Warming Up
By
ALLEN ROBERTS Jr. - 6/12/2006
Los Angeles Business Journal Staff
The
green construction industry has been heating up in Southern
California over the past several years and
that’s just the way Jacob Gooze likes it.
The founder of Acme Environmental Group, Gooze designs,
manufactures and installs roof-top solar-powered
radiant heat and hot water systems – and businesses
is, well, hot.
The three-year old Santa Monica company has seen revenues
jump to $1.2 million over the last two years from
just over $300,000 as Gooze has installed his system in
every type of residence, from hillside mansions to
suburban tract homes.
“I’ve spent thousands of hours studying these
systems and how they work,” Gooze said. “But
that’s the only way
you can truly understand these systems and how they work
– each system is unique and has its own
challenges.”
Acme’s radiant systems absorb solar energy and use it
to heat water that is circulated through tiny plastic tubes
imbedded into the foundation of the house –
essentially turning the concrete, wood or tile floor of the
house into
a giant, low-temperature radiator.
The systems cost between $7 and $15 per square foot to
install, depending on the materials and type of site.
Industry proponents contend the systems can pay for
themselves in less than a decade, especially in cold
climates with large winter heating bills.
This type of heating was invented by the Romans centuries
ago, but in recent times companies such as Acme
have refined the systems, which have become popular with
local architects such as David Hertz and Warren
Wagner.
Now, it’s not only the ultra-modern homes of
green-minded millionaires that are moving toward
eco-friendly and
efficient radiant heat, but also smaller tract homes in
Southern California and elsewhere – thanks to the
rising
cost of a gas, oil and electricity – and a $2,000
federal tax credit
According to the Radiant Panel Association, a non-profit
advocacy group for radiant heat and solar systems
based in Loveland, Colo., the market has surged and demand
has nearly tripled since 1999.
“Radiant heating systems have been popular in
cold-weather states for decades,” said Larry Drake,
the
executive director and founder of RPA. “And recently
we’ve seen more and more contractors in warm weather
states, like New Mexico and California, including radiant
heat systems in the homes they’re building.”
Intricate
installation
The
systems involve the installation of solar panels that heat
water and run it through plastic tubing imbedded
into the slab of a house in loops running 8 to 12 inches
apart. The tubing also can be installed as a retrofit,
though that is far more costly.
The concrete slab is said to be 40 percent more efficient
than traditional heating systems, typically providing
about 70 percent of the owners’ heating needs. That
can cut energy bills by as much as 50 percent. The tubing
water also can be used to take a shower.
Gooze got his start in green heating as a general
contractor in the L.A. area about 10 years ago. He helped a
friend integrate a solar heating system from a sailboat in
to his vacation home in Wyoming. After Gooze
installed that system, he would periodically check back
with the owner, especially when it was cold, and
didn’t
find any problems.
Convinced of the systems’ advantages, Gooze began to
install more and formally started his business three
years ago. Last year, he hired another two workers to bring
his total number of employees to eight, allowing him
to handle up to two dozen projects at a time.
Currently, Gooze is installing a retrofit system in the
home of Mandeville Canyon homeowner Al Rosen, who
said he learned about radiant heat right after finishing
some renovations on his 4,000-square-foot structure.
“We weren’t satisfied with the performance of
our forced-air heating system, which ironically we had just
installed,” Rosen said. “So I did some research
and found that radiant heat was more efficient and
performed at
a higher level.”
Rosen, like a lot of Southern California homeowners, liked
the environmentally friendly aspect of radiant heat
and already had solar panels installed on his roof for his
domestic water heater. Adding the radiant system
“made perfect sense,” he added.
“The only downside was the price,” Rosen
admitted. He would not disclose what he was paying.
“But I have
huge expectations based on what I’ve heard from
others who have the system installed.”
Industry
growth
Though
nearly 75 percent of the market is still residential, the
systems are also appealing to businesses, resorts
and other commercial enterprises.
The Laguna Cliffs Marriott Resort & Spa in Dana Point
recently installed one of Acme’s systems in its
outdoor
dining patio, moving away from the portable gas heat lamps
traditionally used.
The radiant heat business measures growth in the amount of
cross-linked polyethylene – or “Pex”
– tubing,
which is used to transmit the heated water throughout a
structure. In 2004, the most recent year for which
numbers are available, close to 350 million linear feet
were sold, enough for about 100,000 homes or a $467
million a year market.
Drake believes that the market will grow by several
multiples over the next five to 10 years, helped by a
$2,000
federal tax incentive on any new solar heating system,
though that credit expires after Dec. 31, 2007.
The credit is convincing homeowners without seven-figure
salaries or who are not dedicated to a green lifestyle
to
consider installing the systems.
“In the summer, you can heat virtually all of your
hot water with one of these systems,” Gooze said.
“In the
winter, they can be used in conjunction with a gas-powered
boiler and virtually pay for themselves in a matter of
a few years.”
However, one of the biggest challenges hindering the growth
of the industry is a shortage of qualified
contractors, Drake said.
“Right now you have a lot of plumbers installing
hydronic radiant systems,” he said.
“Unfortunately, most don’t
have the proper training or knowledge of these complex
systems so sometimes customers are getting faulty
systems installed, and that is a major setback.”
For now, though, that’s fine with Gooze, who said he
so bombarded with work that he and his crew are handling
all they can.
“The only thing limiting me is me,” he joked.
“I only have the time and wherewithal to manage 30 or
so projects
at once and demand far exceeds that.”
Acme
Green Technologies
Year Founded:
2003
Core
Business:
Installing and designing
traditional and solar-powered domestic hot water and
radiant floor-heating systems
Employees
in 2004:
4
Employees
in 2005:
6
Goal:
To make between $1.2 million and $1.5
million in revenue this year
Driving
Force:
The desire by homeowners and business owners to have
energy-thrifty heating systems
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Angeles Business Journal, Copyright © 2006, All Rights
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