Energy Update

Went through all our electric bills this AM and updated my energy use spreadsheet. The Old Amigo was curious about something. Yesterday, you see, we received our notice from Puget Sound Energy that our annual production credit would amount to just over $700 for the previous 12 month period. That's in addition to the monthly bill reductions we get due to instantaneous PV output. Then there is the sale of Green Tags. That's not much, and it prevents me from "making any claims, public or private about our home being 'solar powered' (the Amigo is not claiming that!)"

Anyway, with one thing and another, I figure our total energy bill is about $1100 less per year than it would be if we didn't have that PV system on our roof.

We installed the system when the Republicans' renewable energy policies were in effect, which meant (big surprise) that businesses could deduct a percentage of their installation from their taxes but homeowners could deduct a percentage up to a (modest) total number of dollars. It's better now: homeowners and businesses get the same deal.

So I figure that we're getting a partially tax free financial return of about 4.4% on our PV system investment. Why tax free? Because we're not generating income; instead we're lowering costs. That's not bad. Plus, it's locked in as long as the price of electricity doesn't drop precipitously. I suppose that's a possibility. Do I hear hysterical laughter at that prospect?

Several times people have asked me "when's the payback?" for my PV system. This was usually asked with a somewhat superior smirk that implied I was stupid for installing the system at all. The implication that something that wouldn't pay for itself in five years or less was a waste of money. Now I've decided that the whole payback question is bogus.

We have to buy electricity anyway. The house is energy efficient (HERS index ~50... we use about 6.3 kW-hr/sq. ft.), so we're not using the PV system to offset a profligate use of energy.

If you were to invest in a bond fund that gave you a 4.4% rate of return that is likely to rise with energy prices, you wouldn't be considered stupid.

Would you?

Energy Update

Even though it's only St. Patrick's Day, the energy performance of our house here at the edge of the continent is ramping back up. In the past week we've had several days in the high teens and low 20's of kW-hr of energy produced. Even though we've had dark, cloudy, sometimes rainy mornings, the sun has come out around 10:00AM or noon and stayed out for most of the rest of each day. Result: the passive solar design of the house kicks in and the central heat shuts off.

On the very dark, cold, wet days, I frequently build a fire in the tiny Jotul wood stove in the main room of the house. We keep the blinds drawn to add to reduce heat loss through the glass. Result: the central heat shuts off and the house is very cozy.

In short, all that insulation and all those good windows, and that passive design are actually working.

Recently, several people have mentioned to the Old Amigo variations on the, "maybe I should put some solar panels on my house" theme. Now, the Venerable Friendly One is a big fan of active solar systems, but you know, it's so much more cost effective to avoid using the energy in the first place. Insulate. Get better windows. Manage solar gain and heat loss with some decent window coverings.

Oh, and if you haven't already, get with the program on compact fluorescents. Buy the bulbs marked EnergyStar. They're generally higher quality and will actually last more like the claimed life expectancy. Apart from a little bit of low-wattage "mood lighting," nearly all the light fixtures in this house at The Edge have CF's. They are big energy savers.

Happy saving! Let us know how you're doing with your personal energy program. If you have questions, please ask.