Wednesday, September 27, 2006

Green Building

The green building movement is exploding with growth. Local governments everywhere are incorporating green concepts into regulations and guidelines. San Francisco is soon to host West Coast Green, the largest green building conference with 250 exhibitors and dozens of speakers.

Green building is based on sustainability concepts and focusing on energy efficiency, construction that minimally impacts nature, and a healthy interior environment. A popular certification is the LEED program administered by the US Green Building Council.

There are many factors to consider when constructing a building or remodeling an existing one. Some these include: maximize insulation and use recycled materials; orient to benefit from passive solar concepts; install EnergyStar appliances; landscape with local plants and minimize water use; install low flow toilets; use daylighting and CFLs; and literally hundreds of other considerations.

New products and concepts are being introduced continually. Before building, remodeling, or purchasing a structure, evaluate green building concepts. These save money, add to your health, contribute to the health of the community and the environment. No wonder this movement is growing so fast.

The Big Payback

It's easy to calculate the benefits of increasing energy efficiency. To calculate simple payback, take the total cost and divide by the annual savings. For example, if an appliance costs $500 and will reduce energy costs $100 per year, then the simple payback is 500/100 or 5 years. Simple payback is the easiest and most commonly performed method. If the simple payback is quick, make the purchase. If the simply payback leaves you wondering, then there is more to consider.

Other considerations include the rising utility costs (2-5%/yr), inflation, interest you could earn if money was left in the bank, loan costs, and increased or decreased maintenance costs. A new project may reduce or increase regular maintenance costs.

Net present value (NPV) is a popular method for considering financial factors beyond the simple payback. It calculates a positive cash flow. This occurs when your annual benefits exceed the annual costs. NPV considers the life expectancy of the item, the cost of money, inflation and other possible factors. SImple payback may take many years, but if you a positive cash flow the purchase makes sense.

The most holistic approach is lifecycle analysis. Here we try to evaluate all costs and savings over the lifetime of the item. Everything from salvage value to disposal costs. This method gives the most accurate analysis. Many are trying to add environmental costs into this approach. Obviously this method requires research and some subjective decisions. Some factors are intangible. Included are things like greenhouse gas reduction, the security of having a brand new item, added comfort, increased home value, etc. A good example is double pane windows. They not only save energy, but also reduce outside noise which may be important, but hard to put a price on.

Confused??? Look at Select Cost Analysis Method , or for great calculators visit Energy Cost Calculators.

To PV or not to PV?

Solar power has received a strong endorsement from the government here in California. The goal is to place electricity generating solar panels, referred to as photovoltaics or PV, on one million roofs in the state. Large rebates are being offered bring down the cost and encourage the purchase of systems. Our governor's vision is to make California a world-wide leader in solar power. Currently Japan and Germany, are the world leaders in solar power.

The question on people's minds-- is PV practical for the average homeowner or small business operator? While most people support PV,, on a gut level, when they price the systems, often $10-20,000 installed, they begin to question if it makes sense. Without rebates, the payback time (meaning the time it takes for the electricity savings to equal the PV cost), can be over 12 years. A fifty percent rebate can half that number and many states in addition to California offer incentives.

The best analysis is not just a simple financial payback, but a careful consideration of all the factors. First of all, payback time is based on an estimate of the future inflation of electricity costs. Owning a PV system insulates you from rising electricity costs and provides security knowing that future electricity costs won't be affecting you much if all (some PV systems provide all of a home's electricity needs while others may supply only a certain percentage). While PV life expectancies are rated at around 25 years, many feel they will last up to 50 years. Assuming you stay in your home, free electricity in one's older years can be quite a relief. Even if you move from your home, the solar panels can add value beyond their actual cost when you sell.

One of the beautiful features of solar is that it produces the most electricity during the middle of the day when there is the biggest demand. Many electrical rates are moving toward time of use pricing where the rates are much higher in the middle of the day. With PV you can consume electricity during the peak periods without added costs or increasing overall demands which requires new power plants to be built. You help your state without having to turn down your air conditioner or turn off your appliances during the hottest part of the day. Additionally, you won't have to worry about utility company blackouts with your own generation of electricity.

How much value do you place on being part of the solution instead of part of the problem? How much is doing the right thing worth? Do you ever donate to charity? Even if you don't see an actual financial return on PV at this time, you will become a better citizen with PV. You will stop contributing to global climate change when you use electricity. You will support the growth of the renewable energy industry. You will be able to look young children in the eye and know that you are contributing to their future.

Many are waiting for future improvements in the solar industry that will increace efficiency and drive down costs. So, shouldn't you wait? No. There doesn't seem to be any great technological advances in the short term that will dramatically change the industry. Yes, there is a lot of research on many great new ideas for solar from flexible plastics to nano-technology, but these are probably many years out before they are readily available and affordable. Also, as technology advances and prices come down, the government incentives will fade away. If you live in California, now is definitely the time to seriously consider PV for your home or business.

Hybrids- This Could Be the Right Time


Is now the time to buy a hybrid vehicle?

It is definitely time to take a serious look at this technology. For starters, everyone's first question seems to be- can it save me money? One of the best ways to analyze your potential savings is to use the hybrid calculator. This will let you compare your current vehicle with a number of different hybrids and show savings based on different prices for gasoline.

Typically, a vehicle with hybrid technology costs for $2-3,000 more. However, this can often be offset with savings from tax credits, deductions, and rebates equal to or even exceeding the increaded cost. For 2006, there are federal tax credits for hybrid vehicles. The Toyota Prius can provide a refund of $3150 on your 2006 return. The tax credits only apply to the first 60,000 sold of any model. Many states have other incentives such as the use of carpool lanes.

So, let's say you're still not sold (although with current gas prices, that's hard to imagine). How do you feel about being a good citizen on planet earth? Burning one gallon of gasoline produces 20 pounds of carbon dioxide! Driving a hybrid can save tons of carbon dioxide, the main driver of global warming, from our atmosphere. You will also greatly reduce other pollutants which cause a variety of problems from health issues to environmental damage.

Discussions of hybrids turn to a myriad of other issues from oil dependency to support for new technology. Combining practical efficiency with a bit of idealism makes the purchase of a hybrid the right choice- NOW!

College Green Power Challenge

The Environmental Protection Agency has challenged colleges to buy green power. They have set up a webpage- 2006 College and University Green Power Challenge.


The EPA now buys 100% of its electricity needs from renewable resources. They are encouraging colleges to follow their lead with the challenge. The webpage is fun to follow the competition between athletic conferences. The Ivy League is leading the challenge. But why is Dartmouth, the Big Green, not showing any green power?

This is part of the EPA's Green Power Partners program. Check it out and see if you can get an organization to join up. It is a great program and helps support organizations in becoming more environmentally responsible. Ask companies you do business with if they are green partners.

Tuesday, September 26, 2006

Seal & Insulate- Stop the Heat and Save Money


Appoximately 60 percent of existing homes are inadequately insulated according to a Harvard Study. Air leaks and poor insulation can increase energy bills by 40 percent or more.

Perhaps the simplest way to increase your home's energy efficiency is to seal air leaks and add insulation. It is a cost-effective way to lower energy bills and make your home more comfortable. It's important to control the movement of air and heat between the interior of your home and the outside world. The exterior of a home is referred to as an envelope. Improving the integrity of this envelope can often be done by a homeowner.

Let's start with air leaks. These are gaps, cracks, or holes where air passes in or out. We pay to condition air by heating it in the winter and cooling it in the summer. The most common methods to seal air leaks are caulk, spray foam, and weather-stripping. The attic and basement are the most common areas for costly air leaks. Other places to consider are doors, windows, light fixtures, chimneys, and holes for pipes. Small openings can be sealed with caulk either applied from a tube or inexpensive caulk gun. Spray foam is also very effective and readily available from home improvement stores. Weather-stripping is as easy to apply as tape and comes in various sizes and styles. It is most useful around windows and doors.

Insulation is designed to prevent the flow of heat. It keeps your home warmer in the winter and cooler in the summer. The older a home is, the more likely it could benefit from increased insulation. Insulating walls and floors also helps maintain temperatures and thus saves money. The easiest type of insulation for the homeowner to install are bats or blankets of rolled insulation. These are simple to cut and roll into place in the attic (assuming your attic has room to manuever). Insulation is rated by resistance to heat flow referred to as an R-value. The most practical efficiency is based on a region's climate. An R-30 value is generally recommended for attics in moderate climates, while up to an R-50 value is suggested for very cold regions.

A good site for information on insulation, including links to energy saving calculators, is Simply Insulate. The Federal Government's Energy Star site offers a great publication entitled A Do It Yourself Guide to Home Sealing.

California & Sao Paulo Prove It Can Be Done

One of the biggest barriers to greenhouse gas (GHG) reductions has been the practical question- what are the economic costs? California and the Brazilian state of Sao Paulo demonstrated that actual savings-- to the tune of tens of billions of dollars-- can be realized while reducing emissions. GHG reduction programs in these two states include electricity conservation, land-fill methane usage, ecosystem restoration, renewable resources, efficiency standards for buildings, and other innovative measures.

A report published in December 2005, shows economic and health benefits acheived while reducing greenhouse gas emissions. The document, No Reason To Wait, discusses the benefits of GHG reductions in Sao Paulo and California. These two states were able to take actions that went beyond "business as usual" to gain significant reductions in GHG emissions. Rather than the high costs often associated with emissions reduction, economic and health benefits were documented. Sao Paulo and California will cooperate in efforts dealing with air quality, alternative fuels, energy efficiency, renewable energy, public transit, forestry, and educational programs.

For over 30 years, California has been able to maintain a constant per-capita electricity consumption while the United States as a whole increased by 50 percent. The net economic benefits in California are approximately $1,000 per person and have saved $56 billion through 2003. WIthout the energy measures, air polllution from stationary sources would have been 50 percent greater.

The report is full of data supporting practical efficiency. More documents related to climate change can be found at California Climate Change Portal.

Compact Fluorescent Lights


Compact fluorescent lights (CFLs) are perplexing experts in energy efficiency. Why is it that people will not switch to this technology when it makes so much sense?


According to the Energy Star website, if every house in the US replace just one incandescent light bulb with a CFL, it would reduce pollution equal to removing one million cars from the road. CFLs use about 70% less electricity and last 10 times as long. Each bulb can save approximately $35 depending on electricity costs.

The advantages are numerous and include:

  • use one quarter the electricity producing the same amount of light
  • last ten times longer
  • less hassle changing light bulbs and buying new ones
  • save money, often paying back the investment in only months
  • reduce heat production thus decreasing cooling costs
  • reduce pollution and global warming
So why not buy new bulbs and dispose of your incandescents? The newer CFLs come in different shapes and differing light colors. And, you can often find these lights deeply discounted with instant rebates.

Some groups, like Ban the Bulb , want to stop further sales of incandescent lights. Exercise your freedom, and your brain, by choosing CFLs now.