As many Floridians will agree, one of the best parts of living in the Sunshine State is that, well, there is plenty of sunshine. With this in mind, why are Floridians not harnessing this natural energy source to reduce household costs? As a contractor, I need to remind myself that many may be aware of the general benefits of using solar energy resources, but most are unsure of the bottom line: what is it going to cost me and when do I see real savings?
Let’s look at an average four-person household that uses an electric water heater. According to mechanical engineers at the University of Wisconsin’s Solar Energy Laboratory, an electric water heater needs about 6,400 kilowatt hours of electricity per year to heat the water. If the electricity is generated by a typical power plant with 30% efficiency, then the average electric water heater would be responsible for about eight tons of carbon dioxide (CO2) annually. This is double that emitted by a typical modern car. Even a family opting for natural gas or an oil-fired water heater, they will contribute around 2 tons of CO2 emissions each year to heat their water. What this means to you is $100-$200 paid to your electric company every month.
Over the past few years, the legislature has implemented incentive programs to encourage businesses and homeowners to install solar systems. As part of the 2006 Florida Energy Act, individuals and businesses that purchase solar photovoltaic systems are eligible for $4/watt rebate, capped at $20,000 for homes and $100,000 for businesses. (see www.solarpowerrocks.com/florida) If you choose to apply for this program, this could mean instant refund to you! Below is a portion of the rebates being offered through June 30, 2010. For more detailed information, including the requisite equipment requirements visit www.myfloridaclimate.com
|
Rebate Amounts
|
Residential
|
Commercial
|
|
Solar Photovoltaic System
|
$20,000.00
|
$100,000.00
|
|
Solar Thermal System
|
$500.00
|
$5,000.00
|
|
Solar Thermal Pool Heater
|
$100.00 |
n/a |
According to the Environmental and Energy Study Institute (EESI), residential solar water heater systems cost between $1,500 and $3,500, compared to $150 to $450 for electric and gas heaters. This means that solar water heaters can pay for themselves within 4 to 8 years. If that seems like a long time, think about this—solar water heaters last between 15 and 40 years (the same as any conventional systems). You are looking at a small investment to have free hot water for years to come. Don’t forget that you have a 30% Federal Tax rebate for the system’s cost!
In an article of the March 2010 issue of Kiplinger’s, there is a story about a couple in Santa Fe, New Mexico that installed a 2-kilowatt system with nine panels. The system amounted to $18,000, but they received their federal tax credit and a 10% credit from the state. Their monthly electric bill is zero and the electric company sends them a check for the energy they send back to their power grid. The couple stated, “we get a check for about $46 a month. We expect our system to pay for itself in about nine years-less if the company raises its rates.” Wouldn’t it be nice for the electric company to owe YOU?
Contact BRC Builders today for more information regarding installation of solar systems. We are licensed solar contractors and can assist in answering any questions you may have. If you would like to read more about solar power and federal and state rebates, visit these websites:
www.eesi.org
www.fsec.ucf.edu/en/
www.solarpowerrocks.com/florida