By Mike Antheil, Renovate America’s Florida Director of Market Development and External Affairs
It seems like everyone is looking to increase energy efficiency these days. From the federal government down to homeowners who just want to lower utility bills, the focus is on using energy wisely and making smart investments that will pay big dividends in the long run.
Roofers know that a well-insulated, well-installed roof is an essential part of an efficient and comfortable home. Here in Florida, the state’s comprehensive plan includes goals to reduce our state’s overall demand for energy through both conservation and efficiency measures, and to reduce greenhouse gas emissions by promoting renewable energy.
The good news for all of us is that more efficient homes go hand in hand with lower utility bills. And for Florida’s roofers, they also mean a steady trend toward investment in higher quality, more efficient roofs and roof-related products.
Five years ago, the State of Florida approved a program called Property Assessed Clean Energy (PACE) – but it never really took off for our residential sector. It’s a form of financing designed to support this move toward energy efficiency and renewable energy. PACE provides financing for a wide range of energy-efficient products, including several applications specific to roofing in Florida, and has a proven track record of bringing financial benefits to contractors by increasing the demand for roofing work and other home-efficiency
improvements. Understanding the PACE financing model and being able to make homeowners aware of it has proven to be a significant advantage for roofing contractors where the program has been active for some time.
PACE financing enables homeowners to make wind hardening, energy-efficiency and renewable-energy improvements to their home and pay for these improvements over time through an assessment on their property tax bill. This program covers the entire cost of the project with no upfront cash outlay required. PACE providers partner with local governments but are privately-capitalized, so the program costs nothing to taxpayers. The PACE model has flourished in California over the past four years. Renovate America’s HERO Program, which has financed the majority of all residential PACE activity in the nation, has provided more than $1.3 billion in financing for more than 58,000 projects to date. In the process, the program has spurred the creation of 11,600 local construction-related jobs and counting. In solar alone, that’s 34,390 projects and $488 million.
Most homeowners replace or upgrade their roof only when their current roof leaks or suffers damage. At that point, they are faced with a decision, to go with a lower-cost repair or replacement, or invest in a higher-quality new roof that will pay dividends for decades. Roofs that are more expensive at the time of installation typically provide safer, more comfortable homes as well as lower utility bills. But many homeowners do not have money set aside to cover this contingency, and their first instinct is to move forward
with the lowest-cost option.
These homeowners often believe that their only options are to take out a HELOC or to pay for their new roof with a credit card. But in areas where PACE financing is available, the very same homeowners are likely to be able to afford the best roof for their current situation, not just the lowest-cost option presented to them. By eliminating up-front costs and spreading payments out over up to 20 years, PACE brings energy-efficient roofing options within reach of most Florida homeowners. And unlike any other form of financing, any remaining balance on the assessment may be able to transfer to the new buyer when the house is sold, since the project is a fixed asset that stays with the house.
With these energy-efficient roofing options at their disposal, homeowners can also choose their construction project to include solar thermal (hot water) and solar PV (electricity). Solar and roofing projects work well together and can be an added benefit to the homeowner to be installed at the same time with integrated construction.
There have been some exciting recent advances in energy-efficient roofing technology. One new tile material is made of a geo-polymer bonded to foam, with a UV-resistant top layer. In addition to providing energy savings, these tiles eliminate moisture buildup, thus extending the life of the roof, and are designed to withstand wind speeds in excess of 250 mph. Another new tile system has solar cells embedded in the steel tiles, with a cool roof coating and ventilation. Traditional tile and metal materials have been improved as well.
A cool roof has numerous advantages for homeowners. By staying substantially cooler than a traditional, dark-hued shingle roof, a cool roof will keep the whole house cooler, reducing the need for air conditioning and in turn, saving money on energy bills. Research by the Florida Solar Energy Center shows that a white tile or metal roof can reduce cooling demand by 20 percent. Other studies, conducted by the Cool Metal Roofing Coalition and Oak Ridge National Laboratories, showed energy cost savings of up to 40 percent
for energy-efficient metal roofing (with Energy Star certified high reflectance paint systems) compared to standard asphalt shingle roofing.
Tile and metal roofs last at least two to three times as long as the less-expensive shingle roofs, especially in Florida’s climate. A cool roof of any material may also last longer by suffering less heat damage than a roof that heats up to 150 degrees or more. This kind of roofing also keeps homes cooler in spaces that don’t have AC, or that are temporarily without AC due to power outages. Following a hurricane event, many houses can be left without power for days at a time. Having a cool roof can make a big difference in the
wake of a natural disaster.
As an added benefit, cool roofs can benefit the community and the environment, with the impact growing as more homes add them. A neighborhood with many cool roofs and solar installations will have lower air temperatures by reducing the urban heat island effect. There will be lower electricity demand during peak hours means less costly energy. And of course, reducing electricity consumption has the larger-scale effect of improving air quality and reducing greenhouse gas emissions by cutting demand for energy generation.
Yet another reason for homeowners to choose higher-efficiency tile or metal roofs over less expensive shingles is that properly-attached tile and metal roofs are also better suited for resisting hurricane damage. The U.S. Department of Housing and Urban
Development conducted numerous studies in the wakes of Hurricanes Andrew, Hugo and Iniki that bore out this finding. Weather hardening improvements that protect against wind and water damage are eligible for PACE financing, because they go hand-in-hand
with increased efficiency.
PACE financing is sure to be a significant boon to roofers and their customers as it takes hold in Florida. As customers and contractors make the shift to longer-lasting, more efficient roofs, PACE financing will play a significant role in helping customers to secure the roof they want and that will serve them best, even if the initial outlay is higher than simply moving forward with a like-for-like replacement when a roof fails. PACE programs like my company’s HERO program will offer training to contractors on how
PACE works, how to demonstrate savings that an efficient roof can achieve, marketing and branding support, and access to low-cost working capital to grow your business. Florida roofing companies would be well served to learn more about this innovative form of financing and how it can help their business and their customers take advantage of cutting-edge roofing technologies that save energy and lower utility bills.
Mike Antheil is Renovate America’s Florida Director of Market Development and External Affairs
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