- Joined
- Jun 27, 2017
- Professional Status
- Certified General Appraiser
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- California
Pacific Gas & Electric announced earlier this year that they would start turning of power in dry high wind conditions in various parts of California, but it didn't occur to me how close to home it would hit. But, on second thought, it does make sense.
Large areas of the San Francisco Bay Area are going to be hit with power outages today - in addition to many other areas of California. The outages could last up to a week.
Many people in this area absolutely need electric power for one reason or another. Many run websites from their home, and need continual electricity to maintain them. Oh, then of course there are the refrigerators and freezers.
I think we are already seeing an impact on values in areas surrounded by dry forests. However, the final outcome will likely be far worse as time goes on. California will keep getting drier and hotter.
1. Solar Energy can replace some of the power, but you need expensive batteries and installation which can cost $15K+. And such batteries can only provide back-up power for at best 6-8 hours of use.
2. Natural gas and diesel generators are going to be needed by many. Even these will not provide the electrical energy that could be provided by the grid. But they can suffice for most. Such generators cost $10K-$25K, plus installation. Also, perhaps more importantly, they incur fuel and maintenance costs. Some estimates are that generators could cost $100/day to run. Not to forget that automobile gas and diesel in California costs twice the national average. Natural gas is about the same as the national average. Thus I would assume most in California will opt for natural gas generators to supplement batteries.
This link includes a zoomable map that is pretty good:
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www.ckpower.com
mrelectric.com
3. Eventually there may very well be restrictions on the use of diesel and natural gas generators, as they are noisy and polluting. In fact, this goes without saying in California. Who is going to invest $15K+ in a system, when they don't know if the state is eventually going to outlaw its use?
Conclusion: Eventually, homes that are located near large forests, subject to such power outages, could have their values reduced by as much as $50K-$100K+, -- to be clear IF AND ONLY IF there are no upgrades to mitigate the problem. For example, a home on a large parcel could have a small solar energy farm that actually sells electricity to neighbors, possibly by recharging batteries (e.g. Tesla Powerwalls https://www.cleansolar.com/battery-storage-g/?gclid=EAIaIQobChMIsbzNj6OP5QIVUhh9Ch07cg65EAAYASAAEgI-RfD_BwE)
The final impact won't be known until all the regulations have been generated.
--- Oh yes, there is the small issue of fire insurance, State Farm and other insurance companies are terminating many policies in these areas and, of course, refusing new applications.
Large areas of the San Francisco Bay Area are going to be hit with power outages today - in addition to many other areas of California. The outages could last up to a week.
Many people in this area absolutely need electric power for one reason or another. Many run websites from their home, and need continual electricity to maintain them. Oh, then of course there are the refrigerators and freezers.
I think we are already seeing an impact on values in areas surrounded by dry forests. However, the final outcome will likely be far worse as time goes on. California will keep getting drier and hotter.
1. Solar Energy can replace some of the power, but you need expensive batteries and installation which can cost $15K+. And such batteries can only provide back-up power for at best 6-8 hours of use.
2. Natural gas and diesel generators are going to be needed by many. Even these will not provide the electrical energy that could be provided by the grid. But they can suffice for most. Such generators cost $10K-$25K, plus installation. Also, perhaps more importantly, they incur fuel and maintenance costs. Some estimates are that generators could cost $100/day to run. Not to forget that automobile gas and diesel in California costs twice the national average. Natural gas is about the same as the national average. Thus I would assume most in California will opt for natural gas generators to supplement batteries.
This link includes a zoomable map that is pretty good:
PG&E (@PGE4Me) | Twitter
The latest Tweets from PG&E (@PGE4Me). The official account of Pacific Gas and Electric Company. For emergency assistance call 911, for non-emergencies: 1-800-743-5000. We're here from 8-5, Mon-Fri.
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Considerations for diesel vs. gas generators | CK Power
When looking for a generator set, examine the pros, cons and differences between diesel and gas generators.
Is Running a Generator More Expensive
Is it cheaper to run a generator than it is to power your home from the grid? Mr. Electric has crunched the numbers on the cost of running a generator. What will they reveal?
mrelectric.com
3. Eventually there may very well be restrictions on the use of diesel and natural gas generators, as they are noisy and polluting. In fact, this goes without saying in California. Who is going to invest $15K+ in a system, when they don't know if the state is eventually going to outlaw its use?
Conclusion: Eventually, homes that are located near large forests, subject to such power outages, could have their values reduced by as much as $50K-$100K+, -- to be clear IF AND ONLY IF there are no upgrades to mitigate the problem. For example, a home on a large parcel could have a small solar energy farm that actually sells electricity to neighbors, possibly by recharging batteries (e.g. Tesla Powerwalls https://www.cleansolar.com/battery-storage-g/?gclid=EAIaIQobChMIsbzNj6OP5QIVUhh9Ch07cg65EAAYASAAEgI-RfD_BwE)
The final impact won't be known until all the regulations have been generated.
--- Oh yes, there is the small issue of fire insurance, State Farm and other insurance companies are terminating many policies in these areas and, of course, refusing new applications.
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