This is a evolving series of notes prompted by a telemarketing call selling solar installation.
NZ Home Services
21-Jan-2016 “NZ Home Services” called offering a free on-site assessment for a solar power installation. The suggestion was that for sites with a power bill over $100 to install solar panels free of charge, to be paid off over 40 months. Being interested in solar power I said that I was not going to buy anything but would talk to the rep if they insisted 🙂
NZ Home Services have a web site HERE, but it doesn’t work for me (tried 2 browsers, displays nothing at all). The web site did work on a tablet but was not very informative. They have a short promotional Youtube video HERE.
What was offered
They had a number of system packages with the option to pay off over 40 weeks. The point was made that they only use Tier 1 solar panels (see notes below).
A 3KW system consisting of twelve 250 watt panels costing $13000 or $82/week for 40 weeks ($13280).
Considering that I wasn’t going to buy a system, we didn’t talk details, but the rep was friendly and seemed keen to provide a good system.
If you are interested in solar power and longer term savings it’s probably not a bad deal. But the benefits will vary with your power use; how much and when.
The sales pitch suggests that the power generated averaged over the year will be the peak rating of the system x 5 hours per day. So a 3KW system will produce 15KWh per day x 365 d/y or 5475KWh. To buy 5475KWh would cost us just over $1000 at todays prices (exc. line charges).
Based on my experimental solar panel, my gut feeling is that “rating x 5 hours” may be slightly high for Wellington; but I don’t have any numbers to back that up.
Time of day, Generation and Use
If you work during the day when solar generation is at its peak, more power is sold back to the grid at a lower price; 7-8c/KWh. If you work from home as we do, our power use is more even throughout the day, but is not 3KW, so some would still go back to the grid. Is the main benefit from reducing your power bill or selling excess power back to the grid.
If you sell most of the daytime generation back to the grid, the benefits will be less. Likely doubling the payback period.
Tier 1 Solar Panels and Warranty
I had to look this up, and found that it is not a reference to panel performance or quality. It is a rating system that defines the financial stability of the manufacturer. It could be argued that if the manufacturer has a history and is financially stable, then the product should be of good quality.
Most panels come with a 25 year output warranty and a 7 year or greater mechanical warranty. This suggests that the manufacturer is confident that the panel is capable of producing power for at least 25 years, although it may fall off the roof or blow away before then 🙂
The warranty is only as good as the operating life of the supplier and installer. If they are no longer operating, you are unlikely to be able to claim on the warranty.
What About Batteries
Grid-Tie systems are popular because they don’t need batteries, which are very expensive and troublesome. A suitably sized battery system will allow you to go Off-Grid, eliminating line charges, but that requires a larger solar system and a large battery system. Most homes and life styles are not energy efficient enough to be able to comfortably go solar and off-grid.
Batteries are very expensive, require maintenance and will have to be replaced sooner than other parts of the system.
Our power use
As at January 2016 we are with Trustpower with a 15% prompt payment discount:
- 24-4-15 to 25-5-15 = 781KWh = $194.90 paid (32 days, 17.58c/KWh, $1.94/day fixed)
- 28-10-15 to 24-11-15 = 600KWh = $156.20 paid (28 days, 17.58c/KWh, $1.94/day fixed)
We work from home and have computers and a couple of monitors running 24/7 or for many hours a day. This accounts for a significant part of our power use.
Is $13000 a reasonable price for a 3KW system as at January 2016 ?
It’s difficult to say because there are so many options of panel and inverter. A complete system consists of a number of parts and installation. The panels themselves are not necessarily the most expensive part. Panel mountings are expensive as is a good inverter. Installation probably also accounts for a fair chunk.
Here are a few rough pricing guesses based on just buying the items from a local distributor:
- solar panels – $4000
- panel mountings – $1200
- cabling and connectors – $1000
- grid-tie inverter – $1500
- installation – $2000
This totals $9700, which is about the $10000 mentioned on other suppliers sites for a 3KW system. I’d expect a regular installer to be able to get better pricing than this, but $10000 installed would probably be reasonable at todays prices.
Apparently a 3KW system is typical and a 6KW system considered larger. Assuming 250W panels, 12 panels would be required for a 3KW system.
Assuming you spend $13000 for a 3KW solar system, how long will it take to pay for itself and what will it cost to maintain over the 25 year life of the panels?
The panels will have to be cleaned maybe once a year. The panel mountings will have to be checked for corrosion and security every 5 to 10 years. The inverter will probably require service or replacement in 5-10 years. Cabling, if installed responsibly should last the full 25 years.
In 10 years it is likely that panels and inverters will be cheaper and more efficient, and that service labour will be more expensive.
Our One-Panel Experiment
At typically 145W output and a grid power cost of 17.58c/KWh (+tax) the panel produces about 2.5c worth of power per hour. Assuming a good average day of output I estimate a payback period on the panel of 5-7 years. This does not include the cost of controller, cable, mountings or installation. So the actual payback may be more like 10 years.
This one panel is currently supplementing power to a couple of low power computers, including this web server. No grid-tie or inverters. It is all a 24V system.