Central Hudson is requesting a rate hike
29 Jul 08 | Solar ElectricIn one of the stranger press releases I have read in a while, Central Hudson Energy Group (NYSE:CHG) states:
Higher energy costs induced our customers to use less energy… the weakening economy has further induced our customers to use less energy… As a result, we believe it is necessary and prudent to take two actions. First, we are reducing our earnings guidance for 2008, and second, we are filing a utility rate case to bring our revenues into line with the costs to serve our customers. (emphasis mine)
Which is interesting in a way. The stock holders of a publicly traded company expect a certain payout over time, the utility company does everything in it’s power to provide that payout, including reducing line men and support staff, ect. However, when the economy really hits the floor and people begin conserving electricity so they can still pay for it, it is time to ask for a rate increase. Nice. By the way, I am already paying ¢16.8/kWh. How much higher can it go?
This is the problem with a publicly traded utility company. The most important thing is not the customer or the quality of service, its the bottom line on a P&L. It is more important to the CEO and the board of directors to keep the stock value high so they can get their yearly bonus and retire to Martha’s Vineyard than to provide good, reasonably priced electrical service to the community.
So, what is a homeowner to do? If you have read this blog, you already know the answer to that. Take control of the situation and be your own power company. Photovoltaics are looking more and more competitive these days especially with the state incentives available. As energy prices continue to rise and PV prices either stay relatively the same or drop, the utility companies will find themselves competing head to head with renewable energy products. They may find that they are pricing themselves out of a customer.
Update: It looks like they are filing for 3.5% increase on electricity and 10% on natural gas.
Tags: energy costs, photovoltaics, utility companies
Coal Power, our competitor.
28 Jul 08 | EnvironmentGet ready. As the energy crisis deeps, we will start to see more and more advertising by large scale energy producers about how drilling for more oil off the coast or in ANWR or perhaps removing more mountain tops in West Virgina will help us out of our problem.
The truth is, we are in it too deep for any of that to make much difference. WE have to transition to a new energy economy, one that depends more on distributed energy generation than huge centralized generating facilities. There will be many nay sayers that will say physics do not support the concept, or it will be too expensive, or take too long. The nay sayers are wrong.
Physics do support the switch to renewable energy to power almost all of our needs. Heavy transportation may still need to rely on fossil fuels for now, everything else can be powered by electric, which can be generated by solar, wind, hydro, wave, tidal, ocean currents etc. Distributed generation is better than centralized generation because the electrical grid is less likely to suffer a catastrophic failure, like it did in the summer of 2003 during the Northeast blackout.
Remove the oil and coal subsides. That will lower our federal taxes, something that is near and dear to the heart of every conservative, and allow the energy market to float on the economy, the way it is supposed to. Then you will see solar, wind, etc, etc, become viable competitors. The renewable energy sector would not have to rely on handouts from congress every few years to stay in business.
As far as a time frame, drilling in the north slope of Alaska or the continental shelf will take too long. It will be at least 10 years from drilling the first well until the time the first barrel of oil hits the market. While we wait, the economy will crash, we will all be broke or owned by Saudi Arabia. On the other hand, the production of solar and wind products are on the rise. New manufacturing capacity for raw materials and finished products is being added every year. R and D continues and new more efficient methods are coming on line.
The sooner we focus on that solution, the better off we will be.
This is a pretty good example of how large companies try to spin there environmentally disastrous products with some nice music and neighborly looking people.
Coal power. Cheap. Abundant. Cheap.
At the end of the ad, they should run a fast speaking disclaimer like all the used car adds you hear on the radio. Something like this:
This ad does not represent the truth. Using coal power releases sulfur dioxide, nitrous oxides, carbon monoxide, carbon dioxide, mercury, radio active elements and other harmful substances into the atmosphere. Sulfur dioxide and nitrous oxides cause acid rain, carbon monoxide is a deadly gas, carbon dioxide may increase global warming, mercury causes birth defects and brain damage, radio active elements cause birth defects and are a known carcinogen. The mining of coal seriously disrupts the environment and leads to permanent damage in most cases. Jobs created by coal industry are dangerous, low paying and often lead to black lung disease or other deadly health conditions. Use with caution.
WE need to make sure that the government does what WE want, lets stay focused. Don’t be fooled by all the hype in slick marketing.
Tags: Commentary
How long do Solar Systems last?
26 Jul 08 | Solar Electric, Solar Hot WaterThat is a very common question. The answer is, it depends. Solar systems, like all other mechanical systems require some maintenance. Last week, I came across a solar hot water drain back system that was 28 years old. The great thing is, it was still working just like the day it was installed. The only problem the home owner had encountered was a bad circulator pump, which the plumber replaced.
Properly installed drain back solar hot water systems using distilled water could, in theory, last almost indefinitely. Solar Hot water systems that use antifreeze will likely last only 30 years or so. Still, that is a great payback. For either system, over the course of its operational life, it should easily pay for it self 4 to 5 times over.
Photovoltaics are said to last 25 years however, their output slowly declines over time. After 25 years, most current photovoltaic panels will be producing about 80% of their rated power. Still, that is not bad, and a well designed photovoltaic system should pay for itself at least two to three times over its operational life (with current incentives).
The advantages of renewable energy systems, for those that are in it for the long haul, are:
- Stabilizes energy prices at or below their current levels, gives the property owner more control over expenses.
- Increases the property value of the residence or building they are installed on.
- Reduces emissions and environmental pollutants from nearby electrical plants.
- Reduces overall electrical load on grid, thus reducing the need for more power plants and high tension distribution lines.
- Spreads out electrical generation capacity, thus making it more difficult for any one catastrophic event to cause a regional blackout (distributed generation).
- Reduces the use of fossil fuels and thus dependence on other countries to provide energy for us.
As you can see, there are many advantages to a solar thermal, photovoltaic, wind, or microhydro system
Tags: distributed generation, Environment, photovoltaics, Solar Hot Water
Business Insurance for the Solar Installer
23 Jul 08 | General BusinessFor a contractor it is a must. Not only do most town building departments require a valid certificate of insurance to issue a building permit, the state of New York requires it to be an eligible installer for their PV program. It is also necessary to protect you from undue expenses in this highly litigious society we currently have.
It is a drag, but shopping around is necessary to find the best price. Here is what I found:
- State Farm, would not even talk to me. I spoke with three of there agents who stated that the field (solar installations) has not been around long enough, and that I had not been in business long enough. I will remember that in a few years when “The good neighbor” comes a calling looking to sell insurance.
- Local insurance agencies can vary greatly. Some people know what they are talking about, some do not.
- I found the best insurance deal through my bank, the Hudson Valley Federal Credit Union. They have and insurance company called Insurance Agency of the Hudson Valley, who have been very helpful
Even so, I gave them as much information as possible. The issue with solar equipment installation is it encompasses many areas. For example, I may do some light plumbing during a solar hot water system installation, but I am not a plumber. I may also do some electrical work during a PV installation, but I am not an electrician. I may place solar panels on a roof, but I am not a roofer. The generic category that best encompasses all of the many areas a solar installer may work is “Millwright.” From the Bureau of Labor Statics web site:
Millwrights install, replace, dismantle, and repair machinery and heavy equipment used in power generation, including wind power, hydroelectric damns, and natural gas turbines, and in manufacturing plants, construction sites, and mining operations. The development of new technologies requires millwrights to work with new industry-specific and highly complex precision machines. Some of these machines have tolerances smaller than the width of a human hair.
The millwright’s responsibilities begin before a new piece of machinery arrives at the jobsite. Millwrights consult with production managers, industrial engineers, and others to determine the optimal placement of the machine in the plant. Some equipment, such as a metal forging press, is so heavy that it must be placed on a new foundation. Millwrights either prepare the foundation themselves or supervise its construction. As a result, they must know how to read blueprints and to work with a variety of building materials.
When the new machine arrives, millwrights unload, inspect, and move the equipment into position. To lift and move light machinery, millwrights use rigging and hoisting devices, such as pulleys and cables. With heavier equipment, they may use hydraulic-lift trucks or cranes. Lifting such heavy equipment requires millwrights to understand the load properties of cables, ropes, hoists, and cranes.
While that is not a dead on description, it is pretty close.
As far as limits go, pretty standard:
- $1,000,000 each occurrence
- $100,000 rented property damage
- $5,000 medical expenses any one person
- $1,000,000 Personal injury
- $2,000,000 general aggregate
- $1,000,000 products
Tags: Business administration
Solar Equipment Service Calls
12 Jul 08 | Solar Electric, Solar Hot Water, solar thermalI have been receiving many calls from home owners with old solar equipment installed on their houses. Mainly, they are interested in seeing if the equipment is working or is worth repairing. What I am finding is that in many cases, it is worth the effort to repair these systems.
Last week I came across a drain back solar domestic hot water system that was installed in 1980, After 28 years, It was still working. The home owner had a pump replaced by the local plumber. Unfortunately, I think the plumber did not fully understand the concept of the drain back tank.
The problem with that system was the pump was installed higher than the bottom of the drainback tank, so it was cavitating every so often. I filled the drain back tank to the top and that reduced the cavitation but did not eliminate it. Even so, it seems to be working well and the homeowner was happy that they were back in hot water, so to speak. A well maintained solar domestic hot water system, particularly a drain back system, can last almost indefinitely.
Another antifreeze type system was left to stagnate over several years. I seems that some of the antifreeze has boiled off. This system needs to have its HTF (Heat Transfer Fluid) flushed out and replaced. While I was there, I pressure tested the solar loop to see if there were any leaks. After several minutes, the pressure began to rise as the panels heated up in the sun. After a good flushing and a few gallons of Noburst-100, the system should be good as new.
Was is really great to see, is that many of these orphaned 1980’s era solar systems are actually in good shape and with a little work can be put back in working order. I am also enjoying the challenges of trouble shooting of these legacy systems. No two systems are alike and they all seem to have different problems.
If you have an old solar system on your house, it may be worth it to see if it can be put back in service. If you have a working solar system, it may be good to have somebody look at it and see if there are any problems. Contact us for more information.
Tags: solar service
PV panels on Hybrid Cars
08 Jul 08 | Solar ElectricI always wondered why hybrid cars did not have some sort of PV panel on the roof or trunk area. It seems that a PV panel could help charge the batteries or keep them at optimum charge, thus reducing the use of the gas motor. This is especially true of plug in hybrids, which rely more on the electric motor and batteries than there non-plug in cousins.
It seems that Toyota has been thinking the same thing:
Toyota Motor Corp plans to install solar panels on some Prius hybrids in its next remodeling, responding to growing demand for “green” cars amid record-high oil prices…
The panels, supplied by Kyocera Corp would be able to power part of the air-conditioning on high-end versions of the gasoline-electric Prius, the source said.
“It’s more of a symbolic gesture,” said the source, who asked not to be identified. “It’s very difficult to power much more than that with solar energy.”
That is interesting that it is seen as a “symbolic gesture.” Of course, it would be impossible to power a moving car with a solar panel, but I would think that storage would not be an issue with the hybrid’s battery bank available. Plus, think of all those cars in the mall parking lot… If each one was charging a battery while it’s owner was in shopping, how much energy would that be saving when the happy shoppers returned home?
PV and all solar energy systems work rather like a marathon versus a sprint. Over long periods of time, large amounts of energy can be collected and used. High energy short term needs are still best met by hydrocarbon energy systems.
Tags: cars, photovoltaics, transportation
National Grid petitions to Raise Electrical Rates by 21.7 percent
04 Jul 08 | Conservation, Solar Electric, Solar Hot Water, wind powerHere it comes; the high price of fossil fuels are driving up electrical rates just like everything else. I read that headline in Rhode Island over the holiday weekend. How soon until Central Hudson and NYSEG follow suit? How will this impact your family’s budget?
Current fuel prices in the Hudson Valley (via NYSERDA) are as follows:
- Electricity: ¢17.1/kWh
- Natural Gas: $1.68/CCF
- Propane: $3.149/gallon
- Home Heating Oil: $4.809/gallon
- Kerosene: $5.077/gallon
I am very concerned about home heating this coming year. Many families may need to choose between heating and eating. Not a pleasant thought.
There are some things that can be done to reduce heating and electrical costs. I strongly recommend that people start now by
- Adding insulation to the attics, walls and floors.
- Seal up any outside air infiltration with calks and foam fillers.
- Replace old single pane windows and doosr with new energy efficient units.
- Have you furnace or boiler serviced.
- Replace old inefficient boilers or furnaces with newer more efficient models.
- Replace old inefficient appliances such as refrigerators, air conditioners and dishwashers with newer energy star rated models.
- Employ energy saving devices like programable thermostats.
Many of these items will pay for themselves with the money you save in a year or two.
If you have done all those things and still want to reduce you energy usage, look into renewable energy systems such as Solar Thermal, Photovoltaics and Wind Power to generate home energy.
Installing such systems can save you lots of money and free you from worrying about rate hikes and fuel costs in the future. At current equipment and energy prices, a solar domestic hot water system (SDHW) will pay for itself in 4-5 years. A photovoltaic system will pay for itself in about 8-9 years.
Interest rates are very low. If you choose to finance you system, you loan payment will likely be lower than potential savings, meaning you will see a an immediate decrease in expenses. You may also be able to write off the interest on a home equity loan as these systems are capital improvements. Of course every situation is different and tax matters are best discussed with an accountant or tax preparer.
If you have any questions, contact us, I’d be glad to discuss your options over the phone.
Tags: energy costs

