Solar power systems arrive in more stores
— -- As afternoon shadows stretched across the black panels in his backyard, Gary Simons read the digital readout from his solar-power system. He earned more than nine kilowatt hours of electricity, despite the short winter day and the fact that he installed the system on the ground behind his house.
"I'm excited to see what it says in the summer," he said of the new power system at his Phoenix home.
Utility officials and energy regulators are hoping that more people choose to power their homes like Simons to lessen the burden on the electricity grid and reliance on fossil fuels. Now they're getting a big boost from a major oil company and major retailer.
A joint program has offered residential solar-power systems made by British petroleum company BP at The Home Depot stores in California, New Jersey and Long Island, New York since 2004. The program recently expanded to Home Depot stores in other areas of the country where incentives have made solar electric power more accessible and affordable, like Denver and Boulder, Colorado; Austin, Texas and Arizona.
"This brings solar front and center," said Arizona Corporation Commissioner Kris Mayes, one of four regulators who voted in 2006 to increase the amount of electricity that state utilities need to generate from solar and other renewable sources. "Hopefully, this encourages people to install solar as they are building or remodeling."
The BP Solar Home Solutions program allows customers visiting Home Depot stores to make appointments with contractors in the area who install solar-power systems. The contractors evaluate the home's energy needs and exposure to the sun, and make recommendations regarding how big of a system to install. Store officials hope to make the process as convenient as redesigning a kitchen or installing new carpet.
Simons' system retailed for $45,000, although his out-of-pocket costs were about $25,000 after generous utility rebates and tax credits. He said he was sold on the system when he learned about the incentives.
"It was a combination of the environment and money-saving," Simons said. "One of the interesting things on the readout panel is the amount of carbon you save from going into the atmosphere (by not burning fossil fuels). It is pretty amazing."
Another justification was financial security. Simons will pay off his 30-year loan for the solar system ahead of time by using the energy-bill savings to pay down the debt, and then looks forward to not having much of an energy bill at all.
Home Depot can help with financing, said Dustin Hamby, a partner in Green Fuel, one of the installation companies used by The Home Depot.
"We run into customers who don't have the equity in their homes and we don't offer an unsecured line of credit," Hamby said. "We take those customers and say, 'let's have you purchase this through Home Depot and we can get you an unsecured line of credit (through Home Depot financing).'
"We're trying to get people to look at as a financial benefit rather than an environmental benefit."
Students at Arizona State University's School of Global Management and Leadership spent the past semester penciling out the payback and savings of residential solar-power systems, coincidentally using data provided by Green Fuel for BP panels. The panels are guaranteed for 25 years.
Their analysis reveals it would take 18 years for a 3-kilowatt system that covers about one-third of an average home's electrical needs to pay for itself, but the remaining seven years under warranty would provide $9,000 in utility-bill savings.
The research was based on the assumption that electricity rates would continue to rise. If rates rise more than their 3.78% annual increase, or solar-power incentives improve, solar-power savings could increase.