It’s tax time, and while that’s a cause for groans from many, you can be happy if you finished installation of a solar energy system in 2009!

The Energy Policy Act of 2005 was greatly enhanced in February 2009 by the federal stimulus plan, which eliminated a $2,000 cap on the federal tax rebate for solar electric systems. The current federal tax credit for solar hot water and solar electric is 30%, with no upper limit.

Unlike state cash rebates, you apply for the federal tax credit when you submit your regular 2009 personal income taxes.

Here’s a link to the IRS Form 5695 that you’ll need (PDF): http://www.irs.gov/pub/irs-pdf/f5695.pdf.

While ReVision Energy can’t offer you tax advice, we encourage you to read up about the tax credit at DSIRE and consult with your tax advisor about the best way to file for the tax credit.

Also, this act has been extended through 2016, so you have time in 2010 to take advantage of this great incentive!

Contact us with any questions you have about solar rebates.

Fortunat Mueller, one of ReVision Energy’s resident professional engineers, gave a presentation at the first annual MABEP professional training conference held Jan 12-13 at the Holiday Inn By the Bay.

Fortunat’s presentation was geared towards home energy auditors who want to better understand the economics of solar hot water and in what situations solar hot water can result in tremendous energy savings.

In addition to simply replacing fossil fuels for heating of domestic hot water, a solar hot water system can often enable a home to dramatically reduce the use of a oil burner for water heating – particularly in the summer months, where an oil burner may not need to fire for months at a time.

The above clip shows Fortunat describing why solar hot water works extremely well for domestic hot water, and how boiler upgrades combined with a solar thermal system can dramatically reduce oil consumption.

Clean solar electricity and solar hot water system installed on a home in Porter, Maine

Many people ask us how solar affects a home’s resale value.  The quick answer – solar can be a huge asset when it comes time to sell your home, though there are a variety of considerations you should take into account.

Lower Utility Costs Equal Increased Value

Let’s look at the purely rational economics of a solar energy system.

In the 1998 Evidence of Rational Market Valuations for Home Energy Efficiency report (link, PDF Download) by The Appraisal Journal there’s a section they call the “Rational Market Hypothesis” which describes the relationship of market value to energy savings.

Using fixed (and very conservative) utility costs savings, compared to the cost of the investment, they are able to project an economic value for energy improvements:

Fuel costs may be considered just one of many complex factors affecting the decision to buy a home, but the same can be said about other determinants of home value—from number of bedrooms to the quality of local schools. In a rational, competitive market, the value of energy efficiency, like the value of any other housing characteristic, should reflect its marginal value to home buyers. If home buyers expect stable fuel prices, then the marginal value of energy efficiency in recent years should be $10–$25 for every dollar reduction in annual fuel bills. (emphasis added)

Note that this 1998 report reflects a very different energy situation than what we face today.  We would now argue that the $10–$25 value increase per dollar of reduction in annual fuel bills is only a starting place, as home buyers should NOT expect stable fuel prices for the future.

Over the life of a 30 year mortgage, the fuel cost/utility savings will rise dramatically as fossil fuel heating and energy resources become increasingly scarce.

In addition, purchasing solar electric is particularly attractive right now because solar panel prices have reached record lows, so the payback time is greatly reduced.

Solar as an Attractive House Feature

There is huge emotional value to a solar hot water or solar power installation in addition to the purely logical economic argument.  A renewable energy system makes a strong statement about your commitment to sustainability and the environment, which is increasingly desirable in the marketplace.

In a down market, a solar system may be the differentiator that makes your house attractive to potential buyers.

An recent article on sunpluggers.com featured a subdivision in Northern California that is using solar panels in its homes as a way to differentiate itself.

How successful is it?

“We are the bestselling project in the market right now,” [Hal Woods, president of privately owned CenterStone Communities] says. “All of our Phase 1 and Phase 2 are sold out. We expect to have the project complete in the spring of 2010. A number of other builders are scouting us and looking at the success that we’ve had.”

While the attractiveness of a solar system will vary depending on your location and potential buying pool, it stands to reason that interest and excitement about renewable energy will only grow in the future as the need to move away from fossil fuels becomes more critical, and all things “green” become more mainstream.

Both solar hot water and solar electricity are proven, mature technologies that will provide a payback for you as long as you live in your home, and a more competitive position should you need to sell your home.

Like all investments, the earlier you put solar on your house, the sooner you will reap the rewards.  As we sometimes say, payback doesn’t actually start until the system is installed!

We put a lot of effort into ensuring our systems will operate trouble-free in New England winters for 20+ years, which is no small feat!  Exceptional manufacturers help make this a reality.

We recently learned that one of the manufacturers we use for solar electric panels, Canadian Solar, received some of the highest rankings in PV USA (PTC) rankings.

These rankings, required by the State of California, exhaustively test module performance in laboratory settings and are required for a module to be eligible for California’s solar financial incentives.

Five of Canadian Solar’s solar module series, the CS6P- 220P, 225P, 230P, CS5P-240M and CS5A-180M obtained rankings that were near the top of all of those tested.

You can read Canadian Solar’s official statement, or see the full listing of PTC rankings and requirements.

Here are some pictures of recent installations that use Canadian Solar panels:

ReVision’s New Hampshire branch manager, Will Kessler, recently captured this piece of stop motion footage which shows you the process of a solar hot water system and solar electric system coming together on a house in Eliot, Maine!

Watch for the photovoltaic (PV) panels coming in along the top – the solar hot water system consists of the tubes below.

This system will save nearly 300,000 lbs of C02 emissions during its first 30-years of service life.

We stumbled across an incredibly useful tool that allows you to calculate the path of the sun on any given day of the year based on your latitude.

This tool, part of the The Nebraska Astronomy Applet Project (NAAP), will even give really geeky data like the sun’s altitude and azimuth, and allows you to animate the cycles of the sun!

Using the tool, we can plug in our latitude (roughly 43N here in Portland, Maine), program the day to February 15, set ourselves facing south and voila!

We have a beautiful view of what the sun is going to be doing today:

This illustrates beautifully why all we suggest for solar is a roof that is relatively unshaded from 9AM – 3PM… look at all that sun!

When we do an on-site solar evaluation, we figure out whether your house has a good orientation to capture all of this solar energy.

The solar pathfinder tool superimposes a view of the sky facing south from your house onto a guide of the sun’s arc in the sky.

Shaded areas tell us what time of day and what time of year that the sun is being blocked, so we can easily tell you whether you have ample sun or should maybe take out a tree or two.

You can also see an example of the solar potential of Maine by changing your latitude to 51 degrees N, that of Germany’s, the world leader in solar installations (see more of our discussion about Maine’s solar potential).

Look at how much lower the sun sits in the horizon!

Find this kind of thing fun? Try out the Motions of the Sun Simulator for yourself.

Also check out ClassAction, a wealth of information about the earth, sun, moon, and cosmo geared towards teaching astronomy.

For instance, they have a tool that allows you to calculate day length based on latitude and time of year.

Did you know that mid-February has as much sun as late October, and about 25% more daylight than the winter Solstice?

It only gets brighter from here!

The Beachmere Inn’s solar electric system generates 5-8% of the Inn’s power needs, and solar hot water has reduced oil use by more than a third!

The Maine Innkeepers Association highlighted The Beachmere Inn in Ogunquit, a certified Maine Environmental Leader in Hospitality, in their most recent newsletter.

The Innkeepers Association also recognized that the inn has been independently family owned and operated for the past 72 years.

We featured The Beachmere Inn last May, when we noted how Beachmere took their green initiatives to the next level by installing 3 active solar hot water systems and a 5 kilowatt solar electric system

In the first two months of service, the solar hot water systems reduced oil consumption by 34%. Their solar hot water systems supply hot water for a 32-room main building and generate domestic hot water in employee housing buildings

The 5kW solar electric system covers 5-8% of the Inn’s total demand. According to their website, by mid 2009 more than 7,800 KW kilowatt hours of clean electricity have been produced by the solar array, eliminating 13,100 lbs of CO2.

Here’s a summary of the energy saving measures that The Beachmere Inn reports on their website:

• Solar Panels have been installed for Thermal Hot water for over 32 rooms as well as in our employee housing building.
• Solar Photovoltaic Panels have been installed for production of 5 – 8% of our energy needs.
• As of June 24, 2009 over 7,800 KW has been produced by solar power a savings of 13,100 Lbs. of Co2.
• Compact Fluorescent bulbs will be in used in all lighting
• Cold water laundry processes are being used to save electricity by eliminating the need to heat hot water for the laundry systems through Ozone technology.
• Energy star appliances are chosen first for any appliance replacement
• High efficiency heating & cooling units were installed in 2008 for Beachmere West
• Additional insulation was installed in the exterior walls and ceiling for better building envelope efficiency in Beachmere West.
• In 2007 we installed efficient, timed irrigation for the lawn and drip irrigation for our planting beds, in 2008 that effort has continued.
• High efficiency Low E Eagle windows are installed in Beachmere West (2008) and were used for all the window & door replacement at Beachmere South (2008) and in the Victorian (2000 – on going).
• Since 2000 we have been replacing old inefficient oil burners with Buderus boilers in the Victorian, South and West buildings.

In addition to their commitment to reducing energy and using energy from clean, renewable sources, The Beachmere Inn has a host of green administrative, cleaning, and building practices.

The Maine Environmental Leader in Hospitality distinction recognizes all of these efforts, and in fact, The Beachmere Inn has “one of the highest totals in certification scoring points.”

Sarah Diment, owner at The Beachmere Inn, feels, “It’s important to take steps towards environmental efficiencies as a smart business move. We know by becoming ‘greener’ we have a direct impact on bettering our environment. Our guests appreciate our efforts and implement some of what they see here in their homes.”

Visit the Maine DEP website to learn more about Maine’s Environmental Leader program, or call 1-800-789-9802.

Congratulations again, Beachmere!

A solar power project completed this week in New Hampshire – clean energy is ready to go!

In his first official State of the Union address, President Obama offered a rousing challenge to Congress to get to work on a variety of issues – jobs, security, health care, and the transition to a clean energy economy.

With 2009 behind us, but its challenges far from over, Obama took an approach that was urgent, while at times light-hearted, as he analyzed the country’s problems and his suggestions for implementing change.

We were pleased to see “clean energy” make it into the speech some dozen times, though Obama mentioned “solar panels” only once.

Here’s our take on some of the key points raised during the State of the Union address:

• Obama Lauds Success of Recovery Act
  

  “Because of the steps we took, there are about two million Americans working right now who would otherwise be unemployed. Two hundred thousand work in construction and clean energy”

  Obama put a lot of effort into defending the actions necessary in 2009, both the unpopular bank bailout and the ongoing American Recovery and Reinvestment Act (ARRA), aka the Stimulus.

  While Obama’s focus on clean energy jobs was on the manufacturing side – he mentioned both “the California business that will put a thousand people to work making solar panels” and a need to create “new factories that manufacture clean energy products,” the Stimulus also has had a big positive effect on those who install those panels thanks to financial incentives that were part of ARRA.

• Obama Sees Clean Energy as the Route to Tomorrow
  

  “We can put Americans to work today building the infrastructure of tomorrow … There’s no reason Europe or China should have the fastest trains, or the new factories that manufacture clean energy products… I know that there are those who disagree with the overwhelming scientific evidence on climate change. But here’s the thing — even if you doubt the evidence, providing incentives for energy-efficiency and clean energy are the right thing to do for our future -– because the nation that leads the clean energy economy will be the nation that leads the global economy. And America must be that nation.”

  Obama seemed very cautious about making the environmental case for a switch to a clean energy economy, instead rooting his argument in the need to create very real clean energy jobs.

  While we couldn’t agree more, and laud Obama for finding common ground, it’s a bit disappointing that the very real crisis facing our planet is still a point of argument.

  The reality is that regardless of the state of the economy, we need to make a move to clean energy now as an act of survival.

  That Obama was cautious to acknowledge this threat points to an even greater challenge of worldview we still have to resolve.

• Getting There – Incentives and Innovations
  

  “We should put more Americans to work building clean energy facilities and give rebates to Americans who make their homes more energy-efficient, which supports clean energy jobs. … Next, we need to encourage American innovation. Last year, we made the largest investment in basic research funding in history, an investment that could lead to the world’s cheapest solar cells or treatment that kills cancer cells but leaves healthy ones untouched.”

  Again, Obama mentions investment in research as a major player in the move to a clean economy. While we agree, the reality is that there are plenty of technologies that are already here which are reliable, affordable, and available.

  Both grid-tied photovoltaics and solar hot water are energy investments that make economic and environmental sense.

  We’re eager to see what Obama plans to offer with “rebates to Americans who make their homes more energy-efficient,” and wish we’d heard something about a feed-in tariff.

• The Economy of Old – Nuclear, Oil, and Gas?
  

  “But to create more of these clean energy jobs, we need more production, more efficiency, more incentives. And that means building a new generation of safe, clean nuclear power plants in this country. It means making tough decisions about opening new offshore areas for oil and gas development. It means continued investment in advanced biofuels and clean coal technologies. And, yes, it means passing a comprehensive energy and climate bill with incentives that will finally make clean energy the profitable kind of energy in America.”

  After so much invigorating news from Obama, it was disappointing to hear his last word on energy mention nonrenewable sources of energy.

  While it may be necessary to find some common ground with Republicans to move the overall initiatives forward, we still disagree that more power plants and “clean” coal are the best way to build the nation’s infrastructure.

Disappointments aside, it’s encouraging to see how large a role clean energy fits into Obama’s plans to move the country back into recovery.

As Obama acknowledged, we have some mighty challenges ahead of us, but the technology is here to move to a clean economy.

What is difficult is mustering the will to act.