Turn a toasty deck into a shady oasis with a solar shade structure that does double duty by turning sunlight into electricity. Photo Courtesy Namaste Solar Electric Inc.

Pole-mounted solar panels are one of many options when an unusual roof style or composition (like the sod roof on this Boulder home) make roof-mounted panels impractical.Courtesy cottonwood custom builders inc.

Solar panels are unobtrusive when mounted flush on steep roofs. Photos courtesy BELLA Energy Inc.

The photovoltaic glass windows at Ballard Library in Seattle generate four watts per square foot (compared to 12 watts per square foot for a standard solar panel). Photos courtesy BELLA Energy Inc

The roof at “Sungalow,” a zero-energy home in Louisville, is composed of solar roof tiles. photo courtesy BELLA Energy Inc.

Good Day Sunshine!

Rebates and tax credits make solar electricity a more affordable option for Boulder County homeowners. Here’s how they work..

By Wendy Underhill

There’s a reason why solar panels are sprouting on rooftops (and elsewhere) in Boulder County—and it’s not just because this area is a hotbed for Prius hybrids, Greenpeace supporters and cloth-bag-toting grocery shoppers. Solar electricity finally makes economic sense, at least for homes in Xcel Energy’s service territory, which includes the entire county.

“I’ve seen more change in the industry in the last eight months than I have in the last 18 years,” says Mona Newton of BELLA Energy Inc. in Lafayette. A self-proclaimed “energy geek” with a lengthy green-energy career, Newton says Al Gore’s book and documentary, An Inconvenient Truth, along with the dire global-warming report issued by the Intergovernmental Panel on Climate Change, the war in Iraq, and yes, the Prius, have all contributed to a surging interest in clean energy.

But the main motivator may be the fact that more than 50 percent of a solar system’s cost is now covered by tax credits and rebates. To meet the state-mandated requirement that 20 percent of a utility’s electricity come from renewable sources by 2020, Xcel Energy is encouraging solar electricity by offering hefty rebates to homeowners who install a system. On top of that, the federal government kicks in $2,000 in tax credits.

“The volume has way exceeded what we thought,” says Julia Gauthier, who manages Xcel’s solar-electric rebate program. To wit: more than 1,000 rebate applications have been filed in less than two years. Although the rebates aren’t enough to make solar electricity a gravy train, they are inspirational in an “act now” sort of way. So if you’re ready to act, how much will it cost you?

Ted Hoffman, owner of Yellow Star Energy in Boulder and Fort Collins, says grid-tied systems run anywhere from $20,000 to $100,000, with the larger, more expensive systems often required for homes with air conditioning, hot tubs and heavy electrical usage. A typical installation, a 5,000-watt household system, is likely to cost around $40,000 installed. After the system is up and running, Xcel kicks in $4.50 per watt, which adds up to a savings of $22,500, dropping the installation price on that typical system to $17,500. The $2,000 federal tax credit further drops the cost to $15,500—not exactly chump change, but a whole lot less than $40,000.

An added bonus: most contractors “float” a homeowner the rebate value, collecting it directly from Xcel. (For home-owners who aren’t in Xcel’s territory, check with your electricity provider—a rebate of at least $2 per watt is likely.)

Many people take out a home-equity loan, which should match your utility savings with the new mortgage, to cover installation costs, says Traci Morin, marketing director for Boulder’s Simple Solar Systems. And the interest payments, like those for any mortgage, are tax-deductible. Simple Solar has installed solar-electric systems for 15 years in Colorado. Until recently, most of its installations were off-grid, battery-backed-up systems, but with today’s rebates, half of the company’s new business is grid-tied systems.

Earthy Payback
With or without a loan, the hope is to recoup upfront costs through reduced energy bills. If electricity prices remain steady, that should take 20 years or so. But if they increase (a sure bet), the payback period drops even more. “Solar-electric systems are very simple,” says Blake Jones, co-owner and president of Boulder’s Namaste Solar Electric Inc. “They require virtually no maintenance, they have no moving parts and the panels come with 20- to 25-year warranties,” so they’ll eventually pay their way. Optimistic souls also count on increased home value from their solar investment, which further shrinks the payback time.

But payback isn’t the ultimate goal of most homeowners who install solar- electric systems. “What else do people look at payback on?” Newton says. “Do you ask that about a car or granite countertops? People buy any of these things because they see a benefit—socially, aesthetically or otherwise.” Xcel spokesperson Tom Henley agrees: “Solar-electric systems are not for people who need to save money upfront, because the payback can take as long as 20 years. They’re for customers who want something that’s environmentally friendly.”

Fred Gluck is one of those. BELLA Energy installed a 7,000-watt system at his north Boulder home in 2006. Because Gluck expects to own a standard-sized all-electric car when they’re commercially available, he chose a larger system to handle the load. He’ll also install the electric version when his gas water heater gives out. He may even add electric baseboard heat to his basement.

In the meantime, his electric meter is running backward and he believes that solar electricity is a do-good/feel-good/darned-good economic choice.

Freelance writer Wendy Underhill has been meaning to go solar for a couple of years. After having reported this story, she’s persuaded herself to get it done by year’s end.

© 2007 Brock Publishing Company
homes@brockpub.com