View from Customers – Solar and Energy Efficiency

On February 23, 2016, Alabama Environmental Council (AEC) held its fourth POWER-UP Energy Forum at
Birmingham-Southern College (BSC), co-hosted by the Southern Environmental Center and the BSC
Urban Environmental Studies Program. AEC is a forty-nine-year-old environmental education nonprofit
directed by Michael Churchman. Churchman said, “AEC’s energy goal is to promote interests, not
positions on environmental issues, as it supports ways to meet Alabamians’ current energy needs
without compromising the ability of future generations to meet their needs.”
9:20-10:30 - View from Customers – Solar and Energy Efficiency
Moderator - Joyce Lanning, AEC Energy Program Consultant
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Jim Terry - Architect, CEO Evan Terry Associates, Partially off grid solar home
Elizabeth Scribner - UAB Math instructor, PhD. Candidate, Partially off grid solar home
Randy Buckner - Dir. of Research & Development, Avion Solutions, Solar on barn and at business
Keith Johns - Dir. of Energy & Sustainability, CBRE, a commercial real estate services company which
supports 1700 Regions Bank offices in 16 states
The first panelist, Jim Terry, is an architect and CEO with Evan Terry Associates, who has a partially offgrid solar home (as well as a plug-in Prius with a license tag “SOLAR”). Terry served as the Executive
Director of the Alabama Solar Coalition in the late 1970’s and early 1980’s before merging it with the
Alabama Solar Energy Association to form the still-active Alabama Solar Association.
Terry has seen three historical waves of solar interest: as a child in the 1950s, in the 1970s driven by
energy costs, and the current wave that has lasted for twenty-five years. Terry installed the panels on
his house in 2015, although he had planned for - and almost completed - a solar installation years
earlier. He began using solar to minimize environment impact, for self-sufficiency, and for his own
curiosity. Energy savings, government rebates, and other economic factors all entered into his decision.
From an economics perspective, Terry feels it is important to look at lighting around your house, heating
and cooling changes, habits of usage, insulation, transportation and Alabama Power rates.
He chose to go partially off-grid with battery backup for his xxx kW solar panel system, in part because
of the excess cost of over $25 a month he would have to pay Alabama Power for using his roof to
generate some of his own electricity.
He emphasized that people should not focus on the payback time of solar energy, but instead look at
the return on investment (ROI). Payback period looks at how long it takes to break even - that is, when
incoming returns cover costs. ROI compares the magnitude and timing of investment gains directly with
the magnitude and timing of costs. A high ROI means that gains compare favorably to costs and a longer
payback is not necessarily a solar deal breaker.
Next, Elizabeth Scribner described her personal experience with energy efficiency and solar power. She
is a UAB math instructor, PhD Candidate, and, for the past six months, a new, partially off-grid solar
homeowner as well. She began by showing us a picture of her home, which has perfect positioning to
use solar energy. That fact was part of her move to solar power, along with the family’s stewardship
ethic. Scribner’s preparation prior to installation included adding insulation in her attic, installing LED
lights in place of incandescents and CFLs, upgrading to energy-efficient appliances and replacing single
with double pane windows. Her 7 kW system has 24 panels, a 52 volt battery array, and can run for up
to five days even without sunshine. Scribner’s air conditioner, oven, and dryer are the only things on the
grid. She monitors the system with an app and troubleshoots the system herself. She received the 30%
federal tax credit for installing her solar panel system, but no incentives from Alabama Power. In fact,
the decision to go off-grid with battery backup was based in part on the $5 kilowatt tariff Alabama
Power charges anyone who generates some of their own electricity and uses the grid for backup.
Scribner explained that there are three types of solar home options: (1) Grid-tied solar, which provides
solar power during the day, while the power company powers your home at night; (2) Off-grid solar,
which uses solar power by day and uses a battery that has been charged during the day to run the home
at night; and (3) Hybrid solar, where all or part of the home is connected to the grid for backup and/or
supplemental power. The chart below shows projected savings of $1,141 per year. Had the home
remained grid-tied, the small three and a half cents the utility would pay for the excess power they
purchased would have been offset by the $35 per month solar tariff. Although batteries can almost
double the cost, over the long term the Scribners preferred that choice. Alabama Power offers no
incentives for solar, but the 30% Federal Tax Credit was helpful.
Scribner is a partner in a new solar company, Vulcan Solar Power, which provides a turnkey path to solar
installations.
The third speaker was Randy Buckner, Director of Research and Development at Avion Solutions,
Huntsville. He is in charge of developing advanced technologies at his company and adapting them for
commercial use. Buckner, who is located in TVA territory, has been moving his company to more energy
efficient techniques using Energy Star portfolio manager as a tracking tool. The chart below shows that
Avion’s energy efficiency upgrades and improvements from December 2012 to 2015 saved energy and
money. Avion’s Energy Star Score increased from 2 to 74 (out of 100), their Energy Use Intensity (EUI)
decreased by 60.6% and energy cost decreased by 53.5%. The savings were accomplished primarily by
calibrating the HVAC system to run more efficiently and changing parking lot lighting to efficient LEDs.
The building’s 50kW solar voltaic capacity, installed in 2015, is provided by 180 solar panels. The 30percent federal tax credit, accelerated depreciation and a Tennessee Valley Authority rebate made the
system very cost effective. Avion also has a contract with Huntsville Utilities and TVA to sell all solar
energy to the grid at 140 percent of the retail cost of energy for 10 years, then 100 percent the following
10. This TVA solar incentive has created a large market for solar installations in the top two-thirds of the
state. (See AskAlabama.info for a map of TVA territory solar installations by zip code.)
Buckner had earlier installed 77 solar panels on his barn. His solar panel system is grid-tied and gridmonitored with smart invertors. Buckner paid $71,350 for his home system, assisted by a $31,000
federal tax credit and TVA residential incentives similar to the commercial opportunity used by Avion.
Like earlier speaker Jim Terry, Buckner also emphasized the importance of ROI over the upfront cost of
installing solar panels and payback period.
The final speaker was Keith Johns, Director of Energy and Sustainability at CBRE. He spoke about energy
consumption in facilities for CBRE’s client, Regions Bank, and how energy efficiency applies to everything
else that had been discussed in the session. Johns works to make Regions’ offices be safe and
comfortable, yet efficient and environmentally-friendly. He believes energy efficiency has two types technological and behavioral.
In evaluating where Regions spends money on energy, Johns found that 30% of the energy was spent on
exterior lighting. They aimed to reduce consumption by 10%. Johns said, “Most efficient is the light that
is turned off when not in use.” Therefore, they have been placing controls on many of the lights. He
justifies spending money on efficiency because it allows the bank to plan and budget better into the
future. The rates show little variance from year to year, making it easy to forecast. Johns said, “The best
way to justify energy efficiency cost is to be able to demonstrate the savings numbers to his client.”