Archive for October, 2009
Reductions in state incentives for home solar power systems
According to a recent New York Times article, home solar power has been getting cheaper for years. Solar panel prices have declined 31 percent from 1998 to 2008 because of lower manufacturing and installation costs and state and local subsidies, according to a study released recently by Lawrence Berkeley National Laboratory. But it still took a ramp up in federal incentives this year to bring the cost within many people’s reach.
More than half the states in the U.S. and Washington D.C. offer generous incentives to cut the costs by 40 percent or more, according to Amy Heinemann, a policy analyst at the Database of State Incentives for Renewables and Efficiency.
How much you’ll spend depends on where you live. In New Jersey, generous state incentives can pay for more than 90 percent of a home solar system. A 5 kW solar system would drop from $37,500 to about $2,625 after applying the federal tax credit, a state rebate, and a renewable energy program through the state’s largest electric utility, PSE&G. A system that size can shrink a typical home’s electricity consumption by up to 40 percent and cut an electric bill by several hundred dollars a year. The owner would recoup the cost in roughly three years. Homeowners may never see discounts like these again. Funding in some states dwindled this year as the recession has resulted in tightening of state government budgets.
New Jersey reduced its subsidy by half last year, though PSE&G has picked up some of those costs. With many states facing budget deficits, it is unlikely that this type of subsidy will go on indefinitely. Indeed, Massachusetts, Colorado, Maryland, Connecticut, Minnesota and Delaware have all cut theirs as well. With labor and electricity rates likely to rebound, people should do the math and determine if now is the best time to buy a home solar power system.
For the full article please go here: http://www.nytimes.com/aponline/2009/10/21/business/AP-US-Bargain-Solar.html?cp=7&sq=cost%20of%20solar%20panels&st=cse
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.
Fuel surcharge for high energy usage
Most utility companies have a multi-tiered system for charging their residential customers. If your usage is very low, you pay the baseline rate. As your usage goes above the baseline, progressively highly rates apply. You might have noticed that when cold weather sets in, your electric bill suddenly doubles even though you might not have used that much more energy. The diagram below shows the rate schedule for residential customers of PG&E. Notice a 56% increase in rate as usage goes above the baseline level by just 30%.
PG&E residential rate schedule
Utility customers, however, don’t need to be stuck with the high rates. There are ways, that they can reduce electricity usage and lower energy cost. Installing a Power-save 1200 power factor conditioning unit is one of them . The amount of savings for the heavy usage months will help to quickly pay for the few hundred dollar initial investment for the purchase and installation of the unit. It is a cost effective means to save energy and will in the long run pay off through energy savings and lower energy bills.
Benefits of Duct Sealing
Exposed or improperly insulated or sealed ducts and pipes in the house can result in inefficient cooling in the summer and excessive heat loss in the winter. During normal operation, gas appliances such as water heaters, furnace, stoves, and clothes dryers release gases (like carbon monoxide) through their ventilation systems. Improperly sealed ducts may result in back drafting, thus posing health hazards. Fumes from household and garden chemicals, insulation material and dust can also enter the duct system, aggravating asthma and allergy problems in sensitive individuals.
Duct Sealing
Leaky ducts can reduce heating and cooling system efficiency by as much as 20%. The proper application of duct seal can minimize heat transfer, increase comfort level of indoor air and save energy. The cost of installation of duct seals and insulation can be readily recovered through lower energy bills. A properly insulated home with well sealed ducting system may allow you to down size your heating and cooling systems , thus further reducing your energy cost long-term.
Are your Energy Star Appliances Energy Star Compliant?
Money Isn't What (All) You Are Saving?
According to a 10/19/2009 New York Times report of an Energy Department internal review, while the Energy Department requires manufacturers of windows and L.E.D. and fluorescent lighting to have independent laboratories evaluate their products, the report said, companies that make refrigerators, washing machines, dishwashers, water heaters and room air-conditioners, which consume far more energy, can certify those appliances themselves.
One refrigerator manufacturer tipped off the Energy Department that some models from a competitor that carried the Energy Star label did not meet the criteria, the audit said. That problem was also described by the Consumer Report magazine in October 2008 about tests it had conducted. In a settlement last year, the manufacturer, LG of South Korea, agreed to modify circuit boards in the machines already sold, to reduce their consumption and to compensate consumers for the extra power consumed.
The report also noted that while the government said in 2007 that it would conduct “retail assessments” to ensure that all the products carrying the Energy Star logo deserved them, it is still not doing so for windows, doors, skylights, water heaters and solid-state lighting. And the department is not following through to ensure that when inappropriately labeled products are identified, the labels are actually taken off, the audit said.
Meanwhile, if you are planning to replace your appliances with Energy Star labeled products, you might also consider installing a Power-save Power Factor Conditioning Unit to ensure that you save energy and lower your electric bills.
Easy Energy Saving Tips
Right now everyone is looking to save money, and one of the best ways is reducing your monthly bills. Besides rent and mortgage payments, the most expensive bill for most people is usually their utilities, especially electric. Luckily, this is one of the easiest bills to reduce.
Making little changes can add up to big energy savings, particularly when dealing with big pieces of equipment. Large appliances, like dishwashers and dryers, are notorious for consuming energy. When you run large device like these, choose cycles that require less heat such as “air dry” for your dishes and “tumble dry” for your laundry. Also, take shorter showers and use warm or cold water to wash clothes to cut down on the usage of your hot water heater.
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.