Renewable residential electrical generation is beginning to gain traction, with a growing number of homeowners installing solar panels on their rooftops.
In the United States, the residential solar market installed 738 megawatts of capacity in the third quarter of 2020, a 14% jump compared to the second quarter, according to a recent report from the Solar Energy Industries Association and Wood Mackenzie.
To better understand the solar energy market and its potential for MFA Oil members, the company has installed an array of ground-mounted solar panels at the Business Support Campus in Moberly, Mo.
“We’re exploring several non-traditional avenues like solar,” says Jon Ihler, MFA Oil president and CEO. “We’ve provided energy solutions to our members for more than 90 years, and these types of projects are crucial to us staying ahead of the curve. We’re working hard to ensure the cooperative is built for whatever the future holds.”
Ed Harper, vice president of enterprise risk management, says the solar installation in Moberly is like an experiment.
“It’s giving a first-hand understanding of what it takes to be in this space,” Harper says. “From installation to power generation to storage, we are learning a lot from our solar pilot project.”
The Moberly project has two main objectives: long-term electrical cost savings and evaluating solar energy as a potential strategic growth and diversification option.
The Business Support Campus was chosen as the pilot project site because of its high electrical usage and abundant land available to install the ground-mounted solar panels. Brian Arnold, construction manager, oversaw the installation of the Moberly solar array, which was completed in late December 2020. The solar panels at the Business Support Campus are expected to generate about 140,000 kilowatt-hours of energy per year or the equivalent electric usage of 13 U.S. homes for one year.
The project was eligible for significant rebates, tax credits and accelerated depreciation that will allow the solar pilot to pay for itself in less than nine years. Once it reaches that mark, it will essentially generate free electricity (projected at $8,859 per year at current electrical rates) for the remainder of the equipment’s expected 30-year life span.
“Solar could represent a nice complement to our existing services and a valuable potential benefit to our members,” says Don Smith, director of mergers and acquisitions, who helped spearhead the solar pilot project. “Electricity is not a very efficient heating source, so it’s unlikely to be viewed as a replacement for propane. And it’s got a ton of potential applications and advantages in the agricultural market. Hog farms and poultry producers seem to be a particularly good fit because of their high electrical usage and large roof exposures.”
As the company continues to monitor and evaluate solar technology, Harper says additional trial installations will be considered.