Practical Efficiency

Solar power just received a strong endorsement from the state government here in California. The goal is to place electricity generating solar panels, referred to as photovoltaics or PV, on one million roofs in the state. Large rebates are being offered bring down the cost and encourage the purchase of systems. Our governor's vision is to make California a world-wide leader in solar power. Currently Japan and Germany, are the world leaders in solar power.

The question on people's minds-- is PV practical for the average homeowner or small business operator? While most people support PV,, on a gut level, when they price the systems, often $10-20,000 installed, they begin to question if it makes sense. Without rebates, the payback time (meaning the time it takes for the electricity savings to equal the PV cost), can be over 12 years. A fifty percent rebate can half that number and many states in addition to California offer incentives.

The best analysis is not just a simple financial payback, but a careful consideration of all the factors. First of all, payback time is based on an estimate of the future inflation of electricity costs. Owning a PV system insulates you from rising electricity costs and provides security knowing that future electricity costs won't be affecting you much if all (some PV systems provide all of a home's electricity needs while others may supply only a certain percentage). While PV life expectancies are rated at around 25 years, many feel they will last up to 50 years. Assuming you stay in your home, free electricity in one's older years can be quite a relief. Even if you move from your home, the solar panels can add value beyond their actual cost when you sell.

One of the beautiful features of solar is that it produces the most electricity during the middle of the day when there is the biggest demand. Many electrical rates are moving toward time of use pricing where the rates are much higher in the middle of the day. With PV you can consume electricity during the peak periods without added costs or increasing overall demands which requires new power plants to be built. You help your state without having to turn down your air conditioner or turn off your appliances during the hottest part of the day. Additionally, you won't have to worry about utility company blackouts with your own generation of electricity.

How much value do you place on being part of the solution instead of part of the problem? How much is doing the right thing worth? Do you ever donate to charity? Even if you don't see an actual financial return on PV at this time, you will become a better citizen with PV. You will stop contributing to global climate change when you use electricity. You will support the growth of the renewable energy industry. You will be able to look young children in the eye and know that you are contributing to their future.

Many are waiting for future improvements in the solar industry that will increace efficiency and drive down costs. So, shouldn't you wait? No. There doesn't seem to be any great technological advances in the short term that will dramatically change the industry. Yes, there is a lot of research on many great new ideas for solar from flexible plastics to nano-technology, but these are probably many years out before they are readily available and affordable. Also, as technology advances and prices come down, the government incentives will fade away. If you live in California, now is definitely the time to seriously consider PV for your home or business.

Posted by Peter Spencer at 11:54 AM | Permalink | TrackBacks (0)

Is now the time to buy a hybrid vehicle?

It is definitely time to take a serious look at this technology. For starters, everyone's first question seems to be- can it save me money? One of the best ways to analyze your potential savings is to use the hybrid calculator. This will let you compare your current vehicle with a number of different hybrids and show savings based on different prices for gasoline.

So now you want to compare the price of a hybrid versus a similar non-hybrid vehicle. Typically, a vehicle with hybrid technology costs for $2-3,000 more. However, this can often be offset with savings from tax credits, deductions, and rebates equal to or even exceeding the increaded cost. For 2006, there are federal tax credits for hybrid vehicles. The Toyota Prius may provide a refund of $3150 on your 2006 return. The tax credits only apply to the first 60,000 sold of any model and Toyota will probably sell that many of the Prius by June. Also check with an accoutant for other issues, such as the alternative minimum tax. Many states have other incentives from rebates to the ability to drive in carpool lanes with only one person in a hybrid (California).

So, let's say you're still not sold. Maybe the finances still don't pencil out even accounting for what many feel will be continually increasing gas prices. How do you feel about being a good citizen on planet earth? Burning one gallon of gasoline produces 20 pounds of carbon dioxide! Driving a hybrid can save tons of carbon dioxide, the main driver of global warming, from our atmosphere. You will also greatly reduce other pollutants which cause a variety of problems from health issues to environmental damage.

Discussions of hybrids turn to a myriad of other issues from oil dependency to support for new technology. Combining practical efficiency with a bit of idealism makes the purchase of a hybrid the right choice- NOW!

Posted by Peter Spencer at 12:19 PM | Permalink | TrackBacks (0)

Appoximately 60 percent of existing homes are inadequately insulated according to a Harvard Study. Air leaks and poor insulation can increase energy bills by 40 percent or more.

Perhaps the simplest way to increase your home's energy efficiency is to seal air leaks and add insulation. It is a cost-effective way to lower energy bills and make your home more comfortable. It's important to control the movement of air and heat between the interior of your home and the outside world. The exterior of a home is referred to as an envelope. Improving the integrity of this envelope can often be done by a homeowner.

Let's start with air leaks. These are gaps, cracks, or holes where air passes in or out. We pay to condition air by heating it in the winter and cooling it in the summer. The most common methods to seal air leaks are caulk, spray foam, and weather-stripping. The attic and basement are the most common areas for costly air leaks. Other places to consider are doors, windows, light fixtures, chimneys, and holes for pipes. Small openings can be sealed with caulk either applied from a tube or inexpensive caulk gun. Spray foam is also very effective and readily available from home improvement stores. Weather-stripping is as easy to apply as tape and comes in various sizes and styles. It is most useful around windows and doors.

Insulation is designed to prevent the flow of heat. It keeps your home warmer in the winter and cooler in the summer. The older a home is, the more likely it could benefit from increased insulation. Insulating walls and floors also helps maintain temperatures and thus saves money. The easiest type of insulation for the homeowner to install are bats or blankets of rolled insulation. These are simple to cut and roll into place in the attic (assuming your attic has room to manuever). Insulation is rated by resistance to heat flow referred to as an R-value. The most practical efficiency is based on a region's climate. An R-30 value is generally recommended for attics in moderate climates, while up to an R-50 value is suggested for very cold regions.

A good site for information on insulation, including links to energy saving calculators, is Simply Insulate. The Federal Government's Energy Star site offers a great publication entitled A Do It Yourself Guide to Home Sealing.

Posted by Peter Spencer at 08:23 PM | Permalink | TrackBacks (0)

One of the biggest barriers to greenhouse gas (GHG) reductions has been the practical question- what are the economic costs? California and the Brazilian state of Sao Paulo demonstrated that actual savings-- to the tune of tens of billions of dollars-- can be realized while reducing emissions. GHG reduction programs in these two states include electricity conservation, land-fill methane usage, ecosystem restoration, renewable resources, efficiency standards for buildings, and other innovative measures.

A report published in December 2005, shows economic and health benefits acheived while reducing greenhouse gas emissions. The document, No Reason To Wait, discusses the benefits of GHG reductions in Sao Paulo and California. These two states were able to take actions that went beyond "business as usual" to gain significant reductions in GHG emissions. Rather than the high costs often associated with emissions reduction, economic and health benefits were documented. Sao Paulo and California will cooperate in efforts dealing with air quality, alternative fuels, energy efficiency, renewable energy, public transit, forestry, and educational programs.

For over 30 years, California has been able to maintain a constant per-capita electricity consumption while the United States as a whole increased by 50 percent. The net economic benefits in California are approximately $1,000 per person and have saved $56 billion through 2003. WIthout the energy measures, air polllution from stationary sources would have been 50 percent greater.

The report is full of data supporting practical efficiency. More documents related to climate change can be found at California Climate Change Portal.

Posted by Peter Spencer at 11:27 AM | Permalink | TrackBacks (0)