Appraising Solar Energy

If you want to build a Solar or Net-Zero house today, you'll likely encounter this source of frustration: the amount you invest in a PV system will not be reflected in the home's appraised value.  In my area, a PV system is given no value (ZERO) by appraisers, even though it has a real asset value of $20-30,000, and it will reduce the home's operating cost by hundreds each month.  Why would a speculative homebuilder include solar?  The buyer will only be able to borrow up to the appraised value; the builder will be giving away his or her profits by installing PV.  Everyone I've talked to in the real estate industry knows about this.  The NAHB acknowledges this problem in a page entitled “Valuing Green Homes for What They’re Worth.”  Appraisal practices represent a huge barrier to solar energy. 

This would seem to be an easy problem to solve.  Would you be surprised to learn that it has persisted for nearly 40 years?  Here's an excerpt from a 1978 report (referring to solar-thermal heating systems):

"The appraisal of a solar home for purposes of permanent finance is an unresolved issue within the financial community.  The builder and purchaser benefit from appraisal practices which include the cost of the solar system in the value of the home.

Lenders report that the most common appraisal technique is the market valuation method, which is based on the sales of comparable units. However, at this time there are few, if any, solar homes in the market area served by local financial institutions.  As a result, appraisers have wide discretion in determining value.  The diverse practices of the interviewed permanent lenders reflect uncertainty over the question of appraising solar systems."

It is hard to believe that this is still an "unresolved issue"!

Source for quotation: "Building the Solar Home," HUD Report by Dubin-Bloome Associates, 1978.

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Update, October 2017: A new Rocky Mountain Institute (RMI) report confirms this problem, saying builders "do not directly benefit from the operational cost savings and have no incentive to maximize them."  The solution is called residential property assessed clean energy (R-PACE) financing.

Some Facts about Air Conditioning

Source: U.S. Energy Information Administration, Residential Energy Consumption Survey (RECS), 2009.

Source: U.S. Department of Energy, 2011 Building Energy Data Book, 2012.

Source: Intergovernmental Panel on Climate Change (IPCC), Climate Change 2014: Impacts, Adaptation, and Vulnerability. Part A: Global and Sectoral Aspects. Cambridge University Press, 2014, p. 655.

Solar Futures: The View from 1978

The history of solar energy is full of predictions that were not realized and appear in retrospect to have been too-wishful.  Here's an example from 1978:

"No one's crystal ball works very well in examining energy futures, but based on available information and recognizing the uncertainties we view the following goals as optimistic but achievable if we commit the necessary resources to them:
...solar energy technology could meet a quarter of our energy needs by the year 2000.
...It is now possible to speak realistically of the United States becoming a solar society.  A goal of providing significantly more than one-half our energy from solar sources by the year 2020 should be achievable if our commitment to that goal and to conservation is strong."

Source: Solar Energy, Progress and Promise, Council on Environmental Quality.

See also: Solar Futures: The View from 1973

Best of 2015

In reflecting on 2015 I realized I had some amazing architectural experiences.  I thought I'd share them!

1. Maggie's West London Centre, by Rogers Stirk Harbor Partnership (RSHP)

It's a few years old but this is the best new building I've experienced in some time.  It's a cancer care facility---a medical institution---but meant to feel like a home.  I loved it: highly imaginative and beautifully designed at every level.  Who puts a diagonal roof structure on a square grid of columns?  Here it makes perfect sense.  I was also struck at how the design revealed the straight line of influence from mid-century California to the London School.  (It is not open to the public.)

2. Fondation Jérôme Seydoux-Pathé, by Renzo Piano Building Workshop

Here, as at the Maggie's Centre, we were fortunate enough to have a private tour and be alone in the building.  A once-in-a-lifetime experience!  The rooftop reading room is the centerpiece of Piano's design, and it's one of the great rooms in Paris---a city with a lot of them!

3. Chartres Cathedral, mid-renovation

A major restoration is underway at Chartres Cathedral.  I couldn't miss the opportunity to see it in-progress.  (The left image shows the choir completed versus the South transept in its old state.)  I don't agree with Martin Filler that this is "scandalous" but it's certainly a departure from the dark and gloomy interior to which we are accustomed.

4. Le Corbusier: Mesures L'Homme exhibit at Centre Pompidou

Everybody loves Le Corbusier, and there's always more to learn about him!  I thought this exhibit was very well curated and the presentation was brilliant.

Also visited for the first time:
Lawn Road Flats (Isokon building), by Wells Coates
Kew Gardens (link)
St. Bride's Church, by Wren
Saw Swee Hock Student Centre, by O'Donnell + Tuomey Architects
Walkie Talkie Sky Garden, by Rafael Viñoly
Fondation Louis-Vuitton, by Gehry Partners
Musée du quai Branly, by Jean Nouvel
"la Caixa" Foundation, Barcelona, addition by Arata Isozaki (and Aalto exhibit - link)
Milwaukee Art Museum, old by Saarinen, new by Calatrava
Charnley-Persky house (SAH) and Madlener house (Graham Foundation)

The 1970s: the Attitudinal Barrier

After the energy crisis of 1973, a number of architects quickly became interested in solar architecture and other energy-efficiency measures.  However, these practices did not appeal to many of the establishment and "star" architects of the time.  By the late 1970s the resistance became a point of frustration for those in the solar architecture movement, as seen in this passage from Greg Franta:

The attitudinal barrier of architects themselves may also be a major constraint. Philip Johnson, FAIA, is a world-renown architect (of nonsolar oriented buildings) and winner of the 1978 AIA Gold Medal Award. Mr. Johnson was recently asked when he would start including solar applications in his design process. His response was, "...only after all of the other architects do." Another leading architect, John Dinkeloo, was quoted during the judging of the 1977 Progressive Architecture Awards Program as saying, "I'll be glad when 10 years have passed, and everybody has gotten off this solar kick. They'll find out what a bunch of bologna it is, and get back to work." The attitudinal barriers of leading architects may be a much more serious problem than many people care to admit.

---Gregory Franta, "Commercializing Solar Architecture," Solar Energy Research Institute (March 1979).

See also: A note on the solar architecture of the 1970s