Commerce Dept. Energy Office Gives Rebates to Solar Electric Pioneers

Solar electricity, like organic food, is a premium product that protects your health and the environment. It will gradually become cheaper over time but is targeted towards "early adopters" or "pioneers" who recognize that not all benefits are monetary. Even though Minnesota has a cold climate, we have more solar electricity potential than Houston, Texas and almost as much as Miami, Florida. Minnesotans can support solar and help shift our state to less polluting power sources.

Solar electricity works in Minnesota and it can work for your home or business. Similar to the Wedge's solar hot water panels which heat water using the sun, solar electric panels generate electricity from the sun. Highway emergency call boxes, flashing construction signs, and many cabins in Minnesota already use solar panels to charge batteries for electricity. However, solar electricity can also be used while you are connected to the electric company - you can buy from or sell electricity back to the company, depending on how much power you are generating with your solar system.

In 2002, the Minnesota Department of Commerce State Energy Office began a Solar Electric Rebate Program, funded by Xcel Energy, to reduce the cost of installing solar electric panels by about 20%. A state sales tax exemption on the panels reduces the cost an additional 5%. Businesses are eligible for an additional 10% federal tax credit and accelerated depreciation.

"A solar electric system will save you money on your electricity bill but the payback for your investment is long. We choose to buy organic food products because they are better for our health, our local economy, and the environment, and a solar system has similar benefits," says Mike Taylor, Rebate Program Manager (and Mississippi Market member). "Co-op members are more aware and more involved in these issues and they are the most likely to be interested in the rebate program."

The price for a one kilowatt solar electric system might start at $9,000 and the rebate would give you $2,000 back once it is installed. The solar system would produce about 1,000 kilowatt hours each year (kWh/yr) - roughly 15% of what is used by the average Minnesota home or up to 100% of a more energy-efficient residence.

Whether you decide to "go solar" or not, using electricity more efficiently with Energy Star appliances and lighting (www.energystar.gov) can reduce the amount of electricity you use without sacrificing time or comfort. A simple step is to install five compact fluorescent light bulbs in your home or business' most used lights - your $25 investment could save you $30 or more in electricity the first year and the bulbs are guaranteed for five years. If you are committed to going solar, spending $2,000 to save 1,000 kWh/yr in electricity by replacing your older appliances will save you $5,000 in solar panels used to generate the same amount.

If you are interested in a solar electric system, it can be paid for with cash or a conventional loan from the bank. The costs can also be rolled into a home mortgage payment (new or refinanced). Creating a solar co-op on a host property is another option. The Toronto Wind Cooperative (www.windshare.ca) and a local group considering a solar electric system on a coffeehouse in St. Paul are two examples.

For more information on the solar electric rebate program, other renewable energy options, and home energy conservation guides contact the Minnesota Energy Information Center at 651-296-5175, energy.info@state.mn.us, or www.commerce.state.mn.us Energy Information Center.