Consumers, Builders Look to the Sun as Energy Prices Soar

By R.P. Whittington

Gail Greenblatt has long been an environmental advocate, becoming involved in the nature conservancy in her college days – years before it was known as the "green movement."

But the recent rise in energy prices, up more than 30 percent in northeast Florida over the last year alone, along with new federal tax incentives and a concern of the environment, prompted Greenblatt to make the big leap in 2006 – installing a solar water heater and an entire solar electric (called a photo voltaic) system at her home.

"I toyed with the idea for a long time before I finally made the decision," Greenblatt said. "Energy prices have stabilized, but I doubt they’re ever coming down, especially with the competition for energy in countries like China and India."

So Greenblatt contacted Jacksonville-based SunWorks Solar Systems, Inc., the largest solar energy distributor and installation company in northeast Florida, to install a solar water system at her home in January – and a solar electric system to power her home.

According to SunWorks president David H. Smith, Greenblatt picked the most appropriate time over the last three decades to install her systems.

"The new energy bill that went effect in January gives residential consumers a tax credit of 30 percent, up to $2,000 each, toward the cost of installing a solar water heater and a solar electric system," said Smith. "There’s also a 30 percent tax break on commercial installations with no monetary cap."

Whether it is a residential or commercial building, water heating and air conditioning are two of the largest users of energy. Switching the water heating portion to solar can save the average homeowner between 15 to 30 percent on their utility bills – representing a savings on the bill up to $600 a year or more.

Depending on family size and type of solar water heater, the cost of an installed residential system ranges from $2,500 to $6,500 before any tax credits or utility incentives are deducted. These credits can now lower the installation cost to between $1,800 and $4,500 – depending on the size and type of system.

Also, builders can receive financial incentives for installing solar power systems through a state program coordinated by SunBuilt, the Florida Solar Energy Research & Information Foundation. Builders receive rebates or system vouchers to reduce the initial purchase costs of solar systems.

While Greenblatt took advantage of the tax credits to help with both the solar water heater and the solar electric installation, there are additional long term production incentives to help her recoup the $15,000 cost of the solar electric system. These incentives are call "Green Tags" and are based upon the amount of electricity produced by the system each year. SunWorks helps Greenblatt track and collect them. The system uses solar panels on the roof of her home to turn sunlight into energy that is then used to power the electrical system in the house and charge a battery back-up system for cloudy days and power outages.

"Since I’m retired and older, I doubt I’ll ever recoup that investment," she said. "That’s why I think it’s terrific that homebuilders are now gravitating to installing solar systems when they build a home. It’s easier to absorb when the cost is included in the mortgage."

Hanalea Construction, a custom home builder at the beaches, recently committed to build its next five houses with solar hot water systems. President and owner Linda Pomerantz says that though her company only builds a set number of homes each year, it’s a start.

"We made a decision to be a green-home builder last year," she said. "We like the energy efficiency because it’s good for the homeowner and the environment. As more of us in the industry do this, I believe more of the large builders will follow suit. "

Hanalea currently has two homes, each equipped with solar hot water systems, being constructed on Jacksonville Drive in Jacksonville Beach. Along with the solar hot water systems, each are built with concrete block on the first and second level, have impact-resistant windows, and have gas stoves so the owners can cook and have hot water in case of power outages.

"With the solar and the gas options, the owners of these homes should be able to ride out any storm," she said.

Unfortunately, companies like Hanalea are the exception among builders.

"If builders promoted solar power systems more, I think more people would have them installed in new homes," said Dan McCaskill, a long-time Arlington resident who is working with Prism Design and Construction to build a new home on Eagle Bend Terrace in north Jacksonville. McCaskill had to initiate the addition of a solar hot water system into his plans.

"In my case, I did all the solar research myself," he said. "I picked out the system I wanted and hooked my solar contractor up with the builder. However, the higher-end spec homes drive the marketplace, and it would be a good idea if those builders offered solar as an option. I really think more people would take advantage of it."

Regardless, SunWorks is getting more requests for system installation since the federal incentives went into effect in January.

"Consumers are moving to take advantage of the incentives, which is good because they will expire at the end of two years, so the opportunity is limited," Smith said. "Certainly, our hopes are that the tax incentives will be extended beyond 2007."

Media Contact: Ron Whittington (904-563-0402)