Tuesday, May 7, 2013

Hawaii Cost of Living and Solar Panel Maintenance

Easy to clean on the ground panel
In Hawaii, a solar energy system can reduce the cost of a Kilo Watt Hour from 44 cents to about  6 cents.  Although solar panels are widely advertised as a way to cut the cost of the monthly electric bill, there is rarely anything said about the need and cost of maintaining the system and keeping the solar panels clean.

Industry reports say lack of solar panel cleanings can cause a loss of up to 25% of the power efficiency.  A typical residential installation in Hawaii costs $25,000 to $30,000, so a 15% to 25% drop in power translates to a loss of $3,750 to $6,250. This is in addition to power loss on cloudy and heavy vog days.  Panels collect dust, leaves, and other debris and in Hawaii the vog can leave a thick layer of grey volcanic ash. Moisture, bird droppings, and bugs covering the panel are also a problem.  Regular cleaning of the surface is the only way to maintain the power generated to maximize the investment and keep the electric bill low.

When solar panels are installed, they are usually positioned where they can perform most efficiently and are not in the shadow of another building, trees, or other obstructions.  But, their position on a roof may make it difficult and dangerous to clean and maintain. We used a solar power system at a cabin we owned for about ten years. The solar panel was installed in a rack outside about 5 feet high which made it easy to inspect and clean.  Since it was our only source of power we could tell it needed to be cleaned when our power suddenly dimmed.  Solar energy systems installed in Hawaii that feed power directly into an electric grid provide no “reminder” to clean the panels when power output lowers.

You can clean the panels yourself which takes time and effort and if the panels are on the roof, could be dangerous. The job requires an investment in tools and cleaning supplies.  Cleaning solutions are needed that do the job without harming the roof or garden below.  The water used for rinsing cannot be “hard” or it will leave a film of minerals. Telescopic poles with a water feeding system are available for about $1000 and up depending upon the pitch and height of the roof.   Other options are  to use a professional cleaning service or installing an automated cleaning system, but they add to the yearly cost of the system.

In our case, we have been able to reduce our monthly electric bill to about $100 by using LED lights, LED TV, and LED computers, turning down the water heater, never running the AC, and even minimizing our use of power when cooking.  When calculating the benefit of reducing a monthly electric bill with a solar power system, the hidden expense of system maintenance, solar panel cleaning, additional home insurance, and replacement cost for failing or corroded parts should be added to the cost. 

Monday, April 29, 2013

Hawaii Tourism

2013 Visitor Stats from Hawaii Tourist Authority
Recently, the Hawaii Tourism Authority released some good news about the increase in visitors to Hawaii in March.  The 769,047 tourists that visited the islands was an increase of 7.6% from last March.  The majority of the visitors came from the Western US states but the number of visitors from the rest of the US, Canada, Japan, and cruise ships were all up.  There was also an increase in visitors from Oceania, China, Korea, UK, France, Germany, Switzerland, and Latin America.   Our take is that a lot of people from everywhere came to Hawaii, resulting in over 7% more tourists during the first three months of 2013 compared to the same time in 2012.

When Oahu has an increase in visitors, it does not always mean that more visitors show up on Hawaii Island.  But the past few months we really noticed an increase in the number of visitors at the two hotels nearby and in vacation rentals inside our condo complex.  We have met couples and groups of people from all over the world at the pool, on the beach, and in the grocery stores.

Many of the visitors we talked to have never been to Hawaii before. The increased violence and crime in Southern Europe, the Caribbean islands, and Mexico has forced them to change the location of their yearly tropical vacation.  One couple’s biggest surprise was that Hawaii was no more expensive than an upscale resort in Mexico. Many people think Hawaii is really expensive and Mexico is really cheap, but the 5-star resorts in Mexico are very pricey.   They thought the food was better in Hawaii and they were not having the stomach problems they frequently get in Mexico. They were also happy that there were no troops patrolling their hotel with machine guns and were not scared to go out at night.

Many US Universities had their Spring breaks in March instead of April because Easter was early this year. We noticed large groups of college age visitors rented condos during March, we assume for Spring break.   The strongly worded warnings from the State Department about the violence in Mexico and the Caribbean may be partly the reason for the large number of young people on the island.   Though they loved the sun and beach, they looked bored with the lack of night life on Hawaii Island.

We hope the new visitors to the island will not only return, but tell their friends about their great Hawaii vacation.

Monday, April 22, 2013

High value house design in Hawaii


We recently calculated that running an air conditioner every day to keep a small 2 bedroom home cool that was not designed for Hawaii’s tropical climate would cost between $450 to $1000 a month for electricity.   That extra monthly expense is the equivalent to an additional $100,000 to $225,000 that could have been used toward a mortgage at 3.5% interest. 

If this monthly expense for electricity was income generated from a savings account paying 0.2% interest (sadly a common interest rate these days) it would take a savings account of $2.7 million to $6 million just to generate the $5,400 to $12,000 annual cost for electricity.

Surprisingly, homes in Hawaii designed for the tropics to minimize the cost of electricity and homes designed for cold climates that are solar ovens requiring continuous air conditioning are often priced the same.

Although the financial benefits are enormous when a home does not require air conditioning, the enjoyment and health benefits of having fresh, tropical breezes blowing through your home is yet another huge value in a house designed for Hawaii.