Heating Up: State Subsidy Program Spurs Interest in Solar Power for Homes.
By Scott Kraus
The Morning Call
August 17, 2008

By offering to cut installation costs by a third, the alternative energy subsidy signed into law in July by Gov. Ed Rendell has already boosted interest in residential solar power.

Tim Hollinger, sales manager for Sun Lion Energy Systems of Gordonville, Lancaster County, said he's been swamped with homeowners asking about the solar energy rebate.

Similar initiatives in other states have dramatically increased home solar panel installation, said Monique Hanis, spokeswoman for the Solar Energy Industries Association, which now sees Pennsylvania as an emerging market.

State officials have set up an e-mail notification list to distribute program details as soon as they are finalized in two to three months, said Charlie Young, spokesman for the Department of Environmental Protection.

In the meantime, there are some things consumers should consider before deciding to go solar, say experts.

To be a prime candidate for solar power, you need a roof with day-long sun exposure, according to the U.S. Department of Energy. For optimum energy production, the panels should face south.

You also need a way to raise the $25,000 to $50,000 it takes to install the panels, and the patience to wait a while until you break even.

"With the photovoltaic systems, you are really talking about break-even close to the 10-year mark," Hanis said.

Homeowners can accelerate the payback by signing up to earn renewable energy credits that can be sold through PJM Energy Information Systems, which manages the power grid, Hollinger said.

In Bucks County, Paul Stepanoff said he saves about 25-30 percent on his electric bills with solar panels installed at his Haycock Township home. But he said the rewards of adding solar energy are more than financial.

"Now when the power goes out, I have a fully functional house," said Stepanoff, whose system includes a battery backup that allows him to store power. "How do you put a value on that?"

Stepanoff said he also enjoys cutting back on carbon emissions.

The state’s new fund makes $100 million available to help pay up to 35 percent of the costs for installation of solar energy in the form of rebates.

If Maryland's experience is any example, Pennsylvania should get ready to start doling out the cash.

When that state upped its reimbursement cap to $10,000 in July, homeowners rushed to cash in, said Brandon Farris, policy director with the Maryland Energy Administration.

"We received enough applications on the first day to fully expend the funds," Farris said. The program now has 60 people on a waiting list.

Young said details like reimbursement caps haven't been worked out for Pennsylvania's program.

The owners of Heat Shed, a Nockamixon Township, Bucks County solar panel installer, said they have been getting plenty of questions about the state rebates.

"There's just nothing much we can tell them," said owner Catherine Neil. The typical cost of a residential 5- kilowatt array of solar panels is about $35,000, Neil said. So a 35 percent subsidy from the state would take a nice chunk out of homeowners' costs.

"Business was already picking up. Now we just assume it will explode, with the grants still out there," she said.

In the meantime, consumers can sign up for the e-mail list to make ensure they are among the first to know, he said. Nearly 500 have already done so, with minimal publicity.


© 2006 Heat Shed, Inc.
 
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