Aug 27 - Maryland Gazette

Karen and Brian Czarnowski had long kicked around the idea of putting solar panels on the roof of their Galesville home.

As former live-aboards on a sailboat, they're keenly aware of how they use resources such as power and water. Add to that concerns about climate change and pollution, and they're the perfect candidates for solar power.

But the staggering cost kept them from following through.

"At that point, the government incentives were pretty poor," Mr. Czarnowski said.

But once the state made its incentives much more generous this year - up to $10,000 per home - the Czarnowskis, and dozens more Maryland families, jumped on the solar bandwagon.

In the Czarnowskis' case, the state grant knocked $6,750 off the cost of their $27,000 system, which provides half of the power for their home.

They're also getting more help. A federal tax credit cut another $2,000, and they are hoping a property tax reduction comes through from the county, too.

And over the life of the system, the Czarnowskis could earn more by selling credits to utility companies that must buy a certain percent of their power from renewable sources - though the mechanics of credit trading still are in the works.

The Maryland grants, which also can be applied to solar water heaters and geothermal heat systems, proved to be so popular that the state ran out of money shortly after the increased grants were offered starting July 1.

Now there's a waiting list, and the state is trying to drum up money for more grants.

"This shows there's demand for these systems in Maryland, and Marylanders are really making a commitment to putting clean, renewable power on the grid," said Brandon Farris, a spokesman for the Maryland Energy Administration, the agency that distributes the grants.

Popular program

Before this year, the state offered grants of only up to $3,000 per home to help pay for solar.

But the state found that just wasn't enough to tip more people into installing solar units, unless homeowners already were committed to solar regardless of the cost.

"The reason we thought to raise the grants is because in past years, it was hard to give out all of the money and we didn't feel we were incentivizing those who wouldn't otherwise buy a system," Mr. Farris said.

During the 2008 General Assembly session, state lawmakers boosted the grants to up to $10,000 per home. Solar hot-water systems and geothermal heat are eligible for up to $3,000. A total of $590,000 was set aside for the grants.

Nearly 100 people, including the Czarnowskis, already have snapped up that $590,000 since July 1, and another 60 people are on the waiting list.

By comparison, in the previous fiscal year, 135 people were awarded grants totaling about $318,000.

"We certainly hate to turn anyone down, which is why we started the waiting list," Mr. Farris said.

The Maryland Energy Administration already is working on a "Plan B" to be able to offer more grants, even though the money has run out.

Maryland is part of the Regional Greenhouse Gas Initiative, a multi-state "cap-and-trade" program aimed at limiting carbon- dioxide emissions that contribute to global warming.

Power plants and other carbon emitters will participate in an auction to buy their carbon allowances. If they go above their allowances, they'll have to buy credit from others who stay below their allowances.

Some of the auction money can be used to promote renewable energy, though it also can be used for helping low-income people pay for electricity and for improving energy efficiency in the state. Four regional meetings are scheduled around the state this month to discuss how to spend the RGGI money.

Upsurge in interest

The idea behind the grants is to encourage more homeowners to take the solar plunge by making it more affordable.

Although solar systems eventually pay for themselves through reduced electricity bills, the up-front cost can be too expensive for middle-income families.

Richard Deutschmann, vice president of Chesapeake Solar in Jessup, said solar installations spiked because of the generous grants. But once the grant money ran out, interest waned.

"What we find is that by moving from the previous amount - the $3,000 cap - up to $10,000, that was kind of the tipping point where now the financials really made sense," said Mr. Deutschmann, whose company is part of a larger company called groSolar.

Mr. Deutschmann said he was disappointed the General Assembly put such a low cap on the total pool of money for the grants. He said Delaware and Pennsylvania are pouring millions into promoting solar power.

Tony Clifford, CEO of Standard Solar in Gaithersburg, also said he saw an uptick in business due to the grants.

"The interest level has been high for a long time, but I think the real breakthrough in Maryland was when the legislature passed the $10,000 grant and that's where we saw a huge upsurge in business," Mr. Clifford said. "Everyone is interested in solar, but a lot of people aren't able to swing it economically."

That was the case with the Czarnowskis, whose solar panels came from Standard Solar. Though they live in a waterfront home on Galesville's Lerch Creek, their home is modest and they stress that they aren't rich.

It hasn't been easy, however, keeping track of all the forms and applications.

"It's mind-boggling," Mrs. Czarnowski said, flipping through her paperwork. "I didn't want to know this much about it."

'Right thing to do'

The Czarnowskis' solar panels went up earlier this summer on the southern-facing roof on their home, where they can soak up the sun's rays and turn it into electricity. The dark panels take up one section of the roof.

The system is designed to produce 3,500 kilowatt hours of electricity over the course of a year, about half of the couple's power use.

On a sunny morning earlier this month, the meter was running forward, indicating that the Czarnowskis still were drawing power from the electric grid in addition to their home-grown solar power.

But as soon as Mrs. Czarnowski turned off the pool pump - an energy-hogging appliance - the meter immediately spun in the other direction, meaning the couple was putting electricity back on the grid. It was a satisfying sight for the homeowners.

The Czarnowskis also find satisfaction in the basement, where there's an inverter and a monitor that displays, among other things, how much carbon dioxide they've avoided producing by using solar power instead of electricity from polluting power plants.

After two months, the Czarnowskis avoided using 469 kg of carbon dioxide. At that rate, over the course of a year, they'll avoid 2.8 metric tons of carbon.

They're also avoiding sending nitrogen, mercury and other harmful substances into the air from coal-fired power plants, which generate about 53 percent of the electricity on the regional energy grid.

Put another way, the Czarnowskis could achieve the same reduction in energy use from the power grid if they turned off their refrigerator for 201 days of the year.

The Czarnowskis feel like they're doing their small, but important, part toward cleaner power generation.

"We know it's the right thing to do," Mrs. Czarnowski said.

Here's the money that has been distributed for grants to help pay for solar power and geothermal heat by the Maryland Energy Administration.

Fiscal 2005: 38 projects, $84,957.

Fiscal 2006: 23 projects, $53,259.

Fiscal 2007: 138 projects, $283,699.

Fiscal 2008: 135 projects, $317,748.

Fiscal 2009: About 95 projects, $590,000. Another 60 on waiting list. {Corrections:} {Status:}

STATE RUNS OUT OF INCENTIVE MONEY, STARTS WAITING LIST

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