Improve buildings and you improve people’s lives 

A whopping 33% of the U.S. population lives in a rented apartment, and these apartments are power guzzlers. We can reduce their power bill by 2/3 with Green Retrofits and solar panels.

 

10 UNIT EXAMPLE: 

 

We purchase a 10 unit building for $1,800,000  with a 25% down payment, ($450,000). We add an additoonal $70,000 into the loan for energy efficiency retrofits and solar panels. We have reduced the utility bill by 2/3. We then increase the rents to reflect the tenant’s utility bill expense plus their Wi Fi payment, and keep the spread as profit. We advertise to the tenants:  Free utilities and Free Wi-Fi in a Low Carbon Footprint environment. 

 

Facts and formulas:

According to the U.S. Energy Information Administration, Californians consume an average of 562 kilowatt hours per month. They pay an average of 16.25 cents per kilowatt hour, and have a monthly bill of $104.00.  Add a $39.00 Wi Fi bill = $143.00 total monthly utility bill x 12 months = $17,000. Add $5,000 for water heating and house lighting = $22,000 annual utility cost. We have reduced this to $4,500 per year thru our retrofits, or by about 2/3. 

 

We then green retrofit and reduce the electric bill by 40%, (per Build It Green California), from $22,000 to $13,200, Expressed in kWh: 562 watts Less 40% = 337 kWh x 10 units = 3,337 kWh per month X 12 months = 40,000 kWh per year.)

 

Solar Panels power formula:

40,000 kWh / 1.50 solar production ratio = 26,665 kWh / 300 watt panels =88 panels. @ $600 installed each = $52,800 in solar panels

 

COST OF RETROFIT:

$52,800 = 88 solar panels.

$10,000 new solar water heater

$ 7,200 insulation, led lights, caulking and repairs

$70,000 @ 5% for 30 years = $375 per month

 

Basic Green Retrofit steps:

 

1.Solar Thermal Hot Water Heater:

Solar water heating systems can typically reduce natural gas demand 60% to 70%. Solar thermal uses the sun’s energy to pre-heat water to a hot water storage tank. Heating represents 40% of a typical power bill.

 

2.Seal building envelope air leaksAdd ceiling insulation, seal air conditioning ducts-possible 30% leakage.

 

3.Replace light bulbs with

LED and CFL light bulbs. About 20% of your electric bill is lighting. LED and CFL bulbs draw about 80% less energy than a regular bulb. 

 

4.Energy Star rated appliances:

Replace old stoves and refrigerators with 

Energy Star rated appliances that operate more efficiently.

 

5.Drought Tolerant landscaping: We can reduce outdoor water usage by 95%, while  giving our building a whole new look.

 

6.FREE Wi-Fi Hot Spot for all tenants.

 

7.On Site Recycling

 

8.Solar Panels: We can now collect the payments from our tenants electricity use.

GREEN BENEFITPer the U.S. Energy Information Administration: Californians consume an average of 562 kilowatt hours of electricity per month, and it takes 1.2 lbs. of coal to produce 1 kWh. In our example: 562 kWh x 10 units = 5,620 kWh x 12 months = 67,440 kWh x 1.2 lbs. coal per kWh = 80,928 lbs. coal per year we believe we can save in our example, after a Green Retrofit.

Fascinating Facts:

 

A 100 watt light bulb will burn 90 lbs of coal over it's 750 hour lifetime.

 

An average home burns 10,000 lbs of caol each year.

 

Steve Nauert 

Ca. Real Estate Broker
License 00622276

310-493-1999