Capturing the Power of the Sun

Thomas Lindberg, Jordon Energy & Food Enterprises
Posted on Wednesday 9th February 2011

Energy efficiency is the easiest and least expensive way to quickly produce energy savings and reduce your home’s carbon footprint. But many homeowners are interested in taking these savings to another level by replacing grid-supplied electricity with their own power. Photovoltaic (PV) solar is one of the best ways to reduce your electricity bill and your carbon footprint by producing your own power.

Using PV, homeowners can reduce their utility bill by as much as 70% or more. In states with net metering programs, homeowners receive a credit on their bill for any excess power they generate, which is often cited as a major factor in residential installations. Residential solar installations can provide a 10-15% return on investment in the first 5 years, one of the few home improvements that can provide immediate savings and value to homeowners. This value will be realized when the house is sold, as studies have shown that every $1 of investment in home energy savings results in $20 in resale value.

The myth about solar power has been that it is too expensive for many homeowners. But according to a recent study by the Lawrence Berkeley National Laboratory, the costs of solar panels has dropped 30% from 1998 to 2009, with costs decreasing from about $11 per watt to $7.50 per watt on average (you can see the report here: http://eetd.lbl.gov/ea/ems/re-pubs.html). Costs have continued to drop in 2010 and are likely to fall further over time.

With the right mix of government incentives and low-interest financing, solar can be very affordable. Regardless of where a homeowner resides, they can claim an income tax credit of 30% of qualified solar installation expenses on their federal taxes, with no maximum. Some installers now offer leasing programs that pay for the installation costs in return for a monthly fee that is offset by electricity savings. Meanwhile, businesses are eligible for a cash grant up to 30% of project costs through a program that will expire at the end of 2011.

Some states like New Jersey, Pennsylvania, and Massachusetts monetize the value of the renewable energy being created with what is known as Solar Renewable Energy Credits, or SRECs. Utilities in those states are required to either produce a certain amount of renewable energy or purchase SRECs on the market. SRECs transform installation of solar from a money-saving to a money-making proposition. For an owner of an average, 10 kW residential PV system, selling SRECs on the market could potentially produce as much as $45,000 in direct income over a 10-year period, in addition to the utility savings.

Thomas Lindberg is Manager of Sales and Operations for Jordan Energy & Food Enterprises, LLC headquartered in New York. Jordon Energy provides advice on solar to homeowners and businesses to help direct them on the right solar product and service, and then connects them with a solar installation company. Working with a range of solar installation companies, Jordan Energy & Food Enterprises, LLC provides services in Pennsylvania, New York, and New Jersey.

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