Posted on: Tuesday, September 26, 2006 - West Hawaii Today
Solar Electric Systems Can
Dramatically Reduce Utility Costs
By Bobby Command
Despite the lack of incentives for residential systems, Vohden said
she has no regrets. "I highly recommend it. In my case, the worst-case
scenario is it pays off in eight years, best in five. This system is rated
for 25 years, so all the energy it produces after that is free."
With significant upfront costs, a solar electric system may not be for
everyone. But for those who are feeling sticker shock as they open their
HELCO bills following the sudden surge in fuel prices, such a system could
dramatically reduce utility costs and pay for itself within a decade. Such
is the case with Garry Wilson of Keauhou Mauka and Connie Vohden of Kailua-Kona,
both of whom have experienced huge reductions in their bills from Hawaii
Electric Light Co. after installing photovoltaic systems.
"I opened the bill and saw $1,000 and I knew I had to do something,"
said Wilson, who now anticipates bills of about $100 or less when he completes
installation of the sixth panel. "You might be able to do better with
HELCO right now, but it's obvious power costs are going to keep rising."
Vohden, who is renovating a home she bought in April, said her bill was
about $100, even with cement mixers going outside. Vohden expects not to
have to pay for power once the work is done. "I didn't want to be tied
to HELCO," she said. "We all have these roofs soaking up energy,
so I thought I might as well use mine."
Admittedly, Vohden and Wilson are not normal customers, since they both
own and operate pools on their properties. Both systems were installed by
ProVision Technologies of Hilo, a five-year-old company that sells and installs
the photovoltaic packages, which include silicon crystal panels that generate
electricity when they are exposed to light. While there are independent
systems that store energy in batteries, the systems purchased by Vohden
and Wilson are connected to the grid, which allows the use of HELCO power
at night and when weather does not permit the solar cells to generate sufficient
power.
They are also connected to net meters, which allows the system to put
surplus electricity back onto the grid. That runs the meter backwards and
makes up for the energy used when the solar system is idle.
"That 5.61 kilowatt system should take care of all of Connie's needs,"
said Marco Mangelsdorf, ProVision president. "And with HELCO's rates
increasing by 20 percent since August 2004, it will also pay for itself
a lot quicker." Mangelsdorf said ProVision, one of a handful of solar
power providers on the Big Island, will tailor the system to meet the needs
of the customer. Wilson said he blinked when he saw the cost of a complete
system and started slowly, purchasing a smaller unit to power night lights
and fans in his four-bedroom home. "When I saw those huge up-front
numbers, I thought to myself, 'how do you justify that kind of cost?'"
However, Wilson said he knew he had to do something when he saw the high
HELCO bill. "We're seeing the costs going up," said Wilson, who
said his children go through a lot of hot water. "I saw Katrina, and
where we used to live - Kaloko - we had a failure once a month." He
kept on going back and when his sixth panel is installed, he will have a
3.3-kw that should cover most of his needs.
Mangelsdorf said an average home would require about 18-19 kilowatt hours
a day to take care of nearly all their power. Depending on a family's needs
and variables, including the pool, it will cost about $30,000 to $50,000
to purchase and install a system that will provide energy independence.
At that cost, Mangelsdorf said a system should pay for itself in 10 to 15
years. The cost will go down ever so slightly as a federal credit that goes
into effect on Jan. 1. The credit will slash $2,000 or 30 percent of the
cost. Added to a state credit, a total of $3,750 could be slashed off the
bottom line.
Vohden said she purchased the system through a home equity loan, and that
has allowed her to deduct interest on the payments. Unfortunately, for homeowners
at least, most of the credits are for businesses. "I don't know why
they won't do it for homes," she said. Mangelsdorf echoed the sentiments
for homeowners, but added that a business could convert to solar, take care
of at least 50 percent of their power costs and pay for the system in fewer
than five years.
That's because commercial users may enjoy a 35-percent state energy conservation
tax credit, state capital goods excise tax refund and 10 percent federal
energy business tax credit. Depreciation deductions are also available.
Despite the lack of incentives for residential systems, Vohden said she
has no regrets. "I highly recommend it. In my case, the worst-case
scenario is it pays off in eight years, best in five. This system is rated
for 25 years, so all the energy it produces after that is free."
Wilson said his energy saving measures have not stopped with the solar power
array. "We had this big diesel truck, but we've gone to hybrid and
we're now getting 43 miles per gallon," he said. "Our fuel and
power costs have dropped dramatically, and a new solar panel will be taking
my HELCO bill to zero. But I feel good because I think we're doing the right
thing."
Warren Lee, HELCO president, said the utility supports the use of renewable
energy devices. "With the rising cost of fuel, it is an option that
everyone should be looking at," said Lee. "Even if you can't afford
solar energy, which is much more expensive and the payback is longer, a
solar water heating could cut your costs by 30-40 percent."
Lee said HELCO provides a $1,000 rebate solar water heaters, and the state
will kick in a $1,750 renewable energy tax credit. "That could cut
the cost of a system in half," said Lee.For more solar and renewable
energy news [SolarAccess.com]
© COPYRIGHT 2006 West Hawaii Today -Tuesday, September 26, 2006
Use of this site indicates your agreement to the Terms of Service and Privacy
Policy (updated 9/26/2006)