CEO August Message - 2021

On July 2, 2015, Hill County Electric (HCE) started to receive energy from a 5.3 kW Solar Array that we installed on our campus. Six years later this Solar Array has produced 47,500 kWh or an average of 7,916.6 kWh per year. According to the manufacture this kWh production has avoided 33 tons of CO2 or 5.5 tons of CO2 per year. At HCE’s current net metering retail rate 47,500kWH equates to $4,869 or $812/year.

We installed the panels to help our members and employees understand the pros and cons of making the investment in a residential solar system.

The solar array cost HCE $28,224 to install in 2015. At that time with a 0% interest loan, it was projected to have a 44 year pay back. If you were able to obtain a 30 percent tax credit in 2015, it was projected to be a 33 year pay back of the system. At the time this system was connected to the grid it cost $5.64 per watt of solar capacity installed. Over the past 6 years, it appears the installed cost per watt has dropped approximately 57% from 2015. This would reduce the payback period if HCE continues to net meter at our retail rate.

HCE’s real time data from the panels can be monitored on our website at www.hcelectric. com/service-and-programs/solar-panels. Additional information on the 2015 installed cost and payback period can also be found at the above link.

Solar panels degrade or lose their efficiency each year and typically have a standard panel warranty of 25 years. What happens after 25 years? We can’t make any predications at this point, but experts in the industry believe the panels will still produce power just at a diminished rate.

Solar technology is not perfect. Some pros are solar may reduce your carbon footprint, potential tax incentives and little maintenance. Cons are the high initial cost, solar is weather dependent, the panels are only effective when the sun is shining, the panels are not portable if you move, you are limited by the space you have to install the panels and the manufacturing and delivery systems for the panels leave their own carbon footprint.

If you are interested in solar, make sure you take the time to research all the advantages and disadvantages.