Harry Thomason - Solar Energy
(Page 8 of 13)
November/December 1979
By Richard Freudenberger
PLOWBOY: So how does the builder benefit by installing solar systems?
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THOMASON: He doesn't, of course, if he chooses an expensive design. On the other hand, if he can provide a system that's competitive in price, equally reliable, and just as easy to install as a conventional furnace system . . . why, he's way ahead, since the solar setup operates at a minimum of cost and will just about sell itself . . . and help sell the home.
PLOWBOY: That brings up another question. The Solaris system might be competitive with other solar installations, but how in the world can it stand up against a furnace setup on a dollar-for-dollar basis? Do you camouflage the price difference by calculating a payback period based on fuel savings?
THOMASON: Absolutely not . . . I don't have to! I'm always hearing about "payback periods" with solar installations, so I've coined a phrase of my own: "Negative Payback Period". In other words, there is no payback period . . . because the Solaris system can be installed at no additional cost!
PLOWBOY: Wait a minute . . . the term "payback period" usually refers to the time it would take for fuel savings to pay for the difference in price between a solar and a conventional system. You're telling me that you can eliminate that difference in initial price? I find that hard to believe.
THOMASON: Most people do . . . but let me explain. First, you don't hear anyone talking "payback" when it comes to conventional systems, because there never is one . . . it's a constant "payout", starting with the initial cost of the unit . . . and believe me, furnaces don't come free. Now, let me run through a couple of sample installations so you can get an idea of what I'm talking about.
In this house right here, the cost for Solaris heating plus the additional air conditioning was $4,968. A conventional system would have cost approximately the same at the time, in 1974.
Now we also have a builder in North Carolina who got three quotations on heating systems before he constructed his house: One was a deluxe heat pump for $5,200, another was a baseboard heating arrangement with air conditioning for $9,200, and the final one was our Solaris-also with air conditioning-for about $7,500. Keep in mind that these are all high-quality units, and the prices are fairly representative of a national average. Right away, you might think that the heat pump would be the best way to go . . . but you'd better think again.
You see, many people don't realize that there's a federal income tax credit-of up to $2,200-available to anyone utilizing a solar energy system to heat a newly built home. In addition, many states offer a substantial direct real estate property tax credit, and some counties grant an additional tax credit on top of that. What's more, many states allow an exemption from state sales tax on the purchase of solar equipment and hardware . . . this alone can mean a saving on materials of 5% or more. So, when you total up all the credits, your "solar" cost is right down with the least expensive of the quality conventional systems . . . without even beginning to count the operational savings.
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