| 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. |