Is Now the Time for a New Solar Hot Water System?

The number of solar electricity-producing homeowners in the District of Columbia now reach close to one thousand.  The main reason DC residents have flocked to solar electric was the rebate program that has been available through the DC Department of the Environment.  While solar electric installations have become commonplace and widely discussed, you don't hear too much about solar hot water - until now.  Earlier this year, DC changed the rules of its solar rebate program to include a solar hot water rebate equal to 20% of the system's cost.  Because there are no guarantees this rebate will last beyond 2012, many homeowners are taking a crash course in the basics of solar hot water -- trying to decide whether to get in on the rebate before it disappears.  On June 25th, several Capitol Hill neighbors along with two solar hot water installers put on a city-wide public meeting about solar hot water technology, installation costs and available subsidies.  The meeting marked the first effort by DC Solar United Neighborhoods (DCSUN) to negotiate price discounts for solar hot water installations.  Materials from the meeting are now available at www.dcsun.org.  Below are some highlights, but much more information is available on the website.

To kick off the meeting, I provided some photos of the new solar hot water system that I had installed in May 2012.  Like most solar enthusiasts in the District, I started out with solar electric.  However, I made sure that my contractor left enough room for later installation of solar hot water panels.  I was able to save some money on the solar hot water installation because the mounting supports for my solar electric were pre-designed to also support the solar hot water panels.  I can now check my new (very large) solar hot water tank to see how well the sun is doing -- it has been reading at about 120-140 degrees depending on the time of day.  Goodbye cold showers!  My family loves the new system because I'm not bugging them about saving enough hot water for everyone to shower.  My old (and small) gas powered water tank is still intact as a back-up, but especially in the summer, we won't need to fire that up at all.

Resident Capitol Hill solar guru, Andy Kerr, also had a solar hot water system installed earlier this year.  He has developed a nice presentation explaining the initial cost of his system, the rebates that he was eligible for (the DC rebate, a 30% Federal tax credit and the sale of solar renewable energy credits), and the return on investment that he expects from his system.  Because solar hot water systems need to be sized to the hot water needs you may have, Andy has also developed a spreadsheet allowing you to punch in your own numbers to calculate the economics of solar hot water.  In his case, he paid about $8,500, but with the three rebates, his cost dropped to about $3,000 -- which works out to an 8 year simple payback, and a 7.7% return on investment over 20 years.

Andy's calculations will now get slightly better because DC SUN has developed a partnership with two vendors, Solar Energy Services and Clean Currents.  Both companies are offering additional discounts of between $100 and $400 for homeowners affiliated with DC SUN or local co-op chapters.  For each contract signed with DC SUN members, both companies have generously offered to donate to DC SUN's EmPowerment Fund that helps provide solar grants to low-income families.

Please take a look at the materials on the website and decide for yourself whether solar hot water will be in your future.  As we advised with solar electric installations, it is always good to get multiple bids before jumping into a purchase.  If you are on the fence and need more time, we recommend you put your name on the list for a DC rebate while you are making your decision.  Lastly, please join our listserve from the DC SUN webpage, where you can post questions and help us start a new dialogue on solar thermal.

Mike Barrette

DC SUN Holding Forum on Solar Hot Water

DC residents have really embraced solar photovoltaic systems - more than 500 systems have gone up throughout the District.  There is much less information out there about solar hot water - although by most accounts, solar hot water may be an even better investment than solar PV.  Several homeowners that have recently installed solar hot water will be coming together to discuss their experiences, and put interested residents in touch with solar hot water installers.  The meeting is Tuesday, June 26th at 7pm at Headquarters DC, 528 F Street Terrace SE, Washington, DC 20003 - which is just a few blocks away from the Eastern Market Metro.  I hope you will be able to join other members of DC SUN and the Capitol Hill Energy Coop -- the two organizations sponsoring this forum.  Please note that the DC government has just opened a limited window for getting solar thermal rebates, so if you are thinking about it, now is the time to educate yourself.  More information and a map are at this link... https://sites.google.com/site/dcsolarunitedneighborhoods/project-updates/solarwaterheatingeducationforum 

On the agenda is a discussion by Joanna Kendig and Gene Imhoff about the solar hot water system they have had for several years.  Andy Kerr will then discuss the economics and payback for solar hot water.  Matt Carlson of Sunnovations will discuss the technology of solar hot water, then two installers, Solar Energy Services and Clean Currents will discuss their capabilities and discounts that will be available to co-op members.  This meeting is open to the public and no pre-registration is required.  I hope to see you there.

Mike Barrette
Vice President - DC Solar United Neighborhoods

Solar Thermal Rebates added to the Mix for DC residents

The District of Columbia has announced a rebate for solar thermal - something that has been in the works for quite some time.  With the new 20% DC rebate, the available 30% Federal tax credit, and the solar renewable energy credits (srecs) that you can sell -- the three subsidies will pay for a large chunk of your system.  Your energy savings from reduced hot water or space heating will quickly allow you to quickly recoup your investment.

Because of the previous DC rebate structure, many residents opted to go for solar photovoltaic panels first (or instead of solar thermal).  For those that have available room left on your roof, now is the chance to move out solar thermal.  It is unclear how long the window will be open for DC rebates.  What I've been told by the Department of the Environment is that approximately $150,000 of the $2 million available for solar rebates in 2012 will be carved out for solar thermal.  This might fund about 75 residential projects (less if funding goes to larger commercial projects).  Hopefully, this is the start of more rebates to come in future years.

According to DDOE officials, if you have recently installed a solar thermal system, you might still be eligible for a rebate - so do put your name on the waiting list.  DC Solar United Neighborhoods (DC SUN) and the Capitol Hill Energy Coop are working on some solar thermal pilot projects now, and more information will be available about those installations soon.  To learn more, below is the information sent by DDOE, along with a link to the program website where you can put your name on the waiting list.  Before moving forward, you will want to look over the new solar thermal program guide.  Also, be sure to review the list of registered, approved installers (getting multiple bids is always a good idea).   If you have questions, experiences to share on solar thermal installations, comments, or ideas on how DC SUN can leverage bulk purchases for solar thermal, please do join our discussion forum. 

Mike Barrette
www.dcsun.org



 ----------------------
DDOE email communication regarding solar thermal rebates

The District of Columbia‚s Renewable Energy Incentive Program Solar Thermal Incentive For 2012

Effective, Wednesday, April 11, 2012, and in accordance with the Clean and Affordable Energy Act of 2008, the District Department of the Environment Renewable Energy Incentive Program (REIP) will provide financial incentives to eligible applicants in the District to help install Solar Thermal systems.

Eligible projects may include, but are not limited to, the installation of systems on single and multi-family dwellings as well as commercial buildings and institutional organizations.

Renewable energy sources such as solar, wind, geothermal and/or biomass can help to reduce dependence on a shrinking supply of fossil fuels and greenhouse gases that contribute to climate change.     

We encourage you to apply to the program. Please visit http://ddoe.dc.gov/service/renewable-energy-incentive-program-reip-residents for more information.

Expanding Access to Solar in DC

As many of you know the central mission of DC SUN is to make Solar affordable and accessible to all residents of DC. We are working on a lot of different things and we always have room for more volunteers and leaders of more projects and initiatives. ACCESS AND AFFORDABILITY they must go together.

To give a sense of a few highlights.

1. Community Solar Legislation: This is our big push right now. In partnership with the Sierra Club and with technical assistance from Vote Solar and the Interstate Renewable Energy Council (IREC) we are working to make it possible to develop solar gardens. It will let people who live in apartments or rent participate in community solar gardens and "virtually" net meter their solar production to their energy bill. For more info see DC SUN website http://sites.google.com/site/dcsolarunitedneighborhoods/key-issues-and-committees/community-renewable-energy-act-of-2012 . Stay tuned for more updates soon!

2. Community emPOWERment Fund: This fund is made up of 'referral fees' from many of the installers that have a close working relationship with our members. The money goes to help non-profits, churches, schools and independent businesses go solar. It has the potential of helping reduce costs for organizations that our essential to our local communities. We are working with a number of non-profits based in Ward 8 that provide basic services such as food, childcare and medical services.

3. Non Profit Bulk Purchase: We are Developing a bulk purchase program for non-profits that want to go solar. By working together we will lower costs for all of the participants. We have been focusing mostly on organizations in Wards 7 and 8 but the project is open to non-profits city wide.

4. REBATE Program Phase II: We have proposed to the DDOE and the Sustainable Energy Utility (SEU) to develop a second phase solar rebate program for FY 13. We feel that we need to take care of the hundreds of people on the waiting list, AND we have proposed that 50% of the new rebate program be a higher level of reimbursement and be reserved exclusively with low income families. Combined with the Community Solar legislation-- this has the potential to expand solar much more broadly in DC

5. Proposals to the DC SEU: The DC SEU is supposed to develop programs specifically aimed at low income solar. We have been pushing them to engage with us in developing those programs. DC SUN met with the DC Department of Housing and Community Development (DHCD) and began discussions on ways to collaborate directly. We will be participating in their outreach fair this Spring and we are discussing the exciting possibility of adding solar to their low income roof replacement program. We have proposed to the SEU that they partner with DHCD to make this project a reality. It is a perfect match as DHCD has all of the administrative programs in place for low income roof replacement and the DC SEU has u- allocated funding for low income solar. DHCD is very enthusiastic about this idea. So far we have not gotten a response back from the SEU or DDOE which approves SEU programs.

6. Outreach in Ward 7: Ward 7 has been our top priority for outreach this year. We have worked in partnership with a number of local organizers including Irv Sheffy and Dennis Chestnut. We have recruited a dynamic new leader of the Ward 7 Solar Coop and we have been conducting outreach meetings in the Ward. We are actively looking for more Ward 7 participants to join and strengthen the Ward 7 Coop. The culmination of this effort will be the June 16th Solar Fair at HD Woodson HS. Stay tuned for exciting news alerts on this initiative over the next few weeks. Voliunteers needed for this effort.

In the works:
Innovative Financing for Low Income Housing and Community Solar...
Other bulk purchase programs?

Grab Your $6,000 Solar Rebate While You Still Can!

Now is the time to get in line for a DC Solar Rebate - before the funding is gone!  Prices of solar panels are at an all-time low, making the decision to go solar a great long-term investment.  A recent comparison of solar costs in the District indicates that the return on investment from installing solar panels varies from 6-10%.  The existing 30% Federal tax credit, along with renewable energy credits that accrue with your solar project, make the economics of solar very favorable. 

Strengthening the economic case for solar even more is the District government’s rebate program.  These DC rebates are designed to encourage renewable energy and foster a new homegrown industry (jobs in DC!!).  If you are able to get in on the DC solar rebate, your rate of return rises into the double digits, and your initial investment can be paid back in 6-7 years.  For many DC homeowners on the fence about going solar, the DC rebate is the incentive that motivates them to move forward.  Below, I examine your chances of getting a DC solar rebate – and it looks like time is running out!

As background, realize that the DC rebate program is a four-year program, which is now in its last year. DC is authorized to release $2 million dollars this year for rebates.  Rebates for a typically-sized system are about $6,000.  Rebates are issued on a first-come, first-served basis from a waiting list that you can join on the DDOE Website.

Last week, I asked the DC Department of the Environment for an update on their progress for releasing those funds now that we are one quarter of the way through the fiscal year.  It is important that these projects continue to be funded at a rapid pace, otherwise the program will expire before funding is released to those on the waiting list.  DDOE reports as follows:

•  $25,000 has been paid out (5 requestors have received checks) 
• $598,000 are in the final approval stages (86 requestors will receive checks soon)
• 383 additional projects are on the waiting list.
• DDOE reports that usually about 40% of those that submit the initial application actually decide drop out of the process.

Projections

• Assuming that 230 of the 383 people on the waiting list are funded at an average of $6,000, then the full $2 million will be expended and new entrants to the waiting list will not be funded.
• If the average rebate award and/or the acceptance rates are higher, some at the bottom of the existing waiting list may not receive funding from the $2 million pot.
• If the average rebate or acceptance rate is lower, new entrants to the waiting list may get funding (so act fast and get your name on the list). 

What If You Miss Out???

• It is possible that the DC Sustainable Energy Utility (SEU) will add funding for additional solar rebates – they added a small amount last year.   
• Community activists with DC SUN are calling upon the DC Council, Mayor, Department of Environment, and the SEU to work together to renew the DC solar rebate program for another four years.   
• DC SUN’s proposal is discussed in this blog post.

To help demonstrate the effectiveness and interest in this program, DC SUN urges residents to put their names on the DC Renewable Energy Incentive Program Waiting List (Click Here for a step-by-step guide on how to reserve your place the list).  This will help in our effort to get this great job creating program back on track for those residents that were not able to participate in the first four years of the program.  Because the solar rebate program is funded by electricity surcharges that are NOT scheduled to go away, DC SUN thinks that the extension of the program is an important way to promote a sustainable future for DC -- a future that involves renewable power coming from the people of the City.

Mike Barrette
Vice President - DC SUN

Neighborhood Groups Call on DC to Renew Solar Rebates and Quadruple Solar Installations

Rebates for residential solar installations in Washington DC have spurred job creation and have literally energized almost 1,000 homeowners across the City.  The highly successful four-year rebate program will end in 2012 – casting uncertainty over the prospects for solar energy in the District.  DC Solar United Neighborhoods (DC SUN - www.dcsun.org), a grassroots coalition of residents that promote solar energy in the District, are urging the City Council and Mayor to extend this effective program for four more years – allowing 4,000 new projects to be completed.  DC SUN believes that in four years, falling prices for solar panels will make the economics of solar so good, that rebates can be completely phased out.

To reach specific goals in four years, DC SUN is proposing rebate reductions, which will essentially double the number of installations supported each year until the program is phased out. In addition, DC SUN proposes that half of the solar rebates be dedicated specifically to go to low income homes.  DC SUN proposes that DC offer fixed rebates of - $4,000 per project in 2013, $3,000 in 2014, $2,000 in 2015, and $1,000 in 2016.  These rebates, in conjunction with available Federal tax credits and solar Renewable Energy Credits, will make solar an unbeatable investment that allows the City to shift to renewable, locally-produced energy.  The rebate program has created jobs in DC, and will create more jobs if renewed.  Atta Kiarash, Vice President of DC-based installer Solar Solution LLC, remarked that the rebate program has been essential to creating demand for solar projects -- indicating that it would be foolish for DC to discontinue a program with such broad support and a record of success.  He stated, "taking away this grant not only hurts DC homeowners, but also local businesses that provide services to residents."

While solar is still a good investment without DC rebates, our analysis shows that DC residents that are considering solar are looking for a 6-year payback period. Current solar prices offer about a 10-year payback period – and DC rebate program will tip the scales for many consumers (see www.dcsun.org “One Roof” solar price evaluation).  This investment will not require the City to raise new funding because the energy surcharge that exists on your bill is already being used to fund solar rebates.  Under DC SUN’s proposal, this existing funding stream would continue to be used to fund solar rebates.  

The existing program has created jobs in DC!  Atta Kiarash of DC-based installer Solar Solution, LLC has directly attributed the rebate program to job growth for his business, indicating that failure to renew the rebate program with such strong support base .  Atta Kiarash, Vice President of Solar Solution, LLC

DC SUN is urging the Mayor, Department of the Environment, and the Sustainable Energy Utility to implement this proposal plan as part of the Sustainable DC initiative.  DC SUN thinks the plan can be announced and implemented quickly with funding that is already coming into the City.  You can register your support for solar rebates as part of the Sustainable DC voting process.  As November 22nd, the continuation of solar rebates has received the second highest number of votes of all submitted ideas.

“One-Roof Solar Evaluation” Documents Dropping Solar Costs in DC

FOR IMMEDIATE RELEASE - 11/16/11

“One-Roof Solar Evaluation” Documents Dropping Solar Costs in DC

DC Solar United Neighborhoods (DC SUN), a consortium of cooperatives, has completed a cost comparison by inviting vendors to bid on the same job.  Four vendors participated in the bidding (Lighthouse Solar, SolarCity, Solar Solution and Astrum Solar), while several other vendors completed an online survey.  The DC SUN website documents the findings in more detail, provides bid information and provides an online evaluation tool for your solar project (click here for One Roof Evaluation information).

Key Findings  

• Now is the time to invest in a rooftop solar electric system in Washington, DC. Panel prices are a record-lows, installer competition is high, and Solar Renewable Energy Credits, along with a 30% federal income tax credit and the monthly savings in your electric bill all combine to allow you to do well while doing good.

• Return on investment can be far better than one can receive for most other investments. Compared to the current rates for savings accounts, certificates of deposits or stocks and bonds, investing is a rooftop solar electric system has great financial returns. The returns from solar electricity are tax-free in that money you don't have to spend on your electric bill is money you don't have to earn and pay taxes on.

• Even if you don't have cash upfront to purchase a photovoltaic system at this time, a leasing option can still reduce your monthly electricity bill. You'll pay PEPCO less and generate renewable energy on your own roof.

The Details

• Gross system cost (before any incentives) for purchasing a system averaged $25,061, ranging from $19,382 to $34,320.  Since 2009, the costs to install have dropped more than 20%.
• Net system cost (after tax and other incentives) for purchasing a system averaged $12,854, ranging from $9,922 to $16,784.   The reduced net costs factor in Federal tax credits and solar Renewable Energy Credits (sRECs) that vendors will help you leverage.
• For the lease options, the Initial System Cost averaged $3,639, ranging from $0 $7,278. Two of the lease options had annual payments, averaging $44/month, ranging from $516 to $816 per year.
• Simple Payback for purchase averaged 13 years, ranging from 12 to 15 years. For leasing, the average was ~11 years, excluding the $0 down option.
• Internal Rate of Return for purchase averaged 5.8%, ranging from 4.6% to 7.5%. For leasing, the average was 10.0%, excluding the $0 down option.
• Energy savings ranged from 29% to more than 100% - your vendor can help you with this calculation, which depends on system size, energy consumption patterns and weatherization.
• DC SUN suggests that weatherization be done prior to, or in conjunction with solar installations.  DC SUN also recommends that systems not be sized greater than 100% because current DC laws do not allow you to take advantage of “overproduction” that occurs over a year’s time frame.

Analysis

Solar is a great long-term investment and DC SUN believes now is the time to go solar!  DC SUN, in previous surveys and member polls, has determined that despite the favorable return on investment, that many homeowners are motivated by the need to re-coup their investment on a shorter time horizon than currently achievable – closer to 6-8 years.  Because the District of Columbia’s solar rebate program sunsets this year and has a full waiting list, explosive growth in residential solar will likely require a re-commitment to providing small rebates over the next 4 years to bring the payback down to the 6-8 year time horizon.  Within four years, the price of panels is projected to continue dropping – which will drive solar installations without additional rebates from the District.  If you want to urge DC to establish a new solar rebate program, click here and register your vote for new solar incentives.

The detailed results of each bid, and additional worksheets allowing consumers to calculate their own rate of return are now posted on www.dcsun.org.  DC SUN strongly suggests getting multiple bids before going forward.