Considering the alternatives
Homeowners considering the energy alternatives JEN RYNDA/BALTIMORE SUN MEDIA GROUP Dave Sinclair says the solar-powersystem hehad installed in spring 2015 at his Catonsville home, at acost ofbetween$30,000 and $40,000,has cut his ultility bill by half. Hefigures he’ll recoup the installation costs in 10 years.
JONBLEIWEIS/BALTIMORE SUN MEDIA GROUP Drew Derrick had ageothermal system installed at his Catonsville home. The $70,000 initial cost dropped to about $40,000 afterapplying rebates and tax incentives, hesaid.
ENERGY, From page 1 Maryland last year, an86percent increase over2014.
“It’s becoming more of an everyday thing,” said John Hencken, vice president of SolarGaines, aBaltimoresolar powersys- tem installer who has two solar arrays on his Catonsville house.
Taxcredits,rebates and other incentives can lowercosts for such systems,but prices can still be steep: An average geothermal system in Maryland runs around $25,000 and purchasing asolar system can be about $30,000.
Industry officials say the savings on utility costs over afive- to10-year period can offset those upfront costs.
“It’s not some sort of off-the-wall thing, wherepeople are hoping it would pay them back one day inthe future,” Hencken said.
“It’s much more clear.”
For the Derricks, the upfront cost to install a geothermal system and related interior work was about $70,000. After applying rebates and tax incentives,Derrick said the cost dropped toabout $40,000.
The statemakes solar projects eligible for a $1,000 credit and geothermal heating and cooling systems are eligible for a $3,000 credit. BGE offers a $1,620 rebate on geothermal heat pumps through its BGE Smart Energy Savers program.
Home solar systems can qualify for a federal tax credit equal to 30 percent of the purchase price. The federal government also has offered a30percent credit for residential geothermal heating and cooling installations,but it’s set to expire atthe end of 2016.
BaltimoreCounty provides aproperty tax credit of up to $5,000 for solar or geothermal heating devices,and $1,500 for solar hot-water heaters. The program has been so popular there’s awaiting listuntil 2021; the county funds the program at $750,000 ayear,officials said —not enough to keep pace with applications.
The Sinclairs areonthe wait listfor the county credit.
The Derricks estimate itwill take about six years for the savings from his geothermal system to cover the price difference between geothermal and amore conventional system.
“People mayhaveknown about geothermal in the pastorheardabout it, but never considered it areal option for them,” said Alex Kougianos,owner of Supreme Air,the Baltimore air conditioning, heating and geothermal company that installed the Derricks’ system. “Then incentives were created, and it got the word out.”
Supreme Air’s geothermal sales have been on the rise each year,Kougianos said.
Last year, the company’sgeothermal division installed about 170units —about $3.8 million in revenue, hesaid. This year, the company isprojected to do about $4 million in geothermal work.
While system prices vary, largely based on drilling fees, the installation cost for a typical house in Maryland is in the mid-$20,000 range, inline with the national average, according to Douglas Dougherty,presidentand CEO of the Geothermal Exchange Organization, a nonprofit trade group.
The typical payback period for a geothermal system — as lower energy bills compensate over time for the installation costs —isfour to seven years, and can be shorter with rebates,according to the trade group.
SolarGaines’ Hencken said solar panel purchases gained momentum after 2009, when the federal government sweetened tax credit incentives, removing a $2,000 cap that was in place. He said the cost of materials has come down in recent years, making systemsmoreaffordable.
“That’s what made it an industry,”
Hencken said.
SolarGaines, opened in 2009, has had business volume double every year and now has about400 customers,he said.
When it comes to solar-power systems, customers can buy them,lease them or sign what’s known as a purchase power agreement, or PPA. With such an agreement, a company installs, owns and maintains the system and sells electricity to the homeowner at a price that is typically below marketrates.
Lease and PPA contracts generally are in force for 10 to 25 years, according to trade associations,though terms can vary.
The Sinclairs spent between $30,000 and $40,000 to install a 36-panel solar system.
They decided to buy the panels outright instead of leasing, so they could take advantage of tax credits and incentives.
With rebates and credits, Dave Sinclair believes they’ll recoup costs within10 years.
“I think plugging into things like solar energy ... is a great opportunity,” Sinclair said. “It’s a good way to supplement and Howthey work GEOTHERMAL SYSTEMS While the temperatureoutside changes overthe course of the year,it remains moreconstant underground.
In the winter, underground pipesthat connect to aheatpump circulate water, which absorbs heat from the ground and sends it to the indoor heat pump.The pump takesheatfromthe liquid and is supplemented by an electric heat pump for additional warmth. In the summer,the processis reversed. The heat pump takesthe hotair from inside the home and removesthe heat, leaving behind cool air to be circulated as air conditioning.
SOLAR PANELS Solar panels, typically installed on roofs, absorb light from the sun to generateelectricity. Photovoltaic cells in the panels convert it to electricity, and the electrical panel sends power to whatever in the home needs electricity, such as appliances or lights. Autilitymeter trackshow much is used and howmuch extrapower is sent away from the home to the grid, or network of existing powerlines.
Some poweralso canbestoredin batteries. offset some of the dirty power generated for our use.”
Drew Derrick has recommended geothermal systems to others but acknowledges that the costs can be prohibitive without incentives. He’s concerned about the federal credit expiring at the end of this year.
“It’s going to be harder and harder to warrant people getting these systems installed,” he said. “The costis twice as much, and without that 30 percent off and those other rebates, it’s just not going to be affordable to an average person.”
JONBLEIWEIS/BALTIMORE SUN MEDIA GROUP Drew Derrick had ageothermal system installed at his Catonsville home. The $70,000 initial cost dropped to about $40,000 afterapplying rebates and tax incentives, hesaid.
ENERGY, From page 1 Maryland last year, an86percent increase over2014.
“It’s becoming more of an everyday thing,” said John Hencken, vice president of SolarGaines, aBaltimoresolar powersys- tem installer who has two solar arrays on his Catonsville house.
Taxcredits,rebates and other incentives can lowercosts for such systems,but prices can still be steep: An average geothermal system in Maryland runs around $25,000 and purchasing asolar system can be about $30,000.
Industry officials say the savings on utility costs over afive- to10-year period can offset those upfront costs.
“It’s not some sort of off-the-wall thing, wherepeople are hoping it would pay them back one day inthe future,” Hencken said.
“It’s much more clear.”
For the Derricks, the upfront cost to install a geothermal system and related interior work was about $70,000. After applying rebates and tax incentives,Derrick said the cost dropped toabout $40,000.
The statemakes solar projects eligible for a $1,000 credit and geothermal heating and cooling systems are eligible for a $3,000 credit. BGE offers a $1,620 rebate on geothermal heat pumps through its BGE Smart Energy Savers program.
Home solar systems can qualify for a federal tax credit equal to 30 percent of the purchase price. The federal government also has offered a30percent credit for residential geothermal heating and cooling installations,but it’s set to expire atthe end of 2016.
BaltimoreCounty provides aproperty tax credit of up to $5,000 for solar or geothermal heating devices,and $1,500 for solar hot-water heaters. The program has been so popular there’s awaiting listuntil 2021; the county funds the program at $750,000 ayear,officials said —not enough to keep pace with applications.
The Sinclairs areonthe wait listfor the county credit.
The Derricks estimate itwill take about six years for the savings from his geothermal system to cover the price difference between geothermal and amore conventional system.
“People mayhaveknown about geothermal in the pastorheardabout it, but never considered it areal option for them,” said Alex Kougianos,owner of Supreme Air,the Baltimore air conditioning, heating and geothermal company that installed the Derricks’ system. “Then incentives were created, and it got the word out.”
Supreme Air’s geothermal sales have been on the rise each year,Kougianos said.
Last year, the company’sgeothermal division installed about 170units —about $3.8 million in revenue, hesaid. This year, the company isprojected to do about $4 million in geothermal work.
While system prices vary, largely based on drilling fees, the installation cost for a typical house in Maryland is in the mid-$20,000 range, inline with the national average, according to Douglas Dougherty,presidentand CEO of the Geothermal Exchange Organization, a nonprofit trade group.
The typical payback period for a geothermal system — as lower energy bills compensate over time for the installation costs —isfour to seven years, and can be shorter with rebates,according to the trade group.
SolarGaines’ Hencken said solar panel purchases gained momentum after 2009, when the federal government sweetened tax credit incentives, removing a $2,000 cap that was in place. He said the cost of materials has come down in recent years, making systemsmoreaffordable.
“That’s what made it an industry,”
Hencken said.
SolarGaines, opened in 2009, has had business volume double every year and now has about400 customers,he said.
When it comes to solar-power systems, customers can buy them,lease them or sign what’s known as a purchase power agreement, or PPA. With such an agreement, a company installs, owns and maintains the system and sells electricity to the homeowner at a price that is typically below marketrates.
Lease and PPA contracts generally are in force for 10 to 25 years, according to trade associations,though terms can vary.
The Sinclairs spent between $30,000 and $40,000 to install a 36-panel solar system.
They decided to buy the panels outright instead of leasing, so they could take advantage of tax credits and incentives.
With rebates and credits, Dave Sinclair believes they’ll recoup costs within10 years.
“I think plugging into things like solar energy ... is a great opportunity,” Sinclair said. “It’s a good way to supplement and Howthey work GEOTHERMAL SYSTEMS While the temperatureoutside changes overthe course of the year,it remains moreconstant underground.
In the winter, underground pipesthat connect to aheatpump circulate water, which absorbs heat from the ground and sends it to the indoor heat pump.The pump takesheatfromthe liquid and is supplemented by an electric heat pump for additional warmth. In the summer,the processis reversed. The heat pump takesthe hotair from inside the home and removesthe heat, leaving behind cool air to be circulated as air conditioning.
SOLAR PANELS Solar panels, typically installed on roofs, absorb light from the sun to generateelectricity. Photovoltaic cells in the panels convert it to electricity, and the electrical panel sends power to whatever in the home needs electricity, such as appliances or lights. Autilitymeter trackshow much is used and howmuch extrapower is sent away from the home to the grid, or network of existing powerlines.
Some poweralso canbestoredin batteries. offset some of the dirty power generated for our use.”
Drew Derrick has recommended geothermal systems to others but acknowledges that the costs can be prohibitive without incentives. He’s concerned about the federal credit expiring at the end of this year.
“It’s going to be harder and harder to warrant people getting these systems installed,” he said. “The costis twice as much, and without that 30 percent off and those other rebates, it’s just not going to be affordable to an average person.”
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