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.(JavaScript must be enabled to view this email address): April 12, 2010

Will This Man Make Money By Retrofitting His Home?

If everything works as planned, Mike Odynski will save $995 in utility bills each year AND get a free furnace and insulation.

Will This Man Make Money By Retrofitting His Home?

Energy efficiency companies have talked about how you can save money by installing insulation and modern appliances. In San Francisco, one homeowner may make money.

Mike Odynski, a home improvement consultant, will soon kick off a home retrofit that Recurve, the company performing the work, says will reduce his annual energy bill by $3,600. The retrofit will be paid for through a property assessed clean energy (PACE) financing program in San Francisco. Under PACE, the cost of a retrofit is paid for over time as a supplement to the owner's property tax bill.

The total retrofit will cost $28,000, which works out to $2,605 in annual PACE payments. Thus, Odynski should net a profit of $995 (as $3,600-$2,605=$995).

Put another way, he will have a new heater, new ducts and foam insulation in his ceiling that will all add to the equity of his home and additionally lower his total out-of-pocket expenses from day one. Not bad. San Francisco's PACE program was created with help from Renewable Funding, the company run by PACE co-creator Cisco DeVries.

Granted, Odynski's is not a normal situation. He lives in a giant restored Victorian in San Francisco. His utility bills averages $700 a month -- $600 for electricity and $100 for gas. In February, the bill came to $1,136. It's high in part because the house is heated by an electric heater. That will be replaced by an efficient gas heater. Victorians also didn't believe in a lot of insulation, so right now he heats the outdoors quite a bit. (That thing in the picture, by the way, is not home's main heater. It is a gas-burning fireplace insert. It replaced a coal one probably sometime around 1917.)

We will try to follow up on this project in the future. Data will be key to the growth of the retrofit industry and Recurve (formerly Sustainable Spaces) aggressively wants to compile information the economics. The data will be used to bolster its argument, and the arguments of organizations like Home Star, that Congress and the various states should increase the incentives for retrofits. Second, the data will help Recurve fine-tune the software it is creating to help contractors conduct energy efficiency retrofits. Although it conducts retrofits now, Recurve is really a software company in disguise -- several of its employees hail from Google.

Retrofitting, adds Recurve co-founder Matt Golden, also means jobs. Unemployment in construction rose from 18.7 percent in October 2009 to 24.7 percent in recent months. Insulation companies are running at 40 percent capacity. And building materials like insulation generally are not imported -- most of the building supplies consumed in the U.S. come from U.S. factories.

One day, retrofitting companies may also be able to sell retrofits for carbon credits or as "negawatts" under demand response programs, which in turn could line the pockets of homeowners.

Recurve, by the way, has seen higher bills. One client had a $6,500 monthly bill. It had something to do with the water slide in the backyard.

7 Comments

  • Bob McDonagh 04/14/10 1:36 AM

    I’m in the process of building a small Children’s Aviation Center - that can also be used by other aviation organizations on our Airport - in SW Florida. 

    The plan is to also have it serve - as an alternative Energy Laboratory. Geo- thermal and solar sources will be pretty standard.  But, we will have a unique approach - to the wind farm we will create - at the site. 

    this will be 30 -40 large RC aircraft - swiveling on 9’ poles.  the motors will be swapped out for generators.

    Unlike windmills that dotted farms decades ago. These will create electical energy - not mechanical energy to pump water. that energy will be collected in batteries and used locally. Along with nano solar type panels. (nd large underground tubes - under each building.)

    Anyone have some ideas where I can get some assistance with the funding of such a project?  It will consist of 3 buildings.  One is 60’W x 100’L.  Two will be 40’w x 60’ long.  I will soon have an updated website :www.navalairestates.com - that will show this ‘Center’ - as a three building complex. (One of the two 40’W x 60’L building is shown - as only being 40’L.)

    On my other website: http://www.navalairestates1.com is a letter I wrote to President Ford - over 30 years ago. He did not reply.  My local Congressman (still there) did. But, those grants were gobbled up by large corporations - and actually slowed down research or discouraged it all together. (That’s why we are behind other Nations in this area.)

    At any rate, I’m in the fund raising process for the ‘Center’ Any ideas - help others can offer - can offer will be appreciatesd. 

    The second project I suggested is for a billion dollars, that would be build the world’s first alternative energy(s) automobile factory.  (same ideas as my small project - just bigger.  (more savings)

    And this (hopefully, the first of many) would reserrect an old classic American car:  The fast back 1968 Mustang! (Not a Bullit or Eleanor.  A Mary.  (After Lee Iacocca’s wife) It would be more fuel effecient than the early Saturns and have some better safety features. the speedometer would read up to 140+mph - but, it would only go 85.  With build in child seats, a bench front seat and plastic crome like bumpers, it would be a ‘starter car or one also for retirees.  You do the math - and expand on this idea.  And then pick a number of other ones to recreate.  And share profits and sales and service of any such plants - between the American ‘Big Three’.

    Cooperative efforts and profit sharing must become the backbone of any new american endeavors. And the only way to alter an economy - that has 1% of its citizens - holding 76+ percent of its wealth.

    I hope the Govenor Crist champions this approah. I might help him become a U.S. Senator. And with that - and his present better credentials - might become our next President in six years. (If President Obama is successful in obtaining a second term.) 

    Bob McDonagh

    rm.)

    Reply
      • Thelly 08/17/10 11:30 AM

        Bob, I just came across your site. I have to tell you this is what we need. More savings and spread the wealth. There is a lack of creativity. At the same time it is imperative that take steps to save the planet not only money. Keep it up. http://www.investmentadvice101.com

  • Bob McDonagh 04/14/10 1:38 AM

    vvv

    Reply
  • Bob McDonagh 04/14/10 1:56 AM

    I hit the ‘submit’ button - before I corrected some of the errors in the previous letter I posted.  “Don’t throw ‘the baby’ out - with the bathwater”. 

    In fact, you - correct my bad grammer and spelling - and then expand these ideas; with your own thoughts. (One might be to take that existing Saturn plant - and use it for one of the other American classic cars I suggested on: http://www.navalairestates1.com.) 

    (I’d love to have the first 500 of each of those models, off the assembly lines - each year.  I’d lease them out to car rental companies - and take the profits to create a series of my Children’t Aviation Centers/ Alternative Energys Laboratorys - accross the Country.)  Bob McDonagh.  (Again, pardon any spelling and gramatical errors.  (My Bad) look at the content of the ideas.  Bob McDonagh

    Reply
  • John 09/28/11 3:06 AM

    It’s going to be a big investment since it costs a lot but I think it is worth the investment.  Given that you will be saving more in the long run.
    http://2ndskiesforex.com/

    Reply
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