Posted on: Sunday, October 1, 2006
Burst of sun power
By Greg Wiles
Advertiser Staff Writer

Manoa homeowners Sarah and Duane Preble may be in the vanguard when it
comes to home-generated electricity. Photovoltaic cells on their roof have provided for part of their 2,400-square-foot home's electrical needs over the past two years. Now they're taking steps to get 24 more panels, so almost all of the
wattage coming in to their home is from the sun. Only a minimal part
will come from Hawaiian Electric Co.

"We're just convinced it will pay for itself," said Sarah Preble, who
writes textbooks along with her husband, a former professor of art at
the University of Hawai'i. She said that when done, the $25,000
project will almost eliminate the $125 a month they paid for utilities
before getting the system.

The Prebles and others are among those taking advantage of new state
and federal tax credits that will pay up to $7,000 of the cost of an
installation. The credits help bring down the cost of the systems at a
time when utility customers are looking for ways to cope with the
nation's highest electricity rates. Companies involved in
photovoltaics say there's been a boom in installations.
Nationally, Solarbuzz LLC, a San Francisco-based solar research and
consulting company, projects the annual U.S. photovoltaic electricity
installation rate will surge to 290 megawatts in 2010, from 80
megawatts last year.

Use of more photovoltaics in Hawai'i is in keeping with a state goal
of having 20 percent of energy coming from renewable sources by 2020.
Hawai'i currently relies on fuel or oil to generate 89 percent of its
energy, more than any other state.

"We're expecting to see this (photovoltaics) grow from year to year,"
said Peter Rosegg, a HECO spokesman. "It's coming."
Home installations primarily have fallen into one of three
categories: rural homeowners who faced prohibitively high costs to tap
into existing power lines; people who are environmentally conscious;
and those who were enamored with the technology. The new incentives —
a state tax credit of up to $5,000 for each installation and $2,000
for a federal tax credit — are designed to provide broader appeal for
systems, which can run into the tens of thousands of dollars.

NEED FOR INCENTIVES
Marco Mangelsdorf, president of ProVision Technologies Inc. in Hilo,
said he believes more government incentives are needed to get
widespread adoption of photovoltaics because the systems remain too
pricey for many people, even if the symptoms can pay for themselves in
as little as eight years, depending how you estimate electricity rate
hikes.

"We're certainly not there at this point," said Mangelsdorf, who said
the state should adopt some sort of reimbursement program for
homeowners if it wants to see the renewable energy source take off.
Photovoltaics "doesn't have a 'gotta-have-it' allure to it at this
point for homeowners."

While there hasn't been a stampede into photovoltaic showrooms, the
new state tax credits have been reason enough for some homeowners to
take the plunge. Rolf Christ, owner of R&R Services, a wholesaler of
solar water heating equipment and some photovoltaic supplies, has been
in the solar business for 25 years but only now is getting a
photovoltaic system installed on his house.

"The climate is right, right now," he said. "Electricity costs are
high enough and the tax credits are high enough."
He'll get one half of the system installed around the end of the year,
qualifying for the $7,000 tax credit. Christ will expand the system
next year, earning another credit next year. He said systems may pay
for themselves in 10 years or so, depending on electricity rates.
"After that the money pours in," Christ said. "It's not a bad deal for
someone who has the cash."

Hawaiian Electric Co. already is seeing a more than a doubling of
O'ahu homes with photovoltaics this year from what has been a tiny
base. Continued increases are expected on the Neighbor Islands, where
electricity rates are higher.

"We're on the verge of moving away from the early adopters," said Ron
Richmond, a HECO photovoltaic expert. Last year developer Actus Lend Lease began building almost 3,000 military homes on O'ahu that will incorporate photovoltaic roofs into their designs. The developer says it will be the largest solar-powered residential community in the world when finished, generating 7
megawatts of energy for the U.S. Army's grid.

Richmond said he's had informal talks with another major Honolulu home
developer about building homes incorporating photovoltaic systems, and
that the number of homeowners installing systems appears to be more
than double last year's total. In the future, it may be that homes
with photovoltaics command a premium, Richmond said.

PHOTOVOLTAIC HOTBED
He estimates greater activity on the Neighbor Islands, which are a
hotbed because of higher electricity rates and more homes farther from
the grid. The Big Island, he said, probably has more than 5,000 homes
with photovoltaic systems hooked into storage batteries because they
aren't tied into Hawaii Electric Light Co.'s power lines.

He estimates greater activity on the Neighbor Islands, which are a
hotbed because of higher electricity rates and more homes farther from
the grid. The Big Island, he said, probably has more than 5,000 homes
with photovoltaic systems hooked into storage batteries because they
aren't tied into Hawaii Electric Light Co.'s power lines.
"It's getting much closer with all the incentives," said Richmond. "I
just see this trend increasing."

Hawaiian Electric may also install its own system, even though it
doesn't qualify for the tax credits as a utility. Rosegg said the
company has been exploring projects and expects to announce something
soon.

Christ said he's seen a 40- to 50-percent increase in photovoltaic
orders since the state's tax credit of 35 percent up to $5,000 of a
system's cost went into effect in July. Besides making systems more
attractive to homeowners, the credit, which has no legislative sunset
date, is spurring more solar and electrical contractors to get into
the business.

Mangelsdorf said his sales began rising about a year ago, and this
year his sales will more than double as he installs residential and
commercial systems. The huge up-front costs for photovoltaic will probably keep it from growing as rapidly as solar water-heater systems, which can cost less
than $1,500 after tax credits and can pay for themselves in less than
three years. Lately prices for photovoltaic cells have risen because
of worldwide demand for them.

But there are signs that the industry is maturing, he said, and the
ups and downs aren't what matters anyway.
Some experts predict photo-voltaic cells will become more efficient,
and prices will decline from their current level. As prices of
installed systems fall, the number of homes with systems will rise.
But for Sarah Preble, the time is now.

"For people who live in the tropics, it is irresponsible not to
maximize whatever the sun can do for us," she said.

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