110118 Energy Wise Wish List
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Transcript of 110118 Energy Wise Wish List
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Energy Wise Investors Wish ListD.O.E.
Is asking for a list.(what works, barriers
to remove, etc)
Let’s give ‘em one!
I’m working on it but I need your help!
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Energy Wise Investors Wish ListPreface:
The primary purpose of my invitation to the DOE meeting is to
share what we do at GEE & represent the Energy Wise
Investor’s point of view.
Secondarily I will present observations about the conventional
program-based systems and the status quo, based on 35 years of contracting and many years of leadership in the industry(s)
(I need your help on both of these)
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Basic Assumptions1. We have a wonderful gift in this country,
The Free Enterprise Spirit, aka the Entrepreneurial Spirit.
2. This Entrepreneurial and Independent Spirit inspired our Revolution and Independence, Pioneering our continent, Winning World Wars, Exploring space, and Patenting more
inventions than any other country.
3. Assumption: This same spirit, If turned loose and fostered, not
hampered, fettered and squashed, can greatly help deliver energy efficiency and
save our nation and our planet
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
When Life Gives You Lemons ...
The implosion of the “Real Estate Bubble”
of the last 3 years has been a SOUR experience for many,
foreclosures, loss of equity,
loss of jobs etc
But At The Same Time
#4. These Lemons can be made into LEMONADE
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
A “Window” In TimeThe massive number of foreclosures provide GAME CHANGERS that
could be turned into solutions.
Prices have been reduced to “Before the Bubble” rates
Foreclosure and Bank Ownership makes it worse.
(losing the house, to heck with maintenance &
kick it on the way out)(obtuse bank handling of foreclosures
takes a long time, allows more deterioration, costs $$$) = Big Opportunity
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Opportunity Of A LifetimeThe “Raw Materials” Of A Perfect Storm
= A Perfect Solution
1. Cheap, easily obtainable properties that NEED renovation
2. Cheap interest.3. Increased housing need since
building stopped.4. Increased interest in Green5. Contractors and Tradesmen
available at favorable rates
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
What’s Wrong?Why Dont We Pick Up
The Cards That We’ve Been Dealt & Turn This Amazing Engine Loose, & Fix The
Problems?
?
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Contractors Wont, Homeowners Cant,
Landlords Wont Even Consider It
(Doing Deep Energy
Retrofits)
(And that is the only thingthat will really turn our
situation around) Why Not?
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Why The Current “Program Based” Approach Will Struggle & Produce
Only Minimal Results With High Overhead
Contractors Contractors can only sell what
customers will buy. Contractors may want to sell full packages and really make a
difference in our Energy Dependency and Carbon
Footprint BUT ...
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Contracting In Home Performance Programs
Contractors have very high Overhead and Sales Costs
Supporting & Compliance in the Programs cost even more.
These Overhead, Sales, & Program Compliance costs
dont save any energy ...
That only happens when the Caulking meets the SheetMetal
(you know what I mean)
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Why The Current “Program Based” Approach Will Struggle & Produce
Minimal ResultsHome OwnersMost Americans live on 105% of their income.
We have little or no savings and are easy prey to Marketers peddling
instant gratification, easy credit,and the Magic Something that will make
our lives instantly better. ... So homeowners dont have the funds to do a Deep Energy Retrofit
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Why The Current “Program Based” Approach Will Struggle & Produce
Minimal ResultsLandlords
Landlords & Real Estate Flippers have been taught for many years by 99% of the trainers in the industry to focus on ROI ... To the exclusion
of all else, including Green. So Green is a nice idea ... “but this is
my business”“Lipstick on a Pig” maximizes profit, so that’s what I’ll do. It’s still a pig!
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Which Looks Better?
Results Current Residential Real Estate Investing Models:
Lipstick On Pig ModelMaximizes ROI
Fastest TurnaroundNo Energy RetrofitNo Energy Saved
Foreign Oil Dependence, SameCarbon Footprint The Same
No Jobs CreatedDrags Down NeighborhoodCreates Tenants, vs Owners
Reduces Tax Base
Energy Wise InvestorProbably less ROI
Longer Term Thinking RequiredDeep Energy Retrofit
Save 30-50% easilyReduced Dependence
Reduces Carbon FootprintCreates Green Jobs
Improves NeighborhoodCreates Home Ownership
Increases Tax Base
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
What’s Wrong?Why Dont We Pick Up
The Cards That We’ve Been Dealt & Turn This Amazing Engine Loose, & Fix The
Problems?
?
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
BarriersContractors Stuck on Contracting.
Many have watched their businesses, families, & net worth disintegrate around them over
the last 3 years. They are waiting for things to
turn around so they can go back to business as usual. If we
provide a compelling vision, and demonstrated success, some
will sign on to do something different.
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
BarriersAppraisal Industry
Current Appraisal Practice is regressive and promotes the
status quo. (keeping everything the same)
Most appraisers are behind on evaluating energy saving
improvements. They feel they have their hands tied by the
bureaucracy (or are they hiding behind it?)
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Barriers
Real Estate Industry
The Real Estate Industry has fought
energy improvement legislation, including
Energy Efficient Mortgages for many
years.
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
BarriersGovernment Program To Fix
Everything Mentality
People have been conditioned to rely on and expect the
Government or Utilities to be the trusted and benevolent
expert. This allows consumers to relax, drink
more beer and watch more TV but ..... Doesn’t do much for
the American Spirit.
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
BarriersGovernment Programs rely on massive
inefficient bureaucracies.
To justify their existence, bureaucracies must grow = increase in
complexity.
Success of the Bureaucracy usually means Elimination of
Creativity the Entrepreneurial Spirit.
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Q. If The Free Enterprise Spirit Is Turned Loose, How Can We
Avoid Enron Type Scandals?A1. If all Investors Had A Green Heart. (This is hard to confirm and impossible
to regulate)
It can only be confirmed by observation of behavior over time.
If Tax Dollars are going to be spent,There needs to be some guarantee that
the desired outcome will actually be delivered
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Q. If The Free Enterprise Spirit Is Turned Loose, How Can We
Avoid Enron Type Scandals?A2. The Home Performance
Industry has given us the answer. (although most use the term with a
different meaning)
Performance BasedBase any incentives
on Performance(Real Performance,
Not Expensive Unreliable Modeling)
SavingThe PlanetOne HouseAt A Time
G r e e n E a r t h E q u i t i e s . C o m © 2010
Suggestions:To Be Continued
Not Just One Way
Coming Up:The Story of Andrew A
& Andrew B, What is the problem? Which is the solution? What forces are
pulling on the Andrews? See you next week.