The Maryland Coastal Bays Citizen Advisory Committee recently hosted "Go Green and Save Green: An Alternative Energy Presentation", at the Globe Theater in Berlin, MD, a Speaker Series event featuring local experts. The evening included presentations from Doug Hinrichs of the Maryland Energy Administration (Federal and State Incentives); Ray Emmons, owner Eastern Shore Solar (Residential Solar to Hot Water Systems); Finnian McCabe of Flexera (Residential Solar to Electric Systems); and Mindy Allen from A&A Companies (Residential Geothermal Systems).

Alternative energy is increasing in popularity among residential and business property owners. Aside from the positive environmental impacts, there’s additional reason to weigh the options available. An upcoming change in the power generation industry will mean significant cost increases to the consumer.

By 2017, coal-fired power plants that produce an estimated 65,000 megawatts of power will likely be retired; coal-fired plants currently produce about half of the power in the U.S. In order to comply with new EPA environmental regulations, coal-fired plants will have to undergo costly upgrades. Those who don’t will have to be retired. The predicted shortage of energy, coupled with the increased cost of producing energy by those coal-fired plants that do make the necessary upgrades, means that the cost differential will trickle down to the consumer—which could mean as much as a 40 to 60 percent increase on electricity bills in the next several years.

Alternative energy sources either harness naturally occurring resources, or use those same resources to actually produce power, thus decreasing dependence on the traditionally sourced energy grid—like coal-fired plants. Alternative energy offers numerous benefits for the environment, but for the homeowner, the choice to install one often simply comes down to cost.

Naysayers bring up the substantial upfront cost of alternative systems. The federal and state incentives do off set those costs. If that amounts to enough dollars to make alternative sources a feasible option, depends upon the system itself, the condition of the house or business, and of course personal finances.

Below is a synopsis of the presentations offered, to see if alternative energy is a viable option for your home or business.

Federal and State Incentives:

  • Federal: 30% Federal Tax Credit (Uncapped Amount)
  • State: $500 to $1,000
  • SREC: Solar Renewable Energy Credit
  • Consumers own these “certificates.” The Renewable Portfolio Standard (RPS) requires electricity suppliers to secure a portion of their electricity from solar generators. Consumers can sell these on to the market, based on their current value. Amounts vary, but could mean several thousands back per year. Further explanation on SREC.

Additional information on all state and federal incentives, here.

Solar Thermal, Eastern Shore Solar:

What is it? System that captures and stores solar heat

How it works: Collector Panel is placed on the roof, which collects solar heat and transfers it to the hot water tank/heater via a double loop system.

Positives:

  • Most economical of all systems; average cost of $8,000-$10,000
  • Based on current incentives and SREC payouts, system could pay for itself in as little as 18 months
  • Lower heating bills

Negatives:

  • Only supplies heat; thus is only used for heating hot water and heating the home

Solar to Electric (Solar PV), Flexera

What is it? Solar photovoltaic system

How it works: Generates electricity from sunlight using solar panels commonly placed on the rooftop, or on land if on a large-scale.

Positives:

  • Can potentially produce enough electricity for heating, cooling, and all appliances, thus providing complete energy independence.
  • Of the three systems explained, the only one that actually produces energy.
  • If the system produces more energy than the home needs, the unused electricity can be bought via net metering, providing the homeowner with payouts in addition to the SREC’s.
  • Paid for in 6 years.
  • Lower to potentially no electric or gas bills

Negatives:

  • Up front cost of at least $25,000

New Lease option:

  • Means no out of pocket initial cost
  • Third party owns the system, homeowner “rents” it; third party then receives the federal tax incentive, and SREC or grid payouts, and state grants
  • Lower bills, even with lease payment
  • Buy-out option
  • Offers the only feasible way for cash-strapped homeowners to enter into the alternative energy market. Only system to offer a lease option

Geothermal, A&A Companies

What is it?   Energy derived from the natural heat of the earth to heat and cool home. Doesn’t create heat, but rather collects it and moves it.

How does it work? Well drilling down into the earth to a depth of (locally) 180 feet where the earth maintains a constant temperature of 58 degrees. A solution of 90% water and 10% ethanol mix runs continuously through a closed loop piping system. Beneficial for heating and cooling purposes because the temperature maintains at 58 degrees; the system works like a heat pump, but exchanges with the temperature of the ground, not the air, which can vary greatly.

Positives:

  • Longest lasting system
  • Efficient for heating and cooling

Negatives:

  • Only works for heating and cooling, not other electric needs
  • Up front cost is substantial: $35,000 and above

Other considerations:

  • Much like considering any new system for heating and cooling needs, homes need to be properly insulated, or the energy harnessed or produced will go right out the windows and cracks, resulting in less money saved.
  • Systems that work in conjunction with HVAC, like Solar PV, may require that the HVAC system be replaced prior to install if the system is inefficient, for optimum results.
  • Consider a home-energy audit to make sure your currently installed systems are up to date and your home is properly insulated. Traditional power providers sometimes offer audits to customers for free. Companies like Flexera offer energy audits as one of their services, for a fee.
  • Additionally, many alternative energy companies offer free site assessments. They survey your property, look over your energy bills, and make a recommendation on the size of a system based on findings. This will also give you a good indication of overall costs, and what you can expect to save.