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Sun heats up energy savings for residents
Solar collector panels are mounted on the roof where the first solar water heater system was installed in Frisco by (left) master plumber and solar supervisor Richard Kirk Woolheater and (right) solar technician Tim Culver. The Oncor Take A Load Off, Texas solar water heating project funded $3800.00 of the cost of the system. The homeowners are also on the SECO Texas Trade Up Appliance Rebate Program waitlist, and if approved, they will receive an additional $715. The project is also eligible for the 30 percent federal renewable energy tax credit. With just the Oncor and SECO rebates, their out of pocket expense for the project was $297.69. Submitted Photo
By Jessica Rush, jrush@acnpapers.com
Most people regard the blazing Texas sun with a sense of dread as the temperature continues to rise in the summer months; however, there is a way to use the sun’s energy in a way that can save money and help the environment at the same time.
Oncor Electric Delivery is offering cash incentives for customers who participate in a solar water heating program “Take a Load Off, Texas” saying “saving energy makes cents.” The incentive, which ranges between $1,400 and $2,700 depending on the predicted energy performance, goes toward the purchase and installation of a solar water heating (SWH) system.
A SWH system absorbs the sun’s energy through solar panels to heat up water for use in the home like dishwashing, laundry and showers. It cannot completely replace the home’s electric water heater, but it can reduce the consumption of hot water electricity by 40 percent to 85 percent. To qualify for the cash incentive, customers must use a participating service provider for the installation such as Craig Wolheater’s company, Innerline Plumbing. Innerline Plumbing has completed 15 SWH system installations in the area, and last week they installed the first SWH system in Frisco.
Alonso said Innerline Plumbing took out the home’s expired water heater and installed a new water heater along with the solar components. The whole process took around 13 hours.
“Friday morning we shut the electricity off to the water heater, and I haven’t noticed the difference without the electricity on,” he said. “The usage of the water heater is around 30 percent of the electric bill, so probably the first difference we’ll notice is in our electric bill.”
Alonso said his family has been able to run the dishwasher, the washer and take hot baths without the electricity turned on to the hot water heater.
“We have to adjust our schedule now,” he said. “So we have the kids taking baths earlier and we do the washing earlier in the day to make sure we have hot water in the evening.”
SWH systems usually cost between $4,000 and $8,000, but systems placed in service on or before December 31, 2016, can qualify for a residential renewable energy tax credit from the federal government if they meet certain criteria. For example, the government requires that the SWH system equipment is certified for performance by the Solar Rating Certification Corporation (SRCC) or a comparable company endorsed by the state’s government. Taxpayers can claim a credit of 30 percent of the cost of the system with no maximum credit amount. The credit cap of $2,000 was removed under the American Recovery and Reinvestment Act of 2009 for systems placed in service after 2008.
According to an Innerline Plumbing report, residents with a SWH system save an average of $50 a month or $600 a year in energy savings. If the cost of the solar water heater installation is $5,000, then with the Oncor incentive and the federal tax credit, residents should see a return on their investment within about two years. The system is also supposed to increase the value of the home by about $12,000.
Woolheater, who said his company is the only licensed “green” plumber in North Texas, said he wants to get 20 to 30 more of these projects done in the next month or so.
“Oncor is paying a very large percentage for low income projects, 95 percent of the project,” Woolheater said.
Commercial properties are not left out of the new incentive programs. Oncor commercial incentives are roughly $800 to $1,500 for smaller systems and $2,400 to $6,500 for larger systems. Commercial systems placed in service in 2009 or 2010 can qualify for a 30 percent cash grant from the U.S. Treasury. The owner of the commercial property would receive the grant instead of the commercial tax credit.
Qualifying for the Federal Residential Renewable Energy Tax Credit
* Systems must be placed in service between January 1, 2006, and December 31, 2016
* Equipment must be certified by the Solar Rating Certification Corporation (SRCC) or a comparable entity endorsed by the government of the state in which the property is installed
* At least half the energy used to heat the dwelling’s water must be from solar
* The tax credit does not apply to solar water-heating for swimming pools or hot tubs
* The home served by the system does not have to be the taxpayer’s principal residence
Qualifying for the Oncor “Take a Load Off Texas” residential incentive
* Homes must receive electric service from Oncor
* Homes may be single-family or individually metered multifamily properties
* Homes may be new construction or existing properties
* Homes must currently use electric water heating systems; gas water heating homes are ineligible
* A participating service provider must complete the installation; do-it-yourself installations are not eligible
* Sufficient roof or other area to place solar collectors will be necessary to install an effective solar water heating system
Facts about Solar Water Heating Systems
* Solar radiation for the adjoining 48 states and for Hawaii is equal to or better than that of Spain, where numerous solar water heaters have been installed
* 1 in 10 households in China has a solar water heating system
* SWH systems last between 15 and 40 years, depending on maintenance and climate
* Systems can be installed in as few as two days
* SWH capacity increased 40 percent in 2008 in the U.S.
* About 20,500 SWH systems were installed in the U.S. in 2008
* A SWH system generates a consistent 2,800 to 3,200 kWh of energy per year
* For a SWH system replacing natural gas, 1,290 pounds of CO2 can be avoided each year
* For a SWH system displacing electricity, the amount of emissions avoided is equal to removing a small car off the road
Source: Solar Energy Industries Association
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