Solar Energy: The Financial Picture; Now That You’ve Decided

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The Financial Picture

Any building that is exposed to the sun is suitable for solar heating, to some degree. The rising costs of conventional fuels, together with a government policy that officially favors solar installation, encourage the exploration of solar heating.



Since 1974, the commercial market for active solar hardware has increased dramatically—thousands of homes per year are being at least partially adapted for solar systems in this country alone, and the government means to significantly increase that number by the end of the century.

As long as gas and oil were inexpensive the installation of a solar system could be a financially sound move only in a few places, and only for a few people. As recently as 1973, a payback period for a completely outfitted solar installation might have been as long as 25 to 30 years. By 1980, with tax incentives and rising fossil fuel prices, the payback can generally be expected to be 10 years or less. and if the prices of fossil fuels continue to rise at the rates projected by the Department of Energy, that payback period may fall to five years or fewer by 1990. However, while sunlight is free, the technology required to convert it into usable energy is not. You’ll have to pay out something; exactly how much depends on the particulars of your house and heating needs. The best way to get a realistic idea of the cost is to have an expert do an on-site inspection. Then you’ll know better what kind and size of solar installation is best for you; how much such an installation might cost; how much energy and money it may save you; and what its life-cycle costs and associated pay- back period are likely to be.



Because the costs for a solar sys tem can range from $200 for a few 55- gallon oil drums to set in your window, to $20,000 or even more for a complete active installation, you should take the time for a thorough investigation of your options.

Tax Incentives: More than a million solar systems of one type or another are now in operation in the US. Government support is behind this switch- over; the Solar Energy Information Data Bank has been established by the Department of Energy to “collect, review, and disseminate information for all solar technologies.” To make solar use more attractive, the Federal government and many state governments offer tax credits or deductions (). These can be big or small carrots, depending on how much you end up spending on solar equipment, and on the level of your income.

The use of solar energy raises more than just a financial question—it brings up ecological concerns as well. In these pollution-conscious times, many people advocate solar energy because it is a clean, natural fuel. Others like the idea of being fairly independent of the fuelish foibles of civilization and want to try “producing” their own energy.

Whether your interest is ecological or romantic or a combination of both, you may be one of those people who feels that the satisfaction solar energy pro vides is as important as its ability to save you energy dollars. But if you are only interested in financial savings, you will want to make very careful calculations before making a major investment in solar equipment.

Now That You’ve Decided

Your house is fully insulated. Your southern exposure will work. You’ve checked into the financial aspect and decided that you can swing it. Now it’s time to seek out some expert advice on solar equipment.

Exploring the peculiarities of your own environment will help you find solutions to your own specific problems. Visit local residents who have already adapted their houses to solar energy. Speak with an experienced solar architect (for both passive and active installations), and with a solar engineer (for active installations). Check out local contractors who have adapted other houses in your area. Talk with them about their experiences. All of these people can tell you things you’ll never find in guides. They are certain to have some practical pointers that will save you time and money, whether they have sold solar equipment or bought it; whether they have installed solar equipment or lived with it; whether they like it or not. and because these people are local, they will know about your general climate and how that works with different systems. They may also be able to steer you to contractors, salespersons, and available hardware and alternatives, as well as to a variety of installed systems you can inspect to see what most closely suits your own needs.

Some solar equipment is easy to in stall; these jobs you can probably do yourself. Others, however, may be quite complicated and require the services of a trained specialist. If you do have to hire a contractor, be sure to re-read “How to Choose a Contractor.” The principles that apply to hiring a contractor to install foam-in-place insulation are identical to those that apply to hiring someone to install your bank of flat-plate collectors.

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