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Solar Energy Services
1514 Jabez Run
Millersville, Maryland 21108

info@solarsaves.net

410.923.6090

Question of the Day: Will the new Administration affect my Solar Incentives?

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Should we be concerned about the new Republican Administration and the future of Solar Power?

Solar Energy, Residential Solar Panels ,Solar ServiceDue to its tremendous growth, popular appeal, and ever improving economics, solar power enjoys increasingly bi-partisan support on the Hill and in Governors offices around the country.  Due to this, we predict very little, if any, impact on solar growth from the current Administration and/or a Republican Congress.  To help explain this, let’s look at the three main drivers of successful solar economics for the typical solar consumer – Federal Tax Credit, SRECs, and cost of solar equipment:

Federal Tax Credit:  30% of system cost.  This has been an enormously successful tax incentive enabling wide scale deployment of solar on both a utility and distributed scale.  Economies of scale have helped to drive the cost of solar; while further increasing demand – allowing the solar industry to grow exponentially.  This has been applauded by both major political parties for the private capital investment opportunities and huge job growth in the solar sector.   In fact, the US solar industry currently employs more people than the US oil, gas, and coal industries combined.

The 30% solar investment tax credit (ITC) was extended by Congress (many of whom were Republican) in late 2015 and is designed to decline in future years to eventually fall back to a permanent 10%.  The ITC schedule from the December 2015 legislation is as follows:

2016 – 2019: The tax credit remains at 30 percent of the cost of the system. This means that in 2017, you can still get a major discounted price for your solar panel system.

2020: Owners of new residential and commercial solar can deduct 26 percent of the cost of the system from their taxes.

2021: Owners of new residential and commercial solar can deduct 22 percent of the cost of the system from their taxes.

2022 onwards: Owners of new commercial solar energy systems can deduct 10 percent of the cost of the system from their taxes. There is no federal credit for residential solar energy systems.

In a nutshell, most in the solar industry believe it would be political suicide for the majority of congressional representatives to vote for a repeal of this enormously successful Investment Tax Credit that is scheduled to decline anyway.  There are too many solar jobs and solar projects in Republican districts for the majority of Republicans to consider advocating for repeal.  The horse is out of the barn and solar is winning!

SRECs: Maryland and Washington DC offer Solar Renewable Energy Credits to solarized homes and businesses.  This is a State/District-mandated incentive that, if anything, shows signs of expanding among the 29 States that have currently adopted an RPS (Renewable Portfolio Standard).  This is largely due to the fact that State Houses wish to support the exponential renewable energy sector job growth amidst the scheduled, declining Federal Support.

Solar Technology Costs:  Advancing technology, manufacturing scale, high adoption rates, and investor confidence in solar technology continue to drive down solar project costs.  We don’t see this momentum changing anytime soon.

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First Community Solar Project in Washington DC

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PRESS RELEASE

For Immediate Release

Tuesday, January 10th 2017

 

Father/Daughter Team Up for DC’s First Community Solar Project

WASHINGTON DC:  January 10th, 2017.  DC Resident Rebecca Mann and her father Neal Mann are poised to be the FIRST two PEPCO customers to take advantage of Washington DC’s newly revised and adopted Community Renewable Energy Facilities of 2016 (CREF).  After a process lasting three years, the District has finally worked out all of the kinks that enable D.C. residents to benefit from solar, even if they can’t put panels on their own roof.  Community solar offers the benefit of solar to community members (subscribers) who can’t, or prefer not to, install solar panels on their homes. This also gives renters an option to purchase solar power.

For the flagship project, Rebecca Mann is unable to install a solar power system due to limited roof space and shading constraints.  Located one mile away – her father, Neal Mann, is currently having a 16.24kW grid-tied solar power system installed.  This will generate enough power to offset a good portion of both his own, as well as his subscribing daughter’s, PEPCO utility bill —  at full retail price.

The project is currently under construction and is poised to be interconnected and officially net-metered by the end of January 2017.

Solar Energy Services, Inc. is one of the region’s longest running solar installation companies.  Founder Roger Perry has been in the solar energy industry for over 35 years.  His partner, Rick Peters, is a current Board member and past President of MDV-SEIA.  Locally owned and operated, SES installs both residential and commercial solar PV (electric), as well as solar thermal (hot water) systems in Washington DC, Maryland and Virginia.

Useful Links

PEPCO’s Green Power Connection and CREF

History of Washington DC’s Community Solar

For further information, contact:

Lisa Walsh 

Solar Energy Services, Inc. 

410-923-6090 X304

443-253-6941 Direct

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Washington DC Solar Owners and Selling Solar RECs Upfront

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Solar Service ,Home Solar Panels

Before we dive into this conversation – let’s be clear that SRECs (Solar Renewable Energy Credits) can be the most confusing part of figuring out the economics of a solar project.  Let’s also be clear that – as with anything confusing, (as well as possibly boring) – the temptation is to remove the confusion as quickly as possible.   In the world of solar installation and selling SRECs this sometimes translates to simply selling up to 15yrs of SRECs all at once to a solar installation company, who then installs the system at a bargain price.  Buyer beware – the immediate gratification of selling all of your SRECs in one fell swoop could be misleading.   When it comes to How and When you get paid for your SRECs “â€Ķthe Sooner the Better”  may not be a sound financial strategy.

That saidâ€ĶLet’s talk Solar Renewable Energy Credits in Washington DC.

Both Maryland and Washington DC, along with eight other states have enacted the Renewable Portfolio Standards which specify that a certain amount of the renewable energy generated within that state must come from solar.   Whether residential, commercial, or institutional, each time a solar system generates 1 Megawatt hour of energy – the solar system owner generates 1 SREC.  This SREC is then sold via aggregators to an  SREC market where it is bought by Power Companies to allow them to meet their share of the compliance obligation, or else pay a legislated fine (Alternative Compliance Payment, or ACP) for every SREC they are short.  Washington DC currently generates the highest SREC values in the country largely due to the fact that the District does not have the real estate to install large solar farms which can oversupply the market and drive down SREC prices.

How Much is an SREC worth?

The value of an SREC in a particular market is dynamic due to two primary factors

  1. by design, SRECs values are intended  to decline over time.  The legislated ACP which serves as a ceiling to the SREC price is usually scheduled to decline in future years. Among other factors, increased installations should lead to decreased system costs and less need for SRECs to help finance a solar system.
  2. The other reason for variations is due to market mechanisms.  Brokers buy and sell SRECs in order to help make a market for them.  When the market is undersupplied, SRECs trade high, at a price close to the penalty (ACP).  This is good for those selling SRECs.  If the market is oversupplied (like Maryland is currently), then SREC prices in that market will decline well below the penalty – not so good for those selling SRECs. Varying SREC payment options are intended to allow system owners to buy down their SREC price risk. The difference between an Upfront Payment option and a Brokerage Payment option (market price) can be many thousands of dollars to a solar system owner.  In an undersupplied market like DC, where there is very little price risk for SRECs, that upfront payment option leaves a lot of money on the table.

How many SRECs will my system generate?

The number of SRECs any given system will generate depends upon the output of your system.  For example, an optimized (as in good and sunny) 5.0 kW system in Washington DC would generate close to 6.0 SRECs/year.

How and When would I receive my SREC income?

SRECs are most commonly sold through an SREC aggregator/broker such as Washington DC-based SolSystems.  However, SRECs here in the District are so valuable – as well as stable – that solar panel contractors are also offering to buy your SRECs and simply deduct the upfront payment off the cost of your solar installation.  So THIS is the heart of this article:  Solar owners have 3 choices for how to get paid for their SRECs:

  1. Upfront Payment (all SRECs are forfeited for a 5yr or 15yr period)
  2. 3yr, 7yr or 10yr Annuity Contract (SREC prices Locked-in for a specific term)
  3. Brokerage (Current market price less broker commission).

Sticking with the aforementioned 5kW system example, the following table illustrates projected SREC values for the system, using current SREC prices (November 2016) offered by a competitive SREC aggregator).

System Size = 5kW                            SREC per Year = 6

So, reviewing the column above, this Washington DC Homeowner with a 5.0kW system has these financial options to choose from:

$$$$$:  Brokerage = $32,101.85 over 25yr life of systems (as warrantied)

$$$:  *Annuity =  $18,690 guaranteed then sign-up for another annuity or go Brokerage

$:  Upfront = $8025.60  SRECs cannot be sold again until 2032.

*Annuity is also available in 3 or 5 yr increments, as well as the 10yr

The Brokerage price is exponentially higher than the other prices, does that mean there’s a lot of risk?

Some risk – yes, because you’re not locked-in to a static price.   But remember – historically DC SREC pricing has remained stable (the geography does not accommodate  huge solar farms that can flood the DC SREC market).  You can receive an email monthly that allows you to check on current pricing AND should the price start to decline – you can, at any point in time, switch to an Annuity.  .

If I choose the 10yr Annuity Option and lock-in my SREC pricing, what happens at the end of that time period?

You simply choose another payment option being offered at the time of contract experation.  Maybe you’ll opt for brokerage – or another annuity, up to you.  Same with the Upfront Payment, after 15 years.

How do I receive my SREC income?

Via check from the SREC aggregator which most pay quarterly (except with the Upfront Payment option which would be one-time).   This generally starts around two months after your system has been interconnected by your Utility and the SREC contract set-up.   We do advise that the contractual SREC relationship be kept between a professional broker/aggregator and the solar system owner.  Third parties, such as the solar panel installation company, may find themselves in a conflict of interest.

If the solar system installer is not buying my SRECs, who sets up the contract?

Most reputable solar panel installation companies will coordinate the initial set-up of your SREC contract with an SREC aggregator, as they have immediate access to the documents required for the initial set-up (Passed Building Permit, Interconnection Approval etc.).  Many installers have one or two aggregators they’re used to dealing with – or you may choose your own.

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Non-South facing solar panel installs in Maryland, DC and Virginia

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The Design

Eastern Shore ,MD,Solar Service, Home Solar PanelsWhen planning a solar panel system for your home, the first consideration for any solar designer is the tilt and orientation of your roof areas.  We need to know which roof(s) will ensure the most optimum solar output – which translates to the best Return on Investment.   For us here in Maryland, the most optimum solar roof orientation is Due South at 180 degrees.  Of course, not everyone has this perfectly oriented roof and our customer base consists of homes that have South, West, East and everything-in-between orientations.  Occasionally we even install on North-facing roofs if the pitch of the roof is low enough that panels are close to flat, or can be tilted southerly.

For homes that face East-West, you may be wondering which roof would best suited for solar.  This is a good question given the fact that the output of your solar panels is directly related to your Return on Investment and how quickly the panels can pay for themselves.

If either East or West favors a more Southerly angle, then that would likely be a more favorable roof.  Assuming that there aren’t issues related to shadingor obstructions caused by chimneys, vents, skylights and other roof-placed items.

If the house has a perfectly split East-West orientation, with all things equal – the next consideration would be roof angle; the lower the tilt (i.e. closer to horizontal) – the more solar energy will be generated over the course of the day.  If the tilt on either side is the same then we would usually favor the West facing side.   Here in Maryland, DC and Virginia we tend to have cloudier mornings, and sunnier afternoons going into dusk.  Therefore we want to capture the late afternoon sun (west facing) more than early morning sun (East facing).  Of course, should you happen to have a tree, chimney or other obstructing factor(s) on the West roof – we’d favor the East.

The Economics

Homeowners looking at an East-West installation often have concerns as to whether or not their system will be profitable enough, compared to its south-facing counterparts.    Disqualifiers for cost-effective solar systems include shading and limited available roof space.  Rarely, however, is a home found unsuitable due to a Non-Southerly facing roof alone.

To illustrate, following is a comparison of a 10kW system’s output respective to East, West and South facing orientations.  Data compiled using the National Renewable Energy Laboratory (NREL) weather data patterns for Baltimore, MD –

10kW system installed on a 20 degree pitched roof with zero shade

 SOUTH (180 degrees) WEST (270 degrees) EAST (90 degrees)
ANNUAL OUTPUT 13,224kWh 11,389kWh 11,328 kWh
*Annual $avings $1853 per year $1594 per year $1586

*Savings based on a conservative $3.00/watt installation, and $0.14/watt BGE rate

Data from PV WATTS

As illustrated, although perfectly South would be ideal, the East and West orientations provide a competitive amount of solar and would add only a few months to the payback period.  If you were choosing between East and West (as opposed to installing on both), the difference is nominal.  The choice of which roof may come down to aesthetic preference, distance to utility meter and regional weather patterns.

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PACE Solar Financing in Maryland and Washington DC

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Typical Commercial Challenges

As veterans of the small commercial solar market in this region, we are very familiar with the challenges of financing solar energy systems to this group of property owners.  Small businesses want solar as much or more than any other market segment, but they are capital-constrained like no others so they need affordable financing.

Third party solar developers have been the answer for other markets.  They can easily finance large systems because the cost of assessing the applicant’s credit is well worth the return.  In the case of residential systems, they can use universal tools like credit scores to help manage their risk.  For the small commercial and non-profit market, there hasn’t been a super-attractive  way to finance solar, until now!

Commercial Solar Systems Now Recognized as Public Benefit

Washington DC and Maryland now have laws and programs in place for commercial (and nonprofit) property owners to utilize PACE.  Property Assessed Clean Energy (PACE) is a vehicle that is used to finance energy improvements for buildings.  It operates under the recognition that energy improvements are considered to be a public benefit.  As such, PACE uses the property tax as a vehicle to structure the financing payments – much like we would finance a sewer extension, but in this case specific to one property.

PACE is very appealing to property owners because they can add significant value to their building on a cash-flow-positive basis without personal guarantees or the application of additional debt to the balance sheet.  The financing payment must be less than the savings and it’s paid in the form of a special assessment on the property tax bill over the term of the financing arrangement (5-25 years at competitive rates).  Multiple energy improvements (i.e. lighting, solar, new roof) can be bundled into one financing package.

The best thing about this approach to financing solar is that the property owner will own the system, not a third party.  The property owner gets all of the benefits, including the energy savings, the substantial incentives, the marketing value, and the satisfaction.  All it costs them is the interest on the financing which pales in comparison to the savings.

More info is available on your webpage on our PACE webpage but you may just want to pick up the phone and call us to see if your property is eligible.

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Coming Up! Solar Open House in Ellicott City, MD

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SOLAR OPEN HO– USE with Kirk Cummings

Residential Solar Panels, Solar Service , InstallerWHEN:  Sat, Sept 17th 2016   |   2pm – 5pm

WHERE:  4919 Windpower Way, Ellicott City  MD  21403

Nothing says Sunshine’s a Wastin! like a freshly installed solar power system.  Join Kirk at this Howard County residence to get up-close-and-personal with an active solar system.  The homeowner will be on hand to answer questions about their decision-making process as well as working with SES.

Kirk will be on hand to tour the system with you and answer all of your questions onsite at the home of the Syed Family where Kirk designed and SES recently installed an 8.55k Solar power system including(30) Suniva 285 watt Solar panels and a Solar Edge Inverter System.

Solar Open House – $250 Discount!

All open house attendees who sign up for a proposal and sign their contract within 30 days will receive a $250 discount on their PV system installation.[/vc_column_text][/vc_column][/vc_row]

Fannie-Mae Agrees: Solar is a MUST-DO for Homeowners

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Fannie Mae Agrees:  Solar is a MUST-DO for homeowners

Solar Service, Home Solar PanelsJust last month, Mortgage Giant Fannie Mae announced their new mortgage option that allows solar energy projects to be rolled into the final mortgage amount.  Namely, the HomeStyle Energy Program is hot news for solar fans who use a Fannie Mae-approved lender for their mortgage; whether considering a first-time solar system purchase, or currently financing an existing solar system with an equity line of credit or unsecured loan.

Typical Solar Financing and Solar Energy

It’s no secret that solar energy system installations in Maryland and Washington DC have taken off like gangbusters.  In previous years, many Maryland homeowners were choosing to lease/rent solar panels in an effort to avoid upfront costs.  However, when compared with an outright solar purchase – a 20yr (or similar) solar lease proves to be quite expensive – as with most rental agreements.    Depending on whether the solar shopper lives in Washington DC or Maryland, the financial incentives (tax credits/SRECs) usually pay for between 40 – 80% of the system cost.  100% of this upfront solar cost needs to be sourced by the homeowner who usually use a financing vehicle such as an Equity Line of Credit or some sort of Unsecured Loan.

Fannie Mae’s Game-Changerâ€Ķ

As of June 2016, Fannie Mae borrowers have access to a new Energy Loan that allows them to simply add the cost of their solar system to their existing mortgage.  Here’s what makes this form of financing a game-changer:

  • Super-Low APR:  HomeStyle Energy can be used for new projects or to take higher-interest unsecured loans/lines of credit and refinance them or roll them into a potentially lower-cost mortgage.   In all likelihood this will result in unprecedented low financing costs for solar energy.
  • All Costs Covered:  Most financing vehicles have a non-negotiable cap on the loan amount, forcing some Homeowners to come up with a down payment.  With this program, lenders can finance up to 15% of the final property value.  For example, a typical single-family home located in Annapolis, MD may appraise for $350,000.  The available amount for the solar system on this Annapolis home would be $52,500.  In most cases, this amount would far exceed the amount of capital needed to complete the project, considering that most solar projects fall in the $24,000 – $34,000 range (before government incentives).
  • Peace of Mind:  The improvements also have to come with an energy report, whether a Home Energy Score Report or a Home Energy Rating Systems report, and must specify the monthly savings to the borrower.   Homeowners can rest assured that their mortgager fully supports the home improvement investment.

Does Every Home Qualify?

At this point in time, only Fannie-Mae  homebuyers or refinancers qualify.  The program does not extend to new construction or manufactured housing.  The following are eligible to apply:

  • New homebuyers
  • Existing mortgage holders looking to refinance their new solar system
  • Existing mortgage holders looking to refinance their existing financed solar system

All applicants have 180 days from close of mortgage note to complete the solar installation.  Bear in mind that refinancing homeowners may incur closing/additional fees in the transaction.

Contact your mortgage representative to see if the HomeEnergy Program is right for you.

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Press Release: Solar at the Chesapeake Bay Foundation

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Press Statement
6-15-15

Solar Service, Home Solar Panels, Chesapeake MDCBF Merrill Center to Install 106 kW Solar System

(ANNAPOLIS, MD) The Chesapeake Bay Foundation (CBF) and Solar Energy Services, Inc. (SES) announced an agreement today for SES to design and build a 106 kW, grid-tied solar photovoltaic system at the Philip Merrill Environmental Center, CBF’s headquarters.

The Merrill Center rooftop solar system will include more than 370 solar panels from US manufacturer SolarWorld, as well as inverter systems from Solar Edge. The panels will be installed primarily on the available roof tops, but the design also calls for some unique solar shade structures to provide additional benefits to the facility and its occupants.

SES president Rick Peters shared that SES is pleased to participate in this marquee project. “I know personally that CBF has led the way on sustainable initiatives in our region for a very long time. It is an honor to be selected to construct this project, which will help advance CBF’s message and their environmental stewardship.”

The solar system is projected to produce more than 133 MWh of electricity annually, enough to power more than 10 average Maryland homes. This will significantly offset the facility’s consumption of traditional electricity.

“While we have had solar panels at the Merrill Center in the past, we are adding this new capacity because it is now more affordable as well as more efficient,” said CBF Vice President Mary Tod Winchester. “The new array will generate enough electricity to provide one third of the power for heating, cooling, and other needs of the more than 100 staff who work here. As a non-profit, we will not benefit from the many tax incentives available, but we encourage other individuals and businesses to closely examine the costs and benefits of adding solar generation.”

The project is expected to be completed before the end of this summer.

About Solar Energy Services, Inc.

Solar Energy Services, Inc. (solarsaves.net) designs, builds and services solar power systems for institutional, commercial, and residential customers. The firm was founded by 37 year solar industry veteran Roger Perry who has longstanding ties to the communities served by SES. Based in Millersville Maryland, the 21 person firm operates in Maryland, DC, and Virginia.

About Chesapeake Bay Foundation

Founded in 1967, the Chesapeake Bay Foundation (www.cbf.org) is the largest independent conservation organization dedicated solely to saving the Bay. Serving as a watchdog, we fight for effective, science-based solutions to the pollution degrading the Chesapeake Bay and its rivers and streams. Our motto, “Save the Bay,” is a regional rallying cry for pollution reduction throughout the Chesapeake’s six-state, 64,000-square-mile watershed, which is home to more than 17 million people and 3,000 species of plants and animals.With offices in Maryland, Virginia, Pennsylvania and the District of Columbia and 15 field centers, CBF leads the way in restoring the Bay and its rivers and streams. Over the last four decades, we have created broad understanding of the Bay’s poor health, engaged public leaders in making commitments to restore the Chesapeake, and fought successfully to create a new approach to cleanup that features real accountability-the Chesapeake Clean Water Blueprint

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Solar Energy Trends

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Some Positive Trends:

  • System prices continue to drop
  • Maryland meeting its solar energy goals
  • Maryland Solar Industry exceeding 2200 jobs

Eastern Shore MD,Residential Solar PanelsThe Challenges:

Industry consolidation can be disruptive

Residential solar leasing is fast outpacing cash sales in many of the more developed states, like Maryland. It’s what many Americans want so it will continue to drive the market. It seems to work for more of America.   After all, we do like instant gratification and if I can save $10/month immediately, and feel good about it, where do I sign? While SES is typically strongly advocates for cash sales to our customers who are able, no one can argue the enormous impact and value that the various residential and commercial financing options have delivered. Getting solar access to the mainstream will be the most critical piece to advancing the development of distributed solar. It really has been transformational so far.

There’s other good news. System Pricing, though leveling off somewhat, has dropped dramatically in the past 5 years. While incentives decline as planned, the industry continues to drive down installation costs to maintain the impressive paybacks and internal rates of return.

Beneficiaries of solar price reductions include states like Maryland, who had the foresight to seed this industry over the last 6 years. Government and industry partnership in Maryland has built an economic environment that supports solar development and as a result, it is sustaining 2200 jobs while Maryland continues to meet its solar RPS goals. That’s right, our industry delivers over 2200 paychecks in Maryland. In fact, there is now a solar thermal equipment manufacturer in Baltimore. Much to be pleased about.

There’s also a darker side. Bankruptcies and consolidation of solar companies have carried the headlines quite a bit in the last year especially. While a natural part of the tech/business evolution cycle, consolidation and shake out are always disruptive, not only to industry members, but also to consumers of these solar energy products and services. As a result, all of the solar “investors” are asking lots more good questions – particularly about the longevity of the manufacturer and the installer. Popular questions, particularly in the solar PV panel world, are “Who will be here to support my warranty?” and “What is the design track record of these systems?”

The beneficiaries of these trends will be those with a proven commitment to the industry either through time or capital. It’s that commitment that gives customers confidence of future support if and when it is needed. Whether it’s an installer with 35 years experience or a manufacturer like SunPower that has 25 years in business, longevity is a key indicator of future availability to support the install base.

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Offset Your Oil-Guzzling Water Heater with Solar!

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Offset Those Oil-Fired Water Heaters with SOLAR

Why oil-fired water heaters?  In many parts of the country there are no local gas lines for residential distribution.   In the Chesapeake Bay region where we operate, this issue is very common in the many river communities that are close to our world famous estuary.  The reason for this is primarily because there are so many peninsulas that don’t offer the high density to justify pipeline expenses.  In these areas, customers are forced to use other fuels like electricity, propane, and oil to heat their homes and domestic hot water.  This article will focus on the oil-fired boilers that are common in this region as well as in the Northeast US.

Cost of Gas Alternatives:  Many homes have heating boilers that run on fuel oil.  These boilers have tremendous heating power and can recover loads quickly.  They also tend to be relatively inefficient, dirty, and expensive to run.  Many of these boilers also have an on-demand water heating feature that adequately satisfies the household’s water heating load without the need for a standby tank.  This all sounds great except the price of home heating oil continues to climb with recent prices around $4/gallon on in our area.  To put that in perspective, the equivalent price for natural gas on an energy density basis would be about $1.00/gallon.  When oil users are paying 4 times the rate of those who have access to natural gas, they can hardly afford to be wasteful in how they operate their boilers.

Summertime Blues:  Here’s the dirty little secret about that on-demand oil-fired water heater on your boiler.  It is typically programmed to keep that big hunk of metal hot, all summer, waiting for you to call for hot water.  So a premium for your oil (compared to gas) is not the only thing you are paying for.  During summertime your air conditioner is competing with your heat-radiating oil-fired water heater.   So, here’s the way I – a not-so-proud owner of an oil heater – circumnavigated this issue:

My Solution:  I have solar photovoltaic (PV) on my home, but when I got into the solar business in 2008 the first thing I did was deploy solar water heating in my family’s home which allowed me to shut down our boiler for about half the year.  We also did some other control modifications for efficiency.  The first simple control is used to automatically reduce the boiler target temperature as the outside air temperature increases – for example, you don’t need 180 degree water to heat the house when its only 50 degrees outside.  Secondly, we converted the boiler to “cold start”, so it no longer wastefully heats on standby when we have a big tank of solar-heated water waiting to be used.  My family’s solar thermal system is slightly oversized (there are 3 forty square foot panels instead of 2) so that it could be integrated with our hydronic space heating system to give us a little space heating help from the sun.  [See our recent blog on combi-systems (hyperlink)].

So that’s the good news.  The GREAT news is that there has been absolutely no convenience impact on how we use hot water or space heating.  The system has saved us about $800/year in oil       expenses, the majority from offsetting our inefficient water heating, and the remainder from space heating.

Furthermore, the solar heating system is optimized in the summertime, all-but-negating the use of the oil-fired water heater.  The air conditioner has to work far less without having that heat-radiating boiler inside the home – like most are.

People are learning that different homes and circumstances often can benefit substantially more than others when you consider various renewable or energy efficiency technologies.  Oil fired water heaters are some of the sweetest low hanging fruit in solar.  In fact, I joke with my residential oil supplier that we should team up so he can get out in front of this trend that is eating into his oil sales.  He said, “no thanks – I’ll ride this as long as I can”.

If you forgot to make a new year’s resolution this year and you heat your home and your water with oil, then plant your flag!  If you’ve got some solar exposure, you must commit to get a free solar thermal assessment in 2014 and stop pouring money and finite resources down the drain.

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