5 Steps to a Solar Home
It's a lot easier and less expensive to take your home solar than most people think. Thanks to generous financial incentives from the government and innovative alternatives to purchasing a system, homeowners are discovering there aren't really any risks remaining to going solar.
Like many things, home solar was first adopted by people who were concerned about their environmental and energy footprints. Now, others are following suit, primarily because it makes financial sense. Our electricity rates are going up: the price we pay for residential electricity rose on average 26.8 percent from 2002-2007 in the U.S. With home solar, you essentially lock in a low rate for all the electricity you'll consume in the future--for instance, think about how much you'd save if you could lock in your gasoline price at $1 per gallon for the next twenty years. Over time, going solar today will save you serious cash.
Here are five easy steps to get you started.
1. Figure out your home's solar potential
- If your electricity bill is higher than $100 on average per month, solar can save you money--depending on which purchasing option you choose and your prevailing utility rates, you could see savings of up to 60% within the first month of going solar.
- You'll need enough sunlight on your roof. Geography, roof orientation, and shading are all factors an expert can assess for you.
2. Research your options
There are a lot of resources on the web. States that offer incentives frequently have websites with good information, and many solar companies have good general information about going solar on their sites as well.
- Most people choose to work with a professional solar company to design and install a home solar system. You can get a good feel for a solar company from its website.
3. Decide what's best for your home and finances
Questions to ask include:
Q: Should I purchase a system outright or pay as I go? There are alternatives to buying a system all at once that dramatically reduce the upfront costs of home solar and still provide the long-term benefits, including power purchase agreement (PPA) or leasing options.
Q: What's the best return on my investment? Make sure to consider how your home solar solution will reduce your energy costs over time. Also, investigate how having home solar will factor in if you sell your house.
Q: Are maintenance and repairs included? Some companies take care of your system for you, others don't.
Q: Does my solar company have happy customers? Talk to everyone you can before choosing a solar solution and installer. Ask to speak with recent customers to make sure they're happy with their solar experience.
Q: How will the panels look on my house? Not all home solar installations are created equal when it comes to aesthetics. Choose the product you're most comfortable with.
4. Install your system
- A typical home solar installation will take only four to six days. There will be some additional delays before your system can be turned on after it's installed: your local utility company will need to come out to approve the system and properly connect it to the utility grid.
5. Enjoy your savings
- There's nothing quite like seeing your utility meter spin backwards because of solar. In order to make sure your system delivers all the electricity (and resulting savings) you expect, however, you need to monitor it. Some companies will do this for you, and with others you'll have to buy a separate monitoring solution.
I think the following statement from one of my company's customers sums it up:
"I can't complain. My utility bill dropped from $275 to $5.25 the first month I went solar."
--Harry, Fresno, California.
Source: Huffington Post
Written by Lynn Jurich, president and co-founder of SunRun.
Like many things, home solar was first adopted by people who were concerned about their environmental and energy footprints. Now, others are following suit, primarily because it makes financial sense. Our electricity rates are going up: the price we pay for residential electricity rose on average 26.8 percent from 2002-2007 in the U.S. With home solar, you essentially lock in a low rate for all the electricity you'll consume in the future--for instance, think about how much you'd save if you could lock in your gasoline price at $1 per gallon for the next twenty years. Over time, going solar today will save you serious cash.
Here are five easy steps to get you started.
1. Figure out your home's solar potential
- If your electricity bill is higher than $100 on average per month, solar can save you money--depending on which purchasing option you choose and your prevailing utility rates, you could see savings of up to 60% within the first month of going solar.
- You'll need enough sunlight on your roof. Geography, roof orientation, and shading are all factors an expert can assess for you.
2. Research your options
There are a lot of resources on the web. States that offer incentives frequently have websites with good information, and many solar companies have good general information about going solar on their sites as well.
- Most people choose to work with a professional solar company to design and install a home solar system. You can get a good feel for a solar company from its website.
3. Decide what's best for your home and finances
Questions to ask include:
Q: Should I purchase a system outright or pay as I go? There are alternatives to buying a system all at once that dramatically reduce the upfront costs of home solar and still provide the long-term benefits, including power purchase agreement (PPA) or leasing options.
Q: What's the best return on my investment? Make sure to consider how your home solar solution will reduce your energy costs over time. Also, investigate how having home solar will factor in if you sell your house.
Q: Are maintenance and repairs included? Some companies take care of your system for you, others don't.
Q: Does my solar company have happy customers? Talk to everyone you can before choosing a solar solution and installer. Ask to speak with recent customers to make sure they're happy with their solar experience.
Q: How will the panels look on my house? Not all home solar installations are created equal when it comes to aesthetics. Choose the product you're most comfortable with.
4. Install your system
- A typical home solar installation will take only four to six days. There will be some additional delays before your system can be turned on after it's installed: your local utility company will need to come out to approve the system and properly connect it to the utility grid.
5. Enjoy your savings
- There's nothing quite like seeing your utility meter spin backwards because of solar. In order to make sure your system delivers all the electricity (and resulting savings) you expect, however, you need to monitor it. Some companies will do this for you, and with others you'll have to buy a separate monitoring solution.
I think the following statement from one of my company's customers sums it up:
"I can't complain. My utility bill dropped from $275 to $5.25 the first month I went solar."
--Harry, Fresno, California.
Source: Huffington Post
Written by Lynn Jurich, president and co-founder of SunRun.
Comments (2)
Congress Passes the Most Powerful Solar Legislation in History
| solar, pv, legislation
Homeowners battling against soaring energy prices and a struggling economy have gained a powerful new tool to help harness free, renewable energy from the sun, the wind and other sustainable resources.
The U.S. House and Senate passed historic legislation that will massively increase the use of solar energy all across the America. Renewable energy provisions in H.R.1424 include an eight year extension of the 30% solar tax credit and removal of the monetary cap for residential solar electric installations. The legislation became active on January 1, 2009.
Click here to find frequently asked questions, the full text of H.R.1424. or see bill summary.
The solar provisions in this bipartisan legislation will help position the U.S. as a global leader in the booming solar marketplace, generating thousands of green-collar jobs, promoting energy independence, and helping to tackle climate change.
"Renewable energy and energy efficiency are our economic drivers,” said Brad Collins, Executive Director of the nonprofit American Solar Energy Society. “I applaud members of Congress for coming together to extend the renewable energy tax credits that will strengthen the new energy economy and generate green jobs at a time when they’re needed most.”
Key provisions of this legislation will:
* Extend the investment tax credit for residential and commercial solar installations for eight years (it was previously set to expire at the end of 2008)
* End the $2000 cap on the investment tax credit for residential solar electric installations placed into service after December 31, 2008
* Allows filers of the alternative minimum tax to claim solar investment tax credits
* Allows public utilities to claim the solar investment tax credits
* Authorize $800 million in new clean renewable energy bonds and creates a new category of tax credit bonds called Qualified Energy Conservation Bonds to finance state and local initiatives to reduce carbon emissions
* Extends deductions for energy efficient commercial buildings
* Establishing a new tax credit for purchasers of plug-in electric-drive vehicles
* Extends research and development tax credits
The U.S. House and Senate passed historic legislation that will massively increase the use of solar energy all across the America. Renewable energy provisions in H.R.1424 include an eight year extension of the 30% solar tax credit and removal of the monetary cap for residential solar electric installations. The legislation became active on January 1, 2009.
Click here to find frequently asked questions, the full text of H.R.1424. or see bill summary.
The solar provisions in this bipartisan legislation will help position the U.S. as a global leader in the booming solar marketplace, generating thousands of green-collar jobs, promoting energy independence, and helping to tackle climate change.
"Renewable energy and energy efficiency are our economic drivers,” said Brad Collins, Executive Director of the nonprofit American Solar Energy Society. “I applaud members of Congress for coming together to extend the renewable energy tax credits that will strengthen the new energy economy and generate green jobs at a time when they’re needed most.”
Key provisions of this legislation will:
* Extend the investment tax credit for residential and commercial solar installations for eight years (it was previously set to expire at the end of 2008)
* End the $2000 cap on the investment tax credit for residential solar electric installations placed into service after December 31, 2008
* Allows filers of the alternative minimum tax to claim solar investment tax credits
* Allows public utilities to claim the solar investment tax credits
* Authorize $800 million in new clean renewable energy bonds and creates a new category of tax credit bonds called Qualified Energy Conservation Bonds to finance state and local initiatives to reduce carbon emissions
* Extends deductions for energy efficient commercial buildings
* Establishing a new tax credit for purchasers of plug-in electric-drive vehicles
* Extends research and development tax credits
Five Reasons You Should Consider Generating Your Own Green Energy
Over the past six months, oil prices have plunged more than 50 percent, renewable energy company asset values have taken an even bigger dive, and financial institutions have collapsed completely, leading to a worldwide credit crunch.
Is this really the best time for your company to be thinking about generating renewable energy onsite?
Before answering, consider these forecasts by the International Energy Administration (IEA) in its recent World Energy Outlook 2008:
-- Energy is going to get more expensive, with oil reaching $200 per barrel by 2030.
-- Carbon-intensive energy, which comprises well over half of the energy in the United States, is going to get much more expensive-in part due to a cap on carbon that could reach $180 per ton.
-- The price and supply of fossil fuels will continue to be volatile.
In that context, it's clear: Companies can't afford not to think about investing in renewable energy, especially those with high energy-to-raw-material cost ratios, such as firms in agriculture, food processing, metal refining, paper manufacturing, and chemicals.
What follows are five key reasons why you should consider generating renewable energy onsite to power up your business.
Renewable Energy is Beating the Grid
In some regions, the cost of generating onsite renewable energy is already beating electricity bought from the grid. This "grid parity" is currently happening in places like California, Hawaii and Japan, where electricity costs are high and renewable resources are abundant. By 2012, Australia and Italy will likely achieve grid parity, and by 2015 much more of the United States will as well.
Threatened Supply and Hungry Demand Build the Case for Self-Production
Oil production is expanding to regions with increasingly unstable governments and crippling poverty, such as Iran, Russia, and Qatar, which together hold 56 percent of known new oil reserves.
On the demand side, the world is hungrier than ever: Even with the extremely high per-capita oil needs of OECD countries, fully 80 percent of projected new demand is coming from China, India, and the Middle East, while 1.6 billion people around the world still go without any electricity. As for logistics, the bulk of oil moves through international waters where there is growing banditry, such as the $100 million oil tanker heist by Somali pirates that is still unresolved. The result: The fossil fuel supply chain poses tremendous uncertainty on both price and physical delivery.
Carbon Legislation is Pushing Up Costs
Carbon cap-and-trade regulations, in some form or another, are descending on economies around the world. Already underway for several years, the European Union Emission Trading Scheme charges European heavy emitters $21.39 for every ton of carbon above their cap. In October, the U.S. inaugurated its first cap-and-trade program, the Regional Greenhouse Gas Initiative (RGGI), which regulates utilities in the Northeast with a cost of $3.07 per ton. Regulation is just around the corner for other parts of the U.S., as well as for China and Canada. The IEA, an energy policy advisor to 28 member countries, predicts that by 2030, the average carbon prices will climb to $90 or even $180 per ton.
In addition to cap-and-trade regulations, low-carbon product standards and border tax adjustments also will put pressure on supply chains and buyer demand. All this means that carbon-intensive energy is a growing liability, whether at your own operations, upstream with suppliers, or downstream with the use of the products you sell.
Incentives for Onsite Renewables Production are Rising
"Feed-in tariffs," which require utilities to connect small, onsite renewable projects to the grid and pay their generators for surplus energy generated, are gaining traction. Countries such as Germany and Spain have adopted such policies successfully, and others like the U.S. (in California) and China are in the midst of implementing and scaling them up.
Creative Finance Options Abound
There are numerous ways to gather the resources to make onsite projects happen. Thanks to the grid, energy service companies can provide some or all of the financing needed. The grid also enables creative partnerships. For example, in partnership with Xcel Energy, Colorado's Aspen Skiing Company recently financed $1.1 million for a 147-kilowatt solar energy array. Of the energy produced, a third goes to a local school, and two-thirds is sold back to the grid, with profits given to Aspen Skiing Company.
There is a good chance you will find financing for onsite renewable energy projects by exploring partnerships with foundations or exploring funding available in carbon markets for carbon-offsets projects.
With the energy crisis likely to outlast the current economic crisis, investing in onsite renewable energy generation can insulate your company from the shocks, scarcity, and rising prices of energy. And with recent political discussions about a "New Green Deal" and a climate change "Manhattan Project," it's even possible that governments will add to or reconfigure the $300 billion in energy subsidies around the world.
So, in response to the question we started with: Is this really the best time for your company to be thinking about generating renewable energy onsite?
Yes, now more than ever.
Source
Author, Ryan Schuchard
Ryan Schuchard is Business for Social Responsibility's environmental research and development associate.
Is this really the best time for your company to be thinking about generating renewable energy onsite?
Before answering, consider these forecasts by the International Energy Administration (IEA) in its recent World Energy Outlook 2008:
-- Energy is going to get more expensive, with oil reaching $200 per barrel by 2030.
-- Carbon-intensive energy, which comprises well over half of the energy in the United States, is going to get much more expensive-in part due to a cap on carbon that could reach $180 per ton.
-- The price and supply of fossil fuels will continue to be volatile.
In that context, it's clear: Companies can't afford not to think about investing in renewable energy, especially those with high energy-to-raw-material cost ratios, such as firms in agriculture, food processing, metal refining, paper manufacturing, and chemicals.
What follows are five key reasons why you should consider generating renewable energy onsite to power up your business.
Renewable Energy is Beating the Grid
In some regions, the cost of generating onsite renewable energy is already beating electricity bought from the grid. This "grid parity" is currently happening in places like California, Hawaii and Japan, where electricity costs are high and renewable resources are abundant. By 2012, Australia and Italy will likely achieve grid parity, and by 2015 much more of the United States will as well.
Threatened Supply and Hungry Demand Build the Case for Self-Production
Oil production is expanding to regions with increasingly unstable governments and crippling poverty, such as Iran, Russia, and Qatar, which together hold 56 percent of known new oil reserves.
On the demand side, the world is hungrier than ever: Even with the extremely high per-capita oil needs of OECD countries, fully 80 percent of projected new demand is coming from China, India, and the Middle East, while 1.6 billion people around the world still go without any electricity. As for logistics, the bulk of oil moves through international waters where there is growing banditry, such as the $100 million oil tanker heist by Somali pirates that is still unresolved. The result: The fossil fuel supply chain poses tremendous uncertainty on both price and physical delivery.
Carbon Legislation is Pushing Up Costs
Carbon cap-and-trade regulations, in some form or another, are descending on economies around the world. Already underway for several years, the European Union Emission Trading Scheme charges European heavy emitters $21.39 for every ton of carbon above their cap. In October, the U.S. inaugurated its first cap-and-trade program, the Regional Greenhouse Gas Initiative (RGGI), which regulates utilities in the Northeast with a cost of $3.07 per ton. Regulation is just around the corner for other parts of the U.S., as well as for China and Canada. The IEA, an energy policy advisor to 28 member countries, predicts that by 2030, the average carbon prices will climb to $90 or even $180 per ton.
In addition to cap-and-trade regulations, low-carbon product standards and border tax adjustments also will put pressure on supply chains and buyer demand. All this means that carbon-intensive energy is a growing liability, whether at your own operations, upstream with suppliers, or downstream with the use of the products you sell.
Incentives for Onsite Renewables Production are Rising
"Feed-in tariffs," which require utilities to connect small, onsite renewable projects to the grid and pay their generators for surplus energy generated, are gaining traction. Countries such as Germany and Spain have adopted such policies successfully, and others like the U.S. (in California) and China are in the midst of implementing and scaling them up.
Creative Finance Options Abound
There are numerous ways to gather the resources to make onsite projects happen. Thanks to the grid, energy service companies can provide some or all of the financing needed. The grid also enables creative partnerships. For example, in partnership with Xcel Energy, Colorado's Aspen Skiing Company recently financed $1.1 million for a 147-kilowatt solar energy array. Of the energy produced, a third goes to a local school, and two-thirds is sold back to the grid, with profits given to Aspen Skiing Company.
There is a good chance you will find financing for onsite renewable energy projects by exploring partnerships with foundations or exploring funding available in carbon markets for carbon-offsets projects.
With the energy crisis likely to outlast the current economic crisis, investing in onsite renewable energy generation can insulate your company from the shocks, scarcity, and rising prices of energy. And with recent political discussions about a "New Green Deal" and a climate change "Manhattan Project," it's even possible that governments will add to or reconfigure the $300 billion in energy subsidies around the world.
So, in response to the question we started with: Is this really the best time for your company to be thinking about generating renewable energy onsite?
Yes, now more than ever.
Source
Author, Ryan Schuchard
Ryan Schuchard is Business for Social Responsibility's environmental research and development associate.