Northwest Renovation Magazine

A Home Improvement Magazine

Rising energy costs, increasing concerns about climate change, and an unprecedented financial incentive package in Oregon have made 2008 the time to go solar.

Yes, Portland is sunny enough for solar. The rainy Willamette Valley gets the same amount of average annual sunshine as Germany, which leads the world in solar energy production. The typical solar electric system (also called photovoltaics or PV) in Portland produces around 20% to 30% of a home’s annual electricity needs.

Photo by John Cunningham

Unlike conventional energy sources, solar energy produces no greenhouse gases. A 3-kilowatt PV system will offset the emission of about 3,500 lbs of greenhouse gases. That’s the equivalent of not driving your car for four months.

While solar electric systems are still pricey, cash incentives from the Energy Trust of Oregon and tax credits from the Oregon Department of Energy and the federal government can cover as much as half the cost.

For example, a 3-kilowatt PV system costs about $30,000. The Energy Trust incentive for that system is about $6,000, the Oregon tax credit is another $6,000, and the federal tax credit is $2,000. Total money back to you is $12,000, leaving you with a lowered balance of $16,000.

If the price for PV still leaves you with sticker shock, you might think about installing a solar water heating system instead. The cost is less than half that of PV. After incentives and tax credits, the final cost to you can be as little as $4,300.

If your home is bustling with children, you know you tend to run the shower, dishwasher, and clothes washer every day. For you, solar water heating can be a more cost-effective solution. Water heating accounts for about 15% of the average household’s energy use, second only to space heating and cooling. You can expect a solar heater to heat about half of your hot water needs over the year, and provide enough hot water from May through October to heat over 90% of your home’s hot water.

Still not convinced? The federal government’s Investment Tax Credit (ITC) is set to be reduced at the end of 2008. If Congress fails to extend the ITC this year, the financial incentives for solar may not look as good in the future as they do now. In addition, if you operate a legal home business, your business may be able to purchase, own, and maintain the system and use the commercial tax credits to purchase the system. The commercial tax credits are considerably more attractive. Be sure to check with your tax advisor to determine if this applies to you.

Before you buy:

  • Consider system options. What system best fits your budget and needs?
  • Is your roof ready for solar? If you are looking at a roof-mounted system, your roof should have at least 15 years of life remaining.
  • Do you have adequate sunshine available? Roofs with little or no shading work best.

Remember to take basic energy efficiency steps before installing a solar electric system. Switching from incandescent to compact fluorescent bulbs (CFLs), using highly efficient appliances, and adding insulation will reduce your overall energy demand. Then you’ll need a smaller solar electric system, which will cost you less.

The Solar Now! campaign connects Oregonians with the resources and assistance they need to choose solar energy. The Solar Now! campaign holds monthly workshops. For more information, please visit: http://www.solaroregon.org/resources_education/workshops.

Solar Now! is brought to you by Solar Oregon, City of Portland Office of Sustainable Development, Energy Trust of Oregon, and the Oregon Department of Energy. Call 1-877-546-8769 or go to www.SolarNowOregon.org.

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