Green Building Elements

Cash, that most basic element of our economy, can be in abysmally short supply for new young families scraping by on marginal jobs.

Sustainable housebuilding may not be foremost in their minds.

But one young couple in Wales managing on an annual income of just $10,000 went ahead and built their own cheap home anyway, sustainably, mostly out of materials from “a rubbish pile somewhere.”
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It’s a Bright New Day for Home Solar

Hidden in the fine print of the massive Wall Street Bailout bill that was signed into law last week was a tax credit extension that had alternative energy companies, especially makers of home solar systems, dancing with joy. Instead of losing the federal tax credit at the end of the year, which seemed likely until Wall Street forced Congress to stay in session longer, consumers who install photovoltaic systems will now receive far greater tax savings than they currently enjoy. To put it bluntly, the federal government is willing to pay 30% of your cost to go solar. For a description of the roller-coaster ride that these tax credits have taken over the last few months, read my post from last week, Senate Bailout Plan Could be Boon for Alternative Energies, Home Solar.

Now that the bill has become law, it’s time to reassess the overall costs and return on investment for a home photovoltaic system. Because of their up-front expense, Photovoltaic systems are often viewed as a luxury for the wealthy. And with the down economy it is possible that even these impressive tax credits won’t cause a spike in the purchase of photovoltaic systems. Convincing someone to invest tens of thousands of dollars in something that may take a decade to pay itself off is a hard sell. Let the hard sell begin: Read the rest of this entry »

Lost in the economic and political circus of the recent weeks was the failure of congress to extend tax credits for alternative energy companies and homeowners who install solar-power systems. Both the Senate and the House wrote similar bills extending the tax credits and lifting the cap for residential solar-power installation. Until the end of this year, homeowners can receive a federal tax credit of 30% of the cost of a solar-power system, capped at $2,000. With that cap lifted, tax credits to homeowners installing solar-power systems increase dramatically, potentially saving homeowners over $10,000 on home solar systems. In addition, companies that produce electricity from wind will get a one year extension on tax credits, companies that produce electricity from solar will get an eight year extension on tax credits, and companies that produce electricity from other types of alternative energy will get a two year extension on tax credits.

Unfortunately, the Senate and House could not agree on how the continuation of tax credits would be paid for. In the past, such cuts were paid for by eliminating tax breaks for hedge fund managers and from tax increases on oil profits. With no progress made by the end of the session, these tax credits would disappear at the beginning of 2009. A coalition of renewable energy industry representatives warned that billions in research and hundreds of thousands of alternative energy jobs would be lost if the tax credits were not renewed. As of last week, this seemed the likely outcome. The Wall Street meltdown and the failure of the House to pass a bailout bill have given the tax credits new life. Read the rest of this entry »

Home builders that embrace green construction strategies will be in the best place to increase sales as the housing market changes, according to Paul Cardis in his article “Green Design And Construction Lead the Way to Customer Delight”.  He offers four tips for home builders that want to tap into the upcoming market for energy efficient and green homes:

1. “Go green.”  More and more consumers are realizing the importance of buying green homes.  Energy efficiency measures alone can save them thousands each year.  The rising number of “light green” consumers, those motivated to go green by the promise of energy cost savings, is going to push the demand for these types of homes.  “Dark green” consumers, those who have been on the bandwagon for years and are doing it out of their beliefs about the planet, are going to be looking for more than just energy efficiency.  Features like recycled materials, indoor air quality, local materials, and non-toxic interiors are going to be popular with this set.

2. “Share your green philosophy.”  This ties in closely with the next point, but consumers want to know that their home builder is doing all they can to reduce their impact on the environment, as well as reduce costs.  Including a green philosophy in your marketing materials may make the difference between who a consumer chooses to buy their house from.  It is important to make sure this philosophy extends beyond just buildings and construction practices.  Take a look at day-to-day business practices to see if they can be “greened up.”

3. “Find your green niche.”  Cardis advocates knowing your potential customers “so you can combine tangible value with the green benefits they want and can afford.”  Whether it be high-end or low-income housing, each presents its own green design challenges.  Knowing what your customer base can afford, and where their money is best spent, can help you gain their confidence, and, hopefully, their business.

4. “Avoid green washing.”  Basically, don’t make promises you can’t keep.  Some home builders are guaranteeing that their houses will not cost more than X dollars a year to heat and cool.  If you can make such a promise, great, but be ready to pay if the house doesn’t perform.  Be sure to research materials and equipment carefully, as the green claims of some products are not always true.  Make sure that if you are advertising a “no VOC” (volatile organic compound) house, that all of your materials measure up.

How do you determine if a green project you are considering is worth it?  There are so many things to consider - the up front costs, savings over time, rebates and tax credits, and the savings to the environment.

A tool is available to help assess the financial costs and benefits of several green projects.  GreenandSave.com provides an ROI (return on investment) table that lists the added costs, annual savings, projected savings over 10 or 20 years, and the ROI for a given improvement.  Improvements include Tune-Ups (small projects or changes that can be made to green up a home or building), Remodeling, and Advanced (larger projects or decisions for a new building).

An example of a Tune-Up project is installing an Energy Star approved programmable thermostat.  The average cost is $115.00.  The projected annual savings is $180.00, yielding an ROI of 156.5% and a payback of 0.6 years.

One of the Remodeling projects is to replace windows with Energy Star Low-E windows.  According to the GreenandSave Remodeling Table: the payback time in years is 2.3, the added cost is $700.00, the annual savings is $300.00, ten year savings is $3,000.00, and the ROI is 42.9%.

Advanced projects include doubling the insulation factor (R-value) of the exterior walls from R-19 to R-30.  The added cost for this improvement is listed as $900.00, annual savings of $120.00, ROI of 13.3%, and a payback of 7.5 years.

While the costs and savings may vary according to the area of the country or world a project is located in, this tool certainly gives an owner some hard data to use to when making a decision on whether to pursue a project or not.  Some projects, such as adding a programmable thermostat, pay for themselves quickly, so they become almost “no-brainers.”  Others, like the added insulation example above, require more thought.  Tools like GreenandSave.com’s ROI table give owners the data they need to make an educated choice.

Early pioneers of the green movement must be conflicted: Their message has been heard and the green movement has seeped into every facet of our lives, from cars to buildings to food.  But with the movement’s popularity has come what many see as a hijacking of green sensibilities by people and companies who are trying to sell their products, many of which are either only marginally green or completely unnecessary. If the goal is to leave a smaller carbon footprint, to reduce waste, or to conserve energy or resources, we should buy fewer products, not more.

Let’s not start demonizing the corporations, especially those who have advanced conservationism through energy and fuel saving technologies, new environmentally-friendly products at lower prices, and new ways to recycle.  It’s no coincidence that the popularity of the green movement increased dramatically when corporations began to adopt - and promote - green practices.  Conservationism cannot be seen as the enemy of consumerism, but rather a lens through which to view it. Read the rest of this entry »

“Greater energy efficiency drives consumers to choose a green-built home,” according to a survey by the National Association of Home Builders.  With the cost of fuel skyrocketing, and consumers looking to fuel efficient cars to help at the pump, it is no surprise that they would also be looking for energy efficiency from their buildings.

According to the survey, which polled 800 registered voters about how important certain features would be in their decision to build a green home or remodel their current home to be more green, 64% said that energy efficiency would be the most important feature, the healthier environment of green homes came in second at 55%, and 49% percent believed it would be the right thing to do for the environment.

Home builders and designers who can provide energy efficient homes will have a better chance of surviving the recent housing slump.  While general home sales are down, recent studies have shown that the sale of green homes is remaining steady.  Green houses also tend to be worth more.

The one concern most consumers have is the cost of green homes.  While tax credits and rebates help, home owners should be looking at the long term benefits of owning green.  With lower energy and maintenance costs over time, the additional premium is worth it.  Also, as technology and building techniques evolve, construction costs will come down.

In today’s volatile fuel market, energy efficient buildings are going to be all the rage, and delivering quality homes at a reasonable price will help many builders rise above the slumping market.

As I walked from booth to booth looking for something new and different at last month’s Greening the Heartland conference, I actually did a double take when I saw the words “Green Insurance” on one display.  Here was something new that I had to learn more about - was it another gimmick or attempt to force green into an unrelated industry?  I spoke to Stephen Horack, a ”Green Insurance Specialist” of St. Louis based Huntleigh McGehee, and I have to say that I was sold on the idea right away.  Green insurance is not just a good idea, it’s potentially a revolutionary idea.

Started in 2006 by Fireman’s Fund, a member of the United States Green Building council, green insurance protects owners of green commercial or residential buildings.  In the case of a loss, Fireman’s Fund would bring in a LEED-AP to oversee reconstruction of the building to its original LEED certification level, making sure that the building systems operate at peak performance and in alignment with one another.  If this seems like a no-brainer, consider submitting rebuilding plans to an insurance company that has no experience with green building.  Would you have to explain why every component of the building was built that way, rather than a less expensive non-green alternative?  Read the rest of this entry »

This post was originally published on June 29, 2008.

With many cities experiencing a real estate “slump”, homeowners around the country are looking for ways to stand out from the slew of homes on the market, while improving their home’s resale value. Other homeowners are planning for the future: a future of ever-rising energy prices.

Regardless of your situation, you may be asking yourself if green home improvements increase the home’s value. The answer isn’t as straight-forward as some might hope.

The old rules still apply…

Before we dive in, there are a few things to consider when thinking about making home improvements – green or not. First, remember the three rules of real estate: location, location, location. The return on your investment will depend on the value of your house and others in the neighborhood, as well as your local housing market. Other factors like the quality of the workmanship, and how soon you move after making the improvements weigh in as well.

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As we walked into the mammoth PCBC (Pacific Coast Builder Conference) at the Moscone Center in San Francisco we couldn’t help but notice the hanging banners with the words - Power. Forward. Sustain. Of course we could see Power and Forward, as we wouldn’t expect Weakness and Backward but then - Sustain. That omnipresent word like Green that has seeped into the mindset of builders and developers. Or has it? Is it part of the green spin or are things starting to move forward in a powerfully sustainable direction? We decided that “both” loomed as the right answer. For this installment, we decided to cover some of the unexpected and the questionable lower profile “green” products. Sorry about the ” ” around the green but you’ll see where we go with this idea.

We totally got buzzed about something so innocuous that we almost walked passed it because it didn’t have a bunch of Green banners proclaiming its greenness. This Verve living system offers what they called a living control system which in simple terms operates like a whole house lighting system. We’ve seen these before but this one operates on battery free, self sustaining technology or what they call energy harvesting radio frequency technology. Pretty scientific for us but the little gizmo works in a panel that reduces the power so that certain switches can come on at certain levels and times. The systems extends bulb life and new homes don’t need copper wiring installed if they use this system. We even like the parent control which operates like the driver’s control when it comes to locking and unlocking car doors. We’re locked for this system.

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