ONE WOMAN CONSIDERS INSTALLING SOLAR

Wall Street Journal columnist Gwendolyn Bounds shared a personal account of her discoveries and disappointments investigating the installation of a solar system for her home.

Why was she interested?

“Like many Americans swooning from higher heating and cooling costs I'm in the camp of "something's got to change." On one hand, I've taken many small steps to make my 1978 home more efficient: adding insulation, hiring an energy auditor to pinpoint air leaks, tuning the oil-fired boiler and replacing old appliances with Energy Star models…But not until now, with a costly winter on the horizon, did I investigate solutions to seriously wean my home from fossil fuels…”

Here’s Bounds’ answer to the 1st question everybody always asks: The average cost of a (4.5 kilowatt) residential photovoltaic (PV) system: $40,000 to $50,000 (before tax credits/rebates).

The next question, always: How long until the system pays for itself?

Solar industry pioneer Paul Maycock, President of PV Energy Systems and Editor Emeritus of PV News says that’s the wrong question. The next question, Maycock says, is “When will the monthly savings equal the monthly utility bill?” The answer, Maycock adds, is “Right now.”

Bounds found a smaller system, for hot-water, is cheaper: $2,000 to $8,000.

Solar hot-water systems do not cut electricity bills but are impressively practical because they dramatically reduce overall utility expenses.

Jeff Irish, Hudson Valley Clean Energy, on installing a solar hot-water system: "It's a very quick and easy way to get yourself out of two-thirds of your hot-water bill…"

It is a truism in the industry that the high cost of the system is the reason for limited consumer uptake. It is possible that assumed truth is not true. As Bounds pointed out, the cost is defrayed by a variety of federal, state and local subsidies, tax breaks and rebates.

It is possible the technology is intimidating and the complications of financing and installation are not welcome for consumers whose lives are already complicated enough and who are presently busy trying to find out who Fannie Mae and Freddie Mac are and why they have our money.

The lower cost of a solar hot-water system appealed to Bounds – but so did the simpler technology.

Before she reached her final decision, Bounds discovered unexpected obstacles to solar system installation: “The combined one-two punch of shade and low roof tilt meant a photovoltaic system wouldn't qualify for a full state rebate without some serious tree-trimming.”

She’s still deciding whether to pay higher heating oil costs, up from $1.50/gallon 5 years ago to $4.88/gallon for the coming winter, or face a solar system installation, financing, tree trimming and all.

Solar systems are still expensive but pay for themselves eventually - and prices are on their way down. (click to enlarge)

Let The Sunshine In
Gwendolyn Bounds, July 19, 2008 (Wall Street Journal)

WHO
Gwendolyn Bounds, columnist, Wall Street Journal

WHAT
Bounds, About the House columnist for the Wall Street Journal, recounts her experiences and what she learned installing a solar system in her own home.

Home heating oil is expensive now and expected to be 25% more expensive when winter demand sets in. (click to enlarge)

WHEN
- Bounds’ worked on her home system in Spring/Summer 2008.
- Measurements of the varying time of the day and seasonal roof shade were made.
- This coming winter: The average home heating bill is expected to go up 33%.
- 2005 to 2007: U.S. solar water heater installations tripled.

WHERE
- Bounds lives in the Hudson River Valley region of New York state.
- Roof measurements include pitch and relationship to true south.
- Hawaii: The 1st state to mandate solar water system (All new homes beginning in 2010).

WHY
- Solar hot-water and solar electricity generation systems were considered and evaluated.
- Present choices for hot-water heating in the northeast: oil and propane. Other places it is natural gas
- 5 years ago: 1000 gallons of heating oil/winter @ $1.50/gallon = affordable.
- This winter: $4.66/gallon = how much for a solar system?
- Other alternatives: Wind and geothermal. Both are impractical for suburban homes.
- Federal, state and local financial incentives details on solar systems at DSIRE
- Bounds’ solar hot water system: an inside water-storage tank and outside solar collectors. The system pumps propylene glycol/water (nontoxic) antifreeze through the collectors. Warmed by the sun, it flows into the storage tank and passes through a heat exchanger where it transfers heat to stored potable hot water in the tank. The warmed water goes into the house water heater. If the water doesn't get hot enough, it can be heated more by the house system.
- Estimated payback time depends on the system installed and the annual (assumed) 3.5% to 5% annual increase in energy costs. About 5 to 10 years. More options (ex: more hot-water heating, space-heating hot-water system) adds to cost and to savings.

Schematic of a solar hot-water system. (from the Wall Street Journal - click to enlarge)

QUOTES
- Jonathan Rose, environmentally sound housing communities planner, Jonathan Rose Companies LLC: "We've fundamentally turned a corner…"
- Randall Reu, managing director, Solar Water Works LLC: "This spring, it really took off…"
- Bounds: “I'm still mulling my move and haven't given up on photovoltaic. Tuesday, an arborist came to assess the trees. Meantime, my oil company sent a letter locking in record-high winter pricing of $4.88 a gallon. The company's owner wrote: "There are no overnight miracles but if we are courageous, strong and work together, this too shall pass..." …That's sunny optimism of one sort -- but I might need technology as a backup.”