Skip to content

Solar power systems offer local businesses, farmers cost advantages

Ron Walter writes about the potential of solar energy
BizWorld_withRonWalter
Bizworld by Ron Walter

The arrival of solar power installer Sycamore Energy to Moose Jaw brings 21st Century energy technology to the city.

Make no mistake, the use of energy from fossil fuels will be around for a long time but alternatives like solar will become increasingly common.

Harnessing free energy from the sun to create electricity has always made sense, but economics didn’t warrant the investment.

Solar power requires a large upfront investment with no costs after that until the panels wear out in 25 to 30 years.

Twelve years ago, solar energy cost 18.5 cents a kilowatt hour to produce, compared with current SaskPower rates of 10 cents for residential customers and 13.5 cents for rural customers.

Sycamore Energy says it can produce solar power at eight cents a kilowatt hour.

Various factors have allowed solar to be more competitive since 2007.

Foremost is technology increasing efficiency of solar panels, capturing up to 30 per cent of the sun’s energy, up from between 15 per cent and 17 per cent.

A decade ago the rush into manufacturing solar panels pushed up the price of the special silica (sand) placed between the layers of glass in the panels. The sand shortage has been resolved.

While SaskPower allowed solar use 12 years ago, policies have changed so credits for solar power in excess of current needs can be applied to future use – allowing solar systems to cut the power bill from SaskPower to zero.

Lastly, SaskPower offers rebates of up to 20 per cent of solar system cost. Another program allows consumers to build one megawatt systems to sell power to the utility.

During a presentation to the local Chamber of Commerce, Sycamore CEO Alex Stuart mentioned the instance of a farmer who objected to the location of solar panels in a cultivated field that grossed between $350 and $600 an acre from crops.

The objections melted way when he was informed solar power returns $24,000 an acre.

A 12-year lease on solar systems matches current power bills to the lease payments. System ownership and completely free power happens for the next 13 years of warranty on panel life.

Solar power has other benefits: avoiding future power rate increases which have amounted to 27 per cent over the last five years; avoiding the dreaded carbon tax; and supplying power when major grid systems go down.

Solar is becoming more common in the world, especially in Western Europe. California recently mandated solar power in all new buildings.

Electricity accounts for about two per cent of farm expenses according to a 2016 study by the United States Department of Agriculture. Electricity can make up six per cent of small business costs.

Reducing that bill to zero with solar energy will improve profitability and competitiveness.

All those huge farm sheds and workshops in rural Saskatchewan present ready-made opportunities for cost-cutting solar systems.

Ron Walter can be reached at ronjoy@sasktel.net

push icon
Be the first to read breaking stories. Enable push notifications on your device. Disable anytime.
No thanks