As everyone knows, Yuma is famous for being one of the sunniest places on Earth.
So why isn't Yuma the solar power capital of the world? Why isn't every business and home in the Yuma area powered by the sun?
Like most questions that seem simple, the answer is both simple and complex. And like all issues involving energy, it revolves around money.
"We've been working on renewable solar energy in Arizona since the 1950s," said Steve Gotfried, the renewable energy spokesman for Arizona Public Service. "But even today, solar energy installation is still driven by rebates and incentive programs to help offset costs. We expect that in the near future, solar energy will receive a significant boost as an alternative energy source in Arizona."
With all the massive numbers being thrown around on the various bailout bills, some small numbers hidden away may lead to increased use of solar energy in Yuma and the rest of Arizona.
An obscure section of recently approved $700 billion bailout approved by Congress removes the cap of $2,000 on solar power installations and allows a federal tax credit of up to 30 percent of the cost of the system. On a $40,000 system, this would mean a tax credit of $12,000.
This may mean that after Jan. 1, solar power installation companies will be springing up to answer the new call for alternative energy sources.
• New business boom?
"I expect five or six new companies to open for business in Yuma during the coming year," said John Balfour of Perfect Power Inc. in Yuma. "Most of them will make two or three installations from components they buy somewhere and simply bolt together on someone's rooftop.
"Then they will disappear. That's what happened in the last big solar energy boom of the ’70s."
Balfour warns about design problems with systems in Yuma's heat.
"Many solar panels have their peak efficiency at 77 degrees Fahrenheit, but the temperatures on the surface of a panel in Yuma's summer sun may reach 190 degrees. They are much less efficient at that temperature."
According to Balfour, picking the right design could make all the difference, as there are over 5,000 manufacturers of photovoltaic panels and hundreds of different types.
"Some types work better in Yuma's heat than others. A system designed for use in Colorado may be a complete failure here in Yuma. Design and selection of components is really important."
Steven Gotfried estimates that a three-kilowatt system for the average home would have a basic installation price of approximately $21,000.
"Out of that," said Gotfried, "there would be a $3 per watt incentive rebate from APS (approximately $6,300), another $1,000 credit from the state of Arizona and as much as a $9,000 tax credit from the federal government. Out of pocket expenses could be as little as 4 to $5,000."
While a three-kilowatt system may not supply all the power necessary for the average suburban home in Yuma, especially during the summer months, it promises to reduce energy bills, virtually eliminating them during the winter months.
• Solar sense, despite cost
However, for some people, solar power makes sense regardless of the exact amount of dollars and cents involved.
"It just seemed like the right thing to do," said Danny Bryant, owner of Pacesetter Homes. "We're fortunate that it also made excellent sense financially. We found something that was good for the environment and would pay for itself. It was a win-win situation all the way around."
Bryant and his family has been environmentally aware since the 1970s.
"I listened to all these people saying that we had to rid ourselves of dependence on foreign oil and yet no one ever did anything but talk. In the late ’70s, I bought a solar hot water heater for $1,000 and I'd wager that it saved me 4 or $5,000 heating water for a family of six over the last 30 years before it died."
But as a business owner in the 21st century, Bryant was once again willing to put his money where his conscience was.
"I couldn't believe we didn't have more solar power in Yuma. It just makes sense. We started thinking about this in 2005 and by September of 2006, we were up and running and hooked into the grid and on-line.
Bryant had a system installed that had three inverters with 20 panels attached to each one. It is a large system intended for commercial use.
"This system cost about $127,000 to be installed, including all the permits required. At the time it was installed, APS paid for half of the cost, I got 30 percent from the federal government and another $1,000 from the state of Arizona.
"My total investment only ended up as about $42,000 and with $300 a month coming in, I'm making about 8 percent on my money right now. Tell me where you can get that kind of return in today's market?"
So, is solar power right for everyone? There are more incentives for commercial use, so a payback can be much quicker on a commercially installed system, according to APS. But residential use can also pay off, although it may take a bit longer, APS said.
"We're making huge investments in solar power right now," said Gotfried of APS. "We're building a 280-megawatt solar power plant near Gila Bend that will come on-line in 2012.
"Everyone in Arizona will benefit from this plant and everyone in Yuma will receive some power from this facility. We are definitely making gains."
