Rave Reviews For Solar Homes: A Survey of Homeowners in California
Rave Reviews For Solar Homes: A Survey of Homeowners in California
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
March 2006
Table of Contents
Executive Summary ........................................................................................................................... 4
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.
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.
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
San Diego homes with solar photovoltaic and solar hot water systems incorporated during construction
(Shea Homes)
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
southern California responded to a twenty- Figure 10: Would you recommend a solar home to a
No Answer
Figure 2: Difference between electric bills
know vs. previous non-solar 4%
Don'thomes
question survey assessing their motivations for Not Sure
in solar homes No 7%
purchasing a solar home and their experience
Figure 10: Would you
17% 1%recommend a solar home to a frie
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
6% more
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 Not Sure
Netative 3% solar power among the general public. A 2004Figure 11: If you
No were to buy another home,
1% 6%
Figure 3: What is your overall impression of solar power? poll conducted by Environment California would you prefer
1% a solar powered home again?
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.
Positive Yes
96% 93%
No No Opinion
1% more new homes be4%
Figure 4: Should solar?
No No Opinion
4% Figure 12: Do you wish the size, and therefore
1%
electrical output, of your solar PV system was…
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
Little Some
28% 48%
Little No
28% 86%
Some
48% No
Some
48% 86%
Figure 14: If you were to sell your home, doNoyou think
the solar PV system would be a selling86%
feature?
Figure 7: Solar Homes Save Money: Today's electric bills
vs prervious non-solar home eletric bills Figure 14:Not
If you
Surewere to sell your home, do you think
15%
No Answer Figure 14: If yousystem
the solar
No
PV were towould be ahome,
sell your sellingdofeature?
you think
FigureDon't
7:17%know
Solar Homes Save Money: Today's
4% electric bills the solar
1% PV system would be a selling feature?
Figure 7:vsSolar
prervious
Homesnon-solar home
Save Money: eletricelectric
Today's bills bills Not Sure
vs prervious non-solar home eletric bills 15%
No difference No Answer No Sure
Not
Don't know
6% 17% 4%
No Answer 1% 15%
Don't know No
17% 4% 1%
No difference
Significanly more
3% 6% Significantly less
No difference 70%
6% Yes
Significanly more 84%
3% Significantly less
Significanly more 70%
3% Significantly less Yes
70% 84%
Yes
84%
Somewhat
Environment Important
15% 60%
Yes
95% Figure 17: DoesFigure 16:Larger
your homeDohave
you any
andother
your family
energytry to
efficiency Fig
feat
such as a solarfurther reduce
hot water 48%yourorenergy
heater consumeption?
an on-demand su
hot water hea
SignificantlySolar
less Power and Perceived Home Resale Value
70% While “location, location, location” will like-
Yes
lylessremain the three most important factors
Significantly
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?
Figure 9: Importance ofsolar systemWhen
Solar Feature would beHome
Buying a selling feature.
Negative No Answer Figure 8
No Importance Along similar
Verylines,
Importanta common concern about 6% 4%
$200
15% solar technologies17%is 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: Would1%you recommend a solar home to a friend?
Not Sure
Figure 10: Would 7%
No you recommend a solar home to a friend?
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
Yes identified it as a “nega- further reduce your 4%
energy consumeption?
No
tive” affect while nine
92% said it had a “positive” 10%try to
Figure 16: Do you and your family
affect. further reduceNoyour
Answer
energy consumeption?
4% No
Yes
92% No Answer 10%
Figure 11: If you were to buy another home,
4%
Solar
would you preferHomeowners are again?
a solar poweredYes
home Energy Conscious No
10%
According to the 92%
survey results, most solar
Not Sure
homeowners
Figure 11: If you were to buydoanother
No
6% not home,
become “energy hogs”
would youusing
prefer
1% amoresolar powered Yes
energyhome again?of some perceived
because 86%
notion
Figure 11: Notthat
If you were it isanother
to buy
Sure “free”home,
now that they have a
would yousolar
prefer system.
No a solar Rather,
6% powered homeasagain?
seen in Figure 16, 86
1% Yes
percent of the respondents reported doing
Not Sure Figure 17: Does your86%
home have any other energy efficiency features
more
No than6% simply owning a solar home to such as a solar hot water heater or an on-demand hot water heater?
1% Yes
reduce their energy demands. 86%
Figure 17: Does your home energy star any
have appliances
other energy
4% efficient efficiency
lights features
Further, several of the homes had other such as a solar hot water
none/no answer heater or an on-demand 4% hot water heater?
energy efficiencyYesfeatures incorporated into Figure 17: Does35%
provided
your home have any other energy efficient efficiency features
windows
93% energy star appliances
them as standard features. These measures such as a solar hot water heater 4%or an on-demand
10% heater?
hot water
efficient lights
included on-demand hot water heaters to none/no answer 4%
Yes provided energy star appliances
reduce consumption
93%
of natural gas, efficient 35% 4% efficientefficient
lights windows
appliances and lighting features, extra insula- 4% 10%
none/no answer
efficient heat/air on demand hot water
tion, and doubleYespaned 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
efficient heat/air
1% low flow water on demand hot water
amount
Figure 12: Do you wishoftheelectricity generated by their solar
size, and therefore 1% 1% extra insulation 36%
system,
electrical output, as solar
of your seenPVin Figure
system was…18. solar hot water 8%
1% low flow water
No Answer 1% extra insulation
Figure 12: Do you wish
3%
the size, and therefore 8%
electrical
No opinionoutput, of your solar PV system was…
21%
Figure 12: DoNo
you wish the size, and therefore
Answer
electrical output, of3%your solar PV system was…
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 Does
Answeryour solar system keep track
Figure 18: No
48% 4%
No Change of the total amount of energy6% used and generated?
27% Larger Don't Know
Smaller FigureNo18: Does your solar system keep track
1% 48% 22% Answer No
of the total amount
4% of energy used and generated?
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
Have you had
Figure 13:California any problems 68%
Page 12 Environment Research & Policy Center
with your solar power system? Yes
Yes 68%
Not Sure
Figure 13: Have you had any 8%
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.
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
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
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.
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
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
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.
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? ________________________________________
________________________________________
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.
< 1 kW From 1 to 3 kW
I donʼt know/No means of comparing.
From 3 to 5 kW > 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.
_____________________________________________