The rooftop solar industry could be on the verge of collapse
time.com
time.com
I think most of the solar "boom" and "bust" comes from PG&E and its influence on california energy pricing.
Solar could not have gotten such a boost if it hadn't been for PG&E running up the price of electricity in California. The wholesale cost of electricity in California is still 2-4c/kwh, yet california electricity costs residents an average of 36c/kwh, and reaches 50c/kwh.
This gave a boost to solar, because with power THAT expensive, solar is a no-brainer.
Additionally, there used to be some benefits to folks who got solar in california, where they could sell back some power to the grid to defray their costs.
However PG&E holds all the cards, and recently legislation was pushed through so that excess power generated by solar customers can be sold back to the grid for around the wholesale rate, no matter the time of day.
Some folks think this is fair, but remember that PG&E has always been treated more fairly than anyone.
It is looking like a "war games" sort of situation for electric customers. Get solar and batteries, because the only way to win is not to play at all.
Those under NEM 1 and 2 get a lot of the electrical export back to offset import consumption, but those under NEM 3 are heavily penalized where export gives only around the wholesale rate that the only way a PV system makes sense is to pair it with battery storage so that export can be used during the night instead to offset generation during that time.
It just feels so backwards that NEM 3 discourages people to want to install a system.
The price of something is whatever the buyers are willing to pay.
There's no choice but to pay.
I believe electricity in santa clara and palo alto come from non-PG&E utilities that are reasonably priced.
https://www.cityofpaloalto.org/files/assets/public/v/4/utili...
I’m a new homeowner and have been looking forward to getting rooftop solar within the next year (recently swapped to a heat pump instead of gas furnace).
The local (PDX, OR) companies seem a bit sketchy but I do have at least one solid recommendation from a friend.
My mother however wasn’t so lucky and experienced something similar to the article where the salesmen claimed it would all be free and pay for itself but the. She ended up with a $16k loan. When she called to clarify they offered to double the number of panels on the roof and install for free, which she agreed to.
Any one else here with experience getting rooftop solar?
I went with a local company. The owner was an electrician and knew what he was talking about. He didn't try to upsell me. He didn't claim to be the cheapest but the price was competitive and the workers were in-house, not subcontracted. It seemed like just what I wanted.
The installation day came and they arrived early in the morning, and spent hours installing brackets. The solar panels were supposed to arrive by 9am. By noon they were still waiting. Finally they gave up and went home, no answer on the panels. The next day they came back to keep working, still with no panels. I sent them home and called the owner, demanding an answer. Eventually I learned that the panels were damaged in transit and it'd be weeks before they could procure new ones. They couldn't guarantee a date.
They had already charged my credit card for the full amount of the install. I told them this was unacceptable, the law says they can only charge a deposit, with the balance due when the work was actually complete.
They stopped returning my calls, so I initiated a chargeback with my credit card company. That got their attention. They begged me to cancel the chargeback, which I only reluctantly agreed to after they hand-delivered a refund check to me in person.
It took me dozens of calls before I found another company willing to work with the half-completed install. Most companies didn't want to touch it.
In the end, I got the system I wanted and it worked great.
One thing I learned through this process is that there are a lot of companies who want to install solar, but none who want to service your existing solar installation, which is seen as a money-losing business. Lots of homeowners buy a system that supposedly includes an excellent warranty, but then their solar company goes out of business, and suddenly they have nobody to call when something goes wrong.
I don't really know the solution to that problem. It makes me think that if I had to do it again, maybe I should go with a larger national company.
Ugh! Every independent tradesperson that’s spun that line (“I’m not cheap, I’m quality” etc) with me has turned out to be a liar. Super expensive without the quality part …
Most are conmen and incompetent at running a business and price isn’t a strong signal for a good one
Anyone who comes in strong with the hard man, “I’m expensive for a reason” spiel is a hard no now
I'm in San Diego, we were paying about 500/month for SDGE (fluctuating anywhere from 300-800 throughout the year, 800 because of gas prices last January).
We're paying Sunrun a fixed $300/month, with a 4% increase annually for inflation (presumably electricity prices will also go up during the same time).
Sunrun 100% paid for a main panel relocation required by our county to be to code, so we literally haven't paid for anything other than the 300/month bill.
So far I've only had a good experience.
Unless you go completely off-grid then rooftop solar isn’t going to help with outages as they are turned off during outages to protect electrical workers and the power grid. [1] Your problem can be solved with home batteries.
1. https://www.paradisesolarenergy.com/blog/will-solar-panels-w...
Tesla's PowerWall is more capable than some, but I've heard nightmare stories about working with Tesla customer service so I stayed away from that one, even though technologically it's probably the most advanced.
Might even be illegal, depending on jurisdiction. For good reasons, you could kill electricians working on the local grid or firefighters working on your house if you're not careful with the install and adding local shut-offs.
My battery turns off when the grid goes down, but it has 3 outlets directly on the body of the battery, and those always work. I run extension cords from those when the power goes.
That misconception is now 15 years old
For an "auto island" functionality, I would need relays controlled by the inverter on all 3 phases between the electricity mains and my main switch box, right? I don't have relays like that.
Add another battery and bigger inverter and you can double that. Unless you've got a kiln or perpetually running hot water heating, I'm left baffled.
Though apparently there is a thing called a "softstart" that can be installed to mitigate this.
I don't actually know anything about this stuff. I just watch youtube videos.
So unless there is something magical about electricity in the USA, I'm not sure where this scare story is coming from.
I have one of these https://www.sunsynk.org/ourinverters
I suspect rooftop solar only appears to work because the sales pitch sounds good, there are government subsidies, net metering is broken, and people don't consider depreciation and maintenance.
I live in the Netherlands. Sure, we have a reliable power grid that doesn’t go offline for hours or any frequently to make a case for grid backup, but the power companies here charge heck of a lot of money for power. Think about it. The utility company commissions a solar farm (lower cost than roof top solar), but surely hire a 3rd company to operate the farm ($), and then the utility company wants to make $ for their shareholders, therefore, we end up paying a lot of € to cover these.
Now, I have as manay panels as I could on my roof (10) that generates more than my average use in the Summer. I run a heat pump that can heat & cool and Ioperate it when the sun is shining. I do laundry when the sun is shining. Because of net metering, my grid usage practically cancels out against my solar energy production. When the net metering subsidy goes away, I’ll install a reasonably sized LFP battery at home to smooth out day/night patterns, and possibly covering the occasional cloudy days right after a sunny day. No power costs from April to September already pays the cost of my panels in just 5 years. It is free money(as in I save it from going from my pocket to the utility company and their shareholders).
So, it does make sense. Atleast in many parts of the world. If you live in a part of the world with super reliable grid _and_ low prices, or you’re so rich as to not care, then probably, it may not make sense to you :-)
I was just talking about it with some friends from South Africa. They said almost every household there sort of needs to be energy independent because the power company is in the ruin. So, solar + batteries it is. What would you do otherwise?
You missed the largest reason home solar can be competetive and that is taxes. 11 cents per kWh and 3 cents sustainability charge and then 21% VAT over the cost price + taxes. And then the government mandates the energy companies have to buy your energy for the same price they sell you energy.
So as with many thing here it only makes sense because the government has completely distorted the market.
Now, let the tech mature for a reasonable longish term energy storage and I’ll set one up in the backyard :-) Save excess energy from the Summer, use it in Winter, repeat.
I don’t have enough space for the amount of LFP batteries I’d need for such seasonal storage. Even flow batteries of today needs more space than I have. So, it will have to be some $future tech that could allow me to save the summer for the Winter.
Several devices that took EUV machines(that cost hundreds of millions each) to etch login onto themselves - microchips on my laptop, phone etc.
A pipe constantly supplying flammable gas that was probably mined thousands of kilometers away just so that I can burn it and heat up my water for shower.
A very dangerous to the environment - refrigerant in both my fridge and heat pump.
A tank full of dinosaur juice in my car, which itself was machined and built with some exotic metals mined somewhere else in the world.
What difference is a few more kilograms of futuristic substance that can save energy for my house make?
I know hundreds or thousands of kilograms of LFP batteries in my backyard in feasible today. But who knows. Maybe we will find a way to mine Lithium or replace it with Sodium and the whole process would become “normal” like the metals in my 3 ton car.
I’m struggling to even think about this argument. How does something on the roof prevent firefighters from putting out the fire? It’s not like firefighters drill a hole through the roof to ingest extinguishers..
The solar panels themselves are _outside_ the roof. So, if they catch fire, your roof must have gone to fire by now, and you have bigger things to worry about.
https://nos.nl/artikel/2493147-bouwregels-voor-verduurzaamde...
I cannot see how solar panels on the roof could hinder fire safety.
All the Li-ion batteries we keep inside the house in the other hand… particularly the old ones on our used electronics laying around in closets and drawers without being paid attention to. That’s what worries me the most. I can only get the most flexible fire insurance for my home.
Basically, "how much would you pay to limit how much $powerco can screw you in future?". Human nature means a lot of people will willingly pay double for that.
In the last 5 years, has your kwh price increased? By more or less than inflation?
If utility scale solar takes off, do you expect that future prices will reflect a) capital and operating costs plus a fair margin or b) whatever the market will bear?
Personally I’m on variable rate electricity so it’s difficult to tell overall how much its climbing. But my feeling is that in my area the previous two winters were extremely high, but that this winter has been cheaper. A lot of that is down to missing infrastructure and political structures though.
Solar produces 10x as much power per area than energy crops.
And other than with crops, you can have sheep grazing and have a functioning meadow ecosystem develop below the panels.
Also, how are you planning to grow meadows under solar panels without any sunlight?
https://cdn.arstechnica.net/wp-content/uploads/2021/10/Getty...
The sun moves, and therefore the shadows move. And you need some space between the panels anyways, so they don’t shade each other. Also, grass can grow in the shadow!
The cost of installation is not a problem, because the ROI is greater than the interest on a loan. That’s what banks are for!
Getting Germany off nuclear has been in the making since the 1980s, and a big factor was fighting corruption.
We still have a glowing mess from those days, waiting another 80 years until it can be cleaned up.
https://www.worldometers.info/geography/7-continents/ says the population density of north america is 28 people/km², and south america is 25. meanwhile, europe is 33, africa is 49, asia is 153, "australia/oceania" (???) is 5, and antarctica is 0. so basically the population density of europe is the same as america, africa is just a little bit higher, asia is much higher, and australia is much lower
possibly by 'pretty much any country outside of america' you meant either nigeria or singapore
but let's consider the worst case continent, asia. 153 people per square kilometer means 6500 square meters per person. hopefully you are aware that the average home size in asia is not 6500 square meters or even 65 square meters, and that a substantial fraction of people live in apartment buildings which share a roof. so the vast majority of land even in asia is not roofed. this is also obvious from looking at any satellite photo. but enormous numbers of people live in houses with gardens or even farms attached
if we assume a 15% average solar capacity factor and 21% efficient solar panels, 6500 square meters per person is 200 kilowatts per person. current world marketed energy consumption is something like 2, 2½ kilowatts per person. that's still too much to put on the average roof but it's not exactly a major fraction of the total land area either
even nigeria is only 250 people per square km
you're right about singapore tho
I think it's in the big picture it actually does make sense. True it's not the cheapest, but it is the fastest way to actually get solar panels into sunshine and start solving our problems.
The additional cost is paid mostly by "volunteers" instead of having to raise taxes or wait for some corporation to make a move, there is no NIMBY-problem since it's actually the BY-owner who makes the decision. You can mobilize thousands of companies (solar panel installers) at once all around the country. Rooftop solar grows by about the same as a nuclear power plant per year in some countries.
Finally the resulting power generation is geographically distributed so that no single rain cloud can cover the entire "power plant".
I think larger projects run by governments and large corporations should be focused on generating gas or building battery storage, so that some of that cheap rooftop solar and other renewables can be stored for nighttime and winter, instead of being sold for negative prices at certain times.
1. they become single points of failure, and their risk tolerance for outages may not match yours, so you may end up either paying excessive costs for reliability you don't need, or experiencing an outage risk you can't tolerate. or they may have outage risks which you can't solve by dumping money on them, such as corruption
2. they sometimes try to extract monopoly rents
there are also coordination problems around things like time-of-usage billing. solar power is free during the day, but your utility provider may not be willing to deliver it to you for the extremely low marginal price of transmission and distribution; they may be legally obligated to charge you the same price as at midnight, for example
If the solar company has to pay, it might not bother at the end of the lease term.
This can turn into a very low price to sell the panels at that time.
In other words, part of the payback/value is letting people say/think "I'm a good person."
We can argue about whether the additional solar demand due to virtue-signaling had good effects but it did produce additional demand.
The bit of the industry that is at risk collapsing is the VC funded companies that "help" their customers get solar roofs by talking them into dodgy loans or leases they can't afford. If people can't pay off their loans or cancel their lease, these companies end up with a lot of solar panels that are stuck on roofs not generating any monthly recurring revenue. Removing them means spending more money and the second hand value is probably not amazing.
Add a lot of dodgy sales practices to the mix and the same kind of sleazy practices that banks used to talk people into mortgages they couldn't afford before the housing bubble burst in 2008 and you have a nice recipe for a company sitting on a lot of debt that is at a high risk of defaulting and not bringing in the revenue that they thought they were going to get. They'll create a big mess by twisting lots of arms to get some of their money back and bankrupting some families in the process and they'll get bogged down in expensive court cases for years to come. So, what's collapsing is the notion that these companies that took billions in investment to fund all this are going to turn into nice little rainbow pooping unicorns.
This kind of economical Darwinism is fine. Bad businesses not making it and taking some investors with them is not going to be the end of the world. But it's not going to slow down solar panel production and deployment. The US has plenty of underused roof real estate, and most of it us at a great latitude for getting some decent energy out of solar. With US grid infrastructure being as bad and expensive as it is, there are going to be plenty of people looking at getting some panels on their roofs. Just like every else in the world.
Even if they over-leveraged, it will kill a bunch of companies, but the industry will bounce back. Maybe that's what they mean with a collapse... so I guess the title is fair after all.
I’d do it if the return was better, but it’s pretty meagre return unless I do it myself (and that’s not something I want or should do)
TL;DR never again. Way too expensive for what it gains you, way too much risk (to your roof, of future costs for roof maintenance, et c.) Installing on a roof is crazy-expensive compared to ground. If we have enough room at our next house I'll self-install panels at ground level and have an electrician do the rest. It's just not favorable enough a move, otherwise, to be worth the risk and hassle. Ground-level's way cheaper, even if you don't self-install parts of it, and won't make your roof more complicated. It's technically saving us a little money, but no, not worth it, the peace of mind is worth the tens of dollars a month or whatever.
Apart from raising the panels to the roof and fixing them in place (brother helped), we did it just me and dad. Panels are just too heavy/bulky for 2 people.
The terracota roof have 0 new openings, as the hooks are in the space where two tiles overlay, so there is 0 fear of long term damage trough water ingress. The hooks and aluminum wireframe fixture were the most expensive part of roof instalation.
So, cheap, fast (3 weekends total?), and fun. I am surprised some people have totally different experience
Most people in the US don't work on their own roofs. You need safety equipment most people don't own, plus protective equipment to keep from damaging the shingles, and to be proficient with it you need to use the stuff more than once every couple decades. And even then, it's pretty dangerous.
Can you provide any more details regarding your scenario? Is it a specific style of roof? Or material?
And what are the significant costs regarding roof vs non-roof installation?
In our situation the only suitable place to put panels was on the roof, so it wasn’t an option. But I’m keen to understand the factors.
2) Now the panels have to be removed and re-installed any time those parts of the roof are worked on. That's expensive. Roofing companies tend not to like solar. You'll have trouble getting a warranty on the work if you've got solar, and likely pay a premium for a company that'll provide one (on top of the much higher labor costs) by finding a company that does both solar and roofing.
3) If work ever needs to be done on the panels, and it doesn't fall under a warranty, it'll be more expensive than ground-level.
4) There's a greater chance of something going wrong with all the above because solar adds more components to the whole system of the roof, aside from punching a bunch of holes in it.
The higher costs and risks plus naturally long pay-off period mean I don't plan to ever pay for rooftop solar again. Wish I hadn't this time.
It's just not worth it once you factor in the period to recoup investment on the panels. The extra headache and risk plus long period before you're in the black anyway, just nowhere near being worth it. And all that assumes nothing goes wrong with the panels
If I thought I'd live more than 10 or 15 years in my house (Which I'm probably not) then I'd be investing right away. But I have already lived 10 years in it, will do max 10 more years, and the roof is also 10-15 more years since the house is 25. That makes it a non-starter for me. I'd do it if I were in the black in 5 years though. Or if I had more than one power outage lasting more than one hour a year. Luckily I don't.
It's actually quite easy to accidentally create a leak with various common roof systems. It's often quite easy to fix the mistake when it's made. But the mistake is not always noticed, and the work is not always done by competent and experienced people. There doesn't need to be anything malicious about it. Part of my day job is fixing those mistakes.
It's like everybody is racing to the top, while being in a landslide going to the bottom.
they've also been common for b2c transactions for at least the majority of that time, especially when dealing with consumers with limited cash flow