River Cities Business Journal: Construction

Solar energy getting a second look; Environment isn't only beneficiary of sun's rays

Today's News-Herald

LAKE HAVASU CITY - The sun's rays are always free, but concerns of high initial costs have kept some from going solar in the home or business.

Now, with UniSource announcing the possibility of future electric rate hikes, is the technology worth a serious look?

Kevin Michael of Lake Havasu City was so convinced of solar power's benefits that he had photovoltaic (PV) panels installed on his roof.

Hooked up last September by local electrician AJL Solar, Michael anticipates it will take about 10 years to pay off his investment.

PV panels collect natural energy from the sun and convert it to usable energy without the use of fossil fuels.

“Significant savings” already have been realized on his bill, he explained.

But it is hard to gauge the true benefit compared to last year because family members visited frequently during the holiday season this year and used a lot of energy, Michael said. Nevertheless, he has a more powerful motive for investing in alternative energy.

“The main reason is for the environment,” he said.

For a home in Lake Havasu City with a typical electric bill of $50 and a five-kilowatt direct current system, the pollution reduction is significant in switching to solar, according to Clean Power Research.

One solar home saves

five tons of pollutants

Since burning coal generates most electricity, just that one home going solar can save an estimated annual release of 10,112 pounds of carbon dioxide into the atmosphere.

If money is the bottom line, UniSource Energy Services has started the ball rolling on electric rate hikes that would result in 4.4 percent increases for residential customers and 18.5 percent jumps for small businesses in Mohave County if approved.

No hearing date has been scheduled yet.

For those able to absorb an initial investment in the thousands of dollars, solar looks better each year, according to one industry expert.

Matt Lamont, an architect with Moran Architects in Scottsdale, helps people and businesses that are trying to “go green.”

He said the average initial investment for homeowners is $12,000. It takes most people seven to ten years to pay it off, said Lamont.

“Once it pays for itself, your paying a fraction of what you did before,” said Lamont on utility bill savings.

Government offering

financial incentives

A wide array of financial incentives in Arizona is making the decision of turning to the sun that much easier.

There are personal tax credits, personal deductions, a property tax exemption and several commercial breaks for businesses.

Sales tax is exempt from most solar appliances, according to the Database for State Incentives and Renewable Energy.

As a resident of Alaska, Michael is applying for the federal $2,000 tax credit for solar photovoltaics.

It expires at the end of 2007.

Lamont explained that the mass production of solar equipment - and constantly evolving technology - lower costs each year.

Arizona is one of the states that allow customers to sell excess energy collected back to the utility company.

This can lead to the blissful feeling of watching the household electric meter actually spin backwards.

Although Michael is not generating enough power to send any back to the grid, there is a spot on his bill for it should he eventually get to that point.

In November, the Arizona Corporation Commission approved new alternative energy requirements for electric utility companies like UniSource.

By 2025, 15 percent of the total megawatts sold to customers must come from renewable sources, which include solar, wind, biomass, geothermal and other technologies.

In 2006, the requirement was 1.25 percent, states the ACC.

To help utilities deal with costs associated with the higher standards, the maximum residential surcharge increased from $0.35 to $1.05 for customers using renewable sources, according to ACC.

Allan Lambor, owner of AJL Solar, has been doing solar installations for the past eleven years.

Like many of his customers, he receives satisfaction knowing he is doing something to reduce America's dependence on foreign oil.

“We just can't keep projecting this type of energy without some form of help,” Lambor said.

On the Web at www.dsireusa.org and www.clean-power.com/nyserdaweb