I’m re-posting this towards the top of the blog because of a NY Times blog post about home owner associations getting in the way of people putting up solar panels.
****
Dear Solar Fred,
My husband, who’s also named Fred, says that if we get solar panels, we’re going make the house look bad and bring our home value down. I’ll bet him a night out on the town that it’s not true. Is he right, or am I right again?
Helen of Los Angeles
Get your dancing shoes on, Helen. According to the US Department of Housing and Urban Development your home’s value rises $20,000 for every $1000 in reduced yearly electricity cost. This includes getting a more efficient heating and ventilation system and redoing the insulation and all of those important things. But back to solar.
Let’s say you get a new 4.6KW solar system that costs you two $12,769 after all of the state rebates and tax credits and financing charges. Let’s further assume the system reduces your $100/month average electric bill to an average of $12/month, saving you $88.00 per month. So what are your benefits to your home’s value?
- First of all, you can brag about the buyer having a $12/month electric bill (assuming they keep the same energy usage). That should be attractive.
- Per the Department of Energy, you’ll see an increased home value of $88 x 12 = $1056/year electric savings, which equals a little more than $20,000 added to your home value! Cool! But there’s more:
- In California, by law, the State tax assessor can’t raise the value of your home based on a solar energy improvement. So that’s more money saved while you’re in the home.
- If you’ve financed financed through a home equity loan, you get to write off the loan’s mortgage interest.
As to it panels looking ugly, some say that solar panels are actually more attractive and unique and desirable because they say that the owner is environmentally conscious. That’s pretty hip these days, unless you live in a “Drill Baby Drill” kind of State. In fact, compared to a non-green home in the same neighborhood, I’ll bet that a real estate agent will tell you that a solar home will sell faster.
Check out this video about how solar increases the value of your home.
So, between the new low upfront cost options, and the rise in value of your home, you’re right, you’re hubby is wrong, and why can’t you kids just get along and get a solar quote tomorrow? What’s to lose except the above?
Solar Insights: Solar Leases, PPAs, etc »« Video: Cars, Batteries, Solar, Part 2
