Solar shines again

 

BY BUZZ BURGETT

 

As sure as the sun will rise tomorrow, this country will see a steadily rising demand for green products to reduce our oil dependency. Germany is a world leader in solar technology. That country has vowed to be energy independent by 2020. It’s started here in Seattle and I’m positioned to ride the crest of that wave.

 

Homeowners have varying reasons to buy alternative energy equipment for their homes. Some want to take advantage of the 30% federal energy tax credit through America’s Recovery & Reinvestment Act (ARRA). In addition, many states offer attractive incentives to homeowners who invest in energy-saving technology. Some homeowners feel the need to reduce their carbon footprint on the world, while another motivator is the simple need to get out from under their inflating utility bills. Whatever the reason, now is the perfect time for consumers to evaluate the energy efficiency of their homes and for you to bring them a bright future with solar.

 

The sun’s energy is free to anyone who can capture it. Solar is as dependable as tomorrow’s sunrise and technology has made major advances in recent years. Most solar Photovoltaic (pv) systems guarantee their panels will still be 80% efficient after 20 years of service. We service many solar thermal systems that have been producing free heat since the early 1980s. People are amazed to watch a utility company’s electrical meter spin backwards, knowing the utility company will pay them for energy going back to the grid. You can help your customers put a new spin on solar as our nation emphasizes energy independence. That’s what my company, Northwest Mechanical, Inc., has been doing for 22 years, here in the cloudy city of Seattle. If we’re having solar success here, think what’s possible in your part of the country. In fact, given our current project in Nome, Alaska, I say it will work anywhere!

 

Northwest Mechanical, Inc. is a 25-person heating company, specializing in hydronic (radiant) heating and boiler service with a sales volume of more than $4 million per year. My brother and I started offering solar in 1979 and have installed over 1,000 systems. Those early systems were funded by 40% federal tax credits and peoples’ fear of skyrocketing energy prices. Then energy became cheap and consumer attention drifted elsewhere.

 

After a few years of sleep, the solar market awakened in 2006. I opened the blinds again to go after the most lucrative solar market: swimming pool heating. It is the simplest solar system to implement. Now, with rising fuel prices, the 30% tax credit and fear of utility bills putting its grip on consumer confidence, solar is once again gaining momentum, moving from secondary to a primary energy source in many applications.

 

Solar is an easy addition for any plumbing or hvac contractor who does water heater and tankless work. There will be an initial investment in training, tools, equipment and vehicles to transport solar equipment, but the rewards can be huge.

 A single solar system typically takes two to four technician-days to install and generates revenue of $10,000 to $100,000. Manufacturers are good about packaging everything you’ll need for a solid installation. The only stumbling block is putting your staff on rooftops; so train your staff on fall protection and align yourself with a good roofing contractor. We have alliances with three to four of them, so someone is always there when we need them.

 

You have the best opportunity to sell to the prime homeowner market interested in solar technology because you have reputable businesses in plumbing, heating and air conditioning service. This gives you a market advantage.

 

For some consumers, solar energy may be their only alternative. In remote areas where a utility line extension may be cost prohibitive or power is unreliable, photovoltaic technology is often a good alternative.

 

We offer two types of solar systems: photovoltaic and thermal collectors. PV uses solar electric modules to directly convert the sun’s rays into electricity to power a home’s energy needs. It’s silent, pollution-free and appealing to homeowners committed to reducing their carbon footprint. Residential PV systems are most often installed on roofs, but can also be placed on poles. We have installed PV systems with a power output of up to 12 kilowatts.

 

Thermal collectors typically transfer the sun’s energy to hot water. This technology displaces the need for electricity or natural gas to heat water for home use or as a heating supplement.

 

In my experience, photovoltaic is more expensive to install and is location sensitive. If one module of an array falls into shade, electrical output drops drastically. System design and module placement is critical to system performance.

Solar thermal systems are less location sensitive and can reap savings of 50 – 70% on water heating expenses in Seattle. It’s the least expensive and the most profitable for us. We deliver energy savings, while positioning ourselves to be a leader in the green movement. In 2006, our solar sales were $200,000; in 2007 sales jumped to over $700,000; and in 2008, $1.12 million. Our gross margin on thermal systems is 50% and for PV it is up to 30%. Our solar business will double in 2009, bringing in $2.5 million in sales for 2009.

 

Northwest Mechanical has found success focusing our marketing on higher end homeowners with discretionary incomes. These folks typically drive hybrid cars. We reach them through home shows, architectural seminars, direct mail, yellow pages, and by promoting solar on our trucks with our 206-go-solar phone number.

 

Two of our four sales people focus solely on solar. We build strategic partnerships with architects (preferably before a builder becomes involved), other green businesses and green trade organizations. To separate the talkers from the buyers, we ask for a $1,000 deposit and copies of a prospect’s energy bills. The energy bills give us a cost and usage analysis, so we can recommend a system and payback. We monitor our customers’ systems remotely to assure they deliver energy within specifications. It also gives us an opportunity to get back in customers’ homes to lock them in as loyal customers. We “walk-the-talk” with a 3.4KW photovoltaic and Apricus evacuated tube solar thermal system in our facility. We use some of the hot water to wash our trucks.

 

Have I piqued your interest? Here are a few starter tips to explore solar opportunities:

 

• Analyze your competition and get leads through www.findsolar.com.

• Research home sales equipped with solar technology — we’ve found solar homes sell faster.

• Join the American Solar Energy Society (www.ases.org) to get involved and for solar information.

• Go to www.poolists.com to find pool owners near you.

 

I believe that plumbing, heating cooling and electrical contractors can be leaders in making America energy independent. You can reap benefits and profits by riding these rays of sunshine early as market demand grows.

 

Buzz Burgett is president of Northwest Mechanical, Inc. in Seattle and a member of Nexstar® Network, a business development and best practices organization for independent plumbing, heating, cooling and electrical home service providers. His company has been working with solar technology for 22 years. For more of Buzz’s details on solar, go to his websites at: www.nwmechanical.com and www.smartsolarsolution.com.