| Janice and David Isaacs recently had a solar | | | | responded to their request to grid-tie their solar |
| photovoltaic system designed and installed for | | | | system to the utility. Duke Energy has been |
| their home located in Georgetown, IN. The 4.29 | | | | allowing customer to net-meter their solar and |
| kW system consisting of 22 solar panels mounted | | | | wind systems. Net-metering is a policy that allows |
| on their roof-top is a sound, safe, and smart | | | | customers that have grid-tied systems to receive |
| investment for the couple. Not only is the system | | | | credit for their excess, unused electricity |
| decreasing their dependency on coal but it is also | | | | generated by renewables. Net-metering helps |
| saving them money, as evidenced by their electric | | | | customers of renewable energy systems receive |
| meter running backwards. "That's just a neat | | | | a better return on their investment. Recently, |
| feeling", commented David. A former math and | | | | Indiana rejected a comprehensive net-metering bill |
| science teacher, he had been researching | | | | that would require all municipalities and local utility |
| alternative energy years ago, but the financial | | | | co-operatives to offer net-metering in Indiana. |
| case was difficult to make at that time. The | | | | In addition, the Federal 30% credit for renewable |
| couple's main goal was to lower their "carbon | | | | energy systems goes a long way to helping |
| imprint" AND "save money". | | | | reducing the actual costs of these systems. This |
| Currently, solar energy is a sound financial | | | | credit essentially reduces the system cost by |
| investment because conventional fuel costs have | | | | 30% in the form of a federal tax credit at the |
| been increasing steadily for the past decade. The | | | | end of the tax year. For example a $30,000 solar |
| recent 12.1% rate increase imposed by E.ON's | | | | system will result in a $9,000 tax credit. The |
| LG&E is a good example of this trend. Not only | | | | savings don't stop there, Renewable Energy |
| are prices increasing, but the environmental impact | | | | Credits (RECs) also help increase rate of return on |
| of conventional coal-generated power imposes a | | | | a solar investment. One solar REC represents 1 |
| hidden cost burden on society as a whole. These | | | | mega-watt hour worth of solar electricity and is |
| hidden costs are not typically considered in | | | | valuable to solar home owners for the following |
| financial comparisons between renewables and | | | | reason: large-scale electric suppliers are required to |
| conventional power sources. Measures such as | | | | supply a certain percentage of their electricity |
| net-metering, the current 30% Federal Tax | | | | from solar. They can do so by building large-scale |
| Credit, and RECS make the investment more | | | | solar facilities or by purchasing solar RECS from |
| attractive, and renewable energy lacks all of the | | | | customers who generate solar power. This |
| social costs associated with conventional fuels. | | | | creates an entirely separate and ongoing revenue |
| A long-term investment in solar energy is sure to | | | | stream for the residential renewable energy |
| pay off sooner rather than later with the | | | | system owner. The customer has the option of |
| anticipated rise in energy costs. Just across the | | | | taking an up-front lump sum payment to help |
| river in the neighboring state of Kentucky, | | | | reduce the upfront cost of the system or |
| Louisville residents are wrestling with the LG&E | | | | quarterly payments for the term of the contract |
| rate hike. The Isaacs and other customers like | | | | with the REC aggregator company. In either case, |
| them have decided not to tackle future rate hikes | | | | the impact is significant. |
| and the uncertainty of energy costs. Instead, | | | | Finally, most people don't stop to think about the |
| they have decided to essentially lock in their next | | | | social costs they are paying for conventional fuels |
| 30 years of energy bills by installing a photovoltaic | | | | which include toxic emissions, pollution of |
| system now. They will see a return on their | | | | waterways, and military costs required to protect |
| investment that will be on par with a fixed income | | | | our fuel interests around the world. Renewables |
| retirement fund. With time, just as with stocks | | | | inherently don't have this burden. |
| but with considerably less risk involved, their initial | | | | The investment in solar made by the Isaacs, and |
| investment will provide a Return On their initial | | | | many other folks with long-term outlooks will be |
| Investment. | | | | financially, socially and morally rewarding for years |
| The Isaacs were pleasantly surprised by how | | | | to come. |
| quickly their Indiana utility, Duke Energy, | | | | |