March 8, 2012

• Let the Sun Shine In

  And face it with a grin, smilers never lose and frowners never win… Ok, silly song, but it always makes me smile. Other things that bring a smile to my face include writing with my partner (@We_Deny_Everything) because he  is meticulous, thorough, and a generally smart mo-fo. And economics, economics make me smile, especially when they are used to solve problems for things like energy AND poverty… My heart is singing this morning.

  John provided a very detailed, accurate report on solar panels and heating. He broke down a usage chart, price per watt, and what you would need to power. The man is impressive. I will not offer that detailed information. You can find that article here: http://we-deny-everything.xanga.com/759666153/photovoltaic-dreams/?page=1&jump=1524763308&leftcmt=1#1524763308 .

   I was inspired to research solar costs recently after reading an article in “The Economist” called Starting From Scratch.  

  

  The irony of living in a tropical paradise is the level of poverty. Not even a tropical paradise, but sunny and warm – perfect environment to tap into solar energy, but the costs are simply unattainable. Until now, that is. Eight19, a British company based in Cambridge, has begun a program to offer solar cells to rural, poor families in Kenya. It is an attempt to bring entire villages off grid combining solar and mobile phone technologies to work together. 

  This is the program in a nutshell: 

  Kenyans can receive a small solar cell that is able to generate 2.5 watts of electricity, a battery that can deliver a 3-amp current, and a lamp with an energy efficient light bulb. They can receive all of this for $10 down, which is not a small price in Kenya, whose average daily wage is $1.00 to $1.20. In Boulder, the area median income for a single person is $65,700, which would make average daily wage of approximately $127.00. That would make their $10.00 investment equal to an investment in boulder of $1,270.00, or slightly over 2/3 the price of average rents. OK, so that was a little off topic, but it is sometimes hard to compare costs in foreign places because we are unable to disassociate our own prices, costs, and wages from our home country. 

  Once the battery is charged, it is able to light two small rooms and charge a mobile phone. They can set the cell out again the next day to recharge. This is a small cell, the starter level. In addition to the $10 deposit, the buyer must also buy a scratch card for about $1.00. There is a reference number on the card that the user texts into the company. Once a person buys approximately $80.00 worth of scratch cards (generally taking 18 months) the unit is theirs OR they can upgrade their equipment for a bigger model. That can power more things and longer. The choice is theirs. This is a reasonable, affordable and admirable way of offering energy to people who need it the most, can afford it the least, and are in the best position to tap into solar energy. In Kenya, the average customer spends $10 a year on paraffin to fuel lamps and $2 a month to charge their phones at the market. That would make the total cost of the solar unit $90 over 18 months, or $5 a month for power until the unit is owned. The savings in only paraffin and cell charging is $2.83 a month, leaving the monthly addition expense of $2.17, or approximately 2 days wages. In Boulder land, 2 days wages equal $250 a month, not chump change. After the unit is paid for, there is only the savings of $2.83 a month and no additional cost (if they choose not to upgrade). The additional charge for the unit above the savings totals $39.06 over 18 months. This means 13.8 months until break even and positive cash flow (actually not flow, just savings) and an improved quality of life. 

  

  The company is expanding to all rural African areas and hoping to provide clean energy to 1.6 billion people. While popularity and usage increases and there is higher demand, the cost of solar technology will fall and become more affordable, efficient, and common. I can’t stand behind this company enough, and I know there are 50 more like this I haven’t heard of yet. 

  Here in the states, a photovoltaic system as discussed in @We_Deny_Everything post averages $10,000.00 to $80,000.00. He has more accurate costs over there, but a simple run down of what this means to you is this: (I should add, this is ignoring tax incentives and grants available.)

  1. Solar paneling saves at different rates, depending on where you live and what time of year it is. 

  2. It saves 30 to 40 percent on your power bill immediately.

  3. No maintenance costs.

  4. In 6 to 12 years, your panels pay for themselves. 

  5. Panels have a 25 to 30 year lifespan.

  6. All of this averages to be a ROI (return on investment) of 8 to 16 percent. Wonder if that is good or not? Just look at the same data for your cute little hybrid SUV that makes you look so eco-cool.

  Sorry, got off topic there for a minute. I am not and energy expert or environmental expert, but I can’t see how reducing our oil usage, providing power from an unlimited source, and making it affordable for everyone can go wrong. 

   

  Sources:

  The Economist – Starting from Scratch

  www.env-econ.net

  www.eight19.com

  www.renewableenergyworld.com

   

   

  • 7:10 am
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