The Sacramento Division of Lennar Homes finalized a partnership on March 13 with the Sacramento Municipal Utilities Authority (SMUD) that will result in the largest solar energy initiative ever attempted in the home building industry.
The initiative, dubbed the Solar Smart New Homes Program by the utilities authority, will result in the construction of 1.254 homes in 11 communities in the Sacramento metro area between now and 2010. The board of directors of SMUD, who are elected by the public, approved the partnership in a March 13 vote.
Solar photovoltaic power generation systems with an average output of 1942 AC watts (equivalent to 2.3 kilowatts DC), along with inverters and reverse electric meters, will be included in every one of the Lennar homes to be built in the area. Additionally, the homes will be built incorporating other energy efficient technology, including radiant barrier attic systems, heating systems with an Annual Fuel Utilization Efficiency (AFUE) rating of 92, air conditioning systems with a Season Energy Efficiency Rating (SEER) of 14 and overall Energy Efficiency Rating (EER) of 12, and fluorescent lighting. The combination of technologies will qualify the homes for Home Energy Rating System (HERS) independent certification of energy efficiency.
Jeff Panasiti, president of the Lennar's Sacramento Division, said the agreement was a perfect fit with Lennar's SOLAR PLUS PROGRAM in California. "It is a large commitment," he said. But, he added, "Our business is set up to build a home that has all the features that a customer wants."
In the Sacramento area, one of those features is apparently solar technology.
In the nearby city of Roseville, Lennar has three communities that feature the solar system and 13 that do not. "The three generate almost 100% more people through in a one-month period than the others," Panasiti said."
Wade Hughes, the Solar Smart program manager for SMUD, said, "Lennar has been a long-term partner in SMUD's new-construction project. And we came to a point where they made it a priority to offer solar in their northern California communities. This is a big win not only for the participants, but for the non participants as well-the home buyers."
The cost of installing the technology will run between $10,000 and $12,000 per home, after SMUD and state rebates are factored in. SMUD is offering Lennar $3 per watt installed in rebates, plus there are tax credits of $2,100 to $2,700 per home for energy efficiency. Home buyers also will get a one-time, $2,000 federal tax credit for purchasing the home.
Panasiti said the rebates will be used to pay for the installation of the equipment. The PV technology supplier is SUN POWER CORP of San Jose. The cost to $10,000 to $12,000 cost of the technology to Lennar will be rolled into the sales price, then into the mortgage. The average Lennar home price in the market is $455,000.
"The cost works out to $48 a month if carried out over the life of a mortgage," said Panasiti. "You're going to cover that plus with savings on energy bills."
The technology should save home buyers approximately 60% on energy bills. The PV system will generate power during the day, putting the power onto the SMUD grid. The electric meter will spin backwards during net power generation. At night, the home will draw power back off the grid, and the meter will spin forward. SMUD uses an annualized net metering system, so that if a customer generates excess power at the end of the given year, SMUD will cut that customer a check.
