Let’s Change the Way We Treat Home Renewable Energy Systems as Financial Assets

A reader asks for advice re: insurance companies’ treatment of computerized electricity systems (CES).

Craig, Can you help me find a way to get insurance companies to give policy discounts for the new CES panel that is on the market? It has built in spark/arc suppression, lightning suppression, removes the need for power strips, etc. If the insurance agencies would look at this in the same way as they do fire sprinklers, etc. we could put a lot of people to work retrofitting both commercial and residential buildings. The insurance savings (especially on the commercial side) would pay for the retrofit of the panels in a matter of months in most cases. Then we have built in savings on insurance and probably 20% automatic reduction in the energy savings. If you haven’t looked at these panels yet, check them out at www.c-e-systems.com. They are incredible and will be the next wave in our government mandates for energy monitoring and management.

I’m afraid I can’t be of direct help, other than to let others know about it.

But you bring up a point that has implications far beyond CES, i.e., the way in which a great number of eco-friendly systems in our homes are treated by insurance companies – and by banks as well. Right now, the solar array on your roof is not part of your mortgage; it’s treated as if it were an appliance like a refrigerator or dishwasher. But here’s a permanent system, like plumbing or central heating, with a guaranteed life of 25 years, that’s performing a useful task (lowering your electric bill) 365 days a year.

I see a day coming in which such systems are included in the value of your property, and rolled up in your mortgage.

Thanks for writing, and sorry I can’t be of more specific help.