I can't help but wonder what role the real estate community should play in supporting solar energy initiatives.
c|net News.com had a great photo essay this morning on a new power plant opening it's doors in Boulder City, Nevada. Nevade Solar One is a 300 acre field of mirrors that collects thermal energy from the Sun and heats tubes filled with oil to 400 degrees. The oil is then used to create steam, which turn a turbine to create electricity.
How much electricity? Nevada Solar One will produce enough juice for 15,000 homes or 25,000 hotel rooms. It goes live on the grid in a few weeks and will deliver most of it's energy during peak periods when electricity is most costly.
What does this have to do with real estate?
Maybe it's a stretch. Maybe I woke up with my rose colored glasses on today and just haven't found a way to pry them from my head yet. I don't know, but it seems to me that this is a movement the real estate community should rally around - and not just because getting energy from this plant reduces carbon dioxide emissions by 200 million tons each year!
Reducing our dependence on foreign oil, providing cheaper, cleaner energy, utilizing natural resources in our Sun Belt, educating consumers on the value of energy efficient home improvements, all of these things contribute to the health of our economy. In the big picture, that contributes to the health of the real estate industry. And, yes, I know I'm looking at this in the simplest of terms.
The Solar America Initiative
President Bush signed the Solar America Initiative (SAI) in February of 2006. It was supposed to promote "widespread" use of various solar energy sources all over the US by 2015. Jeanette Fisher, wrote a great article about this at the time. It was entitled, Will Solar Energy Initiative Affect The Real Estate Market. She looks at the potential impact of tax incentives and the growing demand for solar energy options in new home projects. I think one of her conclusions is accurate, "In time, home buyers will undoubtedly begin to insist upon having solar
technology built into their real estate packages, but for now, the
Solar America Initiative should be considered just the first step in
moving the United States toward energy independence and greater
economic stability." Is it working?
Adding solar roof tiles and tankless water heaters to new home construction would not increase the cost of building dramatically, but would dramatically impact the cost of living for the homeowner. I've seen a few new home builders off this as an option, but why aren't more home builders making this standard? I don't know. But it's an area that the real estate community can have an impact on!
In October, Business 2.0 ran an article entitled, Go Green, A Smart Home Improvement. "Considering a remodeling project to boost the value of your home?" Michael Copeland writes. "Before you drop $40,000 or more on a new kitchen or master bath, consider the newcomer on the renovation block: a rooftop solar-power system that not only will lower your overhead costs and insulate you from a volatile energy market but will likely add just as much to your home value over the long haul." It's worth a read. If it's even half true, it's certainly worth telling homeowners in Sun Belt states about.
So, is it just my rose colored glasses or is this something the real estate community should be focusing on?
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