Photovoltaics Gaining Acceptance As Residential Power Source

Installing solar systems for heating water makes good sense both financially and environmentally...now more than ever, given the importance of decreasing dependence on fossil fuels and the increasingly generous tax credits and rebates available. But what about going one step further and installing photovoltaic systems which can produce electricity for additional residential and commercial applications.

In February of this year, HECO increased its consumer rebate from $750 to $1,000 for qualifying new and retrofit solar hot water systems installed by HECO-approved solar contractors. In January 2006, Federal residential tax credits for solar water heating and photovoltaic systems purchase and installation were issued at 30 percent, with a cap of $2,000 for both. An existing State tax credit of 35 percent is applicable for the purchase and installation of both solar water heating and photovoltaic electricity producing systems for residential tax payers, with a credit limit of $2,250 for solar water heating systems and up to $5,000 for photovoltaic systems installed on or after July 1, 2006.

The tax credits combined with the HECO rebate can bring the cost of a solar water heating system down to about $1,800, almost a third of the average system cost, which typically ranges from $5,000 to $5,700. According to HECO, a family of four can save an estimated $500 a year on their electricity bill, meaning the system pays for itself approximately three years after installation.

The upfront cost of a photovoltaic system is higher than a solar water heating system...how much more depends on the type of system installed.

Myron Thompson, president of 21st Century Technologies Hawaii, designs and installs solar water heating and photovoltaic systems, as well as wind generators, and other renewable energy systems. The company is HECO-approved, includes a LEED-certified professional, and is one of only a few in Hawaii that offer the full range of renewable energy technologies.

"While solar water heating systems utilize solar panels simply to preheat water which is stored in a tank, a solar photovoltaic system actually creates electricity," Thompson said. "The solar photovoltaic panels are normally mounted on the roof and send DC electricity to a inverter, which turns it into AC power distributed throughout the home through standard electrical wiring. The photovoltaic system ties right into the home or business and provides power generated from the sun. If the system produces more electricity than is consumed at any moment in time, the excess goes back into the electrical grid. So you will have the electric meter spinning backwards at times. This allows owners of such systems, using what is called net metering, to reduce the amount of their electricity bill."

Thompson explained that there are two basic types of solar photovoltaic systems with the capability of connecting to the grid...one that stores the power in batteries and the other that simply puts any extra power back into the grid. The grid-tied version that utilizes battery storage can supply power to various appliances in the home such as lighting, refrigerator, microwave oven, and computers should a power outage occur. This type of system is more costly than the non-battery system which can be installed for about 25 percent less. "Provided there is sufficient useable solar roof space, a system can be designed to reduce electric bills almost to nothing...there’s a small service charge for being a customer of the utility. When this occurs, you have what we call a ‘zero energy’ home or business," Thompson said.

The warranty for photovoltaic panels is usually 25 years, but Thompson estimates the life expectancy as closer to 40 years.

He notes that real estate appraisers have indicated that a $20,000 photovoltaic installation could increase the value of the home by approximately $16,000 and that Realtors are recognizing it as a selling feature.

Thompson believes the use of photovoltaic systems in both residential and commercial applications will grow exponentially over the next five to ten years. The technology is already used widely in major European countries, particularly Germany, France, and Italy, and some Asian countries, such as Japan and China.

21st Century has recently completed installations for a Kailua client who has been able to go off the grid completely with a solar hot water heater and a photovoltaic system with full battery backup. The client, an owner/builder, was able to partially offset the big upfront investment by eliminating the trenching necessary to lay power lines.

Currently, Thompson is installing a photovoltaic system and solar hot water heating system at a Kahala home being remodeled b y H o m e w o r k s Construction. "This is one of those nice Kahala homes that the owners chose to remodel rather than knock down and rebuild, as so many out-of-State buyers have been doing. Homeworks will replace the existing roof and we will remove a previous solar water heating installation along with the old tank and pipes in the roof...those in the walls can be retained. The photovoltaic system will be connected up with the existing wiring."

According to Thompson, the new systems are less conspicuous than those installed in the past; the photovoltaic panels are smaller than those used for solar water heating. Photovoltaic shingles, which Thompson's company can also install and service, resemble regular roofing shingles and are totally inconspicuous. "Aesthetics has been a big concern of the industry for some time and it's being addressed by both the engineers and the architects...we all want to see this technology become mainstream."

In addition to designing, installing, and maintaining renewable energy systems, 21st Century Technologies Hawaii also has a consulting arm. "One of our services is a full home energy audit. We assess the condition of all the appliances, lighting, and the other energy and water systems in the home, identify the biggest energy consumers, such as an old refrigerator, then design a new system,quote the cost, and estimate the length of the payback period," Thompson said.

The son of Hawaiian community leader, the late Myron "Pinky" Thompson, Thompson became involved in renewable energy and green building industries more than 10 years ago. He founded 21st Century Technologies Hawaii in 2004. In addition to solar energy systems for private homes, company projects also include residential subdivisions and commercial developments.

The company was recently contracted by the owner of a parcel of vacant land in Maunalani Heights to design the green building elements of a four-home subdivision working in conjunction with an architect. "We plan to utilize all feasible green technologies...the owner wants this project to exemplify what can be achieved in terms of sustainability when you apply both the state-of-the-art technologies and green building techniques in a residential development," Thompson said.

"We have just recently completed a second set of photovoltaic panels on the Maui home of Pacific Biodeisel founders, Bob and Kelly King, who have pioneered the use of recycled cooking and industrial oils to create biodeisel fuel...a huge contribution to the development of additional alternate energy resources.

"On the consulting side of the business, 21st Century Technologies Hawaii continues working with a large international hotel developer from China, Shangri-La Resorts, most recently on a resort hotel in the Maldives. The interesting aspect of this project is that it represents a new awareness of the importance of ‘going green’ in that part of the world. The movement toward renewable energy technologies is growing worldwide. Fundamentally, most people want to preserve and protect the environment... they know it’s the right thing to do."