Gorgeous Green House

The Renovation Journey of a 1940’s ‘Traditional’ to 2015 ‘Contemporary, Green & Gorgeous’

SOLAR ENERGY: WHAT DOES IT COST? HOW TO EXPLORE FEASABILITY

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So What’s the Problem With Eskom Power?

We’ve all been grumbling in recent years at Eskom’s unreliable provision of electricity and are aghast at recent tariff increases.  Brace yourselves; Eskom is targeting an average annual increases of around 15% for the next five years.  The rate you per kWh depends on how much you use.

Figures from ESKOM website

Yet compared to global consumers our electricity bills are cheap.  Europeans for example are paying 4 times as much.

Coal is the most polluting energy source on the planet, and the main cause of the world’s CO2 emissions. (In addition it spews out nitrous oxide (N20), hydrofluorocarbons (CFCs, HCFCs, and HFCs) and methane (CH4). These emissions trap the sun’s heat and warm the planet, adding to the earth’s natural greenhouse effect. Coal ash, the solid waste produced contains large quantities of toxic metals, including mercury, arsenic, beryllium, cadmium, chromium, nickel, and selenium.

South Africa is the world’s fifth largest producer of coal, and is the sixth largest consumer on the planet.

The reality though is that the price we pay does not reflect our real cost.  South Africa’s addiction to coal generated electricity (only 1% of our electricity is coming from renewable resources) has other externalised costs including the following:

  • Acid mine drainage
  • Air pollution
  • Polluted water, massive use of water in production
  • Tunnels causing instability
  • Coal miners and local communities health and high mortality rate
  • Environment and eco-system degradation from the physical process of extracting the coal
  • Long term environment and eco-system degradation as a consequence of the greenhouse gases produced.

The University of Pretoria’s Business Enterprises unit has just released a report entitled The True Cost of Coal which clearly outlines the impact of continuing on this path.  The projected externalised costs (the ones that don’t appear on your utility bill) for the proposed new Kusile mine alone are a whopping R60.6 billion (766,656,000.00 USD) a year! The same report outlines the benefits of the transition to renewables, including far greater job creation and potentially faster provision to communities who are as yet not connected to the grid.  There are still 10 million South Africans without power (nearly 20% of us) and the technology is here to do it clean and safely.

But….How Much Will it Cost the Average Household to go Solar?

Before answering that question I urge you to look at your current energy costs.  Scrutinize your electricity bill.  Look at how many Kwh you are currently using.  The Eskom table above could be a little misleading as my family is currently paying R1.02 (0.12 USD) per kWh. Calculate what you will be paying based on a 15% annual increase over the next say 10 – 15 years.  Try not to fall off your chair in a dead faint!

Eskom have a nifty calculator on their website that allows you to drop in your current kWh consumption and it shows you what you are paying and how much you will pay next year.  Go to http://www.eskom.co.za/c/53/tariffs-and-charges/ and click on the residential tariff comparison tool.

I worked out that if my family were to continue in our current very non-green house with our current shocking consumption of 1664 kWh per month our electricity spend over the next 10 years   would    be in the region of R694 995.93 (80367 USD).  Over the next 13 years    R1 236 697.00 (143 013.00 USD). Your own calculation may well provide similar impetus to explore alternatives! So clearly ‘dirty energy’ is costing us at all levels, but it still boils down to ‘what can I afford now’?

For several years I’ve had a minor obsession with the notion of ‘getting off the grid’.  I would ask vendors at Sustainability Expo’s and the like “how much for a family of 5 to set up to get off the grid”?  Five years ago the response would be a sorrowful shake of the head and responses like “maybe just aim to get your water heated and supply your lights”.  If I pushed the numbers ranged around the 1 Million Rand (116 000.00 USD) mark.  Fortunately the cost of photovoltaic (PV) cells is falling fast and some say that they will be at grid parity with Eskom by 2015.  (David Lishitz: Our Power Station).

I’ve been researching options, talking to vendors and doing some sums.  I recommend that you talk to   www.solarsunsa.co.za   who will walk your through the minefield of technicalities to help you understand your options.  Please beware of the plethora of inferior imports.

I’ve worked my calculations based on an annual consumption of 6694 kWh which is feasible if you make some changes.  For example, just switching to a solar geyser or heat pump can reduce your use by 40%.  (Note:  I plan to post a lot more all options to reduce energy consumption, including the hotly debated solar geyser vs heatpumps issue!).

The bottom line:   to get 97% off the grid your costs (panels, inverters, batteries, display screen, controllers, installation/labour etc.) from a reputable provider will cost approximately R340 000.00 (39317.92 USD).

I know, I know!!!  It’s a massive amount of money but if you plan to be in your home for a while you will get your money back by year 13.5 and thereafter you are laughing.  Remember the 15% increases we are promised? The scenario in the previous paragraph plays out like this:

So sadly, it’s clear at this point that only the wealthy can afford to make the investment (and benefit from the longer term payback) but is this not true of most investments?  Perhaps this is the way to view the opportunity?  My sense is that if industry, government and private households just get this thing started volumes will drive costs in the right direction, enabling more and more people access, encouraging further price reductions etc.  What will also create incentive is the ability to ‘sell back’ our excess energy when we have more than we need.  This is standard in other first world countries so fingers crossed we will catch up soon.

So, if you’ve got the means to make this investment and want to look at the viability for yourselves where to start?

Designing Your Solar System

Assuming you have already reduced your energy usage via the usual switch to LED’s, energy efficient appliances, solar geysers/heatpumps, general energy conscious living etc. start talking to vendors in the industry about how they would put together a system for you and what the costs would be based on your kWh consumption. Ask for a range of quotes to take you from 60% – 95% ‘off the grid’.

Battery Enclosure

You need to have a place to put your panels, and batteries, display screen and converters etc. That all needs to be planned for and a good specialist should advise.  You will need an outside cupboard that is well ventilated.

Most vital to the success of the technology will be the amount of sun you are in a position to harvest.If you are concerned that your intended roof/wall/garden space gets too much shade you

Solar Pathfinder

can ask you vendor to install a Solar Path Finder to calculate how many kWh of energy you will be able to harvest at all months of the year. The first design of our Gorgeous Green House had the panels positioned in the shade of an ancient Albizia adianthifolia (Flat Crown tree), not good! Trevor Wheeler www.solarsunsa.co.za  climbed up on our roof to put the Solar Path Finder in 3 places to take readings for us so we are now confident that our roof now facing North East is going to be right.

Don’t be put off if your are retrofitting and you roof line is wrong.   One can get creative and brackets can be used to place them just about anywhere as the link shows:  http://www.youtube.com/watch?v=vC-Xb3uaTk0

IOL Business Report SA Time: Fri Oct 05 2012 11:21:33 GMT+0200 (South Africa Standard Time) http://www.greenpeace.org/africa/en/News/news/The-True-Cost-of-Coal/

(http://www.precaution.org/lib/08/prn_is_coal_green.081106.htm) ( World Coal Association. 2010. Coal Statistics. http://www.worldcoal.org/resources/coal-statistics/

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10 thoughts on “SOLAR ENERGY: WHAT DOES IT COST? HOW TO EXPLORE FEASABILITY

  1. Nice response on the return of this issue with real arguments and explanations.

  2. Very nice post. I just stumbled upon your weblog and wanted to say that I have
    truly enjoyed surfing around your blog posts. In any case
    I’ll be subscribing to your rss feed and I hope you write again very soon!

    • Thanks for the boost. I have hit a bit of a hiatus in posts as the idea was to follow the building process with green info in real time. We STILL await planning approval but I think it’s time to jump back in and start sharing information that I’ve been gathering to date.

  3. Thanks for one’s marvelous posting! I seriously enjoyed reading it, you might be a great author. I will be sure to bookmark your blog and definitely will come back in the foreseeable future. I want to encourage yourself to continue your great writing, have a nice weekend!

  4. Indeed, one must go through various steps before confirming an order of installation of solar panels. You should measure your roof, find where it gets most sun throughout the day, inspect shade provided by your terrain. This is all very important.

    -Sharone Tal

  5. Oh that is good news, the technology really is coming along nicely. Thanks for the response.

    Another thing that occurred to me later, after reading your article….your current consumption of 1664kWh should come down significantly with all of your energy efficiency measures.

    For interest, we are currently consuming around 700 – 800 kWh per month (incorporating solar water heating, LED and CFL lighting, insulation, draft exclusion, gas cooking and an energy efficient pool pump)

    Enjoy.

  6. Brandon, your great question gives me the opportunity to emphasise the importance of buying the best batteries you can afford. At R66 000.00 they represent a significant portion of the cost of my system. Good news is that a the cycle life of the battery designed for this system is expected to reach 13.6 years, based on a nominal average daily depth of discharge (DOD) of a 30% with a high quality Hoppecke battery.

  7. Great post – a very practical real world look at co-generation and going off-grid.

    Are the costs of replacing batteries included in the workings? My understanding is electricity storage is still the weakest link, with batteries needing to be replaced every 5 to 8 years at this stage. Great strides are being made in the technology and the next battery bank that you will need to buy will probably be much more efficient.

    Something that will probably also fall into place as policymakers and consumers start to see the (renewably powered) light, is co-generation on a slightly larger scale – say at the neighborhood or suburb level We looked at the suburb of Vauban in Freiburg, Germany earlier this year and they have a bio-digestor which provides much of the power needed. As with all things green, it is a case of evaluating each set of circumstance holistically and coming up with the most harmonious and least harmful solution.

    Well done for the pioneering work that you are doing, and for sharing it. Good luck and looking forward to reading more.

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