Finding a Common Ground Between Energy Efficiency and Solar Photovoltaic Systems

Everyday at the Co-op we receive requests for information from members wanting to add solar photovoltaic panels to their houses. Our members are concerned about the environment as well as their electrical usage and they want to make the right choice in benefiting themselves and reducing greenhouse gases. The first thing we do is make them aware of our long-term contract (till 2011) with our power supplier the Bonneville Power Administration (BPA) where we purchase 100% renewable hydro-generated electricity.

Second, we ask them what their monthly electrical usage in kilowatt hours (kWh) is. This allows us to see how much electricity they themselves use; it also gives me an idea of how efficient their house and appliances are. Unless your house, appliances, and lighting are as efficient as possible, it makes no sense to install a photovoltaic system because it will be larger and more expensive to generate enough power to handle your needs. In states that offer incentives for solar photovoltaic installations, energy efficiency is at the top of the list in considering a project for funding. The kilowatt hours that are saved by efficiency are the first step in reducing your house’s electric load. They might not be as glamorous or trendy as an alternative renewable energy system but they are your best investment in terms of getting the most for your money!

Replacing your existing appliances (refrigerator, freezer, clothes and dish washer) with ENERGY STAR labeled ones is the place to start. Next, look at replacing some of your old lighting fixtures with compact fluorescent ones as well as installing cfl bulbs in the remaining fixtures. Your investment in new, more efficient appliances, light fixtures, and cfl bulbs would be around $3,000. You can obtain the most current list of ENERGY STAR appliances at www.energystar.gov.

There are other ways to improve the efficiency of your house such as employing the services of a home performance specialist or home energy rater. These trained and certified professionals give you an independent third party report on the efficiency of your house based on national energy standards. In addition, they can performance test your house and heating system to eliminate unwanted air leaks in the building shell and ductwork installed outside the heated envelope of the house.

Once you make your house and appliances more efficient, the next step is to decide how large of a solar photovoltaic system you want to install. On average, a 1 kilo-watt (kW) system installed costs approximately $10,000. A 1 kW system in our area would generate about 1,428 kWh in a year. That would be $76.54 in dollars based on our electric rate of $0.0536/kWh. At Ravalli’s current rate it would take 130 years for the system to pay for itself.

The figures shown are estimates and may vary depending on the location, size, and type of solar system chosen. The state of Montana does offer an alternative energy system credit of $500 for solar. There is also a Federal Solar Energy System tax credit of 30% of the system cost up to $2,000. With the current tax credits that are available to members installing an alternative renewable solar energy system, the payback of a 1 kW system drops to 98 years in our area. REC does not offer an incentive for solar photovoltaic systems. A typical house in our service area would require a 12 to 14 kW system to handle all of their electricity needs for a year. A system of that size would cost about $140,000 to install and it would generate approximately 19,992 kWh a year or $1,072. Even with current credits and incentives, the return on investment is 91 years.

If you have questions on alternative renewable energy or other concerns, please contact us at the Co-op. A great resource for information on alternative renewable energy systems is the National Center for Appropriate Technology (NCAT) and their alternative renewable energy web site is www.montanagreenpower.com.