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Lynn Jurich

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The Rise of the Pocketbook Environmentalist

Posted: 04/18/11 09:21 AM ET

While the down economy has left millions of families feeling battered, Americans aren't taking it lying down. They are looking for ways to cut back, save money and make ends meet. In this new consumer landscape, saving is in vogue and bargain purchases warrant bragging rights. As the co-founder of a company that addresses this money-saving need by bringing affordable solar power to homeowners, I've also noticed that bargain purchases and "green" purchases have finally become one and the same.

There is a new wave of environmental consumers I like to call Pocketbook Environmentalists. They're going green primarily because it makes good financial sense, but the fact that it benefits their families' health and the environment also makes them feel good. More often than not, they no longer have to choose between their pocketbooks and the planet.

The most important values for shoppers -- cost, quality, and convenience -- haven't shifted. But, increasingly, green products and services are the superior option in all of these categories. For example, companies like Walmart have stocked their shelves with organic foods comparable in price to non-organic products at mainstream supermarkets, making the decision easy. The Food Institute found that while grocery industry sales grew only 1.8 percent overall last year, organic grocery sales were more than twice that (4.4 percent). Going green is cost-competitive with other products and services, and easier than ever.

Another example is Zipcar's convenient and cost-efficient car sharing service. With Zipcar consumers avoid the upfront cost of buying a car, not to mention gas, insurance, and repairs. Plus, they reduce the number of polluting vehicles on the road. Suddenly the planet-smart carless option is also the convenient money-saving option.

What's more, while Americans battle the recession they also have to deal with rising gas prices and ever-increasing electricity costs. Not surprisingly, soccer moms from the Midwest are trading in their SUVs for hybrids. Sales of Toyota hybrids, including the Prius, have now topped 3 million, while increased demand for fuel-efficient vehicles has inspired nearly every car company to get into the hybrid market.

Higher home energy bills have also spurred families to look for alternatives to their utility companies. I've met and spoken with them first-hand because they come to solar providers like mine to relieve the burden on their wallets and take control of energy costs. We own, install, insure and maintain the solar panels and all the homeowner does is pay monthly for the power with little or no upfront costs. It's Pocketbook Environmentalism in a nutshell.

Russell Gold of the Wall Street Journal summarized it well recently: "Falling solar-panel prices, generous government subsidies and rising power costs are creating a new breed of solar enthusiasts: people who are installing panels on their roof because they see it as a good investment, not because they are out to save the world."

As a result, new solar panels are showing up in a more economically and politically diverse range of cities. For every family in liberal San Francisco that went solar with SunRun in 2010, nearly eight families in more conservative Fresno made the switch to our solar power service. And New Jersey is now second only to California in the growing nationwide solar market.

For Pocketbook Environmentalists, financial savings are the primary motivator. However Pocketbook Environmentalists are changing the face of the market and the planet for the better by demanding that going green saves you money. And that's a new Earth Day motto we can all get behind.

Lynn Jurich is the president and co-founder of SunRun.

 
 
 
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11:42 PM on 04/21/2011
a wise person once commented, "the only green most American homeowners care about is the green in their wallets." Then she went and bought some affordable solar panels at http://solarpanelsonline.org and saved on her electric bill every month. She was pleasantly surprised that she could get into solar for about $3,000, and get a 30% federal energy tax credit to boot.
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12:06 PM on 04/19/2011
Wow, so if people are using their economic sense to put solar on their roofs, why would they ever use SunRun? Oh, right, because SunRun was one of the main lobbyists fighting our access to loans so that WE could own the panels ourselves and reap the economic benefits of solar directly, so now we don't have any choice.

How silly of me to forget how SunRun fought PACE loans because they cannot compete on a level playing field because of their fundamentally flawed business mode of inserting themselves between homeowners and the solar power they produce while adding no value.

Why would anyone agree to that flawed system? We won't - unless - we are not allowed to borrow money for the panels. And that is exactly what SunRun fought for - denying us access to our OWN tax money to try and force us to use their meritless system.

And so far it has worked, thanks to grotesque overreach by the FHA, but millions of us are fighting to restore access to PACE loans so that WE can own our own solar panels and repay the loans through the property tax system (so the loan stays with the house and the lender has no risk), and WE can get the value of our sunshine for ourselves. In the meantime, we are boycotting SunRun for its anti-American position on PACE.
04:25 PM on 04/18/2011
This is not new trend, but its one that will have to be endlessly repeated. The US, unlike Germany, did not come up with a comprehensive solar panel buy-in program. Some US media and government officials are so invested on the fossil and nuclear power industries that a sizable percentage of the population is convinced its not economical.

As with many disinformation campaigns, the hardest hit are the poorest. Its generally wealthy Americans who are taking the tax breaks for a five to ten year return on investment in renewable energy installs.
12:03 PM on 04/18/2011
Yeah, I didn't think of this as a new trend, nor did I get that as the point of the piece. Rather, it seems like there's a tipping point that we're reaching culturally where consumer demand and the market realizing that its no longer niche. And if that's true, frankly that's great news. Its great if the cost of organics and other more environmentally friendly products have become cost competitive enough for middle class families to afford. Hope the trend continues...
10:11 AM on 04/18/2011
I think you are wrong about the relative importance consumers place on cost, quality and convenience remaining the same. It is precisely the change in how we rate these that will have the hugest impact on consumers' buying choices. It used to be that the ranking was convenience, cost, quality. Now people have switched to quality, cost, convenience, and that is a big switch. People have realized that they need to think long term to truly save money. Even though a Kleen Kanteen costs twenty times more than a bottle of water, people are finally waking up to realizing that they will save money over time if they make the upfront "investment" in quality. Add in zero waste, lowering one's carbon footprint and being healthier by not drinking chemicals leached into the water from a plastic bottle, and the choice is obvious.

The zeitgeist is rapidly changing.
09:14 AM on 04/18/2011
This is nothing new. People would prefer to be environmentally friendly when given a choice between 2 equal products and the difference is eco-friendly then they will likely buy the eco-friendly product. When people buy fuel efficient cars it's to save money at the pump. However, I have a van because it's cheaper to haul everyone around in one car rather than 2. Or when hauling goods, it's cheaper for 1 trip than multiple. The problem lies in forcing the changes by artificially making one product cheaper or more expensive than it really should be. This doesn't allow the best product to prevail. Green technologies will continue to develop and will eventually reach the point of profitability. Try to force it will not help and may hurt the cause in the future.