| Commercial Solar Thermal
Costs, Paybacks and Maintenance |
| Here’s where efficiency really matters.
Utilizing water-efficient appliances will substantially reduce
your hot water demand. Lowering the hot water temperature
set point will reduce demand as well. Lower hot water demand
means a smaller, cheaper solar thermal system. |
| Costs |
Rather than spreading energy payments over
a long period of time, as we do with natural gas or electricity,
a solar system places all the costs up front. From there,
the sun doesn’t charge for its energy.
In determining costs, the first consideration is size.
It’s likely that an office or retail building will
require from 1 to 10 solar collectors (32 to 320 total
square feet), depending on building demand and the proportion
of demand to be met with solar heating.
Buildings in Georgia (north of Atlanta), South Carolina,
North Carolina, Tennessee, Alabama and all points north
will probably want to go with either a freeze protection,
closed-loop system or a drainback system. These freeze-safe
systems are more expensive than the simpler systems.
A local installer will be able to determine what types
of systems can handle your climate.
Fully installed, a two panel, indirect system will probably
cost from $3000 to $4500. The system itself will likely
cost between $2000 and $3000, while labor will add another
$1000 to $2000. A simpler, non-freeze protected system
could easily be $1000 less expensive overall. Only a
local retailer and installer can provide a hard price
quote.
|
| Payback |
Payback is dependent upon how much of the
total hot water bill is offset and the local cost of gas
or electricity.
For large commercial buildings with good solar exposure
and nonfreezing year-round temperatures, payback times
can be as short as 18 months. For smaller retail and
office buildings, payback times could be as long as 18
years. It’s likely that small commercial buildings
with water usage similar to an average residence will
see a payback in 7 to 10 years.
|
Incentives
As part of the Energy Policy Act of 2005, the U.S. government offers a 30% tax credit for qualified solar hot water system expenditures. This business investment tax credit for solar equipment does not have a maximum credit limit. The incentive applies to equipment placed in service between January 1, 2006 and December 31, 2007. After December 31, 2007, the permanent 10% solar tax credit for businesses resumes.
To learn more, read Tax Incentive Opportunities for Solar and Energy Efficiency on the Southface factsheet page. |
| DSIRE Database |
|
The North Carolina Solar Center has put together a website
called DSIRE, or Database for State Incentives for Renewable
Energy. Refer to this website for a comprehensive list
of incentives in your state, and check with your utility
provider for additional incentives.
www.dsireusa.org
|
| Here are a few highlights from DSIRE concerning
commercial solar thermal: |
| • |
the federal government provides a 30 percent tax credit
to businesses that invest in solar systems,
including solar water heating |
| • |
various special financing and mortgaging plans exist for
solar thermal systems through Fannie Mae and the U.S. Department
of Energy |
| Remember: |
| • |
renewable energy and energy efficiency legislation can
be retroactive, meaning you could receive a credit for your
solar system years after you’ve paid it off |
| • |
future unpredictability in energy markets could mean your
solar system will be an increasingly valuable asset |
| Maintenance |
| Maintenance for these solar thermal systems
is typically very low. Officially, indirect freeze protection
systems need to have the heat-transfer fluid changed about
every two years, but some users claim to have no problem
with decade-old fluid. |
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Link to Solar Thermal Manufacturers List |
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Link to Solar Thermal Installers List |
