Sunshine Newsletter
August 31, 2009
By Robert Ligon
Converting the Sun's Energy into Electricity
Solar power is generated through the use of solar panels which convert the sun's energy into electrical energy using photovoltaics. Sunlight is made of small particles called photons. As these photons hit the solar cells, they smash into electrons which then are knocked into a high state of energy and thus create electricity. The cost of using solar power to create electricity has been decreasing. Currently, the price for a residential system is about about $4 per watt, down from the price range of $7.50 to $9.50 per watt in 2006. Information about affordable solar power is available at:
Flexible Solar Financing
Alternative flexible financing has made solar power more feasible for the average homeowner. Homeowners from San Jose, Dublin, and San Francisco chose three different plans that help them save money by using solar power. One plan is the power purchase agreement, where the average down payment for San Francisco Bay Area residents is $2,000, and the homeowner pays for the power but not for the equipment or maintenance. One homeowner paid $700 per month before implementing the power purchase agreement. After implementing the power purchase agreement, the homeowner paid $300 per month. A second option is the solar lease, in which the homeowner pays nothing up front and does not pay for equipment or maintenance. The homeowner is paying for the service, and the cost is $200 less per month for electricity under the solar lease. The average monthly payment is $115 for a 4-kilowatt system. A third option is the solar system purchase, where the average cost is about $21,000 for an average-size 3-kilowatt home. One homeowner received a $6,000 rebate check from the city and state.
Rebates/Incentives for California homeowners:
Federal Residential Renewable Energy Tax Credit for 30% of the cost of the system.
California Solar Initiative (amount varies based on size of system and location)
Rebates /Incentives for San Francisco Bay Area homeowners:
San Francisco Solar Energy Incentive Program ($2,000 to $4,000 depending on installers, location and other factors)
Berkeley's Financing Initiative for Renewable and Solar Technology
provide loans to homeowners to install solar systems, and allow them to pay it back over 20 years.
Additional information is available at:
Solar Panels drop in price
Expanded federal incentives helped to spur the solar energy market. Homeowners could receive a 30% tax credit for installing solar systems. Solar panel prices have dropped about 40% since mid-2008. The number of factories making polysilicon, which goes into most types of panels, and the manufacturing of panels have grown, especially in China. At the same time, the demand for solar panels has slowed down, particularly in Europe. Many experts anticipate that prices for solar panels will continue to drop.
Additional information is available at:
