The Future’s So Bright…

By Bob Nieman | Jun 01, 2009

You can rent your energy – or you can own it.

So says Brandon Leavitt, owner of Solar Service, a Chicago-area-based company that designs and installs solar heating, hot water and electric systems.

“Sunshine is falling on the property,” explained Leavitt, who founded the company in 1977 and has since installed more than 1,000 solar systems, including a number of them in self-service laundries in and around the greater Chicagoland market. “You can let it go to waste or harvest it. If it was dollars falling out of the sky, would you collect them? Sunshine is very valuable and converting it to hot water is about as simple as any technology available.

“Solar technology is simpler, easier, more reliable, more dependable and more affordable than the alternative, which is boilers and a standard hot water heater,” he added. “And you have a competitive advantage if you can produce hot water for less money than anybody else.”

A competitive advantage is exactly what one coin laundry owner in Canada went searching for earlier this year.

For Kingston, Ontario, laundry owner Paula Loh, switching her water-heating system to solar power had to make business sense, as well as pay environmental dividends. And, having crunched the numbers more than once, Loh now expects that when the seven solar panels on the roof of Surf's Up! Laundry begin heating the water going into her 30 washing machines, her laundry business will have a leg up on the rest of the stores in town and the surrounding marketplace, according to a report in the Kingston Whig-Standard.

"My goal is to at least break even and cover the costs in the long run," she said. "I think from an environmental point of view, you have to try, but I'm not going to do it if it costs me money."

Loh’s solar system was designed and installed by Quantum Renewable Energy of Kingston, Ontario. Quantum's business development director, Rosemary Donaldson, noted that Surf's Up! is the first self-service laundry in Kingston – and just one of a handful across the province, in fact – to make the conversion.

"Definitely, it is forward-thinking," Donaldson said. "A lot of people are cautious. They don't like to change the way they're doing business."

In fact, Loh's decision was about four years in the making. When she was approached by Quantum at that time, she had just completed a major renovation and expansion of the business and couldn't afford to make another major investment.

However, the company had recently invited her to tour an apartment building that features one of their latest solar water heating systems.

"As time passed, I knew the laundromat expansion was successful,” Loh said. “Also, during that time, the government grant situation improved."

Loh found out that she was eligible for a grant of more than $9,000 on the $23,658 system. By the eighth year, it should have paid for itself, based on a reduction in the store’s natural gas use. What’s more, over 25 years, the system is expected to save a total of $73,922.

Donaldson said those figures will likely turn out to be conservative.

"Just about every one of our customers has gotten 20 percent more," she explained.

Over the last two years, Quantum has installed 15 commercial solar water heating systems, along with another 150 in private homes.

Where the environmental ledger is concerned, the investment at Surf's Up! was a no-brainer for Loh. She will immediately start eliminating 4.31 tons of carbon dioxide emissions a year. Of course, carbon dioxide is one of the compounds that traps greenhouse gases in the atmosphere and is said to contribute heavily to global warming.

All of these savings are expected to be realized with Loh’s solar heating system only working 25 percent of the time. Surf's Up! uses just over 1,300 gallons of hot water a day. The solar system, with its minimal amount of storage capacity, will only work at 100 percent efficiency during the daytime when it's sunny. On rainy days and at night, the gas heating will kick in.

"Laundromats are great uses for solar hot water," said Quantum co-owner Rick Rooney, who added that he hopes other similar businesses, such as car washes, will begin to take a closer look at this technology.

"People tend to wash their cars on sunny days," he reasoned.

There were some snags along the way to the recent conversion at Surf's Up!. Because Loh leases her space in the strip mall, she first had to receive permission from her landlord to allow the 32-square-foot panels to be installed.

"Fortunately, his wife is environmentally conscious,” she said. “She kind of gave him the nudge for him to give the approval, maybe a little faster than he would have.”

And, on the marketing side of the business, Loh is already putting her new eco-friendly status to good use. Many of her customers are staff members, faculty and students at Queen's University in Kingston, so she has placed advertisements in the on-campus Gazette newspaper to spread the news.

"They're more aware of the environmental aspects at Queen's," she explained.

Back in the United States, Tom Benson, owner of the World’s Largest Laundromat in Berwyn, Ill., weighed the warm and fuzzy environmental benefits of tapping into solar power for his laundry business, versus how it would affect his cold, hard return on investment years ago. And Benson, who tapped Solar Service to install his system, has given solar technology a thumbs-up on both accounts.

"It's such a good idea business-wise and conservation-wise that they should make it the law," states Benson on his Web site. “The gas crisis of the winter of 2001 created an energy cost crunch that made me look for an alternative. Solar was by far the best way to go. Despite gas prices going up, my solar hot water system will enable me to maintain lower prices for my customers.”

The World’s Largest Laundromat’s solar system was originally installed in November 2002, and then replaced for the store’s 2006 reopening after a fire destroyed the business.

The current system features 36 panels, each 4 by 10 feet. The 13,500-square-foot mega-laundry features three 200-gallon storage tanks. The system is designed to produce more than 2,400 gallons of hot water daily, at an average temperature of 120 degrees; annually, that’s more than 600,000 gallons of hot water.

Solar Energy Basics

The sun's heat and light provide an abundant source of energy that can be harnessed in many ways. There are a variety of technologies that have been developed to take advantage of solar energy. These include concentrating solar power systems, passive solar heating and daylighting, photovoltaic systems, solar hot water, and solar process heat and space heating and cooling.

Solar power can be used in both large-scale applications and in smaller systems for the home. Businesses and industry can diversify their energy sources, improve efficiency and save money by choosing solar technologies for heating and cooling, industrial processes, electricity and, of course, water heating. Homeowners can also use solar technologies for heating and cooling and water heating, and may even be able to produce enough electricity to operate "off-grid" or to sell the extra electricity to the utilities, depending on local programs. The use of passive solar heating and daylighting design strategies can help both homes and commercial buildings operate more efficiently and make them more pleasant and comfortable places in which to live and work.

Beyond these localized uses of solar power, utilities and power plants are also taking advantage of the sun's abundant energy resource and offering the benefits to their customers. Concentrating solar power systems allow power plants to produce electricity from the sun on a larger scale, which in turn allows consumers to take advantage of solar power without making the investment in personal solar technology systems.

Solar power technologies, from individual home systems to large-scale concentrating solar power systems, have the potential to help meet growing energy needs and provide diversity and reliability in energy supplies.

Solar Hot Water

Capturing and storing the sun's energy with solar heating systems is simple. Solar collectors, covered by tempered glass, trap the sun's heat in the same way a closed car is heated when it sits in the sun. The collectors work effectively all year long.

The system switches on when the collector is hotter than the solar storage tank. Water or anti-freeze is heated as it is pumped through copper tubes in the collector. A heat exchanger transfers this heat to the storage tank.

Solar heated water in the storage tank can be used immediately or later for daily hot water needs. Solar systems work automatically with existing heating equipment. A furnace coil allows solar to provide warm air heat as well as hot water. Solar can also heat pools, hot tubs and radiant floors.

For solar hot water systems, flat-plate solar collectors are typically installed facing south on a rooftop.

The shallow water of a lake is usually warmer than the deep water. That's because the sunlight can heat the lake bottom in the shallow areas, which in turn, heats the water. It's nature's way of solar water heating. The sun can be used in basically the same way to heat water used in buildings.

Most solar water heating systems for buildings have two main parts: a solar collector and a storage tank. The most common collector is called a flat-plate collector. Mounted on the roof, it consists of a thin, flat, rectangular box with a transparent cover that faces the sun. Small tubes run through the box and carry the fluid – either water or other fluid, such as an antifreeze solution – to be heated. The tubes are attached to an absorber plate, which is painted black to absorb the heat. As heat builds up in the collector, it heats the fluid passing through the tubes.

The storage tank then holds the hot liquid. It can be just a modified water heater, but it is usually larger and very well-insulated. Systems that use fluids other than water usually heat the water by passing it through a coil of tubing in the tank, which is full of hot fluid.

Solar water heating systems can be either active or passive, but the most common are active systems. Active systems rely on pumps to move the liquid between the collector and the storage tank, while passive systems rely on gravity and the tendency for water to naturally circulate as it is heated.

Solar System Challenges

This is not to say that every self-service laundry location will always be a perfect fit for this type of solar technology. Solar Service’s Leavitt listed a few roadblocks that some laundry owners may face.

“It helps if you own the building, not lease it,” he explained. “Also, it helps if there is room in your laundry’s mechanical room for additional storage – and quite often with coin laundries, there isn’t. The biggest problem usually is that there isn’t enough room for us to install our holding tanks. That’s the biggest hurdle.”

With a conventional water heater, Leavitt explained, you need about an hour’s worth of available hot water; however, a solar system typically will collect 24 hours’ worth of hot water in four hours, and that water needs to be held onto. Therefore, more storage space is required.

“In several coin laundries, we built backup systems to take up a smaller footprint and be more efficient,” Leavitt explained.

The other obvious hurdle for many laundry owners is the upfront cost of such a system, which can run well into the mid-five-figure range.

Solar FAQs

Here are some frequently asked questions that many laundry owners have when considering adding solar technology to the mix, according to Solar Service:

What is the difference between solar thermal (heat and hot water) and solar photovoltaic (electricity) systems?

Solar thermal systems produce heat for hot water and living spaces, while solar electric systems produce electricity. Solar thermal works well with your existing natural gas or electric:

• Hot water heater.
• Forced air furnace.
• Radiant floor boiler.

Solar thermal systems have been available commercially for well over 100 years. This is a relatively simple and highly efficient technology that absorbs the heat from the sun that would otherwise be wasted.

Solar electric systems (photovoltaic or PV systems) produce electricity. This is a more complicated technology than solar thermal because it converts sunlight into electricity. Increasingly, solar electric systems are being connected to the power grid. If the system produces more electricity than is being consumed, it can be sold to the electric company and your electric meter can spin backwards. If the system is producing less electricity than is being consumed, electricity will be supplied from the grid.

Many solar thermal systems have a payback period of six to 12 years, once state and federal incentives are applied. At the moment, PV systems have a longer payback period. This could change as electricity rates increase in certain states and solar electric technology decreases in price.

What are the benefits of installing a solar system now?

• There are several possible funding sources available for commercial systems, including state grants and significant federal tax credits. For instance, effective January 1, 2009, the IRS allows a 30 percent federal tax deduction for both solar thermal and solar electric systems. These credits can be deferred if you are unable to take advantage of them in the year you purchased your system. All calculations are made net any state or grant funds that may apply. In addition, businesses are eligible for an accelerated depreciation schedule allowing for 85 percent of the value to be depreciated over a five-year period. This federal program is legislated until 2015.

• After heating, hot water is the second biggest natural gas expense, and you use it every day – all year long.

• This clean energy source reduces greenhouse gases that contribute to global warming.

• Most system requires no regular maintenance.

• Solar systems can extend the life of your current water heater and furnace by reducing their workload.

• Solar system can provide positive publicity for coin laundry business.

What happens if it is cloudy for several consecutive days? Will I still have heat and hot water?

With a solar thermal system, you’ll always have heat, you’ll always have hot water – you’ll just pay less it. Solar systems work in partnership with your existing furnace and water heater. They heat the water going into your hot water tank.

Will a solar system work with an on-demand (tankless) hot water heater? Is it a good application for solar?

An on-demand water heater still uses the same amount of energy to heat your water, it only eliminates the standby heating losses and inefficiencies caused by conventional water heaters. You still have to pay for the energy to heat your water. Solar is compatible with many on-demand hot water heaters. For it to be compatible with solar, the unit must be able to detect the temperature of the intake water.

What is the cost of a solar thermal system?

The cost depends on the configuration of your roof and the hot water and heating demands on the system. Many hot water systems can provide hot water seven out of every 10 days. As an example, the typical residential solar thermal system that provides only hot water for four people will cost approximately $5,000, after state and federal incentives. A typical four-panel residential system that provides both heat and hot water will cost about $11,000 to $12,000, after state and federal incentives. Commercial systems have even more federal incentives available and vary greatly in price due to size and application.

As gas and electricity prices rise, the return on investment increases and the payback period shortens. Solar savings are also tax-free, unlike most other investments. Overall, residential solar hot water will have an estimate payback period of six to 12 years, and solar heat and hot water systems will have a payback period of seven to 14 years. On commercial buildings, the payback is faster because of additional federal tax incentives. Of course, the payback period depends on energy costs, but typically gas and electricity aren’t going to go down in price.

“With coin laundries, we size a system for gallons of hot water per day,” Leavitt said. “A 700-gallons-a-day system would cost about $60,000.”

Can businesses benefit from a solar thermal system?

Businesses that use large quantities of hot water can experience dramatic cost savings by going solar. Self-service laundries, as well as apartment buildings, restaurants, factories and hotels, are all examples businesses that would do well to investigate the potential of installing a solar system. Many of these businesses, including laundromats, use the majority of their hot water when the sun is shining and are, therefore, ideal for solar.

As discussed, exceptional state and federal incentives exist for commercial applications of solar technology, including a 30 percent federal tax credit, and an 85 percent tax write-off. Solar offers laundry operators the opportunity to reduce the business risk associated with rising energy costs. Furthermore, many businesses can benefiting from the positive publicity and media coverage that solar systems seem to generate, particularly as the concern about global warming heightens.

How much maintenance is required on a solar thermal system?

Solar technology is simple, fully automatic and requires no regular maintenance for 20 to 30 years. It is possible that you may need a service call over that time, according to Solar Service – but there is no need to change the fluid, clean the panels or oil the pumps.

“There is no maintenance,” Leavitt said. “We suggest that you look at it every five years or so after the first year, but there is no regular maintenance. The solar panels will live 50 to 100 years. After all, how long are glass, copper and aluminum going to last?

“The storage tanks are another story,” he added. “The tanks eventually go bad because water is aggressive. However, we heat water much more gently than conventional tanks, so we expect to get 50 percent to 100 percent longer life out of them than with a regular water heater. So, in maybe 25 to 30 years, you’ll need a new storage tank, but you’re going to need one anyway. And we install them on the roof to allow for continuous roof maintenance without having to remove any solar panels.”

How does solar heating work on northern climates? Doesn’t it make more sense in Florida or southern California?

This isn’t necessarily true. In fact, according to a benchmark U.S. Department of Energy study, the Chicago area has as much usable sunlight as Atlanta or Los Angeles. Moreover, Illinois is the fifth largest market for solar heat and hot water in the country.

Solar technology works regardless of whether the outside temperature is cold or hot. Certainly you’ve noticed that on really cold days the sky is often the clearest. These days are perfect for solar heating.

A perfect example of this type of system flexibility has been recorded on the World’s Largest Laundromat’s Web site: “On Feb. 20, 2003, the outside temperature was 32 degrees, otherwise known as a beautiful and mild winter day in Chicagoland. The cold water inlet from the city was at 36 degrees. The solar collector temperature was at 111 degrees. And the solar hot water temperature sent to the main water heater was 107 degrees.”

Since time began, the sun is the most abundant source of energy available on our planet. For thousands of years humans have depended on solar energy to warm their homes. Homes were sited to take advantage of natural solar heating. However, since the Industrial Revolution, fossil fuels such as coal, oil and natural gas have been used in place of solar power. But, as most laundry owners are aware, fossil fuels are increasingly expensive, dirty and difficult to extract. Today, millions of people throughout the world are using solar energy to heat their homes and water and generate electricity. And more and more are using it to power their businesses.

Solar energy is a clean, pollution-free power source. Everyone benefits when we use this clean energy from the sun instead of fossil fuels. By using solar, we protect the environment for ourselves and for future generations. Solar energy allows you to dramatically cut down on the fossil fuels you burn every day.

For example, a typical four-person household can reduce its carbon dioxide emissions by nearly 2.5 tons annually with a four-panel heat and hot water system.

Of course, businesses can save significant amounts of energy, too. At Tom Benson’s store just outside of Chicago, the solar hot water system saves 1.4 million BTUs of natural gas each day – as well as 29 tons of carbon dioxide emissions each year.

“The future is hot,” Leavitt quipped, with a laugh. “It’s also very bright.

“It’s a matter of educating the laundry owners to what’s available. The biggest roadblock isn’t so much interest. Once they understand that it’s affordable and payable – and that they’re going to pay for it whether they install a solar system or not – they’re interested. You can have solar technology or not, but you’re going to pay for energy anyway. So why not have a system? Basically, you’re buying your energy at a fixed cost forever, as opposed to an unknown cost that fluctuates.”