Solar Energy – The Perfect Remodeling Project of the Future, Part 2
If Solar is Good for the White House………
U.S. President Jimmy Carter dedicates the White House solar panels 20 June, 1979
Most people are surprised to find out that President Jimmy Carter had solar panels installed on the White House in 1979. At that time, because of the increasing difficulties with OPEC and a fear that we were too dependent on Middle-East oil, there was a huge push to develop alternative sources of energy. I was in high school during these heady times and I remember how exciting it was to think that we might power our homes with the sun.
Then, in 1986 a leak developed on the roof and the solar panels were removed and the panels were not re-installed. In fact, solar energy was not restored to the White House until 2003 (by President Bush…..with very little fanfare). What happened? Well, there has been a lot written about how President Reagan simply didn’t believe in alternative energy and that the panels were removed to send a clear message to environmentalists: “go fly a kite!” Whether or not Reagan was that smart (doubtful), his policies eliminated government subsidies/incentives for alternative energy and made way for the emergence of gas guzzling vehicles. His grand myopia led to 30-years of petroleum gluttony and a continued dependence on foreign oil.
Solar Panels for Your House
In Part One of this series, I asked the question: How many homes have solar energy systems in the Greater Seattle area? Eric Teegarden of Northwest Mechanical Inc. told me that there are approximately 500 homes with solar panels or solar hot-water systems in our area. I don’t know about you, but that number shocks me. I had thought that, perhaps, several thousand homes would have solar systems in Puget Sound. After all, the NW has a reputation for environmental activism. What’s going on?
The truth is: The cost of a residential solar system (both the solar panels and a hot-water system) is significant. When Eric did the analysis for my home (a 2440 sq-ft, two-story home in Kenmore, WA), the most attractive system came in at around $41,000 after a 30% Federal IRS Tax Credit. Click on the picture to see a larger image:
You will note that after one factors in Production Incentives and net-metering (a system owner receives retail credit for at least a portion of the electricity they generate) over a 10 year period, the cost drops to closer to $20,000.
Are You Crazy James?
I know what you’re thinking: “James, you’re insane to believe that installing a solar system on a house is “the perfect remodeling project.” Indeed, when one considers the initial cost, and the fact that it takes years to realize a return on the investment, it doesn’t seem to make economic sense. Nevertheless, I’d like you to ponder the following:
- A lot of homeowners spend this kind of money on kitchen remodeling, appliances, “media rooms” and a huge array of other home improvement projects that (theoretically) add value to a home and to one’s quality of life. I call these “sexy” projects. They do add value to one’s home, but as long-term improvements, they are marginal investments. Kitchens go out-of-style, appliances wear out and “media rooms” are popular now but are expensive to maintain and will be obsolete some day.
- As a homeowner and Realtor® I have always believed that the real value in a home is in the quality of its construction and the “infrastructural” assets it offers. It doesn’t take a genius to know that a home built here in the NW that doesn’t have an adequate drainage system is doomed to huge problems. Installing these systems in existing homes can run $10’s of thousands of dollars and drainage systems are not “sexy.” There are other investments homeowners make all the time: foundation work, driveways, roofs, landscaping, etc.
In the next installment of this series, we are going to take a look at a “real live” system, show how it is installed and talk to the owner about the true value of his solar system………..Oh, by the way, if you were wondering what happened to those solar panels that were removed from the White House in 1986, check this out:
In 1991, Unity College, an environmentally centered college in Maine acquired the panels and later installed them on their cafeteria. Today they aren’t in service anymore according to a College spokesperson; however, it’s amazing that the panels were so resilient and productive for so many years.
August 23rd, 2009 at 7:19 am
I wish that it wasn’t so expensive. It’s fine to look at it long term, but in a society where the average home owner is in their home 5-7 years (that may significantly increase now that values aren’t skyrocketing) it’s tough to justify those kind of spendings. More than justifying them, it’s hard to come up with that kind of money.
Same with cars. I’d love to buy a hybrid, but I can’t afford one that would work for me (I’d love a hybrid SUV, but I can buy 3 of my cars for 1 of those).
Same basic premise of how our society eats. Junk food is cheaper. Long term, sure eating healthy saves you, but how can you tell a struggling family to spend money they don’t have now to most likely save money in the future?
I wish I had an answer, but I don’t see our society truly changing for the better until better choices are made comparable in price.
August 23rd, 2009 at 10:03 am
Hi Matt – This is an important conversation to have. Here’s the crux of many problems in America today:
1) We spend, spend, spend, spend……………and…
2) We demand it cheap, cheap, cheap…………as a result
3) We have a crumbling national infrastructure, failing schools, a disappearing manufacturing sector and a myriad of other self-inflicted problems.
4) In addition, we had an opportunity to avoid our current over-dependence on fossil fuels decades ago; unfortunately, during the 80’s, those in power put it this way “the American Lifestyle is NOT negotiable” (George Bush Sr. actually said this!). Thirty years later, indeed, our lifestyle is NOT only NOT negotiable, it isn’t efficient, it isn’t sustainable and it is going to become more difficult to live in the 21st Century. We’ve left ourselves fewer opportunities rather than more.
Had our leaders been more visionary, they would not have eliminated incentives for alternative energy and they would have had a long-term perspective rather than a buy today, pay tomorrow philosophy.
As I mentioned in my post about Thomas Friedman’s book “Hot, Flat and Crowded, he hits the nail right on the head with the statement: that in the 80’s Americans adopted the “dumb as I wanna be” philosophy…..the spending spree started and today, most Americans find themselves wondering where the “American Dream” really lies.
The answers lie in a commitment by Americans to demand public policy that encourages and subsidizes alternative energy; to shop locally; to quit believing that we can run an economy by flipping burgers, selling ring-tones, and “securitizing debt.” Friedman’s premise is that the green revolution can and will save us. It’s where innovation and productivity come together.
August 24th, 2009 at 12:00 am
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September 1st, 2009 at 7:36 am
That’s a good question James. My family is not typical. My parents only moved about 6 times in the past 60 years, and so far my dad hasn’t moved in 15 years in his current home. He could have benefited from a solar or wind power system in his current home. I’ve lived in my current residence for 16 years. Not everyone moves every 5-7 years. For those folks, solar or wind power is a definitely a viable option.
We really need to stop looking at houses as investments and start looking at them as homes. A place to stay for a long while and raise a family in stable neighborhood.
But to answer the question of commenter, you’ve improved the value of the house. As long as the new purchasers of the house know how to maintain and care for their solar cells, they will benefit from the cheaper energy bills.
And if you are going solar or wind power, you should upgrade all your major appliances to Energy Star rated ones. That will help cut down your energy consumption overall. Less is more, as they say.
With a house so bedecked, you’ll appeal to the more “Green” home buyer.