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October 10, 2009

Area homeowners turn to energy alternatives

The average homeowner struggles to keep warm, go green and still keep money in his or her bank account. Should we invest in solar or geothermal heating systems? Burn oil, wood or the various biomass pellets available for home heating? In today's economic climate, consumers have to think of the bottom line. Fortunately, there are many incentives and products to choose from that will ensure consumers spend less on heating if they invest wisely and do their homework.

Less money to burn

Last week, the New York State Energy Research Development Authority reported that oil heat cost an average of $2.57 per gallon in New York state. While this is better than the $4-plus per gallon consumers were paying last year, it still is costlier to heat homes with oil than wood or biomass pellets.

A cord of wood costs between $200 and $250, grass pellets cost roughly $225 per ton and soft wood pellets go for $235 per ton. The average consumer in the area may spend $1,000 or more per month for home heating oil during the winter. Area residents who use wood or pellet stoves spend one-quarter of that.

According to May Miller, owner of Enviro Energy LLC, a Unadilla-based grass and wood pellet manufacturer, 17 pounds of pellets equals one gallon of oil, or roughly $2.04 for pellets compared to $2.60 per gallon.

See HEAT on Page A2

May, along with her husband Robert, son Michael and daughter-in-law, Marylou, started the company last year. The family, Delaware County residents and lifelong dairy farmers, decided to diversify and offer renewable energy sources to area residents, as well as an outlet for farmers to get paid for crops such as ragweed and bad hay for which there was previously no market.

"Basically, we buy overgrown fields. We particularly like goldenrod. We buy this from the farmers," May Miller said. "It gives them a little niche market for crops they couldn't sell before. They bring it right to us."

The crops are then converted into grass pellets, which can be burned in pellet stoves. According to the Millers, the stoves are very "green" in addition to being cost-efficient.

"Pellet stoves produce 90 percent less greenhouse gases than fossil fuels and are 10 times under the EPA emission limits," May Miller said. "It takes 70 million years to grow a crop of gas or oil, 20 to 100 years or more to grow a tree, but only 70 days to grow a new crop of grass."

The company has received much interest in their product and very little negative in way of response.

"It's going extremely well. Everything we produce is selling right out the door," she said.

Miller admits there are some kinks to be ironed out.

"The older stoves are having trouble with ash from the grass pellets," she said. "Because of this, we recommend that people try a bag or two first to see if it's right for their stove."

Miller added the newer stoves available for consumers are equipped to handle the extra ash produced by the grass pellets and are generally multi-fuel burners.

One of Enviro Energy's customers is Cornell University Cooperative Extension of Delaware County. Last year, the organization launched its Grass Bio-Energy Project. According to Mariane Kiraly, a resource educator with Extension, the regional project is slated to run for three years and has received $195,500 funding from Catskill Watershed Corp.

"Grass biomass could be a local energy loop," she said. "We're hoping to bring this research into the community."

A local energy loop, she explained, is one where the product is grown and produced locally and its end-user is the local consumer. Cornell researchers and scientists are seeking ways to reduce the ash produced in stoves and furnaces by grass pellets.

Kiraly said stoves from Quadrafire, Central Boiler, Wood Master and Harman are being tested now. Locally, consumers can see grass pellet stoves at Brookside Hardware in Margaretville. The store will also be a supplier of grass pellets, Kiraly said.

"Grass biomass is a very promising energy source," Kiraly said.

Besides grass, consumers may also use wood and corn pellets in their stoves, but not everyone has a good experience with this process.

Mike Williams of Hobart installed a pellet stove two years ago in his Hobart home. His initial cost for the stove and installation were $7,500.

"It was a waste of money," said Williams. "The stove hasn't worked right since I bought it. I think it was installed wrong."

Williams conceded that when the stove did work, it was very warm and helped offset his oil heating costs, but added that he didn't like the odor it produced.

"When I burned the corn pellets, the whole house smelled like popcorn," he said.

Despite Williams' experience, pellets and pellet stoves continue to sell well locally. In Oneonta alone, more than 1,200 residents use pellet or wood stoves, according to reports in The Daily Star; about 3,400 tons of wood pellets were sold in 2007.

Efficient energy

For area residents who can't or don't want to burn fuel in their homes, there are other efficient alternatives. Ron Tippet of Stamford, owner of ABLY Insurance Agency, is a regional distributor of Eden Pure quartz infrared portable heaters.

The units cost between $400 and $800, use 110 electricity, are energy efficient and warm any room from ceiling to floor. Tippet, who uses the heaters himself, said the heater offsets his oil bill by 30 to 40 percent in the winter.

"I use two in my home and save anywhere from $300 to $400 each month in fuel costs. My electric goes up by only $40 per month," he said.

Tippet added that the units are safe to touch when operational, are thermostatically controlled, will not cause fires and require no maintenance.

Other alternative heating solutions include solar heating systems and geothermal heat pumps. One South New Berlin company specializes in the sales and installation of both.

Great Brook Solar NRG LLC owner Dave Austin said he is "very busy" and has devoted the last 30 years to providing green, renewable resource energy systems to New York residents.

"Great Brooks was established in 1978 for the purpose of providing alternatives to conventional energy sources that have been growing more expensive and more unstable in terms of availability," said Austin. "Our mission as a company is not only to help people save money and raise their standard of living through use of renewable energy, but to provide them a measure of freedom from dependence on centralized energy distribution."

Austin's company is preparing to install two geothermal heating systems next month in Chenango and Schoharie counties. Geothermal heat pump systems tap the constant temperature of the Earth to provide efficient heating and cooling systems. The systems use water-source heat pumps which can be distributed throughout the building.

Heat energy can be extracted from the ground in the winter and in the summer unwanted heat is dispelled from the building and put in the ground. Geothermal benefits include low operating costs, long-life expectancy, no on-site combustion, level seasonal electric demand and simple to use.

Money talks

According to Austin, the cost to install a geothermal system in a residence is between $25,000 and $30,000. The systems can provide 100 percent of the home's heat and hot water. In addition, federal tax credits are available for 30 percent of the cost of the system, with no cap.

Solar home-heating systems typically start at $20,000, and can provide 30-to-50-percent of a home's heat. The same federal tax credit is available for these systems, and New York state also offers a 25-percent tax credit, capped at $5,000. Austin said new homes are better suited for geothermal heat systems, since ducts and equipment layout can be factored in.

Oneonta resident and businessman Nathan Batalion recently got rid of his gas water heater and installed a solar hot water system in his home last week. The system he purchased is from Silicon Solar and was installed by Sophia's Center of New Berlin.

Batalion said he invested roughly $8,000, with tax credits as well as his personal commitment to going green influencing his decision.

"Because of the available tax credits, I will get half of my investment back immediately," Batalion said. "Also, I'll save about $75 per month in gas. In three years, the system will pay for itself."

Jeffrey Gordon, NYSERDA spokesman, said incentives are helping residents decide to take the plunge into alternative heating systems.

"With favorable federal and state tax credits and incentives from NYSERDA, investing in a geothermal heating and cooling systems is becoming a more affordable alternative to reduce dependence on fossil fuels," he said. "Combined with improving energy efficiency in buildings, this environmentally sustainable investment can reduce demand on our electric grid and natural gas supplies and will help Gov. Paterson achieve the goal of meeting 45 percent of the state's energy needs through improved efficiency and renewable energy by 2015."

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Area homeowners turn to energy alternatives
by By M.K. Moynahan , , Sat Oct 10, 2009, 04:00 AM EDT
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