The term "solar builder" hasn't yet been assimilated into our national vernacular. It will though, says Rick Hunter, managing partner of St. Louis, Mo.-based Sage Homebuilders; it's only a matter of time.

Right now, however, it appears that homebuyers' demand for solar energy in their homes is outpacing builders' willingness to provide it. The disconnect makes sense. Consumers can't read a magazine, watch the news, enjoy a DVD or endure the Academy Awards without hearing about how energy efficiency — particularly solar energy — benefits them. Meanwhile, we don't hear a heck of a lot about how providing homes with solar energy benefits builders.

It does, says Hunter. The most prolific benefits, he points out, involve powerful marketing since homebuyers are becoming more interested in eco- and fiscally-friendly solutions and are not willing to be left behind by an industry that is clearly moving toward solar energy. The U.S. Department of Energy agrees with Hunter. "Solar-powered homes present an opportunity for builders to set themselves apart from the competition," says Steven Chalk, program manager, solar energy technologies program, and acting program manager, building technologies program, at the department's Office of Energy Efficiency and Renewable Energy. He says he has every reason to "anticipate great progress in the industry."

The benefits for builders aren't just about marketing and sustaining long-term success. Chalk and Hunter both refer to a great responsibility and opportunity for builders to make a difference in the environment at a critical point.

"The building industry is the biggest source of carbon emissions, period," says Hunter.

In fact, says Chalk, "Buildings represent 39 percent of U.S. energy use, more than transportation or industrial sectors. Because of this fact, and because this use is projected to increase 30 percent through 2025, we have a significant opportunity today to drastically reduce U.S. energy consumption by rethinking how we design and build our homes and offices. Architects and builders have a great opportunity to change the way we use energy by designing and constructing energy efficient buildings with solar panels that generate energy on-site."

Sage Homebuilders is among the few builders in the industry wholly devoted to energy efficient construction. As Hunter puts it, "We are a ‘green builder,' not a ‘builder that builds some green.'"

He concedes that Sage went green in part to differentiate itself, but the opportunities that Chalk cites were also major factors in the decision. "We want to do our part," he says, adding that Sage isn't the only builder that feels this way. "I think the typical builder is interested in doing the right thing, but it has to make sense from a business point of view."

Bright Business Sense

There are financial incentives for builders that construct homes that use significantly less energy than conventional homes, though no specific incentives for building solar-powered homes. These incentives can be researched at www.energystar.gov and should be monitored, too, since it's possible the federal government will add incentives to suppliers of solar energy.

Right now, though, the majority of the incentives are geared toward homebuyers. And that can work for builders, too.

Consider that a home with solar energy can link to the external power grid. This would allow the home to use the solar energy generated by the home as needed. If it runs out of solar energy generated by the house, it takes in energy from the grid. If, on the other hand, the house produces more solar energy than is needed, it gives energy back to the grid, often earning credits from the utility companies. It's a no-lose situation for the homeowner that's extremely marketable for the builder.

"This is especially attractive as energy prices and utility bills fluctuate and [solar panels] provide an added financial stability to the homeowner," says Chalk.

For homeowners, though, solar energy can do more than just save on utilities. Homes with solar panels can seek a federal tax credit amounting to 30 percent of the cost of the panels and installation (capped at $2,000 for residential properties, with no cap for commercial properties), according to Chalk, who adds that state and local credits are also available in certain areas.

The financial boost for homebuyers is just one of several factors that make solar energy a hot trend that builders can pursue, says Brian Golden, vice president, product strategy for GridPoint, a maker intelligent residential energy solutions. For one, he says the average American is very aware of the need to conserve energy, "even more so than during the energy crisis of the 1970s."

The post-September 11 world climate, including the U.S. military action in Iraq and Afghanistan, has necessitated that Americans step up their focuses on alternatives to oil and other fossil fuels. President Bush, in a February 2006 statement, called on Americans to "change how we power our homes and offices." He vowed to "invest more in zero-emission coal-fired plants, revolutionary solar and wind technologies and clean, safe nuclear energy."

As Golden points out, energy independence has been redefined as a matter of national security. He says when you combine that with a larger portion of everyone's paychecks going to electricity bills you have a lot of Americans concerned about reducing their own environmental footprint. "Offering solar is a way for builders to address that need and distinguish themselves," he says.

Demand for solar energy is also growing due to technology improvements, according to Chalk. The products needed to add solar energy to a home are perceived as expensive. They are, but the prices have been falling recently due, in part, to there being a greater number of solar energy manufacturers.

Even today a home equipped for solar energy is more expensive than a comparable home without solar energy, says Hunter. That's why explaining the long-term financial and environmental benefits is critical, he explains.

The cost barrier could be eliminated soon, says Chalk. "In support of the President's Solar America Initiative, focused on making electricity from solar cost-competitive by 2015, in March 2007 the Department of Energy selected 13 industry-led technology development projects focused on achieving significant reductions in the cost of solar systems," he says. "In the meantime, we anticipate great progress in the industry that will continue to lower solar technology costs between now and 2015. As these projects progress and the cost of the technology decreases, and if conventional electricity prices continue to increase, more and more homeowners will choose solar for their homes because the return on their investment will be attractive."

If the government's initiative is successful, or near successful, builders who aren't accustomed to constructing solar-powered homes could be at a competitive disadvantage. If given the choice between two like-priced homes, why would a consumer choose the one that brings with it higher energy costs?

For these reasons, Hunter predicts that solar energy will become one of the fastest growing features in the homebuilding industry. "We're on the cusp of a major upswing in demand. All market forces are pointed in that direction," he says.

Eclipsing Obstacles

An increase in demand for solar energy-equipped homes requires an increase in suppliers. Enter builders. But that's easier said than done for some. The builders that have eschewed solar homes to this point have done so for a variety of reasons.

The biggest obstacle has probably been that the cost of adding solar energy products jacks up home prices too much. That is changing, however, at least according to the U.S. Department of Energy. Still, there are other obstacles, or perceived obstacles, that builders need to overcome in taking on solar homes. Several of these perceived setbacks are worth reconsidering.

Complicates Construction and Integration. "Builders may be hesitant to integrate solar panels or solar hot water heaters into homes because they have never done so before," concedes Chalk.

Several builders, meanwhile, have done it before. Sage, for instance, went so far as to build a showcase home for the National Association of Home Builders (NAHB) Green Building Conference in St. Louis in March. The house demonstrates many energy saving features, one of which is solar energy. Sage calls it a "near zero" home because it generates most of its power from the sun and requires "near zero" energy from the grid.

By displaying the home at the conference, Sage, in essence, was showing other builders how feasible it is to build energy efficient solar-powered homes. The solar element isn't that challenging, says Hunter. "It's pretty minimal. Primarily, you need to design the home so there is sufficient southern exposure. You need to make sure there is enough square footage on the roof to accommodate the panel you have in mind. The most challenging thing is getting the electrician to run a DC line, and finding one that is familiar with working with that. So there's a little challenge — getting subcontractors to modify what they do — but it's a small challenge."

Tendency to Dredge Up Fear of the Unknown. There is a lingering perception that solar energy is futuristic. People expect homes with solar energy "to look like rocket ships," Hunter jokes.

In reality, the components that make a home solar-ready are fairly unassuming, says Marc Cortez, director of marketing, Sharp Electronics, Solar Energy Solutions Group, Sharp Solar. For instance, he describes the solar systems Sharp supplies to builders as consisting of "rooftop-mounted solar modules mounted on a racking system, an inverter that converts the sunlight-generated electricity into standard utility-grade electricity and some cables, connectors and switches. That's it!" He adds that there are no moving parts and that "maintenance consists of periodically rinsing off the solar modules and replacing the inverter after 7 to 10 years."

Hunter says that products from GridPoint can make a solar energy-equipped home user-friendly — easy to maintain, monitor and adjust. GridPoint's Connect products are "plug-and-play" replacements for the equipment needed in homes with renewable energy. They facilitate the process of selling excess power back to the utility, and provide battery backup in the event of power outages. Plus, GridPoint has a Web portal component called Central that allows homeowners to monitor their energy consumption and make adjustments to further reduce usage and costs. "That makes me excited," Hunter says, "because as a green builder I'm always telling homebuyers about the savings and energy management aspect. This lets them see it in a user-friendly way."

Subject to the Burnout Factor. Antiquated though it may be, some still view solar power as somehow having less juice than conventional energy. Perhaps, they are thinking of solar calculators, quips Hunter, "but the sun is a powerful thing."

Chalk agrees that the old perception isn't valid. "Because most homes today incorporate solar panels that are connected to the electricity grid, the homeowner does not see any difference between the electricity from solar panels and the electricity from the grid."

That's good news for homebuyers and for tech-savvy builders. Back in 2004, Sharp was among a group of manufacturers that partnered with William Lyon Homes to open an "eco-oriented" village in Rancho Mission Viejo, Calif. The homes in the development, Walden Park, average a reduction in utility bills of about $375 per year, according to Sharp. Meanwhile, the homes are ambitious technologically, says Ron Kenedi, vice president of Sharp Solar. "Sharp's complete residential solar electric systems are featured in a growing number of beautiful, high-tech homes," he says.

Gives Architecture Solar Blemishes. Do homeowners really want a big solar panel on their roofs? Actually, yes, many do, Hunter says. Let's face it, solar energy carries with it quite the buzz these days and some people like to show off the fact that their homes are energy-efficient. "I predict that solar will become the next ‘keeping up with the Joneses' thing."

Of course, many homebuyers and builders do not want to see panels on their roofs. Cortez says there are many options available for them. "Sharp, for example, makes a rooftop integrated module that replaces five standard cement tiles and integrates seamlessly to give an unobstructed, clean appearance."

Sharp is far from the only company pursuing stealth solar products, according to Hunter, who calls it the "fastest growing sector of the industry." He says builders can find countless solar shingles and tiles.

One example is SunPower SunTile from PowerLight, which offers a roof-integrated solar solution that it says "complements the natural design of any rooftop."

These stealth solutions are only the beginning, says Hunter. "Soon to come is solar film that can be put over windows."

Some companies, like Dawn Solar, make solar collection systems that can also be hidden from view, below roof tiles. Not only does this make them completely invisible and hidden from the elements, but according to Dawn Solar, it makes them "nearly indestructible."

Rise of a New Era

Getting past any perceived obstacles — and choosing to build energy renewable solar-powered homes — may position builders for success. According to Chalk, the government is pushing hard to make these types of buildings commonplace and common choices for homebuyers.

The Department of Energy is promoting "net zero energy" building, he says. This is similar to the "near zero" home that Sage built for the NAHB Green Building Conference, but it aims to completely wipe out utility payments for homeowners.

In 2004, Clarum Homes says it built the largest "net zero energy" home community to date in Watsonville, Calif. Developments, such as Clarum's, according to Chalk, will become more common and more affordable. He says the department is conducting the design and technology development necessary to make such constructions cost the same as conventional homes.

"Today, without incentives, a ‘net zero energy' home would cost more to own than a conventional home, but incentives and rising energy prices might still make it an attractive investment," he says. "In the future, any increase in the mortgage would be balanced by a decrease in the energy bills, making the house cost-neutral."

Builders can already build homes that are 30 percent more energy efficient than today's energy codes at a price that is "cost-neutral," according to Chalk. As more builders realize how marketable this can be, "we will hopefully see more of these homes on the market."

Chalk calls on builders to learn more about energy efficient building technologies and practices by visiting www.eere.energy.gov/buildings. Now is the time, he says, that "builders can make an important contribution to reducing our nation's energy use."