Alternative energy seems popular, but may not be cost-effective

SAUK RAPIDS, Minn. - Oct 19 (The Associated Press)

Sauk Rapids resident Andy Opatz is doing what he can to conserve energy. This fall, he plans to turn to the sun.

"I've always been fascinated by the direct connection between the usage of energy and the energy source," Opatz said. "This is something I've thought about for years."

Statewide, 60 homes and businesses are part of an Xcel Energy Inc., rebate program for homes that go solar, said Mike Taylor, manager of the solar rebate program administered by the Minnesota Department of Commerce.

State officials have fielded about 40 applications for the program this year. The program, started in July 2002, opened to non-Xcel customers for the first time in January.

But state commerce officials say the program isn't the best way to save money on electric bills because startup costs are expensive.

Opatz, a language arts teacher and environmental enthusiast, is setting up solar panels on the roof of his house to capture the sun's energy and convert it to electricity.

For his efforts, Opatz could receive a rebate up to $8,000, a 5 percent sales-tax exemption for the panels and a monthly credit for the amount of energy he captures.

Opatz admits that getting to this point wasn't cheap. He spent about $30,000 purchasing and installing 16 solar sheets to an electrical grid. The sheets will be combined into two panels on the roof of his house.

Commerce officials say the program isn't the most cost-effective.

"Even with the rebate program benefits, the cost of solar electricity is more expensive than your current electrical utility rates," the Commerce rebate application tells potential participants.

Conserving energy by replacing an old refrigerator can be just as effective and cheaper, Taylor said.

According to state statistics, the average Minnesota home uses about 8,400 kilowatt-hours each year in electricity, or about 700 kilowatt-hours a month. But most solar energy consumers are more efficient than that, Taylor said.

Opatz said he uses between 300 and 400 kilowatt-hours each month, or between 3,600 and 4,800 kilowatt-hours each year. For him, the four-kilowatt solar system he's setting up could generate enough electricity to cover a year's worth of electricity.

Still, he estimates it could take him up to 40 years in utility savings to make up for his initial investment.

"That depends on the cost of electricity, though," Opatz said. "If prices go up, then it won't take as long."

Applications for the solar rebate program are available through the Minnesota Department of Commerce. Among other things, officials look to make sure the panels are in a site that's receiving enough sun, Taylor said.

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Information from: St. Cloud Times, http://www.sctimes.com