Installing Solar Panels

Okay, so I know what some of you are thinking now that we are talking about Green Power:

I want to put solar panels on my roof!

First, the good news.

TVA has a program called Generation Partners just for you! This program provides support and incentives for the installation of solar and wind generating facilities. This makes more green power available for GPS subscribers. And it creates a market for small-scale green power generation by homeowners and small businesses.

When you purchase and install PV panels at your home or business, you receive a generation credit of $0.15 for each kWh created, over 10-year period. The credits appear as a line item on your MLGW bill. You must activate your PV system by 12/31/08 to qualify for the Generation Partners credits. In addition, a federal tax credit, equal to 30% of your system cost but capped at $2,000 for households, is available for taxpayers who install by 12/31/08.).

Now, the bad news.

1. PV systems are expensive. To install a 2-kW system on your roof, you are looking at a $15,000-$$20,000 investment. (That $2,000 tax credit isn't looking so good anymore is it?)

2. You can expect to generate between 1,300 and 1,600 kWh of solar power per year for each kW of system capacity you install. That means, if you install a 1-kW system, your annual generation will equal what the average household consumes in one month. As a result, you can expect a 20- to 25-year payback on your solar investment.

3. The Generation Partners program does not certify or recommend installers, so you must find your own—and there are very few experienced installers in our area.

4. Due to the low annual output for PV in our area, you will never produce enough solar power to eliminate the need of MLGW's services, nor will you have a scenario in which MLGW owes you money for generating excess electricity

It's not that bad.

So, you probably won't be putting solar panels on your roof anytime soon...unless you move to California where the demand for energy is high and the prices are higher...but you will enjoy Memphis’s comparatively low cost energy for years to come.

The best thing you can do in your home is to conserve as much energy as possible. there are lots of simple things you can do.

And, if you have some money to spare, consider investing in a new, energy efficient heating and cooling system. Add insulation to your roof, install storm windows, seal your ductwork, select Energy Star labeled appliances when remodeling—there are dozens of opportunities to reduce energy use in your home.

If you want to support clean, environmentally friendly energy sources at a lower cost, then sign up for Green Power Switch.