What’s Better: Generation of Electricity or Conservation of Electricity? What is the best ROI?

 So I was reading a story in the LA Times about the cost of solar electric panels installed in California.  These are panels that are installed on your roof and make electricity.  They talked about how the cost is dropping and most of the utilities have stopped paying out their rebates.  There is still the Federal tax rebate of 30% of the total job cost. They said that the state wide average cost for enough solar panels to make one kilowatt of electricity is $3,395.  Now this sounds very expensive and it is a lot of money for one kilowatt (1,000 watts) but as an investment in a livable planet for our next generation it is a great ROI.
If your SCE average bill is $125 a month, you can buy solar for your house for an upfront cost of $30,238 and your payback would be 8.5 years.  That’s an 11.76 percent ROI according to www.Solartothepeople.com.  That’s 11.76 percent at a very, very low risk; I would say solar has the same risk as a bank CD that pays 0.01 percent.
So what does this have to do with swimming pools?  If I can generate electricity for 11.76 percent ROI what would be my ROI if I invested into conservation?  An energy efficient pool pump, for a residential swimming pool, cost about $1,500 installed less the SCE rebate of $300 and a $100 manufacturer’s rebate equals $1,100 total investment.  An energy efficient pool pump will lower your SCE bill by $83 a month, which is a 90.54 percent ROI.  See if you can beat that Warren Buffet.  With a three warranty parts and labor warranty and an expected life of 10 years, an energy efficient pool pump is a very, very, very low risk investment.  Replace your pool pump today!
90.54 percent is a fantastic ROI, but if you are hungry for an even better investment in saving electricity check out the ROI for the commercial HOA pool pumps.  At the commercial level the SCE rebate is $1,000 per pool pump and the average HOA has eight pool pumps.  Each pool pump replaced will save $2,000 a year in electricity.  With an installed cost of $1,700 less $1,000 rebate equals $700 total investment.  An energy efficient commercial HOA pool pump will lower the SCE bill by $165 a month, which is a 282.80 percent ROI.  Eat my dust Warren Buffet!  That makes the potential electrical savings for the average Santa Clarita HOA over $15,000 a year, with the combination of the SCE rebates and the first year’s electrical savings your HOA can replace all its pool pumps for free.
So next time your HOA management company demands a raise in your HOA dues but also says that “it’s not my job to spend the HOA money wisely and it’s not my job to make a phone call to arrange for free pool pumps and it’s not my job save your HOA $15,000 a year.”  You should vote no to a raise in your HOA dues and yes to replace all the pool pumps.  Also it may be time to look for another HOA management company, one that does not have the attitude of “Qu’ils mangent de la brioche”, (“Let them eat cake”).
For more information, call 661-263-7503 or visit www.poolsbyben.com.