The cost of a PV solar system will vary depending on the size of your home and energy usage. According to the National Association of Realtor’s 2009 Profile of Buyers and Sellers, “The median size of homes purchased was 1,800 square feet. This is down slightly from 1,825 in the previous year’s survey.” For purposes of this article, we will say an average home is 1,800 square feet.

Incentives
SRP will help defray your cost with an incentive of $2.70 per watt, up to $13,500 (through April 30, 2010), while APS has a better rebate of $3 per watt.
The federal incentive is 30% of the cost, with no limit for your federal tax returns. The Arizona State tax refund is $1,000 for your personal tax return.

Costs
An average 1,800 sq. ft. home, would need a 9 kilowatt system. It would cost approximately $56,000. APS would provide a rebate for $27,000; you would receive $8,700 in Federal tax and a flat $1,000 for Arizona tax returns. So, out of pocket expenses would total $19,300.

Return on Investment
The return on investment varies. I have read everywhere from 12 years to 20 years, depending on the source. Either way, investing in PV solar is a long term investment. It saves money each year and is a source of clean energy, but takes a long time to pay for itself.

According to GreenandSave’s Master ROI chart and a 5 kw system, the base cost is $35,000, minus a $10,500 federal rebate and a potential grant for $20,000 from the Sustainable Development Fund, and the price can come down even further with Renewable Energy Credits (RECs).  “Over the 25-30-year life of the system, based on current electrical rates and conservative 6 percent annual inflation, you may save $60,000. This ROI does not factor in the benefit of an increased property value which is projected at 20% of the gross cost of the solar system or $7,000.”

Added value of a home with PV solar is still being debated by appraisers, lenders, and realtors. I’d say  we all would agree PV solar is an added value to a home, but when it comes to just how much the value is increased, the jury is still out.

–
Melisa Camp, M.Ed.
Realtor ®, GREEN
Arizona’s LEED for Homes Advocate
Young Professionals Network Chair, Phoenix Assoc. of Realtors

www.greenphoenixproperty.com
www.greenqueen.featuredblog.com

What is PV solar?

Photovoltaic or PV solar panels are the roof-mounted units that convert solar radiation into electricity. It is considered clean energy because it is using renewable energy source (the sun) and solar is not emitting green house gasses.

The systems are measured by the amount of electricity they are able to produce. The measurement used is called kilowatt hours. Residential rooftop PV solar systems can generate anywhere from 2,000 to 20,000 kilowatt hours of electricity.

Sean Monaghan, of PEP Solar points out that, “The rule is this: residential systems must be at least 2,000 watts installed and to achieve the utility credits, it must satisfy at least 50% of the energy for your home.” So, the size of the system you need depends on the size of your home and energy needs of your family- if you want the utility credits. (You definitely do want to use the credits too. More on incentives and rebates next week.)

According to the New York Times, “Despite rapid growth in recent years, solar power accounts for less than 1 percent of United States electricity use. Solar power is more entrenched in European countries such as Spain and Germany, which have promoted its development with strong incentives called feed-in tariffs,which require electric utilities to buy solar power at a high, fixed price. In the United States, California is by far the leading solar state.”

Let’s change that and make Arizona the leading state. For more information on getting solar for your home contact my solar expert, Sean Monaghan at PEP solar sm@pepsolar.com and tell him the Green Queen sent you!

–
Melisa Camp, M.Ed.
Realtor ®, GREEN
Arizona’s LEED for Homes Advocate
Young Professionals Network Chair, Phoenix Assoc. of Realtors

www.greenphoenixproperty.com
www.greenqueen.featuredblog.com

All natural, green, eco-friendly, and made sustainably are all buzz words you may have read on packaging or in advertising. The list of green buzz words goes on. How do you know if the product or service is truly green? These companies may be greenwashing, or falsely promoting or exaggerating the greenness of a product or service. You, the consumer, need to know how to spot greenwashing in a time when it is good to be green and green is the color of money driving the greenwashing.

• Watch out for vague claims. I am aware of a local builder claiming to build “green homes”, when in actuality there are only a couple of green features in the entire home.

• Read through the buzz words on labeling. When I grocery shop I look for hormone-free, antibiotic free, grass-fed, and organic, not 100% natural, pure, real, healthy, etc. The last group of words are subject to interpretation and are more opinion based than fact. What natural, pure, or healthy means to you may be different than those in the corporate marketing department.

• Look for trusted certifications like Green Seal, FSC, LEED, EnergyStar, USDA Organic

• Seek facts that are verifiable. A product may claim to be energy efficient, but in comparison to what? Look for something precise and  measurable for comparison.

• Use Google. Enter the product or company plus the word environment to see what comes up.

Be an active consumer and know you will have to do some critical thinking to evaluate claims of advertising. Don’t believe everything you hear and know some companies will exaggerate  green features and environmental benefits to make consumers feel good.

See the article, Why is Greenwashing A Problem? for more information and also my attachment on avoiding greenwashing for homes.

Comment about greenwashing on my blog http://greenqueen.featuredblog.com. Also, email me if you are interested in working on a project to stop greenwashing in AZ.

–
Melisa Camp, M.Ed.
Realtor ®, GREEN
Arizona’s LEED for Homes Advocate
Young Professionals Network Chair, Phoenix Assoc. of Realtors

www.greenphoenixproperty.com
www.greenqueen.featuredblog.com