Lower costs are almost certainly one reason for this surge in PV installations. SEIA reports that in four years the price of the average solar panel has decreased 64 percent, and from 2013 through the second quarter of 2014, the installation cost of a system dropped 9 percent year-over-year to $2.73 per watt. Of the three market segments for solar energy system installations -- residential, business, and utilities -- residential accounted for 247 megawatts coming online from 2013 to mid-2014 in the U.S. More than half a million American homes and businesses now have solar installations.
In Europe, the solar energy picture is even sunnier. According to a post in The 9 Billion on October 6, 2014, European countries, in particular Germany, may be closer to making BigGrid energy a dinosaur. Small renewable power systems already account for more than 30 percent of Germany's power generation, and small battery storage solutions may, according to global financial giant HSBC, contribute to making a home solar system with battery storage in Germany cheaper than residential grid electric power by 2020.
Here in the U.S. small solar energy system production is in its infancy by comparison, but proponents see promise. Robert Damrau, with Western Regional Sales for Nevada Solar Designs, a PV installation company specializing in off-grid systems, speculates that Elon Musk, the owner of both SolarCity, a solar energy system leasing company, and Tesla, an electric vehicle manufacturer, "will align a combination of electric vehicle transportation (EVT) production with private solar maintained lithium battery electrical systems, removing the need for BigGrid electrical service for residential power appliance consumption -- and EVT overnite recharging." Tesla recently announced plans to build a lithium ion battery Gigafactory in Nevada.
Is BigGrid getting scared? According to an article in Slate on September 24, 2014, by Josh Voorhees, powerful conservative lobbies are pushing hard for policies that allow utilities to charge additional fees to residential solar energy producers who sell excess power back to the grid. This could be the residential customer, for example, or a solar leasing company. Will that deter the future growth of residential PV installations in the U.S.? Voorhees says that utilities companies "...view the rooftop panels as an existential threat given that they allow consumers to become their own energy producers. Such fears will only grow as the technology becomes cheaper and as companies develop cost-effective ways for homeowners to store the excess energy their panels produce."
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Despite the possibility of roadblocks, small solar energy systems appear to be making enough serious inroads to be here for the foreseeable future. If you are one of the many homeowners who are thinking of installing PV panels, take the time to research whether they are right for your home and your finances before you jump on the bandwagon. Start with these considerations for buying a residential solar energy system:
- Have you already implemented other energy-efficient measures that could make buying a smaller PV system possible?
- What is the condition of your roofing, your geographic location, and your home's orientation?
- What are your regular patterns of electricity usage?
- Do you plan to connect to the grid?
According to Damrau, "Almost anyone who has AC power provided to their private home or business with a south facing exposure is a candidate for adding a grid-tied solar system. The basic selling model to consumers is for single family homes, including manufactured structures."
If you live in an attached home, such as a townhouse, duplex, condominium or apartment -- situations where you don't own the property, the property rights, or enough area to install PV panels -- you may not be able to install your own system; however, solar garden communities may be a way for you to gain access to solar energy. As of October 2014, ten states had policies in place to encourage and promote shared community solar programs.
For those homes that do have the potential for a residential PV installation Damrau says that "...geographical location will drive the daily solar array output production performance. Beyond the actual latitude site location, local weather patterns play into the yield evaluation." For example, some coastal areas of California, the state with the most residential solar energy system installations, experience morning fog. A little further inland, however, optimal solar exposure may be typical throughout the daylight hours. These variations need to be considered when evaluating the projected ROI for an installation.
Which homes benefit most from installing small solar energy systems? According to Damrau, "Homes heated electrically or running heat pumps can surely offset their monthly bill by adding a grid-tied solar system," as well as "any home running AC-powered air conditioning." On the other hand, he adds, "Homes that heat with oil or gas won't receive any benefit from solar electrical generation other than offsetting the cost to run the AC fan circulating the air or water in the heat radiating elements."