Bright idea: City sponsors net-metering pilot program

By Cherry Sokoloski
Fossil Creek Current

Quietly, efficiently, and with the help of Old Man Sol, 10 property owners in Fort Collins are producing some of their own electricity with photovoltaic panels. It's called "parallel generation" of power, and those participating could be considered pioneers in the post-oil world.

The property owners benefit from "net metering," meaning if a home or business is generating more electricity than it is using at that moment, the meter literally spins backwards. At the end of the month, the net amount of electricity used is measured - and it may be negative, providing a credit for the customer.

Fort Collins Utilities is encouraging this experimentation with solar power through its net-metering pilot program for small systems. Currently, one business and nine residential customers are involved in the project, and there's room for up to 25 participants.

The city's pilot program began in early 2005 and will run through the end of 2009, at which point the net-metering option will likely be opened up to anyone wanting to invest in the necessary equipment.

Program's history

A decade ago, Rich Shipman of south Fort Collins was one of several utility customers who wanted to generate his own electricity with solar power. In 1998, he approached the city about the idea, and Gary Schroeder, an energy services engineer with the utilities department, helped him set up a photovoltaic system for his home. In 2005, fellow engineer Doug Swartz facilitated the birth of the pilot program.

"Rich really helped plow the ground for the pilot project" by becoming the first Fort Collins Utilities customer to be connected to the grid, said Schroeder.

Shipman, who was a physics student in college, said he invested in a solar array as a science experiment. "It became obvious that nuclear energy was too dangerous and coal and gas were too expensive," he stated. "In Colorado, we have abundant sunshine and plenty of room - why aren't we doing this stuff?"

At the time, Colorado had renewable energy rebates in place, so Shipman decided to "take some money and throw it toward that green opportunity." The state rebates are no longer available.

Shipman and Schroeder worked together to get the details ironed out, including applying for the necessary building permits for the electrical system. The permits are important, Shipman pointed out, to ensure that necessary safety features are in place for utility linemen

Shipman's photovoltaic array, which is about the size of two sheets of plywood, sits on the south-facing roof of his garage. It has a capacity of about 0.8 kilowatt, which is the power needed to operate eight 100-watt standard light bulbs. His system cost about $10,000 in 1998, or $7,500 after the state rebates.

Steve Steinbicker, owner of Architecture West of Fort Collins and another participant in the pilot program, put a photovoltaic array on the roof of his business last year. His firm promotes sustainability and green design as "better long-term for the environment and our kids," so he decided to make a statement by investing in alternative energy himself.

Steinbicker's photovoltaic array has a capacity of 3.6 kilowatts and cost $26,000 to install. He benefited from an Xcel Energy rebate program that was in effect last year, as well as tax credits, so his net cost was just $7,800.

On the weekends, when Architecture West is closed, the solar system sends electricity back into the system, spinning the meter backwards.

Slow payback

Renewable energy requires a big investment, despite the fact that sunshine is free. "You have to be dedicated," said Norm Weaver, an energy services engineer with Fort Collins Utilities who now runs the pilot program.

The initial cost of photovoltaic panels and other equipment is large. In Shipman's words, "I'm never going to pay it off" with energy savings.

Once the investment is made, however, net-metering customers do save money on their monthly electric bills. In Shipman's case, his average energy usage has gone from an average of 10 kW per day to just 2 kW per day. That reduction is partly due to solar power and partly to energy-efficient appliances and lifestyle changes.

The larger the photovoltaic array, the more electricity the system can generate. In most cases, pilot program participants generate more energy than they need in the summertime, so by the time fall arrives they have built up energy credits. Then, some of those credits are used up during the darker winter months.

The program is run on a 12-month basis, and all credits must be used up within that time frame. Only one pilot project participant is approaching "net zero" in energy use. Others, depending on the size of their solar arrays, "are knocking off 20 to 30 percent of their electric bills," according to Weaver.

Besides the solar array, a person must buy an inverter to change the power from direct current to alternating current. Some local electric shops are qualified to install the equipment, Weaver said, and solar equipment companies also have their own installation teams.

Besides the traditional PV arrays, some companies sell systems that look like shingles or metal roofing. However, these are not as efficient as the regular panels, Weaver said.

Weaver said the cost of the PV systems ranges from $6,000 to $10,000 per kilowatt of capacity. The systems in the pilot program can generate from 1 to 4 kW. There are some incentives to offset the costs, he noted. Businesses and homeowners can qualify for a federal tax credit of 30 percent of the cost of the solar equipment. Xcel Energy, as required by Colorado's Amendment 37 that passed last year, offers incentives to its electrical customers that offset about half of the solar investment cost. Xcel serves electrical customers in some areas around Fort Collins.

While renewable energy is expensive in the near term, Weaver noted that the city "needs to gain experience" in this area because of growing concerns about global warming, pollution and the finite nature of fossil fuels.

City goals

Fort Collins has set its own goals for using renewable energy. Currently the city gets 3 percent of its electricity from renewables, and that number should rise to 6 percent within a year. The city's goal is to arrive at 15 percent by 2017. For the city utility, the most cost-efficient renewable is wind power, which it purchases from Platte River Power Authority.

Weaver has some advice for folks who may be considering generating their own electricity with PV arrays. Energy conservation - including changes in lifestyle, insulation, stopping air leakage and using compact fluorescent light bulbs - is easiest and cheapest and should be done first. In other words, said Weaver, "Eat your energy efficiency vegetables before you do renewable energy for dessert."

The city runs occasional cost-saving promotions through local retailers on compact fluorescent bulbs, which are much less expensive than just five years ago and use about one-fourth as much electricity as incandescent light bulbs. Weaver said another such promotion will likely be offered this fall.

Poudre Valley REA also has a net-metering program, which was put into effect earlier this year. The company has three different rate tiers depending on the size of the system, and about six customers are currently involved. Anyone wanting more information about the program may contact staff engineer Jim Byrne at 282-6430.

Anyone interested in participating in the Fort Collins pilot project may contact Weaver at 416-2312.