Archive for the ‘photovoltaic solar systems’ Category
Home solar power system increases home resale value
One question often asked by homeowners considering purchasing a solar system is whether home solar power will add value to the home and increase home resale value. Studies have shown that home owners can expect to recover about 75% of their investments with kitchen remodeling, 85% with window replacements and 89% with bathroom upgrades*.
With residential solar power system installations, the increase in appraisal value for a home is about twenty (20) times the annual reduction in operating costs**. That is to say, if a solar power system can lower energy cost by $1,000 per year, the home is worth about $20,000 more in increased appraisable value. The rational is that the $1,000 that is not spent on electricity, is available to be spent on a larger mortgage payment at no net change in the cost of living.
Home solar power installation and home appraisal*
Examples of home appraisal values in California as shown in the above table demonstrate that home solar power not only can contribute to energy savings, lower energy cost, be friendly to the environment, but can also increase home resale value.
* http://learn.1bog.org/files/2009/03/black_home_value.pdf
**Nevin, Rick et al, More Evidence of Rational Market Values for Home Energy Efficiency, The Appraisal Journal, The Appraisal Institute, http://www.natresnet.org/herseems/appraisal.htm, October 1999
Energy: The Next Big Thing
For years people have been claiming that the next big industry boom will come out of the energy sector. As countries around the globe look for ways to spur their economy, there is literally a race to develop a clean source of renewable energy. From solar power systems to windmills and nuclear power, scientists and investors are scrambling to be the Microsoft of the energy sector.
An article in last week’s issue of Newsweek painted a grim picture for the United States’ prospects of becoming a major player in this inevitable revolution. The article examined how efforts of the US’s top scientists are being squelched by radical groups who do not want to stop drilling for oil and invest in research for new energy sources. It is disappointing that our role in this crucial matter is being hampered by our unwillingness to embrace new technologies.
TOU (Time-of-Use) Metering
Time-of-Use (TOU) Energy Rate
The more simple meters are referred to as non-time-of-use meters. They do not keep track of when electricity is used or generated. The more sophisticated meters called time-of-use meters record the time of day when you use electricity. When you have a grid-tied residential solar system, using a TOU meter can be advantageous as the excess electricity generated is priced at the higher day time rate, thus further helping you lower energy cost and lower electric bills.
Grid-tied Solar Systems and Net-Meters
Net (Energy) Metering
Most residential electric customers have bi-directional meters capable of running backward. When you install a renewable energy system such as a grid-tied residential solar system, the energy generated that you do not use is sent back to the electric utility grid. During this this your meter will actually be running backwards. This is advantages, as it will further lower your electric bill and shorten the pay back time of your home solar power system than if you do not have a net meter.
Solar Decathlon to promote awareness of home solar Power
On October 8th, 2009, the U.S. Department of Energy kicked off the Solar Decathlon. Participating in this competition are 20 groups of college students from around the globe. The aims of the decathlon are to promote awareness among the college students and the general public of the benefit of energy efficiency, and how solar energy technology can reduce energy usage. Through this competition the DOE hopes to showcase what is possible with today’s photovoltaic solar systems, to help solar energy technology enter the market place faster. It is also the purpose of the Decathlon to foster research and development and collaboration among students across different disciplines, to promote integrated whole building designs that create a more comfortable, energy efficient living spaces with reduced environmental impact, and to demonstrate to the public the potential of Zero Energy Homes that produce as much energy as they consume.
Federal Tax Credit for Solar Power
Electricity in the U.S. comes mostly from non-renewable sources, coal (48.5%), natural gas (21.3%), nuclear (19.6%) and Petroleum (1.1%). Renewables only make up approximately 9%. Of that 6% is hydroelectric. Solar, wind and other renewables make up only about 3% of our electric supply. To help the country transition to a less fossil fuel dependent economy, and to encourage home owners to improve fuel efficiency in their homes and to purchase renewable power-generating systems, the federal government is providing tax credit to a variety of energy saving home improvements.
The Federal Tax Credits for Energy Efficiency Act of 2009 provides a home energy efficiency improvement tax credit of 30% up to $1500 for improvements placed into service starting Jan 1, 2009 through Dec 31, 2010. For photovoltaic solar systems, the tax credit is a straight 30% of the cost. The cost of solar systems have come down substantially over the past couple of years, and with this government tax credit of up to 30% of the installation and equipment cost, solar systems have never been a more affordable investment .