Contributor Opinion by Carl Henn: Solar Co-op Options
Dec 8, 2009 10:51 - 16 Comments
Posted by: Cindy Cotte Griffiths
Department: Contributor Opinion,Opinion
Tags: by Carl Henn, environment
Department: Contributor Opinion,Opinion
Tags: by Carl Henn, environment
>Let’s say you want to put solar panels on your roof. It’s a big expense. There are many options to choose from, many companies offering different products, lots of paperwork to get the state, local and federal support that is available. It’s a daunting prospect. I’m sure some people who might otherwise move forward with solar panels haven’t due to the complexity of the process, while others fear they’ll pay too much or buy a system that doesn’t perform as anticipated.
Solar Co-ops can help overcome these barriers. Depending on how it is organized, they may also reduce the cost by buying in bulk instead of as a single system at one household.
There is a fine example of what a solar co-op can do in the nearby DC neighborhood of Mount Pleasant. A few neighbors there wanted to install solar panels and thought if they are going to go to all the trouble of figuring the whole thing out, they would bring some other neighbors along and get a volume discount. They were driven to action by deep concern about global warming and other environmental problems. They have succeeded in getting 50 systems installed so far. See http://www.mtpleasantsolarcoop.org/
Another twist on this idea comes from the United Power Co-op in Brighton, Colorado. In this case, the power co-op is the local utility. Noting that many of their customers wanted solar power but face the same barriers noted above or don’t own their roof or have too much shade for solar to work at their home, they created a “solar farm” leasing arrangement. See http://www.unitedpower.com/solpartners.aspx They set up solar panels on their own land, getting the capital from their customers. They provide a 25 year lease on a 210 watt photovoltaic panel for $1,050. They provide a 3% return on investment, based on current energy prices. Their promotional material claims a 17 year payback, though my own calculation shows that unless electricity prices increase, it won’t pay for itself before the lease expires. But carrying an income source into the future isn’t risk free. The stock market disappointed my expectation for a return on investment and indeed has swallowed much of the principal I invested. This investment has the potential to hold its own against inflation since rising energy costs are a primary source of inflation.
Another co-op approach worth noting is the effort by the Rockville Chamber of Commerce. They will negotiate purchase of wind generated electricity on behalf of their members. See http://www.gazette.net/stories/12022009/rocknew220922_32535.shtml This will be done through Clean Currents, which is also available to individuals who aren’t in the Chamber of Commerce. Clean Currents will sell you electricity that has been generated via wind turbines as described at http://www.cleancurrents.com/index.php/C-Green-Overview Currently, their price is lower than the standard Pepco price.
So what should we be doing differently in Rockville to increase renewable energy generation? First – step back and look at the bigger picture. There is a good chance you can save more energy by putting insulation in your attic then by putting solar panels on your roof, and can do so for less money. You should get an energy audit. Chevy Chase recently set up a rebate program for their residents to pay for energy audits and a portion of the upgrades that such audits recommend. See http://www.townofchevychase.org/n/166
The co-op approach used by Mount Pleasant is very powerful. But it requires a huge effort by a few individuals. I’ve seen several websites from other people trying to do the same thing. Most of them haven’t had a single installation yet. My hat is off to the Mt. Pleasant folks. Convincing people to part with thousands of their dollars, and setting up a structure for the contracts to work through is quite an accomplishment.
I would recommend a simpler approach – negotiating a “Rockville Deal” for solar panels that any resident can use, without trying to put the contract through the City or a community group, without guaranteeing a certain number of installations. While this would likely mean the cost per unit would be a bit higher, it is a more achievable approach. It would still be helpful. The City could set up a competitive process, eliminating those companies that have had performance issues, negotiating the technical specifications and prices of the unit and setting forth how to capture the state, local and federal subsidies. It would likely still be cheaper than most people would get on their own. The City could present the Rockville Deal approach in the proper perspective – energy audit first, invest in the most cost effective upgrades, how much sunlight/shade do you have?, is your roof good for another 15 years (i.e. Don’t put new panels on an old roof). If you get guidance from a salesman, you might not get unbiased advice.
The City could also mirror the approach taken by the Brighton co-op. The City’s owns a number of buildings that have unshaded roofs where solar panels could be installed. The City doesn’t have the money to do this, and indeed if they did they would probably be better served to put that money into more efficient street lights or better insulation at Glenview Mansion. But they could lease panels in such a manner that citizens would pay for the panels and the city would then pay the citizen for the electricity that the panels generate.
Investing in solar panels as an individual requires an appropriate site, knowledge of the marketplace and technology, knowledge of government subsidy programs, research into contract terms and such. Making this investment through the City allows for economies of scale, and makes it so each individual doesn’t have to do all the legwork alone. It makes the process more simple and accessible. This program would provide an investment alternative to the stock market which may fail widely in an era of declining oil production. A Rockville Solar Farm may well be one of the better investments available.
Carl Henn
This is a contributor opinion. Rockville Central encourages readers to submit such opinions for consideration — the more voices the better. We especially welcome people who disagree with us. We ask that all such contributions be civil and we reserve the right to edit (in consultation with the author) or reject. Contributor opinions should not be seen as reflecting opinions held by Rockville Central editors, as they are just as frequently at odds with our own views. That’s the whole point!
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Carl is right, Photovoltaics can be and are expensive when looked at for the initial costA 4Kw system if facing withing 20 degrees of south at a tilt of about 25 degrees will cover about 275sqft of roof and cost about $30,000 up front (30% of this is deductable as a federal tax credit dropping it to ~$21,000). There is the fact that a 4KW system will make about 5,000KwH per year or 5 Renewable Energy Credits (REC’s) that can be sold to Pepco by an aggregator such as Clean Currents as the electric companies are mandated to increase their use of renewable energy. There MAY still be property tax credits from Montgomery county and an incentive from the state of Maryland.. Maryland has net metering, ie you can spin the meter backwards and get full value like I have for my 8,000+ KwH generated over the last 9 years.If you use 10,000Kwh/year you have cut your electric bill in half and can additionally sell on a sliding scale the rights to Pepco to say they are using your 5 REC’s, a form of double payment to you. There are additional ways to lower your electric bill
a free digital issue of Home Power that extensively deals with Solar, Wind, Geotherm, and other forms of renewable energy
There is also the issue of Homeowners rights. Where do mine end and yours begin?In the United States it was decided by the Supreme Court in 1950 that the Fountain Bleu hotel could shade the Eden Roc hotel and take the sunlight without compensation. Ancient Lights does not apply except in a few places in the USWe have the right in Maryland to put solar collectors on our residences but we do not own the sunlight falling upon them and it can be completely or partially taken without any compensation. At best we can beg our neighbor for a revocable varience with no force of law if they wish to terminate itNow that we are putting up solar collectors at a fairly serious expense, we do not know if tomorrow someone will steal or take our sunlight.If I had not literally raised hell with the Rockville planning department, 542 Beall avenue would be 9 feet taller and my PV array would be shaded even more.
This ae excellent suggestions. There are issues that Rockville City Government should work out, like the right to sunlight that Robert Winfield identified. I’m have a contractor coming in at the end of the month to backfill my exterior walls with foam insulation. Looking further down the road, I’d like to seriously consider solar.
Photovoltaics, PV, are a very sexy and expensive renewable energy. First do the cheaper stuff. Solar Domestic Hot Water, SDHW has been shown to have a 400% return on investment over PV.Fine Homebuilding has a seperate issue on Energy Efficient Building. One of the first articles is on Blower doors. Is the house drafty? where are the air leaks? Infiltration and Exfiltration, air leaks, are a major factor in cost of heating and cooling
Robert,Perhaps, regulations regarding variances and pre-existing property should be encoded into law.You know, in some places out west, it is illegal to cachement water sloughing off your own roof because pre-existing downstream ranchers/pastures/municioalities were relying upon that water before the desire to hoard water ever existed.That issue remains contentious to say the least.
Carl – Sounds like you could use some volunteers to help execute the co-op approach. How about an open Rockville Solar Summit to be held in January? I’d be willing to help organize.
I’d be happy to help. I don’t intend to lead such an effort – I just wrote this up since the solar co-op idea seemed to get the most traction in my earlier post. Getting a group together who cares about this is a fine next step.
Interested in forming a Rockville Solar Coop? Visit http://groups.google.com/group/rockville-solar-coop.
Solar Co-op ProposalSeveral neighbors are interested in forming a solar cooperative. An organizational meeting has been proposed for next month. Here is an outline of two models of current coops:Mt. Pleasant formed an information sharing group (http://www.mtpleasantsolarcoop.org/) that researched the incentives, system components, installers and investigated the feasibility of purchasing systems at a group rate. The group was started when Anya Schoolman went up the roof of her DC rowhouse, and noticed that most of her neighbors had nearly identical roof structures and sun exposure. However, when installers came to give price estimates, variances in the century-old roofs became evident, and prices were not consistent. They dropped the group purchase idea, and instead focused on sharing information, lobbying for beneficial utility legislation.Common Sense Solar in Chevy Chase (http://www.commoncentssolar.org/) is more than a volunteer-run organization, and therefore charges for membership. The fee is then applied to the purchase of a system, and the coop assists in the solar grant and tax credit paperwork, and provide access for the installers so the homeowner doesn’t have to be there during the workday.Carl’s idea of a Rockville Deal has merit and is worth investigating. Depending on how it’s structured, it may require city involvement, but that is already necessary for permitting. The energy audit he mentioned is needed to get Maryland’s solar grant beginning in 2010. The solar feasibility portion could be a byproduct of Rockville’s tree canopy study which was recently completed. We do like trees, but sun is an opportunity to offset carbon emissions. The solar farm option is a great idea because it overcomes obstacles that many face. Owners of shaded roofs, apartment dwellers and others who can’t put panels on roofs will have the ability to purchase panels installed in optimal conditions. Churches or gov’t buildings that can’t take tax credits could install panels for others who would get credit their utility bill if smart metering systems were put in place. This would require the lobbying efforts that solar coops should champion on behalf of their members. Let’s get this party started! (apologies to Korn and Pink alike).
As the co-founders of the non-profit Common Cents Solar in Chevy Chase, we are pleased that neighboring communities are researching and reviewing the many ways that solar energy can be both more affordable, and more understandable for homeowners. When the residents of Rockville analyze the alternatives for collective education, purchase, installation, and paperwork follow-up, we want you to know that belonging to our Co-op has never had an upfront fee- no membership, etc. ; you belong to our Co-op when you purchase a solar system through our discount, period. And, yes, we do rely on an enormous amount of dedicated, smart volunteer hours, as well as the advice of committed local electrical engineers, and an accountant and lawyer or two…So, join us, Rockville!SIncerely,Ketch Ryan and Kirk Renaud
Why reinvented the wheel? We should just join CCS and get this started!
I hope folks from Common Cents Solar can join us when we get together in January. If the effort they have already done meets our needs, then I’m all for not reinventing the wheel.
Hey CCS – My email to your info@ address is bouncing.
There is a guide for local governments trying to increase solar energy installations at http://www.solaramericacities.energy.gov/resources/guide_for_local_governments/ I think its worth a look.
Congrats to Carl on the recent publication of his guest editorial in the influential resource depletion website, The Oil Drum: http://www.theoildrum.com/node/6193