12K but gets $32,000 of additional home value. I can’t think of a better deal than that.

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Cheap oil=Less solar?

18 Dec 08 | Conservation, Solar Electric, Solar Hot Water, solar thermal

The price of a barrel of oil has dropped more than 70% since it’s all time high of $147.00/bbl in July.  Prices for home heating oil, gasoline, propane and kerosene have dropped accordingly.  All of this seems like welcome relief and great news for the ordinary homeowner especially as this winter looks to be a bad one weather wise.

OPEC meet yesterday and agreed to cut production by 2.2 Million Barrels per Day (MBD).  Non-OPEC oil producers have promised to follow suit.  Will this have an effect on the plummeting value of crude oil?  Apparently not, as oil prices fell below $40.00 per barrel today.  What really seems to be driving the price of oil down is the recession and the fact that people are driving less.  How much less?  About 5% or so.

It might be reasonable to extrapolate a few things from this:

  1. A 5% reduction in driving translates to a 70% reduction in the cost of a barrel of oil, then a relatively small conversion (about 10-15%) of the US fleet to Plug in Electric Vehicles (PEVs) powered by solar, wind or non-fossil fuels would have a significant effect on the price of gasoline.
  2. Use of hybrid technology for public service vehicles, taxi’s, government business, mail delivery, police, etc could reduce government fuel use, costs, and reduce pollution.
  3. Rail transport is the most efficient way to move bulk goods across land.  A typical freight train can transport 1 ton goods 450 miles on one gallon of diesel fuel.  A typical Tractor Trailer (18 wheel truck, 80,000 lbs GVW) moves 1 ton of freight about 250 miles on one gallon of fuel.  Reducing cross country truck transport, using rail instead, then using truck for the last mile deliveries would significantly reduce diesel fuel usage, thus prices.

That is, if the markets are not manipulated by traders to drive up energy prices.  I have a strong feeling that in the next year or two we will find out that the $147.00 barrel of oil was a farce, just like the ENRON induced electrical shortages in California a few years ago.

To all those that say a 10 or 20% renewable energy target by 2015 will make not matter, I beg to differ.  Every little reduction matters.  Many many small reductions through improved efficiency, better technology, and renewable energy systems will add up to a large number.

If anything, the low price of oil shows that we are still vulnerable to unscrupulous operators that would seek to profiteer.  As energy prices drop, we should look at is as an opportunity to install renewable systems while prices are favorable.

For example, the cost of raw materials is coming down.  The price of copper (a significant part of solar thermal collectors are made from copper) has dropped from $9,000 per metric ton to a little under $3,000 per metric ton. Pure Silicon (major component in PV cells) is still high, but has dropped slightly over the last year.

One other possible bad effect of cheap oil.  The oil companies are not going to do any exporation and development of new fields as there is no profit in it for them.  Even if the regulations were relaxed and new leases signed, the whole “Drill baby, Drill” mantra may be met with “No thanks, we’ll just sell what we already have.”  In which case, we may indeed be driving ourselves over a cliff.

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Five Good Reasons to Install a Solar Energy System

02 Nov 08 | Conservation, Environment, Solar Electric, Solar Hot Water, solar thermal

A friend of mine has a blog called “Today’s Green Construction.“  Todd is a principle engineer for a large construction company and when it comes to construction, he knows what he is talking about.  Recently, he wrote an article called “OPEC is the Best Reason to go Green,” which I thoroughly agree with.  That got me thinking about other reasons to go green and more specifically, to install solar systems.

So here they are, Five (really) good reasons to install a solar energy system:

  1. Energy independence.  No two ways about it, solar systems save energy.  If you heat your hot water with oil, propane, natural gas or electricity, you are almost certainly using fossil fuels.  Some percentage of that is likely to come from imports originating in countries that don’t like us, except for our money.  These countries include Saudi Arabia, Iran, Venezuela, and Russia.  The less energy we use from those source, the less petro dollars that will have to use against us.  My last customer stated “Every dollar that I don’t send to the middle east makes me happy.”  Amen, brother.
  2. Cost savings.  Saving energy means saving money.  With fuel prices rising, all energy costs are going up, even domestically produced natural gas.  Solar systems will pay for themselves many times over during their operating lifetime.  By installing solar equipment, expenses are fixed at their current levels, so as inflation and other economic pressures cause prices to go up, a homeowner that has solar installed will be paying the same price as before.  Remember when gas was $1.00 per gallon?
  3. Environment.  Saving energy also means reducing emissions.  This varies from fuel to fuel, but almost all fossil produce sulfur dioxide and nitric oxides, additionally, carbon monoxide, carbon dioxide, volatile organic compounds VOC’s and toxic metals can also be released into the atmosphere.  Reducing energy also means reduction in energy used to extract energy being used.  The fuel oil delivery truck uses diesel to bring the fuel to a building, that is energy used to supply energy.
  4. Green Jobs.  The more demand for solar (and other green) equipment, the more jobs will be created right here in the United States.  As a solar contractor, I only purchase equipment that is manufactured here.  Last summer, when my normal supply of solar thermal panels dried up, I could have purchased panels made in Israel.  I opted to wait for the US panels, even though it meant loosing business.  Not that I don’t like Israel, I just thought that there was a lot of transportation overhead involved with shipping a panel from half way around the world, and I would rather support the company making products that I know here in the US.
  5. The future.  The earth has a finite amount of oil and other fossil fuels.  Some of those fuel, like natural gas (which is mostly methane) does regenerate, but in much smaller amounts through landfills and large manure digesters.  Others, like oil and coal, do not replenish themselves.  Most geologists agree that we are approaching or have passed the peak oil point, which is the point where oil extraction begins to drop off as resources are depleted.  In order to maintain the society that we and our forefathers have built, a replacement energy system needs to be implemented, else we will find ourselves in a new dark age.  Some predictions are dire, but that does not have to come to pass.

These reason also apply to wind power, geothermal, tidal, and all other renewable energy sources.  Renewable energy is no longer alternative energy, it must grow into our primary energy source.

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Is the Solar Energy field recession proof?

23 Jan 08 | General Business, Solar Electric, Technology

Starting a small business during a recession may seem like a recipe for failure. The basic premise is that people will not buy anything other than what is absolutely necessary. So the questions are; is electricity necessary today? How about hot water or heat, is that necessary? Would people be interested in saving money on those things if it involved an initial outlay of cash? How fed up are people with paying for oil, gas or electric? Here is a basic recap (prices for New York State, Hudson Valley region as of January 20, 2008 from NYSERDA):

  • Home heating oil $3.484/gallon
  • Propane $2.851/gallon
  • Electric $0.138 kWh
  • Natural Gas $1.926 therm
  • Solar $0.00
  • Wind $0.00

Will people get that? I know many are rushing off to trade in their SUV’s for fuel efficient cars, but will they consider the energy they use at home as well? Those are things that I want to find out.

Right now, the solar industry is dependent on government subsides, there are no two ways about it. Without generous help from the government (federal and state) neither solar thermal nor photovoltiacs would be viable except in situations where grid power was unavailable (i.e. remote cabins, telecommunications sites, etc). In fact, in the mid 1980’s the industry was brought down to almost nothing as the Reagan administration killed all the tax incentives that were then fueling the solar sector. Will congress restore the tax breaks? Only time will tell. Even if they do, it will take a huge effort to move them away from their corporate sponsors toward the less corporate renewables.

I was listening to an interesting report on the local NPR station on my way home from work today. Amid reports of troubled economic times and other bad omens, there was an upbeat report on the Solar economy right here in the Hudson Valley. You can listen to an .mp3 of the report here (opens media player window). Basically, the it speaks about TSEC (The Solar Energy Consortium) based in Kingston, NY. This is more along the lines of research and development, but that is what will fuel the green economy in the future. It is clear to me that the sustainable movement must be able to stand on it’s own, without government assistance, to succeed. This is a tall order, considering how unfavorably the deck is stacked against renewable energy due to the huge subsides given to coal and oil.

It is, however, possible.

For the short term, the solar energy sector may well be able to weather the up coming recession as more and more people are aware of it and are looking for ways to save money. As much as we would like to believe that the human race is altruistic and will alter it’s behavior of the benefit of the planet, economics trumps environment.

For the long term, the only way that solar, wind and other renewable energy sources will survive is if they become competitive with fossil fuels on their own. This means that fossil fuels have to become more expensive (than they already are) and renewable energy, particularly photovoltaics must become less expensive.

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