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Rooftop solar electric systems often are associated with the rich or zealous -- a green privilege.
But sky-high energy prices, a degraded environment and new aggressive government policies are changing the who and the why -- so much that the field is getting level.
The freebies that come with installing solar-electric panels have never been greater. With tax breaks and cash grants, Oregon homeowners can slash the cost of a photovoltaic system by about 60 percent.
Department of Energy Numbers
Still, a lot of numbers are in the price tag, and it's a close call. Consumers need to know why they'd take the plunge before deciding whether a purchase makes economic sense.
A 2-kilowatt rooftop system -- the typical size for a Portland-area family -- carries a total cost of about $20,000. But state and federal incentives now can cut the out-of-pocket expense to $7,500.
Once those solar cells start turning sunlight into electricity, you'll shave about $176 a year, or 20 percent, from your utility bill.
It will take 25 years to recover your investment, however, assuming an increase in electric rates of 5 percent annually. If electric rates go up more, as current trends indicate, you'll recoup the expense sooner.
But that's where personal values come in.
Is this for the money or the peace of mind or both?
"In terms of a simple payback, it's hard to justify," says Bruce Barney, a solar advocate and project manager with Portland General Electric.
He and fellow sun-worshippers suggest evaluating the investment as you would a home improvement. A solar installation will increase your home's sale price, they say, so sit tight and reap the returns later on.
But the biggest motivators, they say, are concerns about the environment and a desire to reduce use of fossil fuels.
"The money issue is a red herring," says Glen Friedman, who installed a 2.4-kilowatt array on the roof of his West Linn home several years ago. His only regret: He didn't go bigger.
Friedman, an architect, could easily afford it. For others it's a tighter squeeze.
Matthew Denton, a software engineer who makes about $50,000 a year, put almost $10,000 of his own money into a solar purchase because he viewed it as a hedge against escalating energy prices.
"It will be a good financial decision in the long run," he says.
Christine Borchert came to a different conclusion. Environmental worries prompted Borchert and husband Greg Socolofsky to look into solar, but financial concerns pushed them away. Borchert is a group leader for Weight Watchers, and her husband a commercial claims adjuster.
"I have this dream of being off the grid as much as possible," Christine said, "but it just didn't make sense. If I had an indiscriminate amount of money, I'd do it. . . . But holy cow."
Oregonians with household incomes between $75,000 and $150,000 account for about half the solar electric systems in the state, according to the Energy Trust of Oregon, a nonprofit offering cash grants for solar installations. Those with incomes between $25,000 and $75,000 account for another one-third of the purchases.
"It used to be the only ones who did it were people with big houses, plenty of money," said John Patterson, the president of Mr. Sun Solar, one of the Portland area's leading installers. "The profile today is a close-in, smaller home, one-car garage, maybe they bike to work."
If you're in the market for a photovoltaic system, here are a few things to consider:
Location. Portland, in fact, is a good place for solar, despite the dreary winters. But the roofline of your home should have a solid southern exposure, although a little off-kilter is OK. Shade is a negative, especially during midday hours. Don't forget to consider newly planted trees; they can grow into future problems.
Consider a consultant. For about $100 an hour, an independent consultant will tell you whether your home is solar-compatible, whether you can afford it and, if so, how much energy you'll save.
Contact several contractors. You can find a list of solar contractors on the Energy Trust's Web site, energytrust.org. . Ask several for bids so you can compare details, including the size of the system and projected energy savings. Contractors will evaluate your roofline and provide a detailed analysis as part of the estimate, so you may feel an independent consultant isn't necessary.
Costs. They vary between $8 and $11 per watt. That means a 2,000-watt installation (2 kilowatts) will cost --everything included -- between $16,000 and $22,000. Solar experts say prices likely aren't going to come down because inflation is pushing the costs of materials up. Neither should solar-wannabes wait for a big technological breakthrough anytime soon, experts say, at least not one that's going to slash costs.
Add up the incentives. Make sure the tax credits and cash incentives apply to you. If you don't have taxable income, the credits won't do you much good. The federal tax credit is taken in a single year; the Oregon credit stretches over four. Both are capped, at $2,000 and $6,000, respectively.
Take note: The 30 percent federal tax credit drops to 10 percent at year's end unless Congress passes an extension. Remember, too, a hefty grant from the Energy Trust applies to PGE and Pacific Power customers only (because customers of those utilities pay into the nonprofit's kitty through a charge on their monthly utility bills). And, you qualify for the trust incentive only if you use one of its approved contractors; do-it-your-selfers are out of luck.
Energy savings. Rule of thumb for a Portland homeowner: You'll reap 1,000 kwh of solar electric generation annually for every 1 kilowatt of installed capacity. Most residents put in a 2-kilowatt system because that's the way to max out the tax credits and reduce energy bill by a respectable 18- to 20 percent.
Battery-free, grid connected. Under the state's net metering law, your home remains hooked to your utility's electricity network, so there's no need for battery storage and no need to go off-grid -- unless you want to. Once you sign a net metering agreement with your utility -- your contractor will have the form -- you're set. When your system produces more power than you use, the power feeds into the utility's power lines, and you're credited for the amount generated.
Maintenance. Once your system is up and running, there's little you need to do. Warranties on the modules generally cover a 25-year period, but the array likely will last considerably longer, experts say, with a slight loss of efficiency. Oregon rains help keep the panels clean, but if there's a long dry spell, wash them off because accumulated dust can affect
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