Assignment:
Discussion 1:
a. What is 'community solar' and would you join such an initiative?
b. What is a microgrid and its advantages/disadvantages to our current electricity grid?
Discussion 2:
I recently found out that installing a solar power system is not a simple process nor is it as cheap as I thought. First, you need to consider homeowner's insurance before installing a solar panel system; according to (Hockstad, 2021), "when it comes to risks like solar panels where they cannot make a call one way or the other, the home insurers tend to either not insure the home altogether or attach plenty of coverage exclusions, especially for perils like wind damage." My insurance wanted to raise my premium by $1,000 dollars.
Second, consider the panel-rated power, panel efficiency, the type of rooftop, and your energy consumption habits, which will be a factor in determining how many panels you'll need. Having said this, one of the quotes I received for installing a panel system in my house, which would be a 25.2K system, was $85,200 dollars. This includes 63 panels, facing the south and the west, 20-year system maintenance and repairs, 20-year workmanship warranty, 20-year performance guarantee, 25-year roof penetration warranty, and 25-year monitoring. This would mean that I would be paying $271 a month for my energy bill if I am refinancing the system, which is not bad considering that FPL just raised my bill by 11% per month.
If you installed your solar system after December 31, 2019, and before January 1, 2023, the Federal Government would provide 26% of incentives. In addition, if you installed your solar system after December 31, 2022, and before January 1, 2024, the Federal Government would provide 22% of incentives. the tax credit expires starting 2024 unless Congress renews it (IRS,n.d). I was happy when I thought I was going to get 26% back in return, which would be $22,152 dollars. However, I don't qualify for this incentive. make sure to do the proper research, talk to your CPA if you have one or someone that knows about tax codes to figure out if you can get the government incentive. Furthermore, if you refinance and don't get that incentive, be prepared to pay an additional $100 on your monthly bill. A lot of companies that I spoke to require that you give that incentive to them but won't disclose that information.
In the case that you can't install a solar panel system in your home, a good alternative would be community solar. Community solar is normally built on public or owned land, and solar power is made available to the community members. Community solar are offered two models' ownership or subscription. This means that there is no impact on your property, a viable option for renters, no upfront cost is required, and you don't have to wait. You just need to sign up.
According to the U.S Dept. of Energy, "A microgrid is a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that acts as a single controllable entity with respect to the grid. A microgrid can connect and disconnect from the grid to enable it to operate in both grid-connected or island-mode." Some of the pros that microgrids offer are reliability, financial benefits, and faster construction. One of the biggest cons to microgrids include regulations that may be more difficult to comply with, and laws are struggling to catch up to this technology.
In my opinion, a solar system is a good investment, if you plan to stay in your home for 10+ years. However, conduct plenty of research prior to installment.
Ali Hockstad October 6, 2021. (2021, October 6). Can you cover solar panels on your homeowner's insurance in Florida? Blanchard Insurance.
Energy incentives for individuals: Residential property updated questions and answers. Internal Revenue Service. (n.d.).
Thoubboron, K., Thoubboron, K., About Kerry ThoubboronKerry has worked in solar for more than 6 years, & View all posts by Kerry
Thoubboron →. (2022, February 22). Community solar pros and cons: An overview: Energysage. Solar News.
2012 Microgrid Workshop Report - Energy. (2011, August 30-31).