SOLAR POPS IN VIRGINIA

Home solar electric systems grow popular
Peter Bacque, October 31, 2010 (Richmond Times-Dispatch)

"…John Roberts has more than enough electricity for his needs… because he's installed a 2-kilowatt solar electric [photovoltaic] system…which makes electricity from sunlight…[It] cost Roberts $13,400, but he received a $3,500 federal tax credit and a $2,700 state renewable energy rebate that together reduced his expenditure to $7,200 [and he installed it himself under the direction of a licensed electrical contractor…Roberts uses only 1,400 kilowatt-hours of electricity for an entire year…

"…[T]he sun's energy powers [Virginia] homes that consume much more electricity…Tim Dolan's Newport News house uses almost 10,000 kilowatt-hours a year…The 8.1-kilowatt solar electric system Dolan uses cost $55,000. That was offset by a $16,100 federal tax credit and $14,000 from the state's renewable energy rebate program he received, bringing his price down to $24,900…Solar power can be used to generate electricity through photovoltaic cells or to produce hot water, and Virginia has sunshine for those uses. The state estimates solar energy could produce 11,000-13,000 megawatts in Virginia."

Virginia is joining the national trend. (click to enlarge)

"…2-kilowatt systems are what…[solar companies] typically install… at a cost of about $15,000…[T]oo costly for widespread use in wholesale power applications…government and utility incentives for renewable energy encourage small-scale solar-electric generation, which is expected to grow rapidly over the next 25 years…Residential solar photovoltaic and hot-water systems are eligible for a federal tax credit of 30 percent of the system's total cost, with no upper limit…Interest in Virginia's solar and wind-power rebate program far outran the money available, and the state has stopped taking applications. The federal economic stimulus program gave Virginia $15 million to provide rebates of $2,000 per kilowatt, up to 10 kilowatts, for solar electric systems, and $1,000 per kilowatt-equivalent for solar thermal systems.

"Home electricity generators can also sell credits [for about $300 each] for the energy that their systems generate…Solar renewable energy credits -- RECs -- represent the clean energy benefits of 1,000 kilowatt-hours of electricity from a sun-powered system. Utility companies buy the credits to meet the state's renewable energy goals…Dolan will earn about $3,000 this year from the sale of his renewable energy credits…"

It's only going to get better. (click to enlarge)

"Payback times for solar installations vary depending on the cost of the system and the home's location, experts said, running from as few as nine years up to 18…Simpler and less expensive, solar thermal systems are especially cost effective for heating water…Virginia has seen installed solar generating capacity soar from essentially zero in 1999 to 2.47 megawatts by September of this year…So far, however, solar energy makes up only a small part of the state's total electric production. For instance, Virginia power companies and electric cooperatives have more then 23,400 megawatts of generating capacity in the state…Of Dominion Virginia Power's 2.4 million customers…355 residential customers are using solar generation, with an average system size of 5.4 kilowatts.

"Solar system owners can take advantage of Virginia's net-metering laws to sell excess power generation back to the owner's electric utility…Net metering allows customers generating power from a renewable resource like solar energy to interconnect with the electrical grid. Their solar energy output offsets electricity purchases from Dominion, and customer is billed monthly only for the net energy consumed…"