A popular choice for sourcing energy, solar systems are a hot topic
As summer succumbs to fall, we shift our focus from trying to escape the heat outside to trying to keep warm while we are inside. It is the modern human’s never-ending quest for comfort.
These days, our comfort comes at a much higher cost, so it is good to know that before the year ends, there are still some programs you can take advantage of to help improve energy efficiency in your home while saving a little money.
You can’t talk about home heating and hot water systems without hearing about the most popular types of systems available today, the ones companies get the most calls about: geothermal and solar.
Consumers have helped to give these two darlings of the industry top billing for several years now, but tax credits and rebates have fueled their popularity and turned them into the hottest commodity around.
THE GOOD EARTH
A good way to find out if a company believes in its product is if the employees use it. John Michel of Haller Enterprises, Harrisburg, Lancaster, Lebanon and York, installed a geothermal system in his home 16 years ago, and he says it is the best investment he has made.
“I think it’s saved me about 30 percent a year, maybe a bit more than that. I’ve definitely gotten back my investment,” says Michel.
A geothermal unit, also known as an earth-source heat pump, uses a small amount of energy to recover more usable energy from the earth to use in heating the home. Because this is a renewable energy, free for the taking once you have your equipment in place, it is the most efficient system you can buy. (See “What’s Watt, Geothermal,” below.)
Michel partly credits the federal government’s tax credits with the uptick in interest his and other companies have seen in geothermal. A few years ago, Haller installed several geothermal units a month. Now, it installs about 15 a month. With the tax credit for geothermal units extending through 2016, Michel expects to see more of an increase. Other types of units have tax credits that end this year. (See “What’s Watt, Tax Credits,” below.)
Many companies agree about geothermal’s efficiency.
“A geothermal heat pump is the best system we sell when it comes to efficiency. If you had a solar hot water system to heat your water,” says John Loercher, Worley & Obetz, Manheim and Strasburg, you would be doing well in energy conservation.
Bill Landis of J.K. Mechanical agrees on the efficiency of geothermal systems, which are what his company installs the most. A geothermal system can save the consumer up to 60 to 70 percent on his heating, cooling and hot water bills, he says.
Justin McClure of Daflure in York would have installed a geothermal unit at his home, but his property is full of fragmented limestone, meaning he can’t have the needed piping installed in the ground. McClure says his company has seen a 200 to 300 percent increase in installation of geothermal units because of the tax credit. But as popular as geothermal is now, solar has surpassed it.
HERE COMES THE SUN
Soon, McClure will be installing a solar electric system in his home. Seven years ago, when he built his home, he had the best there was installed: a dual system, using propane and electric, and McClure estimates he saved 25 to 30 percent on utility costs. He had a solar hot water heater installed about a year ago.
Solar is the most trendy of energy choices now, says McClure. All companies who supplied information for this article said they are receiving hundreds of phone calls asking about solar. “People inquire about solar and end up installing geothermal,” says McClure.
“We get four times as many solar inquiries as for geothermal, but we get more people moving forward with geothermal installation because their home doesn’t have layout to accommodate an efficient solar system,” says McClure.
While companies are being inundated with requests for information about geothermal or solar systems, most people don’t have the upfront costs needed to put in these systems. Rebate programs are available that might help some. (See “What’s Watt Rebates,” below.)
But for those who can’t afford the newest trends, new, more efficient systems using natural gas, electricity or fuel oil are good options that most consumers are going with.
Since rate caps in Pennsylvania are being eliminated, the fluctuation in energy prices, or the promise of a fluctuation, has brought energy efficiency “to the forefront of decision making for homeowners,” says Loercher of Worley & Obetz.
“Whether it is for appliances or heating systems, people are looking at efficiencies,” he says.
WHAT’S WATT | Geothermal
Geothermal energy units are the most expensive to install because of upfront costs, but they are the most efficient to operate, and many companies say they are your best overall choice. How do they work? A geothermal unit includes a ground-source heat pump that basically uses pipes buried in the ground to pull the warmth from the usually constant 55 degrees of the Earth. Contrast this to an air-source heat pump that harvests heat from the cold winter air.
WHAT’S WATT | Rate Caps
PPL rate caps expired this year, allowing the utility to raise its rates for the first time since 1997. Starting January 1, 2011, Met Ed, which serves parts of Cumberland, Dauphin and York counties, will be able to raise rates with the expiration of its rate cap. As a result, many other electricity providers have entered the market, offering lower rates. A Pennsylvania Public Utility Commission Web site can help guide you in making a switch to a new supplier or can explain why all this is happening. Go to www.papowerswitch.com.
WHAT’S WATT | General Rebates
Consumers can save by using rebates provided by the U.S. government and administered by each state. At the Energy Star Web site, find the section about rebates and enter your zip code to get a list of rebate programs and products. In Pennsylvania, you can receive $100 to $500 rebates on boilers, furnaces, gas storage, and tankless water heaters. Old units must be replaced with an ENERGY STAR® qualified model. The program continues until the funds are depleted. Find this information at www.energystar.gov, go directly to the Pennsylvania program at www.paheatingrebates.com, or call 1-877-592-2061. PPL also has a rebate program at www.pplelectric.com/e-power.
WHAT'S WATT | Solar Energy Rebates
The Pennsylvania Sunshine Solar Rebate Program will provide $100 million in rebates for businesses and residences that install solar electric and/or solar hot water systems. Go to the Pennsylvania Department of Environmental Protection Web site, www.depweb.state.pa.us, and click on the “DEP Programs A-Z” tab on the left; then click on “S” and then “Sunshine.”
WHAT’S WATT | Tax Credits
The federal government is offering tax credits for some energy-efficient items installed in residences, such as windows and doors; heating, ventilation and air conditioning systems; water heaters (non-solar); roofs; insulation; and biomass stoves. This program expires at the end of this year. The geothermal tax credit extends until 2016. For more information, go to www.energystar.gov or to www.energysavers.gov and look for the tax credit link.
