User79130_2_t Lance Winslow
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Brenda Sprankle at Rodeo Realty in California asks a serious question about the use of Solar Panels in homes; "Why doesn't the housing industry use solar panels when building a home?"

 

This was a huge topic in "Building Industry News" magazine for a good nine months at the top of the bubble. The reason as stated is because putting solar panels on the home raised the price of the home some $30,000 minimum. It also increased liability for major builders, with all the lawsuits housing developers set up shell corporations that they close as soon if not right before the final home is built, this prevents class action lawsuits.

Even adding $1500 worth of insulation or a better fitting door or $3,000 for double pained windows was not done, this saves $1,000s per year on energy bills. The reason for that as stated is because raising the price of the homes an extra $3,000 means some folks would not qualify for the low or no-down financing. In hindsight, well obviously many of these folks had no business buying a home at all. They could not even buy a $1,400 chicken coup for cash, and yet they were sold homes for $250,000 to $450,000 with no money down, marginal credit and questionable statements on their loan application forms. But, I need not tell you this, more of an education for others reading this.

solar roofing

 

Solar Panels make sense, make what you can, when you are not using it, "grid bank" it selling it back to the grid allowing your electric meter to run backwards, everyone wins, no need to worry about capacity in power lines for demand and on hot days it helps prevent brown and rolling blackouts due to high usage from air-conditioners.

Now then, certainly the developers and builders of new housing tracts could have done this and their economies of scale would have fostered new innovation, research and free-enterprise would have filled in all the blanks and lowered the cost, it was a great time for that opportunity, which is gone now. Our Online Think Tank; http://www.worldthinktank.net/ discussed this at length during the run up to the bubble pop. You are preaching to the choir of course, but those are the arguments and debate points on that topic.

 

4 Comments on Why doesn't the housing industry use solar panels when building a home?

Good question Lance. I am bringing Solar and Wind Power to builders in Michigan and will be branching out to other states in the midwest. I think many builders

  1. don't understand solar power
  2. have not checked into cost
  3. consumers are not demanding it

There are some forward thinking builders I am working with who are adding Solar to their homes as a standard feature. This will set them apart from others in the market and they will gain the experience and skills to propel them forward. Good post!

 

01/02/2008 11:05 PM by Mary Bigelow, Renewing Your Life! (Ma's Marketing)


Mary,

Yes, I very much agree with your short list of "reality check" obstacles in your way. Nevertheless, this is a good time to talk with the building industry as they are slow right now, plus the costs on solar thus the ROI has come down SIGNIFICANTLY. It is a right time to go for it. - Lance

01/03/2008 01:14 AM by Lance Winslow (The Car Wash Guy)


Lance - how right you are. Interesting how people think nothing of spending upwards of $30 - 40,000 on a vehicle that is a depreciating liability and yet they question the ROI on renewables. My sister purchased a new dryer this week. I wasn't with her but I would bet that she didn't ask what the payback period would be. The benefits and paybacks of renewables are tremendous. Oil hitting $100 barrel this week should open an eye or two. The effect those rising costs will have on other industries and consumer products are tremendous. I choose to work with the people who get it!

01/05/2008 06:29 AM by Mary Bigelow, Renewing Your Life! (Ma's Marketing)


Yes absolutely, in fact, I'll never buy a house without Energy Star Appliances and solar in the future. If they do not have it. I'll put it in before I move in. - Lance

01/05/2008 06:57 AM by Lance Winslow (The Car Wash Guy)


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Property Manager: Lance Winslow (The Car Wash Guy)
Lance Winslow
Malibu, CA
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The Car Wash Guy

Office Phone: (800) 879-8783 Ext.: 111
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Mr. Winslow uses the Active Rain Real Estate Industry Blog, to discuss issues that affect the Real Estate sector of our economy. His dialogues include such things as; droughts, subprime lending fallout, building materials, living off the grid, sales ethics, commercial property, crime, revitalizing downtowns, economic development, community volunteerism, and predicting the future of the real estate markets in the United States.