Posts Tagged ‘residential solar hot water’

North Carolina Utility Study: Solar Hot Water Saves 63% of Water Heating Bill

Friday, March 30th, 2012 by Solar Fred

Progress Energy, a Raleigh, NC-based utility, has completed a previously announced study showing that its residential customers could save $235 a year, or 63% of the water heating portion of their electric bill. The utility also offers commercial solar thermal incentives, as well.

Few people beyond solar thermal advocates realize that heating water with an electric hot water tank is tremendously inefficient, wasting both energy and money. So, it’s great to see a utility (in cooperation with the North Carolina Utility Commission) conduct a study on solar water heating savings.

The pilot program and study gave 150 Progress Energy customers a $1000 rebate toward the cost of buying a solar hot water heater. (Other North Carolina utilities currently offer cash rebates between $400 and $850 for residential solar thermal systems.) Progress estimated that over 15% of a typical home’s electric bill is used for heating water.

The costs of installing the solar thermal systems averaged $7,271 per household, ranging from $4,000 to $12,375 per home. However, that was before rebates and other incentives.

In addition to the $1000 rebate from Progress, homeowners also qualified for the 30% federal investment tax credit (ITC) and an additional 35% state tax credit of up to $1,400, which reduced the overall solar installation cost by about half.

While the Progress Energy’s residential pilot program has currently expired, Progress is still offering commercial solar water heating cash incentives. The utility will pay $20 for each renewable energy credit (REC) generated by the solar water heating system for a period of 10 years.

One REC represents one megawatt-hour (MWh) of avoided solar electric costs. To be eligible for the incentive, rooftop-mounted solar water heating systems must be installed in North Carolina (or South Carolina) on commercial property owned by a non-residential customer of PEC, and must have between 1,200 and 4,000 square feet of collector area (roughly 30 to 100 solar thermal panels). Solar thermal power purchase agreement (PPA) providers are also eligible.( North Carolina’s Duke Energy utility has a similar solar thermal program.)

Those generous incentive means that North Carolina apartment buildings, hospitals, hotels, and nursing homes are ripe for solar hot water installations.

To recap, a North Carolina utility study shows that North Carolina residential solar hot water heaters are cost effective, especially for solar electric customers. In addition, commercial customers can still benefit from cash incentives provided by Progress Energy.

If you have any questions about these programs, please contact us at Free Hot Water, and we’ll be happy to help.

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Posted in 30% Investment Tax Credit, Hotel Solar Hot Water, North Carolina Solar Hot Water, pre-engineered solar thermal systems, Residential Solar Hot Water, Solar Business Resources, Solar Hot Water, Solar Hot Water for Apartment Buildings, solar hot water for hospitals, Solar Hot Water Value, Solar Rebates, Solar Tax Incentives, Solar Thermal & Solar Hot Water News, Solar Thermal Economics, SRCC OG-300 solar systems | 1 Comment »

Solar Water Heating Is Hot in MA, HI, and AZ…. Not So Much in CA

Sunday, September 25th, 2011 by Solar Fred

The latest SEIA/GTM Research U.S. Solar Market Insight report is out, and it includes news about California, Massachusetts, Hawaii, Arizona, and Maryland. Here’s a summary of the report and a bit of our own perspective.

Arizona. Arizona’s solar hot water market remains quite strong, according to SEIA/GTM, with most utilities offering production incentives that can cover up to half of a system’s costs. Nice. SEIA’s report is projecting that Arizona will be a leading market by the end of 2011. We’re crossing our fingers for our Free Hot Water dealers in Arizona. Of course, if we can help with engineering or components, please let us know.

California. The up to $1,875 incentive for residential and $500,000 for commercial and multi-family structures are still available here in California, and that’s good and bad. It’s good because California solar hot water installers still have generous incentives to offer customers. On the negative side, the incentive availability also says that consumers and commercial customers are still hesitant about investing in solar hot water.

In our view, the CSI administrators and CALSEIA need to provide more consumer awareness and education for solar hot water. Free Hot Water is doing our best to get the word out, but we can’t do it alone.

Hawaii. The Hawaiian residential solar water heating market came back to life in Q1 2011 thanks to a residential solar thermal rebate of up to $1,500 per OG-300 system. And then… the rebate was subsequently reduced to $750 per system.  However, due to Hawaii being 100% dependent on imported fuel from the U.S. mainland, solar hot water still remains an attractive option for homeowners, so sales are still strong. Speaking of OG-300 systems, Free Hot Water has three new OG-300 lines with just-reduced prices, making solar hot water systems even more cost effective for Hawaiians and our partner installers there. He mea iki. (You’re welcome.)

Maryland.  As Free Hot Water reported a few months ago, Maryland is now allowing solar water heating systems to generate SRECs (Solar Renewable Energy Certificates). However, only new systems installed after June 1, 2011 qualify. Second, only SRECs generated after January 1, 2012 are eligible.  SEIA’s analysts are saying that this policy won’t do a hell of a lot for Maryland’s solar water heating market, but they note that other Eastern states may follow Maryland’s lead, and that could grow the overall Eastern U.S. market significantly.

Massachusetts. In 2010, Massachusetts launched a pilot solar water heating rebate program with a generous $3,500 maximum rebate for a residential systems and up to $65,000 for commercial systems. Rebates are based on the number of collectors in the system and their SRCC ratings. (FYI, Free Hot Water’s SRCC ratings for our collectors are available in our online catalog.) We’re rooting for Massachusetts to continue and expand the program. The state has grown tremendously with solar PV installations, and we hope the state adds solar hot water to its aggressive cleantech growth.

That’s the latest update from SEIA/GTM Research. These updates come out quarterly and cover the entire solar industry. We’ll sum up the solar water heating side and add our own perspective as each report comes out. If you’d like to read the entire executive summary report, click SMI-Q2-2011-ES (pdf).

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Posted in SRCC OG-300 solar systems | No Comments »

Top 5 Payback States for Home Solar Hot Water Systems

Tuesday, September 6th, 2011 by Solar Fred

In celebration of our 12 new SCRCC-approved OG-300 solar water heating systems, we decided to use Free Hot Water’s handy-dandy solar hot water cost calculator and find out which states provided the fastest payback time for residential solar water heating.

We used the calculator and went through every state. For each state, we assumed the same type of roof installation and a closed loop OG-300 retail price for a family of four with a gas heat backup.

Before you glance down at the list, some caveats:

  • I have to say that I was surprised that Hawaii was not at the top of the list. Hawaii had a 14 year ROI, which is surprising, since Hawaii imports virtually ever drop of oil, coal, gas, and propane. As a result, fossil fuel energy prices are extremely high there and so are utility rates.  My guess is that our engineers have input a national price for gas, which is relatively low. So, it appears we need update the calculator’s rates for Hawaii’s typically high gas prices.
  • Second, though not listed below, South Dakota came in at number 1 with an ROI of just 1.3 years! I found this extremely surprising. Searching the DSIRE database, I couldn’t find the South Dakota inventive program that corresponds to the generous rebate indicated in our calculator.  So, I’m guessing this is a glitch and we have to update our database.
  • The map above reflects the insolation potential (amount of yearly sunlight) for each state, but does not reflect payback, which incorporates many factors beyond hours in the day.

Other things to keep in mind:

  • Remember that all homes qualify for the 30% Federal Investment Tax Credit. More on how that’s calculated here. However, except in the U.S. territory of Puerto Rico, pool solar water heating systems do not qualify for the 30% tax credit.
  • Also remember that our calculator automatically inputs retail prices, so if you’re a Free Hot Water certified installer reading this, expect that our calculator’s price will be discounted for you.
  • Finally, state and utility rebates come and go very quickly. We’ve noted that for Connecticut’s rebate, which is technically still in effect, but is now awaiting refunding for the state or the Feds.
  • This list doesn’t take into account the brand new SREC program for Maryland, which may actually push it into this contender list.

With all of the above in mind, we give you our top 5 states (or territories) for the fastest ROI for residential solar water heating,

Residential Solar Hot Water ROI Payback in Years

State                           ROI (years)    Notes

1. Connecticut            7.96                Program awaiting new funding

2. Massachusetts       8.77

3. Puerto Rico            10.42

4. Louisiana               10.72

5. Arizona                   10.85

Typically, residential systems last for 20 to 25 years. The majority of states in our calculator’s estimates came in at around 13 to 15 years, so no matter how you slice it, residents will still recoup their investment. If gas prices rise more sharply in the next few years, then the years to payback will be even shorter for all states. Naturally, new or expiring incentives will also affect rankings. In short, this is only a snapshot for residential ROI. In the future, we’ll try to keep you updated about any new incentives that come along.  Thanks for reading.

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Posted in Solar Hot Water Value, Solar Rebates, Solar Tax Incentives, Solar Thermal & Solar Hot Water News, Solar Thermal Economics, SRCC OG-300 solar systems | No Comments »

Now you can have “Liberty,” “Freedom,” or “Independence” Installed on Your Roof

Wednesday, August 31st, 2011 by Solar Fred

More solar water heating news from Free Hot Water HQ: The Solar Rating and Certification Corporation (SRCC) has approved a total of 12 new OG-300 residential solar water heating systems manufactured by Free Hot Water.

The certifications include 12 closed-loop solar hot water systems. All models now qualify for solar thermal rebates in California and many other states.

In addition to the SRCC certifications, we’re announcing some memorable brand names:

  • Kits that include Free Hot Water’s 4000 series of solar collectors are part of the Liberty line.
  • Kits that include the company’s medium sized 5000 series collectors are part of the Freedom series.
  • Finally, kits that include the company’s larger solar collector, the FHW-7000 model, are now part of the Independence line.

Our COO and co-founder, Paul Burrowes, explained the reasoning behind the new branding. He said, “A lot of solar manufacturers just give their OG-300 systems a sequential number after their company’s name. We wanted our new kits to represent the homeowner’s desire to increase their energy independence—as well as their utility bill independence.”

As a result of the new branding, Free Hot Water’s national network of installers can now say that they install “Freedom,” “Liberty,” and “Independence” on their customers’ roofs.

The 12 various approved models of Liberty, Freedom, or Independence incorporate options for installing on a flat roof or a pitched roof. All approved systems feature:

  • Free Hot Water’s SRCC-rated OG-100 collectors (either FHW 4000 series, FHW 5000 series, or FHW 7000 series.)
  • A storage tank with a solar heat exchanger.
  • A pump station controller with temperature and pressure gauges, check valves, ball valves, fill and drain valves, and differential controller.
  • Flashing for preventing roof leaks.
  • Racking for flat or pitched roofs.
  • Freeze Protection via either a drain back system or a closed loop glycol system.
  • Ability to connect to either a gas or electric back up system.
  • Mounting hardware for the appropriate installation.

The OG-300 pre-engineered kits contain either two collectors for standard homes, while others are designed with three collectors for larger homes or small commercial applications.

All Free Hot Water systems include a 10-year warranty on Free Hot Water collectors, as well as limited warranties on other components.

For more information about our OG-300 lines, visit shop.freehotwater.com.

 

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Posted in Residential Solar Hot Water, Solar Hot Water, Solar Hot Water Value, Solar Thermal & Solar Hot Water News, SRCC OG-300 solar systems | 3 Comments »