May 16, 2007 8:26 pm US/Pacific
Incentives Can Help With Solar Power Cost
by Jeanette Pavini
(CBS 5)
The solar industry is about to breathe a sigh of relief.
Lawmakers are pushing through emergency legislation to fix a glitch in California's solar energy program. Installations were slumping because of a provision that actually made solar energy more expensive for some customers than conventional power.
When Tane Chan shows off the electric bill for her family's San Francisco flat, she smiles.
"I'm just so proud of this. The bill is now down to $3.99," Chan said, adding it used to average over $200 a month.
"I was totally taken by surprise. I was amazed," she said. "That's washing machine, dryer, lights, that have to be on 24 hours for your common areas or entrances."
The Chans spent about $17,000 on the solar project.
"I figured with the rebates, it will pay for itself in about six years," she said.
Since the Chans installed their panels, the state rebate system has changed. Now, customers apply for renewable energy credits that cover up to 30 percent of the system cost. They can also qualify for a federal tax credit of up to $2,000.
Installers say the panels can also increase the value of your home.
"If you resell the home in the next 10 or 20 years, you'll recoup all the value added by the solar system, and all the energy you used becomes gravy, free," said Greg Kennedy of Occidental Power.
Kennedy said even homes in the fog belt can be good candidates for solar energy.
"We have dozens of homes with no electric bill out at the beach because it works with light, not heat," he pointed out.
The cost can go higher if your roof needs work.
And don't forget about insurance.
"If you have a fire in your house or whatever may cause damage, those items are covered," said Tully Lehman of the Insurance Information Network.
Then there are the intangibles, like how much greenhouse gas you're saving.
Installers say the cost of solar panels is expected to drop in the coming months as new manufacturers go online.
The bill currently in the legislature should be ready for the governor to sign early next month.
Editor's Note:
To estimate your cost and payback time, as well information on solar rebates and incentives, see Related Links on the right side of this page.
(© MMVII, CBS Broadcasting Inc. All Rights Reserved.)
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