With Higher Electricity Costs, Can Solar Power Help?

BY Adam Wasch, Energy Outreach Consultant at CCHRC
Energy Focus: Fairbanks Daily News-Miner October 30th, 2008, Section A3

This is the first of a series of columns exploring how solar energy can be used at home to reduce your energy costs.

Science guys and green types have been using miniature solar panels to animate Legos and twirl dream catchers for years, but has solar power technology advanced to the point where an average homeowner can save money. Is solar power practical?

CCHRC is testing four large photovoltaic (PV) solar panels on our property near the university. These panels were made possible by BP’s generosity and, in theory, contribute about half of our building’s electricity needs. CCHRC also uses solar energy to heat water and, through strategically placed windows that are designed to harvest the sun’s warmth, so-called passive solar technology.

Basically, the economics of solar energy depend on how long it takes to recoup installation costs. Whole-house solar power systems take many years to produce a return on investment, but smaller systems begin paying you back much faster. The Golden Valley Electric Association (GVEA) and government incentives significantly reduce installation costs and further speed the payback.

“Strictly speaking, an economic argument alone is not going to persuade most people to adopt solar technologies, especially if you’re talking about photovoltaic panels to make electricity,” says CCHRC Product Testing Director Colin Craven. “It’s about becoming part of the solution to our long-term energy needs and encouraging others to do the same. The payback on solar-generated power is long-term, but there’s more you can do with solar than generate electricity. For example, there’re solar thermal and passive solar, which are more attractive financially.”

Solar thermal systems supplement heat from traditional energy sources by transmitting the sun’s heat through exchange pipes to your water supply. Heating water is among a home’s top energy draws, so going solar can make a big difference. In the Lower 48, a solar thermal system reduces heating bills 50 percent to 80 percent, according to the U.S. Department of Energy. CCHRC is studying the savings in our climate. Systems cost $2,500 to $4,500, but up to $2,000 can be refunded to you in the form of a federal tax credit. Additional state incentives are available. If you’re building new construction and include solar in the cost of your mortgage, you’ll realize monthly savings immediately.

Thermal panels are smaller than PV panels and more efficient because thermal panels can use more of the sun’s energy. Passive thermal systems store collected heat in specially constructed walls or masonry, whereas active systems such as those you would add to existing homes transmit heat directly to a water tank. Either way, your energy bill goes down, you’re protected against rising energy costs, and your home becomes more environmentally friendly.

For more information about tax credits and other incentives, go online to the Database of State Incentives for Renewables & Efficiency and check out GVEA’s SNAP Program website.

Next week, we will discuss incorporating passive solar design into your home’s features and window choices. In the meantime, consider taking a guided tour of CCHRC’s building and how we use solar power.

Adam Wasch is the Energy Outreach Consultant at the Cold Climate Housing Research Center (CCHRC). For questions or comments please contact CCHRC at (907) 457-3454

3 comments

  1. I have stumbled upon your site and read your point of view with interest. Whenever I get a chance to say something about energy and the generation of electrical power I point out this fact that many people fail to see or talk about.
    The next time you open your energy see how much you are charged for “Transmission and Distribution Fees”. You will find over half and sometime more of your bill is not even for electricity. Keeping this in mind, what is going to happen when more and more electricity is generated by alternative “free” energy like solar or wind is produced? With the supply going up will the price come down. I don’t think so. The reason being that “Transmission and Distribution fees” will keep going up, thus keeping the prices high. The survival of the “power company” will be paramount, not to mention taxes going to the States.
    Research and take a long hard look at the “Red” tape, better know as “bureaucratic roadblocks” that are thrown at the home owner that tries to put a stand alone solar panel system (system that take you off the grid) in place. There are no “Transmission, Distribution or Generation fees” When you produce your own power. . Then there is the little noticed printrf on my bill from Pacific Gas and Electric Company (PGE) here in Northern California. “Rotating Outage Blk. which means: Outage Block. At the bottom is printed this: “Rotating outage blocks are subject to change without advance notice due to operational conditions”. There are not outage block when you own your own system. Its your system, you do the repairs or have it done to make sure you have the power. There isn’t much to wind and solar power, you have panels or a wind apparatus, batteries, converter, and regulator all very simple and easy to monitor. Is it as simple as a power line coming into you home with a meter attached showing how much energy you use and you are billed? No, and that is what the power companies are hoping you are thinking. Getting off the “grid” will take some darn good research, perseverance and determination, but once off the “grid” you have freedom, independence and security. When you have your system, and there is a power outage due to weather, earthquake, or some drunk knocking down a power poll you will have power and lights.
    Think about it.

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