By PAUL GLASSER
State Journal Staff Writer
Andy McDonald, of the Kentucky Solar Partnership, asked state lawmakers on Friday to support tax credits or low-interest loans for families who want to install solar-power systems.
"It's wise for the state to help spur development in this industry," McDonald told members of the special subcommittee on energy.
He said although Congress had previously approved a two-year tax credit for solar energy, more should be done to encourage long term market growth. A strong market for solar power will create new jobs, reduce emissions and improve financial security, McDonald said.
Homeowners can install a variety of solar-energy systems, including photovoltaic generators and solar water heaters. It costs about $4,000 to install a solar water heater but McDonald said energy cost-savings would pay for the system in about eight years.
"A solar water heater adds value to the home and saves about 3.6 tons of carbon emissions per year," he said. "That's equal to taking one car off the road."
McDonald also said engineers and architects can incorporate elements when designing a home that will reduce the amount of energy required to heat it in the winter and cool it during the summer.
In 2006, the Department of Energy provided funding for a pilot program offering rebates for solar water heaters. McDonald said the program was very popular and all the money was spent in only one year.
The Kentucky Solar Partnership also works to improve education and awareness, and McDonald tried to dispel several myths while addressing lawmakers on Friday. Although Kentucky does not have the solar energy capacity of states like California or Arizona, he said it is still a viable alternative.
"I have spoken with many engineers and architects and they think solar energy doesn't work in Kentucky," McDonald said. "That's just not the case."
Kentucky, and the entire country, have an enormous potential for solar energy, McDonald said. In 2006, Germany led the world in solar energy growth, installing 800 megawatts of capacity. Capacity in America only grew by 120 megawatts last year.
"We have an enormous untapped solar energy capacity," McDonald said.
The committee also heard from Jim Fugitte, CEO of Wind Energy Corporation in Elizabethtown. He also said Kentucky has an enormous potential for growth in wind energy.
The company currently employs 18 people, but Fugitte said he expects that number to grow to 1,800 by 2012. The company will focus on providing turbines to big-box retailers and office buildings.
"Six turbines would provide about one-third of the power used by a big-box retailer," Fugitte said. "Wal-Mart is the largest user of energy aside from the federal government."
It would cost between $50,000 and $100,000 to install wind turbines, but energy savings could repay the initial investment in five years, Fugitte said.
Committee co-chairman Rep. Rick Nelson, D-Middlesboro, said the presentations were very informative.