Saturday, June 28, 2014

the many facets of solar power plants - what is your perspective?


As with many things in life, one's perspective on something influences the way we feel about it it. How is it that two individuals can view the same item and see something entirely different? "Beauty is in the eye of the beholder" - we cannot help but view things relative to our personal life experiences, our memory, and patterns we form over time.

A jewel has many facets, you turn it around between your fingers, hold it up against the light - viewing  the reflections, colors, and brilliance. We choose the perspective that suits us best.

There is  a benefit to using an open mind and exploring more about something by having others describe it from their viewpoint. Sometimes we are presented new facts and we are able change our mind for the better.
Solar power is many things to many people - what do you see when you see a solar power plant? Let's examine a few of the many broad facets of solar energy: Economics, Morals, Status. These are all positive viewpoints, some will find solar power plants ugly or expensive and would not consider them on their roof in any case, at least for now.

Economics, payback:
Developing commercial solar power plants inevitably requires a solid business case. This is not easy for the simple fact that a good amount of money is required upfront. There is a lot of trust required that it will operate as promised over many years. Luckily the payback is very nice, and anyone with a horizon of 10 years or more will see great profit in building a solar power plant. Typically the "payback" is about 5-8 years, after which energy is basically free. Profit-centric corporations such as Walmart, IKEA, Walgreens, Apple, Intel etc. all have 100's of these systems installed nationwide. A private residence will see the same results in 8-10 years or so. Solar to some is pure numbers and profit: "when do I get free energy?".

Economics, cost of energy:
Another way to look at the economics is to add up all the costs of the system over its life - and divide it by the energy produced ($/KWh). This viewpoint is known as "levelized cost of energy (LCOE)" and it is the way that a utility will look at it. This perspective shows you that you will pay less than half of the alternative, the grid, if you live in a moderatly sunny state and have typical energy alternatives (gas, coal, nuclear), and typical utility costs. In the south-west, the largest developers of solar power plants are the utilities themselves, I guess they know a good thing when they see it. Fuel is usually a big factor in most power plants, and the sun does not send a bill. So this perspective is: "solar energy costs less".

Economics, investment:
If you have cash invested in Wall Street, it begs the question at what risk level are you invested, and what are the long-term returns. The S&P 500 offers about - 8 to 14 percent over 20 years, with a certain risk to the principle. After taxes this is net profit is less naturally. A residential solar power plant will return somewhere near 13% (depending on a number of factors) in equivalent pre-tax return rates over the same 20 year period, the risk is very low. Are you getting  near13% on your investments with a low risk?

Morals: global warming, and our legacy
Depending on where you were raised your moral compass is set. Your notion of right and wrong may have you think of a solar power plant as a solution to global warming, and a responsible way to serve our stewardship of planet earth. An important viewpoint would be the legacy we leave our children: polluted environment, rising seas vs. clean renewable energy. There are some early adopters of solar, back when the economics were not favorable, to them cost & convenience was not a deciding factor to install solar, it was just the right thing to do, a moral perspective, saving us from ourselves.

Morals: destruction of the human habitat, activist
Some may feel compelled to take a more active role in the required change they see in order to save our livable habitat from the effects of fossil and nuclear fuels. The incumbent industries (oil, coal, nuclear) will defend the turf they are on since it is very profitable. It is extremely rare for an industry to end itself knowing that it is sacrificing itself, and doing so for the greater good (e.g. just transition coalition). So an external active role in ending the status-quo is required it would seem. "Don't leave the planet to the stupid" is the mantra of one German solar company (Solon). That sounds like a battle cry to me. Activists have voiced these feeling with larger communities and politicians, outlining an alternative energy source as a solution. One goal of such activism is making it a law to mandate renewable energy. This in fact took place world wide, some places more than others. These laws are known as renewable portfolio standards (RPS). Solar then represents one option of complying with the law, and a victory for the activists.
Morals: ending monopolies, strengthen our democracy
In 1911 Theodor Roosevelt recognized the dangers of having large powerful monopolies, he battled the powerful oil monopoly Standard Oil for the benefit of the US citizens. We have not seen much anti-trust activity since then, possibly one noteworthy one was the Bell system, or Ma-Bell. Imagine if we had the Bell communications monopoly today - would we have smart phones? It is highly improbable that we would have had the amazing advances we now have today. Many states in the USA have regulated monopolies for electric energy utilities. A profit driven monopoly governed by elected officials, is not exactly a recipe for innovation and low costs. As one wise man said: "Solar photovoltaic power would give America the potential to challenge the utility monopolies, democratize energy generation and transform millions of homes and small businesses into energy generators. Rational, market-based rules could turn every American into an energy entrepreneur" (Robert F. Kennedy Jr.). This can be very powerful in a few ways: more competition, better prices, more innovation. Solar then represents a method to break up harmful energy monopolies, again.



Morals, end war over resources
Human nature is a product of evolution, being nice did not guarantee survival. Greece, Rome and other civilizations since became successful and prospered due to their might, conquests, and military power. Deep down most of us have the instinct to be aggressive, especially when survival is at stake, this is not just a human trait. It is easy to rationalize violent behavior in the case of defense (e.g. Gulf war, 9/11). Yet, are we really playing defense in the oil wars of late? What was the actual root cause of these hostilities? Oil security undoubtedly comes with a high human toll in lives, high political price, high economic price (cost & trade imbalance), and now a moral price (starting a war in Iraq). We struggle to see beyond the problem of "securing oil"- not many look for a real solution to the root cause of these recent oil wars - had we stuck to our plans to end the dependency of oil that the USA started back in the 1970's - these wars would not have taken place. Let us get back on this plan; renewable energy and alternative transportation energy is one very obvious part of a peaceful and prosperous solution. Or alternately we can train our sons and daughters to fight for what our nation needs and spend our resources on weapons. For some, solar power and an electric vehicle represents a future without oil wars.


Morals, affordable oil is ending, agape: love for mankind
Sweden's population decided it is best to find alternatives to fossil fuel oil in the near future, and make the transition away from oil law. The simple fact is that oil will become increasingly more costly to produce since we consume it at alarming rates, we have reached peak production, and it is finite. Lemmings running towards a cliff comes to mind. If you want to leave a stable world to your offspring, or love mankind, you will be compelled to look for a viable solution to oil. Solar then represents one part of the solution to to take us away from the very unhappy and reckless scenario we are in currently.


Status, bigger, better than your neighbor
Some feel the desire to flaunt their success in life, nice new cars, big home, etc. Solar PV systems can be a status symbol as well, and certainly take a good amount of upfront investment. having your home or ranch covered in solar can be an impressive statement. All the power to you !

Status, nerdy, bold, trendy, wise, cool
if you want to make a statement to your neighbors that you enjoy the latest technology, you are counter culture, unafraid to embrace change, you are up with the latest trends, and you love to tell everyone how it works, what better way to do so by prominently displaying a large array on your roof for all to see. You can quote Thomas Edison: "I'd put my money on the sun and solar energy..." Park your BMW i8 EV in the solar covered driveway as well and you are set.

There are certainly many more viewpoints, next time you are looking to start an interesting discussion bring up the topic.

When I see a solar power plant, I know what it does for the planet; less carbon pollution and nuclear waste generated to maintain our life here on planet earth. No strip-mining, polluted skies, or contaminated water tables (nuclear waste & fracking). I observe how well it was designed, mechanically and esthetically; was there pride in craft by those that built it? I want each and every one to last many decades - as they are certainly able to if installed correctly. Being in the solar industry, the satisfaction of the owners is quite important to me. I know that the owner is saving money, money put towards other important matters in life - or for some owners less work and income required to make ends meet; more time to enjoy life - a lower cost of life or higher quality of life. I hope my childern will not be drafted to some far off war to fight for oil.

I also just marvel at the thought of how it really works; silicon cells ceaselessly and silently absorbing radiation, and sending electrons off to do some work - to me the bright blue crystals of silicon in the sun represent a little miracle, a thing of beauty.

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