Sunday, December 9, 2012

Renewable Energy – Maximizing Your Returns


Many utilities across the country have started tapping into renewable sources to help supply electricity to their customers.  CPS Energy in San Antonio, Texas, the utility in my hometown, has committed to renewable energy in a huge way by generating energy from both solar and wind sources.  They have almost 45 MW of solar power available and a high profile project for 400 MW that is in its early stages.  This 45 MW might not be much in supplying the overall needs of its customers daily, but that’s 45 MW that doesn't need to be generated by coal and natural gas power plants.  In addition, the CPS Energy Windtricity program is part of a partnership with wind farms in operation in west Texas, and customers using Windtricity have the added advantage of receiving LEED points for a home or business.

However, home and business owners can take matters into their own hands by setting up renewable energy sources for their own property.  Solar panels mounted on a roof or wind turbines on an open spot on the property can independently help power a home or business and reduce the load on the commercial utility grid.  To power an average sized home, the investment in renewable energy sources could be quite significant.  While the price for solar is now approaching $1 per watt of energy, that still means a 4kW system would still cost $4,000 just for the solar panels alone.  There is other equipment that needs to be purchased, permits, installation, and many other costs associated with going solar but these costs are quickly recouped within the overall lifetime of the panels.  Wind energy can be even more expensive per watt, but in windy areas, can pay off even quicker.  An advantage of purchasing your own solar panels or turbines is the incentives offered by many utility companies.  From the local utility to the federal government, there is the potential for many incentives to help offset the costs of the solar panels or wind turbines.

To make all of this more effective, home or business owners need to make their property more efficient.  There are many ways to help reduce energy use and increase efficiency to make new solar panels or wind turbines more effective.  One of the easiest ways to quickly cut energy in a home or business without major modifications is by replacing lighting with CFLs or LED fixtures.  CFLs reduce energy use by up to 75% over incandescent lighting, and LED fixtures can reduce energy use up to 90% over incandescent lighting.  In addition, the longevity of more efficient lighting means you won’t be replacing bulbs as frequently, offsetting the initial higher costs.  Updating the HVAC system is another quick way to improve home energy efficiency.  Energy Star certified products use very little energy compared to older air conditioning units, and there are incentives available when replacing an old, inefficient air conditioner.  Properly maintaining a home or business also helps improve efficiency and reduce costs.  By plugging leaks, an air conditioner or heater will be more effective and will only cool or heat where that air is needed.  Adding the proper amount of insulation also reduces how much an air conditioner or heater will work, which saves energy, money, and wear and tear on the unit.

When considering investing in a personal renewable energy source, it is more effective for home or business owners to first make sure their property is operating as efficiently as possible.  This reduces the amount of solar panels or wind turbines needed to achieve the desired results.  In the end, you will either end up buying less equipment or getting more equipment for the same price to power your home or business more effectively.