Two local businesses ride the alternative-energy wave

Traditionally when it comes to energy sources, southern Ohio and the Appalachian region have been known for their contributions to coal mining. However, should the Athens Solar Initiative receive necessary "œseed money" from government sources, and then be adopted by Athens City Council, southeast Ohio will have the chance to pave the way for alternative fuel sources and to make an impact on the environment by reducing the impacts of fossil fuels.

According to the 2008 Preliminary Analysis released in April by the federal Energy Information Administration, coal consumption for electric power in 2008 was measured to be 1,041.6 million short tons, while coal production in the United States hit a record high of 1,171.5 million short tons. In Ohio alone, coal production increased by 16.3 percent. The analysis also stated that coal prices for electrical utilities increased by 14.3 percent in 2008, and have steadily been increasing for the last eight years.

With the increasing prices in electrical utilities and the growing environmental consciousness, it's no surprise that alternative-energy sources have grown in popularity. In previous years, the switch to alternative energy was primarily an environmentally based decision, but with the increase in the cost of electrical power and new laws to aid in installation costs, alternative energies are becoming an economic-based choice as much as environmental.

"Solar power has gone mainstream, and plenty of people still want to do it because it's the right thing for the environment, but more and more it just makes financial sense," noted Jeff Greenfield, founder of Third Sun Solar and Wind Power in Athens. "Historically, my customers have been 90 percent motivated by 'going green' and 10 percent motivated by long-term saving. But with all these incentives and the changing cost of energy, we're beginning to have customers who want to switch because of the financial payback."

According to Greenfield, between federal tax deductions and grants, the cost of a solar-powered system installation can be reduced from $35,000 for a 5,000-watt system to $9,500. While this decrease is significant, many small businesses and residents still cannot afford to cover the out-of-pocket expense.

Greenfield, however, said that the Athens Solar Initiative would allow for homeowners and businesses to borrow money to help pay for this last hurdle. The buyers would then repay this amount over time through their property taxes. The installation, which would be considered an improvement to the property, would mean that the tax would remain with the residence should the homeowners or business owners move.

"There are lots of people interested in (alternative-energy systems) but the upfront cost is the biggest hurdle," Greenfield said. "If (the Athens Solar Initiative) were to pass, there's going to be a number of businesses and home owners who will decide to use this to finance solar energy. The nice thing about it is that it doesn't affect the city budget or the taxes of anyone who isn't involved. The people benefiting from this energy source are agreeing to voluntarily raise their taxes to get the system, but they're going to be saving more money long-term on their electric bill, even with the tax."

Matthew Bennett of another alternative-energy provider in Athens County, Dovetail Solar and Wind, agreed that environmental reasons are no longer the primary reason for alternative energy's growing popularity. (Dovetail has offices in five Ohio cities.)

"A lot of people initially are geared toward alternative energy for environmental reasons, but more and more we have people who are interested in lowering their energy costs," explained Bennett, design and installation manager for Dovetail. "For most people, I think the interest stems from a little of both."

A typical house would have a 5-kilowatt system, which would produce about 5,500-kilowatt hours a year, Greenfield said. This amount translates to the equivalent to about $46 a month that could be deducted from an electric bill, or about $552 a year.

The amount taxed to buyers through the Athens Solar Initiative would be about $475 a year. So even prior to paying off the system and retaining the full $552, buyers would still be saving $77 a year.

"The main reason persons like solar power is because it is carbon neutral," Greenfield said. "Within two years, the system will have generated more carbon-free energy than was used to make it, and everything after that produces zero carbon."

There are some differences in modern solar systems, Greenfield said, one difference being that newer systems are usually not purely solar based. They are interactive with electric utilities so that the customer can save money by using the alternative energy source, but also have an electrical backup for cloudy days, instances where they may need more power, or simply if the roof or budget doesn't allow for a larger system.

Modern systems are also no longer run by battery, which makes the newer systems more user-friendly. However, this does make it susceptible to power outages, as with electricity. Short of this, Greenfield said there are no differences between electric and solar energy as far as how systems in the house work and operate.

In addition to solar electric energy, there are also solar thermal systems and wind-powered systems in use in Athens County. Solar thermal systems are, according to Bennett, slightly larger than a solar electric system and are used to heat water. Bennett noted that a solar thermal system could offset energy used for creating hot water by 60-75 percent, and that the systems are not as expensive as a solar electric system.

A solar thermal system usually starts out at about $10,000, Bennett said. After subtracting federal tax credits and grants, the out-of-pocket expense is usually around $5,000. Unfortunately, solar thermal energy systems are not covered by the Athens Solar Initiative, which is for electrical solar systems only.



DOVETAIL SOLAR AND WIND has also installed hybrid systems in southeast Ohio. These are usually for locations that are unable to receive electric power, and so they run on a combination of solar and wind. Bennett said he does not usually recommend wind power for areas with winds below 13 mph, and southeast Ohio usually is well below this number.

Bennett also said that solar systems last longer and don't tend to break as easily as wind systems because unlike solar systems, wind-powered systems rely on moving parts.

Still, Bennett said he has installed about three hybrid systems in southeast Ohio.

"It's not uncommon, especially in rural and country areas, for people to be unable to connect to a power grid. For these people solar is a great option, but it doesn't do so well in the winter," Bennett said. "But it just so happens that in the winter, when there's no sun, there's more wind. So wind can complement solar energy."

Many businesses and residents in Athens County have already begun to use solar energy systems. Third Sun has installed panels on the Holzer Clinic, Mathews Insurance, the Wayne National Forest HQ near Nelsonville and OU's Chubb Hall.

Bennett estimated that Dovetail Solar and Wind has installed about 15 systems in Athens County, of which a half dozen were solar thermal energy systems.

The Appalachian region has always been involved in the nation's energy resources, and even as the nation grows more environmentally conscious, this isn't likely to change soon. Companies such as Third Sun and Dovetail continue to have a growing market, however, while projects like the Athens Solar Initiative have made Athens County a pioneer in the expansion of these energy sources. The Athens model may not be the answer to all environmental issues, but it is a start.

"It's not a quick fix," Bennett said. "But it's a good investment."