Your growing family just isn't fitting in that apartment. It's time for your first home ... And you being a patriotic American want it to be Green and save Energy. Sounds Logical...

With apologies to all the Solar Professionals like Terry Shelton who really believe the "Fix The House First" gospel. We need more like you!

I’m sure you’ve noticed there are two poles of belief about what’s important in Residential Energy Conservation … Basically Conservation or Renewables.   The Conservation Camp says, “Design it right, Build it tight, Vent it right, Insulate the heck out of it, and your heating and cooling costs will be so low that you wont really need Renewables (solar, wind, etc).     This is the mantra of most Home Performance groups and it makes a lot of sense … especially in new construction.   It’s a little more difficult to go “all the way” in retrofit situations where the initial poor design was poured in concrete.

The Renewables Camp promotes renewable sources of energy, Solar, Wind, etc.  usually giving only a nod to Conservation, with most of the promotion and marketing directed toward whatever renewable product they happen to be selling.

It should be clear that we need both Conservation and Renewables to achieve our Energy and Climate goals.   The questions then, are ones of priority and balance.   It’s obvious to me and I hope to you that we should first conserve everything we can as cheaply as we can.  Especially in new construction, the added cost of a really tight, well insulated structure is so small that it should always be a first priority.   Building “to code minimums” is almost criminal when it would cost so little to do so much better.   Did I mention that I support stronger energy standards?

After we’ve done everything practical to improve our Home Performance, it’s time to direct our attention toward renewables.

But before we go there, let me take a stab at defining “everything practical.”    The “Energy Package” that I refer to on this site and in my classes is designed for renovation of foreclosed homes of 1000 to 1500 square feet and of 25 to 50 years of age.    Older and larger will cost more, this is offered only as a starting point.   It is a package that can be “slipped in” to a renovation of a foreclosed home with little or no stimulus or utility incentives and be sold for a profit in just the plain old American Free Enterprise System.   Here’s the package, in some semblance of order … dont try to pick and choose.  Complete systems are needed for complete solutions.

1.  Shell Seal of the whole house, especially the attic and the floor.

2.  A newly designed and well sealed and insulated duct system.

3.  A well tuned HVAC system, designed for the lower load.

4.  Lo E Windows,

5.  R-50+ Ceiling Insulation.

6.  Wall insulation.

7.  Energy Star Lights and Appliances.

8.  Efficient water use and heating,

9.  and a few other items …..

That usually costs $20 – $25,000 in houses of this size and age.   If you’re greening up a Mc Mansion, you can spend double that or more.  (Historical Homes and Architectural Wonders also add to the cost)

So the point is that this is the amount of money that should be spent on Conservation before we turn our attention to Renewables.    Until these items are addressed, it just doesn’t make sense to add renewables … it would be more cost effective to finish up this basic energy package before adding Solar or Wind or ?

I’ve spent most of my life and most of my blogging and teaching on Fixing The House First.   But I’ve recently come to two places where it’s time to move on to renewables:

1.  All the GreenEarthEquities homes have the Energy Package mentioned above.   They are saving 30% to 50% and are all sold, leased or rented at above “market rates” with no federal or utility stimulus — just free enterprise in America.    So, practicing what we preach, it seems like it’s time to push the envelope a little bit more and start adding renewables.    We’ve installed our first Solar PV system on one of our renovation projects and are considering ways to include them on every project.  … More in future posts.

2.  I just moved into a brand new home (in the Blue Ridge Mountains of Virginia — cheap kilowatts and 4000 Heating Degree Days)   Being built by a production builder, it’s not exactly what I would have done … but other than a few items to finish up, Luelle is not ready for me to start tearing out the brand new stuff.    So, here also, I’m turning my attention to renewables.   I’ll be blogging about Solar, (both kinds)  wind, and Bio-Mass Gasification and residential power generation in future posts.

Luelle says, "No way is it time to start demolition. We just moved in! This is on a "Cruise to Nowhere" Travel agents need to check out these new ships. I'm doing my part, protecting her from pirates! Dont laugh. You haven't heard of any pirate attacks on cruise ships. So my work must be working!

That's the Miami skyline on this trip to nowhere. The cruise line wants the travel agents to experience the ship ... so we are not distracted by destinations ... we just do laps about 20 miles off the coast. And it gives me a chance to catch up on my blogging....

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1.  There are twice as many Heating Degree Days in my part of Virginia compared to my part of California, (Fresno)    (About 4000 compared to about 2000.)

It was starting to be fall on the Skyline Drive when I arrived 6 weeks ago. Now it's fall everywhere.

This would seem to indicate a need to build better and tighter … and a greater interest in Energy Efficient Building … And there is some interest at a philosophical level.   But when it comes down to the bottom line, the cheap kilowatts keep the interest down.    (About 7 cents here vs 12 to 48 cents in CA.)   I’m not exactly sure why that disparity is so great … I think it has something to do with cheap coal from mountain top mining in West Virginia, our next door neighbor….    Why California kilowatts cost so much,…  I’m leaving that to my home performance colleagues and the new governor…  In the meantime, I’ll be looking for a way to get Virginians who only pay 7 cents a kilowatt interested in buying energy efficient renovations.   I’ll keep you posted.

2.  Production Builders are Production Builders.    I think Luelle and I chose one of the best,  K Hovnanian,  but for a guy who just came back from the Passiv Haus conference  in Germany, loaded with the best energy saving technology on the planet … it was hard to accept not being able to change anything … at least not energy wise.   Other than that, the team did a wonderful job and the house is beautiful.    It will give me many projects to blog about here as I “finish it up.”

3.  I just finished installing my TED  , The Energy Detective.   It’s the old model 1000, that I’ve had for several years, and brought with me from California,  still a good monitor, but without the bells and whistles of the new model 5000 which will read out thru Google Power Montitor.   I hooked up the CT’s in my breaker box and programed in the electric rates and “Voila!”  Reverse sticker shock … I’ve been watching the monitor for a half hour now … the cost per hour cycles between 3 and 6 cents per hour!    It’s going to be even more of a challenge to get people interested in saving energy with these cheap kilowatts.    But I have a plan … I’ll post the progress here.

BTW I shot a video of installing the TED.   It’ll be up in a few days.    It’s really easy to install and I recommend everyone have one … Unless you want to move up to the next level and monitor every circuit with the e monitor.

I just finished installing my old TED that I brought with me from California. Programming in the Virginia power rates was an eye opener. About half of the "lifeline" allowance that I had in California. !!!

I’ll video the install of that one too after it arrives.     The feedback is really cool.   Some will confirm what you already suspect … and some will surprise you.   In either case, you’ll change your power management and save money!

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Our next project. See that palm tree and fireplace? They both have to go. They are messing up my Solar Exposure!

We are in escrow to purchase our first property from a “Wholesaler.”    I didn’t see it coming, but I’m glad I got a call a couple of weeks ago from Sam Okenyi & his partner, Chris Williams.    They were familiar with our Green Renovation and Classy Remodeling work from our job sign and our CraigsList ads and knew that we would be the most likely buyer on their list if they could just get us to take a look at it. (See video of my interview with Sam and Chris) They had found a real mess of a house, un-permitted additions, everything worn out, and a previous attempt at a duplex conversion and had it under contract with a few days left to find the buyer.

Fortunately I had just jumped back into the market after taking a break to evaluate my first 10 transactions and make any adjustments to the mission that might be needed.   Here’s what I had found:

1.  All 10 jobs were complete and sold or in lease or lease option status.

2.  We made money on all of them,  from $2,000 to $28,000 each.

3.  We always sold for about $20K over the rest of the neighborhood because of the value of our renovations

4.  Appraisals came in OK except for the last one, which we are providing details the appraiser missed.

5.  2008 – 2009 was a lot different than the beginning of 2010.   A contributor to this was the $8K tax credit which stimulated all the players and made good deals harder to find.    The “Crazy Time” provided a good opportunity for me to slow down and finish up all projects and evaluate.

6.  Time to get back in the market.   I made 5 offers in August, one still has life in it.    The “retail” market has returned to acceptable levels where some good deals, (not killer deals) are available.   In the interim, I had investigated the courthouse steps, (too much work for my taste), direct mail, (lots of sellers wanting to sell, but once again, not my style)   So I was ripe for a wholesale offer.

The great thing about buying from a wholesaler if they have secured a really good deal and provided me with a good clear package is the amount of time it saves me.    Sam had emailed me a clear package with his analysis and the comps.   So when I met him on the job, I was already educated enough on the area to say, “Let’s do it!”

I made it clear to Sam and Chris what we are looking for,  Real Ugly Houses.    Guess what?  Now that they know that,  and know that we are real buyers, they will pull out all stops and really start combing the neighborhoods for us.   It’s a Win – Win.    I’ve added a marketing department to my team.   And I dont have to pay them unless they produce.    What a country!

Wholesalers are probably like Teachers (I used to be one)    The good ones are way under paid and the bad ones are over paid.   What makes a good wholesaler that is worth the spread that they earn, between what they secure the property for, and what they sell it to me for?     These 3 things are important

1.  They aren’t trying to get rich on one job.    (They know the buyer has to make a profit, or they wont come back for seconds)

2.  They communicate clearly.   They know what I want and make a clear presentation

3.  They know how to do same day closings and work with an experienced escrow person.

If all that’s in place, a good wholesaler can save you a lot of time.   If you’re interested, you can call Sam at 559 394 9505 or Chris at 559 593 2987.      Or check out the 3 part Video Interview of me interviewing them

We talked about Wholesaling in General and how wholesalers and investors can work together as a team.

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This week I installed a Photovoltaic Solar System on one of my renovation houses.    The fact that it was on a rental is where my friends thought I took leave of my senses.

But I’m liking the idea more and more as the results are unfolding. It looks like the ultimate Win, Win, Win, Win, Win.    You see, I had made a classic Investor mistake:   I had mis-judged the neighborhood and over built for what the neighborhood would appraise for.   I wanted a sale price of $160,000 for the completely renovated 1200 square footer with energy efficient everything in Fresno CA.   The appraiser said $153,000, so I could absorb the $7,000 hit or change strategies and play a different game.

Here’s the new game plan:

1.  Refinance and get all or most of my money back so I can continue in the Energy Wise Investment game.

2.  Advertise for the highest rent in the neighborhood.   (This is easy when you’ve mastered the Wow! factor.)

3.  Add Solar to bring the Electric Bill close to Zero.    (This wont take much, because you’ve built a tight building envelope and a great HVAC system)

4.  Tenants will be happy with the rent  when they know the utility bill is going to come down more than enough to compensate for it.    (Educating the tenant cannot be left to chance)

5. You enjoy a strong positive cash flow.   And the tax credit and the rebate.

6.  Your tenant is happy and paying less monthly than if you hadn’t added Solar.

7.  You know you’re doing the right thing for the planet and the community

8.  And to come full circle: —The low-ball appraisal becomes irrelevant.

Unlocking the Puzzle We'll continue to investigate How, Why and When Installing PV Solar makes sense to the Energy Wise Investor.

That’s a lot to like and I’ll be putting Solar on more and more rental homes.

In the first 3 1/2 days the system has generated 100 kilowatt hours.   Here in Central California with our 5 tier billing system (PG&E) that means somewhere between $11 and $48.   Not bad for the 2.81 KW system in 3 1/2 days.     For more details see last Tuesday’s webinar slides in Planetsavers University right here on GreenEarthEquities.com.  Next Tuesday, I’ll interview Terry Shelton, the Solar Contractor on the Tuesday Webinar. We’ll talk more about the counterintuitive case where  It makes sense for Investors to put Solar on their rentals!!! If you haven’t already, fill out a comment form and we’ll send you an invite with details on each Tuesday’s Webinar.

BTW For some incisive thoughts on our housing stock and Home Star, see Arthur Beekin’s thought provoking piece in the Healdsburg Tribune. Whether Home Star passes or not, Energy Wise Renovators hold a powerful key to fixing our inadequate housing stock and saving our Planet, One House At A Time … Especially when their renovations are tight and efficient and then they go to Near Net Zero with a small PV system!    Stay tuned…..

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Criteria For Selection And A Little History

In the 1980′s Pacific Gas and Electric had a Weatherization Program that used the “Big 6.”   If I remember, it included Attic to R19, Caulking, Water Heater Wrap, Lo Flo Showerheads, Outlet Gaskets and some Pipe Wrap.     After a few years of looking at the results, it was decided that the Big 6 was having little impact on Home Performance and in many cases saved no energy at all.

Autopsy:  What’s went wrong with the Big 6?

Several factors can lead to disappointing results in energy saving plans.

1.  The items were included because they were easy to inspect.   They weren’t really the biggest opportunities avaialable at the time

2.  There was little customer education or buy-in.   Customers would replace the new showerhead with their old one because they liked it better.   The program finally had to start collecting and destroying the old models.

3.  There was no testing or thought about where to caulk.   Contractors knew only,  ”get some caulk on the building and bill the program.”   Installers knew even less,  ”the boss want some caulking, so give him some caulking.”   Some even got paid piecework so miles of lap siding got caulked…..   until that got stopped.

4.  In Sum,  It’s not bad to have 6 or 10 or 12 items to focus on.    The Big 6 were just the wrong 6 (except for the Attic,  and even that was wasted because it wasn’t preceded by a “shell seal.”

5.  With no testing or understanding of Building Science, any such prescriptive approach will include a fair amount of waste and provide minimal Home Performance.

But If I Had To Choose:

Home Performance can be broken into Two Basic Goals and Two Basic sets of Safety Questions.   If we break it up into systems, this is not rocket science.   The 2 goals are building a good envelope and providing a good comfort system.   The Safety Issues are Air Quality and Managing Water.

Before insulating the envelope, we must seal it.

1.  Shell seal the Attic.   The attic floor and knee walls and other BTU leakers

2.  Seal under any Raised Floor.  Shell sealing materials are the same as used in the attic.    Sealing the crawl space is an option here.

3.  Seal Thermal Bypasses and The Band Joists and other areas between the floor and ceiling.    This may be a little invasive,  perhaps removing some siding to gain access or drilling.  Sealing around new or existing windows.

4.  Seal the Ducts.  It’s almost always better to replace these and do it right than try to repair and seal existing ducts.   This is because even if you seal them, they will still be the wrong size, running to the wrong places, poorly insulated, dirty, and near the end of their lifespan (if they are flex) These should be tested to leak no more than 3% of the air going thru them.   If you think about it they are really part of the building envelope.   Just like the envelope is part of the plenum.   All leaks hurt building performance, and none more than duct leaks.

Stop and measure. With these 4 items addressed, it’s time to break out the blower door and duct blaster and run some tests. There’s no use adding insulation to a leaky envelope or leaky ducts.

5.  Attic Insulation.   After a tightly sealed attic floor, and addressing all heat producers you can proceed.     Getting Rid of  Recessed Lights or properly treating them for air tightness must be addressed at this point.  Plan your buildings to last 100 years.   Usually add about double what others are putting in.

6.  Wall Insulation.   If it hasn’t been done previously consider dense pack cellulose.     All knee walls need some help.    2 inches of FSK insulation usually covers it.    For deeper retrofits adding rigid foam to the outside walls can be a huge energy saver.

7.  Comfort System.   With Mini Split Heat Pumps producing SEER ratings up to 26 and able to heat down to near zero degrees, I am recommending them almost everywhere.  These should be tested to ensure that they are delivering the listed amount of BTU’s into the building.    No use paying for big claims and not getting delivered performance.

8.  Energy Efficient appliances and Lighting including Controls.

9.  Safety.   This of course includes Carbon Monoxide testing.   It can include other Air Quality testing such as Volatile Organic Compounds VOCs etc.   If our sealing efforts have been successful, we must Ventilate on Purpose with mechanical ventilation.  I recommend an Energy Recovery Ventilator or a Heat Recovery Ventilator for all jobs where the CFM50 rating is less than the floor area in square feet.

10.  Water.   This includes three aspects,  saving it, heating it, & keeping it out of our building.   Two stage toilets, water saving shower heads, low water landscaping plants and drip irrigation all address the saving issue.    Solar hot water, Heat Pump water heaters or condensing water heaters along with right sized PEX delivery systems and a simple heat recovery drain system are our tools of the trade for heating water efficiently.    Keeping water out may include grading to drain it away, french drains, & house wrap and a studious concern with the vapor barrier.

So there you have it.   A Top 10 list that would be appropriate for Home Performance in the “Average House”  (in my part of California)    Of course most houses aren’t average.  I’ve been told repeatedly that there are no average houses in Nevada City or Berkeley!    And in the Mixed Humid Climate of Virginia,where I’m going, things will will obviously change.     But because this list is based on Principles, rather than just a cook book,    they wont change that much.

Determining exactly how these 10 will be modified  on your particular building will make you think … and that’s a good thing!

I’d like to hear your version of a Top 10 list.    Post them in the Comments Section or over on the FaceBook Discussion Tab.

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There’s been a lot of talk about “Really Green” vs “Greenwashing.”   The biggest hit has been taken by LEED with Henry Gifford’s blistering presentation in April this year.  (Skip to the last paragraph for Henry’s true feelings.)  Henry showed how LEED and other points-based rating programs can entice designers to specify gizmos that are currently popular at the expense of tried and true design concepts that dont garner as many points.

First Time Homebuyers, Juan, Corrin & their new son. Although they didn't receive a plaque or certificate or a computer prediction, they are happy about their new home and especially the low utility bills and the comfort of the home.

This results in many LEED buildings costing more to operate than the equivalent non-LEED buildings.    Henry suggests that simply monitoring the energy usage (and continuing to monitor it and publish it) is the best way to move us toward energy independence.

What a great idea, Henry!   That’s what we do here at GreenEarthEquities.   Today I stopped by to pick up the utility bills of one of our buyers participating in our “We Pay Half” program. That’s where we pay half of the Utility Bills for a period of time, usually 2 years.    It allows us to put our money where out mouth is and stand behind our claims of energy efficiency… and at the same time keeps the customer motivated toward efficiency because they are paying the other half.

Here are the first 6 months of bills,  May thru October.   The home is a 40 year old 1200 square foot tract home in Fresno where the summers are really hot.    Perhaps even more important is that the homeowner was pregnant with her first child and kept the thermostat at 70 degrees all thru the summer.

Month          Gas               Electric              Total

May               11.06             43.70                 55.62

June              5.20               40.36                 45.97

July               6.92               109.32               116.88

August          5.09              112.77                118.31

September    6.17               109.97               116.72

October        6.51                 71.15                  78.24

The home got  no certification or plaque.   No HERS rating required.   No third party testing or computer modeling.  The project was designed toward the main thing that counts = the bills.    And the bills are about half of what the rest of the neighborhood experiences.   Is the homeowner happy?  Ecstatic is more like it.   Sad that they didn’t get a rating or a plaque?   Dont think so.     So what’s to not like about that?    The deliverable was delivered.

Henry Gifford’s critique was directed at LEED, primarily for commercial buildings.   But Residential Programs are not far behind.  How much non performance from Home Performance programs will the tax payer allow?     Is there political will to demand transparency and performance?

Would the real efficiency of Energy Efficiency Programs improve  if the following were implemented:

1.  ”We Pay Half”  where contractors & developers paid half the utility bill for two years.   OR

2.  Contractors & Developers wait a year for 50% of their incentive payment and receive it only if the promised deliverable was really delivered.

3.  Allow rate payers to see the “Neighborhood Average” along with their bill every month.

Pretty simple stuff really.    Please comment in the comments section below.      Do you think it’s too simple?   Would it work to deliver more energy independence?    Or is there too much investment in the testing and modeling and certifying industry that is providing so many of the good new Green Jobs that dont always deliver what the programs promise?

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After some good pizza and Q&A we will visit our second Unique attraction.   The most recently completed GreenEarthEquities Energy-Wise Renovation features a totally new type of Air Conditioning and Heating System, a rarely seen Heat Recovery Ventilator system and the adaptation of a New Constructions technique rarely seen in Renovation.

The home is featured on the front cover of Home Energy Magazine. The cover photo shows the Mini Split Heat Pump but the article is mainly about the whole concept of Energy Wise Renovation.

Finally, (for this stop on the tour) we’ll reveal the reason that all this Energy Efficiency sells so easily in what most people call a depressed market.   I’ll also talk about the current sales efforts to sell this home with some new techniques that we are developing right now.

Then we’ll visit the house referred to in previous blogposts as the “Ugliest House In The County”   It is about 50% complete and not really ugly anymore…. just in the middle of renovation.

Then we’ll finish with another project that we just started last week.   You’ll see it in full demolition mode.

I hope you’ll be able to join us.  Please RSVP in the Comments section.  And bring all your questions about Energy-Wise Renovation.  Who knows?  Maybe you’ll be the next to jump into the business of Saving The Planet, One (foreclosed) House At A Time

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Each page has a purpose  and there is a whole series of slides in PlanetSavers University explaining why we feel it’s worth the extra effort.  The first page mentions my Realtor, but just barely.   Pictures are obviously important but it also includes neighborhood information, Rent vs Own comparison costs and finally contact info.

Page 2 we call our “Preponderance of Evidence.”   This is the “Logic” that  allows the buyer to validate in his own mind the emotional decision that got 90% made when his wife walked into the kitchen!   (Sorry, that’s the way us humans work)

It really is a long single spaced list.  But unless someone points these things out, many of them will be missed, and the decision will default to “Price.”    It’s our job to “Make The Invisible, Visible” and this page really earns its place when the prospective buyers are conferring later, comparing the homes their Realtor has shown them.   This is their crib sheet to remind them that they made a good decision to buy this home!   It competes well against the one page Quickie Brochures that they collected at the other homes.

One of the uses of our brochures is to leave a supply of them on the counter after the sale.   Appraisers have a hard job on our houses because they sell for quite a bit higher than the rest of the neighborhood.   So we use the brochure to give the appraiser the ammunition they need in order to justify the price that my buyer and I have agreed on.

Of course these last two pages help the buyer justify their decision.  None of us want to make poor decisions and pay too much.   With these pages we are showing them that others are making similar decisions in the same neighborhood.

Check it out.  Let me know what you think.   Send me a copy of great Open House brochures you’ve used or seen.   I’m always looking for ways to improve.

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