Our Solar Photovoltaic System

by Larry Kerschner

We installed a 4 Kw solar photovoltaic system at our home a little over a year ago. Over the course of the first year we produced about 25% of the total electricity we used.  Obviously less in the winter than in the summer. During the period of mid-June through mid-July of this year, we produced 63.5% of the power we were using. 

Washington State is at a similar latitude as Germany. Germany’s annual solar resources are roughly comparable to those of Alaska. We have a greater solar potential here than in Germany. The German government, unlike ours, has subsidized renewable energy for years.  By the end of 2012, Germany had installed about 30 Gw of solar capacity, while the U.S. at the same time had installed just 6.4 Gw of solar capacity. 

On June 6, 2014, solar power in Germany actually produced 23.1 Gw of power (equivalent to 20 medium-sized nuclear reactors) which met over 50% of the nation’s demand for electricity that day.  Solar capacity and solar production continues to increase each year in Germany. 90% of solar panels in Germany are on rooftops. 74% of energy in Germany is produced by renewable resources with wind power second to solar.   

Germany plans to be producing 100% of its power needs from renewable resources by 2050. A recent analysis showed that, once all the costs of the systems are factored in, the price of commercial solar in Germany is equal to retail rates from other sources. Solar installation in Germany is cheaper than in the U.S. in part because their industry is so much larger. Solar permits, inspections, and grid-connection fees are cheaper and much less is spent on marketing.

The price of a solar PV system in Washington State can vary depending on the site and whether structures have to be reinforced or erected. Currently there is a 30% federal tax credit (a credit not a deduction) currently in place at least through 2016, production incentives, and net metering. (Net metering is the payment the utility makes to you for all the power you produce, whether you use it or it goes back out to the grid. They pay you up to 54 cents per kWh, up to $5,000 per year if all the components of your system are produced in Washington State. This payment comes to you once a year in the form of a check from the utility. This is currently in place at least through 2020.)

With these incentives and what appears to be an 83% overall efficiency, our system should pay for itself in 10-11 years.  The panels we have are rated to be at peak efficiency for 80 years. Maintenance of PV systems is minimal with panels needing to be cleaned every 1-5 years.  While the upfront cost may be pricey, if you think you will be staying in your house for a number of years it is worth checking out a photovoltaic system. 

Even if you aren’t sure how long you may be living in your current house, several national studies show that properties with solar sell for more, proportional to the value of the system, and sell faster. If you install solar on a property owned through a business, 50% of the system cost can be depreciated in the first year, and the remainder over the following 4 years. That is 5 years to 100% depreciation.

There is no reason why we cannot become the solar power producers in the United States as Germany has done. It will only take political will.

Leave a Reply