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Publication Date: Friday, March 09, 2001

Solar home will be green and reliable Solar home will be green and reliable (March 09, 2001)

Economic benefits are many years away

by Stephanie Ericson

Jon Roselle is taking a big step away from dependence on the Pacific Gas and Electric Co. and toward more reliable electricity and a cleaner environment. Jon and Jane Roselle are having a photovoltaic system, which converts light from the sun into electricity, installed in their home, the first family in Pleasanton to do so.

It's a big investment because even with the help of a government subsidy program, the cost is high - in the Roselle's case it is $41,000, less the $7,000 subsidy. But believing electricity rates will only get higher over time, the Roselles took the opportunity to incorporate the system into a major home remodeling effort under way.

It's not the first time the Roselles have turned to solar energy. Jon Roselle well remembers moving to a house on a South Dakota prairie outside Rapid City near Elsworth Air Force Base, where he was stationed in the early 1980s as a public affairs officer. At that time, they had two children. Now they have six, with two still living at home full-time.

"My duty before that was in Tucson, so I was not prepared for the cold," he said. He and his family were also not prepared for his first electric bill - nearly a whopping $600. The next day he built a wood-burning stove and bought three cords of wood. But what really saved the day was the huge solar collector he installed that covered the entire south side of their house.

"It warmed the air in the collector and when it reached a certain temperature an automatic fan kicked in that heated the house as long as the sun was up," Roselle explained. "It kept it reasonably comfortable when the wind chill went down to 60 below." Between that and the wood-burning stove, Roselle said he never turned on his electric heat again.

"It paid for itself very quickly," he said.

Their new system, in contrast, is more technologically complex and considerably more expensive. By converting light directly into electricity, a PV system provides not only power for heat but for air conditioning, lighting and all electrical appliances.

Generating energy on site eliminates dependence on the local electric utility. But by remaining connected to the utility power grid, such systems receive electricity when the solar panels don't produce enough to meet demand in the home.

By being on the grid, PV system owners can also send the excess electricity they produce to the utility in what is called "distributed generation." Through a "net metering" arrangement, utility companies can only charge customers the difference between what electricity they supply to such systems less the electricity they get back from them.

Like many people installing PV systems, the Roselles will also have a backup battery bank to store their solar-produced electricity, so that in a utility blackout, they would be assured of power at any time. Backup batteries are optional on a grid-connected system but essential for any system off the grid.

Despite the high cost of installing such systems, the recent rising costs and supply problems in California's electricity system has created a surge of interest in PV systems, said Burke O'Neal, an engineer at Light Energy Systems. This Concord-based solar energy company is installing the Roselle's PV system and many others in the Bay Area. Its photovoltaic department has expanded considerably over the last couple of years, O'Neal said, but several months ago calls about photovoltaics increased 10-20-fold.

"At this point, we don't think our sales will increase 10- or 20-fold," O'Neal said. "Many are looking for something inexpensive, and solar energy is still a long-term investment. You have to have other reasons to install it than short-term costs."

Many who opt for a PV system appreciate the security of having a reliable source of power, and many also like using an energy source that is renewable, non-polluting and doesn't contribute to climate change. But to Roselle, economics is still a major reason to choose photovoltaics.

"We're going to be hit with more (utility rate) increases," he said. "I don't think that's an 'if' but a 'when.' The beauty of the system is that during the day you're using very little energy and getting credit putting power into the (grid) system."

Costs vary, naturally, according to the size of the PV system. The Roselles' system is relatively large at 5 kilowatts, one that will offset most or all of the energy needs for an average suburban home. A 2-1/2 kilowatt system costs about $20,000 with a minimum battery backup at an additional $5,000.

A state subsidy program presently offsets about 30-50 percent of the cost (excluding the battery) of on-site renewable energy systems for homes and businesses. Adopted by the California Legislature in March 1998, the Emerging Renewable Buy-Down Program will pay about $3 per watt up front.

Only $16 million of the allocated $54 million has been spent so far, but interest in the program has recently climbed dramatically, said the program's account manager, Sandy Miller. Since Jan. 1, 465 such grants have been made or are in the works, compared to about 700 during the preceding almost three years. Although photovoltaic systems are dominant, the program also subsidizes solar small wind turbine and hydrogen fuel cell systems.

Even with these subsidies, at present utility rates, it would take at least 20 years for the system to pay for itself, said Miller.

"But if the electric rates do go up, then certainly these systems will be paying for themselves a lot sooner," he said. In addition, Gov. Davis recently proposed adding $50 million to the program and there has been discussion in Sacramento about increasing the subsidy rate and giving tax credits to make solar energy more affordable.

"There's widespread support for the view that solar will be taking off and it's a long-term technology," said Miller.

"If you have the economic incentive, people will do things," commented Roselle. "When they get their first $500 PG&E bill, they are going to get interested in solar energy."

In Pleasanton, the Roselles could soon be joined by others with photovoltaic systems. Delco Builders has agreed to make photovoltaic roof panels an option on the 38 single-family homes in their proposed Vineyard Avenue development. Moreover, all the houses will be "photovoltaic friendly" to make it easier and less costly for homeowners to install these systems in the future.

The Pleasanton Planning commission recently held a workshop on photovoltaics and, along with city staff, is exploring whether to recommend measures that would encourage installation of photovoltaic systems in homes and businesses in the city. An informational staff report on the subject is available from the city.

Information about the state subsidy program is available from the California Energy Commission at www.energy.ca.gov/greengrid or by calling 800-555-7794. <@$p>



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