IS MICHIGAN SOLAR-Y OR... NOT REALLY?

Follow the money, right? It's true in so many contexts. It's no surprise that cost savings are often the primary reason that people are interested in solar energy. And the "cost curve" of installing solar has declined precipitously in the last ten years. Probably everyone you know has solar. No? Hmm, let's read on.

The National Renewable Energy Laboratory (NREL) found that the cost per watt of installing solar panels declined from $7.53 to $2.71 between 2010 and 2020 (a 64% drop). This article from Fast Company cites an even more jaw-dropping number: the price of solar has dropped 99.6% since 1976!

So if the prices are amazing and cost savings is one of the main reasons why people install solar, why does it feel like everyone is talking about solar, and yet at the same time you can’t personally name many friends or family who have solar? On the one hand, here’s an article called "Explaining the exponential growth of renewable energy." But then there’s this one: "Why Aren't Solar Panels Everywhere?" So which is it?!

AT LEAST THREE THINGS ARE GOING ON HERE:

1. We're at a tipping point, which is very impressive statistically, but it's far from total adoption. Even if we go from 1% to 2% of all energy generated from solar power in Michigan (a 100% increase), you're still going to see 98 out of 100 homes without solar panels. Human "confirmation bias" means that every home you see *without* solar panels reminds your brain that you basically do not live in a solar-y kind of place.

2. Utility-scale solar is probably invisible to most people (heck, energy production in general is invisible until there's a problem with the grid). Even if utility-scale solar spiked between 2020 and 2021, your life didn't change at all, and you shouldn't be blamed for thinking you don't live in a solar-y kind of place.

3. Looking at this from a per-state perspective will help inform the discussion. Here are some nationwide stats; you can see Michigan is in 25th place nationwide, down from 19th place). Decidedly ho-hum, and not an overwhelmingly solar-y kind of place.

Bonus issue! Compared to states with more cooling needs, we have lots of heating needs in Michigan. In industry parlance: we are predominantly a heating-degree day (HDD) climate. We burn a lot of natural gas in Michigan. So there’s not as much residential electrical use to offset with solar, compared to… Texas, for example, where they need lots of air conditioning.

At the end of the day, regardless of where the populace is on residential solar adoption, this is still an individual choice. While someone might call it a "no-brainer," it might not be the right choice for others. So let's step away from the breathless claims for a minute and get the basics down.

SKIP THIS SECTION IF YOU KNOW THE PV BASICS

Residential solar energy systems consist of photovoltaic (PV) panels that convert sunlight into electricity. The process begins when sunlight photons strike the solar panels' semiconductor material, usually made of silicon, creating an electric current. The direct current (DC) generated by the panels is then converted into alternating current (AC) through an inverter, enabling its use within a household's electrical system.

The modern PV cell actually got its start around 1883, when Charles Fritts produced the first cells made from selenium wafers. But it wasn't until 1954 that the first silicon PV cell was developed at Bell Labs. Since then, efficiencies have gone way up from 8% up to a maximum of 34.5% (although most residential systems currently hover around 15-22%).

Solar power might conjure up images of self-reliance and resilience in an unpredictable world. But today’s solar systems are far more likely to be grid-tied, meaning they’re connected to your power company’s grid, not islands unto themselves, writes Forbes Home.

"Grid-tied solar systems are a great compromise for most homeowners for several reasons. They’re far less expensive than a self-contained system, and you never have to worry about running out of power as long as the grid is running, even during the darkest times of the year."

Ok, those are the basics. There are a lot of exciting things happening, but we don't want to get too far into the weeds. (If you do want to get into the weeds, some really interesting topics are vehicle-to-grid connections, virtual power plants, time-of-use considerations, and island mode; keeping the lights on during a power outage without battery backup.)

OK SO I GET THE BASICS AND I WANT TO GET SOLAR-Y. WHAT ARE THE BENEFITS AGAIN?

1. Cost Savings: We’re talking benjamins, baby. 💰 One of the primary reasons for getting residential solar energy is its potential for long-term cost savings. "Long-term" is the key phrase. By generating electricity on-site, homeowners can offset their reliance on the power company, leading to lower monthly utility bills. Additionally, some governments and utility companies offer financial incentives such as tax credits, rebates, and net metering programs, which make residential solar all the more attractive. Of course, there's an up-front investment, but financing can offset that. The whole plan here is that there's an eventual ROI. Electrifying all your machines will speed up your ROI; the more electricity you use, the faster your investment will pay off.

2. Environmental Sustainability: Solar energy is a clean and renewable energy source that produces no greenhouse gas emissions at the point of energy production. By installing residential solar, homeowners can reduce their carbon footprint, mitigating climate change. Important note here: this only makes sense if you're switching from gas to electric. If all of your major appliances are still running on gas, solar panels aren't going to make a big impact on your carbon footprint.

3. Energy Independence: Installing a residential solar energy system with battery backup makes you less susceptible to rising energy costs, grid failures, and other disruptions in the power supply. This enhanced resilience is relevant infrequently… basically during natural disasters or emergencies. Maybe think of it like health insurance; just because you rarely/never use it doesn't mean you don't need to have it.

4. Increased Property Value: Homes equipped with solar panels tend to have higher property values. Studies indicate that residential solar energy systems can provide a return on investment above and beyond the energy savings, by increasing the resale value of a property.

5. Longevity and Low Maintenance: Solar panels have a typical lifespan of 25 to 30 years, and they require minimal maintenance; mainly just an occasional cleaning. And some manufacturers/installers offer performance warranties. So if the panels don't perform as advertised, you are financially compensated. Low-maintenance, long-lasting, and guaranteed to perform? Sign me up. The appeal for homeowners seeking a reliable and hassle-free energy solution is undeniable.

At the end of the day, residential solar presents a compelling solution for homeowners looking to live more sustainably, reduce their energy costs, and help save our only known habitable planet.

By harnessing the power of the sun, homeowners can enjoy a range of benefits, including long-term cost savings, energy independence, increased property value, and environmental sustainability. With advancing technology and supportive policies, the future of residential solar energy looks brighter than ever.