Solar for possible future tenants??

Question

If we put solar on our current primary home, will it help with value? Will it really matter if we rent it out in a few months? Our bill during the winter, is lower than $200. But in the summer it is $400+, but does it really matter if we aren't the ones paying? Smart or foolish?

Nathan Gesner · Answer

If you finance the solar, it can actually be difficult to sell the home because the buyer may not want to take over the payment plan.

According to a few articles I've read, you can expect to get your money back when you sell. So installing a $25,000 solar system will increase your sales price by about the same amount. There are many variables to consider, such as size of the solar system, location of the home, etc. For example, the latest study I read said a solar system in New York will increase sales price around 5% while Riverside, CA only increased 2.5%.

Whatever you do, don't listen to "studies" performed by solar companies. They'll tickle your ears with all kinds of BS to make a sale, just like Joshua is doing in this thread. Find your own resources, study your local market, talk to actual solar owners.

JD Martin · Answer

I wouldn't include any utilities in rent if it can at all be avoided, even with solar.

Nathan Stanley · Answer

@Nathan G. Great way of putting it. Do to prices from out current provider (no pun intended) it just makes sense to switch at this time. The resale value isn't as much of a concern as i maybe made it out to be. At this time I looked at all the possibilities on how the company could screw us over. At first it seemed to good to be true. I will keep this thread updates as our time with the panels plays out. My thought process is, I don't see the price of E going down anytime, and if we can at the very least lower the majority of our bill with these panels, it's a win.

Nathan Stanley · Answer

@Seth Borman Thank you for the input!

Seth Borman · Answer

If your summer AC bills are over $400/mo I would start with looking at the building envelope and HVAC rather than just adding solar. If you do add solar later you'll need less of it to offset what you use.

Nathan Stanley · Answer

All great things to keep in mind @Chris Pasternak. Thank you for your input.

Chris Pasternak · Answer

Few things to consider:

1. If you're financing these things and you need to sell the property does the solar company allow for someone to take over payments or will you need to cut into your bottom line to sell the property?

2. When replacing or repairing the roof how does that affect the labor from the roofer with the panels in the way?

3. This is a depreciating asset that you're sticking on top of your otherwise appreciating asset.

4. Ask an appraiser what value they give to these systems.  You might be surprised at their answer.

5. How much does it cost to maintain them/replace parts?

Joshua Dickman · Answer

Inboxed you @Nathan Stanley

Nathan Stanley · Answer

We went with Infinity.

Nathan Stanley · Answer

@JD Martin

Why is that? Does it just ask for issues in the future?

Solar for possible future tenants??

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