With Demand Increasing, Utility Starts to Deal

In this May 5, 2009 photo, Len Bicknell stands next to his solar energy operation panel in his...

In this May 5, 2009 photo, Len Bicknell stands next to his solar energy operation panel in his Marshfield, Mass., home's garage. Bicknell's home is fitted with both thermal panels for hot water production and electric solar panels for energy production. (AP Photo/Stephan Savoia)

(AP)

Len Bicknell angled his new garage toward the sun two decades ago, making room for the solar panels he planned to slap on top. He couldn't afford the expensive panels until several months ago, however, when the company with seemingly the most to gain from big electric bills stepped in to help pay for them.

NStar, like other utilities, is confronting soaring demand for energy and has launched an aggressive effort in one little seaside town to find ways to ease that pressure, doling out money for solar panels, "smart" thermostats and energy audits to cut power usage by 8 percent during peak hours.

If it fails, it may be forced to spend millions upgrading substations.

As part of its two-year project, NStar helps residents of Marshfield purchase solar panels, offers free energy audits and installs "smart" thermostats that the utility can remotely control and rein in air conditioner use.

For Bicknell, who couldn't afford the $30,000 solar system, participation was a no-brainer. NStar's program and tax credits helped knock down the cost to about $10,000. Since he installed them in September, they've pushed his NStar meter backward at times, generating more power than NStar is supplying.

It will take years for Bicknell to recoup his investment, but he figures rising fuel prices will only bring that break-even day here faster.

"At some point, people say, 'I can make an investment that can cut (my electric bill) in half,'" Bicknell said. "Why wouldn't people do it?"

So far, NStar has completed more than 800 energy audits and placed solar panels at five commercial buildings and 27 homes. That's four times more than any other community in NStar's service area in the eastern half of Massachusetts in 2008, despite Marshfield's small size.

NStar has also installed "smart" thermostats for free in 240 homes and 80 businesses.

Other utility companies have cut deals with business owners who let them put solar panels on their roofs. Utilities have also signed agreements with residents who voluntarily allow them to regulate air conditioners during certain hours of the day.