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RENEWABLE ENERGY: State OKs Solar-Power Payoff

Posted on: Thursday, 29 December 2005, 12:00 CST

By Andy Lenderman, The Santa Fe New Mexican, The Santa Fe New Mexican

Dec. 29--Solar-energy advocates are pleased with a new state program that makes solar-electric systems more affordable for the average homeowner. Public Service Company of New Mexico will begin a program in March that credits customers for the amount of energy generated by its specially installed solar-electric systems. The state Public Regulation Commission approved the program Tuesday. Homeowners with cutting-edge, solar-electric systems could save money through the program in addition to other incentives, according to one industry estimate. "It just tips the balance another step in favor of renewable energy," said Allan Sindelar, president of Positive Energy, a Santa Fe renewable-energyservices company. Sindelar estimated the new program could earn the owner of a 2-kilowatt, photovoltaic solar-power unit about $390 a year. PNM, the utility company, will pay these customers 13 cents per kilowatt hour of electricity generated by their solar-electric system. But purchasing that system is a major investment. Customers must be connected to the main electrical-power grid to qualify for the program. And they have to buy a photovoltaic electric system, which can cost from $9,000 to $20,000, according to PNM. A 1-kilowatt system would cost from $9,000 to $12,000, according to PNM. Randy Sadewic, also of Positive Energy, said a 2-kilowatt system costs about $18,000 to $19,000. "It's the cheapest clean power you can buy," Sindelar said. " ... This is just tilting the playing field a little better." Solar-power advocate Ben Luce called the new program "a historic step forward for New Mexico that will make solar power much more affordable for residents." Those who apply for the program must also install a second electric meter for their house, PNM spokesman Jeff Buell said. An application fee and hardware will cost about $200, Buell said. But there are several ways to reduce energy use, save money and take advantage of government incentives, Sadewic explained. The average home in New Mexico uses 600 kilowatt hours per month, Sadewic said. That translates to an electric bill of about $50 a month. A 2-kilowatt solar unit can produce about 250 kilowatt hours per month -- roughly 40 percent of the average New Mexican's monthly electricity use, Sadewic said. But it's possible to power a family's electricity needs at 250 kilowatt hours per month or less, he said. "You start with energy efficiency," he said. That means purchasing efficient appliances, such as refrigerators, replacing regular light bulbs with fluorescent ones and using power strips to reduce wasted electricity that flows into radios and televisions even when they're turned off. And a federal tax credit -- as much as $2,000 -- is available for people who buy residential photovoltaic systems. In addition to that program, PNM has offered its "netmetering" program since 1998, Buell said. That program gives customers a credit if they produce more solar electricity than they can use and send it into the main electrical power grid for others to use. Currently, 61 customers are enrolled in the "net-metering" program. For more information, go to www.pnm.com. Contact Andy Lenderman at 995-3827 or alenderman@ sfnewmexican.com.

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Copyright (c) 2005, The Santa Fe New Mexican

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Source: The Santa Fe New Mexican

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