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Solar installers in the state of Missouri continue to grow their businesses at considerable rates. 2016 is primed to be an even better year than 2015.

A major factor in the recent expansion of solar in the state can definitely be tied to generous subsidies. Combining both the national tax credit and local rebates, someone who invests in solar can expect to pay only about half of the original cost.

One of the more prominent installers in the state – Missouri Sun Solar – has been greatly benefiting from a positive solar environment. In fact, their sales went from $3 million in 2014 to a strong $22 million finish for 2015, according to a recent news-leader.com article. While the installer has done quite a few commercial installs, the majority are residential solar installations. News Leader also highlighted Skywire Electrical Systems, who experienced a tripling of business from 2014 to 2015.

Along with the tax credit and local rebate, net metering helps homeowners and businesses invest in solar power in a cost effective way in Missouri. While net metering in the state is compensated at “the avoided cost rate”, solar investors can still expect to see a return on investment in less than 10 years.

Another reason why solar is expanding in the state is that the word is getting out that solar is cheaper than the average paid rate. The cost of residential energy from a utility is approaching 11 cents per kilowatt hour. Solar is a few cents cheaper without subsidies and approximately half the utility rate after subsidies and net metering.

The news about the national 30 percent investment tax credit being renewed for a few more years will certainly help make sure that the solar momentum in Missouri continues.

Solar is bound to grow from Springfield to Kansas City to St. Louis as word continues to spread about the financial benefits of solar power. The approximately 50 installer in Missouri will be ready to grow along with the state’s solar expansion.

Quite a few homeowners may be waiting to get solar panels installed on their homes.

Rumors of lower solar panel prices and higher efficiency solar panels might make waiting seem like a good idea. However, taking a closer look into this situation reveals that waiting may not be financially beneficial. Let’s take a closer look at efficiency and pricing expectations.

#1 Solar Cell Efficiency

Solar cell efficiency has improved very slowly over the past few decades. Thousands of engineers and scientists have been working for years on improving current technologies. In this industry, an improvement of 1 percent is considered quite an achievement. There are always news stories about potential breakthroughs in solar efficiency yet none of these new ideas have been taken to market. Even a doubling of efficiency levels would not have a drastic effect on overall pricing because solar panels are only about a third of the total cost of solar.

#2 Solar Panel Prices

Those not familiar with the residential solar power industry may assume that the majority of the cost of going solar lies in the cost of the panels. As just mentioned, panels only represent one third of total costs. Another third goes to the inverter and other materials with the final third being interconnection, permitting, and installer fees. So, again, if solar panel prices decrease, this represents a decrease in only one of the three cost categories. Also, panel prices have all but bottomed out. Installer and red tape fees may drop a bit in the future. Affordable, local installers already charge reasonable rates.

Time for an example.

Going Solar Now
Currently, the national average for affordable solar installation is about $3.50 per watt. The average install size is 5,000 watts. So the price would be $17,500 before tax incentives or local rebates. This is a realistic price point for millions of Americans choosing to go solar now.

Waiting 3 Years
Let’s consider a realistic example of where pricing may be 3 years from now. Taking into account the effects of a slow increase in efficiency levels and minor reductions in panel prices and install rates, we might be looking at a $3.00 per watt charge as a national average in 3 years from now.

In our example, a homeowner pays 15 cents per kilowatt hour, which millions of Americans pay (many pay much more than that). 15 cents is an approaching average for the country. This homeowner requires a 5,000 watt solar panel system to offset a very high percentage of electricity costs.

The homeowner in question has decided to wait 3 years to go solar. During the first three years, the homeowner continues to pay conventional electricity prices. At 15 cents per kilowatt hour for an average of 800 kilowatt-hours per month, the monthly electric bill is $120/mo. After 3 years the total is $4,320. This person can now go solar for $3.00 per watt, our future pricing speculation. So the cost of solar in this case is $15,000. Total cost is the $4,320 paid for conventional electricity while waiting plus the 15k which is a total of $19,320.

In Summation

1. Go solar now cost – $17,500

2. Wait to go solar cost – $19,320

So based on this very likely scenario, it does not make sense to wait to install solar panels. Here’s another post on the discussion on why it makes sense to – buy solar panels now.

Again, this example is obviously based on a small amount of speculation. However, it represents a very likely scenario of where prices should be 3 years from now.

The bottom line is that solar power is now cheaper than conventional electricity from your utility, so the sooner you go solar the sooner you can start saving money.

As a record year for solar draws to a close, the expectations for the solar industry in 2016 are even higher.

A total of 7.4 gigawatts of solar power capacity was installed in 2015.* This record breaking amount of solar is only the beginning. It is expected that the U.S. will see a substantial 100 gigawatts of solar added by 2020.

As far as 2016 is concerned, we have much to look forward to.

First of all, the significance of the tax credit being renewed for years to come can not be understated. This is a massive boon to the industry and those looking to save as much as possible with their solar investment. While solar is cost effective in many cities without the tax credit, it makes the decision to go solar easier for many where the comparative costs of different electricity sources are closer.

Major solar companies will look to decrease their cost of solar panel installation. The smaller solar companies are already offering very affordable prices due to their much more reasonable install rates. There isn’t nearly as much room for savings in the costs of the panels themselves. So, again, look for potential reductions in install prices.

While the most solar savings are available to homeowners, renters and others can look forward to more access to community solar programs. These programs allow even more people to make a difference by going solar and save a bit of money at the same time.

An even greater availability for solar financing will most likely take place next year as well. The PACE Program – Property Assessed Clean Energy – will likely be offered in more states across the country. This attractive clean energy and home energy efficiency financing program helps homeowners go solar through an increase in property taxes.

More public utility commissions will decide in favor of homeowners concerning net metering disputes. If homeowners are allowed to install solar panels on their roofs, they should also receive fair compensation for the excess power these systems produce. It’s that simple. The emerging distributed energy industry should benefit from free enterprise, like every other industry in this country. Net metering will be supported because decreasing or eliminating it will be seen as an attempt at an industry to retain its monopolistic structure. Solar will be given its fair chance to compete.

The pace of solar installations will increase as more homeowners discover how much they can save with solar power. 2016 will be the year that we will see this amazing rate – 1 system every minute. A solar panel installation every minute will be a truly astonishing milestone.

So here’s to an amazing 2016 for the solar power industry!

*Information gathered from seia.org.

The Midwest has not been traditionally known for its solar power. This idea will soon change as the region looks to play catch up with the Southwest and Northeast.

This post will detail upcoming utility scale solar projects in Ohio and Michigan.

Ohio is the bigger story here with the plans to install 400 Megawatts of solar capacity over the next four years. Along with another 500 Megawatts of wind power, this will take Ohio a long way in making up for the loss of electrical production when they shut down 1.5 Gigawatts in coal power plants. The Sierra Club’s Beyond Coal Campaign had a large role in making this power transition happen.

The Ohio utility working to make this happen, AEP Ohio, will auction off at least one of the solar farms needed to reach the 400 Megawatts. The total 400 megawatt figure must be delivering electricity by 2021.

The Solar PV projects are recommended by the Sierra Club to be developed in the Appalachian part of Ohio. There’s also a suggestion to hire more military veterans. Time will tell if AEP Ohio honors either request.

In Ohio, the transition of coal economy to clean energy economy has begun.

Michigan will also be able to proudly show off a large utility scale solar project of its own in the coming years.

Utility DTE has a contract with Indiana solar contractor, Inovateus, to install a total of 50 megawatts of solar. This project includes two separate installations – one is 30 megawatts and the other 15. The site is just north of Detroit in Lapeer, Michigan. The specifics of remaining 5 megawatts have yet to be decided on.

Here’s a few notable items to mention about these upcoming solar projects in Michigan. The 30 megawatt solar farm will be the largest utility-owned solar power plant east of the Mississippi. Also, when the 50 total megawatts are completed, this will triple the state’s current solar capacity of 25 megawatts.

While these renewable energy projects will help Michigan achieve its renewable energy mandated goal of 10 percent, much will still need to be done to achieve a more respectable percentage.

The obvious conclusion about this story on Midwest solar power is that it is absolutely viable. This is true for two major reasons;

1. Solar power is cost effective in the Midwest–

Solar is 8 cents/kwh before incentives. The average homeowner in Detroit pays at least 11 cents/kwh. The difference is thousands over the long term.

On the utility scale side, prices for solar are 5 cents/kwh or lower. This easily beats what utilities currently pay for conventional electricity at 7.62 cents/kwh. That 2.62 cent difference adds up to a lot of money considering the large amount of energy produced.

2. There is sufficient solar radiation in the Midwest–

Detroit has an average annual solar radiation value of 4.26 kilowatt hours per square meter per day. Compared to the Los Angeles, CA value of 5.62, it is only 25 percent less.

These two points may not yet be common knowledge yet. The utilities certainly know these truths, otherwise these solar installations would not be scheduled.

It’s fair to say that those that live in the Midwest can look forward to much more clean energy via wind and solar in the coming years. On the residential side, homeowners will certainly look to take advantage once word gets out about the value of solar power.

A critical tax incentive for wind and solar power was renewed this past Friday December 18, 2015 by the House and Senate. This represents a significant boon to the renewable energy industry.

The 30 percent solar investment tax credit was set to expire by the end of 2016. Had this timeline not changed, the solar industry would have slowed considerably following 2016. This is not to say that solar is not affordable without subsidies. Quite the opposite is true. The point here is that the industry needed a few more years to mature and the tax credit is a key component of maintaining growth and stability until that time.

Now those that are looking to invest in cost effective solar power can continue to save even more with the tax credit through 2020. The tax credit will drop down to 10 percent from 2021 through 2022.

This decision was a part of a $1.15 trillion spending bill to keep the government running until September of 2016. The compromise that was made for the tax credit extension was the lifting of the ban on U.S. crude oil exports.

Many industry insiders now predict considerable future growth for solar. This means more than 220,000 new jobs (50,000 of which will be veterans) and an additional $133 billion in investments according to the Solar Energy Industries Association.*

It is also forecast that solar power will be providing the United States with 3.5 percent of the energy that it needs by 2020. The 100 gigawatt in solar capacity will power 20 million homes. While 3.5 percent may not sound like much, what’s notable is that this is three times as much as what’s currently installed. If solar deployment were to continue at this pace, it would soon become a majority of energy produced in America.

There’s still much debate about solar energy versus fossil fuel subsidies. Renewables do get significant subsidies. There’s no doubt about it. Fossil fuels have also received tremendous amounts of money. In fact, since 1918, the oil and gas industries benefited from $446.96 billion.** The one, and very important, consideration that does not typically get accounted for in comparing subsidies and overall energy costs is that of pollution. The continued subsidizing of fossil fuels definitely does not make sense in light of the considerable environmental and societal health damage done by this source of energy.

The tax credit renewal will also be vital in helping states meet their mandated Clean Power Plan renewable energy goals. Commercial and residential solar installs will certainly help contribute to overall production goals.

This renewal decision also coincides with the historic agreement at the recent 21st Conference of the Parties in Paris. Almost 200 of the world’s largest countries now have a basic framework and understanding that we must begin our transition to clean energy.

We need everything we can get to help us continue on our path to an environmentally stable and more sustainable world. This tax credit will certainly do much in the way of meeting this goal.

* http://www.seia.org/news/seia-celebrates-extension-itc
** http://www.energyfactcheck.org/fact-checks/government-support-for-renewable-energy-is-costly-ineffective-and-more-significant-than-support-for-conventional-fossil-fuels

In the continuing battle between proponents of solar power and electric utilities in California, the California Public Utilities Commission decided in favor of protecting a favorable net metering policy.

This is definitely considered a big win for the solar industry in California. If the Utilities had their way, excess solar electricity delivered to the grid would have only been compensated at a fraction of its actual worth. Solar customers can expect to be compensated the full retail value of their excess solar production.

It’s not all good news, however. Residents of California that are considering solar may face an increase in interconnection fees and time-of-use charges. On the whole, these minor fees will not prevent solar from being the great value that it is.

Public comments will be allowed in the first week of January, 2016. A final vote on the decision will take place towards the end of the month.

Bernadette Del Chiaro, executive director of the California Solar Energy Industries Association, has said this in response to the decision – “Governor Brown’s PUC is standing up for clean power and for customers by proposing to reject the utilities’ attempts to make solar out of reach of customers.”

This decision really is one of freedom of choice. This story is blatantly one of a monopolistic enterprise attempting to prevent any potential competitors. It can be said that one of the greatest liberties that should be preserved in this country is one of choice.

Furthermore, if a solar customer’s excess solar electricity is used by the grid, it is only right that the producer of the power gets fair compensation for that electricity. Anything short of that can simply be seen as theft.

The proposal also shows that public utilities’ argument that solar power customers create an additional expense to non-solar customers has not been proven in the least. “The commission is rejecting the utilities’ false numbers and clearing the pathway for solar to continue to grow” – Brad Heavner – policy director for CALSEIA.

Utilities are also mandated to be producing an increasing amount of renewable energy under the Clean Power Plan. Any attempts to hinder the spread of solar power is simply a step backwards in regards to that legislation and our collective need of improving our environment.

There should be greater focus by these power companies to transition to wind and solar power. Along with developing energy storage technologies, these represent the future of energy production.

Out with the old. In with the new. Solar is here to stay.

According to the leading clean energy research organization, GreenTech Media, the behind-the-meter energy storage market will see major growth in the next few years.

Behind-the-meter refers to either a solar panel system or battery storage system supplying on site energy that is on the non-utility side of an electric meter. On the other hand, in-front-of-the-meter refers to any system used by an electric utility.

GreenTech Media predicts that behind-the-meter energy storage will grow 60 times its current size by 2019. This will make it almost half of the total energy storage market by then.

One of the largest growth segments is residential. This implies that homeowners will have access to affordable energy storage systems in just a few years. At the current energy storage price of approximately $300/kwh battery, the equivalent of paying 33 cents per kilowatt hour, this cost prohibitive to all but the very highest residential electric rates in America. However, it is predicted that costs could come down to $100/kwh battery, or 11 cents per kilowatt hour for electricity drawn from the storage system by 2020.

Major companies have joined the race to grab their share of the upcoming and potentially enormous energy storage market. Some of the largest names include Tesla, Green Charge, and Stem. Naturally, these energy storage companies have teamed up with major solar panel installers. The combination of cost effective energy storage and cost effective solar power will have the grid eventually playing a minor, supportive role.

Even large electric utilities like Duke Energy are jumping into the storage game. Duke is working with Green Charge in getting batteries installed at government, industrial, and commercial sites. Duke also has a presence in the solar industry as well with REC Solar. We’ll see more utilities get into energy storage and solar pv in order to diversify their energy portfolios. A full scale transition to renewables must also happen, sooner than later.

What does all of this mean to the average homeowner?

Well, it means that the promise of true energy ownership and independence is arriving soon. Those who purchase their solar panel systems now will take a big step in towards being a part of this future.

Home energy ownership through solar power and energy storage will be one of the largest, if not the largest, transfers of wealth in the history of this country. How could this be so? It’s simple, take an average savings of at least $20,000 and multiply that by the number of homeowners and you’ll get a pretty large number.

Of course, major electricity savings are possible with solar power right now, without a storage option. The difference with storage is that net metering will no longer be relied upon. Homeowners will no longer be at the mercy of their utility’s willingness to offer fair net metering compensation or not. They will also not be able to get away with charging solar customers extra and unnecessary fees.

If our cleantech research organizations are anywhere close in their energy storage predictions, we can look forward to a much more equitable energy landscape in the not too distant future.

Love him or hate him, Arnold Schwarzegger has recently made some convincing arguments for a shift to renewable energy as soon as possible.

He knows that climate change is still somehow a contentious issue, so he has title a recent viral Facebook posting – “I don’t give a **** if we agree about climate change.”

He doesn’t give a damn because he knows that issues like air pollution and the long term financial viability of fossil fuels do not look good.

In fact, as Arnold also mentions, 7 million people die every year due to air pollution. These premature deaths account for a larger number than all car accidents, murders, and suicides combined.

On a financial note, he compares the continued investments in fossil fuels to continuing to invest in Blockbuster. While maybe not the best analogy, his point is taken. It’s not wise to invest in a technology that has become obsolete or, in this case, a source of energy that will eventually be depleted.

Along with the current California Governor, Jerry Brown, Schwarzegger made an appearance at the climate talks in Paris. Like many others, they are making the case that investing in a clean energy future can make good financial sense.

Arnold also made a very important point about climate discussions, in general. He mentions that they typically deal with far off consequences – what our world might be like in 30 or 50 years. He says “…our brain is not wired that way, that we’re worried about things that are happening in 2050, or 50 years from now. It’s wired about what’s happening today, and no one, event the top environmental officials, really communicates this the right way.”

It’s refreshing to see someone as influential as Schwarzenegger bring much more needed attention to our current climate crisis – air pollution. This will help our world and corporate leaders to act much sooner than later when they fully realize that this truly is a humanitarian issue. We all deserve the right to breathe clean air.

It’s also comforting to know that we do have the technological solutions to our environmental crisis. The only barriers that remain are political. This is why the results of the COP21 in Paris are so important. Our world leaders must invest in wind and solar power with confidence. The last remaining piece of the puzzle – energy storage solutions – will be there in time.

As more high profile leaders like Arnold Schwarzenegger and Bill Gates emerge to support clean energy, we’ll be that much closer to the end of the fossil fuel era.

American businesses continue to invest in solar power. In fact, commercial solar installations have increased 183 percent in the past four years, according to the Solar Energy Industries Association.

While the commercial solar industry has not seen as much growth as the residential solar industry, business leaders continue to see great value in solar.

Blue chip companies are now investing in solar because it’s a double win – it’s cost effective and also helps them do their part to protect our environment. In addition to jobs created, the 1,700 commercial solar panel systems currently in use reduce CO2 emissions by 890,000 metric tons per year.

Walmart leads the pack with the most installed solar capacity. The next top installers include Prologis, Target, Apple, Costco, Kohl’s, and IKEA.

Here are some of the key figures attributed to commercial solar activity –

• 907 megawatts of solar installed – enough to power 158,000 homes.
• Walmart alone has installed more than 142 megawatts of solar.
• Businesses have installed 59 percent more solar this year than 2014.
• Prices for commercial solar pv systems have dropped 30 percent over the past 3 years.
• Commercial solar installations can now be found in 38 states. Arkansas, Kansas, and Indiana are joining the list this year.
• Carports are emerging as one of the quickest growing commercial solar areas.

Increased investment in solar power by these large companies also helps to drive pricing down further, which then makes it even more financially attractive for other businesses to go solar as well.

It should go without saying that it is vitally important that businesses invest in solar power and other sources of renewable energy. Companies account for one fifth of total energy usage in America. Eventually reducing our country’s carbon emissions by 20 percent is what our business leaders should have as a collective goal. Accomplishing this while being able to save money at the same time makes this realistically achievable.

News stories about companies going solar should be a big sign that solar’s time has finally come. While some companies truly want to do the right thing, the bottom line is that it also has to make financial sense as well.

Homeowners everywhere should take note. Most businesses will only invest in solar power if it saves them money. The same savings are, of course, possible with residential solar power. Due to economies of scale, solar pricing is slightly cheaper at the commercial level. However, significant savings can now be experienced with residential solar all across the country.

We can all look forward to more stories about businesses investing in solar power in the coming years.

Much has been written on this site about solar panel prices and the overall cost of solar. This post is a continuation on that theme as the general awareness of the affordability of solar power is still something not widely known.

The price for solar panel systems typically range between $15,000 and $20,000. Some may cost less, some more depending on energy usage. A common, initial reaction to these numbers is “I don’t have $15,000 or $20,000.” This is a justifiable reaction, as this is a considerable amount of money even compared to the average home improvement project.

In actuality, these numbers are quite low because they represent a prepayment on 25 years or more of electricity usage. For a homeowner who would need a $20,000 system, that person would spend at least $40,000 on electric bills with a utility by not going solar. It’s at least this much because utilities have historically raised rates through the years.

Solar power is a long term investment, much like home ownership. This is how solar needs to be viewed.

Years ago, not having the cash for a solar panel system may have been an issue. This is not the case any more. There are currently numerous ways that one can get financing to go solar. Many financial institutions now offer home energy efficiency and green energy lending programs. There are also government sponsored programs to help people finance their solar investment.

Financing for a system will typically have homeowners paying about the same monthly amounts for their solar loans as they were paying their utilities. Instead of paying a utility, the majority of money spent for your electricity will be used to pay off your solar loan. Again, this is an investment. Much like making the transition from renting to owning a home, the savings are seen over the long term. They are not immediate. Solar loans can typically be paid off in less than ten years, leaving the homeowner will at least 15 years of free electricity.

Here’s another way to look at the savings possible with solar power. Homeowners should be asked – “Would you like your electric bills to be cut in half over the next 25 years?” Of course they would. This is what is now possible due to low solar power pricing.

Quite a few homeowners may be waiting for pricing to get even lower or efficiency to improve. It’s a better idea to start investing in solar now. The prices for the production of solar panels have gone from $70 per watt to as low as 50 cents per watt in 2015. Not only was this a dramatic price reduction, but there’s not much room left to go any lower. As far as increased efficiency is concerned, even if solar cell efficiency were to double it would not have a truly transformative effect on pricing. This is because the cost of the panels is only 25 percent of the total cost of going solar. Sure, there would be some savings, but it’s not worth waiting years for. Go to my cost of solar page to get more information.

What about installation costs? This is where homeowners can save the most. Finding a truly affordable solar panel installer can save thousands of dollars. The current solar industry is filled with all types and sizes of solar installers. The difference in pricing is just as varied.

Now is the time to go solar for those looking for great solar panel pricing.