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Solar energy payoff jolts customers into action

Published on Wed, Aug 11, 2010 by Paul Archipley

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Photo by Sara Bruestle

The recently installed solar panels on the Stowell home in Mukilteo are generating more electricity than the family needs. The unused power is fed back into the grid, and the Stowells enjoy both lower bills and the satisfaction of knowing they’re helping the environment.

Anyone who has watched his electric bill steadily climb over the years would surely enjoy watching the meter spin backwards for a change.

While only a dream for the average Joe, a growing number of Snohomish County homeowners are living that dream.

They have installed solar energy systems on their rooftops, and yes, even in the cloudy Northwest, they’re enjoying the fruits of that investment, now more than ever.

That’s because local, state and federal incentives are jolting green-leaning residents and business owners into action.

Among some of the most recent to jump on the green energy bandwagon are Mukilteo’s Brodie and Lorna Stowell, who contracted with the Seattle firm Sunergy Systems this summer to install a solar system at their home on the 4800 block of 81st Place SW.

Steady improvements in technology have reached a point where electricity users with solar systems can take advantage of “net metering,” feeding their unused electricity back into the “grid” and, with special offers from the PUD and State of Washington, get paid for it.

Snohomish County PUD’s Solar Express Program offers residents like Stowell cash incentives of $500 per installed kilowatt, up to $2,500, for qualified new systems, or loans up to $25,000 at 2.9 percent to finance the installation.

Then, when a solar system in the summer months is generating more electricity than you need, that excess is fed back into the grid. You accumulate credits, at retail prices, that offset your PUD bill in the winter months when you’re using more power than your system generates.

The state is making the opportunity more tempting. Through its 6170 Program, sales tax for solar installations is eliminated and, until July 2020, the state will buy solar generation at 15 cents per kilowatt hour, nearly twice as much as most Puget Sound customers are paying for their electricity.

The federal government puts the cherry on top, offering a 30 percent tax credit on the total cost of your solar energy system, which can be spread out up to 20 years.

All of those incentives can help take the bite out of installation costs, which range from about $20,000 to $30,000 for most homeowners.

The Stowells, for example, paid about $31,250 for their system. But the various cash and tax incentives, coupled with energy use projections for the future and an increase in their home’s value, mean their initial investment will actually turn into a profit ranging from $18,900 to $26,500 after about 15 years.

And with 20-25 performance guarantees on solar panels, customers can expect their systems to last at least 30 years.

Brodie Stowell said he had been meaning to install a system himself, but when he saw all the incentive programs available now, he contacted Sunergy Systems.

“I’ve actually put my roof to work when we’re not home,” Stowell said.

“It was the right thing to do for the environment, and a hedge against increases in the future.”
Aimee Carpenter, a design consultant with Sunergy Systems, said their business has doubled annually since opening in 2005.

Customers’ reasons for taking the leap vary, Carpenter said.

“Every client is motivated in part by the green aspect,” she said. “And it really is an amazing feeling to see your meter running backwards for the first time.

“But they also find it to be a good long-term investment.”

Some homeowners, looking to retirement, want to fix costs to offset inevitable inflation.

Electric bills in recent years have been increasing an average of 7.5 to 9.5 percent annually, and most homeowners who install solar systems make their money back in 12-17 years. After that, it’s gravy.

And the misconception that the Northwest is too gray for solar power?

In fact, the Puget Sound averages about 3.8 solar hours per day over the course of a year.  That’s better than the 3 solar hours per day they get in Germany, which happens to be the world leader in solar power.