You are here: News - Local

Published: Monday, Dec. 13, 2010

Updated: 1:00 am Monday, Dec. 13, 2010

Rooftop solar panels a renewable investment for businesses

More companies — especially wineries — and other organizations are putting up rooftop panels to save cash, but the price tag is still too high for some in a struggling economy

tool name

close
tool goes here

Widespread adoption of rooftop solar is hit-and-miss. Costco in San Luis Obispo, for example, has covered its entire roof with panels, while Home Depot next door has none.

| dsneed@thetribunenews.com

For Jim Judd, installing rooftop solar panels at his San Miguel winery, J&J Cellars, was strictly a matter of mathematics. He had 144 panels installed on the roof of the barrel storage room Aug. 1. They will provide enough energy for both the tasting room and the production of the wine and save him an estimated $25,000 a year on electricity costs.

“Longterm, it’s the kind of decision you have to make,” he said. “It’s done everything I hoped it would.”

Although the biggest growth in rooftop solar is in the residential market, an increasing number of businesses, schools, churches and nonprofits are installing solar panels. Forty-two nonresidential solar systems have been installed in the county since 2007.

Their reasons are the same as homeowners’ — saving on energy costs and reducing their impact on the environment.

Wineries, in particular, are turning to solar power, even though the economy is struggling, said Kristian Emrich, vice president of Solarponics, the Atascadero company that installed Judd’s system.

“They (wineries) have been one of the hardest-hit industries in this economy, but we have seen a resurgence within the last six months of wineries going solar,” he said.

There are several reasons for this, Solarponics President Mike Emrich said. The main one is that wineries are investing heavily in a green image.

While wine grapes are the biggest component of the county’s agriculture and a popular tourism draw, they also have their environmental costs. These include using scarce ground water for irrigation and displacing wildlife habitat.

“They are trying to be as sustainable and conservation-minded as possible,” said Mike Emrich, Kristian’s father.

Wineries also rely heavily on electrical equipment, particularly during the fall harvest, so the savings a solar panel system can bring are significant.

Wineries have an advantage. Their large, low buildings often sit exposed to the sun in the middle of vineyards.

Judd used a little foresight and constructed his winery buildings so that their roofs face the sun. He’s now ready to install 20 to 50 percent more panels.

The solar incentives for businesses are similar to those available to homeowners — an upfront state rebate coupled with federal tax credits.

Businesses have an additional incentive option of accelerated depreciation.

Tax laws often allow a credit or deduction based on the expectation that an asset declines in value over time. But typically, that tax break has to be spread out over the course of a few years.

Accelerated depreciation allows businesses to get the tax benefit on solar panels upfront and helps cover the cost of the investment, Emrich said.

And it’s not just businesses. The San Luis Coastal Unified School District has announced plans to install carport-like structures with solar panels on top of them at campuses.

The district estimates it could save from $6 million to $8 million in energy costs over the next 20 years. Some trees in parking lots would have to be removed.

But businesses also face obstacles to going solar. Credit is hard to get, and the 30 percent federal tax credit is of little use to a business that is making little or no money because of the recession.

“A lot of businesses don’t have the revenue to pay for solar,” Mike Emrich said.

And again, there’s the expense. Tolosa Winery recently installed ground-mounted solar panels at its San Luis Obispo and San Miguel vineyards, costing $3 million and $6 million, respectively.

The winery expects to take six and a half years to pay for that investment using accelerated depreciation and electrical savings.

“It makes sense to use the clean, renewable resource of the sun to power our business,” said Bob Schiebelhut, Tolosa Winery co-owner.

Another factor that businesses take into consideration when installing solar is selecting a vendor. Judd liked Solarponics’ reputation.

The company has been in business since 1975 and is the longest continually owned and operated solar company in the state. During that time, Judd has seen many ups and downs in renewable energy.

“Thirty-five years later, solar is still a fringe business,” he said.

About comments

Reader comments on SanLuisObispo.com are the opinions of the writer, not The Tribune. If you see an objectionable comment, click the "report abuse" button below it. We will delete comments containing inappropriate links, obscenities, hate speech, and personal attacks. Flagrant or repeat violators will be banned. See more about comments here.

What you should know about comments on SanLuisObispo.com

SanLuisObispo.com is happy to provide a forum for reader interaction, discussion, feedback and reaction to our stories. However, we reserve the right to delete inappropriate comments or ban users who can't play nice. See our full terms of service here.

Here are some rules of the road:

  • Keep your comments civil. Don't insult one another or the subjects of our articles. If you think a comment violates our guidelines click the "report abuse" button. Responding to the comment will only encourage bad behavior.
  • Don't use profanities, vulgarities or hate speech. This is a general interest news site. Sometimes, there are children present. Don't say anything in a way you wouldn't want your own child to hear.
  • Do not attack other users; focus your comments on issues, not individuals.
  • Stay on topic. Only post comments relevant to the article at hand. If you want to discuss an issue with a specific user, click on his profile name and leave him a public message.
  • Do not copy and paste outside material into the comment box.
  • Don't repeat the same comment over and over. We heard you the first time.
  • Do not use the commenting system for advertising. That's spam and it isn't allowed.
  • Don't use all capital letters. That's akin to yelling and not appreciated by the audience.

You should also know that The Tribune does not screen comments before they are posted. You are more likely to see inappropriate comments before our staff does, so we ask that you click the "report abuse" button to submit those comments for moderator review. You also may notify us via email at webmaster@thetribunenews.com. Note the headline on which the comment is made and tell us the profile name of the user who made the comment. Remember, comment moderation is subjective. You may find some material objectionable that we won't and vice versa.

If you submit a comment, the username of your account will appear along with it. Users cannot remove their own comments once they have submitted them, but you may ask our staff to retract one of your comments by sending an email to webmaster@thetribunenews.com. Again, make sure you note the headline on which the comment is made and tell us your profile name.

Our news, your way

Get breaking news on your cell phone

Sign up for breaking news alerts from SanLuisObispo.com and get the latest news sent to your cell phone via text message.

Type in your cell phone number

( ) -

I accept the terms and conditions (click to view)

Keep your phone handy!

Upon hitting the Sign up! button, you will receive a message with a four-digit code at the end. Enter this number on the next screen and press the Confirm button.

Terms and Conditions:

By signing up for alerts from this site, you are signing up for a program that may include up to 5 SMS text alert(s) per alert category per day. There is no service fee charged per month but your carrier's standard text messaging and other charges may apply. You may stop this subscription service at any time by sending the text message "STOP" to 72737. You must be at least thirteen (13) years of age to use our alert services. If you are between 13 and 17 years old, you agree that you have received parental permission both to complete the registration process and to receive SMS content on your cell phone. For help, send the text message "HELP" to 72737. This service will work with ATT, Verizon, Sprint, Nextel, Alltell, US Cellular, Cincinnati Bell, Boost, Virgin Mobile USA, Celluar South, Telos, Centennial, East Kentucky Network, Cellcom, Immix and Rural Celluar.

Quick Job Search
Top Jobs