Are Solar Panels Worth it? Why You Should Consider Solar Panels

I have been a resident of the Coopertown neighborhood in Bryn Mawr, Pennsylvania, for my entire life. I have come to know the neighborhood very well. Over the past five years, I have noticed that several of my neighbors have installed Photovoltaic solar panels on their homes. I have often wondered if the solar panels are worth installing. As a resident of Bryn Mawr, and ultimately of the United States, it is important to understand where our electricity comes from. As a country, we should consider using “cleaner” energy sources. The transition to cleaner energy sources must begin at the local level. In this letter, I will examine where our electricity comes from, discuss Pennsylvania’s The Alternative Energy Portfolio Standards Act of 2004 (AEPS), and the incentives of the Philadelphia Electric Company (PECO) to install Photovoltaic solar panels. Finally, I will discuss the expected cost of installing solar panels in Pennsylvania.

Pennsylvania has a long history of using fossil fuels, particularly coal and oil. When we burn fossil fuels, we release harmful compounds into the atmosphere such as sulfur dioxide and carbon dioxide. These compounds are detrimental both to human health and to the environment. To address these concerns, Pennsylvania has implemented some regulations regarding CO2 emissions and cleaner energy sources. The Alternative Energy Portfolio Standards Act of 2004, or the AEPS, requires a specific percentage of the state’s electricity that is sold to customers be generated through alternative energy sources. Electric distribution companies and EGSs (environmental, social, and government energy standards) accomplish this by using Alternative Energy Credits (AECs). AECs are created when a qualified alternative energy facility produces 1,000 kWh of electricity. The AEC is then sold or traded separately from the power company. This allows EDCs and EGSs to acquire AECs and meet the requirement.

This is an effective way to reduce carbon emissions and promote the usage of alternative energy sources. However, it is clear from Pennsylvania’s energy statistics that although there has been some progress, there is room for improvement. According to the U.S. Energy Information Administration, in 2010, coal provided 48% of the state’s electricity. By 2020, the use of coal declined to only be 10% of the state’s net energy generation. However, it was replaced by another fossil fuel, natural gas. In 2021, natural gas fired power plants provided 53% of Pennsylvania’s electricity. Coal fire power plants provided 12% of the state’s electricity The remaining net generation percentages are provided by renewable energy sources. Pennsylvania’s four nuclear power plants provided 31% of the state’s electricity in 2021. The other renewable energy sources are mostly wind energy, hydropower, and biomass.

Local institutions have demonstrated that a switch to renewable energy sources is possible. For example, Bryn Mawr College in Bryn Mawr, Pennsylvania, claims to purchase 100% of its electricity from wind power. The college also has a solar panel array and a small wind turbine. Bryn Mawr College installed the solar panels in 2012 and claims that they have removed the same amount of carbon dioxide from the atmosphere as 70 mature trees would.

Many people are concerned about the high price of solar panels, however there are many appealing monetary incentives for installing solar panels on your home. States with high usage rates of solar panels and a high percentage of sunny days per year will typically have incentive programs built in place. According to PECO, Pennsylvania offers solar renewable energy credits (SRECs), or alternative energy credits, which help with the cost of solar panels. SRECs are created when 1,000 kWh of electricity is produced by an alternative energy source, such as solar panels. To put this into perspective, an average American home generates 30 kWh a day, 900 kWh per month, or 10,8000 kWh per year. The federal government offers tax incentives for installing alternative energy sources. A household may claim a federal income tax credit for 26 % of expenditures on a residential solar system.

Solar panel systems themselves have become far less expensive in recent years. According to Forbes magazine the average cost of residential solar panels in PA is $11,411. The estimated yearly savings with full solar electricity is $1,610 and it takes an average of 6.96 to “break even” on the investment. If you would like to learn, more about installing solar panels on your home, you can consult the PECO solar calculator, https://secure.peco.com/mygene...

Sincerely,

Amy White