FEATURED ARTICLE: The New Solar Economy: A Hazy Path Toward Harnessing the Power of the Sun
Saufley Field Photo: Peter G. Miller
NEW HOME PRICING By creating a solar requirement for homes built after 2020, Cal- ifornia denies new home buyers the option of not going solar. It also increases the price per unit for new homes, creating an ad- ditional cost disadvantage when compared with existing houses. Building solar installations one by one is more expensive than building on an industrial scale. Utilities can buy panels in huge quantities and obtain substantial discounts as a result. According to the National Renewable En- ergy Laboratory, in 2017 it cost $2.80 to install a watt of direct current in a residence versus $1.03 in a utility-scale facility. RESIDENTIAL VERSUS INDUSTRIAL PRICING have PACE financing programs available for homeowners. The March decision by the CFPB to examine such financing and how it’s sold, as well as PACE op- position by some of the largest players in Washington, suggests that program changes are a very real possibility. First, homeowners can simply finance a solar installation the same way they might underwrite any major household improvement. They can use such options as pay- ing in cash, or applying for either a HELOC, or a second loan. In each case, property owners will have to The alternatives to PACE financ- ing come in two forms. FINANCING Both California and Florida
panels, the cost per kilowatt, and the amount of space required to generate a given amount of power will all decline. The reason is that solar panels are constantly becom- ing more efficient. According to EnergySage.com, homeowners regularly receive quotes featuring solar panels with 19 to 21 percent efficiency from solar installers. The company notes that these high-efficiency panels can produce 25 percent more elec- tricity than the lower-tier economy panels that made up the majority of the market in past years. In addition to utilities and rooftops, some situations call
for non-utility solar farms. A big electric user might build a cap- tive facility. Disney, for example, has constructed a 270-acre solar facility in Florida that churns out 50 megawatts – enough to power two theme parks. FLORIDAVERSUS CALIFORNIA The big question is which solar strategy will become more popular in the years ahead: California with its new home requirements, or Florida where choice is more open? In pondering that question, the big issues look like this:
entire facility is as quiet as a corn field. Every so often, there’s a set of big boxes on a skid, equipment that converts energy from the solar panels to power for distribution through the electrical system. Saufley is part of a quickly growing energy revolution, the mass production of electricity from renewable sources such as so- lar and wind. The enormity – and speed – of what is about to happen will significantly change the energy matrix. Florida Power & Light, as one example, says it will install more than 30 million solar panels by 2030. Going forward, the number of
consumption, reduce pollution, and increase the use of renew- able energy. We may start to see property owners seeking the option with the lowest cost and the fewest headaches regardless of where they live.
their renewable energy genera- tion, there will be pass-through benefits to homeowners simply paying their monthly electric bill. That means no loan application. No credit issues. No barriers to a sale or refinancing. Financing at the utility’s cost as opposed to putting the burden on the consumer. No worries about inefficiency, system maintenance, insurance, assess- ments, or squirrels on the roof. California and Florida have com- mon goals in mind, but different approaches to reaching them. They both want to cut carbon-based fuel
Peter G. Miller is a nationally-syndicated newspaper columnist, the author of seven books published originally by Harper & Row (one with a co-author), and for many years a Washington-based journalist.
compare costs and terms. Second, homeowners can
increasingly get the benefits of solar energy and not bother with financing at all. As utilities expand
18 think realty housing news report
may 2019 19
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