Solar Offers Energy Independence
Over time, solar energy costs are much lower than the cost of purchasing electricity from the utility. Solar energy costs less because a solar electric system is your own localized power plant, freeing you from the utility company’s dependence on the fossil fuel marketplace.
Solar Energy Costs vs. Utility Company Costs. The majority of consumers can’t go shopping for their electricity because in most areas, the electric company is a licensed monopoly. You do not choose who is going to bring electricity to your door or what it will cost. And more often than not, electric rates go up. In Iowa, the average price of gas and electricity increased 2-4% percent in the past year. This followed a three year period when the average retail price of electricity across the country increased 17 percent. Electricity prices rise and fall, and there is no way to tell what the utility company will charge tomorrow. However, there is a way to take control of your own power supply by capturing the free energy emitted by the sun.
Solar Energy Costs vs. Fossil Fuel Costs:
The 17% increase in electricity rates reflected increased fossil fuel costs: during that period average fossil fuel prices for electricity generation increased a cumulative 30.2%. This makes sense: most utility power plants burn coal, natural gas, or oil to spin the turbines that make electricity. While the majority of electricity on the U.S. comes from burning coal, during peak demand – usually the hottest days in summer – the utility system has to use all available resources to keep up.
Beyond its natural knack for producing corn-based ethanol (the energy efficiency of which is, admittedly, disputed), the state of Iowa is making noteworthy progress on the renewable energy front. In mid-2007, Iowa Governor Chet Culver established the Office of Energy Independence (OEI), which is to be well endowed: the new office will receive $100 million over a four-year period. Most of these funds are earmarked for R&D for alternative energy technologies, leaving little for direct rebates for solar power. The state hopes to become a net-exporter of energy in the future. net-metering rules (PDF) go back to 1984, when the Iowa Utility Board required that the state’s two investor-owned utilities—Alliant Energy-Interstate Power and Light (IPL) and Mid-America Energy—to provide a net-metering option to all customers with electricity generation systems smaller than 500 kW. In practice, excess power generation is credited to the customer’s future billings.
The Alternate Energy Revolving Loan Program (AERLP) provides zero-percent interest loans to qualifying renewable energy technologies, including solar and wind (plus biomass and micro-hydroelectric projects). Loan terms are, as just noted, zero percent interest, and can cover 50% of total loan funds, up to $1,000,000. Funds provided by third-party lenders at the market rate make up the other 50 percent.
Renewable Energy Production Tax Credit program provides 1.5 cents per kWh of electricity generated from PV, wind, biomass, hydrogen and a number of other technologies. Wind systems may be up to 450 megawatts in size, but all other renewable energy systems are capped at 20 megawatts.
A few utility level programs could be very helpful as well. The Farmer's Electric Cooperative offers an incentive for PV systems of up to $5000. Independence Light and Power, Maquoketa Municipal Electric, and Preston Municipal Electric all offer rebates of $2-$3/projected annual kWh for PV systems and $30/sq. foot of collector area for solar thermal systems.
Property Tax Exemption for Renewable Energy Systems and a Wind and Solar Energy Equipment Sales Tax Exemption.
Grants for Energy Efficiency and Renewable Energy Research. Grant funds are awarded on a competitive basis.
Iowa: Residential Solar Incentives
Solar Energy Costs vs. Utility Company Costs. The majority of consumers can’t go shopping for their electricity because in most areas, the electric company is a licensed monopoly. You do not choose who is going to bring electricity to your door or what it will cost. And more often than not, electric rates go up. In Iowa, the average price of gas and electricity increased 2-4% percent in the past year. This followed a three year period when the average retail price of electricity across the country increased 17 percent. Electricity prices rise and fall, and there is no way to tell what the utility company will charge tomorrow. However, there is a way to take control of your own power supply by capturing the free energy emitted by the sun.
Solar Energy Costs vs. Fossil Fuel Costs:
The 17% increase in electricity rates reflected increased fossil fuel costs: during that period average fossil fuel prices for electricity generation increased a cumulative 30.2%. This makes sense: most utility power plants burn coal, natural gas, or oil to spin the turbines that make electricity. While the majority of electricity on the U.S. comes from burning coal, during peak demand – usually the hottest days in summer – the utility system has to use all available resources to keep up.
Beyond its natural knack for producing corn-based ethanol (the energy efficiency of which is, admittedly, disputed), the state of Iowa is making noteworthy progress on the renewable energy front. In mid-2007, Iowa Governor Chet Culver established the Office of Energy Independence (OEI), which is to be well endowed: the new office will receive $100 million over a four-year period. Most of these funds are earmarked for R&D for alternative energy technologies, leaving little for direct rebates for solar power. The state hopes to become a net-exporter of energy in the future. net-metering rules (PDF) go back to 1984, when the Iowa Utility Board required that the state’s two investor-owned utilities—Alliant Energy-Interstate Power and Light (IPL) and Mid-America Energy—to provide a net-metering option to all customers with electricity generation systems smaller than 500 kW. In practice, excess power generation is credited to the customer’s future billings.
The Alternate Energy Revolving Loan Program (AERLP) provides zero-percent interest loans to qualifying renewable energy technologies, including solar and wind (plus biomass and micro-hydroelectric projects). Loan terms are, as just noted, zero percent interest, and can cover 50% of total loan funds, up to $1,000,000. Funds provided by third-party lenders at the market rate make up the other 50 percent.
Renewable Energy Production Tax Credit program provides 1.5 cents per kWh of electricity generated from PV, wind, biomass, hydrogen and a number of other technologies. Wind systems may be up to 450 megawatts in size, but all other renewable energy systems are capped at 20 megawatts.
A few utility level programs could be very helpful as well. The Farmer's Electric Cooperative offers an incentive for PV systems of up to $5000. Independence Light and Power, Maquoketa Municipal Electric, and Preston Municipal Electric all offer rebates of $2-$3/projected annual kWh for PV systems and $30/sq. foot of collector area for solar thermal systems.
Property Tax Exemption for Renewable Energy Systems and a Wind and Solar Energy Equipment Sales Tax Exemption.
Grants for Energy Efficiency and Renewable Energy Research. Grant funds are awarded on a competitive basis.
Iowa: Residential Solar Incentives