Solar with Batteries vs. Generator: A Cost-Benefit Analysis

In the realm of backup power solutions, homeowners and businesses often find themselves choosing between traditional generators and modern solar systems with battery backup. While both options provide energy security during outages, their long-term costs and benefits differ significantly. In this case we are looking at a larger, whole-home sized generator and comparing it to a solar system that produces as much or more power. See table below for comparison of costs, savings and benefits.

Solar Prices Dropped off a Cliff and Into the Ocean

Here's a great article in Clean Technica by  Zachary Shahan on the falling prices of solar (PV). The cost per watt is the key measure to follow. Basically a rule of thumb is that $3 per Watt installed should be profitable, before any tax credit considerations. In 2006 the cost was $3.50 per watt for the panels. Now prices have dropped below $0.50 and would be lower if there wasn't a trade tiff going on with China.  Even with $1 to $2 per watt installed, the prices are getting to be crazy low. The Investment Tax Credit dropped to 26% percent in 2020 and will drop to 22% in 2021, but the installed costs after tax benefits should be less than $2 per watt. That's a crazy profitable investment, especially for businesses. (See our discussion and  Solar Calculator on the residential and business PV investments.)

Solar Investment is Crazy Profitable for Businesses and Good for Homeowners

[Update. The Inflation Reduction Act 2022 has raised and extended the 30% investment tax credit to qualified investments. There are many limitations and additions. See our Blog post here. This makes all the financial discussions below much more profitable. Also, higher inflation and higher power inflation. The below Article was originally published in Summer of 2020.]

 

SBP has done several detailed financial calculators for analyzing both residential and commercials solar projects. SustainZine has a main web page on Solar Profitability where we discuss examples from our Solar Profitability Calculators: https://www.sustainzine.com/p/solarinvest.html ... Here are articles – and YouTube videos – discussing both:

1. Quick Take on  Residential Solar: Solar Invest 2020: Do Good and Save Money Too … See the video related to Residential here: Solar Residential: Good Investment & Doing Good
2. Full Financial Analysis: SolarInvest2020: Residential Solar is Good, but Commercial Solar can be Crazy Profitable! … See the video related to Commercial/Business here: Solar for a Business can be Crazy Profitable: Do Good by Doing Well

YouTube Video on Residential: Solar Residential: Good Investment & Doing Good https://youtu.be/p0pqg4ZeTjY

Dr Elmer Hall talks about the doing good and making money at residential Solar. He discusses that subtilties of the financial analysis for a homeowner, and why it typically is a far better decision than a typical profit analysis would suggest. #SustainZine #Solar #RenewableEnergy #SBPLan

YouTube Video on Commercial Business: Solar for a Business can be Crazy Profitable: Do Good by Doing Well https://youtu.be/ulryBkhsKWg

Dr Elmer Hall talks about the doing good and making money by a business installing Solar. He discusses the financial analysis for a business and why it probably is such a great investment. The investment for businesses has huge tax savings. Plus, the money to pay for power to operate the business is already committed if the building is used. This is Part 2: See part 1 related to Residential as well. #SustainZine #Solar #RenewableEnergy #SBPLan #Profitability #CrazyProfitable 

IntellZine: Big winners of Renewable Energy -- IP and Manufacturing

Here is a June 7 2020 post over on IntellZine, our Intellectual Property-centric bog. The blog post was about Renewable Energy patents an how much they have expanded, especially solar IP.

Here is the Big winners of Renewable Energy: IP and Manufacturing article.

As you look at the companies that are winners in Renewable Energy (RE) you have distinct winners (and losers, especially in the fossil fuel world). But there are entire countries that stand to win as well. Several countries have become exporters of energy, for example, when they produce more regional energy than they can use. I like the image set related to 25 areas/countries that are winners in Renewable Energy (at LoveMoney.com, The world’s greenest nations that are reaping the rewards). Here’s Love/Money’s take on China, both in terms of the technology (Intellectual Property) and the manufacturing/exporting:

“Of all patents for renewable energy issued globally, as of 2016 China has 29%. That's more than 150,000 patents, which underlines the focus of China's investment in the industry. So it's not a shock that the country has been dubbed a “renewable energy superpower” in a recent report issued by the Global Commission on the Geopolitics of Energy Transformation. The report argued that, as renewables come to fossil fuels globally, new energy leaders will emerge.”

The US had only 100,000 patents (vs 150,000 for China) and Europe had 75,000 in renewables according to the Forbesanalysis in Jan 2019.  Overall, patents in renewables has made impressive progress, even though RE patents are only 1% of all patents (and other high-tech categories like computers are about 6%). Check out the great article at the World Intellectual Property Organization (WIPO) on RenewableEnergy patents by James Nurton. More than half of the RE patents through the Patent Cooperation Treaty (PCT) are in solar. Fuel Cell technology has consistently exceeded Wind in terms of patents. Fuel Cell (using hydrogen) is important because it can function as battery, battery backup, stationary power and portable power. Geothermal is trivial are of RE patent activity. When the RE “international” patents (PCTs) are registered at the national level the first three countries are: Japan, USA, and Germany.

On the manufacturing/exporting side, China has been a huge producer of the world’s renewables (solar, wind and more). Here’s how LoveMoneysummarized Chinese production of RE:

 “China is currently the world’s largest exporter of solar panels, wind turbines, batteries and electric vehicles. The country is well-suited to wind power production, and it has an estimated potential capacity of 2,380 gigawatts. What’s more, many Chinese companies are investing in renewables.”

Keep in mind that many things sustainable are lower tech, not higher tech. Much, if not most of sustainable solutions does not require break-through solutions. Using less energy can be very low tech (turning the lights out when out). Driving less (by telework) can be no tech. But in the cases where leading tech can be a major competitive advantage, he owners of IP will win.

Look also at GlobalTrends in Renewable Energy Investment in 2019 by UN Environment Program and Bloomberg. Where is RE coming from? The investment from 2010 through 2019 has been $2.6T with 52% in Solar and $41% in Wind.

And the final question: how do we get to 100% renewable energy in a reasonably short period of time?

#RenewableEnergy #REPatents #IntellectualProperty #IntellZine #SustainZine #WIPO #Sustainability #PCT #REInvestment #Solar #Wind #RE100