A good place to begin when you start any project is to start with the question…what is my end goal?
Let’s say you have one of Grandma’s old dressers that you’re going to refinish. Since there are a variety of things you can do with it, or places in your house where it would fit, your finish may vary accordingly. Is it going, for example, in your bedroom? If so, what kinds of wood are in your bedroom furniture? Is all of your furniture the same kind of wood? Does it have a mahogany stain, or an oak stain? Or…is everything painted? Where will the dresser sit? Do you want it to blend in…or stand out?
When you’re thinking about building your own solar energy system, you’ll want to review similar considerations, like:
* What’s your locale? Beginning with this question can help you determine if solar is a viable option for you. If you live in a part of the country where there’s significant cloud cover a lot of the time, and/or extreme temperature variations, you may decide solar isn’t the right plan. To find the best states for solar, and other basic facts on how to determine if you have a viable solar site, visit http://www.motherearthnews.com. Both active and passive solar energy power systems require sunlight…although not as much as some people think. If there’s a solar expert in your area, get an assessment of both active and passive systems, and what available options might work in your setting.
* What will your solar system provide energy for…a home or business? A good review of both state and federal incentives and rebates is in order. Under the Emergency Economic Stabilization Act of 2008, there’s a 30% investment tax credit, good through December 31, 2016, for homeowners who make a solar energy investment. And, with the exception of solar water heaters (which have a $2,000 cap), there is no maximum credit amount. In addition, there’s a 30% ITC through December 31, 2016 for commercial property…plus a building allowance and permanent accelerated depreciation allowance. Add to that any utility, or state incentives, plus rebates and net metering (credit for excess electricity generated by your system sent back to the utility for use both others).
* Do you plan to build an entire solar system to meet all of your heating, cooling and lighting needs, or something much less? This will require some looking at both your commitment to the environment…your current budget…and a good cost/benefit analysis. If you really want to have a full solar system, first – determine the net cost of installation. If it’s an active solar system installation, you’ll have the cost of the installed solar panels, plus any operating equipment required (batteries, inverters and wires…).
* Don’t stop there. Deduct any federate, state, city, and utility rebates. (and if it’s commercial, in addition to the accelerated depreciation deduction there are undoubtedly other city and state rebates or credits). Add any solar equity property increases ($15-$20 for every dollar saved in energy costs) and then you’ll begin to see the picture of your net cost. When you’ve got all of those figures, it’s a lot easier to get a loan. And…you may just qualify for a government loan. Certainly worth asking, wouldn’t you say? Now, if your budget just isn’t going to allow you to do a lot, that’s OK, too.
* Just adding a solar hot water heater can significantly reduce your power bill, and they’re getting much more affordable. If you save $50 a month in your utility bill, put that money in a separate account, add the ITC benefit from your income tax, and save toward a full system. Also, check to see if you can get assistance for any part of a solar energy system through state incentives, like PACE (Property Assessed Clean Energy), and SREC (Solar Renewable Energy Credit), that are designed to make solar energy more affordable. They are available in some states, but not all.
* Are you building something new…or replacing something old? A solar energy system going into new construction is generally more cost effective than replacing an existing system. But, if your existing system has to be replaced anyway, doing a cost/benefit analysis for a solar energy system if definitely worthwhile.
* Are you considering passive and active solar, or passive or active only? A definite consideration for new construction, but also something to keep in mind for remodeling. For either, however, remember to take advantage of any possible passive solar opportunities, especially for south-facing window installations with combined thermal mass. Right now, passive solar construction costs at $5 to $10 more per square foot, and an active solar system is definitely higher than a conventional system. Remember, though, you’re not going to be paying high utility bills, so if you’re into long term investment, you’ll definitely come out ahead. For a quick, “down and dirty” ROI calculation, look at average utility bills for similar-sized houses in your area, calculate the cost differential between solar and conventional installation, and determine your payback period. Remember, though, once the system’s paid for, your energy is free. And…there’s also that maintenance cost you won’t have.
* Are you going to be the one doing the work? Or will it be someone else? Before you decide professional installation is too expensive and decide to do it on your own, know your building codes, permit requirements, and what you need to claim any tax credits, incentives and rebates for solar installation. For the good do-it-yourselfer, the savings you have with self-installation may be even more than what you could get back in incentives. Just in case it isn’t though, make sure you put everything through the cost/benefit analysis first.
More questions will arise for you as you proceed down this path. Starting out with some questions that can help you determine what you want the end game to be, though, will help you make better decisions about how to get there. To figure out what’s right for you, go on a fact-finding mission first. Here’s a fact you can start with and hold on to all through your process…solar energy is renewable. It’s also great for weight reduction…that’s to say it will decrease your weight on Earth by decreasing your carbon footprint.
Want to find out more solar energy facts, then visit Timothy Peters’s site at: www.HomeSolarPowerExplained.com
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