Incorporating Solar Energy in New Habitat Homes

Purpose

The purpose of this guidebook is to help Habitat for Humanity affiliates and their local Rotary and Rotaract clubs make rooftop solar available to new Habitat homeowners. The addition of rooftop solar to new Habitat homes will reduce the homeowner’s monthly power bills, thereby making the homes more affordable, decrease their carbon footprint, and strengthen the local collaborations between clubs and Habitat affiliates.

Acknowledgements

This document has been prepared by the Environmental Sustainability Rotary Action Group (ESRAG), an independent, Rotary-affiliated entity with expertise in and commitment to environmentally sustainable actions. ESRAG operates independently of Rotary International and The Rotary Foundation as a consultancy resource to Rotary and Rotaract clubs and districts seeking to reduce their environmental footprint through local and international projects. Rotary International extends its appreciation for ESRAG’s support of the Rotary-Habitat partnership and for creating this guide to reduce the environmental impact of projects that advance access to safe, long-term housing, improved water and sanitation facilities and hygiene practices, and skills development to strengthen the long-term safety, health, and economic viability of communities partnering with Habitat and Rotary on projects. 

Basic Overview of Solar for Habitat

Rooftop solar uses photovoltaic panels that convert the sun’s light into electricity which is used by the homeowner. Excess electricity is fed back to the grid, which further offsets the homeowner’s monthly electric bill in most states (also known as net metering).

A Habitat 5.4 KW solar installation can save the homeowner $50-150/month in electricity cost depending on the electric rates in the affiliate’s state. In North Carolina, where the price of electricity is 11.6 cents per kWh, the homeowner is estimated to save approximately $55 per month initially, which translates into a savings of more than $24,000 over 30-years assuming the cost of electricity continues to climb by 1.3%. The average solar payback period in the U.S. is just above eight years and can be five to fifteen years, depending on local cost of electricity, incentives and cost of installation.

The Benefits of Adding Solar

The addition of solar panels will result in greater equity, make the home more affordable, and benefit the community, and the planet. 

1. Homeowners
   The installation of solar significantly decreases monthly power bills for homeowners. In addition to the direct financial impact, homeowners gain benefits in health, information monitoring, and equity.

    

   The installation of solar can help interrupt the cycle of poverty by significantly decreasing monthly power bills. This is because utility bills account for a much higher percentage of monthly income for low-income vs high-income families. Solar electricity production also buffers the homeowner from electricity rate increases. As the cost of electricity rises the savings from the solar system rises at the same rate.

   Generating clean electricity protects the homeowner from the health hazards associated with the burning fossil fuels in the home and encourages installation of all electrical appliances. Of note, low-income people of color are statistically more vulnerable to the adverse health consequences of poor indoor air quality (IAQ).

   Solar installations have online monitoring systems that allow families to see their energy production and electrical consumption, thereby helping them reduce their consumption and further decrease their energy bills. The addition of solar typically increases the resale value of the home.

   In some states, homeowners can benefit from the sale of their solar renewable energy credits (RECs) every year.

2. Local Economy
   The solar industry can provide good quality jobs. Installing solar on low-income homes sends the message that solar is for everyone. Solar adoption by Habitat can help lead the larger building industry to embrace solar, thereby increasing the number of individuals employed in this growing industry.

3. Climate Change
   Solar panels generate electricity without burning fossil fuels and hence help protect all of us by decreasing CO2 production and improving air quality. The addition of a 5.4 KW system to one Habitat home saves approximately 270,000 lbs. of carbon and is equivalent to planting more than 3,000 trees or not driving nearly 300,000 miles.
   
   
4. Society Benefits from Greater Equity
   Although low-income families gain the most benefit from rooftop solar, they are the least likely demographic to have access to this renewable source of energy. The average income of households with solar in the US is $113,000. High upfront costs and limited financing opportunities create obstacles for low-income families to afford solar.Low-income families also typically cannot qualify for the 26% federal solar tax credit because they do not pay sufficient federal tax. Therefore, a solar installation costs low-income families 33% more than their wealthier neighbors. This guide can help low-income homeowners access clean, equitable energy.