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August 5, 2008

Cost is the Key!

Analysis of: US home builder outlines greener future | www.energyefficiencynews.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Implications: Solar Panel systems are not yet cost effective for builders to use on traditional housing.  Overall, an environmental movement will help sell homes, however, it must make financial sense to be widely accepted in the building industry.

Analysis: Having previously worked for several public homebuilders on the buy side, I understand the cost associated with developing "greener" neighborhoods.  Throughout the last cycle, many municipalities would streamline the entitlement process if the development was planned to be environmentally friendly.  Through the streamlined process help procure entitlements the costs often associated did not offset the time saving.  I agree that energy efficient windows, tankless heaters,  and reuse of building supplies all make sense, but we have yet to see a cost effective solar panel system.  The company that creates that system should be able to build a strong market share in the homebuilding industry.


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