Get payback on alternative energy investments

By Theresa Rose
North Forty News

There's a real sense of urgency when it comes to finding independent sources of power. Not only are the prices of fuel climbing day by day but the dwindling supply is forcing all kinds of very scary solutions.

The Poudre Valley REA magazine, Colorado Country Life, continually warns about the dwindling supply of energy sources. According to PVREA, between now and 2030, consumer demand for electricity will increase by 30 percent, meaning that the nation must add about 264,000 megawatts in power plant capacity. However, economic growth around the world has produced record orders for basic construction materials and as a result the cost of building coal and nuclear power plants in the United Sates has increased by 27 percent over the last year and is up 130 percent from 2000.

These facts regarding the traditional power grid are making such alternatives as solar and wind power more attractive to the average consumer with an average house and perhaps a small business. It is very possible to generate and store your own supply of electricity. There are even ways to feed excess power back into the grid and get paid for it.

But these systems require a financial commitment. One company advertises a 5,000-watt solar panel system for $27,984, and this does not include racking or wiring. The Skystream company offers a wind turbine and installation package for $13,500. These are worthy investments, comparable in price to that of a new car, but may be out of reach for many.

Help is on the way. Amendment 37, approved by Colorado voters and made effective in December 2004, defines renewable energy alternatives as including solar, wind, geothermal, biomass, small hydroelectricity and hydrogen fuel cells, any of which could be utilized for a family home or small business. The amendment mandates that utility companies offer customers a rebate and other incentives for solar electric generation. In 2006, the average Colorado home used about 8,000 kilowatt-hours. That's nearly 700 kwh a month or about 22 kwh a day.

Rick Coen of Bella Energy, a company that produces and installs photovoltaic systems for homes and businesses, spends a lot of time on the legal end of the alternative energy business and is currently working on a bill that would mandate standards for the photovoltaic industry in Colorado. As far as incentives are concerned, he said, there are no state incentives available at this time but federal incentives provide 30 percent of the cost of installation in tax credits, which can be rolled over for up to five years. Now is a good time for customers of Xcel Energy to take advantage of the rebates available for alternative energy sources.

PVREA offers a matching grant program but the funds have expired for this year. Depending on the budget, funding could again become available in January. PVREA also implemented true net metering, a process that spins the meter backwards for the consumer who uses alternative energy sources and sells the power back to the grid. The returns aren't huge, about $100 per year, but well worth the trouble.

Fort Collins Utilities offers a program known as ZILCH, which stands for Zero-Interest Loans for Conservation Help. This program offers loans of up to $2,300 for homeowners wanting to save energy. The web site fcgov.com has a page that lists all the possible upgrades that would be covered by this loan including insulation, solar heating, efficiency upgrades and many other possibilities involving energy, water or air quality.

A great way to start would be to get a home energy audit. An audit assists the consumer in determining how many energy dollars can be saved for what kind of investment, beginning with home efficiency, which would include all of the upgrades listed on the ZILCH web site.

The PVREA web site www.pvrea.com/programs/index.html and the Colorado State University Extension web site www.ext.colostate.edu/energy/index.html also have a wealth of information for consumers to decide what makes the most sense for their homes when pursuing alternative energy, along with loads of practical advice to make any home more energy efficient.