On January 20th, 2009, Barack Obama was sworn in as the forty-forth President of the United States. His first address to the people as President was delivered with a balance of poise and gusto, stirring an excitement, yet reminding us we have a long uphill battle ahead. He spoke of the immediate concerns on the home front. He spoke of the United States’ relationships with other countries and perhaps more importantly, our place in the world. President Obama continuously made reference to the importance of implementing renewable energy resources into the mainstream. His reasons were many, and we are certain to see development go in this direction over the next few years.
One of the resources that he referred to was solar energy. The industry has been around for decades, yet people have shied away from what seems a natural solution, especially to those of us living in the desert. Intuitive solar companies are now negating traditional barriers of purchasing solar power systems for homeowners. Furthermore, electricity company rebates, as well as Federal and State tax credits are making solar even more affordable.
So what are the benefits of solar energy over traditional electricity from a centralized plant? The environmental benefits are plentiful. Solar energy does not produce any CO2 emissions; therefore it is not contributing to air pollution, smog, acid rain, or global warming. Even if you factor in the manufacturing of the PV Panels that capture solar energy, the carbon footprint is only fifteen percent of traditional electricity. Currently, seventy percent of the United States electrical supply comes from the burning of coal, gas, and oil. By using solar power, these resources can be saved to operate machinery that does not yet have the technology to be run by a renewable resource. If one million homes installed solar panels, it would reduce CO2 emissions by 4.3 million tons, which is the equivalent of removing 850,000 cars from the roads. But what are the direct benefits to the consumer?
Installing solar panels and reducing your reliance on centralized energy means that you have taken control of your own household energy. Yes, it is one step closer to a better environment, but it is also a step toward financial independence. By purchasing a solar power system, you become an owner of your own green power plant. You are no longer dictated the price you must pay for energy and be subject to the price increases that are certain to come. In fact, if your solar power system produces more power than your house consumes, you actually sell the excess back to the electric company at the same price that they charge you. Some homes are able to run at very close to zero cost.
So, how do you get started? The first step is a little research. Solar power systems are still very expensive, starting from $20,000 and reaching as high as $55,000 depending on roof size, aspect, and how much energy you wish to capture. The good news is that APS rebates combined with state and federal tax credits will reduce this cost by fifty-five to seventy-five percent. There are many companies in the region who are selling and offering this alternative. REC Solar, a San Luis Obispo, California-based company has partnered with Costco to bring their expertise in solar energy to the Valley. The company has been in operation since 1997 and is one of the leaders in solar power installation in the United States. REC Solar customers are extended a site evaluation as the first step in the process toward energy independence. This allows REC Solar to make recommendations as to the size of the unit that would be appropriate and gives the homeowner an opportunity to have a lot of questions answered.
Another company with an extensive history of installing solar panels is American Solar Electric, which is actually the largest installer of solar panels in Arizona. They too begin the process with a site inspection, but this month they are also coming directly to customers and will present information in an open forum on June 24th, 6:30PM to 8:00PM at the Anthem Community Center.
“We try to make the presentations as informative as possible for those in attendance. We do not get too much into the technology, but instead try and provide consumers with real numbers that are relative. We have installed about a dozen systems in and around Anthem and we will try and get the cost-benefit data from those real examples to share with residents,” said Wes Neal, Sales Manager of Residential Projects Group. American Solar Electric is licensed, bonded and insured for both commercial and residential electric and roof contracting in the state of Arizona. They are concerned not only with what the system brings, but how well it is installed. Few companies can differentiate themselves as a leader in this industry as American Solar Electric can and their presentation will be one not to miss.
If a capital purchase in the thousands of dollars does not sound feasible right now, there are other options. Both REC Solar and American Solar Electric have partnered with SunRun, a solar company that purchases your home solar system for you. Solar City is another company that offers similar services. The premise of these companies is that the consumer pays an initial deposit or partial maintenance installation for approximately $1,000, and then the consumer pays for the solar electricity as it is used, at a reduced rate. The electricity is clean, the rates are fixed below cost, and the companies will maintain the system for as long as the customer stays in the home or until the completion of the contract. Contracts last for up to eighteen years, and homeowners are making a valuable contribution to cleaner air and still saving money.
On a smaller scale of solar solutions, Tom Ford of Liberty Mechanical and Ford 360 Building Group has partnered with Rheem, to provide residents with solar hot water heaters. Ford’s company has been working on many projects in the area that see a return on investment in as little as two years. “A solar hot water heater is one step that consumers can take toward renewable energy solutions without risk or long-term commitment. After APS rebates and federal and state tax incentives, the cost of a solar hot water heater is marginally higher than a traditional gas or electric hot water heater. The difference is that the solar heater will reduce monthly energy consumption by approximately eighty five percent. With 300 days of sunshine in Arizona, it is crazy not to take advantage,” Ford said.
According to the US Department of Energy, a home’s hot water heater accounts for twelve percent of home energy consumption, making it the second most expensive unit in the home behind climate control. A typical eighty-gallon electric hot water tank, serving a family of four, has a seven-year life expectancy. It will cost $4,050 (calculated at $0.09 per KWH) to run the unit during this time period, or $48 per month. That may not sound like much, but when a solar hot water heater is properly installed, homeowners can expect to save approximately $40 from their monthly bill.
Currently up to eighty-four percent of the costs associated with the installation of a solar hot water system are covered by tax incentives and electric company rebates as demonstrated in the following example provided by Liberty Mechanical.
Rheem Solaraid - RS80-42BP
This system comes with a five-year Limited Tank, Collector and Parts Warranty.
$5495 Total Installed Price "Including Tax & Labor"
-$1950 APS Renewable Energy Incentive Rebate
=$3545
-$1648 Federal Tax Incentive 30% Credit
=$1897
-$1000 State of Arizona Tax Incentive 25% Credit or $1000 Max
=$897 Total cost
With an anticipated $40 in savings per month on your electric water heating cost, the system will pay for itself in just under twenty-two months. When you consider that a traditional hot water heater installation is approximately $600, it will only be a little over seven months before you make up the difference. You will then realize the savings of $40 per month for the next seventy-seven months of the average life expectancy of a water heater. That is a saving of $3,080.
Tom Derryberry, of North Valley Rayne, has established his full service water treatment center in Anthem since almost the inception of the community. He, his wife Mary Ann, and son Jeff, have provided water solutions to thousands of homeowners over the years and have recently seen an increase in the interest for solar solutions, “We are replacing a lot of hot water units at the moment with homes hitting that six to eight year mark.” Tom said. “Many of our customers are enquiring about solar and with the programs available at the moment, it is almost the same price to go solar as it is for a regular installation.”
North Valley Rayne have partnered with a local Deer Valley business to provide solar alternatives. Integrated Solar may have a new name, but they have been in the solar solution business for thirty years. The work that the companies have been doing together have been met with rave reviews, “In follow up conversations that I have had with residents who have had a solar unit installed, all of them have provided positive feedback. Homeowners have seen their Gas bill go from $35 down to $3 or $4 per month,” Derryberry stated.
If you have just installed a new hot water heater, or you think that your hot water heater has a lot of life left, you don’t have to wait. A solar hot water heater can be retrofit to your existing unit.
These companies have all taken the initiative in the energy crisis. They have shown us that there is a better way and that the social norms of burning coal and oil are no longer beneficial to the environment, our economy, or our pocketbooks. The future is in alternative renewable energy and right now, solar is a great solution for us in the Valley of the Sun. It is now our turn to take the initiative and take control of our energy future.
Shortened quote from President Obama:
“We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together…… We will harness the sun and the winds and the soil to fuel our cars and run our factories.”
Quotes from Obama
Each day brings further evidence that the ways we use energy strengthen our adversaries and threaten our planet do.
To the people of poor nations, we pledge to work alongside you to make your farms flourish and let clean waters flow; to nourish starved bodies and feed hungry minds. And to those nations like ours that enjoy relative plenty, we say we can no longer afford indifference to suffering outside our borders; nor can we consume the world's resources without regard to effect. For the world has changed, and we must change with it. |
