Economic & Environmental Benefits of Solar Energy
The awareness of the environmental benefits of the solar power alternative is spurring the rapid acceptance and installation of solar power globally. There is an ever increasing recognition by governments and businesses throughout the world of the environmental benefits realized by increasing solar energy into our basket of energy sources.
Economic benefits are simple. The economic return on the investment of installing a solar system increases as electric rates climb. Solar based electricity generation provides consumers with the ability to control energy expenses for the portion of the electricity generated by solar panels for periods as long as 20 years. For the first time, the consumer can predict what their future energy expenses will be, providing greater piece of mind and improved financial planning and stability. As a result, solar energy systems also increase property values according to The Appraisal Institute.
Governments on both the state and federal levels are now offering tax incentives, rebate programs and regional tariffs for PV generators to encourage renewable energy development. These financial incentives come in the form of:
- Solar Rebate Programs – State incentives are typically based on rebates to offset the cost of your installation.
- Tax Credits – Specific State and Local laws allow you to deduct the cost of your solar system from your taxes.
- Federal Tax incentives which presently include accelerated depreciations and a 30% investment tax credit.
- Net Metering – When your PV system generates more power than you need, the excess goes into the utility grid and your meter runs backwards producing credits on your utility bill.
- Feed In Tariff – The price that utility companies must pay to private generators of electricity.
Solar in Action
Solar power systems include several components working together to convert the sun‘s energy into electrical power that can be connected to a building’s standard electrical infrastructure and the utility grid
- a) The photovoltaic (PV) array cells are the basic engine of a solar power system. PV cells convert the sun’s energy into electricity. A PV cell is most often made of a thin wafer of silicon modified with small amounts of other materials that give the silicon wafer special electrical properties. When sunlight hits a PV cell, it produces an electric current. PV cells are connected together in a solar module, which has a non-reflective glass front, a protective insulating back sheet and an aluminum frame for strength and mounting.
- b) Solar Panels are groups of solar modules connected electrically to generate direct current (DC) electricity at the desired voltage and current. Panels are installed on rooftops or open areas, such as parking lots or fields that have full sun exposure. Solar panels can collect solar energy on cloudy days. A larger grouping of solar panels constitutes a “solar array.” Large non-residential solar facilities often contain multiple arrays, sometimes located on different buildings at a given site.
- c) The Combiner connects multiple wires carrying the electrical current generated by individual solar panels together into a single, larger capacity wire, which then flows to the inverter. The combiner works in a solar electrical system much like a manifold does in a hydraulic system. d) The Inverter transforms DC electricity produced by the solar panels into alternating current (AC) electricity – the form of electricity that is accepted by the electric grid. It is converted back to DC before use in most standard lights, motors, computers and air conditioners. The inverter also provides safety functions such as automatic shutdown of the solar system in the event of a power failure.
- e) The AC safety, or disconnect, switch is a manual switch that can be used to disconnect a building’s electrical system from the solar electricity system.
- f) The entire system is linked to a remotely located PMRS (performance monitoring reporting system). The PMRS measures and monitors all electricity generated by the system, performs system diagnostics and sends alerts regarding system or equipment issues. The PMRS also tracks weather and generates reports that link weather conditions to kilowatt-hour output.
