The True Cost of Sustainable Living

Adventures in Sustainable Living Podcast
 
Episode 84
 
The True Cost of Sustainable Living
 
 
 
For years I’ve heard complaints about how expensive it is to live off the grid. Now I hear all about how expensive it is to live sustainably. But is this really true? And even if it is, no matter what the cost, is our convenience really worth compromising our future on this planet? 
 
In this episode I want to closely examine several aspects of sustainable living and compare costs. At least if I do that then you will know which lifestyle is more expensive.  So stayed tuned for E84 which focuses on the true cost of sustainable living. 
 
Welcome back everyone to the Adventures in Sustainable Living Podcast. This is your host Patrick and this is E84 which is called The True Cost of Sustainable Living
 
Before we get started I want to remind everyone that if you would like to contact me with questions, comments, or even suggestions for podcast content then please feel free to email me at adventuresinsustainableliving@gmail.com
 
So, let’s get right down to this weeks topic. 
 
Since I do a lot of reading about living off the grid and sustainability, I am always open to comments and suggestions from others. After all, as long as I’ve been living like this, I truly do not know it all. Despite building 2 cabins, a green house, a chicken barn, and installing solar, I still come across concepts that I’ve never even heard of and find myself learning new things.  
 
What I have consistently found is that despite the time and effort it takes for me to learn something new, and then complete a project, I always end up saving money. For example, last year I had significant road damage due to heavy rains. In the past I’ve had to pay someone as much as $5K to do road repairs. So this time I learned how to run a large tractor and grade roads, I rented equipment and a truck big enough to move it around, and I did the work myself. The best part is that I only spent $900. 
 
So it surprises me when someone complains about the cost of living off the grid or the cost of a sustainable lifestyle. So what I want to do in this episode is closely look at several different aspects of sustainable living and compare that to a standard American lifestyle. The purpose of this is to figure out which lifestyle is more expensive. 
 
But first of all if you really think about it, in order to live comfortably, all you need is a shelter to protect yourself from the elements, a way to keep warm, basic electricity for lighting, refrigeration, etc., a source of food and water, and a way to bathe and keep yourself clean. That being said, after the basic it is always nice to have a few extras and some measure of comfort of course. So let’s examine every one of these basics needs and see if it is possible to provide for ourselves in a sustainable manner, do it inexpensively than a traditional lifestyle. 
 
Housing 
 
First thing on the list is housing. What does a house actually cost? 
 
This is not something that I am going to dwell on much because there are so many options available. You can buy raw land and live in a tent if you want, or an RV, a yurt, or build a small cabin. I think it goes without saying that if you have the ability to do a lot of the work yourself you can save a considerable amount of money. Also housing costs are going to vary considerable depending on where you live. So, I am just going to talk about housing costs in Colorado since that is where I live and it will give you some standard of comparison.  
 
For example, at the time of this writing, the cost to build a new home along the front range in Colorado is somewhere between $200 and $350 per square foot which is equal to approximately 9.3 square kilometers. This summer I am going to add on a sun room to the cabin and I estimate the cost to run me about $65 per square foot. But I also shopped carefully, purchased materials on sale, used some recycled stuff, and have enlisted the help of some friends. 
 
Based on a construction cost of $200 per square foot, if I have someone else do the work the sun room could cost me as much as $39K. By doing it myself, I expect to pay less that $10K. That is a significant savings that I cannot ignore. Despite the time and effort it will take me to do the work myself, it would take far more effort to raise the money to pay someone else to do the work as opposed to taking the time off worked needed to do it myself.  
 
As far as the cabins on my property, the log cabin cost me a few thousand to build because I harvested timber off the property for building materials.  The newer cabin cost me about $60 per square foot and that includes the solar installation.
 
Source of Heat
 
Now what about a source of heat. 
 
If you are like me and live in a colder climate, you are going to have to have a source of heat. For me, that means a wood stove. Once again, back to the average cost in Denver. At least the newer homes in Denver are heated with forced air gas. Residents pay about $100 per month and up depending on the size of their home. 
 
If I had to purchase firewood, which I do not, then I would spend about $700 per year on firewood to heat the cabin. The advantage for me, is that I’ve been taking firewood off my property for 25 years now and still have plenty. If I get to the point where I have to purchase firewood, there are actually ways to do that very economically.  For example, last year I got about 6 cords of wood and all it cost me was the time to go pick it up.
 
For all my time and effort, my heating is not only sustainable but costs me only a few hundred dollars per year if that. Most other people are paying $1,200 to $1,500 per year for a fossil fuel source that is not sustainable. Not only that, I can control what it costs me for firewood. You cannot control what your utility service provider is going to charge you. 
 
 
Electricity
 
One of my favorite things to talk about is solar energy. This is because it is one of the easiest, most economical, and environmentally friendly ways to run a household from a renewable energy source. Within the last couple of months I was visiting with some friends of mine helping them with a few home projects. We got to talking about solar energy. One of the first comments was “Well we would like to install solar but it is too expensive.”
 
But is that really the case?  
 
To get some true understanding of this, let’s first take a look at the cost of utilities in the United States. Now this is going to vary a lot depending on your type of dwelling. If you live in an apartment, the average cost is around $240/month. Homeowners can expect closer to $400/month. So, if we just take an average on that range of cost, it turns out to be $320/month. 
 
The initial cost of my solar array at the cabin was $9,500. But that also included a battery bank because I am 100% off the grid. If you divide that by $320/month that I am saving on utility bills, my solar array paid for itself in 2 1/2 years. I installed my array in October 2016. What that means is that I have not been paying for electricity for a little over three years now. 
 
Now what you may not know, is that the United States has one of the best climates in the world for solar energy generation. Not only that, we also have some of the best solar manufactures in the world. If you are looking to be more sustainable, then generating your own electricity is by far the best way. By doing so, you take control of your own energy efficiency and you can reduce and even eliminate your dependence on the utility companies.
 
So, let’s consider some hard facts here and just look at the numbers because I think this tells it all. Annual energy consumption for a home in the US is 10,715 kilowatt hours. If you installed a 10 kilowatt array, your average annual energy production is going to be 18,280 kilowatt hours. So, already that is more than what the average household consumes. 
 
Based on these figure, the average cost of your solar package, after tax credits, is going to be somewhere between $10K and $20K. The average pay back period is 7 1/2 years. Your total savings over the 25 year lifespan of the solar array is going to be $62,059. Your cost of utilities to a service provider over 7 1/2 years, based on the average cost per month, works out to be $28,800. Actually if you do the math based on these figures, you cost savings over 25 years is going to be closer to $67K. 
 
Now the best way to maximize your savings is going to be to pay cash up front for the solar array. This is where I think people get hung up, shy away from this concept and complain about the cost. And I have to admit, this is something that got my attention and certainly made me pucker up a bit. I got the quote from the solar company and they said straight away if I paid cash, I would get a much better deal. Once I knew that, I worked really hard for about 6 months in order to raise the money. So essentially I was paying for all of my electricity 2 1/2 in advance. 
 
But if you do not have the cash, you could go with a loan. By doing so, you reduce your savings to about $35K. Doing a lease arrangement, your savings are only going to be about $10K.
 
So, there are three options there for solar application that can fit anyone’s budget. But now that I think about it there is actually a fourth option. You could pay cash for a smaller array and then expand as you have additional capital. By doing this, you spread out the cost and you could be energy independent in 5 years. 
 
Now the way I look at things and is that if I were not paying out of pocket for electricity then you could actually take that money and put it in savings and give yourself a little more financial security.  
 
Another myth is now busted. 
 
That being said, allow me to throw out some other interesting facts;
 
-The total solar energy that hits the Earth’s surface in one hour equals the total annual energy consumption of every one on the planet. Just 20 days of sunshine can create the same amount of energy as all the Earth’s coal, oil, and natural gas combined. 
 
-Solar is the fastest growing energy source in the world. Additionally, the cost of solar has dropped by 80% since 2008. 
 
 
Food 
 
Now let’s talk a little bit about producing your own food, in particular gardening. When it comes to producing your own food I hear all sorts of excuses. Things such as “starting a garden is expensive, I don’t have time, I don’t have enough space, I don’t know how to grow vegetables.” 
 
So, let’s address some of this issues.  
 
When first establishing a garden you are going to spend a little money in equipment and supplies. There is no doubt about that. But if you are creative, you can reduce your costs significantly. Purchase recycled materials, go to thrift shops, buy things in bulk, watch for sales on gardening items, shop online. There are all kinds of ways to save money. 
 
As far as the time commitment is concerned, once your garden is established, I know plenty of people that only tend to their garden once or twice a week. 
 
As far as space is concerned, let me give you a few numbers. 
 
Lettuce can be grown with about 4 heads per square foot. If you grow year round, you are going to get about 48 servings of vegetables per year. 
 
Radishes can be grown about 36 per square foot. The total yield is going to be about 12 bunches per year. 
 
One tomato plant in one square foot will give you about 10 pounds or about 4.5 kilograms of tomatoes per year. 
 
You can plant about 144 carrots per square foot. 
 
Herbs and spices. If pruned and harvested correctly, you can have fresh herbs year round.
 
Now as far as cost estimates are concerned, I have to admit that I don’t typically keep track of my own costs because I’ve had the same equipment for years and my green house was paid for out of pocket. But I can discuss that in a minute. So what I did is review several different sources on other people’s experience and this is what I found. 
 
-An annual cost for gardening of $320. 
-Reduction in grocery bill from $300/month to $100/month
-Annual savings on food of almost $3K per year. 
-A well maintained garden is going to yield about 1/2 pound of produce per square foot per growing season. A 600 square foot garden can yield about 300 pounds of fresh produce per year. 
 
Another myth busted. 
 
Turns out, it is cheaper to grow your own vegetables. Now back to the subject of my green house. I have about a 600 square foot earth sheltered green house that cost me about $6K to build. That includes the initial cost of excavation. Green houses of similar size cost $15K plus.
 
Okay, I know what your next comment is going to be. Raising vegetables is great but what about meat. 
 
I will be the first to admit that raising a source of meat is much more demanding and takes a greater commitment. But, if done correctly, it is still possible to save a considerable amount of money. Even considering the cost of hay, grain, fencing, barns, vet bills, and all other things necessary to raise you own meat, it is often cheaper to raise you own than to purchase from the supermarket. 
 
For the sake of comparison, broiler chickens cost about $4.40 to raise which works out to about $.97 per pound if you do your own butchering. It can cost as much as $2.20 per pound if you pay for butchering. Eggs can be produced for $0.33 per pound. Pigs can be raised for $1.69 per pound. Steers can be raised for as little as $1.64 per pound. 
 
But some people are going to say “I am not in a position to raise my own meat.  That being the case, there is another option. You can buy farm fresh meat and do your own butchering. It will literally save you 30 to 50% on the cost. I know this from personal experience from paying butcher shops for processing just because I wanted to specialty stuff that I could not produce myself. All I can say is lesson learned. From now on I will process everything my self. 
 
So, once again, it is back to the time, effort, and equipment needed to do these kinds of things yourself. And of course the commitment on your part to be a little more independent and provide for yourself instead of depending on someone else. 
 
I also want to point out that the last time I purchased an animal was farm raised elk. I ended up with 200 pounds of meat which cost me $600. That works out to $3 per pound plus the time and effort to do the work myself. At the time of this writing, the price for beef in the supermarket ranges from $5 to $15 per pound. 
 
So, one again, being sustainable is less expensive. 
 
 
Water and Sewer
 
Now let’s talk about water and sewer. 
 
Now I am going to base this on average cost in Denver. Residents pay about $55 per month and that allows for about 11,000 gallons of water. That is a total of about $660 per year. 
 
The average cost to drill a well ranges from as little as $3K up to $15K. This depends entirely on how deep you have to drill.  Based on that, and considering the average cost of residential water in Denver, it would take 22 years to recoup your investment. However, the city is not going to allow you to drill a well. If you are in a rural area, you are not going to have a choice.  
 
If you are like us, we haul in water. The only thing it costs us is the time it takes to fill the water tank on the back of the truck and the cost of gas to drive 1/2 mile to the cabin. We also produce our own purified drinking water for about two cents per gallon. 
 
Average cost to install a septic system ranges from $1,500 to $5K. That includes the cost of the tank. That said, I purchased a nice fancy composting toilet for about $800. There are almost no moving parts and that thing should last me a lifetime. 
 
Obviously in this example, it would be much easier and less expensive in a lot of ways to stay connected to the city. But in my opinion it depends on whether or not you value your freedom and whether or not it bothers you for someone else to be in control of your resources. That said, we live so far out of the way that honestly we don’t have a choice but to be creative in how we manage our resources. It just so happens that it also saves us a lot of money. 
 
And also to be fair, we spent about $300 for an on demand hot water heater, $100 on a well pump, about $50 on plumbing materials, and another $50 on electrical materials to hook up to the battery bank to run the pump. But then again, the time and effort spent makes us completely independent. 
 
Summary
 
Most of us live on far more than what we actually need. If you break things down to the basic necessities needed to live a comfortable life all you really need is shelter, a way to keep warm, basic electricity for lighting and refrigeration, food of course, a source of water, and a way to keep yourself clean. I have touched on each one of those areas and proven that living sustainably is far cheaper than traditional living. Even if the cost savings are marginal, which is maybe the case for drilling a well for your own water, the substantial savings you have in other areas cannot be ignored. 
 
The challenge in our culture is that we have a limited view of the world. We don’t even realize that there is a much difference way to live life, a better way to live life. For example, most people think when you grow up you have to buy a house on a 30 year mortgage and spend the best part of your life paying it off. The reality is that there are only a hand full of countries on the planet that offer such terms. Everyone else pays cash. 
 
And these days practically no one thinks in terms of a DIY starter house, pay cash, and add on slowly as you come up with the cash. When you think about it, if you purchase a house for $100K and pay it off over 30 years, you are actually paying $300K for the house. How does that make sense?
 
What most people want to do is is shop online for a house and say “Oh, I want that one.” Most people want to flip a switch and have the lights come on. They don’t want to worry about how much electricity they are using. Most people want the convenience of going to the super market for their food and have the ability to pick out anything they want, when they want it. 
 
The underlying reality is all these years that I’ve heard so many people talk about how expensive it is to be sustainable, or how it actually cost a lot of money to live off the grid, I have realized that the majority of people have no idea what they are talking about because they have never tried it. We are addicted to the convenience of buy now pay later and we never stop to think about how that traps us in this work-spend cycle of living which robs us of our personal freedom. 
 
Furthermore, if it is so much less expensive to be unsustainable, and so much less expensive to live connected to the grid, then why is it that the average American has $38K worth of debt not including the mortgage, 64% of Americans live paycheck to paycheck, the average amount of annual paid time off for Americans is 10 days per year. The numbers don’t match up. 
 
Additionally I have to point out there is a lot of value in living sustainably that goes well beyond your bank account. Besides having a reduced cost of living, more time off, and being debt free, you can actually produce far more security for yourself by simply managing many of your own resources. This is exactly what I have been doing for years. 
 
Yet I will be the first to admit there is some inconvenience involved. There is extra work. You can’t always have exactly what you want when you want it. But look at the benefits. More personal security, more time off, less stress, and the pleasure of being sustainable. As I have so often said as long as someone else is in control of your resources someone else is in control of your life. But it does not have to be that way. It is possible to live outside the unsustainable system that traps us into thinking we all have to be dependent on something that we cannot control. 
 
I hope that you are starting to get the picture here. There are so many different options for living sustainably. There are so many different ways to build a life that is debt free and stress free you just have to think a little different, be a little different, and if you find yourself following the crowd, run the other way. 
 
One of the underlying concepts that you must accept if you truly want to be sustainable is the simple fact that you are responsible for everything you choose to do and everything you choose not to do. Being sustainable means taking responsibility for managing some of your own resources instead of depending on someone else. I will be the first to admit that this sometimes means a little inconvenience. But in the end is our convenience really worth sacrificing our future on this planet? 
 
I closing folks, I hope you have enjoyed this episode. I hope I have convinced you that living sustainable, and even living off the grid, is actually less expensive and more rewarding. And if you enjoy the content I produce then please take the time to leave me with a review and even subscribe to the Adventures in Sustainable Living podcast as well as my companion blog Off Grid Living News.  And don’t forget if you would like to contact me with questions, comments, or suggestions about content, you can reach me at adventuresinsustainableliving@gmail.com
 
I want to close this episode with a quote from Dwight D Eisenhower. He once said that “A people that values its privileges above its principles soon looses both.”
 
Likewise, if we continue to value our convenience over the principles of sustainability, there will come a time when we loose the chance to choose. As someone once said to me, you had better choose what kind of future you want before someone chooses it for you. The little choices we make over time define our very existence. It is time to live sustainably. 
 
This is your host Patrick signing off until next week. Always remember to live sustainably because this is how we build a better future.