The cost of the residential solar system has come down dramatically in the past five years. With 4 separate grants and incentives, Anne Arundel County residents are catching on.
LET THE SUNSHINE IN – Residential solar energy systems are being installed every day in Anne Arundel County where local business owners Roger Perry and Rick Peters are working hard to keep up with rising demand. Their rapidly growing 18 person firm, Solar Energy Services, Inc. (SES) installs and services solar electric, solar water heating, and solar pool heating systems in Maryland and DC, with the majority of their residential customers located within AA County. When asked why he thinks solar has taken off even in these tough times, SES president Rick Peters said there are many drivers, but economics lead the way. “Rising utility bills, decreasing cost of solar panels and generous financial incentives all combine to give homeowners the opportunity to pay off 25yrs worth of BGE energy in about 6 years, not to mention the environmental and societal benefits.”
One House – two solar systems:
Most solar shoppers are unaware that there are two types of solar energy for the home. Whole house solar electric, commonly referred to as PV (Photovoltaic), is what most people think of as solar energy. However, a solar water heater can offset 75% of your annual hot water energy. Roger Perry quickly points out that if you have a large sunny roof, there is plenty of room for both systems. He and Peters both have solar water heating and solar electric on their homes.
The clock is ticking…
Each of the 4 different substantial incentives for a residential property owner in Anne Arundel County currently has a limited life-span, with the idea that solar can be competitive without them in the future. Peters notes that the current average payback on a solar electric system is about 6 years, for a system that lasts 25 – 30 years. With solar hot water, a 4 year average payback with a similar system lifespan. The payback is even faster if you have a large family (lots of hot water use) or if you need to replace your water heater anyway. Rick Peters leaves us with some food for thought, “You can invest your money in a lot of different places these days, but most are very uncertain, or producing a very low return. On an annual basis, the return on solar energy is quite predictable, and the economic return is hard to beat with any financial investment strategy.”
|TYPICAL 5kW SOLAR ELECTRIC (PV) SYSTEM|
|Estimated System Cost||$27,500|
|Federal Tax Credit||$8,250|
|MD State Grant||$2,500|
|AA County Property Tax Credit @ 75%||$1,875|
|Net Cost to Homeowner||$4,875|
|Payback in Years||6.09 yrs|
|25 yr Annual Energy Savings||+800 per year|
|25 yr Lifetime Return on Investment||>250%|