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Considering Converting Your Home to Solar?

By
Real Estate Agent with WealthPoint Realty 326760

Okay Peachtree City, Georgia with the planet in crisis mode, I've also taken the stance to continue to go green.  My garage is now a stable of economical Hondas. My house has been basically rid of toxins with the use of Melaleuca products. So what is the next step?  Well, I may be like many of you considering solar energy.  I know just the thought makes people cringe. But solar design has come a long way.  Solar technology is constantly advancing and creating new ways to capture this renewable energy. The truth be told, solar energy is a consideration for every home no matter where you live.

But for me and I'm sure others are glad i raised my hand, the question is really what kind of solar
is right for me?

That's the million dollar question and to be honest there is a tremendous amount of focus on
renewable energy. All these discussions about energy consumption is also tied into rising costs
and the increasing demand. 

So let's take a look at the ways solar energy can improve your home's efficiency and save you money.
The simplest is through passive solar design. This is an old principle that can be applied to any
home. The most energy-efficient buildings use natural patterns to heat and cool and that's the idea
behind passive solar. The sun should have the opportunity to come in when it's cold and be kept out
when its hot outside.Also keep in mind that strategic passive solar design can help utilize natural daylighting. Not only will this lower your electricity bill, it's also been proven to create more productive and enjoyable interior spaces. Once you've considered the natural uses of solar energy, there are two types of active solar energy systems that can be applied.  They are solar photovoltaic (PV) and solar thermal.

The advantage of PV systems is that they convert sunlight directly into electricity. Systems can be stand alone or be connected to the power grid. Connected systems allow owners to draw backup power when needed and sell extra electricity back to the grid. Homeowners can evaluate upfront costs against expected return to determine how a photovoltaic system will pay off.

For example, say your home in Peachtree City uses 8,000 kWh/year of electricity and you are considering a grid-connected solar PV system. You decide on an array that will produce 14,000 kWh/year of electricity. The system requires 1024 square feet (32' x 32') of photovoltaics. The solar PV array will cost $72,600 and electricity costs $0.20/kWh.

However, you offset $1,600 per year by creating your own electricity. You also sell $1,200 worth of
electricity back to the grid each year. Your yearly payback is $2,800. You've paid $72,600 in upfront
costs for the solar PV system, so what's the return? You've prepaid your electric bill for 25 years!
($72,600 divided by $2,800 = 25.93 years) and decreased your home's CO2 emissions to an eighth
of the typical home is the U.S. So, after about 25 years, the system begins paying you, or the
next owner, $1200 per year.  Not bad, right?

Okay I know what you are thinking, 25 years is a long,long time.  Alright, picture that memorable
day you pay off the mortgage on your home. What if your home also had no more overhead costs for
heating, cooling and electricity? I would think that you just gave a hefty increase to the your retirement savings or the resale value of the home. If the solar craze of the 1970s had continued in its momentum, today's buyers would be asking how much the house pays per year instead of its operational costs.

By the way, there are incentives that can help offset some of the upfront costs. The federal government
just added some additional tax credits for energy efficient home improvements in that 810 Billion
dollar bailout bill.  I'm also checking to see if state, county or city offers some additional incentives.

The key to successful implemention of renewable energy strategies is to research the options
and develop long term goals. Consult with a professional.  At any rate you are contributing to saving our planet!

Matt Peters
RE/MAX Premiere - Albuquerque, NM
(New Mexico Broker)

Back in the late 70s and early 80s I was very active with solar energy. I built some passive solar adobe homes, did quite a few solar additions and remodels, worked with the State renewable energy programs, and worked in both sales and product development with a solar thermal manufacturing company.

Your pay-back analysis has some problems.  You ignore repair and maintenance costs and the time value of money. Connections corrode.  A dollar today is worth more than a dollar off in the future.  On the other side, tax credits and other incentives are really important in making the economics work.

The lower tech thermal systems have a better shot at paying for themselves.  Solar water heating can displace higher quality energy (electricity or even gas) with low-tech thermal.  

Start with a productive thermal system. Active water heating and passive solar space heating. Incorporate design that will reduce electric needs. Skylights can reduce light loads. Use efficient light sources and low consumption high efficiency refrigeration and air conditioning.  Reducing the electric load requirements can help bring the PV power system to a more workable size and cost.

Matt Peters in Albuquerque, NM

 

Jan 04, 2009 01:20 PM
Greg Saunders
WealthPoint Realty - Atlanta, GA

Matt...thanks for the assessment.  Definitely points to consider moving forward. 

Jan 04, 2009 11:19 PM