This is the conundrum of doing good things for the environment: How do you embrace green energy without the old technology providers becoming broke and obsolete in the process? That is the dilemma faced by the City of Austin and Austin Energy as they try to promote solar energy.

Austin Energy began an initiative to increase solar power in the community by offering rebates for installing solar roof-top panels. It is one of the largest solar rebate programs in the country and has provided more than $18 million in solar rebates since 2004. It has been so successful, in fact, that the program had to be revamped recently to accommodate the volume of customers who want to take advantage of the solar rebates. The 400 applications received so far this year far exceed the Austin Energy budget for the program.

Now Austin Mayor Lee Leffingwell has proposed a new program called "Energize Austin" to provide solar power to more people in the community. The program would offer low-interest loans to allow people to install solar arrays on the roof of their home. A large enough solar panel system could essentially eliminate electricity bills, and greatly reduce the income for electricity providers like Austin Energy.

A solar array works through photovoltaic technology that turns sunlight directly into electricity. An average customer can get 10 -40 percent of their electricity through solar panels on the roof. Austin Energy also offers "net billing" meaning that customers using solar energy can get credit for the times the solar panel produces more energy than a home consumes. Solar panels are easy to maintain and can be easily upgraded to larger systems from the existing system.

According to Austin Energy, the whole community benefits from solar power because it is a clean, quiet, renewable energy that reduces the need for energy made from fossil fuels, like coal and oil. It offers a cleaner, healthier environment, as well as creates economic opportunities. For example, due to the success of the solar rebate program, Austin Energy went from using four installers to 24.

But with the City now proposing to loan customers the money for the cost of installing a solar array, something the rebate program did not do,
Austin Energy is concerned that solar energy use in Austin could expand too quickly. According to the Austin-American Statesman, Austin Energy General Manager Roger Duncan says "the city could have trouble maintaining its grid unless it comes up with a new business model for the utility." Austin Energy is using a 10 year plan for the rebate program to allow for the price of the technology to become more competitive.

Austin is probably not unique in this green dilemma. Berkeley, CA came up with the loan idea that Leffingwell is now proposing for Austin, however solar advocates say it did not dramatically change solar use in Berkeley. Austin Energy should be commended for its many green initiatives, not just the solar rebate program. The hope is that there is a way forward to improving the environment without everyone, including the companies that have provided services for decades, having to pay too high of a price.


Ki lives in the Austin area, where he enjoys biking the hill country. His website compiles information on Austin Texas real estate. His site has a graphical search of the Austin MLS along with a statistics blog on Austin real estate.

Now that long hot summer is over, it's time to reset the thermostat. While there are still plenty of warm days ahead--one of the great things about living in Austin--we hopefully won't be breaking any heat records. Cooler weather means resetting the thermostat, which saves both energy and money.

According to the Earth Day Network, half of most household's energy costs go towards heating and cooling. "The good news is that means you have lots of room for improvement, and even small changes make dramatic improvements in household fuel efficiency." Some of the small things are cleaning vents and replacing air filters, which can save as much as ten percent of heating and cooling energy.

Setting the thermostat just two degrees higher can significantly reduce cooling bills and save energy. Buying a programmable thermostat is also a good idea. Austin Energy even has a Power Partners program, which provides a free programmable thermostat along with installation. The participants in the program agree to coordinate cycling of their air conditioner. For example, the AC would be cycled off between 3 p.m. and 7 p.m. when demand for electricity is highest. Cycling helps keep the demand for electricity level, which saves the city and the individual money.

Another surprising drain on household energy is the refrigerator, particularly if it is an older model. Austin Energy offers cash incentives for turning in old refrigerators, as much as $50, and they will properly dispose of the old one. On average, the refrigerator uses 10 to 15 percent of a household's electricity each month, even more if there is one in the garage as well. Setting the thermostat lower, cleaning the coils and making sure the refrigerator is not placed in a warm area can all help to reduce the amount of energy it uses.

The refrigerator is not the only household appliance that can help reduce energy expenses. Turning the setting down on hot water heaters and insulating the pipes can make a substantial difference in the energy used. Try running the dishwasher and clothes washer with full loads only. Using cooler water settings when possible and letting some things air-dry are also little acts with big returns.

A household energy audit is not a bad idea either. Austin Energy has qualified professionals, but a quick perusal of the web shows that there are many companies out there providing this service. The couple hundred dollars spent on the audit is very likely to be made back with the suggested home energy improvements. Austin Energy even offers free improvements to low-income customers with services like attic insulation, duct repair, caulking and solar screens. These are things that an intrepid homeowner could do on his or her own, as well. Remember, little things can make a big difference.



Ki lives in Austin Texas. He started working with Austin real estate after graduating from UT. He maintains a website where potential buyers search Austin MLS listings. His site also has detailed information on Austin real estate and the neighboring city of Pflugerville.

While the Austin City Council is not giving home sellers a break this year, the federal government is coming through with some tax breaks for the energy-conscious homeowner. For 2009 only, homeowners can get certain tax credits for making energy efficient improvements on a primary residence.

What does this have to do with the Austin City Council? As of June 1 homes older than 10 years are required to get an energy audit and disclose the results to prospective buyers. So along with the new coat of paint and fresh flowers in the yard, homeowners have an added expense to get their homes sold.

The idea behind the city council ordinance is a noble one of keeping Austin green, but the timing is lousy with job losses and a slower housing market looming over the city. "There's never a good time to add fees to a transaction," City Council Member Mike Martinez said in the Austin-American Statesman, "but I think this requirement is a good thing. It allows the consumer to fully understand the purchase they're about to make. If you spend hundreds of thousands of dollars on an investment, you would want to know how efficient that investment is going to be for you."

Fortunately recession-strapped homeowners are not required to make improvements as a result of the $200-500 audit, however the idea is to encourage sellers or buyers to make their houses more energy-efficient. An audit can help pinpoint exactly what needs to be done to make a home greener.

This is where the tax credits come in. Under the Emergency Economic Stabilization Act of 2008, also known as the Obama stimulus package, Congress has provided two tax credits for homeowners making energy efficient improvements. There is a $500 lifetime credit, which gives a 10 percent credit for improvements such as new insulation, windows, skylights, energy-efficient roofing or exterior doors.

The other tax credit is a 30 percent-of-cost credit for energy improvements. This would include $50 for each advanced main air circulating fan; $150 for qualified furnaces, such as natural gas or propane; and $300 for qualifying energy-efficient heating and cooling systems or hot water heaters.

In a buyers market, sellers wanting an edge may go ahead and make some of the improvements indicated by an energy audit, which focuses on things like insulation and the condition of the heating and cooling systems. This year's tax credits may help offset some of those costs. Also, according to the Statesman, "Austin Energy offers rebates or zero percent loans for energy upgrades."

Of course, these tax credits and Austin Energy incentives aren't just for those wanting to sell their home. According to Austin Energy, in the past five years homeowners have made improvements that have collectively saved $3 million by reducing kilowatt-hours by 38 million.

It's a good idea to get the exact details on the tax breaks from a tax professional. The Austin Energy website also offers information on the audits, rebates and loans, along with energy saving tips.

Ki lives in Austin Texas. He created a site which has detailed information about Austin Texas real estate. It allows buyers to search for homes in the Austin MLS. He also maintains a blog with monthly statistics on Austin real estate.