Interest Phase Overview
The Interest Phase is an examination of your renewable energy options. This includes:
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(1) Exploration of various solutions (solar, battery storage, heat pumps, etc.)
(2) Pros and cons of each technology, and
(3) Initial cost estimates and potential long-term savings
(4) Key ROI Considerations
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Exploration of Six Solutions
1. Solar Power Systems
Solar photovoltaic (PV) systems convert sunlight directly into electricity. Key components include:
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Solar panels
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Inverters (to convert DC to AC)
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Mounting equipment
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Optional battery storage
Considerations:
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Roof condition, orientation, and shading
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Local climate and average sunlight hours
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System size based on energy needs
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Grid-tied vs. off-grid systems
Pros:
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Widely applicable in many regions
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Low maintenance
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Silent operation
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Potential for energy independence
Cons:
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Intermittent generation
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Initial high costs
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Dependent on weather conditions
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May require roof modifications
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2. Battery Storage Systems
These systems store excess energy for use during non-generating hours or power outages.
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Key technologies:
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Lithium-ion batteries (most common)
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Lead-acid batteries
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Emerging technologies (e.g., flow batteries)
Considerations:
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Storage capacity
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Cycle life and degradation rate
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Integration with solar or grid systems
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Smart features for energy management
Pros:
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Provides energy during outages
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Enables greater energy independence
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Can optimize energy usage and costs
Cons:
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Additional costs to solar or grid systems
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Limited lifespan (typically 10-15 years)
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Requires space for installation
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Potential safety concerns (rare but possible)
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3. Heat Pumps
Heat pumps transfer heat from one area to another, providing both heating and cooling.
Types:
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Air-source heat pumps
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Ground-source (geothermal) heat pumps
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Water-source heat pumps
Considerations:
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Climate suitability
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Installation complexity
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Energy efficiency ratings (SEER, HSPF)
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Integration with existing HVAC systems
Pros:
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Highly efficient for both heating and cooling
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Lower operating costs compared to traditional HVAC
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Reduced carbon footprint
Cons:
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Higher upfront costs
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May struggle in extreme cold without backup
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Installation can be disruptive​​
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4. On-Demand Hot Water Heaters
Also known as tankless water heaters, these systems heat water as it's needed.
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Types:
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Electric
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Gas-fired
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Solar water heaters (as a renewable option)
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Considerations:
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Flow rate capacity
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Energy factor (EF) rating
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Installation requirements (venting for gas systems)
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Potential need for electrical system upgrades
Pros:
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Energy efficient
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Saves space
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Provides endless hot water
Cons:
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Higher upfront costs
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May require upgrading gas line or electrical system
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Limited flow rate
5. Geothermal Energy Systems
These systems use the earth's constant underground temperature for heating and cooling.
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Components:
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Ground loop (horizontal or vertical)
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Heat pump
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Distribution system (ductwork or radiant flooring)
Considerations:
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Property size and soil conditions
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High upfront costs vs. long-term savings
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Drilling or excavation requirements
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Integration with existing home systems
Pros:
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Very efficient and low operating costs
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Long lifespan (50+ years for ground loops)
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Consistent performance regardless of outdoor temperature
Cons:
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High initial installation costs
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Extensive landscaping disruption
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Not suitable for all properties
6. Residential Wind Power
Small wind turbines can generate electricity for homes in suitable locations.
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Considerations:
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Wind resource assessment
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Zoning laws and permits
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Tower height and noise concerns
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Grid connection vs. battery storage
Pros:
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Can be very effective in windy areas
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Potential for significant energy production
Cons:
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Highly dependent on location
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Visual and noise impacts
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Complex zoning and permitting process
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Maintenance requirements
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ROI Overview and
Asset Cost/Benefit Considerations
​​We get into the details of ROI scenarios in the next section.
Many of these renewable energy solutions can a have a gross investment cost of a small to medium sized new car.
The difference is a small car depreciates from the time you drive away from the dealer.
The asset cost of implementing a renewable energy solution produces a stream of cost savings from the minimal to free cost of the energy produced. There are credits that may flow from government entities and local utilities that offset initial costs.
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Renewable energy investments have one main purpose: to generate enough electricity to offset your bill. It's also p[ossible to use local Net Metering to get credits for excess energy generated as it is "sold" back to the local energy utility and it's energy is supplied to the grid.
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​​The cost of electricity will continue to rise at a rate of 3-4% per year from here on out. The higher cost of electricity means the higher avoidance of costs when you use renewable energy.
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Nearly all the returns you receive from renewable energy are in the form of savings, not income, so there is no tax burden on your savings. So at the end of the year, you can look at solar as putting more savings in your pocket than you would if you earned investment income that you would have to pay tax on. With solar, there is simply no additional tax to pay.
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Under this set of circumstances, renewable energy system investmenst offers rate of return equal to the traditional stock market and real estate but without as much risk. At this point, the ROI that solar can offer is dependent to a large degree on future electricity prices rising.​
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Potential Home Appreciation
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Also, it is increasingly recognized that renewable energy solutions intentionally implemented will increase the value of your home.
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Studies (2016 by Livermore Labs (√)) indicate that for every KWhr implemented increases the value or the affected home by $3.11 per watt , or by approximately $15,000 per average home.
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By this example, this editor's 9.41 KWhr Solar Facility increased the value of his home by $29,265! The facility cost $35,000 in 2013 dollars, and it's cost would be significantly lower in 2024 dollars.