Shifting Solutions

There are many people that are dedicated to the idea of going green

and waning themselves from their dependence on the power companies. But even these people can sometimes balk at the initial costs of installing green energy supplements. And while there are a lot of upfront costs, there is no denying the simple math that these home solar panels can end up saving you money in the long run.

All you have to do is discuss with your installer how much you look to save every month on your energy bill by installing these solar panels. Then start doing some figuring and calculating. Although you’re essentially purchasing all that energy upfront, while others are paying it off in installments to the energy company, you have to consider that the cost of energy is only going to rise while you bought in at a fixed price. And even if it takes you years to break even, you’ll end up spending the same amount of money but having used a renewable, cleaner source of energy while you did it.

Today’s costs for an average home solar system, could still take more than six years to recoup.

According to the Energy Efficiency and Renewable Energy division of the U.S. Department of Energy, $30,000, or even $5,400, after all rebates, which may seem like a high cost to you, is still less than 1% of what it did cost in the 1970s.

According to Broadpoint.AmTech, a technology research firm, today’s costs for an average home solar system, could still take more than six years to recoup.

Assuming an average cost of $28,000 to equip a home with home solar energy and an estimated tax rebate of $10,000. And also assume you’re paying 17 cents per kilowatt hour for conventional electricity, which you’ll still need to pay for from time to time and add in approximately six full hours of sunshine a day (this may vary depending on your location), it would take about six and a half years for your investment to pay off. If you change the price of electricity to 11 cents per kilowatt hour, it’ll take almost 10 years based on Broadpoint’s equation.

However, If you can afford to and have that kind of cash on hand, using home solar panels could actually make potential future electricity price increases less of a concern.

Consider this though, if your at all handy around the home, buying a $49.95 How to Make soilar Panels Kit which shows you precisely with easy to follow videos and complete instructions on how to build a system for yourself and all for under $200.00! It even shows you where to find the materials. This option would elimate most of the six year wait for the return on your investment and you could start saving money in the same year!

Note that savings can vary

The location of your home energy system has a lot to do with how much you actually save in electricity, and how energy efficient your home is and what other features you have improving your home’s energy efficiency.

The more energy efficient building you have, the better your renewable energy system will work, so before you install your system, adding insulation, energy efficient lighting, appliances and windows will go far to reduce your home’s electricity use

Net Measuring a Local Benefit
Some utility companies use net metering, a measurement system, which may add to your savings.

As an example, in Hawaii and New York, where retail electric rates are high, this is very beneficial, and utility companies also benefit as the solar energy you’d provide would likely come during periods of peak demand for electricity, during the day.

I Hope this has been helpful, and good luck on your decision!

Returns that can be gained over time

Are you aware that Installing home solar panels, or photovoltaic cells on your home , is a terrific way to reduce harmful pollution and reduce your electric bills, but only if you have the money to spend upfront.

An average family of four, residing in a single family home, can budget for an investment of about $30,000. Of course that’s if you hire the whole job out to a solar company.

Like any investment, there are returns that can be gained over time. In this case they include tax rebates in addition to future savings on utility bills.

But before you find an installer and start making plans for the money you’ll save by going solar, you may want to consider how long it will take for this investment to pay off against your initial costs using a traditional solar firm.

Once you do, you may just want to build them yourself, if your just a little bit handy around the house, there are home solar energy kits available with easy to follow instructions that guides you through the entire process including showing you where to find the materials to build the whole system for under $200.00!

Start by checking the tax incentives
To encourage home owners to use home solar energy and other renewable sources of power, the IRS offers an energy tax credit in 2009 for 30% of the cost of qualified alternative energy equipment. Also each state has their own form of state income tax credits for the same purpose, a sales tax exemption on your purchase and a property tax exemption.

IN New York state, as an example and assuming a $32,000 initial cost, a 30% federal rebate, a maximum state rebate of $5,000 and a $12,000 rebate through the New York State Energy Research and Development Authority, the overall cost is just $5,400, notes Scott Rakowski, New York State regional manager at Alteris Renewable.

So If your not handy around the house and you find that to build your own solar panels intimidates you, then the $ 5,400. net price tag seems mighty good!

Check out what the incentives are in your state for installing solar cells in your home, go to the Database of State Incentives for Renewables & Efficiency at DSIREUSA.org.

Tune in next week and we will crunch some numbers!

Loan programs that stimulate

The renewable market will boom when cost efficiency attains parity with other competing energy sources. The following trends are a few examples by which the renewables market is being helped to attain critical mass so that it becomes competitive enough versus fossil fuels:

Other than market forces, the renewable energy systems industry often needs government sponsorship to help generate enough momentum in the market. Many countries and states have implemented incentives – like government tax subsidies, partial copayment schemes and various rebates over purchase of renewables – to encourage consumers to shift to renewable energy sources. Government grants fund for research in renewable technology to make the production cheaper and generation more efficient.

Development of loan programs that stimulate renewable favoring market forces with attractive return rates, buffer initial deployment costs and entice consumers to consider and purchase renewable technology. A famous example is the solar loan program sponsored by UNEP helping 100,000 people finance solar power systems in India. Success in India’s solar program has led to similar projects in other parts of developing world like Tunisia, Morocco, Indonesia and Mexico.

Imposition of fossil fuel consumption and carbon taxes, and channel the revenue earned towards renewable energy development.

Also oil peak and world petroleum crisis and inflation are helping to promote renewables.

Many think-tanks are warning that the world needs an urgency driven concerted effort to create a competitive renewable energy infrastructure and market. The developed world can make more research investments to find better cost efficient technologies, and manufacturing could be transferred to developing countries in order to use low labor costs. The renewable energy market could increase fast enough to replace and initiate the decline of fossil fuel dominance and the world could then avert the looming climate and peak oil crises.

Most importantly, renewables is gaining credence among private investors as having the potential to grow into the next big industry. Many companies and venture capitalists are investing in photovoltaic development and manufacturing. This trend is particularly visible in Silicon valley, California, Europe, Japan.

To Further understand the process of how to make solar panels we need to understand what solar panels are.

Basically, home solar panels collect heat energy from the sun. This is called solar thermal energy. The following is a very simple example of a solar panel. A closed box with a top made of a transparent material such as glass or plastic.

As the sun shines through the glass, it heats up the inside of the box. Just like the sun heats up the inside of a car when it sits in the sun. For best results the inside of the box can be painted black so that it absorbs more heat. Once the heat is collected inside the box, it can then be used to heat air or water.

A solar thermal energy system to heat air is not complex technology . A clear or transparent top is fitted to a box which has an inlet pipe for cool air. A fan can be used to push that cool air into the box through the inlet pipe. Once the cool air is inside the box it is then warmed by the heat energy from the sun rays. Once more cool air enters the box the warmed air is forced through the outlet pipe at the other end. Now the warm air can be used to heat your home. Larger systems use a solar panel on the roof of a house to heat a whole room. That warm air is then blown through vents to heat the whole house.

Solar panel systems that are designed to heat water work in a similar manner as the ones designed to heat air. The following is an example showing the pipe carrying cool water that runs through the inside of the box.

As the suns rays heat the air inside the box, the hot air is then transferred to the pipes in turn heating the water. When the cool water is pumped into the inlet pipe the warm water is forced out of the outlet pipe. That hot water can now be piped through out the home to, just like the hot water heater currently used.

The pictures above are only a very simple depiction of the basic concepts. In practice, solar water and air heaters can be more complex but hyis should give you the idea.

The terms “Solar Panel” and “Photovoltaic Panel” describe two different devices. We use the terms as follows:

A Solar Panel collects and utilizes heat energy from the sun.

A Photovoltaic Panel transforms light energy into electrical energy.