Make the sun work for you By Michael Futch
Staff writer
For years, Fayetteville has been standing in the shadows of the solar power movement.
That may be changing.
Time is creeping up on electric companies and cooperatives, which must comply with a 2007 state law requiring a greater reliance on conservation and renewable power sources to meet energy demands.
By 2012, 3 percent of the energy produced for customers must come from renewable energy sources. The target goes to 12.5 percent by 2021.
To meet the new rules, Progress Energy has begun offering incentives of up to $20,000 to people who install solar panels on their rooftops.
The incentives, coupled with state and federal tax credits, are expected to significantly increase the number of North Carolina homeowners who use solar power.
But in Cumberland County, the switch to solar power lags behind because homeowners have no way to sell the extra electricity they generate to the Public Works Commission.
Jim Wood, marketing manager for Alternative Energy Concepts of Fayetteville, estimates that no more than 10 homes in Cumberland County have solar water heating systems. Fewer still have rooftop solar panels, he said.
Alternative Energy Concepts installs solar technology throughout the state.
“Unfortunately, people do call, but we can’t give them solar electric service because PWC doesn’t have interconnection service. Fayetteville is only like two or three places in the state where customers can’t have grid-tied solar.”
In other cities, power companies provide credits to people who use solar panels and send their excess kilowatts to the utilities.
Ray Samples of Fayetteville, who has spent about $14,000 on a 1,600-watt solar power system, said he could save hundreds of dollars each year if he could tie into PWC’s grid.
“If I was grid-tied, I probably would have a negative electric bill,” said Samples, 38.
Spokeswoman Carolyn Justice-Hinson said PWC is looking into residential interconnection agreements.
Progress Energy’s incentives come with a catch: To qualify for $20,000 worth, a homeowner would have to sink about $80,000 into solar panels to generate the maximum of 10 kilowatts of electricity.
The average residential solar system generates 2.5 to 3 kilowatts, said Mike Hughes, a spokesman for Progress Energy. As a result, the typical Progress Energy customer incentive would be $5,000 to $6,000.
Under its expanded solar energy plan, the company’s rebate ranges from $1.50 to $2 per kilowatt of electricity generated by home solar systems. That covers about 25 percent of the cost of the panels.
Progress Energy serves about 31,000 commercial and residential customers in Cumberland County. It has about 1.3 million customers statewide.
“There’s no question it is a long-term commitment and long-term payback,” Hughes said. “Not every customer wants to do it; not every customer is able to do it.”
To qualify for the incentives, customers must use installers approved by the utility to ensure, Hughes said.
Initially, Wood said, people should ask for a contractor to do a site survey at their home. The contractor will calculate the length of the “payback” period, how much sunlight is available and how much power the system is going to produce.
Once the system is paid for, which Wood said averages between seven and 10 years, a percentage of the customer’s electric bill is credited for years to come.
Excluding incentives, the average cost for installing a 2-kilowatt system is $16,000 to $20,000, said Tommy Cleveland, a building energy analyst with the N.C. Solar Center at N.C. State University.
The installer should be licensed and, preferably, certified with the National American Board of Certified Energy Practitioners. Contractors are listed by the N.C. Solar Center at www.greenprofessionals.org.
Local utilities’ plans
Justice-Hinson said PWC is facing the same renewable energy requirements as Progress Energy.
“We are looking at it,” she said. “Most likely, it is not going to be to the extent Progress Energy is offering.”
South River Electric Membership Corp. has about 17,000 customers in Cumberland County and 40,000 in a five-county area. The utility has no incentives for rooftop solar panels, but it does offer a $1,000 rebate for solar water heating.
South River does allow customers who install solar panels to interconnect with its power grid.
“Customers are able to invest more in solar water because there’s a quicker payback than you (have) with solar panels,” said South River spokeswoman Catherine O’Dell.
Lumbee River Electric Membership Corp. has no household solar rebates. The company, which has about 48,000 members in four counties including Cumberland, is looking at the possibility of financing the installation of solar water heaters, spokesman Walter White said.
Progress Energy’s program will provide a $1,000 rebate to households that install solar water heaters. The company’s rebates will be available in the fall, Hughes said.
North Carolina offers homeowners a 35 percent tax credit with a $10,500 cap for solar panels. A 30 percent federal tax credit is available, too.
Staff writer Michael Futch can be reached at futchm@fayobserver.com or 486-3529.
http://www.fayobserver.com/Articles/2009/06/17/908599.aspx
