Inflation Reduction Act’s Solar Rebate is Great, But One Builder Says It’s Not a Green Building Magic Bullet

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Photo Courtesy of Hoffmann Homes

Energy-efficient homes and environmentally-friendly, cost-saving measures like solar panels are becoming increasingly popular in Dallas — but there’s a lot more that homeowners can do to save money and reduce waste, and it starts from the ground up, experts say. 

The Inflation Reduction Act — approved by the U.S. Senate earlier this month, the U.S. House last week, and signed by President Joe Biden on Tuesday — allows households installing solar panels to deduct 30 percent of the cost from their taxes. With a $369 billion price tag, the bill represents the most ambitious climate spending package in U.S. history, expected to boost energy security and lower consumer electric bills. 

Some local builders say that’s a good thing — but solar won’t solve all our problems. 

Alan Hoffmann is a local leader in sustainable, energy-efficient home building. His Abode at White Rock development features car-charging stations, energy-efficient materials, high-performance windows, and concrete-insulated walls. He’s a fan of solar panels but says energy efficiency is about tying several components together. 

“Solar panels are extremely important,” Hoffman said. “If you think about the growth in this region, solar has delivered. If there were no solar we would all be suffering. It has been supportive of the grid and it makes the grid perform better. That’s why you’ll see Oncor giving rebates. Energy providers are not necessarily resistant to what green builders are doing because they’re viewing their companies as energy companies. As we come into more demand in the coming years we’re seeing more breakthrough technology. We’re seeing better batteries and a reduction in lithium. We don’t have an energy problem; we have a technology problem.”

Hoffmann Homes

Going Green

Hoffmann, founder and president of 4Tree Development LLC, a member of Dallas’s environmental commission, and a leader in the environmental building movement, became the first builder to introduce concrete forms to North Texas in 1995. 

Hoffmann’s home at 2111 Autumn Sage Place, recently showcased on the Dallas Builders Association Parade of Homes, features thick, thermal mass walls, breezeways, and whitewashed cement finishes. The pantry is a storm room, and there’s an additional storm shelter/panic room. Three of the homes in the Abode development are capturing rooftop rainwater in an above-ground cistern for irrigating the entire site. The electric bill last month at the Autumn Sage home, during consistent 100-degree days of summer, was $80. 

While the new law will do much to grow our nation’s use of solar panels, energy efficiency starts with concrete insulation, Hoffman explained. 

PSW’s North Oak Cliff development, Bishop Heights. Homes include solar panels and earth-friendly construction materials.

“That’s the biggest bang for your buck,” he said. “I build giant Yeti coolers disguised as homes. The lower BTU consumption you’re using, the less energy input you need. There’s less AC tonnage required. You’re looking at a lower amount of energy to drive that tonnage. We take the savings and buy better equipment. Where you save the money is at start-up. Every time the compressor kicks on, there’s less energy to get that thing spinning. You don’t necessarily need to run your AC at 100 percent capacity, but maybe 20 percent capacity.” 

Hoffmann’s homes are certified with the Department of Energy’s Net Zero Ready Program, Energy Star Program, and Green Built Texas. 

He’s often approached by homebuyers who want an energy-efficient home because that’s what he builds, but he says he’s not sure it’s become trendy because of the front-end expense. A three-bedroom spec home in the Abode at White Rock costs about $949,000. 

But, again, the electric bill in July is $80. 

“You wouldn’t buy a Ferrari and put cheap tires on it,” Hoffmann said. “It’s always amused me and confused me that this is such a high-tech town. People want the latest and greatest in terms of technology, but we don’t incorporate that when it comes to homes,” Hoffman said. “No one wants to change, whether it’s good or bad. By committing the resources to technology, we can drive the prices down.”

Saving Money

A recent builderonline.com report identified Texas as having 70,708 homes with a Home Energy Rating System (HERS) Index Score, more than any other state. The score is an industry standard by which a home’s energy efficiency is measured. 

Under the new Inflation Reduction legislation, home improvement credits for energy efficiency will not only allow homeowners to deduct 30 percent from the cost of solar panels, but other upgrades like heat pumps, insulation, and battery storage systems. It also means lower electric bills, saving households about $1,800 a year, according to Rewiring America, a nonprofit that promotes energy efficiency. 

Under the new legislation, those in a certain income bracket ($150,000 for or less for an individual, $300,000 or less for a couple) will be incentivized with a $7,500 tax credit for purchasing a new electric vehicle or $4,000 for a used one. 

Some Republicans, including Marco Rubio, R-Fla., opposed the Democrat-driven bill. 

“[My constituents are] not buying an electric car any time in the near future,” said Rubio, a staunch critic of climate-change legislation. “They’d like gas prices to come down because we’re producing more oil.” 

Hoffman doesn’t have much to add to the debate on climate change or partisan issues that have emerged on the topic. 

“The climate is changing, period,” he said. “We are on a rock spinning through space and rotating around the sun. Things are going to change. Are we contributing a huge amount of carbon to our atmosphere? Yes, every day. The planet is going to be fine. It’s going to go on with or without us. I’m tired of people saying science is BS. I’m not the guy who’s going to be at that rally.”

Environmental and Climate Action Plan

During an Aug. 9 budget hearing, District 11 Dallas City Councilwoman Jaynie Schultz suggested adding solar panels to City Hall and advocated for the continued implementation of the Dallas Comprehensive Environmental and Climate Action Plan, adopted in 2020. 

“I’d like us to make sure that we take a strong advocacy position on CECAP with the same urgency that it requires if we want to secure futures for our children, especially with our policies and how we do our own city buildings,” Schultz said. “We know that building materials are the largest emitter of greenhouse gases and our own use of fossil fuels as a city. I’d be happy to help with any campaign of our own efforts here at City Hall, such as recycling and reducing the power, even thinking about putting solar panels on the roof of City Hall if we haven’t already looked at that.” 

CECAP is a “comprehensive road map that outlines activities that the city will undertake to improve quality of life, to reduce greenhouse gas emissions, to prepare for the impacts of climate change, and to create a healthier and more prosperous community,” according to the city website. 

The program identifies environmental challenges facing the city, culled from a 2015 greenhouse gas inventory. An implementation action plan highlights existing initiatives in the city for environmentally-friendly building practices.

The Wave of the Future? 

Hoffmann said city leaders are making strides in energy-efficient building practices. 

“Everyone wants to do the right thing,” he said. “I think the industry is moving forward.” 

He doesn’t suggest imposing mandates on builders but rather encouraging best practices for efficiency. For example, a radiant barrier — an inexpensive coating of what looks like aluminum foil around the plywood on a roof — reflects the heat from the roof and keeps heat out of an attic, drastically reducing the amount of air conditioning needed to cool a home. 

“I’ve been lobbying for this for 14 years,” Hoffmann said. “Dallas hail storms cause a lot of roof damage. One of the biggest things we can do on a re-roof to reduce the carbon emissions in the city is installing a radiant barrier. When you re-deck a roof you’re already putting new plywood on the roof. If you re-deck your roof, you can put in a radiant barrier. We have a quarter of a million single-family homes in Dallas. I don’t know how many roofs get changed out annually because of hail storms, but that would be a thing you could do to impact carbon emission. That alone would make your AC work better.”

2111 Autumn Sage Place

There’s even a spray version, like reflective paint, that creates a radiant barrier, Hoffmann added. 

“That’s a simple, low-cost thing that could be done if the city would encourage it,” he said. “They don’t require permits for a re-roof and they don’t regulate it.” 

The city is, however, eligible for federal grants and working toward improving technology, Hoffmann said. 

There’s a financial payback when the construction begins with a plan for efficiency and durability, the builder explained. 

“The slab becomes an essential component of keeping the home cool,” he said. “You weigh the building science with cost, and there’s a balance. Should I spend a little more and get a better product? Yes. I aspire to build the Honda Civic of houses — quality, long-lasting, and efficient. What’s really going to drive it is insurance companies. They’ll see whole neighborhoods wiped out vs. one that’s still standing, and you’ll see severely discounted insurance rates. By building a building the way we do, they’re windstorm-resistant. If it’s a two-story frame home and it’s hit by a tornado, it’s a pile of sticks.” 

Hoffmann said he has high hopes that other builders are getting on board with energy efficiency.

“We’re building better homes than we’ve ever seen built,” he said. “Solar is essential and brilliant, but it’s the first thing people’s minds go to when you do a green transformation. It’s not the first thing we need to do. We have to really think it through from the ground up. I don’t know if it’s the wave of the future, but I hope so.”

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April Towery covers Dallas City Hall and is an assistant editor for CandysDirt.com. She studied journalism at Texas A&M University and has been an award-winning reporter and editor for more than 25 years.

1 Comment

  1. Alan Hoffmann on August 24, 2022 at 4:15 pm

    Hi April,

    I appreciate you writing this article. We are trying to convey a very clear message about what green housing looks like and you shared this expertly. Thank you so much!

    Alan Hoffmann

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