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Government incentives heat up solar power Submitted by Medill News Service on Tue, 08/21/2007 - 12:41pm.

By Elisabeth Kwak-Hefferan
Medill Reports-Chicago

Solar power sounds like the perfect solution for eco-friendly homeowners: Just install a few rooftop panels and watch as carbon dioxide emissions and electric bills plummet.

It's not quite that easy. Renewable solar energy does come with a steep up-front investment, but environmentalists with thin wallets are in luck. State and federal incentives help people justify the splurge on solar-perks experts say are vital for this burgeoning clean energy source.

"[Incentives] are extremely important, if not pivotal," said Ted Lowe, secretary of the Illinois Solar Energy Association. Lowe's Wheaton home sports a solar electric system of its own that the engineer and computer scientist installed himself.

"There are some people who would do it regardless, but those are probably the really dedicated people who want to do the right thing and protect the environment," Lowe said. "You add the incentives in and it makes it affordable for people who might be on the edge."

Illinois gives individuals who install home solar panels a rebate of 30 percent of their system's cost, up to $10,000. On top of that, homeowners get a one-time federal tax credit of 30 percent of the panels' cost, capped at $2,000-and the deal may get sweeter. If the energy bill passed by the U.S. House on Saturday becomes law, that $2,000 cap is history.

Solar energy fans have two choices: photovoltaic (PV) panels or solar thermal panels. PV panels convert the sun's energy directly into electricity for the home. Solar thermal panels collect that energy that heats water for direct use or to provide home heating.

Dan Lucas, an elementary school principal who put a PV system on his Chicago roof about six years ago, said he probably wouldn't have done it without the state rebate. "It would have been a stretch," said Lucas, 47.

After the rebate, Lucas paid about $3,500 for his one-kilowatt system. The system can power the equivalent of 10 100-watt light bulbs at one time.

Scott Ernsteen, a Deerfield banker, also credits state support for his decision to install solar thermal panels at home. "When I originally started pricing it out, I wasn't aware there was a rebate," he said. "That made it a much, much easier decision."

Ernsteen, 41, paid about $7,500 for the eight panels that heat his family's 160-gallon water tank. He estimates the system will take five or six years to pay for itself in energy savings for hot water and home heating. Payback for a PV system may take longer-but it all depends on the size of the panels, amount of electricity used and the cost of conventional power.

Even with a helping hand from the government, solar power is pricey. But proponents say it's all worthwhile.

Lowe pointed to three major benefits of home solar power: reduced dependence on foreign oil, savings on energy costs and lowered greenhouse gas emissions. "Eventually, renewable energy will be the no-brainer," he said.

Government incentives may help hasten that day. "I think they should totally be promoting it as much as they can," said Ernsteen. "We need as much energy independence as we can, and all the global warming stuff-we need to be leaders in that."

For ideas about how to go solar, click here.

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