Part 1: Shedding light on solar myths in the Northeast

We are faced every day with a number of misconceptions about solar power and its viability. Well here are the facts and answers to the most common of these untruths. MYTH #1: There isn't enough sunlight in the Northeast to make a home solar system worthwhile. Nonsense, there's plenty of sunshine in the Northeast! I find my way to work every day using nothing but sunshine. On average, the Northeast receives approximately 4.5 hours of direct sunlight a day according to National Renewable Energy Laboratory (NREL). One factor that makes solar power such a sensible choice in the Northeast, rather than in many other places in the U.S., is that power costs are significantly higher and state incentives are strong. Coupling these factors together makes the potential savings enormous. MYTH #2: Solar energy works well only in warm, snow-free areas. Solar energy systems can work efficiently and cost-effectively in most parts of the U. S., even in the Northeast. In fact, here's a secret just slightly less well known than, "Don't go in against a Sicilian when death is on the line," (The Princess Bride) and that is solar systems actually perform better in colder conditions. After 77°F, the warmer a solar panel gets, the less energy it produces, so while there is a lot of sunshine in the southern states, there is also a lot of heat. Yea, Northeast! And speaking of the Northeastern U.S., New Jersey is the number one state for per capita solar installations. Additionally, the heavy snow months are not good energy producing months to begin with, so having snow on the panels does not create a significant impact on the annual solar energy production. However, the most compelling argument against this myth is Germany. Germany is the number one country in the world for solar installations and receives less annual sunshine than the Northeastern U.S. MYTH #3: Solar power is too expensive. Compared to what? After all of the federal and state tax credits and grants, plus favorable depreciation schedules, there has never been a better time for businesses or homeowners to invest in solar. Combine this with the drop in panel costs and going solar has become an incredibly smart investment that allows you to be both green and financially savvy. Most commercial installations we are pricing are showing payback periods under 5 years. That's a 20% return on invested capital. Worried about the fiscal cliff? Me too. Worried about how this will affect the markets and your portfolio? I'm with you. Worried about the sun coming up tomorrow? Ahhh, well as long as it does, you're making money with solar. MYTH #4: Solar power is not as reliable as traditional energy technologies. Sorry, not so. Actually, the National Renewable Energy Laboratory has found photovoltaics to be the most reliable source of electric power ever invented. For this very reason, solar technology is often used to power warning signals, navigational buoys, aircraft warning lights and railroad crossing signals specifically because of its high reliability. Bell Labs invented the technology in 1954 so it has been around quite a while (incidentally, those original panels are still producing power), and NASA has been employing solar technology in space for decades. With almost no moving parts, solar is often more reliable than any other energy source and manufacturer's warranties extend up to 25 years. Part 2 of this article will appear in the February 12th edition of the New York Real Estate Journal's Upstate Section. Mike Licata is the director of business development at TM Montante, Buffalo, N.Y.