CIP hopes solar power will create demand

By Jonathan Starkey
Staff Reporter

The Center for the Inland Bays (CIB) installed a photovoltaic solar power system on their new building near the Indian River Inlet for a couple of reasons, said Sally Boswell, the center’s outreach and education coordinator.

After the center holds its grand opening on June 3, the system will serve as an educational tool for the community. And secondly, Boswell said, the center wants to help create a demand for the environmentally-friendly systems, especially in a time of tremendous growth and pollution surrounding Delaware’s watershed.

“We are trying to think of ways that building can be done so that it has a less impact on the watershed in a negative way,” Boswell said. “These things are only going to become more available if there’s a demand.”

And the Center has an untraditional ally in reaching that goal. Delmarva Power — the large electric supplier — is indirectly helping the Center create demand for the systems, which reduce the dependence on traditional sources of energy. With the continuing publication of Delmarva Power rate increases for residents and businesses starting May 1, people are scrambling for ways to save on energy costs.

Dale Davis, president of CMI Electric Inc., the Newark business that installed the system at the CIB building, said that he has seem this increasing interest for “green” technology such as solar power, especially considering the state rebates available.

Before Delmarva Power announced recently that its rates would rise dramatically, Davis said that his business received maybe one call a month regarding solar systems. Now, it answers three to five calls a week, talking to people interested in protecting the environment and saving money in the long run.

“If you’re not making your own power off the sun, you’re buying it from some coal and natural gas,” Davis said. “Most of these systems are installed by people who are interested in helping the environment and saving money.”

To install a solar system, a group of solar panels with imbedded photovoltaic cells are installed on the roof of the home or business. According to the Solar Electric Power Association’s Web site at www.solarelectricpower.org, sunlight hitting the photovoltaic cells dislodges electrons and creates an electric current that runs through the other side of the panel and into the building, creating electricity.

Most of the systems currently installed are grid-tied, however, meaning that the customer still uses backup electric from a company such as Delmarva Power. But during the day, the home or business will use its produced solar energy first, rather than energy from the grid, saving money in the process. Sometimes, the panels will even create more energy than is used, in which case it is sold back to the electric company at their rates.

“It’s called net-metering,” said Jim Kelly, a partner and the president of KW Solar Solutions, a Bear, Del., company that installs systems downstate. “When your system is making more electricity than you’re using, it flows back into the grid. You’re looking at pretty reasonable paybacks, not to mention the environmental benefits.”

Davis said that, in the Delaware coastal area, people can usually count on four hours of peak sun a day, when the panels create the most energy. A 4,800 watt system — a relatively small system the same size of that on the new CIB building — will create 4.8 kilowatt hours of electricity in each of those four hours. If Delmarva Power rates increase by the originally proposed 59 percent on May 1 for residents, the approximately 18 kilowatt hours that system could make in those four hours of operation would be worth just more than $2 per day.

Although that might not seem like much, those daily savings would translate into an annual savings of about $1,000 in energy costs. The real problem for most residents and business owners, however, would be the cost of the systems themselves.

On average, they cost about $8 per watt, making a 4,800 watt system a $38,400 system when it comes to installation costs.

Because of the expensive upfront costs, most people usually have a moral reason for installing the system, as well as economic incentive, Davis reiterated. Even smaller systems will likely cost more than $20,000. They will pay their owners back, but it will likely take a decade, he said. But — like geothermal systems — the cost of equipment can be rolled into a 30-year mortgage and, in that case, the savings on electric will likely outweigh the cost in the monthly mortgage bill.

Also like the geothermal systems, Delmarva commercial and residential customers can receive a rebate from the Delaware Energy office for installing the green technology, according to Scott Lynch, the office’s energy program planner. Unlike geothermal systems, the state rebate for using solar systems is usually about 50 percent of the total cost, but there is a ceiling on the rebate. Home owners can receive up to $22,500 and businesses can receive up to $250,000 from the state, and there are federal tax credits available for using solar power.

Considering that someone could roll the highly-rebated cost into a mortgage, produce their own energy and, therefore, help save the environment and reduce standard energy dependence, solar is quite the attractive option, said Dale Wolf, a partner in KW Solar Solutions.

“A lot of people are looking for information,” he added, saying that he will likely install his own personal system. “We’re steady going out doing evaluations. People are getting more in tuned with what it has to offer”

— This is the second of a three-part series, exploring alternative sources of energy. Next week, the Coastal Point will print a story on wind energy systems. On March 31, the paper will print an extra story, looking into other, more general, ways to conserve and save on energy costs.