If you live in Massachusetts, then you should read this article! If you’re haven’t yet heard about the SRECs (Solar Renewable Energy Credits), or you have and you didn’t fully understand them, than you’re missing a great investment opportunity. The following information (originally posted here), is a great introduction to how installing solar on your home or business can help you make money while being environmentally responsible.

What is an SREC?

In SREC states, the Renewable Portfolio Standard (RPS) requires electricity suppliers to secure a portion of their electricity from solar generators. The SREC program provides a means for Solar Renewable Energy Certificates (SRECs) to be created for every megawatt-hour of solar electricity created.

1 SREC = 1,000 kWh of solar electricity = 1 MWh of solar electricity
10 kW solar capacity = ~12 SRECs per year

The SREC is sold separately from the electricity and represents the “solar” aspect of the electricity that was produced. The value of an SREC is determined by the market subject to supply and demand constraints. SRECs can be sold to electricity suppliers needing to meet their solar RPS requirement. The market is typically capped by a fine or solar alternative compliance payment (SACP) paid by any electricity suppliers for every SREC they fall short of the requirement. The sale of SRECs is intended to promote the growth of distributed solar by shortening the time it takes to earn a return on the investment.

Once the installation of a solar system is complete, the system must then be certified by the state(s) in which it is eligible to sell SRECs and then must create an account with the tracking platform used by that state. Once registered, every month, the tracking platform will issue SRECs based on the generation of your system. In some states, estimated generation is used for systems under 10kW, while all other systems are required to submit generation on a monthly basis. One SREC is created for every 1000kWh of electricity created. For example, a 10kW system can generate approximately 1 SREC per month. However, it is up to the solar installation owner to decide how to manage the SRECs that are produced.

Some states will certify solar electric systems from out-of-state and allow the SRECs from those facilities to count towards the RPS. The map above shows what state individuals can sell their SRECs into.

How SRECs are priced

There is no assigned value to an SREC.  Prices are influenced by supply and demand. The supply is determined by the number of solar installations producing SRECs and trading them. The demand is determined by individual state RPS solar requirements and the Solar Alternative Compliance Penalty (SACP) set by the state.  The RPS solar requirement represents the number of SRECs that the electric suppliers are required to collect each year. The SACP represents a theoretical maximum value of an SREC, since it is the amount paid per SREC by the electric suppliers if they do not collect enough SRECs.  In states, such as New Jersey, where the SACP in 2010 is $693, SRECs are worth more than a state with an SACP of $250. You can click here to view a complete Auction History.

Solar Energy Cost

Would you like to own your electricity? Want to stop worrying about rate inflation from your utility company, charging you whatever they like? Did you know that rates have been rising by about 6% each year in California for example? They will only keep going up and up unless you do something about it!

By installing a solar electric system you can SAVE MONEY, break free from the clutches of your utility company and HELP the Environment too.

Only 20 Years ago, solar energy cost 7 times as much. Advanced technologies have contributed to the enormous decrease in price, but it is mainly due to the increase in manufacturing volumes, as more and more people realise the benefits of solar energy.

There’s more good news. Solar energy cost will continue to decline as the market continues to grow, making it even more affordable.

Governments too have realised the benefits. Incentives are available form state, federal and local governments, as well as some utility companies.       Check out the DSIRE websiteto find out what’s available in your area (USA only).

Another cost benefit is that you will get paid for the excess electricity you produce through a system called – Net-metering.

$ – Just how much does solar energy cost? – $

It varies. Depending on the size of your household, the amount of electricity you use, the particular solar energy system you choose, how much sunshine you receive in your area and available government funding to name only a few.

As a very rough guide, depending on the above conditions – - -

• A solar hot water system will cost between US $2,000 and $4,000.

• A photovoltaic system will cost between US $8,000 and $10,000 for a 1kW system. (or $8 – $10 /Watt)

An average American family, living in a 3-bedroom home will require a 1.5 – 3kW system, which will cost between US $13,000 and US $27,000, before rebates.

Lets take a couple of example of a Californian household to illustrate just how much you can save with all these incentives:

An average family needing 2.5 Kilowatt system –
(current electricity bill between $50 and $75 per month)

Cost of Solar electric system incl. Installation: $22,500

LESS: Government Rebate: – $7,000 *

LESS: Tax credit: -$1,163 **
___________________________________

You pay only: $14,337
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An average family needing 3 Kilowatt system –
(current electricity bill between $75 and $100 per month)

Cost of Solar electric system incl. Installation: $27,000

LESS: Government Rebate: – $8,400 *

LESS: Tax credit: -$1,395 **
___________________________________

You pay only: $17,205
___________________________________

Save even more with Net Metering each year.

* (2.5 Kw system = 2500 watt x $2.80 per watt rebate = $7,000)
(3Kw system = 3000 watt x $2.80 per watt rebate = $8,400)

** (7.5% of system cost after rebate. $22,500 – $7,000 x 7.5% = $1,163)
(7.5% of system cost after rebate. $27,000 – $8,400 x 7.5% = $1,395)

As a rough guide: Add .5 to your system size for each additional $25 on your bill and $4,500 to the cost before incentives.

PLEASE NOTE that these prices are only estimates and will vary depending on many different factors that needs to be taken into account for each specific installation.

See this article in its original location here

Check us out on the web at www.allenergysolar.com

Sweet looking design, snazzy solar panels, and nearly net zero in energy consumption and cost. What a great idea to make an up front investment in something you know is going to help the environment and your wallet/pocketbook in the long run. Check out the article below on this unique, but hopefully becoming more common, net zero house.

A Minnesota couple has almost, but not quite, built the net-zero energy house 25 miles from the Canadian border. A story by David Shaffer in the tomorrow’s Star Tribune business section points to the article the couple published in the September/October issue of Solar Today.

Architect Nancy Schultz and husband Dr. John Eckfeldt , a professor at the University of Minnesota Medical School, built their lakefront home near Isabella, Minn., 80 miles northeast of Duluth.. It’s is tightly insulated with R-values of 55 and 90 in the walls and roof.

It has passive solar heating using south-facing glass, plus a rooftop solar heat collector that recirculates liquid through an experimental heat-storage “crib” beneath the house filled with sand, gravel and taconite ore pellets. The house also has a heat-recovery system for outgoing air and a ground-loop system to preheat incoming air.

Other rooftop solar panels generate electricity. A small electric boiler is a backup heat source. Overall the house is “near net-zero,” meaning is uses almost all renewable energy and has almost no carbon footprint.

“We have been going up there for 30 years,” said Schultz. “We decided to build it as an experiment station.”

But Minnesota winters were still too much. In the article, the couple said the heat-storage system wasn’t able to keep the house at 70 degrees F when the outside temperature was minus 40 degrees, but they are working on improvements.

But it’s not cheap. The house cost $342 per square foot, compared to $200 per square foot and up for a conventional house, Schultz said.

See the article in its original location here.

Check us out at www.allenergysolar.com

Oil prices are rising as we can see by how much it is now costing to fill our gas tanks and heat our homes. The Northeast of the United States is making efforts to reduce this stress by implementing more renewable energy for average home and business owners. Here is an article we found where a coalition is determined to advance the use of biomass for heat and power.

By Northeast Biomass Thermal Working Group (NEBTWG) | February 28, 2011

Manchester, NH – February 28 , 2011 According to estimates from the Energy Information Administration, prices for U.S. home heating oil rose 24 percent in February 2011, compared to February 2010. With prices expected to continue to rise, members of the Northeast Biomass Thermal Working Group (NEBTWG) are urging homeowners, business owners and policy makers to take action making the utilization of renewable heating options, like biomass, a reality for more residents of the Northeastern United States. According to the group, steadily rising fossil fuel costs are, once again, causing the region to refocus efforts in support of renewable alternatives.

“Biomass, such as pellet fuel and wood chips, provides an alternative to exporting 75 cents out of every Northeastern dollar spent, which is what occurs with heating oil from foreign sources.” – Charlie Niebling

“The Northeastern U.S. is witnessing a rise in home heating fuel oil and propane costs – a dependency that drains our regional economy of billions each year,” said Charlie Niebling, co-chair of the NEBTWG Steering Committee and general manager of New England Wood Pellet. “Biomass, such as pellet fuel and wood chips, provides an alternative to exporting 75 cents out of every Northeastern dollar spent, which is what occurs with heating oil from foreign sources. Heating homes and businesses with biomass not only saves money on heating bills, but helps communities to retain more of their wealth due to local sourcing, delivery and use of sustainably produced fuel.”

The New York Biomass Alliance has estimated that, on a per million BTU basis, heating costs in January 2011 varied dramatically by fuel type. For instance, #2 heating oil, commonly used for residential heat, was $24.90 per mmBTU. Bagged wood pellets were $14.70 per mmBTU. This means that heating a home with #2 fuel oil was approximately 69 percent more expensive than heating the same home with wood pellets. Another biomass fuel source, delivered cordwood, was even less expensive at $8-10 per mmBTU. Prices are trending up for February and beyond, further growing the cost divide between fossil home heating fuels and biomass.

NEBTWG’s recent policy publication, Heating the Northeast with Renewable Biomass: a Bold Vision for 2025, details the path towards a 25 percent replacement of the Northeast’s fossil fuel with renewable energy sources by 2025. Major findings from the Vision publication include the potential creation and retention of 140,000 Northeastern jobs and the reinvestment of $4.5 billion into the region.

At its third annual conference in Manchester, NH, April 14 and 15, 2011, NEBTWG will be discussing policy solutions related to residential and commercial heating with biomass. The conference, titled Heating the Northeast with Renewable Biomass, will reiterate the Vision’s principles and call for a renewed commitment to the advancement of the thermal conversion of biomass for heat in the region. Details and registration information is available at www.heatne.com.

As political rivalries and battles over control play out on capitol hill we in the Renewable Energy (RE) industry stand poised for action, hoping that our government will stand behind us in our industry goals. Tremendous support of the RE industry has helped propel this revolutionary technology. Homes, businesses, governments, and non-profits can now invest in reliable energy and feel confident the effects on our environment are positive. So what does the shift in control mean for the coming years?

Most of the focus is being placed on the coming weeks. The senate passed the tax breaks which included an extension of the RE tax grant. We fully expect the bill to pass and the extension will mean another prosperous year for RE. But there is another big question and concern hanging over all our heads… JOBS!

One industry cannot be the sole source of job creation but as a growing industry, one with a lot of expected job creation, we are proud to say that in 2010 the solar industry added 50,000 new jobs, according to the national solar jobs census. To date there are over 90,000 jobs in solar energy alone. The 5 sectors of renewable energy technologies – solar, geothermal, wind, bioenergy, and hydro – are growing and unequivocally adding jobs. yet there remains a perception that clean energy is not adding enough jobs to our economy.

It is difficult to see the added benefits that clean energy adds to our economy when there are over 30 million people unemployed in our nation. That number alone is staggering, which is why 50,000 new jobs in one year can go unnoticed when it’s up against a number as large as 30 million. It seems that the unemployment problem is just too big for clean energy to solve alone. Which brings up the next issue – Manufacturing.

Manufacturing jobs in the US have slipped to levels not seen since before 1945. Between 2000 and 2009, manufacturers shed upwards of 7 million jobs. Add to that the staggering unemployment rates and it’s no wonder the population is looking to the RE sector for manufacturing jobs. Carrie Cullen Hitt, executive director of The Solar Alliance, an organization that works with companies and legislators to create solar policy, said “The pressure on solar to create manufactuiring jobs is misplaced. Manufacturing is fine, but there are so many other jobs in other aspects of the industry that its a misrepresentation that you’re going to get the most amount of jobs out of encouraging manufacturing. There are development jobs, installation, financing and the whole value chain. If you have good policy, all these aspects of development will create jobs in the state.”

The RE industry is working very hard to show that we are a real and established economic engine. We are creating jobs and we are improving our environment at the same time. Yet we still seem to have opposition and doubt. One theory is that the fossil fuel lobby is spending large amounts of money to discredit the RE industry and convince the American public that green jobs are a farce. We don’t believe that the American public is that ignorant. Let the fossil fuel lobbyists spend their millions of dollars, we’ll continue to invest in what is real and tangible; a job and a pay check. The RE industry doesn’t have the money to spend millions on lobbyist and special interests agendas, we only have the money to keep this nation moving forward. With the help of regular Americans like yourself and with support from our representaitves on capitol hill we can continue to propel the RE industry into the future.

We at All Energy Solar, Inc hope you enjoyed our op-ed piece. We feel very strongly that we are creating a future fit for our children and that our efforts will have great implications for not only our environment but our economy as well. We referenced several articles in this piece and implore you to read on. View the articles listed below…

We are open to your opinions and suggestions. Feel free to contact us at info@allenergysolar.com or call us any time at 800-620-3370.

Highlights at 11

Green Jobs are Real

Will Clean Energy Manufacturing Create U.S. Jobs?

When was the last time you looked at your electric bill and said to yourself, “hmm, i’m happy paying all this money to the utility company,” or went through your house and instead of turning everything off, you start flipping on the switch to everything? Lets be realistic… if you are a homeowner your goal is to reduce the cost of your electric bill, and homeowners looking to save money on electricity by greening their home face 3 big obstacles.