Auch’s Skystream 3.7 wind turbine knocks 40 percent to 50 percent off his monthly electric bill, a benefit he’s developing into a business opportunity as eastern South Dakota’s new Southwest Windpower dealer.
The former contractor hopes to persuade fellow residents to invest $12,000 to $18,000 in a residential wind turbine with the promise that it will eventually pay for itself.
And for the first time, Auch and his industry colleagues will have a silent partner – the U.S. government.
The $700 billion federal bailout of the nation’s financial sector established a residential wind investment tax credit of $1,000 per kilowatt of capacity, providing up to $4,000 in assistance.
“ That speeds up the payback,” Auch said.
Residential wind energy systems – turbines producing up to 10 kilowatts of power – will never encompass a large chunk of the national energy picture, said Mike Bergey, president and co-founder of Norman, OK-based Bergey Windpower Co.
But for homeowners, ranchers and small business owners, they provide a means to affordably generate their own clean power, Bergey said.
“ They are pieces of the portfolio that we need to put together,” he said.
Ron Stimmel, the American Wind Energy Association’s small wind advocate, said about 1,500 residential wind turbines were sold in the U.S. last year, and the market has been growing at an annual rate of 14 percent to 25 percent during the past decade.
He expects at least 50 percent growth in 2009 as the industry continues to mature by developing more reliable designs and attracting more outside investment.
The Washington-based organization had lobbied Congress for a straight 30-percent federal tax credit instead of one capped at $4,000, but Stimmel said the new incentive is a start.
“ If we can get that expanded, we could see the industry doubled in a short period of time,” he said.
Stimmel said he expects strong growth in states with their own incentives, such as Oregon, California, Arizona, New York and New Jersey, as buyers can often benefit from both categories of credits.
Auch’s 2.4 kilowatt turbine on his acreage just outside Lesterville begins producing power in an 8 mph breeze and achieves full output in 29 mph winds.
The whir in a recent winter day’s 15 mph winds was audible but not distracting, and the wind association estimates that most modern residential turbines reach decibel levels no noisier than an average refrigerator.
The turbine continually sends performance stats to Auch’s laptop computer through a wireless connection, and a small inverter housed in the device converts the electricity from direct to alternating current so it can mesh with the power grid. A special two-way meter provided by Auch’s energy co-op measures both the power he uses and the excess he produces.
Price always has been the small wind industry’s primary barrier, as a system with enough juice to power an entire home typically costs about $30,000, according to the association.
Wider use will help bring those costs down, Bergey said.
“ Small wind systems are expensive today because we don’t produce very many of them,” he said. “They’re not in mass production at all.”
Another obstacle is a lack of standardized regulations, as height limits and required property line offsets are dictated by local zoning laws.
Bergey said residents looking to erect wind turbines often run into a ubiquitous 35-foot height restriction – an arbitrary number that began showing up in East Coast zoning ordinances a century ago.
At the time, fire pumps could push water just 35 feet in the air, and municipalities didn’t want to build livable structures at heights that couldn’t be reached by firefighters. The 35-foot number has since been copied into local ordinances across the country in droves, leaving residents to fight for variances or special use permits to get the blades moving, Bergey said.
Ernie Pritchard, co-owner of Ontario, NY-based Sustainable Energy Solutions, Inc., said his company has installed nearly two dozen Bergey wind turbines in New York state over the past four years, and in nearly every case the resident has had to apply for a waiver to surpass a local 35-foot height restriction.
Pritchard said efforts to educate a local board’s members about wind turbines can be time consuming, typically taking anywhere from three to 12 months.
“ But we have batted a thousand when trying to get a variance from these laws,” Pritchard said.
California land developer Chuck Braswell is convinced it’s easier to get a subdivision permitted than a wind tower.
Two years ago, Braswell applied to put up a 10 kilowatt turbine reaching 93 feet in the air on his 60 acre property in Riverside County, CA. Braswell restores vintage and antique cars, and all that grinding, welding and painting leaves him with monthly electric bills as high as $600.
But his venture ran into opposition from residents of a nearby subdivision who argued that a turbine would impede their view of the mountains.
“ They felt they had purchased the right to any view from their property to any unlimited, unspecified distance,” Braswell said. “And they didn’t want this energy generation machine in their view.”
The permitting was expected to run between $3,500 and $4,000, but after $10,000 in fees, multiple public hearings and numerous back-and-forths on landscaping issues, Braswell’s $34,000 worth of wind equipment continues to sit idle in his yard.
Braswell said he’s now being told that the county is assessing another $4,000 in fees. He’s requested a hearing with the director, “and that’s where it sits now.”
Stimmel said six states have pre-emption of home rule statutes that say if the local jurisdiction doesn’t have a small wind zoning code on the books, it must follow the state’s prescribed rules.
Industry advocates are also pushing for wider use of net metering, in which power-producing residents can bank excess electricity and get a one-to-one payback for any power they generate but don’t consume.
More than 40 states have net metering laws, but not all utilities interpret the laws the same way.
“ Whether or not the input/output is averaged over a year or over a month can make a huge difference, just because of the seasonal variations in wind,” Stimmel said.
Bergey sees net metering policy as a secondary issue to the real reason people are drawn to home wind turbines: energy independence.
]]>Do you ever watch the sun hitting your house, or the feel the wind rushing at your windows, and wonder just how hard it would be to harness all that energy?
The timing has never been better for average consumers to start using alternative energy in their own homes. The technology is better than ever, more and more contractors specialize in installing green energy generators in homes and state and federal money will often help you pay for it.
The key is to find out what type of green energy is right for you.
“When you look at alternative energy choices for a home, the choice has a lot to do with geography, where in the country you are,” said P.J. Stafford, co-founder of the eco-consulting firm Green Irene. “Your cost per kilowatt you generate is going to vary significantly from state to state.” For example, solar power in Minneapolis may not be a good choice, but in Arizona it’s a no-brainer.
Since sorting through the options can be confusing, many consumers hire consultants to visit their homes and offer customized advice. Green Irene, for example, has 150 consultants in 37 states who help customers complete “Green Home Makeovers” to save money and energy.
Since you might not be quite ready to call in a professional, here are some basics for getting the ball rolling.
1. Greening the Grid
“The first step is, people should opt for green power from their existing utility,” Stafford recommended. For an added price, you can often choose to buy green energy over conventionally-derived energy from your electricity utility company. In general, this option costs a couple cents more per kilowatt-hour (kWh) of electricity you buy.
The average U.S. monthly household uses 938 kWh per month, so if the household opted to replace 100 percent of its energy with green energy, at a 2 cents-per-kWh premium, its monthly electricity bill would cost about $20 more.
But since you usually pay a flat rate for, say, wind power, and the price of oil and coal power can fluctuate throughout the year, consumers may end up saving money if conventional energy prices rise. And you’ll be contributing to the solution of greening the grid.
2. Do it Yourself
Another option is to install the actual generating equipment on your property to create green energy, rather than simply buy it. Building a wind turbine in your yard or installing solar panels on your roof requires a larger investment to begin with, but can end up saving more money in the long run, since you’ll no longer have to purchase as much energy from utilities.
Plus, many states offer tax incentives, rebates and subsidies to encourage consumers to install alternative energy technology. The rates vary largely from state-to-state, and from energy technology to energy technology. For example, sunnier states often provide greater rebates for solar panels than cloudier states where the technology is less useful.
3. Solar
In many areas of the U.S., solar power is the most practical option. Installing an average 5 kW solar panel system in New York, for example, might total about $60,000. However, the state offers such generous rebates and tax credits, that the job will actually cost only about $11,000.
“There’s no better deal right now in the country,” said Robert Covello, a certified solar panel installer for Mercury Solar Systems of New Rochelle, NY. “If you look at the numbers, the payback is like five years. It’s like stealing.”
Since the entire system pays for itself in as little as five years, it sounds surprising that most residents of New York haven’t installed solar panels yet. “Why are people not doing it? Because they don’t know, that’s part of the problem,” Covello said. However, the news of the deal is spreading. Covello’s business has been doubling ever year recently. “It’s the only business where people call me up and say, ‘Thank you,’ because three months later they are getting virtually no electric bill.”
4. Wind
Wind power is also a great option for many homes.
“Our most active markets are typically on the coasts,” said Scott Merrick of the Bergey WindPower company, based in Norman, Okla., which installs small wind turbines for homes and businesses around the country. “There you have incredibly high utility rates, good wind resources and large subsidies.” In situations like these, a typical 10 kW wind turbine system, that costs between $55,000 to $67,000 to install, will usually pay for itself in six to eight years.
Surprisingly, wind power isn’t as popular in places like Oklahoma, even though the Plain States get tons of wind. That’s because electricity prices are so low anyway, most people aren’t motivated to switch over to green energy. In areas where energy is cheaper, the same 10 kW wind system can take as much as 12 years to pay back its cost.
Those planning to install wind power generators also must contend with zoning laws and neighbors that don’t want the eyesore of a turbine “souring” their view. “We typically recommend people have about an acre of space,” Merrick said.
5. Geothermal
Geothermal energy, or energy generated from the heat stored in the ground, is another up-and-coming alternative energy source. To harness this energy, consumers can install a heat pump in their yards to transfer heat from the ground to the house in the winter time, and divert heat from the house to the ground during the summer. It can also be used to heat water. The systems start at around $15,000, and can usually pay for themselves after four to six years.
“Once you install the unit, it’s going to save about 40 to 60 percent on your monthly heating and cooling bill,” said Bridgette Oliver, marketing communications manager for ClimateMaster, a manufacturer of geothermal heat pumps. “It’s using energy from the Earth that’s already there, that’s free.”
Unlike solar and wind energy, Oliver said geothermal energy works about equally well all over the country. “You just have to have dirt,” she said.
6. Cutting Down on Energy
Ultimately, installing alternative energy generators in your home, or buying green power from your utility can do a lot of good, and even save you money in the long-term. But just as important, experts say, is reducing your energy usage in the first place. This makes it easier to meet your energy needs with alternative sources, and is the easiest way to go green right now.
“The best thing you can do today is not put in solar panels, but do some things to reduce the electric and gas usage in your home,” said Green Irene’s Stafford. “The best energy [people] can generate is saving the 30 to 40 percent of energy they’re wasting in their own house right now.” Insulating your house, using compact fluorescent light bulbs and switching off appliances and electrical outlets that aren’t in use is a great place to start.
]]>For 40,000 years mankind lived off the natural life-giving power of the sun. The ancient Chinese, in particular, were using the art of fung shui [‘wind and water’] to carefully position their homes toward the south, so as to have access to the best light and warmth.
Then, in 1854, a savvy science professor at Yale University learned how to distill petroleum; word of this nifty trick raced round the world. Within seven years, the modern petroleum industry was born in the Russian-owned oil fields of Baku, and in the American state of Pennsylvania.
All was fine for five generations. But now fast-forward to 2008. The cost of finding and transporting oil to homes and businesses is soaring, and every scientist knows that this precious resource is finite; it’s only a matter of time before the last oil well runs dry.
So the smart money these days is going back to the future—returning to the wisdom of the ancient world to harness the sun and the wind— energy sources where nature’s warranty can run to a million years.
Here in the Cayman Islands, the new entry into what is now commonly called the ‘renewable energy industry’ is Arch Solar. The company is positioning itself as Cayman’s “first full service renewable energy company specializing in energy consulting, and the custom design, installation and sale of premier solar and wind power systems for residential, commercial and industrial applications.”
Dana Arch, the company’s Vice President, grew up in Wisconsin and took a degree at Princeton University. It was when she moved to Boston that she became captivated with the concept of
renewable energy.
In March she obtained her formal LEED [Leadership in Energy and Environmental Design] professional accreditation. This important rating system was created by the US Green Building Council, a non-profit association launched in 1993 to promote the idea of creating ‘green buildings’ which uses environmentally safe materials, and promotes sustainable ways to build and maintain buildings, whether private homes or offices.
As anyone who has set foot here for even a single day knows, Cayman has an abundance of sunlight virtually year round. But alas, it’s not just the number of sunny days, or even the latitude that makes a location ideal for the effective use of solar power. Needed are solid incentives and government regulatory policies that are forward-looking.
Eric Mildenberger, Energy Reduction Manager for the Ritz-Carlton Grand Cayman says: “Cayman has come pretty late to the understanding that solar power can actually be a very effective secondary source of energy and they have come late to the trend to drop duties for renewable energy equipment; I would say that roughly 70 percent of the other Caribbean island-nations already have legislation which waives the import duties on renewable energy equipment. It’s just common sense.”
But now Cayman has climbed on the solar power express as well.
Effective 1 December, import duties on all renewable energy equipment — defined as energy sourced from the sun, wind or ocean — will be fully waived. This means that Cayman residents can now generate their own renewable energy at their homes.
In fact, the Electricity Regulatory Authority [ERA] is actively encouraging residents to go solar. Said ERA Chairman Kendal Ryan: “The ERA is pleased to approve the CORE program. We encourage consumers in a position to install renewables to assess their options for doing so.” Waivers on renewable energy products imported for commercial use will be reviewed on a case-by-case basis by the ERA.
Arch Solar’s Dana Arch is, of course, pleased to have the duties finally lifted, saying “it’s an important step in the right direction.” Asked why government seemed to take so long, she notes: “They were simply being cautious. This is quite natural with any new technology. But time is on solar’s side as the cost of fossil fuels increases while production costs for solar continually decrease.”
Be that as it may, the govern-ment is still taking it slow. While customers will be allowed to connect to the grid, a cap has been placed on the system – 10 kilowatts for private residents and 25 kilowatts for commercial premises. In 2010, the system will be assessed again, with an eye to changes.
But Arch Solar already has an ambitious agenda. The company has introduced a range of solar power and solar hot water products, with wind energy systems as a sideline item. As the authorized dealer for [southern California-based] SunPower, Arch Solar can offer their clients the highest efficiency panels on the market.
As a champion of solar energy, Ms Arch says that aside from being better for the environment, the average “pay-back time” [to recoup your investment] for solar is constantly being reduced. “Presently, it averages about 12 years,” she says. “However, many of our photovoltaic systems are backed by 20 to 25 year warranties—so once you pay off your capital costs, you’re essentially getting free electric power over the operating life of the system, which can be upwards of 30 years. And for solar hot water systems, the pay back time is even shorter still—about 3 to 5 years.”
What’s more, the days of heavy, bulky, even ugly solar power products are over, she says. “Today’s solar panels are far more low profile than the panels of the past.” So low profile in fact, you might not even know it’s there. For example Arch Solar offers a Bifacial Photovoltaic Module—which is techno-jargon for sky lights that actually double as solar panels by capturing sunlight from both sides of the panel simultaneously. These Modules can be as much as 30 percent more efficient than ordinary single-sided solar panels.
Ms Arch also notes that the days when the actual efficiency of solar power could not be accurately measured are long gone. One of the company’s products — the SunPower Monitoring System —includes a wall-mounted wireless LCD display where homeowners can regularly gauge how well their home’s solar system is performing. This information can even be accessed while they’re away from home, through any Internet-connected computer.
And for Caymanians looking into wind power for their homes, Arch Solar offers the SkyStream 3.7“ — a stand-alone [no guide wires] windmill which sits atop a ten-meter pole. It requires only a slight breeze of 8 mph, although 10-12 mph would be ideal. The CI$12,000 cost includes full installation. Smaller models are available for $800. And for boaters, Arch Solar offers the Air Breeze, a 13 pound wind-generator which needs only a 6 mph wind to be effective, and can power a boat’s navigation lights, as well as a PC and radio.
While Arch Solar will sell stand-alone solar power or wind generated equipment, it prefers to market itself as a full-service company. And that’s where the company’s Director of Engineering comes in. As a chartered Engineer, with many years working predominantly in the aviation industry, David Brown’s task is to assess each client’s needs, whether residential or commercial, and present all the various ways that he can make their home or office more energy efficient, which can include everything from the proper insulation, and the correct doors and windows, to solar panels on the roof.
“It’s really a matter of education. The more people know about solar power, and the more they learn about how renewable energy can be used both to improve their bottom line and to make a powerful statement about their social responsibility, the quicker they become convinced that this is the way of the future. Especially in a place like Cayman,” Ms Arch said.?