Residential Solar Panels Lower Fuel Consumption Costs

By: Kathi Gregory, AIA, CSI

Recently CNN reported http://www.cnn.com/2007/POLITICS/12/13/gore.home.ap/index.html on the extensive renovation that Former Vice President Al Gore and his wife Tipper, have done to their historic home in Nashville, TN. One of the energy consumption reduction techniques was the use (although temporary) of solar panels.

Solar panels are constructed of thin layers of silicon. These silicon layers, when exposed to sunlight release electrons which creates an electric current. These individual cells are grouped together to form solar panels. Solar cells convert sunlight into energy with no moving parts, no noise, no pollution, and virtually no maintenance.

Currently in the United States alone over $13 billion are spent for residential water heating. Per home, that amounts to almost 11.5 barrels of oil per year, or driving your mid sized sedan about 12,000 miles. For most people, that’s a full year’s worth of driving. If you could eliminate your gasoline cost for a year wouldn’t you? It’s a no-brainer.

Since you can’t really do that, the equivalent alternative is to purchase and install a solar water heating system for your home. In fact, if you are building a new home, there is simply no excuse for not installing a solar collection grid to heat your water.

In the average US household, heating water accounts for roughly 25% of the total energy used, because the electric water heater is the biggest energy hog of all your household appliances. Solar water heating system costs have dropped more than 80% in the last 20 years, and you can expect that the cost will continue to drop as the demand increases. How much will you save? That depends on you; how much hot water you use, where you live, and the cost of electricity in your area, among other things.

Generally, if you heat you water by solar energy you can expect your water heating bill to drop 50%-85%, no matter what happens in the Middle East. Typically, a household in California could expect to save about $1000 a year in energy costs. Yes, the initial investment is more than the conventional method, but the long term savings can really mount up. Additionally, homes that have had solar water heating systems installed almost always recoup the investment through higher resale values.

How much do you need? If you live in the Sun Belt the amount of area of solar collectors needed is about 40 square feet (4 square meters) per couple, plus 8 more square feet for each additional person living in your household. If you live in colder areas of the country allow 66 square feet of collectors per couple and 14 extra square feet per additional person. You should also have a hot water tank capable of storing 1.5 gallons of water for each square foot of solar collector. Do not go down in tank size if the size is in between tank sizes available, always purchase the bigger tank. This will protect your system from over heating when you are not using a lot of hot water.

First and foremost, before investing in a solar water heating system, take steps to reduce your consumption. Set the thermostat on the water heater to 120oF, install flow restricting shower heads, and make sure your water heater and the hot water piping are well insulated.

When you consider the advantages of heating your water with sunshine, deciding to actually do it is a no-brainer. Take the time to read about the different systems that are available, purchase one that is certified and labeled by The Solar Rating & Certification Corporation, (SRCC), a nonprofit, independent third-party organization formed by the solar industry, state energy officials, and consumer advocates to certify and rate solar water heaters.

Buy American made solar panels. One of the largest solar panel manufacturers in the world is located in Memphis, TN. This is not only a plea to buy American, but to not expend the fuel and resources required to ship your panels from overseas. Then hire a professional installer with experience. Make sure they have installed at least 5 systems successfully in your area.

When you install a solar water heating system in your home, you are not only saving yourself money, you are helping us reduce our long and short term dependency on foreign oil, and you are reducing the peak load incurred by your local utility system. This reduces pressure to build more multi billion dollar power plants, and you are reducing your carbon footprint.

Finally, with these tips in mind and some independent reading, you should be able to successfully convert your sunshine into a greener, healthier lifestyle, with 94% of all people who have installed solar water heaters agreeing, it was worth it.

Tax Incentives:
The Federal government is also offering tax incentives to install solar water heating systems. The Energy Policy Act of 2005, (H.R. 6, Sec. 1335) provides a 30% tax credit up to $2,000 for the purchase and installation of residential solar electric and solar water heating property. An individual can take both a 30% credit up to the $2,000 cap for a photovoltaics system and a 30% credit up to a separate $2,000 cap for a solar water heating system. A 30% tax credit up to $500 per 0.5 kilowatt (kW) is also available for fuels cells. Initially scheduled to expire at the end of 2007, the tax credits were extended through December 31, 2008, by Section 206 of the Tax Relief and Health Care Act of 2006 (H.R. 6111). Also check with your local electric company, there are frequently state or local tax incentives.

Sources and further reading:
EERE Consumer Guide: Solar Water Heaters http://www.eere.energy.gov/consumer/your_home/water_heating/index.cfm/mytopic=12850Solar Water Heating http://www.nrel.gov/docs/legosti/fy96/17459.pdfImprove Efficiency with Solar Water Heating http://www.energystar.gov/ia/new_homes/features/ESSolarWaterHeating.pdf