Sun shining again on solar companies

— Ed Murray remembers the dark days of solar energy in the 1980s, when federal rebates and other incentive programs disappeared. So did many solar companies.

"The number of solar companies in California went from 650 to 30," recalls Murray, president of Aztec Solar in Rancho Cordova, Calif. "Almost everybody went out of business overnight."

Murray, who has been selling and installing solar equipment for more than three decades, and Aztec Solar managed to survive that upheaval. And thanks to new tax credits and rebate programs, solar power is rebounding in a big way.

"It's coming like a freight train," he says, "and we're not ready. There won't be enough installers to handle all the work."

NOT MUCH SOLAR YET

Only about one-half of 1 percent of U.S. homes have plugged into solar power, according to the Solar Energy Industries Association. Sacramento, Calif., falls into that same demographic, with most solar systems used to heat swimming pools.

"There are so many pools in our area," says Jonathan Gemma, also of Aztec Solar. "People buy a home with a pool and use the gas heater once. They freak out when they see the bill." With solar, Gemma says, you can extend pool use for several months, and the system will pay for itself inonly a couple of years.

Made primarily of black plastic tubing, solar systems for pools cost $4,000 to $6,000, depending on the size of the pool. They weigh only about 50 pounds. New techniques also make them easier to install on tile roofs.

For most homeowners, solar water heaters offer the biggest potential for savings, according to Solar Energy International, a nonprofit proponent of alternative energy use.

The average household with an electric water heater spends about 25 percent of its home energy costs just on heating water. A solar water heater can save 50 percent to 85 percent annually on that cost and can pay for itself in four to eight years.

ADDITIONAL INCENTIVES

There are more financial incentives. The federal government offers a tax credit for replacing an electric water heater with a solar system, which costs on average $7,000, Gemma says. Several utilities offer rebates, too.

In addition to savings, solar power offers feel-good dividends. Solar water heaters don't pollute. Replacing its electric counterpart, a solar water heater will eliminate 50 tons of carbon dioxide emissions over 20 years.

Using photovoltaic or PV cells, home solar systems can produce electricity for general use and actually can spin the meter backward. Such systemsare expensive to install, often $30,000 or more. But facing skyhigh electric bills, customers can look to the sun for some relief.

Two years ago, Clark and Jayne Mehan installed a full solar-energy system for their El Dorado Hills, Calif., home. One part warms water for their pool, another heats water for the house and a third generates electricity for use throughout the home. They still have to pay for some electricity (primarily in the cloudy winter months). But in the bright summertime, the electric company owes them money for the electricity they generate.

REAR ROOF

"We were a little worried about how it would look, but it is on the back side of the roof," Clark Mehan says. "It's become a conversation piece. We don't mind it at all. And every Saturday and Sunday, I check the meter to see how much electricity we're generating. It's kind of fun."

Excess electricity goes back out to the grid and helps utilities supply other customers.

California utilities are feeling extra pressure to tap the sun's power. By next year, all public utilities in this state must get at least 20 percent of their power from renewable sources such as water, wind and sun. That's expected to rise to 33 percent by 2020. Aztec Solar is testing a solar-powered air conditioner at its headquarters, which could lead to even greater savings for individuals and the utilities.

HomeStyle, Pages 37 on 08/29/2009

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