Solar power seems less like an 'alternative'
form of energy these days.
Dollars And Sense
“Building owners aren’t looking at just up-front
costs for a heating system any longer, but at the total cost of operation,”
says Craig Ouimette, service manager at Cardinal Heating, Sun Prairie,
Wis.
A good place to start may be energy-efficient boilers, such as the condensing
models Ouimette used on a new 40-bed, 26,000-square-foot assisted-living
facility. But from there, Ouimette was able to sell the builder on the benefits
of pairing the boilers with solar thermal panels on the very next nursing home
he was called on to do.
For the first home (Pine Ridge Assisted Living, Wisconsin Rapids, Wis.),
Ouimette recommended in-floor radiant heating for all the common areas of the
building. There was talk early on about powering the radiant with
“mid-efficiency” boilers with ratings of 78 percent to 82 percent. However, the
lower-priced boilers would have required more money spent on a large masonry
chimney to vent the gases. While the two Munchkin boilers cost more, Ouimette
knew that he could vent the units through the roof with Schedule 40 PVC pipe.
The advantages of the high-efficiency boilers extended well past the venting.
“By upgrading to a high-efficiency, condensing and modulating boiler system to
run a low-temperature application like radiant,” Ouimette adds, “a building
owner can cut 30 percent to 40 percent off the fuel bills compared with a conventional
system.”
Shortly after the Wisconsin Rapids home opened, Cardinal Heating started work
on another facility in Colby, Wis., of similar size.
Ouimette says Cardinal, a 25-year-old family business, started installing solar
just a few years ago. In fact, Ouimette got interested in solar by way of a
friend who works at Hot Water Products, a Milwaukee rep firm specializing in
solar and other renewable energy products,
which we featured in last year’s Solar
Installer.
One of Cardinal’s first solar jobs was installing thermal panels for the hot
water used at its shop, which employs 10. Ouimette figures that first job cut
the business’ own hot water bills by a third.
While working on the Colby nursing home, Ouimette raised the issue of including
solar with Fred Miller, owner of Miller Construction, which was hired to build
both facilities.
“The solar thermal systems we’re installing will last 30 to 40 years,” Ouimette
adds. “We told Fred he should be able to recoup about 50 percent of the
up-front costs through state and federal tax credits.”
Miller asked for a site assessment, covering system size, total cost, rebate
and payback. Ouimette pegged the system cost at $57,600. Tax incentives shrunk
the number down to $27,720. Over the next five years, the building owner would
also be able to depreciate $17,000 of the $27,700 net investment.
“So it came down from $57,000 to almost $10,000 in up-front costs to install
the solar thermal system,” Ouimette says.
The Colby home uses 16 4-foot by 10-foot thermal panels as a backup to the
condensing boiler system. The last time we spoke to Ouimette, he told us there
was some discussion about installing thermal panels on the other nursing home.