No Level Playing Field for Renewable Energy Companies

by Lisbeth Tanz on November 2, 2009

Andrew Koyaanisqatsi is passionate about solar energy. You could say he was raised on it. Growing up in the 1970’s, his family home used solar energy to heat their water. His environmental awareness, which began at a young age, has shaped his adult life. Seeking to marry his love of the environment with his more spiritual nature, Andrew changed his last name to Koyanisquatsi, a Hopi word meaning “that quality of life that calls for another way of living” in 1984. His next move was to found Solar Energy Solutions, based in Portland, Ore., in 1987.

The mission behind Solar Energy Solutions is simple: to minimize, through renewable energy means, the impact humans have on the environment. But achieving this end isn’t always easy. According to Andrew, “In our industry, we feel the pressure to compete with more traditional forms of energy (gas, electric). Alternative energies, however, aren’t subsidized by the federal government anywhere near the degree of traditional forms of fuel, so the playing field isn’t level.”

That’s why the cost to install a solar energy system can be significantly higher than other available forms of energy. Yet, despite this potential barrier, residential interest in alternative renewable energies is growing. In fact, Solar Energy Solutions has seen a 20 percent increase in business each year for the past four years.

One reason for the increased interest is the technological improvements made in the solar energy industry. Today, panels are sleek and modern in appearance and carry two to three times the energy production per square foot to panels of bygone years. Another reason for the up tick in interest is heightened awareness of the environment and the human impact upon it. Plus, it’s hip to be green.

An example of roof panels for a solar electric system.

An example of roof panels for a residential solar energy system.

If you’re considering “going solar,” you can start with a simple system and build from there. Many opt for solar water heating first to “test the waters.” (Sorry, couldn’t resist.) Two 4 by 8 foot solar panels are mounted on a south- or west-facing part of your roof and an 80-gallon solar preheat water tank is installed near your existing water heater. This solar preheat tank takes the stress and strain off of your existing hot water heater by preheating the water in the solar preheat tank using the solar panels on your sunny roof. This is how your hot water energy bills are reduced.

Instead of your hot water heater cycling through to heat up water that’s basically snow melt from Mt Hood, the water delivered to the hot water heater tank is already preheated and hot… compliments of the Sun! The best part is, the solar water heating system can work with virtually any type of hot water heater – even certain “on-demand” water heaters.

So what’s a system like this going to cost you? It depends upon the complexity of the installation and the type of system you install, but solar water heating systems run from $6,000 to $16,000. Yes, it’s a bit pricey, but if you consider there will be no maintenance required on the system and you get your hot water for free (think lower gas or electric bills), the overall savings becomes more obvious. With the never ending rising of traditional energy costs, and the detrimental effect conventional means of heating hot water has on the environment, the payback is obvious.

Governments and other agencies are also stepping in to help ease the cost of solar systems. In Oregon, three entities incent the installation of solar hot water systems and solar electric systems:

  1. The Energy Trust of Oregon – funded by monies it receives from PGE, Pacific Power and Northwest Natural Gas as well as many smaller utilities.
  2. The Oregon Department of Energy – has been offering tax credits to Oregonians to encourage the adoption of solar energy since 1986.
  3. The Federal Government – is offering an uncapped 30 percent federal income tax credit.

Because of these incentives, the cost of a typical solar water heating system can be drastically reduced! Of course, these incentives aren’t just for solar water heating; they apply to all forms of solar energy. This means that now is the best time to consider “going solar!”

Still not convinced? How about these additional economic benefits?

  • Solar energy is a risk-free and tax-free investment. Putting your money into traditional investments is risky, or at the very least questionable. Then, if it does yield a return, it’s taxed. Solar, on the other hand, is a risk free investment with guaranteed returns because energy prices will increase as much as four times today’s prices over a 10-year period. By going solar, the energy and money you save is tax-free.
  • By installing a solar system, your home will increase in value by the cost of said system. Because of all of the entities encouraging you to go solar with large incentives, you’re only paying a percentage of the total system cost. So right from the start, even before all of the energy savings, you’re doubling your money.
  • Your roof will last longer because it will be protected (with a whole-house installation) as well as be cooler because it will be shaded by the solar panels.
  • Since little to no maintenance is required on solar systems, you have more time to do other important things…like gazing fondly at your low energy bills and your rooftop money-making machine.
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