Solar System cuts power bills in half returns 7% on investment!

 

How disheartening, all my work at trying to educate the public to stop the bleed of public money (and private) for solar power systems and some clown posts the following comment.


The Nelson Community Solar Garden last december it made 525kWh. Nelson hydro makes power for less than a penny .0087c/kWh.  525 kWh x .87 cents= $4.50.  Business case $400,000 payments $2000/mo for 25 years.  



“my parents installed solar several years ago on their New Denver home saving 50% on their power bill and making a return of 7%!


REALITY THEY ARE PAYING FROM $1300-$1600/YR FOR SOMETHING THAT PAYS THEM MAYBE $350/YR.



Re comments Nov 30 on the NelsonTalkz facebook page



I asked him to tell me how many kW of solar they installed, I could show him the economics.



I tried to help him understand by providing my link to my blog post it clearly wasn't read or not read with comprehension.


I PM'd him saying these comments hurt all my work at trying to educate the public.


What does he do, sends me his economics. His background in solar? Maybe connected

to someone who sells solar systems.


My background, I retired as an Electrical Electronics Engineering Technologist supervisor from possibly the largest provincial user of remote solar power systems, over 122 remote sites when I retired. I know how to calculate solar value, I am not an opinion as one city councilor said to me in regards to the

Nelson community solar garden scam.






The REAL ECONOMICS


I don't really need to know the details for his parents New Denver solar system. From what he

offered I can make reasonable accurate costing. If this isn't their exact system, all the math

applies just reinsert different numbers.


His parents have a well insulated 1200 sq ft home burning wood and they travel so their power use is low? Minimal electric use? That actually makes things worse, details below.


He mentions 21K, $21,000 I presume installed, on a 1200 sq ft home.





A 1200 sq ft home roof might hold from 4-5kW of solar panels, I will presume 4.5 kW.


$21,000/4500 watts = $4.66 per watt installed, reasonable and agreeable costs from a few years ago.



That figure makes sense and would agree with costs if installed several years ago as he says.

One might get a cheap system today for $3/watt. Real cheap maybe $2.60/watt


I supply simple math in reality its a complicated spread sheet of estimates of future power costs inflation and borrowing re amortizations, replacing inverters, under performing or damaged solar panels, lost investment opportunity, solar panels aging making less power every year and their cradle to grave toxic waste if they last 25 years, leaky roofs, insurance issues, fire fighting issues all coming

And worthless warranties, 25 years? Hello? Anyone with life experiences knows these are worthless!




I don't care how you try to slice it and dice it and twist and spin it, there is no payback, never will be

and its a total waste of money period. Every kW of grid tied solar in BC is adding to the province's carbon footprint, nothing is cleaner or greener than our water power.


THE MATH


$21,000 borrowed at 3.5% for 25 years is annual payments of $1300/yr for 25 years!


They   PAID CASH? Lost investment opportunity at 6% return $1600/yr.  $40,000 in 25 years.

(my long term conservative investments pay 6%)


New Denver solar data suggests 4.5kW of solar will earn $ 386/yr.

950kWh/kw/yr installed  x 4.5kW installed =4275kWh x 9.3c/kWh

(Balfours cheap solar systems from grant money make 700kWh/yr)


How does this return 7% per year? Costs shown above from $1300 to $1600/yr to make $386????


He mentions Fortis and residential rates of 15c/kWh. New Denver is BC Hydro

their residential rate is 9.3c/kWh.



He says they make money selling power to the grid. Anyone installing solar now will only recevie

3c/kWh from BC Hydro. Their entire year of solar 4375 kWh x .03c/kWh = $131.00.


Those that already have solar will be paid retail until 2024, then they will receive the 3c/kWh.














His parents still have the BC Hydro basic costs .2069c/day = $75.50 plus taxes and rate rider etc.

The average home according to BC Hydro uses 11,000kWh/yr. at 9.3c/kWh =$1023/yr.

  Their solar system made 4275kWh leaving a balance of 11,000-4275 =6735kWh x .0935c/kWh = $628/yr.

Plus basic, taxes etc., they still pay BC Hydro around $750/yr.

I'll let you put the numbers together.


His neighbor who did nothing put $21,000 into investments in 25 years has at least $45,000.


His parents pay $1300 to $1600 or more annually to save $$386 in power.


They have the risk of a leaky roof, will be replacing inverters in 10 years (hundreds) solar panels age making less power every year, become toxic waste if they last 25 years, their life expectancy.


In 25 years they have toxic hazardous worn out solar panels, leaky roof, insurance costs, hazardous

disposal costs and have paid thousands more for solar power over the years.

They took 50% off their power bills and get a 7% return??????????????????

They add to the provinces carbon footprint, nothing is cleaner or greener than our water power.


Its far more complex don't even try to defend this with me I will blow you out of the water.

I haven't even begun to get into the real big picture of what solar is to this province of water power.



He says New Denver is a sunny spot. Penticton we know is sunny, the city studied solar said

it would have to be heavily subsidized, they didn't do anything.


Kelowna studied solar the BC Utilities Commission (watchdog for Kelowna electric utility) said it

was of no benefit to anyone and denied the project.


I could go on.  Yes I am frustrated by comments like this and the general public believe this nonsense.



Norm Yanke

Electrical Electronics Engineering Technologist supervisor retired.



Comments

Post a Comment

Popular posts from this blog

Nelson Bike Route Grant Application FRAUD?

Image
In My opinion this grant application is designed to extract the maximum amount available, from the  $500,000 available, why didn't they go for the full amount? What number is correct, or is it all a guess? The first newspaper story shows $670,000 with $180,000 from the city. I have seen $650,000, the application I have shows $608,000.  At the public meeting the city planner upon my questioning about costs stated there was a 40% contingency built in. The grant suggests 20% contingency maximum, so why is he telling me 40%?                               UPDATE:   City council meeting June 2  High St. one way is not going ahead to be reviewed at a future date. A major part of the application costs, is the application amount adjusted? I have asked the city councilor on the project if there are any quotes supporting their costs. For example over $37,000 for signage and painting on Third St., about 1 km. Over $38,000 for signage and painting on High St. about 1.2
Read more

UNDERSTANDING THE VALUE OF SOLAR IN THE WEST KOOTENAYS

Image
  UPDATE FEBRUARY 2022 FINALLY SOME HONESTY   Solar garden costs 47c/kWh, and they said it would reach parity in 7 years.  Nelson hydro wholesale cost of power generation about 2c/kWh,  Solar is about 25 times more, PARITY??????? Below quoted from the city website  Utility companies use Levelized Cost of Energy (LCOE) as a metric for investment planning. It establishes a common comparative baseline across various forms of discounted energy generation over their lifetime. An updated  project analysis  completed in February 2022 concluded that 248 panels were installed from November 2015 to June 2017 at an actual cost of $331,372 generating an average of 66,622 kWh annually, with a customer investment of $221,657.30. Calculating the LCOE from an investment perspective using the project and maintenance actuals to the end of 2021 results in an LCOE of $0.47/kWh.   At least 25 X  more than Nelson hydro's wholesale cost of power! And it adds to our carbon footprint, nothing is cleaner or
Read more

The Real Engineering Report on the Economics of Solar in BC

Image
This article is not about solar but more about professional ethics, dishonesty, public deception and accountability........there is NONE> I complained to the Professional engineers Society of BC, mayor council and many others.  So far, any eco website or green related media block, deny, and disallow my comments and information, they have an agenda, its not about public money and economics.  As long as this continues our public pockets will continue to be picked for this waste of public dollars. Update 9/2020  The Nelson hydro manager, engineer who brought a  phony engineering report to city council showing them the Community Solar Garden  had a business case has left,  unaccountable  for his dishonesty and disrespect to his professonal ethics, his mayor and council, the city taxpayers and Nelson hydro ratepayers.  This leaves the CAO and others still accountable for all the dishonesty.  I provided all the information to the previous mayor and council, met with the hydro engineer, c
Read more