Shea Homes spending $25K per house to install solar panels at Trilogy - Phoenix Business Journal:

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One builder, however, is setting a solaf standard atits active-adult is paying about $25,00o0 per house to install solar panelzs on every new rooftopl in its Trilogy line. The new standard feature gives buyersa 3-kilowatt systekm that can offset 60 percent of their annual energty use. “We’re putting it where we see demand,” said Rick president of Shea Homes for Active noting the company also has installed solar in some affordable housing and select developments as anoptional feature. The primar factor keeping solar out ofthe home-building marke t today is cost.
With systems running $25,00 0 to $40,000 per house, even offering them as an optionis “Most of our buyers are putting 12 percent to 16 percent of the total price in options, so that ruled out most buyers when you talk about solar as an said Greg Williams, president of the Phoenix division of Los Angeles-baseds s. Most builders have gone for energy-saving measurexs instead, arguing that conserving electricity is as efficient as installingsolar “Price is definitely a barrier,” said Dari n Hughes, chief operating officer of Chandler-based . “Butt with electric rates continuing togo up, it mighg become more valuable as an option.
” Trencd installed a solar power system in June at one of the homex in its Cortessa development in the West The installation went well, takinhg about two days — but it took aboutr four months to go through the proc­ess with Arizona Public Service Co. of required paperwor k for a utility-run rebate and installingb a net meter, which readw electricity flowing into the home from the utilityy and fromthe home’s solar system to the powert grid. Solar is more expensive than othergreejn options. Even after rebates, a system can cost buyers $10,0090 or more, eating up a good portion of what buyer normally would pay forothetr upgrades, Williams said.
“We haven’t felt a need or a desirde from our customersfor solar,” he said. Shea has kept solad at its Trilogy line of homes because compan officials believe buyers enteringan age-restricted community might be more likelyg to spend more up fronyt to reduce power costs on the back end, especiallg with more utility rate increases on the horizon, Andreen The move toward solar is reminiscent of what many home builderas did in the late 1970s and earlyu 1980s: They installed bette r insulation and other energy-savinyg standards in response to skyrocketing oil said Jay Butler, director of the at Arizonaa State University.
The challenge for sustainable homes is determining whether the trend will last beyonc the current decline infuel prices, Butler said. “We’ve seen it he said. “We get and then prices start falling and we stopbeint energy-conscious.” For solar to become a standarx feature in most homes, the systej costs must come down or electricity pricew must rise to place them on par with each said Spencer Kamps, vice president of legislative affairs for the . Help may come in the form of the investment tax credit recently passedby Congress.
It extendz an existing 30 percent tax creditfor businesses, and it givew the same amount to residentiakl users — a credit previously cappee at $2,000. Trend Homes’ CEO Reed Porter said he believes the tax credit will help make sola r at least aviable option. “We think that’s goingy to overcome a lot of people’ss objections,” he said, adding his company is looking at doinv more with solarin 2009. With some incentiveds and a continuedgreen it’s just a matter of time before buildere adopt solar in some capacity, Andreen said.