Solar - Yes or No?

Question

Is anyone doing Solar installs as part of their projects? I am familiar with the rebates, tax incentives, and approximate energy offsets to expect, but I am curious if anyone has found it to be an incentive for buyers? Do you recoup your investment if you sell the property?

Specific to Austin Texas, Does anyone have any experience with any of the local install companies here? Ive noticed that in order to qualify for rebates, you have to use an approved installer.

Lon

Lynn Currie · Answer

@Lon Breitenbach @Keith Bloemendaal

I'm not doing them, but have a buddy who is. In his experience, there is a fairly small group of folks wiling to pay the extra cost for solar and rain water collection and he'll only do it as a custom project.

He and I talked about doing a small subdivision out it Dripping Springs that had all homes wired and ready for all of the installs  but as of yet, the numbers just don't seem to work to do the installs in a spec environment.

Lon Breitenbach · Answer

Thanks Lynn

That was my experience with rainwater when building out in Wimberley. The numbers on rainwater are even slower to payback than solar. People seem to like the idea, but when it comes time to write the check, it doesn't seem so vital

Account Closed · Answer

We just evaluated solar (electric, not hot water) for a custom home project and it was nixed... I was delighted as the budget didn't allow for solar as well as geothermal (and I favor the latter).  Solar isn't all it's cracked-up to be in my opinion, and I believe that there are much better ways to spend those dollars.  Keep in mind that the current incentives are subsidized, so while they may benefit the purchaser, that subsidy trickles down and gets passed back along to the masses.

I strongly suggest that you research this heavily before proceeding and understand what a correct installation equates to and if the project can accommodate such... otherwise, you may only realize a portion of the system's ability.

As for recouping the investment, this too should be researched... it's my understanding that the ROI takes a very long time to realize... and if I were buying a property with solar, and the price was increased because of it, I'd want to see documentation showing reduced kilowatt consumption and that usage translated into dollars.  Not necessarily an easy task unless you have two-like kind properties, virtually next to each other, one with solar and one without with similar occupancies.

Matt Bowyer · Answer

I think solar can make sense in certain situations. I'm evaluating a proposal now for a property I use for short terms rentals, where utilities are included. I plan to keep the property for a long time, and the payback on this particular system is about 7 years. Not an amazing investment, but if renewable energy aligns with your values, I think you can justify it.

Russell Brazil · Answer

@Lon Breitenbach Contact a knowledgeable agent in your area to see if they have been a help or a hindrance to the sales process. Here in DC they have been a hindrance to the sales process, and I recently read an article that state the same in parts of California. The issue is exacerbated with the leased panels over the purchased ones as well.

Anthony Romero · Answer

@Mark Freeman,

Can I ask you a question? Maybe you know this. If an Investor buys a solar system for a property flip, do they get the 30% Fed Tax Credit?

I have mixed results. My answer is yes they do as does the PPA or Lease companies do. But I could be wrong.

Mark Freeman · Answer

In my area solar will only return 40% - 55% of upfront costs on an appraisal.  Therefore, just like many upgrades the return on investment doesn't justify the cost.

Frank B. · Answer

Can't speak to the specifics of your area. The energy offsets will depend on the electric rate(s) that you take service under and if net metering is offered by your utility.

I work in the energy industry, and I can tell you, in general, that solar isn't really worth it quite yet. With all of the subsidies, rebates, tax credits, etc, the technology is improving to the point where it is almost a breakeven in some ares. This will drive production up, and in turn will decrease future installation costs (which is the goal of the subsidies).

This will probably cause either a reduction of installed cost or an increase in efficiency (or both) over the next 5-10 years, which should trickle down to the consumer level.

So if you do a lease, I would recommend doing something short-term so that in 5-10 years you can trade in your then-obsolete technology for something that could save you some real money.

Can't comment on how it would change people's willingness to pay for your property.

Keith Bloemendaal · Answer

I am interested as well.

Solar - Yes or No?

Most Popular Reply