SOLAR POOL HEATING
COSTS AND INCENTIVES
From our observations, solar pool heating systems generally range
in price from $3,000 to $12,000. The reason for this huge disparity
in price is due strictly to the size of your pool, the number of
panels you use to heat it, and the complexity of the installation.
Most commonly, systems are in the $4,000 to $7,000 range. To find
out more on how these systems are sized and work, click here or
go to our FAQ page for pool heating.
Our prices are higher than some and lower than others. However,
what we feel we do better than all is our hands-on approach to each
and every aspect to each and every install. Even before a job is
started, we bring to all potential projects personal and courteous
customer service. This is something we provide all along. We
pick up our phones. If we are going to be late or if there is
some deviation from expectations, we are on the phone discussing
it. We also like to think of our installations as pieces of art,
masterfully installed. We care about the quality of the components
used and the eye for detail installations should have.
Site Specifications
There are a couple of site specific technical specifications concerning
your potential solar site which you need to be aware of. One of
the first things you want to think about when considering solar
is how good of a solar site you have. The incentives that exist
are really only meant to incent solar systems placed on the most
optimal of locations. In other words, in order to get your hands
on these incentives, your house has to have a roof that has access
to 75% or more of the seasonal sun. This means you really can’t
have any shade falling on the roof where you want your solar system
installed from 10am to 4pm from April to October. The roof does
have that 25% leeway, but it gets used up pretty fast.
The other specification to be aware of is the life left remaining
on your roof. The Energy Trust, especially, wants the roof your
solar system goes on to have at least 15 years or more left remaining
on it. If this is not something you can remember or verify and the
roof life is a bit iffy, you should call a home inspector or a roofer
to come on out and take a look at things. Make sure they leave you
something in writing as proof you have 15 years or more left remaining
on your roof.
Finally, don’t feel you can’t go solar just because
you don’t have a perfect solar site and are not eligible for
the incentives. Every year Solar Energy Solutions, Inc. installs
solar systems which fall outside of the ideal scenario the incentives
are set up to support. The incentives are great, but not essential
to an installation.
Economic Reasons to GO Solar
Before we go any further we should probably address the issue of
payback. Simply put, it is GREAT. Solar systems for heating pools
are the only solar applications where there is a good simple payback.
These solar pool heating systems usually pay for themselves in three
to six years. Not only that, but you will be adding a month or two
onto your swimming season by heating your pool earlier and later
in the year. Additionally you will be greatly increasing the value
of your pool because it will be used much, much more due to the
fact that it will be warm. People will no longer hesitate to jump
into your pool and rush, blue lipped, out of it. All of this increase
warmth will not cost you a dime. It will be FREE!
There are other strong economic reasons to considering going solar
as well. A solar pool heating system will quadruple in value over
the course of 10 years due to energy prices quadrupling every 10
years or so. Solar pool heating systems will give you a 10-20% return
on investment that is completely risk free and tax free. That is
pretty exciting. And, solar systems increase your property value
by the cost of the systems, yet because of the incentives, only
cost you a fraction of that total. Of course, my favorite incentive
is conservation, an intangible but powerful incentive to any solar
installation.
Solar Incentives
In addition to all of these great reasons to install a Solar Pool
Heating System, there are currently two entities which incent the
installation of solar pool heating systems: the Energy Trust of
Oregon, and the Oregon Department of Energy, through a state income
tax credit.
The Energy Trust of Oregon is funded by money it receives
through PGE, Pacific Power, and Northwest Natural Gas. There are
also a number of smaller utilities that pay into the program. If
you do not heat your pool using one of these utility companies,
or have access to them, you will not get the Energy Trust incentive.
These utility companies take 3% of the money we pay them in our
bills and redirect it to the Energy Trust. The Energy Trust then
redistributes this money into renewable energy, and energy conservation
programs. The way this pens out for solar is in direct reduction
in price incentives. The reduction in price incentive varies by
system performance, which in this case depends on the total square
footage of solar pool heating panels you install, and tops out at
$1,000. The greater the energy savings, and the more solar pool
heating panels you install, the greater the reduction in price incentive
from the Energy Trust. For example, if you had Solar Energy Solutions,
Inc. install a solar pool heating system that cost $5,500 and you
heated your pool with Northwest Natural Gas, you would qualify for
an $840 reduction in price incentive. This $840 comes right off
the top of what you would otherwise pay Solar Energy Solutions,
Inc. This means your out of pocket cost to Solar Energy Solutions,
Inc. would be $4,160.
$5,500 Installed cost
- $840 Minus Energy Trust incentive
$4,660 Equals your out of pocket cost
Remember, different sized systems qualify for different incentives.
The Oregon Department of Energy has since 1986 been on the
cutting edge of encouraging people to go solar by means of tax credits.
Oregon’s state income tax credit program for solar has always
been an example to the rest of the nation. Like the incentive from
the Energy Trust of Oregon, the state income tax credit is based
on the performance of a system. With solar pool heating, this means
the more solar pool heating panels you install, the greater your
incentives. Different sized systems qualify for different tax credit
incentives. Also, like the Energy Trust, the state is only looking
to incent ideal solar scenarios. The Oregon Department of Energy
is a little looser than the Energy Trust and does not have a roofing
specification and allows lesser tax credits for systems mounted
on roofs with 50% to 75% of the season available sun. The maximum
state income tax credit for a Solar Pool Heating System is $1,500.
You get this tax credit incentive when you file your state income
taxes. Remember, this is a tax credit, not a tax deduction. Tax
credits are better than tax deductions because they come right off
of your state income tax liability. For example, say you have paid
the state of Oregon $4,000 in income taxes throughout the course
of the year. Because of deductions and allowances, say you get $500
back. Well, if you install a large enough solar pool heating system,
you can get back an additional refund of up to $1,500.
People are always complaining about how they never get anything
for their tax dollar. Here is a way you can get your tax dollar
right back into your pocket and install a solar system to boot.
But remember, you do have to pay a state income tax in order to
get the tax credit. If your income tax liability is low, the state
gives you up to 5 years to absorb the full amount.
I remember when I received my $1,500 tax credit when I installed
my solar hot water system in 1992. It was an afternoon in May and
I was doing some office work when I heard the mailman come to the
door. On this particular day he only had one piece of mail and it
was from the Oregon Department of Revenue. With one eye closed and
the other half open, I opened the letter wondering what the bad
news could be. But then, as I peeked inside, what should my wary
eyes see? A check for $1,500 bucks. Yippee! I said as I ran through
the offices yelling, “Isn’t government GREAT?!” How
often can a person yell that?
To summarize. if Solar Energy Solutions, Inc. installs the $5,000
system mentioned above, it would qualify for the Energy Trust of
Oregon reduction in price incentive of $840. It would also qualify
for the state income tax credit of $1,500. This means under this
scenario, there would be a total of $2,340 in incentives. This would
ultimately bring your total system cost down from $5,000 to $2,660.
WOW!
$5,500 Installed cost
- $840 Minus the Energy Trust reduction in price incentive
$4,660 Out of pocket cost
- $1,500 Minus state income tax credit
$3,160 Net cost!
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