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.
For more solar and renewable energy news [SolarAccess.com]
