Residential Solar and Wind Systems: What

Are the Costs?

Most Texas homeowners considering a solar energy system or residential wind turbine system
will quickly face sticker shock. Wind turbine systems can run as high as $65,000 installed. The
average cost nationally for a professionally installed solar panel system is about $8 to $9 per
watt. A 2 kilowatt (kw) grid-tied system can run to $16,000. A similar 5 kw system can cost
upwards of $40,000. Deep cycle back-up batteries for both wind and solar can add on 20 to 30
percent more. You might be able to save around $2 per watt by doing the work yourself;
however, energy efficiency programs may have certification requirements.

Because both residential and commercial demand for wind and solar energy is increasing, the
technology is improving, there are more manufacturers, and the price is dropping. In the case of
solar energy, the cost of an average solar panel in 1980 was $21 per watt. Today, the average
cost is about $2.50 per watt (low =$1.42/watt, high=$3.75). In 25 years, that’s a cost reduction of
90%. Power output capacities have also improved. In 1980, a typical solar panel might put out 22
watts. Now, 100 watt panels are common, if not plentiful. That’s a 450% increase in output. Add
to this new enhancement through tracking (a motorized mount tracks the sun through the day to
improve efficiency) and concentrating sunlight to extract up to 75% of the sun’s rays that
increases efficiency by 1000 times over regular flat panels. Even if incentives aren’t available in
your area, any solar or wind energy system installed by December 31, 2010 the Federal Energy
Efficiency Tax credit lowers the cost by 30%.

The reason residential renewables are expensive is simple: you are investing in a home-sized
power plant. Like any large scale power plant, that’s a long term investment made over the
course of 15 to 25 years. And, like any long term investment, you should first take a few minutes
to consider your needs and goals:

 How much electricity do you use each day?

 In a rural setting, will it cost more to bring more to bring poles and wires to your home?
 Is your goal to have self-sufficiency while retaining a grid-tie?

Remember home size is irrelevant. The issue is purely how much energy you use because you
are going to want a system that can meet your usage needs.

Figuring your usage

There is a big difference in watts and watt-hours. The power (watts) required to run things in
your house is not measured the same way as your utility bills show (watt-hours). A 50 watt light
bulb burns 50 watts of power each time it’s turned on. So the electricity supply has to be able to
provide that 50 watts of power when the light is turned on. If you have a 30 watt battery, the 50
watt bulb won’t light all the way and quickly run down the battery. Watt-hours, meanwhile are
the units of measurement of energy used over time. So, a 50 watt light bulb will consume 50
watts per hour (or even 50 watts per second if you are measuring in seconds). The important
thing to remember is that watts and watt-hours are NOT interchangeable in making your
calculations.

That being said, the way to determine your usage is to review your utility bills. For example,
let’s say you use an average of 1000 kWh per month. That divides out to 33.33 kWh per day.
The next step is to find out what electrical appliances and devices you are using, how many watts
they consume, and how long do you use them. To compute kWh of a device or appliance,
multiply the watts times the hours it runs during the day. A 500 watt chest freezer running for ten
hours will use 2kWh of energy. If you only know the voltage and amps an appliance is using,
there are lots of web sites that calculate wattage.

The next thing to look up is the amount of direct sunshine your location receives (insolation). It
is controlled by the angle of the sun, the weather, atmosphere, elevation, and location on the
globe. The further north or south from the equator you go, the fewer hours of insolation. In
Texas, insolation amounts vary from 4.5 to 5 hours.

Now we can see how many panels you may need. A very handy tool is the Solar Panel Estimator.
Assume your insolation hours equal 4.5. The system efficiency is a product of the efficiency
ratings of the current handling hardware: inverter (to convert 12 volts DC to 120 volts AC and
smooth it into a nice, clean 60 hertz cycle), a battery charge controller, and the deep cycle
batteries. Inverters typically run about 95%, charge controllers at 98%, and batteries at 80%. So,
if we multiply .95 × .98 x.80, we get a system efficiency of .74 or 74%. That means our 100 watt
solar panels actually produce 74 watts. If we compare the output from the Solar Panel Estimator,
if our system was 99% efficient, we would only need 74 panels. Since our system is only 74%,
we need 99 panels to make 33 kWh/day.

Lighten your load

The easiest thing to do is find ways to cut your electrical use by eliminating inefficient devices.
In Texas, the biggest home energy user is air conditioning. A 30 ton central air conditioning
system with a SEER rating of 13 can use 2.3 kWh. Over ten hours, that adds up to 23 kW — 2/3
of our electrical load. There are different energy efficient ways of cooling your home. Swamp
coolers, for example, work through evaporation though are most efficient in dry environments.
Absorption chillers are common alternatives. They heat refrigerant at low pressure until it
evaporates, then it loses its heat through condensing back into a fluid at high pressure. The heat
source can be natural gas, propane, kerosene, or solar heat. Because there is no compressor to
supply pressure, the system uses little energy.

The second biggest user is the electric hot water heater. Heating water in your home accounts for
17% of annual energy costs. A 40 gallon heater uses an average of 8 kwh/day. There are several
energy efficient alternatives: change to a heat on demand system, use natural gas or propane to
heat your water, or consider a solar water heating system in addition to your solar panels.

Consider switching to energy efficient alternatives and/or Energy Star rated appliances. Take
into account any energy-wasting behaviors. Also, think about how well insulated and weather-
sealed your home is and whether it needs improving. The less energy you can live without means
the less energy-generating capacity you will need to install.

Let’s say that we’ve installed more efficient appliances and lights, replaced the water heater and
air conditioner systems with a solar absorption chilling system that heats water also. That brings
down the usage from 33 kWh/day to 5 kWh/day. Plugging the numbers into the Solar Panel
Estimator, we arrive at 16 panels.

Home wind energy has come a long way from when the steel-bladed fan-type windmill was
introduced to American farms in the 1870s. Small wind turbines that generate electricity are
available in a range of sizes (“nameplate capacity”) from roof or chimney-mounted 1 kilowatt
(up to $7,000 installed) all the way up to 100 kilowatt turbines mounted on their own tower
(about $80,000 installed). Many of those below 1.2 kilowatts are available in kits for the do-it-
yourself-homeowner from a home center.

However, while the power output from wind turbines might look appealing, getting the most
watts for the buck is more complicated than solar power. While the sun shines everyday even
when it’s cloudy, the wind is far more fickle. Some parts of the country are also windier than
others.. Consequently, a consumer needs to do far more research to determine how much wind
might really be available for them to harness. Wind speed varies locally at different elevations.
While it might seem to be a light breeze at street level, it might be a dead calm at 30 feet up or
even blustery at 100 feet. Hills, river valleys, trees, and buildings also have a big effect on wind
speed especially when coupled with urban settings. Local building codes and other rules must
also be considered.

Let’s say you want to add a pole-mounted residential wind turbine to your system. The turbine
cost $1800 on-line with free shipping. The 30 foot pole, also purchased on-line with guy wires
and a few bags of concrete cost $500. The total cost comes to $2300. Factor in the Federal
Energy Tax credit and the price drops to $1610.

Let’s also say you’ve done your homework on local average yearly wind speed. The new wind
turbine will generate 3.4 kWh per day in an average 12 mph wind zone (Class 4). However, the
local average wind speed is only about 10 mph (Class 2). So we now calculate that with these
conditions will produce an average of 2.8 kWh per day (about the equivalent of 8 solar panels).

By combining wind and solar together, you have an integrated renewable system that becomes a
reliable source of home electrical energy 24 hours a day, generating an average of 5 kWh/day. In
some parts of Texas, like Austin, where net metering is available, a homeowner can sell their
excess generated power to the utility company.

Maintenance is minimal for both solar panels and wind turbines. Solar panels directly convert
sunlight to electrical energy. To ensure they get the most power, they might periodically need to
have dust and leaves hosed off. Solar panels do wear out over time, losing on average a watt of
generating capability over 20 years. Wind turbines usually only have 2 moving parts that are
exposed to the weather. Blades are typically bolted onto the hub which is protected by a nose
cone. There is also the pivot that allows the wind turbine to swivel into the wind. Both of these
can easily be replaced with parts from the manufacturer.

Something smaller: the Grid-Tied System

A grid-tied solar/wind system retains a connection to the utility grid. That means you will still be
a utility customer but you will offset the energy you use from the utility by making your own.
Right now, a Texas homeowner can walk into their favorite home center and buy a solar power
kit that will generate about 1230 watts for home use for around $7,000 (10 panels, power
cleaner, and inverter). Deep cycle storage batteries can also be added to a system; they generally
cost about $250/each and last ten years.

On average, these panels alone would make about 4kWh for daily use and knock off 120 kWh
from the monthly bill for a savings of up to 12% for a typical 1000 kWh bill of $119 (11.9
cents/kWh) that means a monthly savings of about $14.24 or $171.36/year.

Energy prices spike and the price paid for each kWh will vary during the year, trending higher
over time. With this in mind, the return on a solar energy investment might in fact only take 15
years or even less. Plus, consider that 12% energy savings is three times what you’d get from
putting that initial $7,000 in a bank.

Another way a solar energy investment pays for itself is by increasing your home’s value. Most
home mortgages are for 30 years, yet few consumers live in their homes for that long. According
to the US Department of Housing and Urban Development, a home’s value rises $20,000 for
every $1000 in reduced yearly electricity costs. So even if you don’t remain in your home for 30
years, you will recoup much of your investment upon the sale of their home. Remember, too, that
as solar panel technology improves, the homeowner can swap out old panels for newer, more
efficient ones that cost less. These are just bolted onto the rack and plugged into the circuit. Over
time you can save even more money on your bill, and even sell energy to the electric company
by expanding and upgrading both your panels and batteries.

So what do you do with that money that you are saving every month by not buying electricity
from the power company? One Block Off the Grid suggests saving the money to send kids to
college. By investing in a residential renewable energy system when your children are born, the
money you will save in the course of 18 years could grow to over $118,000.

To get a good idea of how good your location is visit the National Renewable Energy website In
My Back Yard.

About Bounce Energy:

Bounce Energy is a based in Houston (www.bounceenergy.com) . Bounce Energy's goal is provide more
than low Texas Electricity Rates to our customers. With innovative and flexible plans, excellent customer
service, and superior customer rewards, Bounce Energy offers a unique approach to Texas electricity.