By: Deanna McArthur
Summer is in full swing. The sun is shining and those who have solar systems installed on their property are seeing a big uptick in generation, and big credits on their electricity bills.
With the introduction of solar incentive programs such as the Residential and Commercial Solar Program (RCSP) from Energy Efficiency Alberta, Banff’s Solar Photovoltaic Production Incentive, the Medicine Hat, HAT SMART program, and the new Change Homes for Climate – Solar rebate program in Edmonton, the new installed solar capacity in the province is growing steadily. But even with solar becoming more common along with more discussion around the topic of solar power, there are still many misconceptions and myths plaguing the industry from people that are unaware.
In the hopes of busting a few of these myths, we asked some experts in the solar field to join in a conversation about an industry that is changing the way we generate electricity.
Who We Spoke To:
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Green Alberta Energy (GAE): How do you think solar power has changed in Alberta in the last few years?
Jennifer D’Aoust (JD): Prior to the Residential and Commercial Solar Program (RCSP), agricultural and municipal solar was on an upward trend due to the On-Farm Solar Programme and the Alberta Municipal Solar Program, however installations have increased considerably since the inception of the RCSP. Many Albertans had been eagerly waiting for an incentive program in our province to fulfill plans for going solar. The program has a goal to increase micro-generation solar by 48 MW (DC) by 2021. So far, it has assisted 6.5 MW, which accounts for 733 installations on homes, businesses and non-profits out of the 23,000 MW of micro-generation solar presently in the province. They are forecasting that 15 MW total will be installed by March 31, 2019 under the programme.
Coupled with the introduction of the RCSP, the increase in solar installations can also be attributed to the continuing decrease in system costs, which were caused by many factors, including the decrease in the price of solar modules, racking and inverters, the increase in ease by which the systems can be installed, and the increase in utilisation of the skilled solar labour pool.
Gordon Howell (GH): Solar capacity is growing steadily in Alberta. I have been producing a simple monthly PV summary report for Alberta showing its growth since 2008. 2017 saw 565 PV systems installed, which was an annual increase in systems of about 33%. Click here to read the most recent report. In the last few years, installing solar has become a lot cheaper and faster, and the technology has become more efficient.
David Price (DP): I installed my first 4 kW in 2014 and it is not really clear to me that solar power has changed much since then, other than the fact that there are a number of rebate programs available now. The rebates provided the impetus for me to install another 4 kW in 2017. Obviously, the cost per watt has dropped a bit and the technology has evolved.
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GAE: What do you think is the most common misconception about solar power?
GH: People don’t understand their electricity bills; they don’t understand electricity, and they don’t understand solar. Many people think that solar is still really expensive, but it is the cheapest-cost electricity option for homeowners even without the Alberta government incentive. People take a long time to change their perceptions. One of the greatest strengths of solar energy is that it is available to everyone; they don’t need deep pockets in order to engage with it. At the very same time, one of the greatest weaknesses with solar energy is that it is available to everyone. Everyone thinks that they can engage with it even though they may not have the technical background to understand it well. People act on their assumptions and presumptions about solar regardless of whether they know it well. I have seen this for many years, and I still see this today. Here is a presentation I have developed to explain the very basics of energy and power.
JD: I think the most common misconception about solar for your home or business is that it will zero your electricity bill. Solar will lower your electricity bill, but there are fixed costs associated with being grid connected. Another misconception is that solar modules may be damaged during hail events or severe storms. Solar modules are incredibly resilient and can likely withstand anything Alberta weather can throw at them.
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GAE: One of the most common comments we get from Albertans is that if it’s a cloudy day, solar systems are basically useless. Is this true?
JD: Solar PV systems generate the most electricity on clear, sunny days. On a cloudy day, typical solar systems can generate a smaller amount. The amount will vary depending on the density of the clouds and does vary slightly with the type of solar module; some kinds of modules have slightly better efficiency in diffuse light. In short, they still generate, just less.
GH: The output of a solar PV system depends on the amount of solar irradiance that hits the array of solar PV modules. The output of solar PV arrays is measured and rated at 1,000 W/m2 of solar irradiance. If it is a really cloudy day, such as 100 W/m2, then the PV array will generate 1/10 of its rated output. Just like a car, if we push down on the gas pedal only a bit, the car won’t go very fast.
Does 1/10 then mean that it is “basically useless”? It depends on what you want from a solar PV system. If you have a 6 kW PV array and it is generating 600 W on a really cloudy hour and you are using 500 W, then you are still getting 100% of your electricity from the sun and exporting to the grid – why would that be considered useless? The major value that homeowners want from a PV system is the amount of energy being generated over a year, and not how much the PV system generates at any one point in time.
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GAE: Another common comment we have heard is that since we have 6 months of winter here in Alberta, solar PV systems are useless. How do solar PV systems perform in the winter months?
JD: Solar modules are most efficient on cold days. During winter in Alberta, we have an abundance of those, however there is something to be said about snow cover. An ongoing study being done at the Northern Alberta Institute of Technology (NAIT) has a reference system with modules set up at varying tilt angles. The reference system demonstrated that clearing your array of snow in the winter offers a gain of up to 5% more annual energy depending on the array tilt angle. Fortunately, in Alberta we have many sunny days in the winter, which can result in clearing snow off the array if the air temperature is warm enough. For more information on the NAIT study click here. We are also lucky that most of Alberta doesn’t get the volumes of snow that some provinces do (e.g. by the great lakes and east coast).
GH: Solar PV systems perform just as well when they are covered with snow, as they do at night. I always find it funny that people complain about solar PV with snow cover or clouds, but they never complain about how much it generates at night, and yet night-time reduces that annual energy generation by 50%, whereas clouds reduce the generation by around 25% and snow reduces the generation by 5 to 10%.
The amount of generation in the winter depends on the amount of solar energy hitting the PV array. We have less solar energy on a horizontal surface in the winter than the summer, but we have MORE solar energy on a vertical surface in the winter than the summer.
But, who cares?! The key to solar PV is the amount of energy that is generated over the year and not at any one point in time.
DP: My current system has only been fully operational from mid-September 2017 so I don’t have a full year’s data. Below is a graph of production for the last 10 months, where the black bars show my electrical energy consumption for each month (averaged over 10 years) and the green bars show my monthly solar generation, excluding August and September 2018. As you can see, summer generation is two to three times higher than the monthly average consumption. Interestingly, May is the highest producer even though the maximum W/m2 of incident solar radiation at ground level is less than in June. In May there are significantly more clear days, so there is significantly higher integral power generation.
Winter months are dark of course, but the big problem is snow accumulation on the array which can persist for weeks if temperatures stay several degrees below zero. This was the problem in February and early March, when, as many will recall, snow cover seemed unusually persistent! I cannot help thinking my shallow roof pitch was an added disadvantage, but the experiment at NAIT shows it probably doesn’t make any significant difference.
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GAE: A common argument about the use of solar PV systems is that the carbon footprint of their manufacturing and the lack of recycling resources available for when they reach the end of their life outweighs any kind of environmental benefit they would make while in operation. Can you provide any insight into this?
JD: This is a great question. Life cycle is a very important issue with any technology, meaning one has to consider the total carbon footprint used to create the module relative to emissions from the electricity it offsets. The best response I can give is in this paper developed by the National Renewable Energy Laboratory (NREL). This study shows that the carbon input to solar PV is only marginally above other renewable energy sources such as wind, and significantly lower than coal-fired generation. Given Alberta’s grid is largely coal and natural gas, installing solar PV to offset grid electricity results in considerably lower levels of emissions over the life of the system.
Currently, given that solar PV is still somewhat new, there isn’t a huge market driver to recycle them yet because the majority of PV modules and inverters are likely still out there functioning. I am confident that 40 years from now when many of the currently-existing PV modules are reaching the end of their life, there will be a robust recycling solution because they are composed of many materials that have value. This also applies to inverters in 20 years.
GH: This myth is fascinating. PV modules are expected to last from 40 to 100 years, and here we have people complaining about recycling something that won’t need recycling for 40 years! Yet, they willingly go out and buy computers and cellphones that need recycling in three years. Currently, there is very little available for the recycling of PV modules, because there is no need for it; they are too new. A PV module consists of glass, aluminum, plastic, tedlar, copper, and PV cells, and the PV cells consist of very thin sheets of silicon, boron, phosphorus, and aluminum. It is an electronic product that can be recycled much easier than computers.
The energy payback of PV systems is just less than two years in Alberta. The carbon footprint payback depends on where the PV systems (cells, modules, racking, inverters, and wiring) is made. If they are manufactured using energy that has the same GHG intensity as in Alberta, then their carbon payback is similarly just less than two years. If they are manufactured using energy that has a greater GHG intensity as in Alberta, then their carbon payback is longer. If the manufacturing energy is twice as dirty as Alberta, then the carbon payback is four years, if the manufacturing energy is half as dirty as Alberta, then the carbon payback is one year.
I wonder, do people ask these questions of coal-fired electricity (3.7-year payback), methane-gas fired electricity, cars, or cell phones? Nope, they just ask it about solar and wind.
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GAE: For an averaged-sized home, what kind of solar system would someone need to make an impact on their utility bills?
GH: I actually don’t care about the size of the home; I care about the number of people in the home and their choices and behaviours. Homes don’t use electricity; people do. Any sized PV system will reduce peoples’ electricity bills; the amount of the effect depends on their PV system size.
An average homeowner in Edmonton (which uses 7,200 kWh of electrical energy per year) would need a 6.3 kW PV system to generate the same amount of electrical energy as they consume. An average homeowner in Calgary would need a 5.5 kW PV system to generate the same amount. Click here to see the effect of a PV system on a homeowner’s annual bills.
JD: As mentioned, this all depends on what your goals are, coupled with your electricity use. You should consider your peak consumption (the most expensive month) and your average month. Any sized system will reduce your electricity bill as it will offset some of your consumption, however to determine that optimal size for your needs I would recommend engaging a professional to perform an analysis using your electricity bills. There are many things to consider when choosing to go solar, and I would encourage anyone thinking about investing in solar to look at what energy efficiency measures they can do in their home to lower their utility bills as well as investing in solar. If you have determined that solar is for you, there are a number of tools available such as the Solar Energy Society of Alberta (SESA) solar consumer guide. For reference, the average residential system size in the RCSP is 7.4 kW.
DP: My house is about 3,000 square feet above grade and is kind of an unusual house. It has a south-facing gable roof pitch about 60 feet long (east to west) which would allow me to install many more solar modules than I have at present (although chimney chases at each end cast shadows in morning and afternoon which would interfere if both of my roof were fully stocked). My system is nominally 8 kW, though the newer 16 PV modules are 305 watts, and the older 16 are only 250 watts. My total outlay, after a rebate of about $4,500 for the new PV system, was about $25,000. Here is what my electricity bill looked like between May 24 and June 20 this year. Incidentally, I did not consult a professional on sizing my PV system. I have kept records of my monthly energy consumption for more than 10 years and I used that data to do my own analysis. Really, it’s not rocket science.
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GAE: Many believe that solar is just simply too expensive for them to even think of adding it to their home. What would it cost the average Albertan to add a system to their home?
JD: The cost really depends on what size of system you want or need, which depends on your electricity consumption and how much of that you wish to offset with your solar system. As I mentioned earlier, doing your research is important to determine what size is right for you. If you have a limited budget and still want to try solar, a smaller system in the range of 3-4 kW might be a great start, knowing you can expand on that system in future years.
In the RCSP the average residential system size is 7.4 kW. The installed cost ranges between $2 to $4 per watt. It is important to note that there are many variables when it comes to system costs, including roof configuration and obstructions, equipment type, labour rates, travel required, installation type, installation location, etc. The RCSP incentive is available to offset the cost. For residential participants the incentive covers $0.75 per Watt of installed cost up to a maximum of 30% of the total installation costs, or $10,000, whichever is less.
GH: A 6.3 kW PV system in Edmonton would cost around $17,000 for an average homeowner, depending on a number of factors. The provincial rebates would give them a $4,200 cheque. The new City of Edmonton rebates would give them another $950 back, so their net cost would be around $12,000.
A 5.5 kW PV system in Calgary would cost around $15,000 for an average homeowner depending on a number of factors. The provincial government rebates would give them a $3,750 cheque, so their net cost would be around $11,000.
This is WAY less than many home improvement options or option packages for new-homes.
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GAE: How does the price of grid electricity affect the Return On Investment (ROI) of a solar system?
GH: The price of grid electricity significantly affects the ROI of a solar PV system because the savings on grid electricity is on what the ROI is directly based. Higher prices for the purchase and delivery of grid electricity means that the ROI on solar is higher. The ROI has been quite low for PV systems in Alberta in the last couple years because the wholesale electricity prices have been at 15-year lows, but this has started to change, and so the ROI for solar PV is increasing.
Sometimes I wonder whether people are really interested in the ROI or if they use that as an excuse as to why they won’t make the decision to buy a PV system. Some people say to me that they won’t get a PV system unless the payback is six years, and when I tell them that the payback on an Electric Vehicle (EV) versus a gasoline car is now six years, so they should then buy an EV, they find yet another excuse. I like the phrase “if you want something really badly, you will find a way. If you don’t want something, you will find lots of excuses.” When I hear excuses, then I know that people are just trying to wiggle out of making the decision, instead of saying “I don’t want to buy one.”
JD: The cost of electricity is an important variable when calculating your ROI. It is important to note that there are many variables in an ROI calculation and I would advise anyone considering solar to investigate the ROI calculators such as the one offered by the Municipal Climate Action Centre. A more complex one is available from the National Renewable Energy Laboratory. You can also ask your installer to help you with this. The short response is, generally, the higher the price you are paying for your electricity and its delivery, the more attractive the ROI is.
DP: The cost of electricity definitely affects the ROI of a system. I am currently on the 15 cent/kWh price offered by Bow Valley Power. This price is beneficial to me as I can change at any time with just 10 days notice and no penalty fees. Obviously, in the summer, I can make more when production exceeds consumption with a higher electricity price. Conversely, I can save more with a lower electricity price when consumption exceeds production. I suspect the optimal dates to switch from the high price to a lower price are March 21 and around September 21 (although this could be delayed until September 30). My solar system and the 15 cent/kWh price are not going to make me rich, but it certainly makes the investment more attractive. I did this not to make money, nor even to save money, but because it is the right thing to do.
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GAE: Would you suggest Albertans invest in solar?
JD: Investing in solar is an entirely individual decision that depends on a great many things, including your budget, the ROI you want for the project, your electricity consumption and your interest in using micro-generation or reducing your environmental impact. Increasing micro-generation supports resiliency. For example, having the ability to generate electricity onsite if the grid is unavailable for some reason. This is only true if your system is installed with the ability to island. Micro-generation also supports the renewables job sector.
GH: I don’t like calling it an investment; it is a home improvement option. People should only buy a solar PV system if they want a reliable ROI, a hedge against high electricity prices, clean zero-emission electricity, knowing that it is fun to generate their own electricity, knowing that it is cheaper than grid electricity over 20 years, and wanting to be a leader to their community, family, kids, and friends. If people don’t want this then that is fine, there are many other things on which to instead spend money on and that have these benefits.
DP: Yes, I would say other Albertans should invest in solar, but the caveat might be that they need to be people wealthy enough to have disposable income to invest. As a wise colleague of mine observed recently, choosing to invest in rooftop solar is a “lifestyle choice”. From my perspective it is more ethical to do this than to spend disposable income on an RV, a speedboat, a big truck, a fast car (Tesla excepted!), or on expensive foreign vacations.
For Albertans or other Canadians who are less able to invest in solar, there are likely to be other ways they can reduce their carbon footprint that are more cost-effective and/or for which subsidies would produce a greater net benefit. For example, making a house more airtight and better insulated are relatively cheap options that can be tackled incrementally, and much can be done without hiring a contractor.
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Already have a solar system installed on your home/farm and looking for a way to increase your systems ROI? There are a number of competitive Energy Marketers in Alberta offering special electricity prices as high as 15 ¢/kWh to solar PV micro-generators. Additionally, Energy Marketers in Green Alberta Energy’s network are offering an additional premium of 1 ¢/kWh on electricity exported back to the grid through the Light Up Alberta Program.
More solar resources:
With the introduction of solar incentive programs such as the Residential and Commercial Solar Program (RCSP) from Energy Efficiency Alberta, Banff’s Solar Photovoltaic Production Incentive, the Medicine Hat, HAT SMART program, and the new Change Homes for Climate – Solar rebate program in Edmonton, the new installed solar capacity in the province is growing steadily. But even with solar becoming more common along with more discussion around the topic of solar power, there are still many misconceptions and myths plaguing the industry from people that are unaware.
In the hopes of busting a few of these myths, we asked some experts in the solar field to join in a conversation about an industry that is changing the way we generate electricity.
Who We Spoke To:
Jennifer D’Aoust, Program Manager – Renewables, Energy Efficiency Alberta
D’Aoust has been with Energy Efficiency Alberta since the fall of 2017,
managing the Residential and Commercial Solar Program.
She has been instrumental in developing the program design and implementation of programs in the solar space.
D’Aoust has over 12 years’ experience working in Climate Change and Sustainability roles in the Ontario,
British Columbia and Alberta market, and is passionate about building the market for non-utility solar in Alberta.
She holds a degree in Natural Resources Management and an MBA from the University of British Columbia.
Gordon Howell, Howell Mayhew Engineering
Howell has been working in solar energy since 1977 and has become one of the foremost experts on solar in Canada. He is a solar pioneer who installed the first grid-connected solar system in Western Canada on his home in Edmonton in 1995. Howell’s solar project was the 12th grid-connected PV system in Canada and the 4th grid-connected PV system on a house in Canada. His experiences with early solar systems showed him some of the barriers that existed to the grid-connection of PV systems, which led him to join technical, regulatory, standards and policy committees working towards removing those barriers. Today, Howell is very active in designing and developing PV systems for clients through his company, Howell Mayhew Engineering, and continues to advocate for, and educate Albertans on solar.
David Price, Research Scientist
Price is a research scientist working on the effects of climate change on natural ecosystems. He says he is aware that climate change is a real and extremely dangerous threat to humanity and believes that we need to find alternatives to burning fossil fuels to bring down global carbon emissions as rapidly as possible. Price is doing his part through finding practical ways to reduce his personal carbon footprint (including installing a solar system on his home) and, perhaps, providing some leadership by example.
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Green Alberta Energy (GAE): How do you think solar power has changed in Alberta in the last few years?
Jennifer D’Aoust (JD): Prior to the Residential and Commercial Solar Program (RCSP), agricultural and municipal solar was on an upward trend due to the On-Farm Solar Programme and the Alberta Municipal Solar Program, however installations have increased considerably since the inception of the RCSP. Many Albertans had been eagerly waiting for an incentive program in our province to fulfill plans for going solar. The program has a goal to increase micro-generation solar by 48 MW (DC) by 2021. So far, it has assisted 6.5 MW, which accounts for 733 installations on homes, businesses and non-profits out of the 23,000 MW of micro-generation solar presently in the province. They are forecasting that 15 MW total will be installed by March 31, 2019 under the programme.
Coupled with the introduction of the RCSP, the increase in solar installations can also be attributed to the continuing decrease in system costs, which were caused by many factors, including the decrease in the price of solar modules, racking and inverters, the increase in ease by which the systems can be installed, and the increase in utilisation of the skilled solar labour pool.
Gordon Howell (GH): Solar capacity is growing steadily in Alberta. I have been producing a simple monthly PV summary report for Alberta showing its growth since 2008. 2017 saw 565 PV systems installed, which was an annual increase in systems of about 33%. Click here to read the most recent report. In the last few years, installing solar has become a lot cheaper and faster, and the technology has become more efficient.
David Price (DP): I installed my first 4 kW in 2014 and it is not really clear to me that solar power has changed much since then, other than the fact that there are a number of rebate programs available now. The rebates provided the impetus for me to install another 4 kW in 2017. Obviously, the cost per watt has dropped a bit and the technology has evolved.
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GAE: What do you think is the most common misconception about solar power?
GH: People don’t understand their electricity bills; they don’t understand electricity, and they don’t understand solar. Many people think that solar is still really expensive, but it is the cheapest-cost electricity option for homeowners even without the Alberta government incentive. People take a long time to change their perceptions. One of the greatest strengths of solar energy is that it is available to everyone; they don’t need deep pockets in order to engage with it. At the very same time, one of the greatest weaknesses with solar energy is that it is available to everyone. Everyone thinks that they can engage with it even though they may not have the technical background to understand it well. People act on their assumptions and presumptions about solar regardless of whether they know it well. I have seen this for many years, and I still see this today. Here is a presentation I have developed to explain the very basics of energy and power.
JD: I think the most common misconception about solar for your home or business is that it will zero your electricity bill. Solar will lower your electricity bill, but there are fixed costs associated with being grid connected. Another misconception is that solar modules may be damaged during hail events or severe storms. Solar modules are incredibly resilient and can likely withstand anything Alberta weather can throw at them.
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GAE: One of the most common comments we get from Albertans is that if it’s a cloudy day, solar systems are basically useless. Is this true?
JD: Solar PV systems generate the most electricity on clear, sunny days. On a cloudy day, typical solar systems can generate a smaller amount. The amount will vary depending on the density of the clouds and does vary slightly with the type of solar module; some kinds of modules have slightly better efficiency in diffuse light. In short, they still generate, just less.
GH: The output of a solar PV system depends on the amount of solar irradiance that hits the array of solar PV modules. The output of solar PV arrays is measured and rated at 1,000 W/m2 of solar irradiance. If it is a really cloudy day, such as 100 W/m2, then the PV array will generate 1/10 of its rated output. Just like a car, if we push down on the gas pedal only a bit, the car won’t go very fast.
Does 1/10 then mean that it is “basically useless”? It depends on what you want from a solar PV system. If you have a 6 kW PV array and it is generating 600 W on a really cloudy hour and you are using 500 W, then you are still getting 100% of your electricity from the sun and exporting to the grid – why would that be considered useless? The major value that homeowners want from a PV system is the amount of energy being generated over a year, and not how much the PV system generates at any one point in time.
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GAE: Another common comment we have heard is that since we have 6 months of winter here in Alberta, solar PV systems are useless. How do solar PV systems perform in the winter months?
JD: Solar modules are most efficient on cold days. During winter in Alberta, we have an abundance of those, however there is something to be said about snow cover. An ongoing study being done at the Northern Alberta Institute of Technology (NAIT) has a reference system with modules set up at varying tilt angles. The reference system demonstrated that clearing your array of snow in the winter offers a gain of up to 5% more annual energy depending on the array tilt angle. Fortunately, in Alberta we have many sunny days in the winter, which can result in clearing snow off the array if the air temperature is warm enough. For more information on the NAIT study click here. We are also lucky that most of Alberta doesn’t get the volumes of snow that some provinces do (e.g. by the great lakes and east coast).
GH: Solar PV systems perform just as well when they are covered with snow, as they do at night. I always find it funny that people complain about solar PV with snow cover or clouds, but they never complain about how much it generates at night, and yet night-time reduces that annual energy generation by 50%, whereas clouds reduce the generation by around 25% and snow reduces the generation by 5 to 10%.
The amount of generation in the winter depends on the amount of solar energy hitting the PV array. We have less solar energy on a horizontal surface in the winter than the summer, but we have MORE solar energy on a vertical surface in the winter than the summer.
But, who cares?! The key to solar PV is the amount of energy that is generated over the year and not at any one point in time.
DP: My current system has only been fully operational from mid-September 2017 so I don’t have a full year’s data. Below is a graph of production for the last 10 months, where the black bars show my electrical energy consumption for each month (averaged over 10 years) and the green bars show my monthly solar generation, excluding August and September 2018. As you can see, summer generation is two to three times higher than the monthly average consumption. Interestingly, May is the highest producer even though the maximum W/m2 of incident solar radiation at ground level is less than in June. In May there are significantly more clear days, so there is significantly higher integral power generation.
Winter months are dark of course, but the big problem is snow accumulation on the array which can persist for weeks if temperatures stay several degrees below zero. This was the problem in February and early March, when, as many will recall, snow cover seemed unusually persistent! I cannot help thinking my shallow roof pitch was an added disadvantage, but the experiment at NAIT shows it probably doesn’t make any significant difference.
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GAE: A common argument about the use of solar PV systems is that the carbon footprint of their manufacturing and the lack of recycling resources available for when they reach the end of their life outweighs any kind of environmental benefit they would make while in operation. Can you provide any insight into this?
JD: This is a great question. Life cycle is a very important issue with any technology, meaning one has to consider the total carbon footprint used to create the module relative to emissions from the electricity it offsets. The best response I can give is in this paper developed by the National Renewable Energy Laboratory (NREL). This study shows that the carbon input to solar PV is only marginally above other renewable energy sources such as wind, and significantly lower than coal-fired generation. Given Alberta’s grid is largely coal and natural gas, installing solar PV to offset grid electricity results in considerably lower levels of emissions over the life of the system.
Currently, given that solar PV is still somewhat new, there isn’t a huge market driver to recycle them yet because the majority of PV modules and inverters are likely still out there functioning. I am confident that 40 years from now when many of the currently-existing PV modules are reaching the end of their life, there will be a robust recycling solution because they are composed of many materials that have value. This also applies to inverters in 20 years.
GH: This myth is fascinating. PV modules are expected to last from 40 to 100 years, and here we have people complaining about recycling something that won’t need recycling for 40 years! Yet, they willingly go out and buy computers and cellphones that need recycling in three years. Currently, there is very little available for the recycling of PV modules, because there is no need for it; they are too new. A PV module consists of glass, aluminum, plastic, tedlar, copper, and PV cells, and the PV cells consist of very thin sheets of silicon, boron, phosphorus, and aluminum. It is an electronic product that can be recycled much easier than computers.
The energy payback of PV systems is just less than two years in Alberta. The carbon footprint payback depends on where the PV systems (cells, modules, racking, inverters, and wiring) is made. If they are manufactured using energy that has the same GHG intensity as in Alberta, then their carbon payback is similarly just less than two years. If they are manufactured using energy that has a greater GHG intensity as in Alberta, then their carbon payback is longer. If the manufacturing energy is twice as dirty as Alberta, then the carbon payback is four years, if the manufacturing energy is half as dirty as Alberta, then the carbon payback is one year.
I wonder, do people ask these questions of coal-fired electricity (3.7-year payback), methane-gas fired electricity, cars, or cell phones? Nope, they just ask it about solar and wind.
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GAE: For an averaged-sized home, what kind of solar system would someone need to make an impact on their utility bills?
GH: I actually don’t care about the size of the home; I care about the number of people in the home and their choices and behaviours. Homes don’t use electricity; people do. Any sized PV system will reduce peoples’ electricity bills; the amount of the effect depends on their PV system size.
An average homeowner in Edmonton (which uses 7,200 kWh of electrical energy per year) would need a 6.3 kW PV system to generate the same amount of electrical energy as they consume. An average homeowner in Calgary would need a 5.5 kW PV system to generate the same amount. Click here to see the effect of a PV system on a homeowner’s annual bills.
JD: As mentioned, this all depends on what your goals are, coupled with your electricity use. You should consider your peak consumption (the most expensive month) and your average month. Any sized system will reduce your electricity bill as it will offset some of your consumption, however to determine that optimal size for your needs I would recommend engaging a professional to perform an analysis using your electricity bills. There are many things to consider when choosing to go solar, and I would encourage anyone thinking about investing in solar to look at what energy efficiency measures they can do in their home to lower their utility bills as well as investing in solar. If you have determined that solar is for you, there are a number of tools available such as the Solar Energy Society of Alberta (SESA) solar consumer guide. For reference, the average residential system size in the RCSP is 7.4 kW.
DP: My house is about 3,000 square feet above grade and is kind of an unusual house. It has a south-facing gable roof pitch about 60 feet long (east to west) which would allow me to install many more solar modules than I have at present (although chimney chases at each end cast shadows in morning and afternoon which would interfere if both of my roof were fully stocked). My system is nominally 8 kW, though the newer 16 PV modules are 305 watts, and the older 16 are only 250 watts. My total outlay, after a rebate of about $4,500 for the new PV system, was about $25,000. Here is what my electricity bill looked like between May 24 and June 20 this year. Incidentally, I did not consult a professional on sizing my PV system. I have kept records of my monthly energy consumption for more than 10 years and I used that data to do my own analysis. Really, it’s not rocket science.
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GAE: Many believe that solar is just simply too expensive for them to even think of adding it to their home. What would it cost the average Albertan to add a system to their home?
JD: The cost really depends on what size of system you want or need, which depends on your electricity consumption and how much of that you wish to offset with your solar system. As I mentioned earlier, doing your research is important to determine what size is right for you. If you have a limited budget and still want to try solar, a smaller system in the range of 3-4 kW might be a great start, knowing you can expand on that system in future years.
In the RCSP the average residential system size is 7.4 kW. The installed cost ranges between $2 to $4 per watt. It is important to note that there are many variables when it comes to system costs, including roof configuration and obstructions, equipment type, labour rates, travel required, installation type, installation location, etc. The RCSP incentive is available to offset the cost. For residential participants the incentive covers $0.75 per Watt of installed cost up to a maximum of 30% of the total installation costs, or $10,000, whichever is less.
GH: A 6.3 kW PV system in Edmonton would cost around $17,000 for an average homeowner, depending on a number of factors. The provincial rebates would give them a $4,200 cheque. The new City of Edmonton rebates would give them another $950 back, so their net cost would be around $12,000.
A 5.5 kW PV system in Calgary would cost around $15,000 for an average homeowner depending on a number of factors. The provincial government rebates would give them a $3,750 cheque, so their net cost would be around $11,000.
This is WAY less than many home improvement options or option packages for new-homes.
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GAE: How does the price of grid electricity affect the Return On Investment (ROI) of a solar system?
GH: The price of grid electricity significantly affects the ROI of a solar PV system because the savings on grid electricity is on what the ROI is directly based. Higher prices for the purchase and delivery of grid electricity means that the ROI on solar is higher. The ROI has been quite low for PV systems in Alberta in the last couple years because the wholesale electricity prices have been at 15-year lows, but this has started to change, and so the ROI for solar PV is increasing.
Sometimes I wonder whether people are really interested in the ROI or if they use that as an excuse as to why they won’t make the decision to buy a PV system. Some people say to me that they won’t get a PV system unless the payback is six years, and when I tell them that the payback on an Electric Vehicle (EV) versus a gasoline car is now six years, so they should then buy an EV, they find yet another excuse. I like the phrase “if you want something really badly, you will find a way. If you don’t want something, you will find lots of excuses.” When I hear excuses, then I know that people are just trying to wiggle out of making the decision, instead of saying “I don’t want to buy one.”
JD: The cost of electricity is an important variable when calculating your ROI. It is important to note that there are many variables in an ROI calculation and I would advise anyone considering solar to investigate the ROI calculators such as the one offered by the Municipal Climate Action Centre. A more complex one is available from the National Renewable Energy Laboratory. You can also ask your installer to help you with this. The short response is, generally, the higher the price you are paying for your electricity and its delivery, the more attractive the ROI is.
DP: The cost of electricity definitely affects the ROI of a system. I am currently on the 15 cent/kWh price offered by Bow Valley Power. This price is beneficial to me as I can change at any time with just 10 days notice and no penalty fees. Obviously, in the summer, I can make more when production exceeds consumption with a higher electricity price. Conversely, I can save more with a lower electricity price when consumption exceeds production. I suspect the optimal dates to switch from the high price to a lower price are March 21 and around September 21 (although this could be delayed until September 30). My solar system and the 15 cent/kWh price are not going to make me rich, but it certainly makes the investment more attractive. I did this not to make money, nor even to save money, but because it is the right thing to do.
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GAE: Would you suggest Albertans invest in solar?
JD: Investing in solar is an entirely individual decision that depends on a great many things, including your budget, the ROI you want for the project, your electricity consumption and your interest in using micro-generation or reducing your environmental impact. Increasing micro-generation supports resiliency. For example, having the ability to generate electricity onsite if the grid is unavailable for some reason. This is only true if your system is installed with the ability to island. Micro-generation also supports the renewables job sector.
GH: I don’t like calling it an investment; it is a home improvement option. People should only buy a solar PV system if they want a reliable ROI, a hedge against high electricity prices, clean zero-emission electricity, knowing that it is fun to generate their own electricity, knowing that it is cheaper than grid electricity over 20 years, and wanting to be a leader to their community, family, kids, and friends. If people don’t want this then that is fine, there are many other things on which to instead spend money on and that have these benefits.
DP: Yes, I would say other Albertans should invest in solar, but the caveat might be that they need to be people wealthy enough to have disposable income to invest. As a wise colleague of mine observed recently, choosing to invest in rooftop solar is a “lifestyle choice”. From my perspective it is more ethical to do this than to spend disposable income on an RV, a speedboat, a big truck, a fast car (Tesla excepted!), or on expensive foreign vacations.
For Albertans or other Canadians who are less able to invest in solar, there are likely to be other ways they can reduce their carbon footprint that are more cost-effective and/or for which subsidies would produce a greater net benefit. For example, making a house more airtight and better insulated are relatively cheap options that can be tackled incrementally, and much can be done without hiring a contractor.
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Already have a solar system installed on your home/farm and looking for a way to increase your systems ROI? There are a number of competitive Energy Marketers in Alberta offering special electricity prices as high as 15 ¢/kWh to solar PV micro-generators. Additionally, Energy Marketers in Green Alberta Energy’s network are offering an additional premium of 1 ¢/kWh on electricity exported back to the grid through the Light Up Alberta Program.
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