A DIFFERENT LOOK AT GOING GREEN
This is not my day job or particular area of expertise, but I have embraced green technology for a different reason. It is about the money. This is the safest investment I have ever made and is a different look at going green. The recent community bank conference in Texas (IBAT) had several speakers and bankers concerned about green lending or being discouraged to lend into climate unfriendly areas. The green investments I have made can be incorporated into every bank’s portfolio and could help if the government begins monitoring climate friendly lending percentages. This works if you believe in climate change or not. Both sides benefit from this concept.
THE FIRST STEP
December 2016 I made two purchases. I had solar installed on my home and I purchased a Tesla Model S. I bought a Chevrolet Volt in 2018. Prior to the purchases I was spending $600 per month on electricity and fuel for two cars. My bill last month was -$5.21. This is a return of over seven thousand dollars per year. The solar investment was in the mid twenties at the time. The people selling solar usually pitch an 11 to 12 year payback. I did it in a little over five by factoring in gasoline expense elimination. I have told several solar “experts” that they are not selling solar looking at the full picture.
INCREASE BANK LOAN DEMAND
This enables banks to create a green lending package using a HELOC type loan to use home equity to enable a long payback period to purchase solar and possibly one or two EVs. The amount spent on energy can be used to service the debt. This will create several low risk loan packages for the bank. Ten of them could go over a million dollars. I have been thinking about having banks gather their medium and high balance customers so I could meet with them and show the money that could be saved going this way.
WORK WITH YOUR UTILITY
Our electric provider offers net metering. This means if we generate more than we use the excess is sold back to the utility. We have a connect fee of $22.50 that gives us access to their grid. We sell the power back at their cost, but it beats not getting credit at all. Year to date we have produced ten percent more electricity than we used. The power company bills monthly then the count restarts for the following month. Most utilities now have similar offerings.
TESLA TO THE RESCUE
There is one major car vendor that is also a major player in solar – Tesla. They guarantee the lowest prices on solar installations as well as make industry leading automobiles. Several friends mention the latest EV from other manufacturers. Their initial sales seem to satisfy pent up demand then their sales drop off. If you or your customers never go on a long trip in an EV all of the brands are similar. If the EV is your primary vehicle and you take longer trips Tesla is the only brand to consider at this point. Their Supercharger network enables nationwide travel with little disruption during the journey. I have been on three trips exceeding 2,000 miles with no problem. The current vehicles can be charged while you are stopped for lunch or dinner breaks. Many hotels offer EV charging for guests. This gives you a free start to every day. Jay Leno’s recent comments reflect that Tesla is the brand to beat.
A FREE OFFER TO HELP
Several banks and vendors wanted to pick my brain on what I did to accomplish the transition to electric. One of the vendors builds branches. They wanted me to visit with their architect to push solar on new branch projects and to make sure the customers saw what they are doing. I am available to visit about putting a plan together for the bank and your customers to begin a Green program. I think the way I did it was as painless as possible. It should get easier as each year passes. My direct number is 512-986-6093 ccrawford@lqas.com.