Homes in local subdivision ALL will run on solar power [Premier Homes - Sacramento]

Appear in: Sacramento Biz Journal - Friday January 30, 2004

Local homebuilder Premier Homes has started construction on a Sacramento-area housing subdivision made up exclusively of energy-thrifty homes.

The 95 homes in the Premier Gardens subdivision will have standard features such as solar-power-generating roof tiles and other energy-efficient designs.

Premier contends these houses will save homeowners an average of 60 percent on their utility bills.

"For the first time, an entry-level buyer can get a 'zero-energy' home and they are the ones who need it the most," said John Ralston, vice president of sales and marketing for Roseville-based Premier Homes.

Located in Rancho Cordova, off Goethe Road just west of Bradshaw Road, the $20 million Premier Gardens subdivision is on vacant land bordering existing neighborhoods and schools, including James Madison elementary school and Capital Christian School.

Premier is building model homes now with a grand opening scheduled for April. The developer expects the full build-out to be completed by the end of 2005.

While Premier has offered solar options on previous developments, those homes were priced in the $500,000 range.

Here, solar is a standard part of the package; the development's single-family homes come in five basic configurations that range in price from $244,900 to $332,990.

Solar energy more feasible now: Nationally, the U.S. Department of Energy is driving the trend of energy-thrifty home construction, having set a goal to increase the number of new "zero-energy" homes built by 2020.

To earn the "zero-energy" moniker, these residences must meet Department of Energy standards.

According to the DOE, a Zero-Energy Home combines state-of-the-art, energy-efficient construction and appliances with commercially available renewable energy systems such as solar electricity.

They are connected to the utility grid, but because they may produce as much electricity as they consume, the homes are considered to achieve a "net zero" electricity consumption.

Premier is working with the energy consulting firm ConSol, one of four teams participating in a national program with the DOE, and has received additional subsidies from the Sacramento Municipal Utility District.

Several forces helped make zero-energy more economical, even before the state's energy crisis.

California has always been a hotbed for alternative energy. Today the price of equipment has come down, while the price of energy has gone up.

Also, by building an entire subdivision with energy-efficient design, equipment and solar tiles on the roof, Premier benefits from economies of scale in purchasing and ease of training in construction.

The new energy-efficient features, which add $10,000-15,000 to the cost of a home, include:

A zero-energy design based on the U.S. Department of Energy's standards
ComfortWise specifications, including energy-efficient heating and air conditioning, tight duct work, spectrally selective windows to deflect the summer sun's heat and retain the furnace's heat in the winter
Energy Star-rated appliances
A 2-kilowatt AstroPower photovoltaic roof tile system that blends in with regular roof tiles.
R-38 insulation
Rinnai's Continuum on-demand tankless water heater that heats the water instantly as needed, instead of keeping a tank hot
Fluorescent lighting that halves the bill for light

SMUD's incentives: SMUD will provide Premier $200 per home for advanced energy-efficiency features and about $7,000 per home toward the cost of each 2-kilowatt solar tile rooftop photovoltaic system, said Mike Keesee, energy specialist for SMUD.

SMUD will also offer $20,000 to help market the homes.

SMUD's maximum total contribution is $714,284. About half, or $350,000, comes from the money remaining in the 2003 Public Goods fund. The other half, $364,284, is part of the 2004 budget.
"We're essentially splitting the cost of the photovoltaic system," said Keesee. "It is a lot less than what we've been paying for such systems before. We got some volume purchasing to get a better deal. Installation costs are very low. We're looking as low as $1 a watt. That's pretty darn good." The homes in Premier Gardens will be certified to be SMUD Solar Advantage and Advantage Homes.

As SMUD Advantage Homes, the residences in Premier Gardens will exceed current California Title 24 home energy cooling requirements by 50 percent. California's minimum cooling energy standards are considered among the most stringent in the nation.

Premier Garden houses will also come equipped with advanced energy-efficient lighting and receive a Home Energy Rating to independently verify their energy efficiency. Premier claims that such certifications enhance resale value.

In addition to SMUD subsidies, some homebuyers may qualify for energy-efficiency mortgages designed to subtract the projected energy-cost savings from projected expenses, to help defray the initial costs of adding those energy-efficient features.

Other energy-thrifty projects: The Sacramento region has become a test area for energy-thrifty homes.

In a separate project, the Davis Energy Group has built what they're calling a "true" zero-energy home in Livermore.

According to David Springer, president of Davis Energy group, solar-powered homes sell back electricity to the utility during the daytime when rates are highest and then draw electricity from the grid at night when the rates are lowest.

With this trick, the homeowner can save 60 percent on his energy bill but save 100 percent of the value of the power used.

Instead of being for the entry-level homebuyer, that home sold for $800,000, with the energy-saving features adding $30,000 to the price of the house. Other "green development" features such as granite countertops and concrete made with recycled fly ash added another $100,000 to the price tag.
Based on the data flowing in from the first house, Davis Energy Group is planning a next-generation zero-energy home with Centex. The builders claim it will use a smaller solar array and will be more cost-effective. Meanwhile in Elk Grove, Morrison Homes is building a 120-home gated subdivision in the city's upscale Lakeside area.[Case Study: Lakeside, Elk Grove, California]

The builder claims these homes will cut owners' energy bills by up to 72 percent. Morrison's full energy-saving package costs homebuyers an additional $18,000 and it is an optional package. How many will opt for the package is uncertain.

For Premier, building 95 entry-level, energy-thrifty homes is a gamble that they hope will pay off by raising their profile in the community.

"It is an opportunity to set ourselves apart as a small builder," said Premier's Ralston. "The market will be wanting more energy efficiency in California as time goes on and we want to stay ahead of it."

By: Don Lipper