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Solar, Celebrity & Affordable Housing

Published: July 23, 2007

San Francisco, California [RenewableEnergyAccess.com] What do movie actor Edward Norton and low-income, single moms have in common? They're both driving the renewable energy and green building industries. While celebrities are able to easily pay the price for homes equipped with the latest in solar and energy efficiency products, now low-income families are also receiving the benefits of healthier, greener home environments in which to raise their kids -- and policy makers are awarding funds to developers who can provide just that.

Guaranteeing roofs over the heads of America's low-income, elderly, developmentally disabled, etc., has always been the domain of the affordable housing industry but now they are fighting for a roof with PV on top.

This topic was addressed by Jeffery Lesk, a partner at the Nixon Peabody law firm in Washington, DC, during the Green Homes & Sustainable Communities 2007 conference held last week in San Francisco, California.

According to Lesk, affordable housing offers a unique opportunity "because the entities getting the assistance are typically required to own and operate the property for at least 15 to 20 years." This allows owners to benefit from the payback on renewables, while many merchant builders who "build and flip" their properties in short periods of time would not.

Marty Keller, director of Construction Management at First Community Housing in San Jose, California, a non-profit Housing Corporation known as a pioneer in "greening" affordable housing, explained "affordable housing and high-end residential are where green is coming from—and it is moving to the middle."

One of First Community's successful projects is Murphy Ranch in Morgan Hill, California, which boasts 100 townhouses on approximately 7 acres. Designed for low-income families and single parent households, the townhouses are arranged in 4-plexes and 5-plexes around a central spine that includes two play structures, a solar heated swimming pool and solar heated shower and a recreation building. Photovoltaic panels on the carports and recreation building supplies 95% of the common area/recreation building's electricity. The development exceeds California's Title 24 Energy Requirements by 25%.

On the other extreme, high-end residential property owners and celebrities like Norton, Daryl Hannah, Danny Devito and Leonardo DiCaprio are able to pay up front for solar installations—along with other sustainable and green building technologies—even if it takes decades for the investment to pay off. But celebrities like Norton have been instrumental in helping bring renewable energy to those who might not otherwise be able to afford it.

Norton is a trustee of the Enterprise Foundation, which was founded by his grandfather and is the largest non-profit developer of low-income housing in America. The Institute co-sponsored the Green Homes & Sustainable Communities 2007 with IPED.

In addition, when Norton first started "shopping" for solar panels for his own home a few years ago he proposed to BP Solar that the company create a program whereby celebrities, or public figures of any sort, purchase a solar system for their homes that BP would donate a matching system to a low-income family. From there BP's Solar Neighbors' program was born. Now, every time an invited celebrity purchases a BP solar system for their home, BP donates a similar system to be installed on a low-income family's home in South Central Los Angeles.

The solar system donated through the program helps eliminate most, or all, of a family's electricity bill, freeing up income for maintenance, home improvements and other necessities for successful, long-term ownership.

And the energy costs savings are not trivial. According to F.L. Andrew Padian a housing specialist with Steven Winter Associates, a building systems consulting firm, a low-income, single family home uses about three times the energy as an average income, single family home, when looking at multi-unit homes the difference can be as high as seven-fold.

In low-income housing the utility costs often come out of the operating budgets of the owners. And as the cost of natural gas, fuel oil, and electricity go up, so does the operating budget as a percent of the total budget. Theses high energy cost often lead to foreclosures and occupant abandonment. 

From low-income rural housing on scattered lots in central Massachusetts, to urban-dwelling seniors in Seattle, an industry accustomed to working with government incentives, grants, and tight building operating budgets is showing the renewable energy industry just how well the two fit together. Guaranteeing roofs over the heads of America's low-income, elderly, developmentally disabled, etc., has always been the domain of the affordable housing industry but now they are fighting for a roof with PV on top.

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1 of 15
July 24, 2007

:) It's about time America produces more celebrities :) so that we can have a solar nation someday.


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2 of 15
July 24, 2007
Hey, could some celebrity purchase a solar system, I'd like one on my house too :)  In all seriousness, I think the program has an awesome idea behind it and will help many familes. 
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3 of 15
July 25, 2007

An interesting concept, I guess every little bit helps.

Not to get off topic, but I see people complaining about tax breaks to "big oil".  Does anyone have any specific data as to what these tax breaks actually are?


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4 of 15
July 25, 2007

Howard suggested taxing the oil company's huge profits.  This isn't really necessary since the U.S. gives huge subsidies (and tax breaks) to the oil companies, despite ExxonMobil making more profit than any company in the history of the world.  If we just move these subsidies to renewable energy, a solar PV system would actually be cheaper than using grid power.

Today, so many people are driving super-luxury vehicles over $50K (Hummers that have never been off-road, for example).  If our President would make it "patriotic" to install a solar PV system - and even unpatriotic to use standard grid power - many more people would invest in a solar PV system as a flag-waving luxury item.  Obviously, many have the money.

I own several rental properties.  If the landlord pays the heat or electric, as in many small multi-family properties, the tenants will literally set the heat to 90 and open the windows in the winter.


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5 of 15
July 25, 2007

I agree that in many cases the "higher energy usage" is due to  poor building construction.  It may also be due to use of "all electric" construction. Electric ovens/eanges are not rally very efficient.  Yes, they are good at making heat from  electricity, but  they take longer to generate that heat, and longer to lose it. No "central air," is probably a factor, also.

   Food stamps are also a factor in that costs tend to force purchase of foods high in fat, salt, and sugar, requiring cooking. Foods that don't require cooking, or use of crock pots (low cost cooking), are much more expensive. The poor find themselves locked into poor choices, with little or no room to change. That leads to more energy use.


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6 of 15
July 25, 2007

Please do not associate being poor with elevated use of energy. If that were true then Bolivians would be the largest energy consumers per capita. What we have here is the U.S. is a malfunctioning and very inefficient population of throw away consumers that is seen across all levels of income. In the U.S. we have lost touch with the "share the wealth" democratic concept and much to my dismay appear to entering into that other unmetionable society.

jb (www.nrgmanager.com)


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7 of 15
July 25, 2007

Just thinking out loud; I have a feeling that the energy use by lower income families can be related to mant things. Poor insulation of the homes, leading to more energy used to heat and cool the homes.  The additional energy draw of cheap and inefficient appliances; from window A/C units, water heaters, refrigeration, and inexpensive incandescent lighting. 

 Just the few things I mentioned off the top of my head could add up to a few thousand dollars of renovation or improvements, that those families renting or owning just do not see available to invest for a long term savings.  It is the same with the idea of recycling, people just do not see how it could directly benefit them.

I admire Mr Norton, using his celebrity and environmental consciousness to help others less fortunate; but the many middle class folks that could use a little nudge, some help when it comes to investing money into passive or active (PV) solar systems for their own homes, would be a gigantic market. The nudge for some momentum to build toward a renewable energy society.


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8 of 15
July 25, 2007
It's great to hear that someone finally went to BP (in relation to it being an oil entity) to get some help with  introducing renewables to low-income families. Unfortunately, BP was approached as the manufacturer of the solar panels and not as a big oil company.  Wouldn't it be lovely if our "all-knowing" governments got the idea that they could get away with taxing big oil's enormous profits if they allocated the money to  building community wind and solar power generation.  Hey, there's something we could all lobby for !
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9 of 15
July 25, 2007
Awsome!  Yeah,  I would guess inefficienct appliances, maybe larger families, or longer hours at home might account for more power useage, but those stereotypes probably don't hold to all low-income families and wouldn't seem to account for 3 or 7 times the average household...?  especially since the average American household is pretty inefficient, too!
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10 of 15
July 25, 2007
It's an interesting statistic that poor households use 3-5 times the energy as an average residential household.  Can anyone explain this?
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11 of 15
That's a great program and I much fascinated about it. I hope such well thought initiatives could be adopted and adapted in many African countries where the solar resource is abundant.
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12 of 15
July 26, 2007

Paul Johnson you can find the big subsidies in the 2005 energy bill, it gave oil and fossil fuel companies an 18% increase. You can also look at the recent HB 06 and see where congress wanted to stop the 10.1 Billion tax subsidies to big oil. In the end all they could do was not Increase it.

The present administartion also gives free drilling rights and other big perks to oil. It all started in the 70's after OPEC hit us on the head. Oil companies were supposed to find more AMerican oil but now we import over 60% of our oil. The US hit peak oil in 1970. The rest of the world pays $7 a gallon for gas. We pay $3 so you can see we subsidies over half the price. 

  Of course we also subsidies large vehicles over 7 toine GVW for small business and they buy Hummers and Escalade SUVs that you and I pay for. It used to be a 100K writeoff , then down to 50K now it's 25K so the Hummer H1 was stopped since they can't give them away. 


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13 of 15
July 26, 2007

Why does low income housing include a swimming pool for each 4 to 5 families?  Pools use energy (pumping and heating) and ozone depleating chlorine.  A better use for a hole in the ground is for thermal storage or to store ice or chilled water that is made during the winter and used to cool a house in summer.

Christina Nelson,  The Original Coffee Company


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14 of 15
July 27, 2007

With regard to "taxing the rich oil companies":

Americans' favorite pastime is counting and spending other peoples' money.   Oil companies are owned by shareholders.  Want to get some of your gas money back from the oil companies?  Buy stock, and reap the dividends.  Beware;  the government taxes profits twice:  once while in the companies' hands, and again upon distribution to the owners - the shareholders. 

US oil production (lower 48) has been in decline since 1971.  If the US wants more domestic product to reduce imports, you'll have to open up new oil fields (read;  offshore, and in Alaska).   

On the other hand, if you really want to promote efficiency and reduce fuel-based energy consumption, scrap the existing tax system and replace it with a carbon or emissions tax on every product manufactured in, or imported into America.  Think of it as a national sales tax - but based upon energy content.

 

       

 


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15 of 15
August 16, 2007
I think that it a great thing that the effort goes out to low income housing to help people survive but how come there are no plans to help the middle class people get solar with out breaking their bank account. The Middle class people are the ones who support the back bone of this country and never get a bone tossed back to them. There are two classes of people those who are rich and get all the breaks in life and those that are poor and get all the hand outs. The middle class that pay the highest taxes and work the hardest to support both of the other classes keep giving and suffer the most, due to they are expected to give till they die. Where is the fairness in this type of thinking? Everyone caters to big business and to the poor but what about the real working families in this world that pays out the nose for progress and change so the rich can enjoy it and the poor can stand in line and receive it for free.
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