Should You Get Photovoltaics for Your Austin Home?

As an architect who designs energy-efficient homes, one of the most common questions clients ask me is if they should install photovoltaics on their Austin home. I understand where they’re coming from, especially with power outages becoming more common and our sunny weather. Although there are a few scenarios where solar panels aren’t ideal, for the most part, they offer many practical benefits.  Photovoltaics are a fantastic active strategy to generate surplus power when it’s added to a home that’s designed for energy efficiency with passive strategies.  When added to an inefficient home, it certainly offsets the high costs of utility bills.

In this post, I’ll share reasons to go solar and how to determine if it’s a wise investment for your Austin home.

First, how does a solar panel system work?

Solar panels convert solar energy into electricity.  A photovoltaic (PV) charge creates direct current (DC), which is then converted into alternating current (AC) by an inverter.  AC is the primary way to fuel a home. While it can flow directly to your circuitry, you can also store it in a battery and use the reserves during power outages.

The excess energy can also be fed back into the power grid. If your system sends more power to the electric provider than you buy in a given month, the difference will be purchased through a Value of Solar (VOS) buyback plan. This is what happens in an on-grid solar energy system.

In contrast, an off-grid solar energy system is not connected to the grid, so you’ll be completely reliant on solar power and won’t be affected by power interruptions. This type of system draws energy directly from the sun. It can convert and use the energy immediately or store it in a battery for later use.

The size of your system will depend on whether you plan to use it as a supplementary energy source or as your sole energy provider.

5 compelling reasons why solar energy is a good investment for your Austin home

Here are some reasons why you might want to incorporate an alternative power source in your home.

1. Rebates and incentives

Solar rebates are some of the highest in the federal rebate program, making it the top reason to install solar panels.  This may change, but as of April 2024,

• You can get a $2,500 rebate on qualifying PV systems that are at least 3 kWh in size. To apply for it, take the Solar Education Course and quiz.

• Another incentive is the Value of Solar Bill Credits which offers a 9.91 cents/kWh credit that can lower your electric bill. For example, if you used $120 worth of electricity in a month and your solar panel system produced energy equal to $114, you’ll only pay $6. Similarly, if it produced $135 worth of energy, the excess will get carried over.

• You may also be eligible for a 30% federal solar tax credit that offers a reduction in your income taxes.

Lastly, you could qualify for a property tax exemption when you mount solar panels on your roof. However, I’m unsure how beneficial that could be since it lacks a grandfather clause which can seriously impact your return on investment.

2. Lower utility bills

Austin Energy’s residential rates follow certain tiers. This means that the more energy you consume, the higher your bill.

Luckily, a solar panel system can potentially offset your grid power consumption.

Additionally, Austin is scheduled to implement a 5% increase to the Power Supply Adjustment (PSA) rate beginning March 24, 2024, so installing solar panels could offer you some protection against inflation.

3. Increase property value

According to the real estate platform Zillow, residences equipped with photovoltaic energy systems sold for 4.1% more on average than ordinary homes. Meanwhile, the National Renewable Energy Laboratory estimates that every dollar saved on electric bills through solar panels increases a home’s values by $20.

As home buyers are becoming more conscious about the environment, the demand for solar panels is higher than it’s ever been. How much exactly they contribute to home values depends on where the property is located and the quality of the solar energy system.

Note, however, that a house with solar panels doesn’t automatically become more expensive. If the system is poorly designed, outdated, inefficient, or isn’t functioning, it will negatively affect the home’s value.

4. Helps you enjoy continuous power

The 2021 Texas Freeze affected more than 4.5 million homes, proving that the state’s electricity supply requires greater oversight. Aside from the inconvenience of not being able to use home appliances, power failures have several notable disadvantages:

• Damage to electronics

• No air conditioning or heating

• Risk of carbon monoxide poisoning (the fuel used to produce alternative energy sources for cooking, cooling, and heating can lead to a hazardous build up of carbon monoxide inside a home)

• Refrigeration loss, leading to food spoilage

It’s no wonder that so many homeowners are looking to equip their homes with solar energy. In fact, a significant percentage of the population has already adopted it, prompting the Frontier Group to rank Austin as one of the cities with the most solar photovoltaic (PV) capacity in 2022.

5. Lower environmental impact

About 40% of the total energy consumed in the United States is used to generate electricity. This has a massive environmental impact. It increases the carbon dioxide and greenhouse gas emissions in the atmosphere along with other pollutants.

By harnessing solar energy, you can lower the rate of climate change. Consider this—an acre of solar panels can reduce more emissions annually than an acre of trees. Research also suggests that most solar panel systems installed in homes can reduce our annual carbon emissions by 3 to 4 tons. That’s like planting over 100 trees a year! 

Like electric vehicles, solar panels do not produce any greenhouse gases, however, electric vehicles still rely on electric grids which may draw power from power plants that produce harmful fumes (e.g. coal-powered plants).

The Photovoltaic Panel Technology

There are four types of PV panels.

1. Monocrystalline solar panels

Sometimes called single-crystal panels, these panels employ a single pure silicon crystal that is divided into several pieces. They are ideal for small spaces and last the longest. Since it takes a lot of silicon to manufacture a monocrystalline cell, this type of panel is very expensive. Tesla’s Solar Roof, uses this type of panel. The Tesla Solar Roof comes with a battery called Powerwall.

2. Polycrystalline solar panels

Polycrystalline panels utilize several silicon crystals. Silicon is melted and poured into square molds, resulting in less waste and a lower price tag. They are larger than monocrystsalline systems, less efficient at energy conversion, and cannot tolerate very high temperatures.

3. Passivated Emitter and Rear Cell (PERC) solar panels

These offer higher efficiency than conventional monocrystalline cells because of the way they process light. They collect more energy while taking up less space and are less expensive than traditional panels.

4. Thin-Film solar panel variations

Thin-film solar panels are not made from crystalline panels and silicon. They’re manufactured from different materials like amorphous silicon, cadmium telluride, and copper indium gallium selenide. The raw materials determine the panels’ efficiency and cost.

FAQs

How much does it cost to install Photovoltaic Panels?

Here’s the all-important question for most families —can you afford it? You’ll be glad to know that the cost of photovoltaic panels has been dropping steadily since 2009 as the demand for renewable energy continues to grow. In the last decade, prices have gone down by over 50% in the residential space, and the downhill trajectory is expected to continue. It’s a good idea to take advantage of solar panels now while there are tax incentives and rebates available, especially since it’s uncertain how long they will be offered.

Now, let’s talk prices. EnergySage reported that 5kW solar panel systems in Austin cost between $10,000 and $14,000. While that may still be several thousand dollars too expensive for many homeowners, funding from SETO can help offset the cost of your initial investment.

There are also rebates and incentives to consider.

Are there any solar energy rebates and incentives for Austin homeowners?

To encourage more people to have solar panels installed, there are certain rebates and incentives in Texas that you can take advantage of:

• The Value of Solar Bill Credits offers a 9.91 cents/kWh credit that can lower your electric bill. For example, if you used $120 worth of electricity in a month and your solar panel system produced energy equal to $114, you’ll only pay $6. Similarly, if it produced $135 worth of energy, the excess will get carried over.

• Austin homeowners can also avail of the Austin Energy Solar Rebate which offers a $2,500 rebate. Customers of Austin Energy may qualify for it by taking an online solar education course and hiring an Austin Energy Participating Contractor to install their systems. You can check out the full list of requirements here.

Lastly, you could qualify for a property tax exemption when you mount solar panels on your roof. However, I’m unsure how beneficial that could be since it lacks a grandfather clause which can seriously impact your return on investment.

What’s the return on investment?

You can calculate your return on investment (ROI) in 2 ways: payback time and the lifespan of your solar panel system.

1. payback time

A typical payback period for a residential solar system is 7 to 10 years.

Of course, this will vary based on factors like the system size, amount of sunlight the home receives, local energy prices, utility rates, incentives on offer, and so on.

Want to get a rough estimate for your home?

Take the costs of the solar panel purchase and installation. Subtract the rebates and incentives from the government and monthly savings on utility and you get your payback period.

For example, suppose you spent $20,000 on photovoltaics and received a $2,500 rebate from Austin Energy. That brings your expenditure down to $17,500. Assuming it reduces your yearly electricity bill by $1,500, it will pay for itself in 11 to 12 years.

2. system lifespan

Solar panels don’t have many moving parts, so a good system will last around 25 to 30 years before its efficiency starts to degrade and produce less energy.

This means that if you’re saving $1,500 a year on energy bills (not considering fluctuations in utility rates) with photovoltaics, you’ll be able to pay back the cost of the energy system and enjoy big savings throughout its lifespan.

Since most residential solar panels remain operational for around 25 years, conservative estimates illustrate that you can save $21,000 if your system lasts for 14 years to $28,500 for a system that lasts 19 years.

When does it make sense to consider PV systems?

As an architect with twenty-plus years of experience designing energy-efficient custom homes, I generally recommend PV systems for all-electric homes. Electric-powered HVAC systems and water heaters are energy hogs and are responsible for the majority of utility bills. So an all-electric home will have higher bills than a home that uses gas for heating and cooking. Using solar energy to offset the high utility cost will reduce your ROI timeline.

Alternatively, if you want to be self-sustaining or you want to live in a net-zero home (a home designed and built to only use the energy it produces), PV systems are a smart choice. 

Does your home meet the requirements for PV systems?

Not all homes are good candidates for a solar panel array. Here are some examples where you might want to think twice:

• Roofs with a steep slope. Your best bet is a south-facing (or west as a second resort) roof with a 10 to 40-degree angle for maximum exposure.

• Rooftops in serious need of repair. Ideally, it should be stable and sturdy enough to last the lifespan of the solar panel system without requiring replacement.

• Rooftops that don’t get enough sun due to tree cover or improper orientation. This limits the amount of energy that the panels harness.

• Roofs with insufficient surface area. The roof is either divided into several small surfaces or not large enough to accommodate the panels.

  If your roof is not a good surface for a solar array, but you have the land area to support one, consider a ground-mount solar system.

What type of roofing material is best for PV systems?

Among the different roofing materials, standing seam metal is the top choice but clay tile and composite shingles can also work.

Do solar panels come with a battery?

When you buy panels, they usually don’t include a battery. So it is a separate purchase.

Architecture by George:

for contemporary, energy-efficient, Austin custom homes

In my humble opinion, generating solar energy is an “active strategy” that is supplemental to good design for an energy-efficient home. When slapped on a typical American house that is an energy hog, it is missing the point.

At Architecture By George, my goal is to design homes that are conscious about energy usage. The main aim is to minimize heat gain (the metric that is pertinent to the hot-humid climate in Austin), so we don’t use as much energy to cool the house down. I employ “passive design strategies” that acknowledge the climate, and build a house that uses less energy. We use measures to lower your energy costs - high-performance systems and materials, such as insulated glass windows and doors, better insulation and ac systems, optimizing the building envelope, minimizing infiltration and thermal bridging, etc.

If you have questions about whether or not photovoltaics are right for your Austin home, lets talk. You can schedule a free call with me, Sharon George.  We can go over some ideas and find the best solutions to help you realize the home of your dreams.

Whether you’re looking to build a new home or renovate an old one, I’m ready to help.

Cheers,

Sharon George.

Cut your energy costs

Every year, January 10th is observed as National Cut Your Energy Cost Day.  It’s a great way to encourage consumers to review their goals, learn about energy-saving options, and keep up with maintenance on the home front. 

Whether you're a concerned consumer who simply wants to lower your own utility bills or a caring conservationist who wants to do your part, here are some ways to conserve energy in your home and improve energy efficiency. 

Of course there are so many ways to go about this, and it really depends on the climate you are in, how old your home is, how much money you want to spend, whether you are thinking about renovating your home or building a new one. 

What contributes to high energy costs?

Before we discuss how to cut your energy costs, let’s talk about what contributes to high electric bills in a home. The big 3 culprits are:

1. Size of the home

All of the factors discussed below are typically amplified by the size of your home.  Although older and smaller inefficient homes can use more energy than newly-built more energy-efficient homes, in general, the bigger the home, the bigger the energy use.  A 4000 sq.ft. home is generally going to use more energy than a 2000 sq.ft. home.  Something to keep in mind before you upgrade to the bigger house.  

2. Heating and Cooling

It’s no surprise that most of the high energy use occurs during the summer and winter months, when temperatures are extreme.  Heavy equipment such as your air conditioner and electric furnace use a lot of power.  Btw, so does the pool equipment, water heater, clothes dryer, and electric oven.  When they run for long periods of time, especially during adverse weather, it can rack up your utility bill.  This is true even with the most efficient equipment, but it’s worse when they’re old or need maintenance and repairs. 

Therefore the best strategy to reduce energy consumption from these systems is to reduce heating and/or cooling loads on the equipment, so that they don’t run for long periods of time and they don’t do as much work.  See specific strategies and actions items below. 

3. Lighting

Artificial lighting is a sneaky high energy usage line item, especially since most homes still use incandescent bulbs.  Perhaps you turn on your lights during the day because your interiors don’t get enough natural light, or maybe you use a lot of lights during the evening and nighttime hours. 

Electronics and phantom load

Phantom load, also known as vampire power, is the energy drained by any number of devices that are not in actual use, but still use electricity while in standby or sleep mode. Think of your electronic equipment such as computers, TVs, gaming consoles, chargers, other gadgets, and appliances like the microwave, coffee maker, etc.  While each might drain only a small amount, they add up. This is certainly not an energy-hog like the top 3.  You personally may not see big $ savings but utility companies like to optimize this because it adds up across their large customer base.  It’s easy enough to use a smart power strip that can control multiple devices instead of unplugging devices individually (because, let’s be real - who’s going to remember to do that everytime?!). 

How to cut your energy costs?

If you are in a hot and humid climate like we are in Austin, Tx, below are a few ways to reduce the energy usage in your home and thereby cut the energy cost.  In a climate like ours, we focus on reducing cooling loads so that the air conditioner is not working at peak capacity all the time. Since our winter climate is pretty mild and lasts for short bursts, heating loads are only a secondary concern.  

1. Simple habits to save $ on utility bills

We can all start with simple habits and small shifts in our lifestyle that will help lower the energy usage in our homes.  You probably already know some of these.

1. Clean or replace your air filters regularly

2. Change to a programmable thermostat  

3. Raise / lower your thermostat by 1 or 2 degrees in the summer and winter respectively

4. Set the fan to “auto” mode on your thermostat

5. Schedule regular maintenance on your air conditioning and heating equipment

6. Reduce your water heater setting to 120 degrees

7. Use less hot water by washing clothes with cold water (better for your clothes too), and taking shorter showers (this one is the hardest for me!).

8. Use the exhaust fan when showering or cooking. Removing the humidity that comes with these activities can help your ac work more efficiently. 

9. Cook / grill outdoors in the summer

10. Turn off lights and fans when you’re not in the room 

2. Home updates to renovate for energy efficiency

If you are not able to do all of the following or you're unsure where your dollars are best spent, it’ll be worth it to perform an energy audit to identify the areas in your house that are energy-hogs so you can work through a priority list. 

1. Upgrade to energy-efficient Energy-Star appliances - refrigerator, induction cooktop, oven, dishwasher, washer and dryer

2. Upgrade to energy-efficient equipment - air conditioner, water heater, pool pump, pool heater

3. Consider an instantaneous water heater rather than a traditional storage tank 

4. If you are putting in a new ac unit, the following will make a big difference

• Sizing the ac unit correctly

• Replacing old ducts with new, metal, insulated ducts, or sealing old leaky ducts 

• Adding a dehumidifier (stand alone or better if it’s tied to your ac) 

5. Replace old windows with new energy-efficient  windows with better glazing. Go for the double-pane windows with low E coating for those south and west facing windows. 

6. Cover those windows that get direct sunlight with solar screens or awnings

7. Install a metal roof or replace the old roof decking with one that has a radiant barrier coating before your next shingle roof repair

8. Add more insulation or better quality of insulation in your attic.  It’s best to seal your attic with foam insulation applied under the roof.  If you’ve got ac units or ducting in the attic, which you most likely do, they will perform better and last longer.  

9. Fix air leaks, weatherstrip and seal all holes, especially gaps around doors and windows 

10. Replace incandescent bulbs with LED bulbs

3. Design strategies to create an energy efficient home

As an architect, I use a variety of design strategies, both passive and active, to set up a home for reduced energy use at the very outset.  If you are lucky enough to be designing and building a new home, then you should be excited to note that using the following design strategies can make the biggest difference in reducing your energy usage.  

The first 5 are the simplest passive design strategies used for hot and humid climate zones.  Getting the passive strategies wrong can mean that you have to employ more active strategies to get the same result. 

1. Consider the size of home carefully.  As I mentioned before, the bigger the home, the more your energy consumption will be. 

2. Orientation of the house and layout of spaces to minimize sun exposure and heat gain, but take advantage of prevailing breezes

3. Thoughtful placement of windows and amount of glazing facing direct sunlight, well shaded windows and doors using porches and shading devices

4. Consider the height of ceilings carefully.  Big spaces with tall ceilings or vaulted ceilings means bigger volumes of air that need to be heated and cooled. 

5. Design for good natural daylighting inside the house to reduce relying on artificial lighting

6. Planning for air conditioning systems, specifications that matter, zoning, thoughtful placement of units and layout of ducts - so it’s not an afterthought

7. Since the roof is a primary source of heat gain, addressing it with a metal roof and a sealed attic

8. A well balanced lighting layout using LED lights

9. Specifying insulation and sealing for an airtight home

10. High performance building envelope: Investing in good materials, construction techniques, and details that result in a high performance home

but, what about solar?

You’ll notice that I’ve not mentioned a solar array as one of the strategies.  I’ve always considered solar to be a supplemental energy source for an energy-efficient home. Yet, curiously, it’s the first thing that most people mention as a priority when I ask them if energy-efficiency is an important consideration for their home project!  If you are interested in solar energy, read my blog post: Should You Get Photovoltaics for Your Austin Home?

Which action item or strategy are you going to implement today?