Category Archives: Household

Refocusing on a Home Based Economy

2009 seems like a long away.  It’s has been “just” eight years, but as Donald Trump continues to be an international embarrassment on a daily basis it makes me wonder about those halcyon days when we waited for Barack Obama to take the oath of office.

2008 was a bear for a lot of people.  The economy literally seemed like it was going off the rails completely and no one had any idea how to fix things.  It turns out the “masters of the universe” in the high finance world had figured out a way to spread the risk and damage from low-grade securitized mortgage loans to almost every aspect of the American economy.  Amazingly, this contagion also spread to the global economy because as much as closed minded right wingers would like to believe the world is not interconnected globalization is a fact of life.

The buzzwords in the winter of 2008 and into 2009 were things like urban homesteading, frugality, DIY, canning, etc.  You get the idea.  We were collectively abandoning a consumer lifestyle focused on buying a plasma television a few inches bigger than the perfectly fine working plasma television in the basement of our home that was half again as big as we needed.  We were all wondering if maybe we had lost something in the pursuit of more square footage, solid surface countertops, nine foot ceilings, and crown molding.  Well, how times have changed.

Or has it?

After eight decent years of economic recovery, which has been uneven and much slower than prior economic recoveries, experts are beginning to wonder if the new era of Trump will also coincide with a recession.  Despite the major stock indices hitting new highs on a seemingly daily basis there is ample evidence that maybe there is just a little gas left in the tank and recession is waiting on the doorstep.

What to do?

My solution is to turn inward and focus on a home based economy.  It’s sort of in line with my theory that the most subversive thing that we can do is nothing.  [LINK]  By focusing our efforts inside of our homes the emphasis is no longer necessarily on the things we buy to consume.  It is inward facing and not concerned with external judgment.

Maybe it is about mindfulness.  Maybe it is about frugality.  Maybe it is about all of those things that we pay lip service to in conversation but forget to act upon the minute we get an email touting the latest sale at REI.  I am as guilty of this behavior as anyone else and it is the single thing that I am trying to break myself from over the course of the next few months.  It is my hope that by focusing on the economy of the home that I will slowly begin to break my own cycle of consumerism.  In the process I hope to solidify household finances and achieve some measure of greater satisfaction.

That sounds great, but what does it mean in practice?

Take a look at the image below:

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This is for the average “consumer unit,” so in reality you will spend more or less on items as your personal circumstances dictate, e.g. I do not smoke so I do not spend $323 per year on tobacco.  However, as a thought exercise it gets you to think about where you spend your money.

It’s easy to key in on the largest single unit related to “housing.”  Yet, for most of us our housing situation is somewhat inflexible because we have a mortgage, lease, etc.  It is easy for some blogger to scream “downsize” but the costs associated with that may actually make the option prohibitive.

Now, look at some of the other categories.  Transportation eats up the next largest portion.  Well, if you start basing your life around your home you will probably drive a lot less.  Trust me, once I started thinking about every mile driven being $0.50 tossed out the window I began to think about every trip I took by car and how I could reduce those miles.  Stay at home and you do not spend the money on transportation.  Yes, you will still spend money on insurance and tags for your vehicle but every mile not driven is less you spend on fuel and maintenance.

Food is the third largest contributor and another place where a home based philosophy can really make a difference.  Modern Americans spend a smaller share of their income on food than at any other time in the country’s history yet we still spend a lot of money both in and out of the home.  Plus, we throw away a lot of food.

The common thread throughout is by focusing on living a frugal life at home the expenses in a lot of these categories can be ameliorated.  If you are buying less stuff you are spending less money and producing fewer carbon emissions.  Like I said earlier the greenest thing you can do is nothing.

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A Full Month of Solar in September

September 2017 was the first full month with solar providing electricity for my home.  Yay!

The numbers are in and things look good.  For the entire month my solar photovoltaic system produced 509.63 kWh of electricity.  Compared with my estimated based on average solar radiation, my array’s azimuth, and other factors I predicted the system would produce approximately 536 kWh in September.  The system ended up at around 95% of the estimate.

This is a mixed bag, but the weather played a factor.  It was cool and cloudy for a good chunk of the month, so we used little to no air conditioning save for a few days when it decided to reach into the nineties.  Thanks climate change.

In terms of production versus consumption I ended the month producing an excess of approximately 130 kWh of electricity.  I will be very interested to see what my bill looks like with a full month of the bi-directional meter installed.  Last month’s bifurcated bill was an absolute mess to understand.

Also, the thrill of monitoring my photovoltaic system’s production has not really worn off.  On sunny days I loved to check and see how much the system is producing.  Every kWh feels like a small victory.

Ten Days of Solar in August

My recently installed and activated solar photovoltaic system was operational for 10 full days in August.  Over the course of that period of time the system generated approximately 178 kWh of clean and green electricity.  At an average daily production of almost 18 kWh the system is yielding somewhere between 70 and 75% based on system size, orientation, and estimated solar radiation.

Interestingly, during those ten days I am “ahead” approximately 95 kWh compared to my consumption.  This is probably due to the fact that late August in eastern Iowa has been chillier and cloudier than normal.  The chillier means we have not turned on the AC but the cloudier means my PV system is not generating as much as possible.  Damned if you do, damned if you don’t so to speak.

If I continue to get the prior ten days’ worth of average electricity generation I should blow past my September electricity usage because we have taken some steps to reduce our household consumption even further.  Previously we were using about 380 kWh per month across twelve months.  Since the PV system was activated we stopped using a medium sized chest freezer in our basement that was really just a repository for junk food from warehouse stores.  It was not a large or old freezer, but I have to believe that it consumed a decent amount of electricity.  Plus, September is usually a great month for sleeping with the windows open.

I am sure that the novelty of my generation exceeding my consumption will wear off, but it is really fun.  I just wish that the electric meter had one of those old style wheels so that I could watch it spin backwards in the afternoon when the late day sun is blasting my west facing array.

My New Addiction

One of the great features of my SolarEdge inverter is a monitoring system that produces a great looking dashboard:

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There is an app for my phone that shows the same information updated at fifteen minute intervals.  Damn, this is addictive.  I check it probably ten times a day to see what my new toy is doing.

Now that I mention it, I wonder what the production is right now…

Solar Power is Scary for a Reason

Solar power should scare the daylights out of anyone who generates electricity from coal, natural gas, and/or nuclear.  Why?  It works like some sort of middle ages alchemy.

After two half-days of work, a grip load of procedural hoops, and about $11k in cash I had my solar system installed on my roof:

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Now, it just sits there generating what I hope will be more than 100% of my annual electricity needs.  More so, it does it in the most unspectacular way.  The panels just sit on my roof, unseen from the front of the house, soaking up the sun silently day in and day out.  When I go to work the panels just sit there soaking up the sun without any intervention on my part.  When I go on vacation the same deal applies.

If you take into account the tax credits that I will receive from the federal and state governments, I am looking at a net cost of approximately $6k to generate all or more of my electricity needs from the sun via solar panels on my roof.  I keep looking around wondering if there is a catch that I missed somewhere that states this is not really possible.

Solar power used to be the stuff of Mother Earth News and Homepower, both great magazines but hardly the harbingers of mainstream adoption.  Sure, the hippie dippie science teacher at your middle school had solar panels, biked to work, and wore tie dyed hemp shirts but he was an outlier.  Solar power is no longer an outlier.  It is something that nearly everyone, including someone like me who lives in a very “basic” suburban home in a nondescript development in eastern Iowa, can put on their roof and break free of the fossil fuel monopoly.

These are seemingly dark times.  The threat of climate change is real.  Our government is led by a cadre of profiteers in the pocket of business interests with a nominal figurehead who is the single most unfit human to ever hold that office.  Our civil society seems not so civil anymore as polarization and animosity appear to be at extremely high levels compared with the relative calm of the recent past.

However, I hold out hope because solutions to some of these problems seem so close at hand.  We have the tools to create lasting and meaningful change that will lead to a resilient and abundant future.

Demand Destruction from Home

Demand destruction is what coal mining companies, utilities, and anyone who benefits from a centrally controlled power grid dreads.  Why?  Demand destruction represents an existential threat to the entire business model of these entities.

Consider the state of Iowa’s electricity generation mix and my recently installed solar photovoltaic system.  Iowa’s electricity generation mix breaks down like this for April of 2017:

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In Iowa non-hydroelectric renewables usually equals wind given the relatively low penetration of solar photovoltaic generation.  Another caveat is that the wind tends to blow strongly in the spring and demand for electricity has not spiked with the onset of the summer air conditioning season.

Now consider the impact of a solar photovoltaic system, mine or someone else’s.  When that demand leaves the grid, so to speak, what generation sources do you think will be curtailed?  In order I think it would be coal, nuclear, natural gas, and finally wind.  Why?  Wind turbines do not have a recurring fuel cost, so the cost to retire them does not include a perpetuity of fuel cost baked in which can be a significant driver for an asset with a long life.

In other terms, do you keep generating power by paying to burn a fuel or just harvest the wind for free?  In business school the number one lesson I learned in marketing was to not compete with free.  You will lose every time.

So, as demand disappears from the grid as a result of distributed residential solar the traditional fossil fuel sources are forced to compete with installed and cheap wind power for a dwindling number of customers.  I exaggerate to some degree to get the point across, but in Iowa this may not be such a moot point given the plans for wind power development in the next three years.

Depending upon how you measure it Iowa has more than 6,900 megawatts of wind power providing anywhere from 35% to 40% of the state’s electricity.  This is great news in and of itself, but the state’s two major utilities—MidAmerican Energy and Alliant Energy—have announced investments for an additional 3,000 megawatts or more by 2020.  Just with these additions—barring any additional activity by other energy players—would bring Iowa nearly 10,000 megawatts of wind power and give the state the capacity to produce more than 50% of its electricity from the wind.  This is without a significant portion of the state’s electricity demand being displaced by distributed residential solar or energy efficiency.

As you can see from the chart that when the wind blows heavily, which it tends to do in the spring, wind is already the largest source of electricity generation in the state.  That trend was true for February, March, and April of 2017. This is only going to grow in the future.

Our homes can be the drivers of change for a cleaner and greener world.

How Much Electricity Will My Solar System Produce?

By the beginning of September I should be generating electricity from the solar photovoltaic panels mounted on my roof.  The system will be comprised of 16 290W panels mounted on a nearly directly south facing roof (270 degrees azimuth give or take a degree for those of you into these things).

Using a variety of calculators online I averaged out the estimates of “peak solar hours” for my system as designed and came up with the following chart to estimate my solar system’s output:

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The output is based on taking the system size (4.64 kWh) times the peak solar hours and reducing it by an assumed system yield (65%).

The system yield is probably the trickiest number to estimate.  I went as low as 65% because that level would still allow me to meet my annual electricity consumption based on a 400 kWh per month rolling average, which dipped to 390 kWh the past few months and which I hope will drop even further with some forthcoming household changes.

The yield is a function of so-called system losses and general lower production due to siting issues, shade, cloud cover, dirt, etc.  My hope is that on balance I see a system yield in the 75% range.  This would give me a little breathing room above and beyond my average annual consumption.

The worst part right now is the waiting.  The solar installers are ready to go and the panels have arrived but we are waiting on the power company and the city to sign off on the system design.  Every day that I see the sun out shining bright is a day that I feel like I have missed an opportunity to generate clean electricity from the sun.