Go Solar!.... or Don’t?

Wow, that was the question last week at the Greening Midwest Communities conference in Jefferson City. An green architect challenged the sensibility and true benefit of solar panels. Here we are at the beginning of the “Green Rush” and someone is questioning solar of all things. I mean how much greener could you be than solar.

We are in kind of a rush to get green. We can’t get enough of solar panels, wind farms and geothermal technologies. I am always asked about whether someone should add solar panels to their home and would that add additional value to their home when they sell.

I stop to think about value. Is value having something you love or want for your enjoyment or to support your belief system or is value something that makes you money? So, I guess that is the decision that needs to be made before the “does it add value” question can be determined. What is Value, what is Valuable?

If I look at solar as an investment value, I need to see the Return on Investment, the ROI. With the significant incentives though the federal solar tax credits and from Ameren’s local solar rebate program, your ROI is greatly improved.

I like to look at the end cost of solar and compare that to the monthly cost to finance the purchase. If you are able to get a home equity loan that has a 20-30 year term, you would hope to save as much or more than your payment. Keep in mind that your ROI position will improve at every rate increase.

If I take an emotional look, solar may make me feel better. I like to feel better! There are so many improvements you can make to your home that benefit your life more than they increase your home’s value. Sometimes what makes you feel better may make someone else feel better. That may mean you do not get the full value back when you sell, but you may sell quicker because of the improvement.

In the end, I believe it usually just comes down to, “What’s the best bang for the buck?”  That is where the "green benefit pyramid" comes in.

Just like the food pyramid, it makes sense to use this recommendation style for greening up a home. The attached photo shows a very detailed green pyramid for consideration.

Let’s simplify that pyramid. The base quite simply is to seal your home first; caulk, insulate and foam every air leak. In addition, remove or do not bring pollutants into the home in order to maintain better indoor air quality.

The middle of the pyramid is where you find your lighting and heating and air conditioning systems. When you replace your lighting, consider CFL’s or LED’s. When upgrading your HVAC, consider high efficiency models with variable fan speeds. At the top of the pyramid is the “Green Bling”. This is the really cool stuff, and it is great!

But read closely now… The base of the pyramid brings you a greater return on your investment. You will spend 20% of your money there and get 80% of the total benefit available. I think what that really means is, build your pyramid completely. Start with the base and work your way up as your budget allows. You will be more comfortable and you will be more efficient.

Go Solar? Well I think that if you really want to go solar and you are willing to make the common sense, base of the pyramid, improvements first; then I say … “Go Solar!.... or Don’t!”