Solar Systems |
| I want my own solar system! solar thermal What is solar thermal energy? Solar thermal technologies use sunlight to provide heat for domestic hot water, space heating, and heating swimming pools. These systems are generally divided into passive designs, which allow heat from the sun to be absorbed and stored by building components (like concrete or stone surfaces) and active systems, which use collector panels and mechanical components to provide thermal energy to a building. Solar thermal systems are meant to supplement a building’s primary hot water and space heating systems; usually they are not intended to replace them. Is solar thermal energy effective in Minnesota? Solar energy is plentiful in Minnesota, having as much solar energy annually as most of the U.S. For example, a typical solar water heating system in Minnesota can provide 50 to 75% of total energy required for hot water. Space heating requires a larger system, but is effective in significantly reducing a building’s need for other energy resources like natural gas, fuel oil, or propane. What are the benefits of solar thermal energy? Solar thermal energy is a renewable or sustainable energy source, and can be a cost effective and reliable way to provide heat for buildings. Adding passive solar into building design and remodeling will make your building more sustainable. In addition, solar thermal is a strategy for addressing climate change, diversifying our energy supply, increasing Minnesota’s energy independence, and boosting the state’s economy. Where should solar thermal systems be located? Not every site is well suited for solar thermal applications. The site should have good solar access to the south with minimal shading from trees, buildings, or other obstructions. Still, solar thermal siting requirements are much more forgiving than those of solar electricity. Therefore, solar thermal is more versatile and appropriate for a greater number of locations. If you have a south facing roof or yard area with good southern exposure, free of trees, buildings and other obstructions, you should consider having a more formal site assessment done by a solar contractor. See the Minnesota Renewable Energy Society’s website at www.mn-renewables.org and click on Explore Renewables to access a list of contractors. How much do solar thermal systems cost? Solar hot water is the most cost effective solar technology available. Since sunlight is free, once the equipment is purchased, there is only maintenance, which is minimal.The installed cost of a solar hot water system is approximately $6,000–10,000 for a typical residential installation (before incentives). For a residential system that employs both water and space heating, the range is $18,000 - $25,000. Energy efficient mortgage financing is one way to make a solar thermal system cost effective. Rolling the cost of the system into a mortgage alleviates the need for a large upfront expense and distributes the cost of the system over a number of years. The FHA 203(k) program enables a home buyer or investor to obtain a single loan to finance both property purchase and complete major improvements (like a solar thermal system) after the time of loan closing. What incentives exist for solar thermal technologies? There is a personal federal tax credit of 30% of the cost of a solar thermal system (up to $2,000) for residential systems and a business tax credit of 30% of the cost of a solar thermal system for commercial systems installed between January 1, 2006 and December 31, 2008. In addition, the state of Minnesota exempts solar equipment from sales tax. Many homes with solar thermal systems will also qualify for Energy Efficient Mortgages through the FHA. For a current list of government and utility incentives for solar thermal and other renewable energy technologies, visit the Database of State Incentives for Renewable Energy at www.dsireusa.org. (over) I want my own solar system! solar electric What is solar electricity? Solar electricity is the process of using sunlight to generate electric current, which can then be used to provide power to a building. The process, although somewhat complicated, is familiar to most of us in the form of solar powered calculators. Does solar electricity make sense in Minnesota? Virtually every region in the United States has plenty of solar energy to produce electricity from the sun, and Minnesota is no exception. Currently, there are approximately 500 kW of installed solar electric capacity in Minnesota. What are the benefits of solar electricity? Solar electric systems have low maintenance and operating costs and can produce electricity for 30-50 years, well past their payback period. Solar electric is a source of non-polluting power and helps mitigate climate change by reducing fossil fuel consumption. It also helps to diversify the energy supply and increases Minnesota’s energy independence. Solar electric is creating local jobs and stimulating the local economy, as well. What are the challenges of solar electricity? The single biggest barrier to solar electricity is initial investment. However, the costs of solar electric panels are expected to decline, perhaps by up to 50% by 2010. Siting a solar electric system can be a challenge since any shading from obstructions significantly reduces the system’s performance. State law allows local zoning boards to create solar access easements to protect a property owner’s solar investment from shading. What does a solar electric system cost? The cost of a solar electric system varies with the size and type of system and available incentives. A typical 2-3 kW residential system costs approximately $20,000-30,000 installed, before incentives. What is the Minnesota Solar Rebate Program? The Solar Rebate Program was established in July 2002 to provide rebates for up to 500 kW of grid-connected photovoltaic (solar electric) systems in Minnesota. The program offsets the cost of installing new solar electric systems by $2 per watt, up to 10 kilowatts. This in effect reduces the cost of a system by about 20% for consumers. The availability of funding for the rebates is determined by legislative allocations. What other incentives exist for solar electricity? There is a personal federal tax credit of 30% of the cost of a solar electric system (up to $2,000) for residential systems and a business tax credit of 30% of the cost of a solar electric system for commercial systems installed between January 1, 2006 and December 31, 2008. In addition, the state of Minnesota exempts solar equipment from sales tax. Many solar electric systems will also qualify for Energy Efficient Mortgages through the FHA. For a current list of government and utility incentives for solar thermal and other renewable energy technologies, visit the Database of State Incentives for Renewable Energy at www.dsireusa.org. For more information... To learn more about solar energy options, check out: National Renewable Energy Laboratory www.nrel.gov Department of Energy www.eere.doe.gov Minnesota Department of Commerce www.commerce.state.mn.us |
Author Department of Energy
