For Houses, It's Glamorous to Be Green

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Since 1980, Bergey Wind Company, a pioneer in residential wind energy, has sold turbines in over 90 countries from Saudi Arabia to Africa and all over the U.S.

"We have always been concerned with aesthetics," said Karl Bergey, the co-founder and CEO, who is also an aeronautical engineer. "The design of our turbines is simple: three blades, no gear box, and only a few moving parts. People just put them up and they run. There is no scheduled maintenance." Bergey Wind Company moved to a bigger factory in Norman, Okla., in August, 2005. Increased demand for turbines in 2006 has put them on back-order until March or April, 2007.

Commercial Models

The Bergey turbines come in two sizes. The smaller model is meant for off-the-grid home use in the U.S. and for rural electrification programs in developing countries. The larger model is meant for homes already connected to the electrical grid, and in a moderate wind area can provide most of the electricity needed for an average house. Since its introduction in 1983, this type of turbine has been installed in over 900 sites worldwide.

AeroVironment has just started selling "microturbines". Their Architectural Wind series offers a different mounting option: the turbines can be installed on commercial buildings. They showed this design at Wired magazine's Nextfest conference in New York this past September.

"People just went gaga over it. I keep getting calls from people saying, "I have to put that on my house," said Paul Glenney. Currently the small turbines have optional architectural canopies to "dress up" a commercial building. A typical turbine system costs $60,000, with an additional $30,000 for the canopies that adorn the turbines and prevent birds from flying into them. Their newest system will be installed mid-December at the New Jersey State Aquarium. Glenney said they are also looking into residential applications.

Capture the Sun

Duogen, a British wind company, will publicly launch a stylish, retro, turbine called the StealthGen in 2007. It builds on designs the company developed for yacht turbines and can be used in residences.

The sun generates enough energy in one hour to power the electrical demand of the entire world for one year. The key is capturing this energy and converting it to a useable form. Sharp Electronics has become the world leader in solar products by tackling this challenge.

Solar panels are made of thin layers of silicon. When sunlight strikes the cells, chemical reactions release electrons, generating electrical current. Sharp's panels are either square—roughly the size of a computer monitor—or triangular. They fit into racks that hug the roof of a house. An inverter converts the electricity into a current that can be used in homes. And a monitor lets residents view the electricity generated, power consumed, and CO2 reductions generated.

Solar Equity

While solar panels began as a "boutique business" for Sharp, says Marc Cortez, from the company's solar division, it is now one of their biggest growth areas. California makes up three quarters of their U.S. market; New Jersey, New York, Arizona, and Nevada also offer rebates to homeowners. Unlike wind turbines, which can make a powerful visual statement, solar panels are more subtle. Over the past several years, Sharp has developed new ways to integrate the panels into house roofs more seamlessly.

Sharp is also creating new programs to offset the installation cost, which is approximately $31,500. It recently teamed up with CitiMortgage to offer a home-equity financing program for solar energy systems. Instead of dipping into savings or applying for a loan, homeowners can use the equity in their homes to help offset the cost of installing solar panels on the roof.

While green technologies are making inroads across the U.S., penetrating the dense downtowns of cities will be more tricky, at least for do-it-yourself homeowners. Thulin, the geothermal contractor from Southampton, installs systems in New York's boroughs, but not yet in Manhattan. "It's difficult to drill a hole without hitting the F train or power lines, so that limits what we can do in Manhattan, despite the demand," he says. Zoning laws are much stricter in built-up city areas and very few buildings have the space needed for turbines.

Sauna Society

But entire apartment buildings are becoming solar-powered. And the skylines of U.S. cities are changing, as buildings like the new Bank of America Tower—the most environmentally friendly skyscraper in the world—are erected. Or the 18-story Federal Building in San Francisco, which will be the first office tower in the U.S. to eliminate at least 70% of air conditioning by using a computer-controlled skin that adjusts to the weather.

In the meantime, Americans will keep looking to foreign pioneers from Britain, Japan, and Germany—decades ahead, by some estimates, in their development of cleaner energy for the home. By way of example, the entire city of Reykjavik, Iceland, is powered by geothermal waters.

"Green buildings and homes are healthier, improve productivity, and make happier employees and residents. And, by the way, they save energy. Who doesn't want that?" asks Glenney from AeroVironment.

McConnon is a correspondent for BusinessWeek in New York.