Rave Reviews for Solar Homes
A Survey of Homeowners in California
March 2006
Rave Reviews for Solar Homes
A Survey of Homeowners in California
Written by
Bernadette Del Chiaro
Environment California Research & Policy Center
March 2006
Table of Contents
Executive Summary ........................................................................................................................... 4
Survey Results: Attitude and Experience of Solar Homeowners ...................................................... 7
The Benefits of Solar Homes ........................................................................................................... 13
California’s Solar Home Developments ........................................................................................... 16
Policy Recommendations ................................................................................................................. 18
Appendix: Solar Home Survey ........................................................................................................ 21
Acknowledgments
Environment California Research & Policy Center thanks John Suppes, Aaron Nitzkin, and Nicole Gittelson
of Clarum Homes and to John Hemingway, one of California’s solar homeowners, for their help developing
the survey. We also thank Jeanne Bassett of New Mexico PIRG, Dena Mottola of New Jersey PIRG, and Di-
ane Brown of Arizona PIRG, as well as Tony Dutzik of Frontier Group and Rob Sargent of the National Asso-
ciation of State PIRGs and affiliated environmental organizations for their editorial review. The author would
also like to thank Environment California’s Jennette Gayer and to the students at the UC Davis CALPIRG
student chapter, Katie Taylor, Ryan Hom, Josh Li and Vicky Choa, who helped to collect the surveys.
Environment California Research & Policy Center sincerely thanks the Arntz Family Foundation, the Energy
Foundation, the David B. Gold Foundation, and the Richard and Rhoda Goldman Fund, whose financial
support made this report possible.
The authors alone bear responsibility for any factual errors. The views expressed in this report are those of the
authors and do not necessarily represent the views of our funders or those who provided editorial review.
This report can be downloaded at our website: www.environmentcalifornia.org.
A hard copy can be obtained for $10.00 by writing to:
Environment California Research & Policy Center
3435 Wilshire Blvd, Suite 385
Los Angeles, CA 90010
The Environment California Research & Policy Center is a 501(c)(3) organization. We are dedicated to pro-
tecting California’s air, water and open spaces. We investigate problems, craft solutions, educate the public
and decision-makers, and help Californians make their voices heard in local, state and national debates over
the quality of our environment and our lives.
For more information about Environment California Research & Policy Center, please call (213) 251-3688
or visit us at www.environmentcalifornia.org.
Executive Summary
As President George W. Bush pronounced Ultimately, building solar homes provides a
America’s addiction to oil during his 2006 number of benefits to the homebuyer, home-
State-of-the-Union Address, California builder and society at-large.
unveiled the nation’s biggest solar power
program, the California Solar Initiative. The Everyone benefits from the economies of
Initiative sets its sights on building a million scale achieved by incorporating solar tech-
solar roofs and a mainstream, self-sufficient nologies into large scale developments as well
solar market in ten years. as an enhanced ability to design the home
to best incorporate solar technologies. In
With a backdrop of high energy prices, con- addition, builders benefit by attracting more
cern over global warming, and a growing interested buyers and, as the survey results
desire among Americans to achieve energy show, a highly satisfied customer.
independence, the authors of this report set
out to inform policy makers, homebuilders Further, homeowners benefit from being able
and consumers about the potential to inte- to roll the cost of a solar system into low-
grate solar panels into new homes, making a interest mortgages and take advantage of
previously boutique technology as affordable rebates, tax credits and tax deductions to
and common-place as insulation and double- achieve a net cost savings within their first
paned windows. month of ownership.
With this report, we quantify and qualify the
motivations and experiences of homeowners Figure 1: Top motivations for buying a solar home
who have recently purchased a new home in Figure 1: Top motivations for buying a solar home
which solar panels were added as a standard Other
feature. The report analyzes survey responses Other
5%
None/Didn't matter 5%
from five different developments in northern matter
None/Didn't16%
and southern California to provide some 16%
insights into the level of consumer interest
in energy efficient home design and into New Technologies Saving money
the potential for a mainstream solar home New Technologies
11% Saving money
53%
market. 11% 53%
As Figure 1 shows, the ability to save money Environment
Environment
15%
was the top motivator. Defying stereotypes
15%
about the typical solar power enthusiast,
the homeowners were nearly five times more
Figure 2: Difference between electric bills
motivated by saving money than protecting Figure 2: Difference between electric bills
in solar homes vs. previous non-solar homes
the environment. This statistic may indicate in solar homes vs. previous non-solar homes
that solar power has the potential to become No Answer
a mainstream technology for the budget-con- Don't know No Answer
4%
Don't17%
know 4%
scious American homeowner.
17%
The report recommends policies needed to No difference
grow the solar home market, calling for No difference
6%
aggressive federal, state and local action to 6%
build a robust, self-sufficient and mainstream Significanly more
Significantly less
solar power market within the next ten Significanly more
3% Significantly less
70%
years. 3%
70%
Page 4 Environment California Research & Policy Center
Figure 3: What is your overall impression of solar power?
Figure 3: What is your overall impression of solar power?
No Opinion
Netative 3%
No Opinion
Lastly, the social benefits of creating a robust
solar home market come in the form of
greater energy independence, reduced air pol-
lution and, in time, a more stable, affordable
energy supply.
Survey Highlights
Analysis of 109 completed surveys reveals the
motivation, experience and knowledge of the
homeowner living in newly built solar homes.
These results are highlighted below:
Solar homeowners were motivated by sav- Centex Homes is building solar homes in San
ing money and reported low energy bills. Ramon, California, Photo Credit: Davis Energy
Specifically: Group
• 70 percent of the homeowners surveyed
say their electric bills are much less than in
their previous home; Policy Recommendations
• 53 percent report their solar home purchase To further the potential for solar homes, fed-
was motivated by saving money; eral, state and local governments should:
• Regardless of motivations, the solar system
was an important factor for 77% of the home Design Standards for New Homes. To achieve
buyers. additional economies of scale and build more
sustainable communities, state and local gov-
ernments should establish minimum solar
Solar homeowners are satisfied customers. energy requirements for new construction.
The survey found that:
• 92 percent of respondents would recommend Consumer Rebates. Dozens of states offer
a solar home to a friend, and 93 percent some form of consumer rebate program to
would buy a solar home again; help buy-down the cost of installing a solar
• 84 percent of solar homeowners believe the energy system. The nation’s largest rebate
solar power system would be a selling feature program was just adopted by the California
if they were to sell their home; Public Utilities Commission. Other states
• 95 percent of the homeowners think more should adopt a similar program.
homes should come with solar power
features. Net Metering. Net metering programs offer
• 86 percent have had no problems with their consumers the ability to get retail credit for
solar system and 90 percent say their solar excess electricity generated by their solar
system has either no effect or a positive system. In return, homeowners provide ben-
effect on the appearance of their home. efits to the electric grid such as pollution-free
peak electricity. These policies are key finan-
Solar homeowners take additional steps to cial drivers for homeowners considering solar
reduce their consumption of energy. For technologies and must be expanded across
instance 86 percent of the homeowners say the country.
they try to cut their energy consumption,
beyond owning a solar system, through ener- Tax Incentives. States should offer solar tax
gy efficient appliances and lifestyle changes. incentives for consumers and the federal gov-
ernment should extend the existing federal
Rave Reviews for Solar Homes Page 5
tax credit for ten years to provide greater sta- Consumer Protections. A rapid growth in
bility to the solar market nation-wide. States the solar market should be accompanied by
and local governments should also adopt improved standards and consumer protec-
tax-based incentive programs to attract more tions such as mandatory solar system inspec-
solar manufacturing closer to local markets. tions and minimum system warranties. States
and local governments should improve and
Solar Rights. All homeowners should have expand installer and building inspector train-
the right to install a solar energy system on ing programs and adopt uniform licensing
their home and not have their roof shaded standards.
from the sun, provided that all safety and
installation standards are met. State and
local governments should ban and discourage
zoning ordinances that penalize or discourage
solar installations.
San Diego homes with solar photovoltaic and solar hot water systems incorporated during construction
(Shea Homes)
Page 6 Environment California Research & Policy Center
Figure 9: Importance of Solar Feature When Buying H
Other
5%
Figure 1: Top motivations for buying a solar home No Importance
None/Didn't matter Very Important
Figure 9: Importance of Solar Feature When Buying Home
15%
16% Other 17%
5% No Little
VeryImportance
None/Didn't matter Very Important
8%15%
16% 17%
Survey Results:
New Technologies Saving money
11% 53% Very Little
8%
New Technologies
11% Environment Attitude and Experience of Solar Homeowners
Saving money
53%
Somewhat
Important
15% 60%
Somewhat
Environment During the spring and summer of 2005, one Important
15% Figure 2: Difference between electric bills hundred and nine homeowners in five new 60%
in solar homes vs. previous non-solar homes solar home developments in northern and
Figure
southern California responded to a twenty- 10: Would you recommend a solar home to a
No Answer
Figure 2: Difference between electric bills question survey assessing their motivations for Not Sure
in solar homes vs. previous non-solar 4%
Don't know homes No 7%
17% purchasing a solar home and their experience Would you recommend a solar home to a frie
Figure 10: 1%
No Answer owning one. (See Appendix for a copy of the
Not Sure
Don't know 4% survey). These responses represent approxi- No 7%
No difference
17% mately twenty percent of the 500 homeown- 1%
6%
ers living in these five developments.
No difference
Significanly more
6% Significantly less
3%
70% Overall Impression of Solar Homes Yes
Significanly more
The vast majority of the one hundred and 92%
3%
Significantly less nine homeowners surveyed for this report
70%
had an overall positive impression of solar Yes
92%
power, as shown in Figure 3. These results Figure 11: If you were to buy another home,
Figure 3: What is your overall impression of solar power? are in line with polls of average voters that would you prefer a solar powered home again
frequently show highly favorably ratings of
No Opinion
Netative 3% solar power among the general public. A 2004 Not buy
Figure 11: If you were toSure another home,
No
1% overall impression of solar power? 6%
Figure 3: What is your poll conducted by Environment California would you prefer a solar powered home again?
1%
No Opinion Research & Policy Center, for example, found Not Sure
Netative
1%
3% 87 percent of California voters had a favor- No
6%
1%
able opinion of solar power1.
Nearly all of the solar homeowners think that
more homes should be built like theirs: with
solar panels incorporated into them as stan-
Positive dard features, as shown in Figure 4. Yes
96% 93%
Positive Yes
96% 93%
Figure 4: Should more new homes be solar?
No No Opinion
Figure 4: Should more new homes be4%
1% solar?
No No Opinion
4% Figure 12: Do you wish the size, and therefore
1%
electrical output, of your solar PV system was…
Figure 12: Do youNo Answer size, and therefore
wish the
3%
electrical output, of your solar PV system was…
No opinion
21%
No Answer
3%
Yes No opinion
95% 21% Larger
48%
Yes
Figure 5: Top motivations 95%buying a solar home
for Larger
Other 48%
5% No Change
Rave Reviews for Solar Homes
27% Page 7
Smaller
Figure 5: Top motivations for buying a solar home
None/Didn't matter
16% Other 1%
5% No Change
Saving money 27%
Motivations for Buying a Solar Home overwhelmingly “significantly less”. As Figure
The top motivating factor for purchasing a 7 shows, 7 out of ten respondents reported
solar home for 53% of the homebuyers was having significantly lower energy bills. One
saving money, as shown in Figure 5. Fifteen respondent reported having a bill that was
percent of the buyers were motivated by pro- equal to their previous home even though
tecting the environment and eleven percent they more than doubled their living space.
were motivated by the idea of promoting a
new technology. When asked to approximate their electric
bills, the majority of the respondents pro-
Interestingly, 16 percent of the homeowners vided figures that averaged between $30 and
were either unaware that their home had a $121 per month, as shown in Figure 8. In
solar system at the time of purchase, or the contrast, the average California electric bill
solar system didn’t factor in to their decision for a new home is from $130-170 per month2.
to purchase the home. This is slightly more These results indicate that solar home sav-
than the 15 percent who were motivated by ings could range from 30-75% compared to a
protecting the environment in choosing to non-solar home. Further, nearly a third of the
buy a solar home. These results may indicate respondents reported having monthly electric
the ability for solar power technologies to bills that were $20 or less.
blend into new home design and become a
mainstream technology via the new home The range in monthly electric bills is most
market. likely due to different solar system sizes, vary-
ing lifestyles, location within California, and
Further demonstrating that today’s solar the quality of the additional energy efficiency
homebuyer is not the stereotypical green features included in the home in addition to
technology enthusiast, a majority of the hom- the solar panels.
eowners surveyed had little to some knowl-
edge about solar power before purchasing Regardless of the motivating factor, a vast
their solar home, as seen in Figure 6. majority of the homeowners, 77 percent,
reported that the solar power system was
When asked whether their electric bills were either very important or somewhat important
higher or lower when compared with their in their decision to buy their new home, as
previous, non-solar home, the answer was seen in Figure 9.
panels affect your home's appearance?
e No Answer Figure 8: Average Solar Home Electric Bill vs. Average Non-Solar Home Electric Bill
4%
$200
$176
$180
$158
$160 $138
$140
$121
$120
$100
$80
$51
$60
No
82% $40 $30
$20
$0
Central Valley South Bay Area Southern California
Average Solar Home Bill Average Non-Solar Home Bill
Figure 19: Annual Growth in California's Small-Scale Solar Installations, 1998-
Page 8 Environment California Research & Policy Center
6: Do you and your family try to 8000
2005*
40
duce your energy consumeption?
# Solar Roofs Per Year
No Answer 7000 MW Installed Per Year 35
No No Opinion
1% 4%
Figure 4: Should more new homes be solar?
Figure 4: Should more new homes be solar?
No Opinion
No Figure 12: Do you wish the size, and therefore
1% 4%
No Opinion
No electrical output, of your solar PV system was…
1% 4%
No Answer
Figure 12: Do you wish the size, and therefore
3%
electrical Do you wish the size, and therefore
No opinion output, of your solar PV system was…
Figure 12:
21%
No of your
electrical output,Answer solar PV system was…
Yes 3%
No opinion No Answer
95% 3% Larger
21%
No opinion 48%
21%
Yes
Figure 5: Top motivations for buying a solar home
95% Larger
Other Yes 48%
5% No Change Larger
95%
27% 48%
None/Didn't matter Top motivations for buying a solar home Smaller
Figure 5:
16% 1%
Other
Figure 5: Top motivations for buying a solar home No Change
5% Saving money
Other 27%
None/Didn't matter
New 5% 53% No Change Smaller
Technologies16% 27% 1%
Smaller
None/Didn't matter
11%
16% Saving money 1%
New 53%
Saving money
Technologies
Environment
New15%
11% 53%
Technologies
11%
Environment
15% Figure 13: Have you had any problems
Environment
Figure 6: How knowledgeable were you about
15% with your solar power system?
solar power prior to purchasing your home? Yes
Not Sure
8%
Figure 13: Have you had any problems
6%
knowledgeable were you about
Figure 6: HowNone A lot your you power problems
with Havesolarhad anysystem?
11%
power knowledgeable 13% you about
solar 6: How prior to purchasing your home? Figure 13:
Figure were Yes
with your solar power system?
Not Sure
solar power prior to purchasing your home? 6%
8%
Yes
None A lot Not Sure
11% 13% 8%
6%
Little None A lot
28% 11% 13%
Little Some
28% 48%
Little No
28% 86%
Some
48% No
Some
48% 86% think
Figure 14: If you were to sell your home, do you
No
feature?
the solar PV system would be a selling86%
Figure 7: Solar Homes Save Money: Today's electric bills
vs prervious non-solar home eletric bills If Sure
Figure 14:Notyou were to sell your home, do you think
solar 15%were to sell your home, do you think
PV
the14: If yousystem would be a selling feature?
Figure
Don't know No Answer No
Solar
Figure 7:17% Homes Save Money: Today's electric bills
4% the solar PV system would be a selling feature?
1%
Figure 7:vs prervious non-solar home eletric bills bills
Solar Homes Save Money: Today's electric Not Sure
15%
vs
No differenceprervious non-solar home eletric bills
No Answer NoNot Sure
Don't know
6% 17% 4%
No Answer 1% 15%
Don't know No
17% 4% 1%
No difference
Significanly more
6%
3% difference Significantly less
No 70%
6% Yes
Significanly more 84%
3% Significantly less
Significanly more 70%
3% Significantly less Yes
70% 84%
Yes
84%
Rave Reviews for Solar Homes Page 9
8%
ologies Saving money
11% 53%
Somewhat
Environment Important
15% 60%
Solar Homeowners are Satisfied Customers
Figure 2: Difference between electric bills
in solar homes vs. previous non-solar homes
Figure 10: Would you recommend a solar home to a friend?
No Answer
Not Sure
Don't know 4% 7%
No
17% 1%
The survey asked a number of questions to
understand whether these solar homeowners
No difference were satisfied with their purchase. One mea-
6%
Figure 1: Top motivations for buying a solar home is personal panels affect your
sure of satisfactionFigure 15: Do the recommenda- home's appearance?
Figure 9: Importance of Solar Feature When Buying Home Solar family.
Figure 9: Importance of and Feature When Buying Home
tions to friends
Other No Answer
Significanly more Negative
5% Significantly less No Importance No Importance
n't matter3% 70% Very Important According to the Very6% all the hom-
survey, nearly Important 4%
15% 15% Yes
16% 17% eowners surveyed, 92 percent, would recom-
17%
92%
Very Little mend a solar homePositivea friend, as seen in
Very Little to
8%
8% Figure 10.
8%
es Saving money
Figure 11: If you were to buy another home,
53% Another measure of satisfaction is whether
Figure 3: What is your overall impression of solar power? would you prefer a solar powered home again?
the homeowner would consider purchasing a
No Opinion Somewhat this Somewhat
solar home again. ToNot Surequestion, more than
Environment Netative 3% No Important
15%
1% Important 9 out of ten respondents answered yes, as seen
1%
6% No
60% 60%
in Figure 11. 82%
Figure 2: Difference between electric bills
in solar homes vs. previous non-solar homes Figure 15: Do the panels affect your home's appearance?
Figure 9:10: Would you recommend a solar home to a friend?
Figure Importance of Solar Feature When Buying Home Figure 10: Would you recommend a solar home to a friend?
No Answer Negative No Answer
Not Sure Not Sure
Don't know 4% No Importance 7%
No 7% Very Important No 6% 4%
17% 15% 1%
1% 17%
Positive Yes
96% Positive 93%
Very Little
ference 8%
8%
6% Figure 16: Do you and your family try to
further reduce your energy consumeption?
icanly more
Significantly less No Answer
3%Figure 4: Should more new homes be solar? Somewhat
70% 4% No
Yes Important Yes
92% No
No Opinion 92% 60% 10%
No 82%
1% 4%
Figure 11: If you were to buy another home, Figure 12: Do you wish the size, and home,
Figure 11: If you were to buy anothertherefore
ure 3: What is your overall impression of solar power? would you prefer a solar powered home again? electrical prefer a solar powered system was…
would you output, of your solar PVhome again?
Figure 10: Would you recommend a solar home to a friend?
No Opinion Not Sure
Netative 3% Not Sure
Not Sure No No Answer
1% No 6%
No 7%6% 3% Yes
1% No opinion 1%
1% 86%
21%
Yes
95% Figure 17: DoesFigurehome have any otherfamily try to
Do you Fig
your 16:Larger and your energy efficiency feat
further reduce your energy consumeption?
48% su
such as a solar hot water heater or an on-demand hot water hea
Figure 5: Top motivations for buying a solar home star appliances
energyNo Answer
4% efficient lights
Other No Change 4% No4%
5% Yes none/no answer
Positive Yes 92% 27% Yes
provided 10%
None/Didn't matter 96% Smaller 35%
93% efficient windows
93% 10%
16% 1%
Saving money
New 53% Figure 11: If you were to buy another home,
Technologies would you prefer a solar powered home again?
11% efficient heat/air on demand hot wa
Figure 4: Should morePagehomesEnvironment California Research &Not Sure Center
new 10 be solar? 1%
Policy No solar hot water
36%
solar
6% 1% low flow water Yes
No Environment No Opinion 1%
15% 1% 86% extra insulation
1% 4% 8%
her 4%
% No Change
vations for buying a solar home 27%
No Answe
Smaller Don't Know
Other 4%
5% No Change 22%
1%
27% Don't Know
Smaller
Saving money 22%
1%
53%
Saving money
53%
Perhaps the only change the homeowners sur-
Figure 13: Have you had any problems
dgeable were you aboutveyed would make to their solar home would with your solar power system?
purchasing your home? be to make the solar panels larger so that they Figure 13: Have you had any problems
Yes
could increase energy savings. According to
edgeable were you about Not
withSure solar power system?
your 8%
purchasing your home?homebuilder materials, most of the homes in 6%
A lot Yes
13% Not Sure
the surveyed developments had systems that 6%
8%
A lot ranged in size from one to three kilowatts.
13%
The average solar system size for a home is 2.5
kilowatts3. As seen in Figure 12, nearly half
of all respondents wished their solar system
was larger while another 27 percent felt that
Some it was appropriately sized.
48% No
Some
Directly related to satisfaction is the question 86%
48% No
of whether or not new solar homeowners have
86%
had any problems with their solar systems. To
this, the vast majority of respondents reported Figure 14: If you were to sell your home, do you think
having no problems with their systems, as seen the solar PV system would be a selling feature?
ve Money: Today's electric bills Figure 14: If you were to sell your home, do you think
in Figure 13. Of the 8 percent that reported
-solar home eletric bills having problems, 1 complained of difficulty the solar PV system would be a selling feature?
Not Sure
ave Money: Today's electric bills 15%
n-solar home No Answer working with their local utility company,
eletric bills No Not Sure
4% and two complained of problems with the 1% 15%
No Answer inverter/control box. One complained that No
4% 1%
their solar system simply didn’t work.
Solar
Significantly less Power and Perceived Home Resale Value
70% While “location, location, location” will like-
Yes
ly remain the three most important factors
Significantly less
84%
70%
in selling real estate, the impact that solar Yes
system will have on the resale value of a home 84%
is an important issue. If the perception of
these 100+ recent homebuyers is any indica-
tion, the solar panels will be an added bonus
to future resale efforts. As seen in Figure 14,
more than 8 out of ten respondents said their Figure 15: Do the panels affect your home's appearance?
Solar system would be a selling feature.
Figure 9: Importance ofsolar Feature When Buying Home
Negative No Answer Figure 8
No Importance Along similar lines, a common concern about
Very Important 6% 4%
$200
15% is
solar technologies17%how they affect the appear- $180
Very Little
ance of a home. According to 82 percent of the Positive
$160
8% respondents living in newly built solar homes, 8%
$140
the panels have no affect on the appearance of
$120
their home, as seen in Figure 15.
$100
$80
Somewhat
$60
Important No
60% 82% $40 $30
$20
$0
Central V
Figure 10: Would you recommend a solar home to a friend? Rave Reviews for Solar Homes Page 11
Not Sure
No 7%
1%
60% 82%
Somewhat
Important No
60%
Somewhat 82%
Important
Figure 10: Would you recommend a solar home to a friend? No
60% 82%
Not Sure
No 7%
Figure 10: Would you recommend a solar home to a friend?
1%
Not Sure
7%
Figure 10: Would you recommend a solar home to a friend?
No
1% Figure 16: Do you and your family try to
Not Sure
7% further reduce your energy consumeption?
No
1%
Of the fifteen respondents who reported an Figure 16: Do you and your family try to
No Answer
effect of some sort, six identified it as a “nega-
Yes further reduce your 4%
energy consumeption?
No
tive” affect while nine said it had a “positive”
92% 10%
Figure 16: Do you and your family try to
No Answer
affect. further reduce your energy consumeption?
4% No
Yes
92% No Answer 10%
Figure 11: If you were to buy another home,
would you prefer a solar poweredYesare again? Conscious 4%
Solar Homeownershome Energy No
10%
According to survey
the 92% results, most solar
Not Sure
homeowners do not become “energy hogs”
If
Figure 11: Noyou were to buy another home,
6%
would youusing a solar powered home again?of some perceived
prefer more energy because
1% Yes
86%
notionNot Sure it another home,
that
Figure 11: If you were to buyis “free” now that they have a
would yousolar system. Rather, as seen in Figure 16, 86
No
prefer a solar powered home again?
6%
1% Yes
of
percent Sure the respondents reported doing
Not Figure 17: Does your home have any other energy efficiency features
86%
more than simply owning a solar home to
No
6% such as a solar hot water heater or an on-demand hot water heater?
1% Yes
reduce their energy demands. 86%
energy star appliances
Figure 17: Does your home have any other energy efficiency features
4% efficient lights
Further, several of the homes had other such as a solar hot water heater or an on-demand hot water heater?
none/no answer 4%
energy efficiencyYesfeatures incorporated into provided
your
Figure 17: Does35% home have any other energy efficient windows efficiency features
93% energy star appliances
them as standard features. These measures efficient lights 10%
such as a solar hot water heater or an on-demand hot water heater?
4%
included on-demand hot water heaters to none/no answer 4%
Yes provided energy star appliances
reduce consumption of natural gas, efficient
93% 35% 4% efficientefficient windows
lights
appliances and lighting features, extra insula- 4% 10%
none/no answer
efficient heat/air on demand hot water
tion, and doubleYes
paned windows, as detailed provided
1%
35% efficient windows
36%
93%
in Figure 17. solar hot water 10%
1% low flow water
efficient heat/air1% extra insulation on demand hot water
Lastly, 68 percent of the surveyed homeown- 1% 8% 36%
ers report having a meter that tracks the total solar hot water
heat/air
efficientlow flow water
1% on demand hot water
amount the size, and therefore
Figure 12: Do you wishof electricity generated by their solar 1% 1% extra insulation 36%
system, as seen system was…
electrical output, of your solar PVin Figure 18. solar hot water 8%
1% low flow water
No Answer 1% extra insulation
Figure 12: Do you wish the size, and therefore
3%
8%
electrical output, of your solar PV system was…
No opinion
21%
you wish
Figure 12: DoNo Answer the size, and therefore
electrical output, of your solar PV system was…
3%
No opinion
Larger Figure 18: Does your solar system keep track
21% No Answer
48% of the total amount of energy used and generated?
3%
No opinion
21% Larger No Answer system keep track
Figure 18: Does your solar No
48% 4%
No Change used
of the total amount of energy6% and generated?
27% Larger Don't Know
Smaller 18: Does
FigureNo Answer your solar system keep track
1% 48% 22% No
of the total amount of energy used and generated?
4%
No Change 6%
27% Don't Know No Answer
Smaller No
1% 22% 4%
No Change 6%
27% Don't Know
Smaller
1% 22%
Yes
68%
Yes
68%
Page 12 Figure 13: Have you Research & Policy
Environment Californiahad any problems Center
with your solar power system? Yes
Yes 68%
Not Sure
8%
Figure 13: Have you had any problems
6%
The Benefits of Solar Homes
Developing clean, abundant solar power As the market for solar power grows in the
resources can provide numerous benefits United States and world-wide, the cost of
to homeowners, homebuilders and soci- manufacturing and installing solar systems
ety at-large by reducing air pollution, pro- will decline, removing the greatest barrier to
tecting consumers from volatile electricity mainstream application of solar power—its
prices, and reducing the need for expensive high upfront costs8. In the meantime, gov-
upgrades to electric transmission and distri- ernment programs at all levels of government
bution systems. can help lower the cost of solar power, help-
ing build a sustainable energy infrastructure
in the near term.9
Creating a Mainstream Solar Market
With year-round sunshine, a robust hous-
ing market, high energy costs and an envi-
ronmentally-conscious public, making solar
power a standard feature of new homes, just
like double-paned windows and insulation, is
a unique opportunity to literally build a truly
clean and independent energy future.
With 200,000 new homes built each year in
California alone, the new home market is one
of the best opportunities we have to lower the
cost of solar power and meet growing energy Solar photovoltaic and solar hot water systems
needs in a sustainable, economically viable being added to new homes in San Diego built by
manner.4 Shea Homes (Photo Credit, NAHBRC)
Further, with growing public concern over
energy prices and the environment, building While dozens of states have programs to sup-
solar homes could benefit builders as well, port solar power, California’s solar market is
increasing sales and adding to customer sat- the third largest in the world and represents
isfaction. around ninety percent of the US market.
This idea has not been lost on state leaders. As Figure 19 shows, California’s demand for
Governor Arnold Schwarzenegger, for exam- solar since adopting the first solar rebate pro-
ple, has made it a goal to build at least half of gram in 1998 has grown more than 2,800%.10
all new homes with solar panels5. On January Today, there are more than 18,000 homes in
12, 2006, the California Public Utilities California running off of solar power. (Note:
Commission adopted the nation’s largest solar Figure 19 shows annual growth in solar instal-
power incentive program designed to build a lations. Cumulative figures are much higher).
million solar roofs in ten years and create a
robust new solar home market.6 The bulk of these solar homes, however, are
the result of retrofit projects as opposed to the
Other states such as Arizona, New Mexico, more cost-effective method of incorporating
New Jersey, Washington, and many more, the solar panels on a home while it is being
have also begun to aggressively invest in solar built. Approximately 1,000 new homes have
power, adopting policies such a tax incentives been built with solar panels as a standard
for homeowners, consumer rebates, and net feature in California, although this number
metering programs.7 is rising.12
Rave Reviews for Solar Homes Page 13
Integrating solar systems into new home all of the day, not under trees or other sources
construction is an effective way to surmount of shade. Since the sun is always in the south-
many of the hurdles to greater solar power ern half of the sky in the North America,
penetration. south-facing roofs are generally preferable,
though east or west-facing roofs may also
First, by including solar in initial plans, work for certain homes. Solar panels can also
builders can choose home and site layouts lie flat on a roof, but are optimized if they are
that can take maximum advantage of the tilted at an angle toward the south, increas-
solar resource – for example, by preserving ing the amount of time that the full panel is
southern exposure or by integrating solar into exposed to the sun’s rays.
plans for high energy efficiency homes.
Second, including solar technologies in ini- Helping Stabilize Electric Grid
tial plans can reduce the cost of the system Ultimately, policies that encourage the devel-
in a variety of ways. For example, builders opment of “solar homes” can best take advan-
may gain experience with solar installations tage of the nation’s abundant solar energy
and/or be able to achieve discounts on bulk resources providing relief to stressed and
orders of solar systems, while the building’s aging electric grids.
electrical systems can be specifically designed
to take advantage of solar power.
Of course, not all homes, new or existing,
are equally suitable for solar power. For solar
homes to operate most effectively, the solar
system needs to be in the sunlight for most or
Table 1: Economic Benefits of 2.5 kW DC Solar PV System on a New Home with $2,800/kW
Buydown Grant
(year 1) Net Monthly Year 1 Savings Cumulative Monthly Net Present
Loan Payment Cash Flow (30 Electric Bill Value
(after tax) yrs.) Savings
San Jose $57 $44 $152 $7,662 $2,722
Bakersfield $53 $44 $100 $5,718 $1,989
San Diego $54 $44 $122 $6,534 $2,296
Murrieta $47 $44 $32 $3,144 $1,018
Fontana $46 $44 $20 $2,702 $851
Rancho
$46 $44 $20 $2,702 $851
Cucamonga
Irvine $49 $44 $58 $4,116 $1,384
Long Beach $49 $44 $58 $4,116 $1,384
Chula Vista $49 $44 $52 $3,910 $1,307
Page 14 Environment California Research & Policy Center
A 2003 study of new homes built with solar
panels as a standard feature in San Diego,
for example, concluded that equipping 1,000
homes with solar panels could reduce electric-
ity demand by over half a megawatt on hot
summer afternoons when the local electric
grid is stressed from high demand.13
Further, this same study found that solar hot
water systems incorporated into the homes
during construction significantly reduced the
demand for natural gas supplied by the same
local utility company.14
Saving Homeowners Money
A recent report by Environment California
Research & Policy Center shows that with
a buy-down grant of $2,800 per kilowatt of
installed solar capacity, a solar homeowner
could be expected to generate modest eco-
nomic benefits.15
Based on outputs from an economic model
developed for the National Renewable
Energy Laboratory, the installation of a
2.5 kW DC (2.14 kW AC) solar PV system
priced at $6.00 per Watt can be expected
to generate net economic benefits for new
homebuyers in nine of California’s fast-
est-growing municipalities with a buydown
grant of $2,800 per kW. (See Table 1.)
Rave Reviews for Solar Homes Page 15
California’s Solar Home Developments
A small but growing number of homebuilders are realizing the many benefits, economic, envi-
ronmental and otherwise, of incorporating solar panels into new housing developments. Over
the past five years, approximately ten companies have incorporated solar panels into twelve dif-
ferent housing developments throughout northern and southern California. Other states, such
as Nevada, have also seen some developers design new housing projects with solar. In total,
California has approximately 1,200 homes in which solar panels have been included as a stan-
dard feature. According to some studies, another 1,000 new homes are in the process of being
built with solar panels in California (See endnote 12). Below is a map showing completed solar
home developments in California.
Page 16 Environment California Research & Policy Center
Build er : Prem ier Homes
D eve lopmen t: Prem ier Oaks
Location: Ro sev ill e
N o. Solar H om es: 49
Build er : Treas ure Homes
D eve lopmen t: F allen L eaf
Location: N ato mas
N o. Solar H om es: 32 Build er : M orrison H om es
D eve lopmen t: Lakeside
Build er : Prem ier Homes Location: El k G ro ve
D eve lopmen t: Prem ier Gardens N o. Solar H om es: 12 out of 1 20
Location: Sac ramento
N o. Solar H om es: 99
Premier Homes: Sacramento’s first all solar housing project.
(Photo credit: Premier Homes)
Build er : C larum H ome s
D eve lopmen t: H am ilton Park
Build er : C larum H ome s Location: M enlo Park
D eve lopmen t: C herry Bl osso m N o. Solar H om es: 47
Location: W atso nvill e
N o. Solar H om es: 31
Build er : C larum H ome s
D eve lopmen t: Shore breeze
Build er : C larum H ome s Location: Palo Alto
D eve lopmen t: V ista Mo nt an a N o. Solar H om es: 39
Location: W atso nvill e
N o. Solar H om es: 257 Build er : C astle & C ooke
D eve lopmen t: Wi nderm ere H om es
Location: Bakersfield
N o. Solar H om es: 239
Build er : Shea, P ardee, R ichman, K. Hovanian
D eve lopmen t: Ladera R anch
Location: O range Count y
N o. Solar H om es: 375
Build er : KD H omes
D eve lopmen t: Th e T rails
Location: San D ieg o
N o. Solar H om es: 6 A partm ents Build er : Pardee
D eve lopmen t: Soleil
Location: San D ieg o
N o. Solar H om es: 30
Clarum Homes’s all-solar development in northern California.
(Photo Credit: Clarum Homes)
Rave Reviews for Solar Homes Page 17
Policy Recommendations
Policies targeted at increasing demand for the cost of installing a solar energy system.
solar power installations are the best way The nation’s largest rebate program was just
to simultaneously increase solar generating adopted by the California Public Utilities
capacity and drive down the cost of solar Commission on January 12, 2006. This pro-
technologies in the long-term. This will gram, called the California Solar Initiative,
increase the amount of electricity generated created a combined $3.2 billion solar fund,
from clean, distributed sources, build the paid through a surcharge on electric bills,
strength of the solar industry, and pave the to build a self-sustaining solar market in ten
way for further growth in generation from years. To accomplish the goal in California,
clean solar power in the decades ahead. this program must be fully implemented to
give the solar industry a secure dedicated
California’s Governor Schwarzenegger set fund to attract investment and lower prices
a goal of 3,000 MWp of total new solar PV over time. Other states should adopt similar
capacity and half of all new homes built programs to ensure solar power becomes a
with solar power over the next 10 years, and self-sufficient and affordable technology in
meeting that goal will require bringing down the next decade.
the cost. The strongest policies to achieve
this goal combine market-based mechanisms
with design standards for new construction. Net metering
Net metering programs offer consumers the
ability to get a retail credit for any excess
Establish Solar Requirements for New electricity generated by their solar system on
Construction their monthly electric bill. This program is a
To achieve economies of scale and build key financial driver for growing the nation’s
more sustainable communities, state and solar home market as it essentially allows
local governments should not just set goals consumers to forego the need to buy an
but rather establish minimum solar energy expensive battery and instead use the elec-
requirements for new construction. At the tric grid as a storage device. In return, solar
very minimum, solar energy systems, includ- homeowners provide critical benefits to the
ing photovoltaic and hot water, should be electric grid, providing peak-time electricity
required to be a standard option on all new and helping to stabilize the grid. Forty states
homes, just like marble counter tops where have some form of a net metering program
all new buyers are given the option and for solar energy systems upon which to
information needed to add a solar energy expand to maximize this financial incentive
system to their new home. States should (AZ, AR, CA, CO, CT, DE, FL, GA, HI, ID,
also consider policies that make solar energy IL, IN, IA, KY, LA, ME, MD, MA, MI, MN,
technologies standard features of new homes, MO, NV, NH, NJ, NM, NY, NC, ND, OH,
as it was in the five developments surveyed OK, OR, PA, RI, TX, UT, VT, VI, WA, WI,
for this report. Such policies will maximize WY).16 For example, California currently
ratepayer and taxpayer investments by driv- has a statewide net metering program that is
ing prices down and increasing installation capped at 0.5% of a utility’s total aggregated
efficiencies. electrical load.17 This means that once the
total amount of solar energy exceeds this
0.5% cap, the utility company is no longer
Dedicate Funds for a Solar Incentive Program obligated to offer and sign new net metering
Dozens of states already offer some form of contracts.
consumer rebate program to help buy-down
Page 18 Environment California Research & Policy Center
To meet the state’s new goal of building Continue Tax Incentives
3,000 megawatts of solar power on a million States should offer tax incentives for solar
roofs throughout the state, the net metering technologies, including solar photovoltaics
cap will need to be lifted to at least 5% and and solar hot water systems, and the fed-
ultimately should be eliminated altogether. eral government should extend the existing
Other states should do the same. Further, federal tax credit for at least five years to
moving beyond net metering, states should provide greater stability to the solar market
look to adopting a feed-in tariff program nationwide. States and local governments
for large scale installations. Feed-in-tariff should also adopt tax-based incentive pro-
programs have been established in Germany grams to attract more manufacturing of the
and also the state of Washington. Instead various components of a solar system and
of giving an upfront consumer rebate and to discourage anti-solar zoning and local
a credit on monthly electric bills for excess ordinances that are designed to discourage
electricity, feed-in-tariff programs allow solar solar energy systems. Several states already
system owners of any size to receive a guar- have some form of tax incentives including,
anteed price for all the electricity generated AZ, CA, CT, FL, HI, ID, IL, ID, IA, KS, LA,
by the solar system. The price is then set at MD, MA, MI, MN, MT, NV, NH, NJ, NM,
a level that provides a financial incentive for NY, NC, ND, OH, OR, RI, SD, TX, UT, VT,
consumers to invest in the solar system. VA, WA, WI, WY.18
Encourage Solar Through Utility Billing Consumer protections
Practices A rapid growth in the American solar mar-
Other important policies can help ensure ket should be accompanied by improved
that homeowners who install solar systems standards and consumer protections such as
maximize the return on their investment. mandatory system inspections and minimum
One such policy is to make time-of-use billing system warranties. States and local govern-
an option for all electric power customers. ments should improve installer and building
inspector training and licensing standards.
Time-of-use billing is simply a structure in
which the price of electricity varies by day
and by season, with higher prices charged Research and Development
during peak hours, usually hot summer after- Governments should also continue R&D
noons. With this form of billing, coupled programs that support improvements in the
with net metering, the credit given to a various photovoltaic conversion technolo-
solar system owner by day is higher than the gies, inverter engineering, factory produc-
electricity consumed by night when the solar tion, and other technical aspects that can
system is not generating electricity. Time-of- develop knowledge and then disseminate
use billing allows a net metered customer to it through the industry to help companies
receive a credit for their pollution-free, peak make better decisions about how to reduce
electricity power that is closer to its actual costs as they meet increasing demand.
worth. In other words, electricity supplied
during peak hours is worth more than elec-
tricity supplied during low-demand hours, Solar Rights for Homeowners
such as midnight, and therefore should be All homeowners should have the right to
duly compensated. install a solar energy system on their home
as well as have reasonable access to sunshine
Rave Reviews for Solar Homes Page 19
provided that all safety and installation
standards are met. Many states have “solar
rights” or “solar access” laws prohibiting
local zoning or neighborhood ordinances
from denying private property access to sun-
shine or from prohibiting the installation
of solar systems on private rooftops. All of
these programs could be improved upon at
the state and local level.
Conclusion
Growing the new solar home market, as well
as the existing home and commercial mar-
kets, will create the demand needed to drive
down prices in the long term while providing
a more stable, pollution free energy resource.
Doing so will also benefit ratepayers by
reducing peak demand, reducing the need
for polluting power plants and reducing the
need for expensive upgrades to transmis-
sion and distribution systems. Building a
mainstream, self-sufficient solar market will
also decrease the nation’s reliance on fossil
fuels while bringing cleaner air and more
local jobs. Ultimately, building solar homes
can benefit the next generation of new
California homeowners by providing a stable
source of pollution free and local energy.
Page 20 Environment California Research & Policy Center
Appendix:
Solar Home Survey
Survey results detailed in this report were collected through a combination of direct mail and
door-to-door canvassing during the spring and summer of 2005 with the survey found on the
following two pages.
The completed survey’s came from the following developments:
Total Number Number of Survey
Builder Development Location of Homes in Returns from
Development Development
Clarum Homes Shorebreeze East Palo Alto 39 8
Clarum Homes Vista Montana Watsonville 259 21
Clarum Homes Cherry Blossom Freedom 31 6
Premier Homes Premier Gardens Sacramento 99 34
Shea Homes Ladera Ranch Orange County 87 40
Total 515 109
Rave Reviews for Solar Homes Page 21
SOLAR HOME SURVEY
Thank you for taking the time to complete our Solar Home Survey. We are conducting this survey to better
assess the quality, convenience, and benefits of solar homes in California. Your experience with a solar
photovoltaic (PV) system is extremely valuable to our research assessing the value and quality of solar homes.
We would greatly appreciate it if you would complete this 20-question survey and return this form to us by either
fax or mail (see contact information on last page). All information will be kept confidential.
Contact Information (optional):
Please Print
Your Name: _____________________________________________________________________________
Address: _________________________________________ City: __________________ Zip: ____________
Phone : _________________________________ Email: _________________________________________
Your S ola r Hom e
1) What was your top motivation in purchasing a 5) If you were to sell your home, do you think the
solar powered home? solar PV system would be a selling feature?
Saving money/Lowering electric bill Yes No Not sure
Lessening my environmental impact
Promoting green technologies/Interest in solar 6) What is your overall impression of solar power?
technology of solar power
Positive Negative No opinion
None of the above. I didnʼt know my home was
solar powered until after I purchased it or it
didnʼt matter to me. 7) Do you think more homes should be solar?
Other (please specify) __________________
Yes No No opinion
________________________________________
8) How knowledgeable were you about solar power
________________________________________ prior to purchasing your home?
________________________________________ Very Somewhat
Barely None
2) How important was the solar PV system in your
decision to buy your home? 9) What kind of solar power system do you have?
Very Important: major reason for choosing home Modular – mounted to roof
Somewhat Important: an interesting bonus Building Integrated – part of roofing material
Very Little Importance On top of a trellis/Other structure
No Importance: little to no impact on decision Other (please describe) ________________
I donʼt know
3) Would you recommend a solar home to a friend? 10) Have you had any problems with your solar
power system?
Yes No Not sure
Yes No Not sure
If yes, please describe briefly: ______________
4) If you were to buy another home, would you prefer
a solar powered home again? ________________________________________
Yes No Not sure ________________________________________
________________________________________
Please continue on back
11) Do the panels affect your homeʼs appearance? 17) How do your electric bills today compare with
your bills at previous non-solar homes?
No, the system is not noticeable
My electric bills today are significantly less than
Yes, the system affects my homeʼs appearance
when I lived in a non-solar home
If yes, would you say the effect is positive or
negative? ___________________________ My electric bills today are significantly more than
when I lived in a non-solar home
12) What is the size of the solar photovoltaic (PV) I donʼt notice any difference. My electric bills are
system on your home (in kilowatts, kW)? the same as when I lived in a non-solar home.
5 kW
Donʼt know 18) Do you and your family try to further reduce
your energy consumption?
13) Do you wish the size, and therefore electrical
output, of your solar PV system was… No Yes
Larger
If yes, please check all those that apply to you:
Smaller Buy efficient products, i.e. compact fluorescent
No change desired. It is perfect as is. bulbs, Energy Star appliances, etc.
No opinion Lifestyle controls, i.e. temperature control,
turning off lights when not in use, etc).
14) Does your solar system keep track of the total Other (please describe): _________________
amount of energy used and generated? (This is
usually a digital display on a panel inside your _______________________________________
home/garage)
_______________________________________
No, there is no record
_______________________________________
Yes. How much has it generated (kWh)?
____________________________________ 19) How frequently would you say you and your
family consider/think about your solar system?
____________________________________
I donʼt know Every day Once a month
Once a year Never
15) Does your home have any other energy efficiency
features such as a solar hot water heater or an on-
demand hot water heater? If yes, please describe: 20) Would you be willing to be involved further in our
campaign to promote solar power in California?
_____________________________________________ Yes/Maybe* No
_____________________________________________ *If yes or maybe, please be sure to provide your
contact information on the top of this form so that we
_____________________________________________ can contact you.
_____________________________________________
16) What is your average monthly electric bill?
$ _____________ I donʼt know
Please return by fax or mail to:
Solar Home Survey, 1107 9th St, Suite 601 Sacramento, CA 95814, 916-448-4560 (fax)
For more information: Bernadette Del Chiaro, Environment California Research & Policy Center,
(916) 446-8062 x 103 - bernadette@environmentcalifornia.org - www.environmentcalifornia.org
End Notes
1
Cheryl Katz, Baldassare Associates, “Public Attitudes and Support for Solar Power A Survey of
Likely Voters in California Conducted for Environment California Research & Policy Center”
June 2004.
2
According to the California Energy Commission, the average California home consumes 550
kilowatt hours of electricity per month where as the average new California home, while more
efficient is larger in size and filled with more electronic appliances and gadgets, and therefore
consumes an average of 770 kilowatt hours per month. According to the California Energy Com-
mission, the average electric rate for California homes is approximately thirteen cents per kilowatt
hour.
3
The listed effect of the solar system on the home’s appearance was “big”. This same respondent
also expressed a desire to have an even larger system later on in the survey.
4
California Construction Review Private Building Construction (Construction Industry Research
Board, Burbank, CA.), May 27, 2004.
5
Press Release, Californians for Arnold Schwarzenegger, Schwarzenegger Details Specifics of
Environmental Action Plan (Sept. 21, 2003) at http://www.schwarzenegger.com/news.asp?id=1287.
6
Press Release, CPUC, PUC Creates Groundbreaking Solar Energy Program (Jan. 12, 2006).
7
See Database for State Incentives for Renewable Energy for complete list of state by state incen-
tives for solar power, available at http://dsireusa.org/.
8
Dave Algoso, Mary, Braun & Bernadette Del Chiaro, Environment California Research & Policy
Center, Bringing Solar to Scale: California’s Opportunity to Create a Thriving, Self-Sustaining
Residential Solar Market (April 2005).
9
Ibid.
10
Based on CEC Emerging Renewables Program, Data Showing Approved and Completed Sys-
tems Pre-2005, at http://www.energy.ca.gov/renewables/emerging_renewables/2005-11-02_pre_1_
1_2005_pc.xls; and post 2005 at http://www.energy.ca.gov/renewables/emerging_renewables/2005-
12-13-post_1_1_2005_update.xls.
11
Ibid.
12
There currently is no official count of the number of homes built with solar panels in Califor-
nia. The 1,000 number reported here comes from the author’s survey of builders and the media
regarding built solar home developments. Other reports indicate there may be as many as 1,000
more homes that are in the process of being built or part of a promise from a developer interested
in incorporating solar panels. See Galen Barbose, Ryan Wiser and Mark Bolinger, “Supporting
Photovoltaics in Market-Rate Residential New Construction: A Summary of Programmatic Expe-
rience to Date and Lessons Learned” (Feb. 2006, LBNL-59299).
13
Moore, Mike. “Final Report for Field Evaluation of PATH Technologies”, Partnership for Ad-
vancing Technology in Housing, October 2003, pg. 1.
14
Ibid, pg. 1.
15
Bernadette Del Chiaro, Tony Dutzik & Jasmine Vasavada, Environment California Research
& Policy Center, “The Economics of Solar Homes in California: How Residential Photovoltaic
Incentives Can Payoff for Homeowners and the Public” (Dec. 2004).
16
See Database for State Incentives for Renewable Energy for complete list of state by state incen-
tives for solar power, available at http://dsireusa.org/.
17
S.B. 656, 1996 Leg., 1995-96 Sess. (Cal. 1995), available at http://www.leginfo.ca.gov/cgi-bin/
postquery?bill_number=sb_656&sess=9596&house=B&author=senator_alquist_(coauthor:_as-
sembly_member_takasugi) (last visited Feb. 21, 2006).
18
See Database for State Incentives for Renewable Energy for complete list of state by state incen-
tives for solar power, available at http://dsireusa.org/.
Page 24 Environment California Research & Policy Center