Green homes face a red light

[theHandpuppet]

I know from firsthand experience just how frustrating it can be -- at least in some parts of the country -- to retrofit an existing home with even some basic green technology. My partner and I explored the possibility a few years ago only to find no one in our area had a clue how to install solar systems; the cost would have meant taking out a second mortgage on our house, and even with any tax breaks there's no way we could have recovered the investment, as we live in an old, working class neighborhood. Even the prospect of installing a simple solar-powered attic vent had contractors around here looking at us as if we were from another planet, not to mention that local laws can be very "green unfriendly". Sorry to say I don't see green technologies succeeding in the market for the individual homeowner unless the government steps in and increases the incentive. I'm also puzzled, with millions of folks needing employment, why we don't have state and federal programs training folks how to install green technologies for existing homes. I'm not talking crews who can install giant wind farms on the plains of Nebraska, but who can install solar powered generators, solar panels, et al throughout homes, schools and businesses in their own neighborhoods and counties.

http://money.cnn.com/2010/03/10/real_estate/green_homes_redlight/

Green homes face a red light
By Les Christie, staff writerMarch 10, 2010: 4:00 AM ET

NEW YORK (CNNMoney.com) -- Lots of people, especially those trying to battle high utility bills, believe in energy-efficient homebuilding.

But there's something holding green technology back: It simply costs more to include it than it adds to resale value

Appraisals for newly built green homes do not fully reflect the cost of green technology, and the lower appraisal values mean buyers often cannot get the full financing they need from banks.

That discourages developers from using green technology, in turn diminishing the market for more green products....

MORE

[TwilightGardener]

1. To take this further, plan to build an off-the-grid house

(because running power lines is so expensive for some areas) and see how many banks want to give you a mortgage. Crickets... :(

[WriteDown]

2. How would a mortgage company know you want to build off grid?

:shrug:

[TwilightGardener]

6. Because when you get a home construction loan, you tell them you want wind/solar

instead of running power lines. And then they'll tell you that it's impossible to find area comps for appraisal and they are hinky about resale.

[WriteDown]

8. So just have the lines put in as well as the wind and solar

and then have the lines turned off. Might cost you just a bit more, but it won't be prohibitive.

[MadHound]

3. That's part of the misconception, it isn't all about resale value,

It's also, and mainly about the money you will save. If you put up a solar system to power your house, you can generally forget about having to pay a net utility bill, you will in most of the country show a profit as you sell your electricity back to the grid. This generally means that your solar system will pay for itself in fifteen to twenty years. Yes, it's a long term investment, but then again so are houses.

[theHandpuppet]

7. That's if you live somewhere that allows selling your electricity back to the grid

We don't. Neither can we afford a full solar power system, but wanted to at least start with a solar powered water heater and attic fan. The nearest contractor who would even think about doing the job for us was out of state! To top it off, we couldn't get a permit for the work because the city engineer said he wasn't sure how to give us the necessary permit because he had never dealt with that kind of retrofitting before.

Sometimes it's not just a matter of money, but the number of roadblocks thrown in your path.

[WriteDown]

9. You need a permit to install an attic fan?

Where is that? I installed two solar powered one's myself. That is always an option. It's easy if you take your time.

[theHandpuppet]

11. Yes.

Here in my neck of the woods (WV) it's determined by the cost of the job. Reach a certain amount and you need a permit. And the cost of the solar attic fan coupled with getting a licensed contractor from Maryland to come down here and do it would exceed the allowable amount.

Look, I'm nearly 60 years old and know nothing about wiring. I'm not about to climb out on a steeply gabled roof to do this job myself. My point is, and was, that there are plenty of folks just like me who would love to "go green" but find the obstacles maddening -- as I previously outlined. We finally gave up. If and when we can afford to retire we're moving somewhere more "green friendly".

[WriteDown]

12. Weird, usually it is the size of job or structure such as...

you can't build anything over 12ft high without a permit. I would suggest you just find yourself a "handyman" (unlicensed guy) to do it. Best way to find a decent ones is to ask friends.

[salguine]

4. You say "with millions of folks needing employment, why we don't have state and federal programs..."

Because the government isn't interested in fixing the unemployment problem or the green energy problem, any more than it's interested in fixing the health care problem. The government has, for the most part, a vested interest in keeping everything exactly the way it is and not derailing the corporate gravy train.

[WriteDown]

5. It's very tough to justify unless you plan on staying in the house for a long time...

Which you probably should.

[cally]

10. No,the profession is changing rapidly

I work in this field and I'm amazed at the change I'm witnessing. Sustainable improvements are beginning to add value beyond the cost savings of the improvement but it depends on the market and what people value in that area.

BTW, solar power is often not the best or most cost effective sustainable improvement. Installing white roofs, insulation, weather stripping, windows, energy efficient appliances, tankless water heaters, are usually a better return on investment. Solar power is appealing but for most of us, other improvements are better.