Going solar - Photovoltaics: A Bright Idea

By Kerrill And Don Kephart

Douglas Bath, vice president and co-owner of Pro Vision Solar, said that homeowners can apply 30 percent of the cost of a photovoltaic system toward their federal income tax liability. "It is as good as money," he said.   In Hawaiian mythology, the demigod Maui lassos the sun to slow its passage across the sky, allowing more time for people to accomplish their daily labors. A thousand years later, panels of silicon photodiodes harness the sun's energy to do their work. Photovoltaic cells convert sunlight directly into electricity with no pollution and no moving parts. With gasolineapproaching $5 per gallon last summer and locally produced electricity at 44 cents per kilowatt hour, that sounds almost too good to be true. So, why doesn't solar energy play a bigger role in Hawaii? One obstacle is the formidable capital outlay. Prices vary, but a typical 4-kilowatt residential installation could cost up to $40,000. After an exhaustive analysis of installing solar panels on his roof in 2006, Larry Bryan, of Waikoloa, decided against going ahead with the project. "At that time, the return on our investment would have amounted to only 2 to 3 percent per year," he said. Tax incentives, however, now make it more attractive to homeowners, and net metering allows them to credit the power produced by photovoltaic systems against their monthly electric bills. Douglas Bath, vice president and co-owner of ProVision Solar, said that homeowners can apply 30 percent of the cost of a photovoltaic system toward their federal income tax liability. "It is as good as money," he said. Residents recoup an additional 35 percent of the cost, up to $5,000 per year, toward their state income tax. For that reason, Bath suggested that owners may benefit from installing their system in stages over several years to earn more state credits or take advantage of future incentives as they develop. Even if purchased all at once, the hypothetical $40,000 system is brought down to a $23,000 net cost. To promote alternative energy supplies, the state Public Utility Commission requires power companies, such as the Hawaii Electric Light Co., to credit small producers at the retail rate. HELCO provides a special electric meter, which measures both incoming and outgoing electricity. The consumer pays the difference between the two, hence the term "net metering." HELCO, in effect, acts as the storage batteries. Even with the minimum $20-per-month customer charge, this s a better deal for the consumer than for utility companies. HELCO must still maintain the same power grid and generating capacity while receiving less revenue. The PUC therefore capped the number of net-metering customers at 1 percent of the total residents, recently raised to 3 percent. This should allow a couple more years' worth of net-metering installations at the present rate." Technical concerns also underlie the 3 percent cap. Laura Rogers, an engineer in HELCO's Kona planning division, said, "What is not obvious to most people is that operating a power grid on an island is a very difficult business." Unlike the mainland, Hawaii is not buffered by a large interstate power grid. HELCO operators in Hilo must actively balance the electrical output against demand literally moment-by-moment to keep the voltage steady and reliable for customers. Residents from the 1990s and earlier may remember the rolling brownouts, damaged electronics and lost computer files that formerly plagued HELCO customers. Net-metering customers complicate their task by coming on- and off-line erratically with no central control. Setting up a grid-tie photovoltaic system involves more than just buying some panels and bolting them onto the roof. HECO's net-metering web page guides the potential residential power producer through all the necessary steps, but local contractors in effect offer turnkey systems to the consumer. Installation can be surprisingly quick. Robert Menacho, of Kailua-Kona, said that his took only five hours. Big Island photovoltaic owners generally seem happy with the results. Mel Malinowski, of Mauna Lani Point, designed solarfriendly homes in California before moving here. He said that his solar system returns 9 percent per year on his initial investment, which is much better than he could earn from a savings account. Solar water heaters offer an even better rate of return at 15 to 20 percent annually. Malinowski also liked the notion of being able to create his own electricity. Frank Rinciari, of Waikoloa, put up 24 panels a year ago, which he said averages about 22 kilowatt-hours per day. Because he has a koi pond, a waterfall, two refrigerators and a wine cooler, he plans to expand his system by another 50 percent. Installation in stages, as Rinciari is doing, allows owners to fine-tune the size of their systems. HELCO allows net-metering customers to carry a balance from one month to the next, but there is little incentive to produce more electricity than they use in a year. Prospective photovoltaic owners should examine their electric bills to determine the necessary capacity. For example, if a family uses an average of 20 kilowatthours of electricity per day, 5 hours of daily peak sunlight would dictate 4 kilowatts of panels. Locations differ, however: Kawaihae, for example, averages more sunlight than upper Kaloko. The state Department of Business Economic Development and Tourism publishes detailed solar incidence maps for each island. Site variations notwithstanding, most West Hawaii residents have more than enough sunlight to power a photovoltaic system. An advocate of recycling, Rinciari said he would like to see more people using photovoltaic systems and solar water heaters. Menacho agreed. "We get so much sun here in Hawaii it seems almost a sin not to use it," Menacho said. Perhaps residents cannot lasso the sun, but they can harness its energy and reduce the flow of petroleum while improving personal cash flow. To see this article in its entirety including photographs, go to:http://www.westhawaiitoday.com/articles/2009/02/25/features/features01.prt More info http://www.heco.com, put "net metering" into search window Online financial calculator: http://www.sunpowercorp.com/For-Homes/How-To-Buy/Solar-Calculator.aspx Solar incidence map: http://hawaii.gov/dbedt/info/energy/publications/solardata/ For more solar and renewable energy news [SolarAccess.com]