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Home Value Increases with PV
By Ben Hoen, Ryan Wiser, Peter Cappers, and Mark Thayer
Environmental Energy Technologies Division
Lawrence Berkeley National Laboratory
April 2011
The market for photovoltaic (PV) energy systems is expanding rapidly in the United States. Almost 100,000 PV systems have been installed in California alone, more than 90 percent of which are residential. Some of those PV homes have sold, yet little research exists estimating if those homes sold for significantly more than similar non-PV homes. A clearer understanding of these effects might influence the decisions of homeowners considering installing PV on their home or selling their home with PV already installed, of home buyers considering purchasing a home with PV already installed, and of new home builders considering installing PV on their production homes.
To determine whether PV homes sell for significantly more than comparable non-PV homes, Berkeley Lab analyzed a dataset of approximately 72,000 California homes, almost 2,000 of which had PV systems installed at the time of sale. The study also investigated whether premiums for PV installed on new homes were different than those for PV installed as a retrofit on existing homes, and whether the age or the size of the PV system impacted premiums.
A large number of hedonic pricing and difference-in-difference models were used to ensure that the results were robust.
The research finds strong evidence that homes with PV systems in California have sold for a premium over comparable homes without PV systems. More specifically, estimates for average PV premiums among a large number of different model specifications coalesced near $17,000 for a relatively new "average-sized" -- based on the sample of homes studied -- PV system of 3,100 watts (DC). This corresponds to an average home sales price premium of $5.5/watt (DC), with the range of results across various models being $3.9 to $6.4/watt.
These results are similar to the average increase for PV homes found by Dastrop et al. (2010), which used similar methods but focused on homes in the San Diego area. The average sales price premiums also appear to be comparable to the investment that homeowners have made to install PV systems in California (after applicable state and federal incentives), which from 2001-2009 averaged approximately $5/watt (DC) (Barbose et al., 2010), and homeowners with PV also benefit from electricity cost savings after PV system installation and prior to home sale.
When the dataset is split between new and existing homes, PV system premiums are found to be markedly affected, with new homes with PV demonstrating average premiums of $2.3 to 2.6/watt, while the average premium for existing homes with PV is more than $6/watt. The report offers a number of possible explanations for why this disparity might exist, including differences in the underlying net installation costs for PV systems between new and existing homes. Additionally, new home builders may gain value from PV as a market differentiator, and have therefore often tended to sell PV as a standard (as opposed to an optional) product on their homes and perhaps been willing to accept a lower premium in return for faster sales velocity and decreased carrying costs.
The research also finds that, as PV systems age, the premium enjoyed at the time of home sale decreases, indicating that buyers and sellers of PV homes may be accounting for the decreased efficiency and remaining expected life of older PV systems.
When the results are expressed as a ratio of the sales price premium to estimated annual electricity cost savings associated with PV (see figure below) they are consistent with those of the more-extensive existing literature on the impact of energy efficiency on home sales prices; the present research finds an averages range from 7:1 to 31:1, with models coalescing near 20:1.
Applicability
Although this research finds strong evidence that homes with PV systems in California have sold, on average, for a significant premium over comparable homes without PV systems, the authors recommend that extrapolation of these results to different locations or market conditions be done with care.
Further Research Warranted
The report outlines a number of additional questions that warrant further research, such as investigating more-recent home sales (the report's dataset spanned 1999 thru 2009) from a broader geographic area (the dataset included only California homes), and further investigating the difference in premium between new and existing PV homes.
References
Dastrop, S., Zivin, J. G., Costa, D. L. and Kahn, M. E. (2010) Understanding the Solar Home Price Premium: Electricity Generation and "Green" Social Status. UC Center for Energy & Env. Econ., Berkeley, CA. Dec 9, 10. WP-001.
Barbose, G., Darghouth, N. and Wiser, R. (2010) Tracking the Sun III: The Installed Cost of Photovoltaics in the U.S.
The full report can be downloaded at http://eetd.lbl.gov/
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Renewable's Role in North Carolina
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GE invests in makers of solar power air conditioners & 11 others
November 16, 2010
Lora Kolodny
GreenTech
http://www.climatewell.com
At a conference held by General Electric (GE) this morning in New York, chief executive Jeff Immelt revealed his company’s plans to invest $45 million in twelve digital energy, or smart-grid related companies— the first of several investments planned through the company’s Ecomagination business competition.
The newly funded entities include: ClimateWell, Consert, FMC-Tech, Ltd., The Fu Foundation School for Engineering And Applied Science at Columbia University, Joulex, OPOWER, Scientific Conservation, SecureRF Corp., Sentient Energy, Soladigm, SustainX and SynapSense Corp. Venture capital partners working with GE on this competition— Emerald Technology Ventures
, Foundation Capital, Kleiner Perkins Caufield & Byers, and Rockport Capital Partners— will invest $10 million into these first twelve winners, as well.
Five of the funded startups are involved in grid management, five in energy efficiency for data centers, commercial buildings or homes, another is working to connect a New York City utility to the smart grid, and one has desigend a solar-powered air conditioning system.
Beyond the $200 million of investments in clean tech businesses through its competition, GE also revealed today that it will give out five $100,000 cash grants to support companies with earlier-stage ideas to: CapStone, ElectricRoute, GridOn, IceCode and WinFlex. GE is also planning to spend $12 million on scholarships and university programs to develop clean tech talent domestically, over the next few years Immelt revealed.
First Twelve Innovation Funding Recipients From GE Ecomagination Challenge
ClimateWell, Stockholm, Sweden (Efficient Appliances)
ClimateWell’s energy-efficient cooling and heating systems run on solar-powered hot water rather than electricity, maximizing energy efficiency. This technology translates into a significant reduction of power consumption and carbon emissions. While initially targeting operations like hospitals or commercial buildings, GE is working with ClimateWell on deploying this technology in additional markets already served through GE’s appliances business.
Consert, Raleigh, NC (Energy Management Systems and Software)
Consert’s demand side energy management solution empowers utilities, municipalities and co-ops to manage load curtailment, increase operations efficiency and act as a virtual power plant. Consert’s technology complements GE Digital Energy’s existing solutions to meet the unique needs of these market segments.
FMC-Tech, Ltd., Shannon, Ireland (Intelligent Sensor Technologies)
The power line monitoring system for medium voltage networks serves as a nervous system for the smart grid and has applications for GE’s Smart Grid Delivery Optimization. It integrates overhead line sensing, data storage, and wireless communication to a local controller to detect and locate faults in the smart grid and manage distribution communications, providing a platform for the present and future needs of the network.
The Fu Foundation School for Engineering and Applied Science, Columbia University, New York, NY (EV Charging Stations)
A new collaboration with GE, Columbia Engineering, FedEx Express, and Con Edison to enable the conversion from hydrocarbon to electric delivery vehicles in New York City. Columbia Engineering’s technology, developed by its Center for Computational Learning Systems, manages load and delivery and links electrical vehicle charging stations to the utility’s electric distribution management system in real-time. FedEx is providing and operating the all-electric vehicles that the collaborative team will study. In addition to providing funding, GE will supply expertise from its Digital Energy division and GE’s Global Research Center to support this program.
JouleX, Atlanta, GA (Energy Management Systems and Software)
JouleX provides a single, network-based, energy-management solution. The JouleX Energy Manager monitors, analyzes and automatically adjusts the energy usage of a network’s connected devices and systems. It has the potential to reduce energy consumption by 30-60 percent. It will enhance GE’s data center solutions to help customers reduce energy consumption in the data center. In addition, the technology will enhance Demand Response Management System capabilities in GE’s Digital Energy business.
OPOWER, Arlington, VA (Energy Management Systems and Software)
OPOWER integrates consumer demographics, energy consumption data and behavioral analytics to encourage households to make intelligent choices around power consumption in their homes. The average user reduces consumption by about 2.5 percent per month, helping to deliver savings. With GE’s global work in Smart Metering and Automatic Metering Infrastructures, OPOWER can help utilities secure buy-in from consumers and public utility commissions.
Scientific Conservation, San Francisco, CA (Energy Management Systems and Software)
This platform monitors and manages energy drift in commercial buildings through predictive maintenance of core energy systems: heating, ventilation, air conditioning, refrigeration, lighting, controls and renewable sources. Using its patent pending diagnostics, it typically improves efficiency covering the cost of installation in less than two years. The technology has applications for GE’s Intelligent Platforms building management software business and provides conservation opportunities for GE’s real estate portfolio and GE buildings.
SecureRF Corporation, Westport, CT (Utility Security)
SecureRF provides security solutions that address lower-powered embedded devices that will be used throughout the Smart Grid. Its Algebraic Eraser(TM) is a public-key cryptography method designed for resource-constrained devices like meters and sensors. GE’s Digital Energy business can draw on this security technology for the smart grid to help utility customers alleviate consumer privacy and data security concerns.
Sentient Energy, Burlingame, CA (Intelligent Sensor Technologies)
Sentient develops advanced grid monitoring solutions that consist of modular intelligent monitoring devices and software applications, enabling cost-effective distribution automation. It improves fault location, cause analysis and remediation, grid capacity management, and utility workforce utilization, presenting integration and partnership opportunities for GE Energy’s Digital Energy offerings.
Soladigm, Milpitas, CA (Building Efficiency)
This window technology electronically switches glass from clear to tinted, enabling control of heat and glare. It can reduce energy usage for heating, ventilation and air conditioning (HVAC) systems by 25 percent and reduce the HVAC peak load by 30 percent, an important tool to level demand for the future smart grid infrastructure. With GE’s green homes and green hospitals ecomagination programs, its zero energy home program and other energy efficiency initiatives, there are multiple paths for commercial relationships with the technology.
SustainX, West Lebanon, NH (Energy Storage)
This technology provides isothermal, compressed-air energy storage technology to enable cost effective, grid-scale energy storage. SustainX’s approach has the potential to be less than half the cost of traditional compressed-air energy storage. The technology presents opportunities for collaboration with GE’s Global Research Center and commercial partnership opportunities with GE Energy to commercialize energy storage applications and to enable a higher percentage of renewable power generation in markets like Europe.
SynapSense Corporation, Folsom, CA (Data Center Services)
Using a robust wireless sensor network, SynapSense’s solutions measure and manage the environmental conditions and power usage throughout data centers, resulting in a 10 percent reduction in overall energy consumption for typical, enterprise-class data centers. The technology offers commercial relationship opportunities with GE’s Digital Energy business and its Intelligent Platforms business with its visualization and energy management offerings.
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Energy panel wrestles over N.C. legislative agenda
Charlotte Business Journal
September 3, 2010
John Downey
charlottebusinessjournal.com
Gov. Bev Perdue's representative told the N.C. Energy Policy Council last week the legislative recommendations it is preparing must be concrete, must create jobs-and must come soon. Al Delia, Perdue's policy director, visited the council Aug. 25th to emphasize the importance the governor places on its work. She reconstituted the group last year and gave it a mandate to develop policies that would make North Carolina a leader in a low carbon energy economy. From the start, she emphasized the need for legislative and policy initiatives that would lead to job creation in the renewable-energy and efficiency market here. There's good reason to believe North Carolina will be able to benefit economically from greener energy policies and practices.
The Center for American Progress and energy investment firm Energy Resource Management Corp. recently issued a report identifying the states with energy-efficiency markets most likely to create jobs and foster economic development. North Carolina ranks eighth on the list of 50. Delia told the council the governor will need any recommendations that have budget implications by mid-November. That would include tax credits or incentives for instance. Policy recommendations can come later, he said. But he reminded the council the General Assembly reconvenes Jan. 23. The November deadline is nearly two months sooner than the council had been working under. And after Delia left the meeting, council members struggled for hours trying to solve problems in the energy sector. Chairman Tim Toben said the exercise was wothwhile. The council has been gathering information for months, he said, and now it is settling down to resolve the thorny issues and make its recommendations.
Still, the council had difficulty deciding whether it even wanted to make a package of specific recommendations or simply present the governor with a menu of possible energy proposals. Toben and Cy Rich, of the private firm Fuqua Rich Weeks, were among those who came down strongly on the side of specific recommendations. Toben said the council had been carefully chosen to represent as many energy stakeholders as possible. He felt certain that any recommendation that enjoyed the council's support will have to be seriously considered by Perdue and the legislature.
Rich said a broad statement of possible options "neuters the Energy Policy Council. If we present the Chinese menu we lose all of our force." The General Assembly's 2011 session is shaping up as an important one for energy legislation. The state's utilities clearly plan to ask for legislation to make nuclear power plants, and perhaps other base-load facilities. Perdue has dropped a marker as well on green energy development. And many in the renewables and transporation industries want to make sure their issues are addressed if the utilities are going to press for their agenda.
Duke Energy Corp. lobbyist George Everett represents the electric utilities on the council. He said the utility could go along with almost anything the council agreed on. "We are indifferent about what the policy is, " he said. "More renewables and more base load, it does not matter to us. We will follow the state's rules. " Markus Wilhelm, of Strata Solar, scoffed at that statement. The utilities always favor regulations that protect their interests, he said. And indifference to policy seemed to him an odd stance for the council. "Isn't it our job to shape policy?" he asked.
With the help of a consultant, the council is to set out the questions it must answer to make the policy and legislative recommendations the governor wants. Jennifer Bumgarner, the N.C. Department of Commerce's assistant secretary for energy and a council memeber, told the group a contractor has been chosen for a new report on the potential for renewables in the state. That study will be used to determine if the council should recommend that North Carolina increase the requirement for utilities to provide energy from renewable sources and efficiency programs.
The current law requires utilities to produce 12.5% of the power sold in the state from such sources by 2021. Many on the council think that is too low. The issue was last studied in North Carolina four years ago. The council wants that updated with more details to what is feasible. LaCapra and Associates, which did the 2006 study, will prepare the new report, due in October, Bumgarner said.
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What if solar received the same subsidies as the utility?
The history of coal, natural gas, oil, and propane are filled with subsidies from every level of government. This link shows a comparison of subsidies solar and fossil fuels in today's energy sector.
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Terra Vita Food and Wine Event in Southern Village
October 16, 2010
Terra meaning “of the earth” and Vita meaning “life,” captures in its definition the very spirit of this event. The first of its kind, TerraVITA Food & Wine Event will bring together some of the finest biodynamic and organically-grown wines and microbrews in the world with the very best locally-grown organic edibles in the Southeast! The event will be held in Southern Village on October 16th from 1 - 5 pm. . Strata Solar will use a small "stand alone" PV system to provide electrical power for of the event.
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Orange County Solar Energy Home Tour
October 9 , 2010
Come join Strata Solar, LLC for a tour of residential and commercial of solar energy systems. The tour will highlight different applications of photovoltaic and solar thermal systems of all sizes. In addition the tour will also highlight other sustainable building features. The tour will be conducted on October 9th, 2010 from 10 am - 4pm.
Prior to the start of the tour, the information packet will be made available to registered guests. For additional information please call (919) 960 - 6015 or email us at info@stratasolar.com .
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Schuco sponsor Martin Kaymer 2010 PGA Champion
August 16, 2010
Click here to read the Schuco press release about 2010 PGA Champion Martin Kaymer.
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Earth Action Day in Southern Village
April 10, 2010
Strata Solar / Solar Tech South joined in the celebration of Earth Action Day festivities sponsored by the Town of Chapel Hill on Saturday, April 10th. Event attendees were able to share environmental health choices and learn how our lifestyle choices affect the Earth. Earth Action Day events included a performance from the Paperhand Puppet Intervention, local food vendors, and local green businesses. The event was held at Southern Community Park off U.S. 15-501 near Southern Village.
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Boy Scouts Meeting at Lake Lure Campgrounds
April 12, 2010
Strata Solar / Solar Tech South encourages the development of teaching our community and youth the benefits and basic principles of solar energy. Boy Scout Troop 314 from Raleigh, NC participated in a camping event at Lake Lure with no electricity connections and only utilizing solar power. Strata Solar / Solar Tech South taught the Boy Scouts techniques on solar cooking, solar electricity, and solar hot water. They also studied the effects of increases in carbon and how it impacts our environment. The troop then utilized our information to provide essential power and cooking techniques for outdoor education. We would like to thank Troop 314 for their excitement and eagerness to learn more about solar.
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Earth Day at The Environmental Protection Agency (EPA)
April 20, 2010
The Environmental Protection Agency (EPA) employees gathered at a company sponsored Earth Day event on April 20th, held on location at the Research Triangle Park EPA location. Strata Solar / Solar Tech South participated, along with other green and sustainability conscious vendors, with display models of solar thermal panels and information about our products from Schuco and home energy saving tips. A representative from Strata Solar / Solar Tech South was available to discuss the features and benefits of solar.
