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Utilities promote solar water heating
By Jill Cliburn Editor's note: Jill Cliburn has written and collaborated on many reports and guidebooks on renewable energy development for the Public Renewables Partnership, of which Western is a member. Historically, energy services program managers in Western states have tended to view solar water heating as one of those do-it-yourself projects that worked for a while and then quit. But thanks to reliable new components and systems, installer training and tax incentives, solar water heating is making a big comeback from Arizona and California, to Colorado and beyond. Electric co-ops and public power systems may play a role, too, as they recognize that solar water heating can be cost-effective for the customer and for the utility. A new information service from U.S. Department of Energy and new program planning tools from National Rural Electric Cooperative Association's (NRECA) and other sources support rising utility interest in solar water heating options. More than DSMIn most states, solar water heating is treated more as a demand-side management measure than as a solar resource. Solar water heating qualifies to help meet renewable portfolio standard (RPS) goals in Arizona, Nevada, North Carolina and Washington, D.C., but for most states and for utilities that do not have immediate RPS concerns, solar water heating has to be more than just a compliance strategy. For these utilities, the benefits of solar water heating may include:
Comparing, rating systemsIn 2009, Energy Star began to include water-heating equipment in its line of branded products. The chart below shows that solar water heating is a strong contender on the Energy Star list of efficient water-heating options. Water Heater comparison
It is an especially good alternative to the "on demand" water heaters that save kilowatt-hours but drive utility peak loads sky-high. To qualify for Energy Star branding, the solar water-heating system has to meet at least half of total household water heating needs, it must be certified by the Solar Rating and Certification Corporation (SRCC), and it must pass the Energy Star review. Certified systems can meet these requirements in places as far north as Helena, Mont., or Fargo, N.D. Demonstrating value to consumersStill, electric co-ops and public power systems face challenges in providing quality assurance and effectively marketing their solar water-heating programs, so customers who would benefit most get a chance to participate. For example, in some communities, water conservation efforts have been so effective that small households would not see a return on their investment in solar water-heating for a very long time. In other communities, there could be lots of large families or public facilities and commercial customers that need lots of hot water, but solar dealers and trained installers might be hard to find. Last year, NRECA's Cooperative Research Network (CRN) released a study on Solar Water Heating Best Practices and Economics for Electric Cooperatives by Cliburn and Associates, LLC (CRN Project 07-13), which gives practical tips for co-ops facing such challenges. It also includes a spreadsheet-based economic assessment tool. Co-ops are welcome to contact NRECA for that report. In Colorado, co-ops and public power utilities may benefit from similar tools, sponsored by the Colorado Governor's Energy Office, with outreach support from the Colorado Solar Energy Industries Association. Another resource, available to all Western customers, is the U.S. DOE Utility Solar Water Heating program, (USH2O). This program supports networking among utilities, trade allies and stakeholders who are interested in solar water heating. Sixty utilities, including co-ops and public power systems, are active in USH2O. They come from Sunbelt utilities, like Salt River Project and Silicon Valley Power, and also from northern locations, like Eugene, Ore., and Ontario, Canada. They share technical and marketing expertise and follow important policy development through the Web site and through free monthly conference calls. Growing marketAccording to Larry Sherwood, who surveyed recent solar market developments for the Interstate Renewable Energy Council (IREC), these programs, coupled with Federal and state incentives, have had a huge impact on the solar water heating market in the past few years. Solar water heating nationwide grew by 240 percent in 2006, when the Federal tax credit became available. This year, the cost-cap for the 30-percent Federal tax credit for solar water heating was removed, enlarging the total incentive for most customers, and the market is growing faster than ever. In 2008, Colorado saw more new solar water heating systems than California did, suggesting the combined strength of the Federal tax credits along with strong state-based promotion. Several Colorado co-ops and municipal utilities have matched state-sponsored rebate funding for this technology. They are testing customer interest, and some, including United Power in Brighton, Colo., are tracking whether solar water-heating might also slow rising utility peak demand. For more information on the solar water heating load-impact and economics research, contact contractor Joe Bourg.
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ResourcesTax incentives for solar water-heating systems DOE Energy Savers: Solar Hot Water |
Resources (cont.)Colorado Governor's Energy Office Colorado Solar Energy Industries Association U.S. DOE Utility Solar Water Heating program |
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