F. John Hay of the University of Nebraska–Lincoln spoke to Seward-area farmers, ranchers and others interested in solar energy Feb. 17 in the Jones National Bank and Trust Co. lower level auditorium.
Hay works as an Extension educator in bioengineering and has spent the past 10 years educating people about wind and solar energy on large and small scales.
“I read books. I go to conferences. I install turbines. I break turbines. I do all these fun things,” Hay said.
Hay installed a solar photovoltaic system at his home over the winter and spoke to attendees about the installation process and weighing the benefits of a solar energy system.
“Payback’s not one year or two years. It’s higher than that. That’s the reality,” he said, “but the economics are looking better. The prices are coming down.”
A system similar to the one he installed to power his home would have cost around $40,300 in 2007 if he did all the work himself.
In 2015, he could have paid someone else to install the same system for around $10,000.
Hay said the cost of electricity increases 2 to 3 percent per year.
“We use electricity for everything,” he said. “Those numbers are going to keep going up.”
In Nebraska, about 31 percent of power comes from coal, with nuclear power and natural gas contributing the majority of the remaining percentage.
“Renewables are still a small piece, but they are becoming a very important piece,” Hay said.
Last Tuesday, the U.S.’s Southwest Power Pool, which includes part of Nebraska, registered 52 percent wind generation, Hay said.
Is solar right for you?
Hay said goals are an important part of deciding whether solar energy is right for a home, farm, ranch or small business. Some reasons to consider include
• the desire to be part of a renewable energy solution (“being green”);
• the desire to be independent and produce one’s own energy;
• the need for electricity in a remote area, such as a cabin far from the power grid;
• to market a business or product; and
• to make an investment with the hope of financial return.
Hay said some of these reasons do not necessarily make good fiscal sense, but if the goal is met, then the solar energy system has served its purpose.
“Two gas stations in Lincoln have wind turbines on them. Those turbines are going to generate about $5 in electricity a month, so they’ll pay for themselves in about 56 years,” Hay said.
For those gas stations, the goal probably is not getting a return on their investment—at least not through energy generation.
“If it’s marketing, they may be successful,” Hay said. “I’m telling you about them now.”
Federal law dictates that individuals or businesses can install renewable energy systems and connect to the local power grid. Nebraska is a public power state, meaning a person would work within established utility districts and with cooperatives to establish such a connection.
How does it work?
Hay talked through the basics of solar energy. A typical solar energy system uses an array of modules or panels up to three feet wide by six and a half feet tall.
Those panels are made of about 60 cells each. The cells contain silicon crystals that, when used with an electric field, produce electric current.
Hay explained the process of installing a system. First, a homeowner must contact his or her local power utility to inform them of the project and talk about how to connect to the local power grid.
Then, the system can be designed, ordered and installed. Home and business owners must obtain proper building and electrical permits, must pass an electrical inspection and must sign a utility agreement.
How to pay for it
Aside from the materials needed to install a solar energy system, a home or business owner will also need to pay for permits, labor (if hiring the job out), potential environmental studies, sales tax on materials, maintenance costs of the system, insurance and operating costs.
The federal government offers a 30 percent tax credit for solar energy systems, but that percentage will begin declining over the next few years, so Hay said the time to install a system is now.
Users will recoup part of their costs through energy savings and depreciation of the system, and some incentive programs are available to help with the cost of purchase and installation.
Jeff Carpenter of the USDA Rural Development spoke about the Rural Energy for America Program grant, which is available for ag producers of any size in any location, as long as 51 percent of their income comes from agricultural production.
The grant also is available to rural small businesses, but the business must operate in a community of 50,000 people or fewer.
Grant applicants can apply for the purpose of creating a renewable energy source or to make energy efficiency improvements.
Those interested in applying for the grant may visit www.rd.usda.gov/reap.
Bruce Hauschild, a Nebraska Energy Office engineer, spoke about financial assistance in the form of low-interest loans from the Nebraska Energy Office.
For more information on such loans, visit www.neo.ne.gov.
