What's the Payback

How much does it cost? What is my return on investment?


I bought a Gibson Epiphone Les Paul Custom a few years ago. It looks similar to the one below, but it is made by Gibson's subsidiary, Ephiphone. I get a lot of pleasure out of it, but I won't ever play it like this guy nor will I ever have the return on investment as he does. In fact, in a tangible sense, I will always have a negative return on investment. Every time I play it, the thing will cost money  (electricity, strings, maintenance, etc), not earn money (no revenue stream).

  
 ( Question and Answer: Who is the Band?)

The cost between an Epiphone Les Paul and a Gibson Les Paul is at least tenfold. I am not skilled enough to warrant the additional cost of the Gibson. My audience is me (my family takes no pleasure in listening to me "Jam". For them, it is the opposite of pleasure). But, a few evenings a week, I make some noise, frustrate myself that I can't keep up with the recording I'm playing along with, but generally, enjoy myself. What is that worth? I don't know.

Talkin' 'bout my renovation


I often get asked what the payback/return on investment is on renovating/building energy efficient homes. I could site some statistics from the ENERGY STAR WEBSITE. But a home I renovate or build is typically even more efficient than Energy Star. So what's the comparison? There is something tangible there, but we need to establish a baseline to compare to. However (and the opposite of my guitar) every time the temperature swings above a comfortable setting, or the wind howls, you are saving money. We must also ask, are there intangibles to consider?

What is of Value to You?

It's the value you as a homeowner put on anything. What is the value of a flat screen TV? A vaulted ceiling? Trim details? Is there a tangible way to determine payback on those items? Probably not.

In terms of energy efficiency, do you expect the price of energy to heat and cool your home to decrease or increase? I have some opinions, and we can discuss that. What will future regulations require for the efficiency of homes? How will the efficiency of a home now affect it's value in the future? Most of us aren't soothsayers, so we can only extrapolate that notion. Again, I have opinions on that, and we can discuss it.

What is the value of increased comfort level? How about a healthier home? That's an intangible only you can put a price on.

Building and renovating homes is a complicated process. Sometimes what we can see (like TV's and Countertops) holds more value than what we can feel, (or in the case of comfort levels, not feel), like well detailed air-sealing. As in the case of my guitar, it would have been absurd for me to pay the extra for the Les Paul. There's no value in it for me. If I looked at it from the standpoint of payback or return, I threw money out the window. There is no tangible payback. None.
 
I will never try to convince you what you should value in your home, only you can do that. I can inform, guide, lead, but only you can choose.



Posted by COASTLINE BUILDING at 8/29/2009 10:10 AM
Categories: Energy
Tags: energy independence renewable energy energy efficiency solar power Energy
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