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We are at a cross roads in human history, we can choose to continue on as we have been, or we can make a change to improve our future and quite possibly the future for several generations to come. We are here to promote energy independence, a better environment, a secure future and a higher return on investment for your hard earned dollar. It is what I believe in, it is why I am in the solar business.

New York to chart a Solar Thermal course

26 Jul 10 | Solar Hot Water, solar thermal

New York state has been providing incentives for photovoltaics  (PV) for several years now through NYSERDA.  Solar Thermal (ST) has relied mainly on tax incentives from the federal and state governments without direct rebates.  On average, about 500 ST systems have been installed per year in NY, vs. 20,000 systems per year for PV.  That is about to change.

According to the Customer Sited Tier Program released on June 29, 2010:

The following guidelines are expected to be incorporated into the solicitation(s):

1. Eligible measures are solar water heating for residential (single and multifamily), commercial buildings, and non-profits that replaces or displaces electric water heating. Equipment and systems must be certified by the Solar Rating and Certification Corporation (SRCC).
2. Expected performance will be based on the Solar Rating and Certification Corporation (SRCC) estimates or standard industry software such as RETScreen.
3. Incentives will be based on expected performance in $/kWh/yr or $/MMBtu/yr up to a maximum of 40% of installed cost after all other tax credits have been applied, with a set dollar maximum for residential and non-residential systems.
4. The program will be first-come, first-served. The residential program is likely to be implemented as a simple incentive process, as the typical residential system is small and often pre-packaged.
5. Solar Thermal hot water systems will receive incentives as an alternative to electric water heating only. MWhs saved due to electric water heating replacement/supplementation with solar water heating will be calculated and scored towards the RPS goal.
6. Installers will be required to conduct annual follow-up visits for a designated period of time.

Customer Eligibility Criteria:

  • customers must pay into the RPS
  • new or existing homes and buildings will be eligible
  • five-year warranty for the system will be required
  • residential customers must have a New York ENERGY STAR® home or have a “clip board”” or walk through energy audit conducted to determine cost-effective energy efficiency measures related to electricity use. Customers will NOT be required to implement energy efficiency measures to receive an incentive.

The largest cost savings gains can be realized by those who use electric to heat their hot water.  As I discovered first hand, about three years ago, my electric bill dropped by 1/3 when I installed a Solar Domestic Hot Water (SDHW) system.  My electric use went from over 12,000 kWh per year to just under 8,300 kWh per year.  In today’s money, that equates to $600.00 annual savings in electric costs.

The goal of NYSERDA in creating this incentive is to raise awareness of ST and increase installations to the same level as PV, which is about 20,000 installation per year in NYS.   As I have outlined in the past, the benefits of ST are:

  1. Less expensive than PV.  Consumers that use electricity to heat there water can make an apples to apples comparison and find that a SDHW system will cost about 10-15% what a PV system costs for the same energy output.
  2. Faster payback times.  Because of the reduced costs, paybacks range in the 5-6 year time frame with fewer rebates.
  3. Less regulator concerns.  A PV system requires many, many layers of bureaucracy to complete.  A ST system permitting and installation is usually straight forward.
  4. Energy output from ST is stable and does not decline with time.  PV systems age and slowly reduce the power output from individual panels.  ST systems have no such issues.
  5. More tolerant to shading and siting problems.  Not that a system should be intentionally installed in a shaded location, however, they will not drastically reduce their output if subject to some minimal diffused shading such as deciduous trees in winter time.

Not that I want to beat up on PV, that too is a fine system.  Solar Thermal, however, has several distinct advantages over PV, especially for a homeowner on a budget.

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26 Jul 10 | Solar Hot Water, solar thermal
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