Installing Solar - Is it Worth it?

Josie Green | 03/09/2024

In Costa Rica, a solar energy system for your home might sound like a great idea - after all, we have an abundance of sun! I recently took the decision to install solar panels at my house, and wanted to share with you the pros and cons, as well as the process.  

Here are the reasons you may consider installing a solar power system:

Renewable Energy - more environmentally friendly:

In Costa Rica, the environmental consideration actually holds less weight. Over 98% of the grid power is already generated via renewable energy - mostly from hydropower. The country has 6 dams across the country, which generate almost three-quarters of the nation´s energy. The remainder comes from geothermal, wind and a tiny amount from solar. So if you are on the electiricity grid you are already using mostly renewable energy.  

Cost Savings:

The initial investment for installing solar is significant – it can be around $30,000 depending on your house. The more Air Conditioners, Electric Ovens, Clothes Dryers that you have, the more power you will need and hence the more it is going to cost for the hardware (solar panels, inverters, battery packs). 

However, with the savings on your electricity bill, you are likely looking at a pay back of less than ten years on your investment. Electricity is not cheap in Costa Rica and has just gone up by 8%.

You can choose between a grid-tied system or a completely off-grid system. With the grid-tied system, the ICE has a program that allows you to ´sell´ your extra energy back to the grid. When you ´sell´ power back to the grid, you won´t receive any cash but you will receive a credit against any power that you have used from the grid. 

Reliability or Lack of Grid Service in Your Area:

The main reason that I decided to install solar at my house relates to my specific location. Whilst I already have an electric meter with the ICE, we do have power outages on a regular basis - particularly during the rainy season. My house is located on a hill that is slightly out of town, surrounded by forest and with only four neighbors on the whole hill. Due to the thick forest, a windy or rainy day can cause problems for the electricity cables. And since we are so few people, we are not always top priority for the ICE repair unit! Sometimes we are without power for significant periods, and some weeks it feels like there is an outage every day. My decision was therefore based on the desire to have a constant and stable source of power.  In other areas of town, where the electricity grid is more reliable, this consideration is not so important.

If you are located in an area where the grid has not yet arrived, you may find that installing solar is cheaper than paying to bring the electricity poles and cables all the way to your property. It is definitely worth getting a quote to see if this is indeed the case. 

 

Process for Installing Solar:

There are lots of companies in Costa Rica that you could chose from. However, it is very important to make sure you use a company that has been recommended or referred by someone who has used them in the past. The first step is to have the company representative come to assess your house, your energy usage and the possible locations for the panels and the inverter/battery system. You provide to the company a copy of your monthly electricity bill, so that they can then assess what your needs are. Once this assessment is made they provide a quote. 

Upon accepting the quote you will need to make a downpayment and the hardware is then ordered from the US. It takes about one month for the equipment to be shipped in to Costa Rica. Once the equipment has arrived, installation work starts. 

Things to consider:

  • You will need a non-shaded roof space which is free and clear of any overhanging trees. The roof will preferably be south-facing in order to maximize the amount of sun you get. In my case I installed a new structure at some distance from my house for the panels - as my house has too much shade and with the proximity of the trees I was concerned about falling branches causing damage to the panels.  

 

  • You will need a covered, well-ventilated location for the solar system (ie. the inverter and the batteries). It can be bulky depending on how many batteries your house requires. So you will need to consider where you can fit the system - maybe in the garage or bodega. 

 

  • If you plan to expand your house or add on extra units in the future, you can also extend your solar system by adding panels and batteries. You just have to make sure to factor in the extra roof space and the extra space you might need in your garage or bodega for the additional equipement.  

 

  • Make sure the products that the solar company are providing come with warranties - the panels, inverter and battery that I purchased came with a 10-year warranty. The company also provides one year of free solar system maintenance. They do advise that you have your system inspected at least once a year to make sure it is operating at its optimal efficiency. 

 

 

 

 


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