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100% Green Power - One Small Business, One Big Example

   

Old Town Bike Shop may not be a big player in the national business scene.  But this Colorado Springs bicycle store, established in 1976, is a leader in environmental responsibility.  Since its grid-tied solar array became operational in late 2007, the shop has met 100% of its electrical needs through a combination of the on-site solar and purchased wind power.  We sat down with John Crandall, owner of the shop - and one of Colorado Springs' most familiar environmentalists - to ask a few questions.

WOC: How long have you been interested in environmental matters?

JC: My interest in environmental matters first really started in 1962 after reading and doing a book report on Silent Spring by Rachael Carson.

WOC: What led you to make the decision to actually go 100% renewable?

JC: The decision was not initially made to go 100% renewable, but some years back, to start buying wind power option blocks from Colorado Springs Utilities.  We figured we could afford about 65-70%, so that's where we started.  After having that for a few years and looking at photovoltaics, it made sense to add enough photovoltaics to complement that wind power option.  So we added roughly 35% photovoltaics, and now we are - on electric - 100% renewable.

WOC: Do you mind saying how much the solar array cost?

JC: The array cost $59,000 dollars, which is an expensive example of how to do solar.  Part of the reason it's that expensive is because we realized partway through the project that we could not put the array on the roof due to the inability to accurately determine the strength of the roof trusses, and we needed to add 1200 pounds on top of the roof.  So when we built a wing outside the shop in the parking lot, that added to the cost - it took us basically from $42,000 to $59,000.

WOC: But there were or are rebates on the array?

JC: Yes.  There are two rebates.  An actual rebate from Colorado Springs Utilities which is for $3.75 a watt, based on their determination of the effectiveness of the system - prior to its being built - but they were pretty close in their estimate.  In this case, that was 4200 watts, times $3.75 per watt, it was a $16,000 rebate from city utilities.  Then on the remaining balance, the federal government has a tax credit of 30% on that remaining balance, which is then taken off the annual year's taxes.

WOC: What is the payback period on the array after the rebates have been factored in?

JC: Actually the payback on this is still going to be in the 40-some year bracket, and much of that has to do with the cost overruns of having to go off the roof.  That is based, though, on current utility rates.  And if utility rates go up 5% a year, then we're down to about 22 years, if they go up 10% we're down to 10 years.  So, there will be a payback sometime, obviously it's not the reason for doing it, but still nice to have something coming in.  And in appreciation for both rebates too, they were generous and much appreciated.

WOC: So you purchase wind power credits through CS Utilities.  Do they actually own the wind farms, or do they simply buy the power from someone else?

JC: Colorado Springs Utilities, at the moment, I don't believe owns any wind farms.  But they do purchase, I believe, the power we use from a wind farm up on the Wyoming/Colorado border, and that is then fed into the grid.  So the actual electrons from the wind farm don't make it to Old Town, but they're into the grid and then pulled out on this end.  And they will be pursuing more, that's been a sold-out program for some time now, and the demand is exceeding supply.  So they are looking vigorously at purchasing about 10 times the amount they have now.  Which is still a small amount, because they do such a tiny amount now.  But it's still good.  It's good that they're doing that.

WOC: You haven't particularly used the solar array as a promotional item.  In this time of "green issues" being front and center, any reasons why not?

JC: Actually it's served it's own purpose as being a promotional item already.  We've had a lot of good press, including being featured in the CS Utilities monthly bulletin and paper, the local papers and TV stations have done a fair amount of promotion for us, and then, as it's appropriate, we'll certainly mention it in relation to the shop and our philosophy.

WOC: Any advice for small business owners who want to go green?

JC: Yes.  Of course, philosophically, it was important for us.  But a couple of other pieces of advice, things that we've learned: One is that if it is an old building, do a really good analysis first, it was one of the things we learned the hard way.  Another thing is, don't necessarily make the assumption that because the technology will bring prices down in the future, you need to wait or should wait for that to happen.  Because there will be a counter-force on that, and that will be that some of the rebates will go away, as the market starts to take off on its own.  So the rebates that exist to stimulate this market will diminish over time.  So this is probably not a bad time, overall, to consider doing it.  It's tough to know where that balance will come out.

WOC: Anything else you'd like to comment on?

JC: I've been fortunate having this business and having employees that are supportive of this program, because it does take some money out of the business.  Even though there is a payback, it's a very distant payback.  Also to have employees that share the philosophy, have created a very effective recycling program, often ride to work, are very attuned to conservation issues, climate change issues, and just the impact of a big carbon footprint.