Georgia Magazine - May 2015 - (Page 20)
BY STAN WISE, GEORGIA PUBLIC SERVICE COMMISSIONER
Look before leaping on solar offerings
T
he ink isn't dry yet on legislation
making it easier to finance solar
power systems for Georgia consumers, and already unscrupulous marketers are misleading consumers with
offers to go solar and "eliminate" the
electric bill. If Georgia's experience is
anything like California, Arizona or
even Louisiana, the Governor's Office
of Consumer Affairs will soon be busy
with complaints of deceptive marketing. Rest assured, solar consumers
will still get an electric bill. And when
you consider all capital and finance
costs, solar isn't cheaper than residential and small commercial electric
rates offered by Georgia utilities. Even
after applying rebates and tax credits,
it would take close to 14 years to
break even on a $16,800 7-kw rooftop system being considered for my
own family cabin served by one of
Georgia's electric cooperatives.
Study the offers. Beware of
sales gimmicks that predict electric
rates will rise 4 to 6 percent annually.
Over the last 25 years, the average
annual increase has been less than
2 percent for the state's investorowned electric utility. Ask for a goodfaith estimate of the kilowatt-hours to
be delivered by the system over time.
Request plain language explanations
of pricing terms over the life of the
contract, warranties, and operation
and maintenance costs and responsibilities. The lowest cost option for
solar arrays may not even be a lease,
but paying cash or using a home
equity loan and taking the 30 percent
federal tax credit oneself.
Think twice about solar backup systems. Before investing in a solar battery backup system at $5,000 to
$10,000 every 10 years or so, be sure
to weigh that cost against more practical investments in nonperishable
foods and other goods necessary to
ride out those rare power outages. If
backup power is necessary, a natural
20
STAN WISE
gas standby generator is likely more
cost-effective.
Talk to real estate appraisers.
Even if cost calculations suggest you
will break even in 15 to 20 years, it
may not be a good idea to install
solar if you may move before then.
A solar array may be a selling point
in some parts of California, but
here in Georgia it can be a liability
that harms resale value. Only a few
buyers are willing to have arrays on
their houses, much less willing to assume leases of older, less efficient
equipment.
Be aware of restrictions. Some
developments may require that solar
arrays not be visible from the road.
Considering the arrays perform best
when facing south, this may limit
your options. If you have trees that
shade your home, your house may
stay cooler with the shade and save
you more money than if you cut the
trees down for solar.
Rate structures may change.
Solar customers must be connected
to the grid for backup power and to
sell excess power back to the system,
which means they still need power
plants and all the network infrastructure necessary to serve the home 24
More online at www.georgiamagazine.org
hours a day. However, residential solar customers do not pay all these
fixed costs. Efforts are under way in
some states, such as Wisconsin and
Arizona, to roll back the cost shifts
that result. In California, a 2013 study
estimated that rooftop solar has
caused a $1.2 billion cost shift onto
non-solar customers because solar
customers pay about 19 percent less
than what it costs the utility to serve
them. For these reasons, Georgia
should consider restructuring the
fixed infrastructure costs into a demand component on residential customer bills so that everyone who uses
the grid pays his fair share of the
costs of keeping it operational.
Before investing a large amount
of money in a home solar system in
hopes of saving a few dollars a
month, have an energy audit performed on your home to see if you
can save energy costs every month.
As consumer protections develop,
technology improves and prices decline, solar energy shows great promise under the right application.
A similar column was widely
distributed to news organizations
around the state and may appear in
other Georgia periodicals.
GEORGIA MAGAZINE
http://www.georgiamagazine.org
Table of Contents for the Digital Edition of Georgia Magazine - May 2015
Contents
Georgia Magazine - May 2015
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