80 Year Paybacks? Is that Sensible?
September 6, 2009
Last week I again had the pleasure of renewing my acquaintance with one of the most progressive, practical builders I have encountered. It is pure pleasure tapping his brain power. I am forever amazed at how much knowledge he has regarding energy efficiency in building and his utilization of building systems in his pursuit of cost justified, profitable construction of sustainable, energy efficient building. His name is Duncan McFarland and he builds with Structurally Insulated Panels in the area of Wintergreen,Virginia I think the one issue that he and I totally agree on is: Builders have to make a profit building energy efficient/sustainable housing. That builders have to understand the costs involved, make rational decisions regarding these costs, so as to make a profit when employing energy saving/sustainable building techniques. It has to be a cost vs. value vs. profit decision. It also means that not only does a builder have to understand the costs involved, but has to communicate and educate his buyers to the advantages of having houses built this way. Usually these advantages are related directly to cost savings, putting money in the buyers pocket, and healthy/comfortable living environs.
One issue Duncan brought up was cost effectiveness of heating and air conditioning systems in a home built to tight thermal envelope standards. These standards usually involve the correct installations of windows, doors, insulation, air barriers, drainage planes and HVAC systems.
When he talked about the cost differences involving the upgrading of equipment from the old 10 SEER standard to the new 13 SEER requirements, the cost effectiveness was dramatic. He explained that upgrading to a 13 SEER Heat Pump can run approximately $4000.00 from the previous 10 SEER system. The 10 SEER system had been costing approximately $50/month to operate. The savings from installing a new 13 SEER unit into a new EarthCraft/Energy Star home, the type he had been building, were about $4/month. That is a pay-back of approximately 83 years. Now how do you sell that to a homeowner or builder.
Of course today 13 SEER is mandatory. The point is in an existing house or a new house being contemplated by a builder, upgrading the Compressor/Heat Pump unit, with a leaky thermal envelope and duct system is throwing money away. Only those with deep pockets and “Green at any cost” can justify a payback of 83 years.
The point here is it is all about a building and houses systems operating together as a team. Do a thermal envelope and HVAC supply system correctly and the effects of the efficiency of a new upgraded component are minuscule. The same holds true for installing a high efficiency HVAC unit into a leaky duct system. What are you going to save by upgrading to a 13 SEER system if your ducts leak 15-40%(not abnormal). Can anyone justify spending $4000 to save $4/month? Not in my world.
This substantiates what I have always believed. Builders, Developers, Affordable Housing producers, home-buyers and building owners are better off spending their money cost effectively on upgrading their thermal envelopes and duct systems, with the resultant instantaneous savings, reasonable payback times, then they are by jumping ahead to the glamorous, expensive, big ticket items of higher efficiency HVAC systems, windows and doors. The home buyer has to see the savings and the builder has to see the profit. How can that happen utilizing the above scenario?
Comments
Got something to say?