The Green Home Movement: Craig Foley at TEDxSomerville

Craig Foley is the Chief of Energy Solutions for RE/MAX Leading Edge, and a co-founder of inCharge Energy. Craig is also the author of the first report on hi...

Views: 207

Comment

You need to be a member of Home Energy Pros to add comments!

Join Home Energy Pros

Comment by Craig Foley on June 5, 2014 at 12:44pm

Hi James, thanks for your kind words.

Before I answer the question about the market value of distributed generation and EE improvements, I think it's worth talking about some of the challenges my industry faces in addressing these issues. it is not uncommon for the average agent to answer the question with a quick roll of their eyes and a under the breath "There is no value" response. That kind of response is fairly common here in MA, but I am guessing it is true throughout the U.S. The response is understandable when you consider we are in the midst of an energy paradigm shift; assumptions about how we produce and consume energy are rapidly changing. Terms/acronyms like solar PV, ASHP, PPA, AFUE, HERS rating, energy performance scores take traditional agents/brokers out of their comfort zones. The natural reaction for many is a derogatory statement involving the word "green." That's too bad; it holds back market transformation because of short term thinking and insecurity. If a buyer or seller hears a RE agent reply like that, my advice is run in a different direction as soon as possible.

The general rule of thumb is that for each dollar saved by EE improvements it equates to roughly a $15-20 value at the time of sale. When I investigated this issue in the MA market in 2012, I found this to be in line. I work for a large RE firm in MA that had 12 offices in the Greater Boston area at that time. Hearing complaints from several of the agents in our offices that buyers didn't want to buy homes heated with oil I investigated. Given that the EIA projected that the average home heated with oil would cost the homeowner $2553, and that the average homeowner that heated there home with NG would cost $1007 for the 2012-2013 heating season, I wanted to see if there was a price premium buyers were paying for homes heated with NG. After studying all the homes that sold in 2012 in our 12 communities I found that there was an $11 per sq ft price premium for homes heated with NG. For a 2000 sq ft home this equates to a $22,000 premium. Using the $1500 delta between oil and NG, that equates to for everyone dollar saved in the NG home it equated to $14.67 of value.

Comment by James White on June 5, 2014 at 12:01pm

Very well done presentation Craig.  Definitely worth watching.  I like your statement that we each have both an opportunity and an obligation to reduce our energy consumption.  It would be interesting to hear from a realtor's perspective how much value was added by the energy efficiency improvements and distributed generation system installed at the home you mentioned.

Home Energy Pros

Home Energy Pros was founded by the developers of Home Energy Saver Pro (sponsored by the U.S. Department of Energy,) and brought to you in partnership with Home Energy magazine.

Latest Activity

Jerry Lawrence posted events
16 hours ago
Morgan M Audetat replied to Bryan Pringle's discussion Dense packed cellulose in basement?
"Right you are. You have to ask: what will the cellulose contribute.  Here in Minneapolis we…"
18 hours ago
Morgan M Audetat replied to Tony Hicks's discussion Slab-on-grade Insulation
"All slabs float. We have been installing radiant floors on various slab constructions since the…"
18 hours ago
Tony Hicks replied to Tony Hicks's discussion Slab-on-grade Insulation
"2" XPS foam. I'd love an R-20. Having foam thick enough to get an R-20 would be…"
19 hours ago
Morgan M Audetat replied to Larry Schaffert's discussion How to correctly insulate exterior wall in a 1900 house?
"Sorry, I did missed the "siding nailed directly to the framing", my grandfather would…"
19 hours ago
Morgan M Audetat replied to Larry Schaffert's discussion How to correctly insulate exterior wall in a 1900 house?
"My own farm house is sided with 1/2" t&g pine boards and vinyl. We foamed then from the…"
20 hours ago
Tony Hicks replied to Tony Hicks's discussion Slab-on-grade Insulation
"Great thought! I think that would work. I'll have to put the cost together and see where I…"
20 hours ago
Danny Gough replied to Tony Hicks's discussion Slab-on-grade Insulation
"This is a tough detail because the foam on the edge of a slab doesn't provide sufficient…"
yesterday

© 2015   Created by Lawrence Berkeley National Laboratory.

Badges  |  Report an Issue  |  Terms of Service