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I just got this info from Bob Skinner of Hire Electric ( bob@hireelectric.com). I hope to attend the one of the meetings to see what the program is like, as should anyone interested in a lower cost solar installation:
We will be having our solarize Tri-Cities meeting on the following dates and locations in June. Not only will these meetings be a wonderful opportunity for folks to get acquainted with solar but will be required for those who want to participate in the program. Here are the dates and locations: June 18th, 7pm at Kennewick Library on Union. June 22, 10:30am at the Pasco Library, 320 W. Hopkins. June 25, at 7pm at the Richland Community Center.
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I just got this info from Bob Skinner of Hire Electric ( bob@hireelectric.com). I hope to attend the June 18 meeting to see what the program is like :
We will be having our solarize Tri-Cities meeting on the following dates and locations in June. Not only will these meetings be a wonderful opportunity for folks to get acquainted with solar but will be required for those who want to participate in the program. Here are the dates and locations: June 18th, 7pm at Kennewick Library on Union. June 22, 10:30am at the Pasco Library, 320 W. Hopkins. June 25, at 7pm at the Richland Community Center.
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« Last post by Brian on May 06, 2013, 12:17:20 pm »
Also, we just posted a Cashflow & IRR calculator up in the announcements section if you guys want to play around with it: http://www.richlandcares.com/announcements-7/solar-cashflow-and-rate-of-return-calculator/msg158/#msg158
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« Last post by Brian on May 06, 2013, 12:06:45 pm »
Here is a simple excel-based tool that the City has built for those of you who are considering installing home solar panels. Just plug your assumptions into the green cells and the spreadsheet will automatically calculate your rate of return and annual cash flows over 25 years. A couple notes on the assumptions: • Start year will impact how many years of Investment Cost Recovery (ICR) payments you’ll be able to claim from the state. For the calculator, we assume you complete your installation in the middle of the year since that’s when the State issues payments. • The default cost estimate is $5,000 per kW but this will vary depending on what type of system you install. • Installed Cost subsidies include the Federal Tax Credit and any local programs you may be able to take advantage of. • Capacity factor is assumed to be 16% (1400 kWh per kW) but this will vary depending on angle/shading/etc. Your contractor can give you a better estimate. • Annual Production Degradation will also vary by panel type. • ICR payments will vary depending on whether you use Washington-made panels and/or inverters. Payments vary from 15 cents per kWh all the way up to 54 cents per kWh. • Richland customers pay a rate of 6.16 cents per kWh. • We also added in a line for O&M expenses. Your panels will likely be covered under a long warranty but you may wish to clean them now and then. Your time is worth something so just plug in whatever you feel the work is worth to you. • The City charges an initial processing fee and an ongoing annual fee to read your meter and fill out the paperwork associated with the ICR. This expense goes away after 2020 when the ICR expires. More information on the ICR and Net Metering programs can be found here on the City's website. As always, let us know if you have any questions. We are happy to help! Once again, here is the Calculator. Let me know if you have any trouble downloading/opening it. Please keep in mind that this is just a model and is only as good as the assumptions. Every project is different and the City makes no guarantees that your project will fit the forecast perfectly.
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« Last post by Brian on May 06, 2013, 10:41:00 am »
Thanks, Eric. FYI, our residential rate is 6.16 cents per kWh.
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I want to be sure people are aware of the time limits on some of the incentives:
"No WA sales tax on system purchases" - this lasts through June, 2013. Don't dawdle if you are planning to install a system soon!
"WA state production payments" - these end mid-2020. The payments are an important factor in the ROI you make. It varies from 15 cents/kWh for panels and inverters made outside of Washington, to 54 cents/kWh for panels and inverters made in Washington. The "Washington" systems cost more to install, but there are good choices in panels and micro-inverters (inverter per panel) now that can make Washington component systems a good choice.
"30% Federal tax credit" - this lasts through 2016.
Note that some areas offer additional incentives; e.g., If you live in Walla Walla, Columbia or Franklin Counties you can also get a 20% cash incentive. Check websites relevant to where you live, and talk to dealers/installers about the incentives, because my information may be incomplete.
Also, the price you pay for electricity is an important factor in your ROI. Richland has pretty cheap electricity at just under 7 cents/kWh (bad for my ROI, good for Richland customers!), but other places can be significantly higher. You have to run the numbers for your situation.
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System CostMy system cost $25,000 installed ($5/watt) over a year ago. Value of power producedTom's number is low, because he did not apply the state or city payments properly: - the state's production payment of 15 cents/kWh is paid for every kWh produced, not just the excess.
- I avoid paying the city 7 cents for every kWh produced, because I either use it in the home, or it's sent out to the grid, earning a kWh credit that is subtracted from the electricity I take from the grid.
[/li] [/list] This means I'm effectively earning a total of 22 cents/kWh for every kw H produced. The first 12 months of operation yielded 7000 kwH, for “earnings” of $1540. Return on investment (ROI)For my situation, the ROI was projected to be about 7%. This number is based on system cost, the Federal tax credit of 30%, the City one-time payment for renewable credits (no longer available), the state production payment of 15 cents/kWh (ending July, 2020), the city electric rate (adjusted for 5% increase/year), climate, the measured shading, and some degradation in panel output, for a 25 year period. Reducing the system cost According to Hire Electric, my contractor, my system would be even cheaper now, as panel prices have continued to decline. Installing a system yourself is a practical option, especially using the “inverter per panel system” like mine, which avoids the safety hazards of high voltage DC, makes the system easy to design for any number of panels, and only 240 VAC wires go into the house – no big inverter to mount. It's also much more effective where shading is a problem, and provides full internet monitoring by the inverter manufacturer of each panel and and inverter for power output and proper operation. The panel mounting systems are available for many types of roofs, and is dead simple for the usual asphalt shingle roof. The wiring should be done by (or with) someone who knows the code, but since it's just standard 240 VAC wiring, almost any electrician can do it. The installation components are available as “kits” from a number of sources, including Costco, Home Depot, and local dealers. One dealer has installed a 74 panel system at his home in Kennewick, and offers components and assistance in the design and installation of your system. The cost saving is substantial if you do your own work, perhaps hiring an electrician as needed. If DIY is interesting, I suggest starting with his website: http://www.solarkitsllc.com/index.htm. Another method of reducing cost are group purchases of systems. There have been workshops about this in the Tri-Cities, and I believe Hire Electric is the contractor for the first group – contact them for info if this appeals to you. Here's an explanation: http://hireelectric.com/2013/whats-solarize-mid-columbia/Investment qualityIf your goal is only an investment, you might be better off following Tom's advice. A solar power system on your home is a long term investment of 25+ years, and it's not easy to sell. For a more liquid investment in solar power, there are “community owned” solar projects you can join to share in the costs, credits, and power sales. I don't know if there are any in development here, but here's a starting point: http://nwcommunityenergy.org/solar
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« Last post by Tom on May 04, 2013, 10:27:18 am »
So, what is the ROI (return on investment) for a solar power system in this area? To figure that out you need to know at least two things: a) the total cost of the installed system and b) the value of the power produced. In this era of government manipulation of public behavior you will also need additional information on subsidies and tax incentives.
First, what is the cost of the system. A quick internet search produced a figure of $6,000/kW. This would make Eric's system cost $30,000 ($6000 * 5). Yeah, you can buy the parts, climb up on your roof, and install it yourself, but that is not realistic.
Second, I used the link provided by Eric to estimate the value of the power produced. Assuming you have an unobstructed south-facing roof, it is about $403 per year for this area. If you have shade trees or the roof faces southeast or southwest, your production will be less.
Ok, let's assume everything works perfectly and no maintenance is required (like climbing up on the roof and cleaning the panels). The basic ROI for this situation is 1.34%. Now, let's throw in the 30% tax credit. This increases the ROI to 1.92% by cutting the system cost to $21,000 (the difference, $9,000, is paid by the rest of us taxpayers who get NO ROI - it does NOT go away!). This is still pretty lame, so let's go whole hog and assume we sell EVERY kW to the utility at 15c/kWh AND we still get the tax credit. Now the ROI jumps to 4.46%. Of course, that is subsidized by all Washington rate payers who, sooner or later, will get wise to the scam. This isn't realistic anyhow because you can only sell your excess power (power generated less power consumed) and the program terminates in seven years. The final ROI will depend on your particular situation, but will not likely exceed 3%. As an alternative, go read the June issue of Kiplingers for income producing investments that yield 4-10%. And you don't have to climb up on your roof!
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« Last post by Brian on April 23, 2013, 08:34:05 am »
There's another one coming up on Thursday if you're interested in attending:
Solarize Group Purchase Meeting, 7pm, Franklin PUD, 411 W. Clark St., Call #509-948-3910
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« Last post by Brian on March 06, 2013, 08:59:31 am »
Hi Eric,
They had 20 - 25 people there, maybe a quarter of which already have solar installations. Unfortunately, no one was interested in taking the lead so no plans were made to go forward with a project. I'll let you know if we hear anything further - you never know when people might change their minds.
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