To the Editor:
Good news! With more individuals recognizing the many financial and environmental benefits of producing their own clean electrical energy, we now have over 825 significant residential and commercial solar photovoltaic (PV) installations in the SMECO footprint, approximately doubling each of the last 5 years. With the current 30% federal tax credit scheduled to expire Dec 2016, it is anticipated this annual doubling in our area will continue until then. Over 400 applications are now pending. You are invited to join this growing group. Major incentives for this are the 30% federal tax credit, Maryland’s 12th highest ranking in electric rates, lease options and a desire by many to improve the environment. In addition, SMECO not only has been a supportive partner in these installations but also has directed the installation of the huge system in Hughesville. Now SMECO has an even larger system in the works. Together these many systems are now producing approximately 1% of our total needs. While the benefits are widespread and that 1% may not seem significant, one unintended benefit of these scattered systems is to reduce the grid stress during our peak hot sunny summer days, from mid morning into the early evening. Also, while not significant, local solar is one of those many factors reducing the demand for oil and coal, thus helping to drive down the general cost of energy. Otherwise, we will continue fighting wars for control of oil resources, continue contributing to the degradation of our environment and continue wasting our financial assets; not my idea of a better world.
Those investing their own money are trending toward larger systems. With reasonably well-sited systems, usually taxpaying owners can expect to reap a 15% to 20% return on investment annually, generating a positive cash flow through the guaranteed 25 year life of system. If you think about it, purchasing solar is on the scale of purchasing modest cars and pickups. Also, many leased systems are being installed. Those who lease can generally expect, at little or no cost, an initial of reduction of 10% to 15% in the cost of their electricity. With the now many reputable installers active in the area, it is not difficult to quickly get 2 or 3 free proposals.
One thing our community could do create more opportunities is to construct buildings with minimal roof obstructions. When possible, new buildings should be oriented to take advantage of southern roof exposures. While many now have systems mounted on poles and frames, most prefer the out-of-the-way roof installations.
At our home, this year we added to our 2009 system to fill our south facing roof. While we will now likely produce more than we will use in a year, we will still reap a 10% or so return on that excess investment. Like several in the area, we also purchased a plug-in hybrid getting 65 plus mpg to better utilize our electrical production. Many who know me expect me to crunch the numbers prior to spending the money. Now pushing 70, I look at our solar expenditures as an annuity that provides a much better return than standard financial annuities. When my time is up, I can meet my God and at least say I made an effort to protect this great world we have been given to use, but to use wisely.
Mike Thompson
Hollywood, MD
301 373 8545