Aug 17 - McClatchy-Tribune Regional News - Ariel Hansen The Times-News, Twin Falls, Idaho



Among all of your household bills, cost of electricity -- even if your kids keep forgetting to turn out the lights -- may not be your biggest worry.

"Idaho has the second lowest electrical energy costs in the nation; it's cheap power," said Kevin Dugan, president of Energy Management Services in Fairfield.

But unlike natural gas, city sewer or Internet service, electricity is something you can make yourself, with an initial investment in solar electric panels. There are tax credits available from the state and federal governments, and right now there is a glut of panels on the market, so they are less expensive, thus more cost effective.

"There's always going to be an escalation to energy costs, even in our area, which is hydro country. Yes, it's coming," Dugan said. He said now is a good time to make the solar investment, although residents of the Magic Valley have been doing so in fewer numbers than elsewhere in the state. "If you've got that vision and you've got that money, it's a good thing."

 Betty and Steve Slifer installed nine photovoltaic panels at their Filer home two years ago, for a total of 1.5 kilowatts of power. This is enough to offset a third to a half of their monthly electrical bill, which they have also reduced over the past few years by increasing efficiency and being careful of how they use electricity.

"Our system is not large enough that we produce more than we can use, although we try to be vigilant about the energy we use," Betty Slifer said, noting that the panels don't need much maintenance, just a dusting after windstorms. "When the Idaho Power bill comes every month there's a graph that shows energy use... I love to look back and see how we're doing."

Recently, the Slifers have been unable to contact the Gooding company that did the installation, and they are uncertain where to turn to find photovoltaic experts now, in case their system needs tweaking.

Perhaps in response to the Magic Valley's weak demand for solar panels, homeowners often turn to specialists from Boise or the Wood River Valley to install their systems.

Aurora Power and Design Inc. has traveled from Boise to the Magic Valley to do installations, said mechanical engineer Derek Jackson. Demand in the Boise area, he said, has increased significantly in the past year or so.

Aurora typically installs residential systems from a few hundred watts to a few kilowatts. The low-power systems cost $3,000 to $5,000, while the higher-power systems run from $10,000 to $25,000, depending on how much electricity the homeowner wants to generate.

"For the cost of a car, you could put a pretty good dent in that power bill," Jackson said. Off-setting the home's entire electricity costs is usually more than most homeowners are willing to do, he said, except in cases where the home is being built far from the existing power grid.

So what's the return on that kind of investment?

First, there's the value it adds to your home.

"It has increased marketability for your property, if you choose to sell it," Dugan said. "(Homeowners) are at the mercy of the market and its pricing; solar electric hedges against that and reduces the volatility to the end user."

Jackson said that unlike some installers, Aurora doesn't subtract an estimated future added value to the home from the cost of a solar system to arrive at a "true" cost because studies have not yet been completed quantifying that additional value. However, he noted that most modern homebuyers see solar electric systems as a benefit, especially since the systems have become more aesthetically attractive.

Second, there's the long-term benefit to the bottom line.

"Typical return on investment is usually 15-20 years or so, at our current electrical rate, which by national standards is extremely low," Jackson said. "If the electricity goes up in cost, that number is going to get a lot better."

The Slifers are anticipating that their system will have paid for itself via monthly bill savings in about a decade, although they may decide to move before that time is up.

"Even if we aren't (still in the home then), it's a good selling point for the house because more and more people are interested in solar energy," Betty said. "I can't imagine it not being value-added; it's saving you money."

Although they waited for technology to improve and the cost of the system to come down, the Slifers finally made the investment because of current tax incentives.

The impact on the tax bill is seen once a year, and the impact on the electric bill once a month -- but Betty Slifer can see the bottom-line benefits of her solar electric system whenever she wants.

"I love to go out there and see the meter running backwards," she said.

Ariel Hansen may be reached at 788-3475 or ahansen@magicvalley.com.

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