Photovoltaic Panels

Once I overcame the shock of getting a $350+ electric bill and then had done enough research to be convinced that putting solar panels in my home not only was a good idea to help preserve the environment, but also to save money and raise its property value, the next step was installation.

In the case of my own home, since it is all-electric and has refrigerated air, we were going to require a lot of panels. We Solar-Panels-Installation-Albuquerque received an energy audit and had numerous evaluations by engineers, and it was determined we would need 30 photovoltaic solar panels or a 9.81 kWh (kilowatt hour) solar system to offset our energy use through the course of the year.

Depending on whether you live in the city or in the country sometimes it is better to have the panels connected to a battery apart from the electric company for storing energy to use at night or during severe cloud cover. This is what they call “living off the grid.” The other option is to have the solar system feed right into the electric company’s meter. At nighttime no solar energy is being produced and the meter moves forward as usual, measuring usage. However, during the day when solar energy is produced, and if consumption is less than production, the METER ACTUALLY GOES IN REVERSE! When that happens that means that energy is being sold to the utility company (or “net metering”).

REC-Meter There is nothing more satisfying than watching your electric meter move in reverse. Living here in the Sunbelt where according to the Current Results Website we average 278 sunny days in Albuquerque, it’s no surprise to see a meter connected to a solar system spinning backwards. And because I entered into an eight-year contract with my electric company, their buy-back rate is guaranteed during that period. Of course, there is speculation the rate will go down, but no one knows for sure.

Solar-Panel-Ballast-System The installation itself only took five days. We have a flat roof so we decided to get a “ballast system.” This is where the frames that sustain the panels are held in place by cinder blocks (rather than bolted in) and are designed to withstand winds up to 120 miles per hour. The result is a gorgeous design with 30 photovoltaic panels feeding into two inverters that convert solar energy into alternative current (AC). This converted energy leads to the Renewable Energy Credit (REC) Meter that, of course ultimately ties into the electric company’s meter.

Solar-Panels-Albuquerque-Home

The moment of truth came one full month after the installation of our solar system…receiving the electric bill. I opened the envelope and, low-and-behold my utility company had cut me a check for $60.00!!!

I am so entirely satisfied with my solar system that I’d like to invite anyone who’s interested to see it in action. I am organizing a “Solar Party” at my home in Albuquerque to explain how the system works and serve appetizers on:

July 26, 2014 from 3:00 – 5:00PM

RSVP Sutter Sugar (505) 850-9977 or Sutter@TheSugarTeam.com to learn to live just a little bit GREENER.

I opened my electric bill a couple of weeks ago and my mouth just about dropped open…the bill was for $351.37!!! And only a month ago it was over $370.00!! I realized right there and then drastic action had to be taken if we were going to continue to afford our utility bills for our all-electric 2,500 square foot home with refrigerated air. I absolutely love our home—it was a foreclosure that we bought ten months ago that met our needs in every way—, but I feared that paying to live here comfortably would soon be unmanageable. So, I started to do extensive research into solar energy, specifically “active solar” and photovoltaic panels. What I soon realized was now is the perfect time to invest in this resource because of its ecological, financial and added real estate values.

Courtesy of Positive Energy Solar

The first thing I became sure of was that I wanted an active solar photovoltaic system, and not the clunky passive solar systems that appeared in the 70’s. The key difference is the modern technology’s ability to store energy. In the past the antiquated system required people to take mid-day showers or only bathe when it was sunny so as to not risk ice-cold water flowing from the faucets. Although I’m no expert on the subject, I understand that the way active solar works is that when the sun is shining photovoltaic panels trap the sun’s energy, converting it to electricity for consumption at any time of day. When the panels trap more energy than is used the excess solar production is sold back to the power company which is referred to as “net metering.”

Right now our local power company PNM pays solar panel owners $0.04 for every kilowatt hour sold back to the grid. Apparently, there are rumblings the rate will go down to $0.035/kilowatt hour, but no one knows for sure. Conceivably, the more people that supply energy back to the grid, the less the power company will pay. If that’s the case it would make sense to take advantage of the higher buy-back rate while we still can.

Courtesy of Positive Energy Solar

The tax incentives are absolutely huge. Presently, the federal government will credit the homeowner 30% of the cost of the panels and the state of New Mexico, a 10% credit (with a $9,000 cap). Another tax incentive is that locally, solar panel installations are exempt from Gross Receipts Tax which here in Albuquerque is 7%. The possibility of having the government pay close to ½ of your investment really is quite enticing. Since we don’t know what kind of incentives (if any) the future will bring, you really don’t want to leave this kind of money sitting right there on the table.

Finally, as a Realtor® the one thing I wanted to be sure of is that photo voltaic panels add value to homes when sold on the real estate market. Unfortunately, right now there just isn’t enough data at the local level to support any claim of value. We real estate agents live and die by the phrase “where are your comps (comparables)?”, and there simply aren’t enough homes sold with solar panels versus homes without them. But how can we measure the value active solar adds to a listing?! When asked this question an appraiser colleague provided me with the following formula: Additional Value = 7 Years Savings Due to Solar Panels. In my own case, that would mean that my panels would add $19,500+ of value to my house if I decided to sell it. Sweet!

In a study conducted by Ernest Orlando Lawrence, Berkeley National Laboratory titled, “An Analysis of the Effects of Residential Photovoltaic Energy Systems on Home Sales Prices in California,”* it states that there is, “[…]strong evidence that homes with PV [photovoltaic] systems in California have sold for a premium over comparable homes without PV system. […] estimates for average PV premiums range from $3.9 to $6.4 per installed watt (DC) among a large number of different model specifications, with most models coalescing near $5.5/watt.” Again, applied to my own situation, if I took the more conservative number since we’re not in California ($3.9/installed watt), photovoltaic panels would add over $35,700 worth of value to my property (even sweeter!).

Courtesy of Positive Energy Solar

But is it only about the money? Isn’t it also about the fact that we should reduce our reliance on fossil fuels which is an ever-diminishing resource? Solar energy is clean and sustainable, and—living smack, dab in the middle of the sun belt—is quite plentiful. So, don’t ask yourself, “why is now the time?”, rather, “why is now NOT the time?”

(Stay tuned for my next segment, covering the solar panel installation process.)

*I would be happy to provide this document to anyone who requests it and sit down for coffee to discuss my thought-process.

Why is Now the Right Time to Install Solar Panels?: an Albuquerque Homeowner Perspective (2 of 2)

Why is Now the Right Time to Install Solar Panels?: an Albuquerque Realtor® Perspective (1 of 2)