Summary
The idea of generating your own electricity is exciting. Solar PV, solar thermal systems and "energy-from-wind" generation equipment is readily available and, according to some, should be installed right away. But in order to get a worthwhile payback from any of these technologies, homeowners need to prepare their homes for the upgrade by addressing some of the major causes of energy inefficiency - namely excessive air infiltration, lack of insulation and poor household energy habits.
Analysis
Some of the marketing around new energy technology is alluring - "Live off the grid", "Sell energy back to your utility" or "Never pay another utility bill". Unfortunately, these claims are pipe dreams for most homeowners. Fact is, in order to reap the benefits of alternative energy technology, a home must be (somewhat) energy efficient to begin with. Many US homeowners who choose to install alternative energy sources without addressing the fundamental problems that cause a home to be energy inefficient in the first place are going to be disappointed with the pace of their alternative energy payback. They will be trying to heat, cool, light and otherwise run their energy inefficient home with an investment that won't pay for itself for many, many years. To get a faster payback, homeowners need to prepare their homes for an alternative energy upgrade and most of the necessary fixes are relatively inexpensive.
According to recent studies, the average existing single family home in the US uses about 30% more electricity than a new home (built this year) to code. Therefore, an average existing US home is at a significant economic disadvantage before the alternative energy discussion even begins. These homes will require a larger Alternative Energy capital investment (ie more panels to satisfy the "load" in the case of PV) and it will take longer for the homeowner to break-even on the investment and realize long term benefits (if ever!).
Before homeowners concern themselves with alternative energy solutions, they need to address and resolve 3 major contributors* to energy inefficiency in their homes:
- excess air infiltration
- lack of insulation
- wasteful energy habits
The trouble with these major contributors to home energy loss is that they all are, in one way or another, INVISIBLE to a homeowner (until they get their monthly energy bill).
Let's start with air infiltration. You can't really see a leak around a window or door but you certainly can feel the result. In homes across America, leaks, cracks and voids all contribute to major losses of energy and uncomfortable living environments. Lack of insulation is also a somewhat invisible as the only place you can measure the insulative value of a home is in the attic. A statistic recently revealed that 90% of US homes 10 years or older are under insulated which isn't surprising since changing building codes up the levels of required insulation every time they are rewritten. Lastly those invisible but costly wasteful energy habits need to be addressed. It will not help a homeowner's ROAEI (return on Alternative Energy investment) if they don't change their ways and eliminate wasteful energy habits such as turning off lights/appliances when not in use, reducing the use of heavy energy dependent appliances during peak load times or eliminating phantom/vampire energy loads.
The good news is that there are simple solutions to all of these problems. The first step is for the homeowner to schedule a home performance review with a certified home energy professional who will analyze and document a home's energy efficiency shortcomings. Once the homeowner addresses the home's energy use deficiencies, they are better prepared to make and get reward from alternative energy investments. Total cost for fixes for these 3 major contributors to a homes energy inefficiency depends on the size of the home but is usually measured in multiple hundreds (not thousands) of dollars.
Installing alternative energy technology on a leaky, under insulated, energy inefficient home will not promote customer goodwill and homeowners will endure a poor economic experience with these new, proven technologies that stand to be the foundation of the individual "smart" grid of the future.
* Note: Other household energy concerns such as outdated mechanicals (HVAC equipment, hotwater systems, appliances, etc) and "fixtures" (windows, doors, lighting systems, etc) need to be addressed as well but should be cost/benefit analyzed either separately or in conjunction with an alternative energy installation. Homeowners seeking to upgrade mechanicals, fixtures or installing alternative energy equipment should review the details of an EIM - Energy Improvement Mortgage.
