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Solar Home Make-over
February 13, 2007
(Ed. Note:
While this article mentions Florida, most of this information
can apply to other locations as well)
Florida has a virtually limitless and nearly untapped natural
resource at its fingertips, and on its rooftops. Here Dale
Gulden, CEO of Solar Direct, gives homeowners an overview
of ways to tap into solar power to reduce utility bills as
well as have an environmentally friendly home with "Tips
to Doing a Solar Home Make-Over".
1.
Q. What is a Solar Home Make-Over?
A. Simply stated, a solar home make-over harnesses the power
of the sun through the use of solar panels to provide your
home with an efficient, clean and renewable energy source.
This energy is then converted into a form of heat, such as
solar water heating, or as electricity, such as solar photovoltaic,
making your home energy independent. Especially for Floridians,
using solar energy for your home has particular value during
the hurricane season, allowing you to avoid storm-related
power outages. Stories are in the news daily regarding homes
being built or retrofitted with solar systems. ABC's "Extreme
Makeover: Home Edition" presented James Dolan of St.
Petersburg, Florida, with a new home fit with a solar system.
2.
Q. Why should I consider a Solar Home Make-over?
A. First of all, you will become energy independent. This
means that you will have your own supply of energy allowing
you to avoid any future sharp increases in fossil fuel-based
electricity. Second, there is also an increasing consensus
that "green" energy-efficient upgrades such as solar
water heating, solar pool heating and solar photovoltaic will
add resale value to your home. According to the Green Building
Appraisal Journal, for every $1 in annual energy savings,
$20.73 is added to a homeís resale value. In fact,
many mortgage finance companies such as Fannie Mae recognize
this idea with "Green Mortgages", where the financing
of energy-efficient appliances and solar devices are rolled
into the total mortgage. By spending less money on utilities,
mortgage companies believe that homeowners will have greater
discretionary income to spend on upgrading other aspects of
their home.
Finally, there are immense environmental benefits to consider.
Did you know that the energy required by a typical water heater
emits 2 TONS of carbon dioxide per year? A single passenger
car driven 10,000 miles per year contributes approximately
1 ton of carbon dioxide per year. Contrary to popular belief,
car emissions do not produce the highest amount of carbon
dioxide per year. According to the Earth Policy Institute,
electricity generation is by far the largest share at 35%.
This is due to the fact that heating and cooling buildings
constitutes about 14% of all energy use of the building. More
reliance on solar energy causes a reduced demand for fossil
fuels and will improve the environment by reducing air and
water pollution as well as the heat-trapping gases that cause
global warming.
3. Q. What can I do to "solarize" my home and
what are the primary benefits?
A. There are three main ways to "solarize" your
home:
First of all, you can invest in solar electricity, also known
as photovoltaic (PV). Because the media has written a lot
about this subject it is the most well-known, but it is also
the most expensive. A 3-4 KW [Kilowatt] system for a 3000
square foot home can cost from $24,000 to $40,000. While payback
doesnít occur for some 10 years or more, this option
is becoming more appealing to Florida homeowners with $400
- $900 per month utility bills. Electric bills can be reduced
immediately by 20 to 90%. Plus solar can be used as a backup
during power outages, a big plus during hurricanes and storms.
Solar Water Heating (SWH) is a second option. Hot water heating
accounts for 25 to 30% of an average U.S. householdís
energy usage. Given the upfront costs for a system ($3,000-$5,000),
a SWH on a new house provided as part of "Green Mortgage"
or conventional mortgage, allows for immediate pay-back. (The
savings in monthly utility bills exceed the corresponding
increase in monthly mortgage payments.) Even as a retrofit,
a SWH results in an average 2 to 4 year return on investment.
Installing a solar domestic hot water system can reduce your
hot water heating bill by 75 to 95%, potentially saving you
hundreds of dollars a year. Using sunshine to heat your water
is free, environmentally friendly and cost competitive.
Finally, you can install a solar pool heating system. Solar
pool heaters start at less than $2000 and go up to $6,000,
depending on the size of the pool. The cost of heating a pool
with conventional fuels ranges from about $500 per season
to more than $2000 per year. Most pool owners with electric,
fuel oil or propane heaters no longer use them because of
high cost. Here in Florida Solar Pool Heating offers the tremendous
additional value of doubling your effective pool use season
all for zero operating costs.
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4.
Q. Which solar upgrade is best to reap maximum energy savings?
A. Solar Facts box above compares the efficiencies and costs
for photovoltaic solar electricity (PV) versus solar water
heating (SWH) versus solar pool heating (SPH). Given the same
size solar collector, SPH turns out to be the most efficient
in converting the sunís energy into useable energy,
with an average output of 300 watt-hours per square foot per
day; household solar hot water heating produces 200 to 250,
whereas PV's output is only 100. Overall SPH is the best bargain,
with a very low cost per square foot of panels, and the shortest
payback period of one to three years. The PV systems, although
attractive for other reasons, have the highest cost per square
foot, and longest payback period. A very important consideration
when designing a solar electric system is to reduce consumption
through other methods in order to reduce the amount of electric
required by the system. Areas such as usage habits, insulation,
air conditioning, water heating, lighting and more should
be examined for solutions to reduce power consumption.
5. Q. Which groups receive the most benefit from adopting
solar energy sources?
A. Everybody benefits from the economic savings drawn from
solar energy sources - homeowners and businesses. Homeowners
can benefit from all three technologies. Solar Pool Heaters
are the most common in Florida ñ eliminating the high
cost of fossil fuel heaters, and extending the season almost
year-round. Solar Water Heaters are also very attractive,
as the annual savings for a family of four can average $650
ñ yielding an average tax free return on investment
(ROI) of 17-35%. Solar Electric systems are becoming more
popular due to the generation of free electricity, plus the
added security of power during outages. The immediate results
from the installation of a photovoltaic (PV) solar system
are a dramatic 20-80% decrease in electricity bills. One example
translates into an actual monetary savings of $6,480 per year
for a 3000 square foot home with a monthly utility bill of
$900. In 10 years, that savings would be $64,800; 20 years
it would be $129,600. These systems avoid price hikes in electricity,
especially attractive to people living on a fixed income such
as retirees, who would benefit greatly from a solar energy
systemís economic savings, Solar energy is very low
maintenance, with no operating costs, thus giving you one
less monthly line expense to preserve discretionary spending.
Home Owner Associations (HOAs) also would find the economics
particularly appealing. Solar water and pool heating adds
property value and decreases overall utility bills on common
areas supported by membership fees.
Businesses benefit mostly when using Solar Water Heaters to
offset the high cost of process water heating. Many industries
use large volumes of heated water in various processes, and
with the cost of gas increasing 50 to 150% over the last several
years, these costs can be greatly reduced using solar energy.
Solar Electricity is also a viable alternative in many applications,
especially where local utility power is not available, or
costly to bring on-site.
6. Q. There are many states that have rebates and tax incentives
that can reduce the cost of home solar equipment. What kind
of state or utility solar incentives exist in Florida?
A. A Renewable Portfolio Standard (RPS) is a policy that requires
those who sell electricity to have a certain percentage of
ìrenewableî power (i.e. wind, solar, biomass,
geothermal) in their mix. While there are 19 U.S. states that
support a Renewable Portfolio Standard (RPS), Florida does
not. This means our state utilities have no incentives to
convert to renewable energy sources. Consumers should urge
their state representatives to enact more incentives to use
the most abundant resource Florida has, the sun. The only
present incentive for all state residents is the exemption
from Florida's sales and use tax on solar energy systems.
In addition, the Jacksonville Electric Authority (JEA) launched
the Solar Incentive Program to provide financial incentives
to residential and commercial customers who install new and
retrofit solar hot water heaters on homes and businesses.
There is a maximum award of $25,000 for each new installation
and up to 30% of total cost (up to $500) to restore an existing
solar water heating system to working order. Lakeland Electric
pioneered a most innovative program, offering solar water
heater systems free to residents who only pay for the 20-30%
of electricity needed to heat their home water.
More important than state tax incentives is a Federal Energy
Tax Incentive Bill that is currently awaiting President Bushís
signature. This bill increases the existing 10% tax credit
for commercial solar installations to 30% for two years with
no cap on amount of credit. This credit applies to all property
placed in service after December 31, 2005 and before January
1, 2008. After that point, the credit reverts to the permanent
10% credit. It also creates a new 30% tax credit for residential
solar installations for two years that is capped at $2000.
It can be applied to all property placed in service after
December 31, 2005 and before January 1, 2008. Finally, all
solar technologies, including photovoltaic electricity (PV),
solar water heating, CSP, and solar hybrid lighting, are eligible
to claim the credit.
7. Q. How do I know if my home can support solar upgrades?
A. Generally, unless densely covered by trees, most homes
can use a solar solution. While the general rule is that "South
facing" roofs work best, (for obvious sun exposure),
you can also use roofs facing East, West and even flat roofs.
Where limited or steep roofing presents an issue, many find
ground-based systems workable, providing there is enough property
to support the panels. Undoubtedly, the best time to consider
installation is while the house is still in design phase to
maximize the sun exposure and roof placement. However, systems
can generally be retrofitted to most homes.
8. Q. Can I install a Solar System myself?
A. Many Solar Pool Heaters are available as do-it-yourself
kits with easy to follow instructions and readily available
customer service support. At Solar Direct, over 50% of our
solar pool heaters are installed by homeowners. Solar Water
Heaters can also be self installed by an experienced handyman,
but are often best installed by a licensed solar contractor
due to plumbing intricacies. Solar Electric PV systems are
more complex, and generally require a licensed contractor
- do-it-yourselfers will often install some part of the system,
and then hire a Solar or Electrical Contractor to complete
the wiring and electronic components.
9. Q. Will solar equipment obscure and devalue the property
value of my home?
A. Solar has increasingly come to be aesthetically acceptable
and even has an "Eco-Chic" value. Traditional solar
panels are not the only variety currently available. There
are low relief profiles that mold with your roof contour as
well as solar tiles and even solar patios in the market. Property
values of "green homes" actually have a 5% premium
value increase according to Environmental Building News (EBN).
10. Q. What does a homeowner want to look for in a solar system?
A. There are many types of solar water heaters available,
but for a highly reliable, care-free system, a passive-type
system known as Integral Collector Storage (ICS) should be
given strong consideration. These systems contain the water
storage and collector all in one simple unit. The system has
no moving parts for near-zero maintenance. ICS systems are
also low profile, aesthetically pleasing and many of these
systems have a 30-year life. Active-type systems are also
popular, but have higher maintenance costs due to mechanical
parts, so replacement costs can lower the savings benefit.
Solar Pool Heaters have very similar efficiencies, so important
considerations would include the quality, warranty and price.
SPH panels are typically made from plastic, and like roofing
shingles, eventually wear out in the brutal Florida sunshine
ñ so look for heavy grade panels with a proven track
record for extended life expectancy.
Solar Electric PV systems are relatively new in the market,
so they all tend to be state of the art. Look for features
that give added value like monitoring readouts to let you
know how much you are saving, or battery backup options for
power during outages.
11. Q. How do I know if the solar equipment is reliable?
What kind of warranties can I get?
A. Florida requires that all solar equipment be certified
by FSEC (Florida Solar Energy Center). FSEC tests all equipment
and publishes output and efficiency ratings. The Florida Solar
Energy Industry Association (FlaSEIA) publishes a member directory,
including trained and certified installers. To further insure
that you are getting reliable equipment, FlaSEIA has created
a program for homebuilders called SunBuilt. The SunBuilt Program
is an incentive-based solar program, designed to give builders
and potential clients the opportunity to interact with solar
water heating technologies. In order for a SunBuilt provider
to receive an incentive, they must follow strict guidelines
to install reliable equipment. In addition, most solar equipment
has an exceptional 10 year warranty!
12. Q. How am I contributing to the environment by using
solar water heating and solar pool heating?
A. Solar water heaters do not pollute. By investing in one,
you will be avoiding carbon dioxide, nitrogen oxides, sulfur
dioxide, and the other air pollution and wastes created when
your utility generates power or you burn fuel to heat your
household water. For example, by installing a solar water
heater, a family of four, who currently use an electric water
heater and consume an average of 80 gallons of hot water per
day, will prevent 3,400 pounds of greenhouse gas emissions
each year. This represents a reduction in household greenhouse
gas emissions of 20% or more for a typical household. Considering
the fact that monthly solar savings would exceed the impact
of its cost on your mortgage payment; this is something no
new Florida home should be without.
13. Q. Can my utility meter "spin backwards"
using solar power? Will my utility give me credit for my solar-based
energy usage?
A. Net Metering is a method of crediting customers for electricity
that they generate on site in excess of their own electricity
consumption. If such customers generate more than they use
in a billing period, their electric meter turns backwards
to indicate their net excess generation. In some areas of
Florida, customers are indeed selling back and getting credit
for excess electricity.
14. Q. Is using solar energy for electricity and hot water
heating a new concept?
A. No, it is not a new concept. Although the use and acceptance
of solar energy in this way has gone through many cycles of
popularity as new fossil fuels were discovered, solar water
heating has been a common use of solar energy for more than
100 years. Today, more than one million buildings in our country
alone use state-of-the-art solar equipment to heat water,
and over three hundred thousand families use solar for heatings
of their swimming pool.
15. Q. Donít solar panels require a lot of maintainence?
A. Your solar-electric system requires little to no maintenance.
Photovoltaics have no moving parts and the system needs as
much maintenance as your home's main electrical panel. In
fact, normal weather such as rain and wind clean the panels
sufficiently to maintain efficiency. Solar water heating collectors
such as the Integral Collector Storage (ICS) system has been
known to perform flawlessly for 20-30 years without maintenance.
Solar pool system collectors of the heavy duty variety can
last 15-20 years or more and only require an occasional simple
check-up to be sure that they are securely fastened. Last
seasonís hurricanes had little affect on well installed
solar systems.
16. Q. Where can I find more information on solar upgrades
to my home?
A.You can go to www.SolarDirect.com
for more information on a wide variety of solar upgrades for
your home. To view approved systems visit the Florida
Solar Energy Center . Solar Direct provides installations
state-wide in Florida; find a detailed list of other contractors
at the Florida Solar Industries
Association website.
Article courtesy of Dale Gulden, CEO Solar Direct,
Bradenton, Florida, ©Solar Direct
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