Making energy at home

Getting "off the grid" isn't just for back-to-the-land types
anymore. Rising fuel prices and environmental awareness
have made many of us obsessed with clean energy.

So does all this talk of green tech mean you can unplug from the utilities and still stay connected to the 21st century?

The short answer is no. But, there are many options to reduce your energy consumption at home and to tap the sun and wind to make some of your own.

Solar
The most dramatic green gesture you could make as a homeowner is to plop solar panels on your roof. It's a visible way of saying that you have joined Ed Begley Jr. and other eco-conscious folks.

But solar may not only be for the eco-elite much longer. In a few years, solar energy could be far more commonplace simply because it makes economic sense.

For some, the return on investment for solar already looks good, particularly in light of rising fossil fuel prices and new financing options.

There are two paths you can take to solar energy: hot water or electricity. Solar photovoltaic (PV) panels that generate electricity are more high-tech and sexy, but solar hot water is the low-hanging fruit.

In a solar hot water system, sun-facing panels or evacuated tubes heat up a liquid that then warms a tank of water.

You keep your existing hot water system. But now it uses the water that was pre-heated by the panels, which means you consume a lot less energy to run the dishwasher.

Depending on how much water you use and how good your sun "resource" is, a system could pay for itself in 7 to 10 years. In the meantime, you could whack two-thirds or more off your hot water bill. Cost: roughly $7,000 to $10,000 before incentives.

Option No. 2 is solar PV panels, which nudge out hot water heaters on geek appeal, but cost more.

Most PV panels have solar cells made out of expensive silicon. To have them installed, you're going to pay $20,000 to $35,000. State, federal or even city (notably San Francisco) incentives can lower that by about a third or a half. Still, that's a big up-front cost.

The good news is that traditional silicon cells are getting more efficient and alternative materials like CIGS (a combination of copper, indium, gallium, and selenide), which can be integrated into roofing shingles, are becoming viable.

Many analysts expect that today's silicon shortage will give way to a glut in two or three years that will lower prices further and make solar more affordable.

Like many solar industry executives, Thomas Werner, CEO of panel and cell maker SunPower, has set a target of lowering the installed cost of solar PV panels 50 percent by 2011.

Perhaps more significant in the near term is the growing number of financing possibilities. Solar panel installers, including SolarCity, GroSolar, and SunRun, now offer leasing options in states with the best subsidies while Clean Energy Finance is developing a solar lease program.

So instead of footing the entire price at once, a consumer pays a fee and then leases the panels with a monthly charge. SunRun says that these programs can reduce the initial cost by about 60 percent and lower a home's monthly electricity bill.

For example, San Francisco customer Chris Clark said recently the leasing program with SolarCity will reduce his monthly bill about 40 percent.

State financing programs are worth exploring: Massachusetts offers zero-percent financing on renewable energy investments and Connecticut has a solar leasing plan for low-income households.

To get a read on whether solar works for your dwelling, there are a few new services including RoofRay and Sungevity, which will give you a quick idea of whether it's worth pursuing.

Ultimately, solar panels will pay for themselves. How long it takes will depend on your rebate structure, financing options, and how fast electricity rates go up.

Wind
For people who don't have great sun exposure and want to generate clean energy, the wind is a tantalizing source. Once again, how good your fuel is--in other words, how well the wind blows--makes all the difference.

Often wind turbines are used for remote locations that aren't connected to the power grid. But like the solar industry, the "grid-connected" business is the fastest growing segment.

There are a growing number of small wind turbines being developed, including Southwest Wind Power's Air Breeze and Mariah Power's vertical axis turbine.

But for homeowners, the picture on wind is a little less rosy than the more-developed solar scene, in large part because of costs and subsidies.

As a rule of thumb, a small wind turbine--defined as less than 100 kilowatts--needs an acre of open land and a suitable wind resource, according to the American Wind Energy Association. (Click for PDF on a "small wind" study.) In general, turbines need to be higher than any structures or trees around it.

Those siting requirements are not set in stone. About half of small wind turbines installed in 2006 were in urban or suburban areas.

But the financial return of small turbines, which cost as little as $4,000 before installation, in less-than-optimal spots will not be as attractive. Also, small wind turbines in densely populated areas have been criticized by neighbors who complain about shadows, noise, and the visual impact.

Still, small wind can play a significant role in the energy mix, particularly in rural areas.

A recent report by the Carbon Trust said on-site wind generation could be used in 10 percent of British households, particularly in rural locations where wind energy could be cheaper than the grid.

Interestingly, the analysis also found that roof-mounted turbines may not pay back the carbon emissions embedded in their manufacturing.

Community
If you've done a home energy audit, bought efficient appliances, and exhausted your home wind and solar options, you can still act locally when it comes to energy.

There are a number of grass-roots clean-energy efforts. One Block Off the Grid, for example, is trying to organize group purchases of solar panels to lower the costs.

Municipal-owned electricity companies, such as the one in Hull, Mass., have installed wind turbines that serve their towns or regions.

And larger organizations, such as municipal buildings and schools, can be good candidates for small wind or solar panels.

What readers think about hybrid cars

More on green tech from CNET.com

• Green tech powers forward
• Driving It: Why hydrogen will fuel future cars
• Driving It: Your clean, green car choices
• Hybrid car buying guide
• Video: The ups and downs of green building
• Video: Honda goes green three new ways
• Shrink your next energy bill
• Trash your old tech--the green way
• Recycling your phone
• The cleanest cars you can buy
• Using solar to keep homes cool