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Politics : Rat's Nest - Chronicles of Collapse -- Ignore unavailable to you. Want to Upgrade?


To: Wharf Rat who wrote (4503)7/31/2006 12:38:58 PM
From: Skywatcher  Read Replies (1) | Respond to of 24246
 
Sun Brightens Colors, Profit at Laundromat
Using solar energy to run the huge facility was more a business than an environmental decision.
By Michael Tarm, The Associated Press
July 31, 2006

BERWYN, Ill. — One of Tom Benson's claims to fame, announced in 5-foot letters across his storefront, is that he owns the "World's Largest Laundromat," complete with 153 washers, 148 dryers and 15 flat-screen TVs.

But that's not the claim that excites advocates of renewable energy. It's that, perched atop the airplane hangar-size facility in this working-class Chicago suburb, is one of the largest, most cost-effective solar systems in the country.

ADVERTISEMENTScaling a ladder to the scorching roof one recent morning, the 61-year-old Benson beamed with pride as he showed off the 36 10-by-4-foot panels that supply his laundry with hot water.

Benson's boast about having the largest coin-operated laundry on Earth might be open to debate. At least one laundry in Denver claims to have a few more washers and dryers, though Benson hastens to add that it seems to have less floor space than his.

What's not in doubt is that his $150,000 hot water system has become a darling of environmentalists and officials smitten with the solar promise, heralded as a prime example of how practical, simple and cost-wise the energy source is.

"The World's Largest Laundromat has served as a role model," said Illinois Lt. Gov. Pat Quinn, a solar advocate. "It's shown that solar can work in the Midwest climate, in the heartland."

To the chagrin of such advocates, however, fewer than 5% of the 40,000 coin-operated laundries nationwide use solar, according to the Coin Laundry Assn., which represents nearly 3,000 companies in the $5-billion industry.

Benson converted from natural gas to solar in 2001, two years after buying the laundry. The motivation, he said unapologetically, was pure dollars and cents.

His heating bills were climbing as high as $13,000 — the equivalent of 25% of his total monthly revenue.

"There was just no way I could survive if that continued," he said. "I was looking at a very dire situation."

At a meeting where laundry owners vented about energy prices, someone mentioned solar. Illinois was offering grants to pay 50% of the cost of solar systems; Benson applied, got the grant and had a system running within months.

His bank, to his surprise, didn't hesitate to loan him the needed money. "When I showed the numbers to my bank, they understood immediately," he recalled. "It was like, boom, 'Here's the money. Go for it.' "

His dream of a profitable, energy-efficient laundry seemed to shatter on Aug. 29, 2004, when a spark from a dryer started an inferno that destroyed the premises.

But instead of cutting his fire losses — $1.6 million — and quitting, Benson vowed to rebuild. To make the laundry more customer friendly, he fashioned a play area for kids and added an indoor aviary, featuring miniature doves.

He also upgraded the solar system — again with state aid — in time for the 24-hour laundry's reopening early this year.

Benson calculates that his $150,000 system saves him $25,000 annually, so it should pay for itself in about five more years. To boot, he expects it to remain operational for at least 20 years.

"I figure that when they plant me in the ground, one of my sons will run this place," he said. "I wouldn't be surprised if, 30 years from now, this laundromat and this solar system is still working."

The technology is so simple, requiring what Benson calls laughably low maintenance, he's perplexed about why it isn't embraced by more businesses.

"None of my competitors within a several-mile radius are doing this," he said. "It's a shame."

Since laundries depend on hot water, its bottom line can be greatly affected by its energy efficiency, said Michael Sokolowski of the Coin Laundry Assn.

But the cost of solar systems dissuades many laundries, most of which are about one-fifth the size of Benson's business and have annual revenue under $200,000, he said.

"Continuing increases in energy costs would get more to [install] it, and so would better efficiencies for solar systems — especially systems made for smaller laundries," he said.

Benson, who has degrees in philosophy and business administration, said he could have made his operation even more environmentally friendly, say, by adding biodegradable floor tiles. But in scrutinizing the bottom line, he said, that would have been too costly.

"A lot of times the environmental stuff … ends up costing you money," he said. "People aren't going to do it if it costs more."

His solar setup, though, has virtually no downside, he argued. "This happens to be one of these wonderful cases where the idea works on every level," he said.

His reliance on solar also engenders loyalty among his customers, most of whom are Latino, many of them poor.

Their reaction has tickled him more than anything.

"Many people here have come up to me and said, 'Thank you for helping the environment. Thank you for going solar,' " Benson said.



To: Wharf Rat who wrote (4503)7/31/2006 12:39:30 PM
From: Skywatcher  Read Replies (1) | Respond to of 24246
 
New reasons to soak up the sun
With air conditioning running around the clock and electric bills doubling, there's fresh incentive for homeowners to consider solar energy.
By T.J. Sullivan, Special to The Times
July 30, 2006

FOLKER KORTE racked up $21,000 worth of energy-saving upgrades to his single-story, three-bedroom home in San Pedro last year but only spent $9,000.

Plus, he didn't have to fork over the full amount for the several rooftop solar panels and then wait for a rebate. Korte paid for his portion, and his contractor obtained the balance from the Los Angeles Department of Water and Power through its Solar Incentive Program.

ADVERTISEMENTThat's only the beginning. Korte was also eligible for up to $2,000 in federal tax credits. His electricity bill has dropped from a monthly average of $90 to $30. And, as the price of oil soars, the solar panels increase the appeal and value of his home.

The costs of eco-renovations such as solar energy systems, insulation and energy-efficient appliances are more than offset by the resulting increase in market value to the home, experts and studies say. Some realty agents even use energy-saving attributes in their marketing pitches, listing a home's solar distinction alongside the swimming pool and spa.

For every $1 saved in annual utility costs, analysts have suggested that a $20 increase in home value results. Following this formula, Korte's utility bill savings of $60 a month or $720 a year would result in an increase in the value of his home by more than $14,000. Not bad for a $9,000 out-of-pocket expense.

A consumer survey conducted in May by Sharp Electronics Corp. found that 64% of the 1,004 polled said they'd be willing to pay more for a home with a solar-power system.

Alan Black, a solar financial analyst in San Jose and a member of the board of the American Solar Energy Society, says homeowners often find that the savings on the electric bill offset the loan payments sometimes necessary to finance a home improvement like solar, which can cost $16,000 to $20,000, or more, before rebates.

In years past, some homeowners have steered clear of energy-saving improvements because they didn't intend to stay in the home long enough to recoup the investment through utility-bill savings. However, that mind-set may change if a slowing housing market and rising oil prices reveal that homes with energy-saving features sell faster and at higher prices.

Much the same way that greater numbers of drivers have begun to seek fuel-saving hybrid vehicles, real estate agents say they are seeing more buyers concerned with energy efficiency.

"Twenty years from now, if it's not solar, it's going to be a fixer," said Donna Benton, a real estate agent with Re/Max Westside Properties in Santa Monica. "I just sold one in Encino and we made it part of the marketing: 'Solar pool and solar spa.' "

Lori McGuire, an agent with Re/Max Real Estate Services in Dana Point, also emphasized energy savings when advertising a solar home she sold 18 months ago. "The first line was 'Save costs with solar energy,' " said McGuire, who's been an agent for 21 years. There's even a category in the Multiple Listing Service where you can search for homes with solar energy, she added.

Ellen Mackey, who lives in a 1950s ranch house in Sun Valley, was thinking solar when she went shopping for a home, insisting on one with good southern rooftop exposure to the sun; about 200 square feet of unshaded rooftop is necessary.

After purchasing the home, her first step toward reducing her energy costs was to take out all the incandescent light bulbs, replacing them with fluorescent. Mackey installed Solatubes, which deliver sunlight to ceiling-mounted skylights, cutting down on the need for electric light during the daytime. And she tinted her windows to help keep out the heat. Then in 1998, the Department of Water and Power approached her about installing solar panels on her rooftop as part of a demonstration project.

Together, the improvements have helped Mackey cut energy consumption so much that she uses only as much power as the solar panels produce. The panels further keep the house cool by insulating a large portion of the rooftop from the sun.

The downside for Mackey is that she doesn't own the panels, so the L.A. department owns the energy they produce. As a result, Mackey still has to pay an average monthly electricity bill of $40. But, when the demonstration period ends, Mackey plans to purchase the panels from the department, and then, she says, her monthly electricity bill will disappear. If the system ends up generating more power than Mackey uses, Water and Power would send her money, instead of an invoice.

Mackey emphasizes that point when solar-curious visitors wander through the 1,795-square-foot house each October as part the Eco-Home Network's solar home tour. "When they see the bills," Mackey said, "they get pretty excited."

Rebates and utility savings aside, the upfront costs of making improvements can still be daunting. An incentive may cut the cost of a solar energy system in half, but that half can still amount to more than $10,000.

Many lenders recognize that, and have created programs to encourage homeowners to borrow the money.

Manufacturer BP Solar suggests consumers consult solar dealers about financing options. BP also provides a "solar savings estimator" on its website at bpsolar.us to help consumers calculate potential savings on their electric bills.

Among the lender programs intended to encourage energy-saving home improvements is Fannie Mae's 10-year energy loan. Other financing options are explained at the California Energy Commission's Consumer Energy Center (www.consumerenergycenter.org.