Person C

is concerned that she is not doing enough to conserve energy and would like to pursue a loan with First National Bank in the amount of $15,000. She wants to relieve some of her energy consumption from her electrical provider and start producing some of her own. What sort of system should she look at for $15,000?

Note: When you calculate the readily-available tax rebates, the value of your investment is much greater.

For comprehensive information on state, local, utility, and federal incentives that promote renewable energy and energy efficiency, please visit http://www.dsireusa.org.

Energy efficiency is the most important first step in reducing energy costs and our climate warming greenhouse gases. 

Improving the energy efficiency of a home involves reducing heat losses from the walls/ceiling and heating equipment. Tighter windows and doors, added insulation, high performance furnaces and hot water heaters are a few of the steps. Identifying and prioritizing a list of projects and technologies to implement is needed.

Add a personal wind generator (e.g.: Skystream 3.7™ Residential Power Appliance) for approximately $8,500. For a typical southeastern Minnesota home, the cost of energy is $0.09/kWh. This generator will produce 400kWh per month. With that production, a household will save $432 per year on their utility bill. At this rate, the generator system will pay for itself in approximately 12 years (with rebates, payback can be as low as 7 years). Source: Solar Hardware, 3808 Grand Ave South, Minneapolis, MN 55409, 612.824.1111.

By saving 400kWh per month, you will save 660 lbs of CO2 emissions from entering the atmosphere.

Learn more about Wind Turbine Power Ratings »

Add a personal, inflation-proof solar collector. Thin-film photovoltaic laminates can now be bonded directly onto metal roofing panels. A home equity loan is an excellent source of funds for this project because interest rates are relatively low and payment terms can be long. The payback period varies with interest rates and electricity costs. Property values are increased because these systems decrease utility operating costs.

A woman from Topeka, KS installed this system on her small barn for just under $10,000 (costs decrease with available tax rebates). Please see the online article “Easy Solar Power” at www.MotherEarthNews.com, the October/November 2006 issue.

In the best cases, the returns will be more than 10 percent, the cash flow positive and the increase in property value greater than the system cost.

If your average monthly electric bill is $100, you’ll spend $1,200 in the next year. In ten years you’ll spend $16,580 and in 30 years you’ll spend approximately $113,350.

You can pay your electric company $113,350 for the next 30 years, and see a zero return on your investment. Or you can invest money into a solar system. You can finance your system for a few years, and after you pay it off, you have between 20-30 years of free electricity. This is a huge return on your investment considering that you will be saving at least 20 years of electricity that would cost you around $49,200.

A typical home would need a 4.1 kW solar system to cover most if not all of electric needs. On average your electric bill will be between: $3.00 - $45.99
instead of the $100.00 you're paying today. That would be a 54% reduction in your electricity costs. Over one year you can save $648.00 with solar.

By installing the 4.1kW solar system, every year you will be saving our planet from: 4,809 lbs of CO2 which are used by power plants to fulfill your electricity needs. In other words, it's like planting 854 trees.

According to the National Appraisal Institute your property value will increase $20,000 for every $1,000 you save on electricity per year. In other words, your property value will increase: $12,962.40 and it will not increase your property tax because solar is property tax exempt.

For solar and small wind system installations, contact APRS World in Winona, MN or visit www.aprsworld.com

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