Due to recent changes in laws, some Hoosiers have a sense of urgency about installing solar panels (for example: GOAL ZERO NOMAD 100 )and getting their neighbors on board as well. Initiatives have begun across Indiana, including Carmel, Columbus, Elkhart, Evansville, Goshen, Indianapolis and Jeffersonville.
The sentiment was so strong here that a Solarize Batesville/Oldenburg group formed and made three recent presentations.
Project manager Phil Deardorff, Sunman, reported the federal tax credit phaseout is scheduled for 2019.
"A 30 percent federal renewable energy investment tax credit is available until Dec. 31, 2019, to individual taxpayers who install solar PV (photovoltaic) or solar hot water on property they own and use as a residence. For example, a $10,000 system would cost $7,000 after the tax credit. The amount of the tax credit will step down to 26 percent for systems placed in service after Dec. 31, 2019, and before Jan. 1, 2021, and down to 22 percent for systems placed in service after Dec. 31, 2020, and before Jan. 1, 2022, according to the Southern Indiana Renewable Energy Network (SIREN, https://www.sirensolar.org), which formed in Bloomington in 2008.
Net metering is a billing mechanism that credits solar energy system owners for the electricity they add to the grid.
The recent signing of Indiana Senate Bill 309 provides a push for residents considering solar energy to buy equipment sooner rather than later. If installed before Dec. 31, they will be able to participate in net metering for 30 years until July 1, 2047. After that deadline, the time period shrinks to 15 years until July 1, 2032. Hoosier who begin using solar equipment after July 1, 2022, will get the benefit of net metering for at most 10 years until July 1, 2032.
REMC is not required to participate in net metering.
At the first meeting Aug. 16 at the Batesville Memorial Public Library, Deardorff told about 30 attendees that Solarize Batesville/Oldenburg "will make going solar less expensive and easier than it would be going it on your own." The group (which also includes organizer Sister Claire Whalen, Mike Kruse, Joan Stephens, Don Lamping and Chris Merkel) "did the hard work of sending out requests for proposal" from companies that will install solar panels for residential and business customers.
Solarize Batesville/Oldenburg selected Lohrum Electrical, Greensburg, to install solar panels for area residents, Whalen announced Aug. 21 at the final information session, when she introduced Micah Lohrum to attendees. Lohrum was one of seven solar installation companies approved by the Hoosier Solar Initiative. A group discount provided each customer signing a contract by Sept. 30 approaches $3,000.
The price of installing a solar system is decreasing, according to the presenter. In 2010 the cost of a solar-generated watt was about $9. In 2016's third quarter that fell to $2.98 and now it's $2.50.
He said people decide to use solar energy to lower utility bills and also reduce the impact of electricity rate increases.
Some businesses and nonprofits are moving in this direction, too. Leaders at St. Thomas Lutheran Church, Bloomington, converted lights to LED, set thermostats lower and installed solar panels. The annual electricity cost went from $5,000 to zero. In June, the church received a $140 credit from the electric company for April and May. "They generated more than they could use."
He advised, "As you consider going solar, you're going to need to keep in mind placement of the panels, goals for how much electricity you want to produce and your budget and financing."
Solar panels can be installed on a building roof or mounted on the ground. "As the sunlight hits the panel, electricity is generated as direct current. What you're going to need is an inverter that will change it to alternating current, which of course then can be used in your house or garage."
Pete Lenzen, Bloomington, a SIREN volunteer, observed, "If you're in a homeowners association where they have covenants ... sometimes they won't let you put it on the roof." Perhaps backyard installation would be allowed.
Because a large tree shaded his home, Lenzen put his array on a pergola.
"Do you want to go 100 percent" solar energy? Or 50/50 with half the energy solar and half traditional (electric or gas)?
Lenzen reported, "We have maybe 15 solar installations in our SIREN database" at 100 percent. "The excess power you get credited for won't be full retail. Sometimes you're going to generate more than you need, other times not enough. You're going to be financially disadvantaged by that. We really recommend 50/50. That gives you time to get used to it and do some additional conservation measures in your home."
Lenzen opted for 50/50. March-June electric bills typically show zero owed. "When I get into the summer months, my air-conditioning demands are higher" and use up his credit. "Now I'm having to pay."
A larger array of solar panels would make sense if charging an electric car. "You're going to save a lot of money on that."
The speaker suggested gathering the last 12-18 months of utility bills to determine the average amount of energy used.
He gave some examples of costs. To go 100 percent solar with 10,000 kWh of electricity generated from panels per year, the cost of the array installed before tax credit would be $17,840 or after the 30 percent tax credit $12,488.
To go 50 percent solar with 5,000 kWh, the cost before tax credit would be $9,560 or afterwards $6,692.
The price includes a site assessment, permitting inspection fees, equipment (panels, racking, inverter), installation, Solar Renewable Energy Certificates registration and a data system, which requires internet.
After paying to purchase and install solar panels, customers reach the break even points after about 10-12 years. "After that your panels are paid for, you're still generating electricity and you're not paying those higher electric bills."
Financing options for solar panels include a home equity line of credit (no closing fee, monthly payment of interest only, tax deductible) and a home improvement loan (savings on electric bills can be larger than loan payments).
Local residents with solar panels were there to answer questions.
Bob and Mimi Ryan, Batesville, said when they put solar panels up, they happened to need a new roof. "Don't install panels on old roof." The SIREN volunteer added the ideal roof is a new metal one with a standing seam. "The solar panels just snap in there beautifully" and those roofs last for 40 years.
"Do they deteriorate with time?" one man asked. "Expect them to last 30 years," advised Lenzen. "After 20 years they'll still be generating at least 80 percent of their power. Slowly they will lose efficiency. We have solar panels in space that have been operating for decades. There are no moving parts."
The Bloomington man said solar panels "actually improve your (home) resale value" because of lower electric bills.
The next step for an interested customer is to sign a letter of intent (include 12 months of electricity use data).
Lenzen clarified, "A letter of intent is not a legally binding document. This is just an agreement that says, 'I've thought about this. I want to go forward to the next step.' A solar installer will look at the house's location, scan the horizon, take a digital photo and will determine how much solar generation you can get every month of the year. After you get a formal quote from your vendor ... then you are in the driver's seat. Then you sign an agreement" to purchase.
Whalen said by email Aug. 24, "All letters of intent need to get to us by the end of this month so the contractor can move quickly to make site visits" and issue contracts to homeowners and businesses by Sept. 30.
Site visits and installations will take place now through December. Any remaining installations could occur January-April 30, 2018.
According to Lenzen, "If you get your interconnect agreement (assures you can be on the grid with solar equipment) between you and the utility and system installed by Oct. 19, you're guaranteed ... net metering."
Steve Kristoff, Oldenburg, wondered, "Does the installing company facilitate that interconnect agreement?" "Many times they do," Lenzen answered.
There is interest here. According to Whalen, "Our team has sent 19 letters of intent to Micah Lohrum – and all of this happening within a week of offering our first info session. Pretty amazing what can happen when folks get excited about using renewable energy and having a bit of help to do so. The savings to their pocketbooks also helps!"
Area residents who missed the information sessions may contact Whalen at 812-933-6514 or cwhalenosf@gmail.com to get a pdf copy of the presentation, which includes photos of solar panels already installed at local homes and businesses and the letter of intent
More developments
• Solarize Batesville/Oldenburg could make national news soon. Lee Doyle and three others covered the Aug. 21 event for VICE Nightly News on HBO, according to Whalen. Doyle heard about Hoosier Solar Initiative's statewide efforts to attract homeowners to install panels now to take advantage of net metering incentives and group discounts and came from New York to include these efforts in a feature story he is developing.