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.



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