Ballers on Budgets: Solar Panels Cost Worth the Benefits?

How long will it take for solar panels to pay for themselves?

The question seems like an easy one to find the answer for, until you realize that you don't know that much about solar energy. The question was posed to Rachel Connor, a Sustainable Building Instructor for Solar Energy International, who was more than happy to provide a brief education on energy conservation before answering:

"When you are talking about ways to conserve energy and reduce home energy bills there are basically two different ways of doing it--there's conservation and then there's efficiency.  Conservation is basically a lifestyle change in which you change your behaviors to reduce your use and save energy. Conservation paired with technological fixes (efficiencies) will save you a lot more than if you just relied on technological efficiencies. As individuals look at reducing their bills, focusing on both conservation and efficiency measures will get you the biggest bang for your buck."

With that said, here are Rachel's top five tips for conserving energy and reducing your home energy bill:

1. Energy monitoring
   
   Energy monitoring consists of measuring and gaining awareness of where you are using your energy.Your energy bill will show how much you're using each month and how much you're being charged per unit. You should then purchase a Kill A Watt meter which you plug into the wall, then plug your appliances into, to see how much energy is being consumed. You can then calculate how much energy is being used with each appliance. Essentially, your first step is to strive to be an educated consumer by deciphering your bill. "You have to know where it's going and what you're using your energy for," comments Rachel.
2. Air sealing
   
   Next, you want to reduce the air leakage from your windows, doors, and also from where the foundation and roof meets the walls.
3. Heating and cooling loads
   
   "When you realize how much you're using to condition the air within your space you can then calculate how much you can save by turning the thermostat down or up a few degrees," Rachel says. "Look at the efficiencies of your heating and cooling equipment and evaluate whether it's time to replace them." Few people like wearing a sweater to stay warm or using fans to stay cool, but if you're truly committed to reducing your energy costs, you'll find a compromise.
4. Hot water
   
   "Next to air conditioning, heating your water is where you use the most energy. The less hot water you use to get the task done the less you have to pay to heat," Rachel explains. Water saving fixtures or faucets such as low flow fixtures can help to reduce the amount of water wasted. "In some homes, the hot water is needed across the house - far away from the water heater," she adds. "So, you run the water for a long time to heat it up, then when you're done you turn it off and the hot water sits in the pipes and cools off. You've now lost the benefit of the heated water that you just paid for." Existing home structures can eliminate this through the use of on demand or instantaneous hot water heaters installed at the source of where you want the hot water so you don't have to wait. This heats the water quicker and more efficiently.
5. Refrigerator
   
   As far as your appliances go, your refrigerator is probably the one that uses the most energy because it runs constantly and cycles on and off. If your refrigerator is older than five years you can save significant amounts of energy by replacing it with a more efficient model. "But the solution of many people is to put the old refrigerator in the garage and fill it with adult beverages, using it every once in a while," Rachel adds. "If you absolutely must do this, unplug the refrigerator in the garage until a few hours before your guests come over. Basically, either strategically use it or don't use it at all. Find an appliance recycling program in your area and get rid of it."

Are you now ready for the answer to the original question? Not quite. First, you need to understand the three different ways to harness solar energy.

1. Photovoltaic (PV) panels or solar electric panels: PV panels displace the energy that comes from the grid and creates electricity for your house.
2. Solar hot water collectors or solar thermal collectors: Depending on your climate, solar thermal collectors either heat up water, or (during freezing climates) heats up antifreeze that will then exchange it's heat through a heat exchanger to the water that is then used in your home.
3. Passive solar: Passive solar uses the windows as collectors. Basically, you strategically locate your windows to allow sun to enter when you need heat and you shade the windows--not allowing the sun to enter--during a cooling season.

So now, the answer to the original question: How long will it take for solar panels to pay for themselves?

Answer: It depends!

"It depends on how much solar energy the panels are producing, how much grid energy they're replacing and what the demand is for the energy they're replacing. It also depends on the region you reside in," Rachel explains. So basically, if you slap solar panels on an inefficient house, the panels will never pay for themselves! "For every dollar that you invest in efficient appliances, you save $3-$5 on the cost of your PV system," Rachel adds.

Conclusion: If it's strictly an economic decision, you're better off reducing your load; meaning, conserve and become more energy efficient.

Ballers On Budgets was founded in 2009 as a project dedicated to educating people on how to live within their financial means while increasing their social status within their community with the aim to provide resources, information, and alternatives to spending a lot of money while engaging in a socially active lifestyle.