What can solar do for me?

The prospect said he was interested in having solar panels installed on his roof. When I asked why, there was a long silence.

This is not a hypothetical situation. It happens often. The prospect may be thinking the answer is obvious and pondering why I asked the question, because in most cases, the person wants solar to reduce or eliminate their power bill. They have never thought it can do anything else. So, let’s start with power bill reduction.

By the way, the gravy is at the end. Stay with me…

There is not an electric utility in Alabama that will allow you significantly reduce your power bill via solar. Electric utilities generate revenue by selling kilowatt hours. Anything you save reduces their revenue. They already have the pole, wire, and transformer in place, and they will still restore power during a stormy night if needed. If everyone cut their bill in half via solar, how are they going to stay in business? Yet many Alabamians think that solar will negate their power bill and maybe put some spending cash in their pocket. Sorry, but that is not the case.

Generally speaking, utility companies are not interested in their customers cutting their bill while increasing the utility’s administrative costs. (Somebody has to keep up with what you buy, what you use, and what you sell.) Alabama Power, for example, has removed all financial incentive for owning solar specifically to discourage their customers reducing their electric bills via solar. In the absence of state incentives, every utility in the US will eventually do the same. These kinds of solar systems are going the way of the dinosaur.

But solar has some highly desirable capabilities. It can provide power. It can pump water. It can heat water. It can do all of these things completely independent of the grid. If you are interested in staying your house through a prolonged power outage with some level of comfort and security, solar is the answer.

That said, solar can still help you reduce your power bill. The least expensive solar option is water heating. It also has the strongest return. Watch the video on solar water heating on this web site. And non-Alabama Power customers can reduce their power bill a little by owning a solar grid-tie system. Just be advised that heating water with solar breaks even in about half the time as a solar grid-tie system.

Can we install solar panels on your roof? Of course, we can. But what do you want them to do for you?