The more than 100 residents who filled Volunteers Hall last week for the third Solarize Harvard information session got what they came for—the cost to install a solar photovoltaic (PV) system under the Massachusetts Clean Energy Center’s (MassCEC) Solarize Massachusetts pilot program.
New England Breeze, the sole contractor for the program in Harvard, presented its winning four-tiered pricing proposal to provide a full-service solar PV installation. The net cost of a basic 5 kilowatt, roof-mounted system with one DC to AC inverter will range from $15,625 after federal and state incentives and tax credits to as low as $10,375, depending on the number of participants and the size of their systems. The projects are expected to pay for themselves within five to six years through savings on electricity bills and income from solar renewable energy certificates (SRECs). In the tier four model of 60 or more installations, the payback period could be less than four years. The costs are estimates and will vary depending on site conditions and system size.
Hudson-based New England Breeze was one of 11 companies competing for Harvard’s business in MassCEC’s selection process. The company claims more than 80 solar and 25 solar thermal installations in Eastern Massachusetts since its inception in 2006. New England Breeze co-owners Mark Durrenberger, Bill Carr, and Jonathan Williams, along with other employees, attended the presentation and answered questions following an overview by Project Manager Kristen Ferguson.
According to Ferguson, the company’s primary motivation is to help reduce the environmental impact of energy use. Both she and MassCEC Renewable Energy Program Director Andy Brydges emphasized the importance of improving energy efficiency through conservation before installing renewable energy systems. In keeping with this message, anyone interested in the Solarize Harvard program is required to schedule a home energy assessment to help them understand their energy use and get suggestions for reducing it, although there is no obligation to follow up on the suggestions.
A basic solar installation
As Ferguson described it, a basic solar installation suitable for an average 2,400 square foot house comprises 5 kW capacity of solar panels mounted on a roof with a single, accessible inverter to convert the photovoltaic DC current to AC for distribution. New England Breeze plans to use German-manufactured Schüco solar panels, which have a 25-year guarantee, and inverters from Lawrence-based Solectria Renewables. Roof-mounted panels will rest on brackets produced by U.S.-based Unirac. A short video at the New England Breeze website, www.newenglandbreeze.com, explains elements of a solar installation and feature comments by Old Mill Road resident Tim Arnold.
An ideal site for rooftop solar PV is a house oriented due south without trees or buildings obstructing the exposure. But this is not the norm in Harvard. For property owners with shaded roofs but some open yard, ground-mounted systems are available at an additional cost. Solar thermal (solar hot water assisted heating), which requires less direct sunlight, is another solar renewable energy option for sub-optimal sites.
Property owners with insufficient sun exposure may be interested in the “community solar garden” idea that a few Solarize Harvard volunteers are investigating, and New England Breeze is discussing with MassCEC for incorporation in the pilot. Individual homeowners and small business owners could pool their resources to build a large, shared system on an open piece of land. Investors would share the cost of the system and get the individual benefits of electricity credit and SRECs through virtual net metering.
Ferguson outlined the necessary steps to a solarized home. First, it is important to understand your home energy, she said. Current and past electricity and heating bills should give this information. A home energy assessment will evaluate how energy efficient your house is and where additional energy savings might be found. Next, a solar site evaluation by New England Breeze will reveal the available solar capacity and specific site requirements. The company will then propose a system design with costs and financing options. From signing a contract to watching the electric meter run backwards can take three to four months if the weather cooperates.
Old Littleton Road resident Lynda Moulton was one of the first residents to schedule site evaluation. For Moulton, who has been a solar energy advocate since the ’70s, “this particular package looks extremely attractive.” Like many in Harvard, she is waiting to see the cost and feasibility of a ground-mounted system if their stress-skin roof precludes panels.
Similarly, the Jarratts on Under Pin Hill Road are sold on the opportunity that fits their longstanding environmental commitments, but they have several questions to resolve first: Will the trusses of their flat roof provide enough support? Would ground mounts suffice or would the community solar garden model be more economical? Should they purchase with a home equity loan or should they lease?
Residents have until Sept. 30 to sign contracts that take advantage of the Solarize Harvard pricing and solar panel availability.
Finances
Assuming an average price for a solar system at $6 per W, New England Breeze’s first tier price of $5.50 per W represents an 8 percent savings. As the number of households and small businesses in the program increases, the price per watt decreases to as little as $4 per watt, a 33 percent saving.
State and federal incentives substantially reduce the initial cost. A Commonwealth Solar II grant $.75/ W rebate, a state $1,000 tax credit, and a federal tax credit equal to 30 percent of the project cost can reduce an uncomplicated 5 kW project price tag from $27,500 to $15,635. The costs go down as installed kW capacity goes up. Over 100 kW, or about 20 installations, the project cost with incentives drops to $13,525. Then to $11,775 over 200 kW, and to a low of $10,025 at 300 kW or about 60 homes. For comparison, the solar field at Carlsons Orchards is a 220 kW system.
Costs can be further reduced with additional credits for moderate income—less than $95,000 for a two-person household—or moderate housing, a home valued less than $350,000.
The feasibility and cost of the shared community solar garden option are yet to be worked out.
New England Breeze will offer a loan-to-own financing option with fixed monthly payments and reduced electricity rates. For the duration of the loan, New England Breeze would get the initial project tax credits and the SREC returns. There is no penalty for early repayment.
The MassCEC program achieves some cost reductions by reducing soft costs—customer marketing and education, streamlining permitting, and taking advantage of group purchasing, but ultimately the price per W will depend on the total number of households or small businesses that contract by the September deadline.
“Harvard is miles ahead in technical know-how and outreach to the community,” said Brydges, encouraging residents to spread the word about the program to friends and neighbors.
