Energy Circle

Previous posts on this blog have dealt with financing energy retrofit projects. Generally speaking, it's more cost-effective to make your home energy efficient than it is to install renewable energy systems. And remember, saving energy is just as good as generating it from renewable resources.

But, if you’re one of the few that have already addressed your energy consumption, you might consider installing a solar array for your home. Getting an energy retrofit and installing solar are significant steps towards achieving a net zero home.

Although solar panels are now more affordable than ever, you may still wonder how you're going to pay for their installation. Several interesting financing options are available to homeowners, including solar leasing, power purchase agreements and loans. Over the next few days we'll be discussing the various solar financing options out there and providing a rundown of the pros and cons of each.

Option 1: Solar Leasing

A solar lease is a contract between a homeowner (known as the "lessee") and a third party (aka the "lessor"). The homeowner rents the solar equipment--either a photovoltaic system or solar thermal unit--from the lessor, and the lessor installs and maintains the solar equipment. In exchange for making monthly payments over the course of the agreement (typically 15 to 20 years), the homeowner gets all the clean, solar energy produced from the system installed on his/her property.

Benefits:

The primary benefit of leasing solar equipment is that you're required to put little or no money down. Aside from freeing up your hard-earned money for other uses, the typical "no-money-down" provision means you don't have to buy energy today that you'll use 20 years down the road. Be aware, though, that some lease rates can increase between 2.5 to 4.5% per year, but compare that with utility rates that increase roughly 5% annually.

Drawbacks:

There are a couple of drawbacks to leasing solar photovoltaic panels and solar thermal systems that you should understand. First, your monthly lease payments are fixed, and not a function of energy produced by the solar equipment. For example, if you have snow on your roof for 3 months, you will still have to pay for the equipment without receiving any energy in return. Thus, it’s important to choose a qualified leasing company with a skilled installation team, so you can ensure your equipment functions to its maximum potential.

Second, leasing is typically more expensive than buying solar equipment from the outset. In other words, your total lease payments will exceed the market price of home solar panels. Further, lease agreements typically have provisions for balloon payments or buyouts.

Other Considerations:

Other things to consider when entering into a solar lease are maintenance and downtime. Ensure that the lessor is obligated to repair/replace any equipment in a timely and professional manner. If not, see to it that you’ll be reimbursed for downtime.

All told, solar leasing is a viable option for homeowners looking to make the switch to renewable energy for little risk and a low upfront cost. Check back for more options for financing home solar installations in the next few days, and, of course, if you have any experience with solar leasing, feel free to leave your thoughts in the comments!

ReCircle: SAVE Act, Ending Fossil Fuel Subsidies, Edible Curtains, Lighting Incentives and more!

Will — Fri, 11 May 2012 18:06:16 +0000

SAVE Act Attempts to Incentivize Energy Efficiency.

Currently, appraisers rarely consider energy efficiency when determining a home’s value. Consequently, home improvements like granite countertops are often seen as a more cost-effective investment when it comes to resale. A new bill aims to change that. (From The Energy Collective)

Bernie Sanders and Keith Ellison Unveil a Bill to End Fossil Fuel Subsidies.

The bill proposes to eliminate one of the more contentious energy policies we have -- the counterintuitive practice of subsidizing fossil fuel industries -- and is aptly titled the “End Polluter Welfare Act.” (From The Huffington Post)

Cooling an Office with Edible Curtains.

You read that right. This office space gives a new meaning to “green building,” taking advantage of wall space to create a hanging vegetable garden that doubles as a sunshade. (From Inhabitat)

Incentives for Energy Efficient Lighting.

Energy efficiency improvements across the economy reduce public health and environmental risks, keep money in local economies, and help fight climate change. So it only makes sense that federal and state governments help you pay for the upfront cost of improvements like upgrading your lights. Here’s how you can take advantage of existing incentives. (From Green Building Elements)

How to Get Your Home Off Fossil Fuels.

It’s never been easier. Alex Wilson, one of the country’s leading experts on all things green building, explains why and how we should be aiming for the ultimate goal of getting off fossil fuels, and offers a chronological three-step approach to doing so. (From Green Building Advisor)

Is the Natural Gas Fracking Industry the Largest Employer of Recent PR Grads?

Nope, but it almost makes sense. Here’s a satirical article from America’s funniest news source. (From The Onion)

Another Energy Related Blog We Love:

106 Greenway.

106 Greenway is a Home Performance company serving the greater Kansas City region. Their blog features cool videos and infographics, helpful tips for homeowners and updates on incentives and other opportunities for home energy improvements.

Around the Web: Energy Circle's Hand-Picked Links, Chosen Especially for Energy Efficiency Pros.

Will — Fri, 11 May 2012 17:58:34 +0000

The Redboxification of Home Performance.

Laura Reedy Stukel explains how Redbox (the DVD-vending system that you see at grocery stores) has created a seamless and compelling consumer experience, and what Home Performance could learn from their model. (From Home Energy Pros)

Insulating With Garbage?

Ever thought about using salvaged foam for insulation? This builder did, rescuing a boat load of nonbiodegradable material from the trash heap and saving a bunch of money in the process. (From Fine Homebuilding)

ACEEE Releases New Methodology for Ranking States on CHP.

The American Council for an Energy Efficient Economy (ACEEE) releases an Energy Efficiency Scorecard each year, ranking states on energy efficiency based on a variety of metrics. One of those is Combined Heat and Power (CHP), which is getting a facelift this year. (From ACEEE)

Creative Financing Setting Off a Boom in Home Solar Installations.

Thanks to tax breaks, creative financing techniques and the dropping cost of solar panels, the number of commercial and residential systems doubled over the last two years. If home performance upgrades can be scaled similarly, we’re doing good. (From The New York Times)

Why You Should Be a Shameless Self-Promoter.

Kevin Daum explains why you should huck your long-held humility out the window and not be afraid to promote yourself when it comes to growing your small business. In a field like Home Performance, where far too few homeowners are aware of the benefits you offer, this advice seems poignant. (From Inc.)

Home Performance Social Media Shout Out of the Week:

106 Greenway on Twitter.

106 Greenway is a Kansas City Home Performance company with a good attitude and a growing Twitter presence. Follow them for regional energy efficiency info, industry insights and other fun stuff.

ReCircle: LED Lights, Insulating an Attic Hatch, Energy Efficiency in an Old Home, and More!

Will — Fri, 04 May 2012 17:12:47 +0000

Replacing Windows? Don’t Miss This Opportunity.

A lot of homeowners spend a lot of money replacing windows, only to realize after the fact that they didn’t lead to substantially reduced energy bills or improved comfort. But one aspect of windows can greatly improve your home’s energy performance; tackle this whether you’re having your windows replaced or not. (From Energy Vanguard)

Getting Ready for the ‘Incandescent Phase-Out.”

The so-called “incandescent bulb phase-out” isn’t really that, it’s just an increase in the energy efficiency requirements of household lighting. That said, if you’re ready to take the plunge to drastically more efficient lighting, LEDs are a good option. (From Inhabitat)

How to Insulate and Air Seal an Attic Hatch.

Believe it or not, that little hatch leading up into your attic could be one of the biggest sources of energy waste in your home. Before you run out to buy new windows or have a solar panel installed, follow these steps to seal it up. (From Green Building Advisor)

Energy Efficiency in an Old House.

Some New York homeowners discuss the state incentives that enabled them to make some serious energy improvements to their aging home, and the long-term benefits that they’re already beginning to enjoy. (From Living in Dryden)

Fracking Chemicals Could Hit Drinking Water More Quickly Than Expected.

As natural gas plays an increasingly prominent role in the landscape of home energy, it’s important to keep in mind that it’s not a silver-bullet solution, and may have unintended consequences. Here’s one. (From Treehugger)

Another Energy Related Blog We Love:

Evergreen Home Performance.

Evergreen Home Performance is a Maine-based Home Performance company that runs an active blog focusing on energy saving tips for homeowners, company updates, funny stuff, and local and state policy updates.

Around the Web: Energy Circle's Hand-Picked Links, Chosen Especially for Energy Efficiency Pros.

Will — Fri, 04 May 2012 16:02:14 +0000

Are You Using Case Studies to Promote Your Business?

Maybe you should be. Case studies provide potential customers with concrete examples of the work you do, and help drive home the various benefits of home performance improvements. (From Home Energy Magazine)

Where Did the American House Go Wrong?

Why are American homes so grossly inefficient? Cheap fossil fuels led us astray. This infographic chronicles the saga of the American home, from the turn-of-the-last-century through the Great Depression and rural electrification projects, and right up to the present day. (From Fine Homebuilding)

A Report from the NAHB Green Conference in Nashville.

Martin Holladay reports from the National Association of Home Builders’ Green Conference in Nashville, discussing, among other things, shoddy concrete, a rusty hotel, and the views of a few good presenters who really understand buildings. (From Green Building Advisor)

Covering Your Marketing Basics.

Truck magnets and lawn signs are two of the most basic marketing media that you should be using to get your company’s name known around town. If you can’t be bothered, don’t be surprised if business isn’t picking up. (From Remodeling Magazine)

More Reflections on ACI.

For many attendees, the ACI National Conference that took place in Baltimore at the end of March was an inspiring event that highlighted the huge growth and potential of the Home Performance industry. (From Home Energy Pros)

“The Drafty Bulkheads,” a Spelling Bee for Charity, and Guerilla Marketing.

Some of the crew from Evergreen Home Performance here in Maine recently participated in a spelling bee for charity in their hometown. Fun? Sure. But also a great way to spread the word about your business and network with local movers and shakers. (From Evergreen Home Performance)

Home Performance Social Media Shout Out of the Week:

Minnick's.

Minnick's is a Laurel, Maryland HVAC-turned-Home-Performance company that's in the process of ramping up their online marketing efforts to highlight their new business offerings. You can find them on Twitter and Facebook, where they're encouraging new and existing homeowners to take advantage of the many benefits of Home Performance.

ReCircle: Making Energy Efficiency Social, Energy Waste in Your Home, Best of Earth Day, and more!

Will — Fri, 27 Apr 2012 19:46:40 +0000

From Energy Circle:

Opower App Makes Energy Efficiency Social.

A new application from Opower attempts to capitalize on our competitive inclinations by integrating home energy efficiency with social media. A cool idea, but will it take off?

Curated Links from the Web:

How to Destroy the Planet From the Comfort of Your Own Home.

Our homes protect us from nature, but can we protect nature from our homes? The residential sector is responsible for nearly a quarter of our country’s greenhouse gas emissions. More here on why this is important and what we can do about it. (From Old House Web)

Infographic: Energy Waste in Your Home.

Did you know that thermostats control 10% of the energy consumed in the United States? That, and a bunch of other cool energy facts about home energy consumption in the U.S., in one handy infographic from the coolest thermostat manufacturer on the block. (From Nest)

How to Make Every Day Earth Day.

The American Council for an Energy Efficient Economy looks at a few simple steps homeowners can take to reduce their environmental footprint year-round. (From ACEEE)

An Earth Day Music Video: “Switch Out the Light.”

This home energy themed music video from XY Limited is incredibly goofy and pretty funny. Check it out. (From Planet Save)

Another Energy Related Blog We Love:

Energy Auditing Blog.

The Energy Auditing Blog is written by Erik North, founder of Free Energy Maine and our neighbor just a couple towns over up here in the Portland, Maine region. In his own words, “This blog grew from those questions that I get asked frequently during energy audits. The goal is to answer those questions in (mostly) non-Martian language.”

Around the Web: Energy Circle's Hand-Picked Links, Chosen Especially for Energy Efficiency Pros.

Will — Fri, 27 Apr 2012 18:58:33 +0000

Keeping Water Out of Buildings.

There are four basic ways that water enters buildings. Keeping all of them in mind is a good idea when adding insulation to a home. This, and a few thoughts on poetry and baseball from Tristan Roberts. (From Building Green)

One Way to Get More Facebook Likes.

Contests, raffles and other incentives can be a great way to increase engagement on social media platforms, thus increasing your visibility in the local community and opening up the opportunity for more business. But you don’t have to go nuts: this construction company is offering the chance to win some coffee. Low cost, high impact. (From Burgin Construction)

Why We Should Be Retrofitting Foreclosed Homes.

Retrofitting foreclosed homes for energy efficiency has a number of strong economic benefits, including lower utility bills for occupants once the home is resold. Think Progress dives into the details. (From Think Progress)

Demonstrating Home Energy Saving Techniques in the Public Sphere.

It’s not uncommon for homeowners to be blown away by the home energy audit process once they see how comprehensive and insightful it is. The trouble is communicating the power of audits before you’re in the house. This company used Earth Day, and a portable wall display, to get the process in front of a bunch of eyes at once. (From The Art of Construction)

Crazy New Materials for Acoustic Soundproofing on the Way.

Okay, so this isn’t directly related to the home performance industry, but a little bit. While air sealing and insulating can go a long way towards soundproofing a building, scientists are working on creating metamaterials with a “negative acoustic index of refraction.” Pretty cool. (From Ars Technica)

Buy a Nest, Get an Energy Audit (or, A Nice Marketing Strategy).

A Maine Home Performance company is offering free energy audits to homeowners who purchase a Nest Learning Thermostat -- a good way to get in front of homeowners in order to talk to them about energy retrofit opportunities. (From Horizon Maine)

Home Performance Social Media Shout Out of the Week:

EnerGMatters.

EnerGMatters is the Twitter handle of Mike Rogers, a bona fide energy geek from Vermont whose day job is VP of Energy Futures at ABM Energy. His is a well-attended Twitter feed with a wealth of smart links to smart articles, and a particular emphasis on bringing energy efficiency to market.

Guest Post: Opower App Makes Energy Efficiency Social.

Will — Fri, 27 Apr 2012 14:06:09 +0000

By Scott Schnelle // Scott Schnelle is part of the EnergyLink team that is centered in Columbia, MO. They help homeowners improve their energy efficiency through HVAC, Retrofit lighting and insulation installations.

You and I understand that importance of energy conservation -- we’re reading a blog about it right now. But part of the problem in implementing energy efficiency on a larger scale is that not everyone is as concerned about energy usage and the health of the planet.

Because of this, Opower, an energy information software specialty firm, and Facebook have teamed up to create a smartphone app to make energy efficiency a social activity.

The application lets people keep track of their home energy use by connecting with their local power companies on Facebook. They then can monitor their usage, share conservation goals and trade tips on how to keep their numbers down. It was released on April 3rd and will reach about 20 million U.S. households. Already, 16 energy companies have signed up for the program, and many more are predicted to join.

You can download the application at social.opower.com, and it is already receiving a positive response. "The enthusiasm we're seeing from people who are excited about getting better context about their energy use, and share or even brag about their energy efficiency within their social networks is inspiring," said Opower chief executive Dan Yates.

Using smart grid capabilities of the energy companies, you can find your friends and challenge them to lower their scores, as well as compare you and your friends' energy consumption to national averages.

Similar apps have had mixed success in the past. Google PowerMeter, for example, initially showed great promise in allowing people to track their energy usage over time, at a low cost and in a convenient way. It didn’t take off as people had anticipated, and was later abandoned by Google. Microsoft Hohm was another promising energy efficiency application for homeowners, until Microsoft shifted gears much like Google and moved the product away from home energy monitoring.

In such a landscape, it will be interesting to see if all of the pieces of the puzzle are such that they create and atmosphere in which Opower's promising new app can take off, which we'll certainly hope it does.

In the mean time, if you are truly serious about cutting down on the energy of your home, consider hiring a home energy auditor to look at your whole house and identify areas where you may be wasting energy. You might be surprised what you find.

ReCircle: Air Conditioner Efficiency, Water Purification Basics, The Problem With Range Hoods, and more!

Will — Fri, 20 Apr 2012 20:10:26 +0000

The Power of Community in Spreading Energy Efficiency.

Word of mouth has always been the best way to spread an idea, and with energy efficiency it’s no different. Community programs and informal gatherings are a great way to get your neighbors talking about the process and the benefits of improving energy efficiency in the home. (From Treehugger)

Is Your Range Hood Working? Maybe Not Like You Think.

Green Building Curmudgeon Carl Seville discusses the complications of range hoods, harmful gases in the kitchen, backdrafting appliances, and why we should all take a hard look at how we do our daily tasks. (From Green Building Advisor)

How to Increase Your Air Conditioner’s Energy Efficiency.

It’s that time of year again. Follow these steps to improve the energy efficiency of your home’s central air conditioner and save money all summer long. (From National Geographic Online)

The History of Energy Subsidies, and the Politicization of Clean Energy.

Government involvement with energy markets is not a new thing. GigaOm takes a look at the history of energy subsidies and the politics of clean energy. (From GigaOm)

Water Filtration Basics.

If you’re looking to go off-grid or otherwise increase your home’s resource independence, clean drinking water is a must. Sean Lintow discusses several options for creating a clean water source at your home. (From SLS Construction)

Another Energy Related Blog We Love:

Efficiency Law Review.

Efficiency Law Review is written by Energy Circle’s own Johnny Ritzo. A lawyer turned home performance marketing advisor, Johnny has his finger on the pulse of the energy efficiency industry, and here touches on a wealth of topics pertaining to the legal side of energy efficiency -- including tax credits, energy efficient mortgages, interviews with experts, and more.