When Dana Brandt started installing solar panels on homes in
Bellingham nine years ago, people wondered what was next - screen doors for
submarines?
"You can imagine what people say," says Brandt,
sitting in the conference room at his company, Ecotech, on a cloudy December
day.
The northwest corner of the Pacific Northwest is famous for
its winter gloom, and there's not much energy to be had from the sun that time
of year. But as it turned out, Brandt was on to something. Whatcom County is a
good place to go solar.
What winter lacks in sunlight is made up for in the summer,
when clouds are usually scarce and the sun can shine 16 hours a day. What
Washington needed to launch its solar industry was a way to squirrel away that
summer bounty for the dark winter.
Enter "net metering." A state law passed in 1998
requires utilities to credit homeowners with solar (or other alternative
energy) systems for any power they generate beyond what they use and that flows
onto the grid. The excess power produced in the sunny summer comes back to the
homeowner as a credit on their electric bill during the gray winter.
"It's really why solar works here," Brandt says.
"There's no battery that can do that."
Josh Miller, general manager of solar operations at Western
Solar in Bellingham, says his goal is for his clients to produce as much
electricity in a year as they use. That wipes out the customer's electric bill
- all but a base $7.49 monthly charge, according to Puget Sound Energy.
On top of that, owners of solar-powered homes typically get
$1,000 cash from the state just for producing solar energy. The payback, from
what PSE calls the Renewable Energy Advantage Program, can be as much as $5,000
a year.
A 20-panel solar system with equipment made in the state can
be installed for about $22,000, Miller says. Combining net metering, REAP and
certain tax breaks, such a system can pay for itself in five years.
Solar energy has grown at a rapid clip in the state - about
50 percent a year since 2008. Brandt says it should continue to grow over the
next decade or so.
A big reason the future looks so bright for solar power here
is the 270 solar arrays that already have appeared on Bellingham roofs,
according to PSE's count.
"Every week more people learn solar works here because
their friends and neighbors did it," Brandt says.
INCENTIVES
Net metering: Under a state law, utility customers
receive a credit on their bills for the full retail cost of extra energy
produced and delivered to the grid.
Federal income tax credit: Covers 30 percent of the
total cost of the system, including installation (expires 2016).
No state sales tax: The tax exemption for solar
equipment or installation expires 2018.
Renewable energy system cost recovery law: What Puget
Sound Energy calls the Renewable Energy Advantage Program pays solar users 15
cents per kilowatt-hour, which increases to as much as 54 cents per kWh for
solar panels and inverters made in Washington. (itek Energy of Bellingham makes
both.) On average, the incentive is $1,000 a year. The maximum payment is
$5,000 (expires 2020).
OTHER ENERGY-SAVING TIPS
Besides solar, there are a number of ways to reduce home
energy costs, says the Community Energy Challenge, based in Bellingham:
-- Use energy-efficient light bulbs. CFLs are used as are
LEDs, which are becoming popular because of their color quality and
dimmability.
-- Seal heating ducts. That way, the ducts won't leak into
unheated spaces in your home. "That's about the biggest bang for your
buck," says Alex Ramel of Community Energy Challenge.
-- Air-seal or weatherize your home. That requires a trained
professional, because improperly sealed homes can lead to unsafe levels of
carbon monoxide or mold.
-- Insulate your home. People should start with the attic,
because hot air rises. "If you only have $1,000 to spend, spend it on
insulation in the attic," Ramel says.
-- Replace furnaces or water heaters. That's recommended if
the original system is older and less efficient.
SOLAR FAQ
How do I get started?
To find a reputable solar contractor, call an energy advisor
at Puget Sound Energy, 800-562-1482. Two established companies are based in
Bellingham: Ecotech, 360-318-7646; and Western Solar, 360-746-0859.
For a broader assessment of how to reduce energy costs in
your home (see "Energy-Saving Tips"), contact the Community Energy
Challenge at 360-676-6099.
Is my home right for solar?
The ideal spot for solar panels is a south-facing roof.
Panels can also be installed along a deck or free-standing in the yard, as long
as the area gets no shade from 9 a.m. to 4 p.m. Panels can be mounted on east-
or west-facing roofs, but the energy production drops 12 to 15 percent.
How many panels should I get?
The median size of an array attached to PSE's grid is 19
panels. Josh Miller of Western Solar says at least 10 panels give a significant
return on investment. Beyond 38, the customer doesn't get the full state cash
incentive for the energy produced, because the incentive is capped at $5,000.
How quickly does a solar system pay for itself?
For the typical system, five to seven years. Larger systems
that produce more energy can see a full return on investment sooner.
Given that a solar system is expected to last much longer,
homeowners come out ahead. For a proposed $31,000 system, Dana Brandt of Ecotech
estimated the client would net $24,000 in 30 years.
Are solar grids hard to maintain?
Solar panels are virtually maintenance free, Miller says.
They are generally more durable than the homes themselves, and can withstand
winds up to 120 mph. Installers recommend hosing off the panels once or twice a
year to remove debris. Panels come with a 25-year warranty, which includes a
guarantee that the efficiency of the panel will be no worse than 80 percent
after 25 years.
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