Here comes the Sun

Renewable energy is becoming increasingly more visible in our society. The recent oil and food price spikes, the impending opening of the Northwest Passage, the coral bleaching in the ocean all point to the fact that we consume fossil fuels at unsustainable rates, and are changing our environment for the worse. Changing to renewable energy makes both economic and moral sense.

Of the many ways to produce renewable energy, solar is a big focus these days. In the US, the federal government has a generous subsidy, which looks to be extended in the following years. In California, there is an important state subsidy, and a generous San Francisco subsidy. (Lest you wonder, even foggy San Francisco gets plenty of sun.) In California, grid electricity is produced by PG&E, mostly using natural gas. The solar incentives aim to encourage private individuals and businesses to install solar panels and feed electricity back into the grid, thereby offsetting some of their consumption. If the solar installation produces more than the individual consumes, their PG&E bill can be negative (they get a check each month). In most cases, the solar panels would offset some fraction of the consumption, typically the expensive kWh's, more on this below. Here's what this looks like (video credit Solar City): One natural question at this point is: why feed the electricity back into the grid, instead of running your house directly on it? For one, the solar panels only work during the day. To have electricity at night, you would need to install a fairly large set of batteries to store excess energy. Batteries are very costly and often an environmental nightmare (containing acid or rare metals that are expensive to synthesize or extract). Second, solar panels energy output varies considerably between seasons (in the northern hemisphere, the sun's efficiency is very different in the winter vs. the summer), or even between days (on a cold, stormy day with cloudy skies, the output is quite different than on a warm, sunny day). Third, most electrical appliances expect a steady electrical output (110v, with small error margins), which are difficult to maintain even from a good battery bank. The goal of solar is not to necessarily replace the grid entirely, but rather to offset enough to substantially reduce our pollution and dependence on fossil fuels. Solar cells convert sunlight into electrical current. The conversion is pretty inefficient, around 20% of sunlight gets transformed to electricity. However, given that direct sunlight on average produces 120 W/square meter, on an 8 hour sunny summer day we can recover almost 200 kWh of electricity using a modest 1 square meter solar cell array. Solar panels produce DC current, but the grid operates on AC, so the output from solar panels has to be converted to AC using an inverter. This exacts another small efficiency penalty (around 20%), and has to be tuned to the size of the solar array. Solar panels are expensive (largely because they're not yet mass produced, so they can't leverage economies of scale). Absent generous subsidies, in order for them to make financial sense, they have to be sized as a function of household consumption. As of the time of this posting, PG&E uses a tiered price structure for electricity: the first 256 kWh are the cheapest, at 11c. If you consume more than 256 kWh, the price increases quickly, up to more than triple:

• 11c/kWh - 0 -100% baseline (256 kWh)
• 13c/kWh - 100-130% baseline
• 22c/kWh - 130-200% baseline
• 31c/kWh - 200-300% baseline
• 35c/kWh - over 300% baseline

For a residence, it makes sense to look at a year's worth of electricity bills and figure out what is the consumption pattern. In a warm area like California, odds are you'll use lots of electricity in the summer (A/C) and less in the winter when it's cooler, but not cold enough to require heating. One solar strategy is to get a solar array big enough to offset only the expensive kWh in the summer (those at 30c or more). There is no magic formula here, each house is different, although in very broad terms a 2.5-3.5 kW solar array should do the trick for a lot of average-size homes. Before embarking on a solar project, it makes sense to first optimize your consumption using the cheapest tools: replace all incandescent bulbs with CFLs, configure computers and TVs to go into standby when not used, increase the temperature of the fridge and freezer, insulate the attic to keep cold air in, and so on. This can have a dramatic effect on your electrical consumption, as much as 30% reduction! At this point, take stock of your usage and size the solar array as a function of the new energy consumption numbers. Go solar!