Home solar panels: a beginner's guide to saving electricity

MANILA, Philippines – A month ago, we finally took the plunge. After years of hemming and hawing we finally agreed to have our heretofore bare roof be adorned with 12 solar panels. Each can generate 250 watts per hour from the rays of the sun for a combined total of 3 kw per hour. Every day, we get at least 4 hours of sunshine, effectively harvesting 12 kw each day.

What does this mean? It means during the day our household appliances are directly powered by electricity generated by these solar panels ( for example: GOAL ZERO SHERPA 100 KIT )

It means our once idle roof becomes a quiet mini power plant for half the day while the sun is out. It lets us get off the Meralco grid for a few hours each day. Which of course, translates to savings when your monthly electric bill arrives. And on the average we are looking at a 40% "discounted" rate on our bill.

This is the experience of Edgardo T. Valenzuela, an adjunct professor at the Ateneo School of Government and a homeowner in Alta Vista in Quezon City. Before installing two-kw solar panels on his 200-sqm property, his electric bill came in at P6,000 for a monthly electric consumption of 5 kwh.

“But now, with the solar panels. I only pay P3,500-P4,000. My savings from the solar panel amount to at least 40% of my original bill,” he says.

This discounted rate already includes credit from excess energy that he "gives back" to Meralco via net metering. The model installed in his house, as in ours, is what industry people call a "grid tied system."

His home is still connected to Meralco. His nighttime energy needs are still provided by Meralco. When the power company has a blackout, he experiences it as well. Net metering, on the other hand, is the process whereby unused and excess energy are fed back into the grid, which is then bought by Meralco at half the price. It is usually reflected as credit on his bill.

40% is a considerable rebate by any means. Why then are people not jumping on the chance to have a go at this kind of savings? The answer is affordability. Installing solar panels is not an easy decision to make.

In 2014, when Valenzuela decided to build his very own eco-house, the option to install solar panels came at a whopping cost of P320,000 for his two-kw installation (or P160,000 per one kw). He and his wife had to think really long and hard before they finally decided to do it, having had to withdraw a part of their pension plan to pay for their solar plans.

In contrast, 2017 prices are a little more friendly with one-kw costing P120,000. That’s a drop of 25% in installation costs. But even at this rate, prices are still daunting. It’s a commitment. Then again, maybe it’s our perspective that needs to change. Maybe, instead of looking at it as an expense, we should view it as an investment.

Based on its August 2017 news release, Meralco sells at P8.39 per kilowatt. The typical return on investment rate is usually pegged at 6-7 years. “After that, it’s pure savings,” says Valenzuela, who is halfway through his investment period.

Take heart though, there is an easier way for a homeowner who wants to go solar. Rappler asked if Solar Solutions is open to a modular system of installing these panels to make them a bit more affordable. The answer is yes.

For example, if after an ocular inspection, your house is assessed as needing 3kw (12 panels), you don’t have to shell out the whole amount right away. If you only have enough for 1 kw (4 panels), they can do that for you. And if the following year, you are able to add another kilowatt, that’s also doable and so on and so forth, until you are able to reach your goal.