Solar Electricity Property Values

[Kyle Schroeder]

Good Afternoon Everyone!

I was wondering what your guys' thoughts are about solar.  The industry is exploding here in Southern California! In your area, do you think that having solar increases, decreases, or doesn't play any part in property value?  This is under the assumption that the solar company DOES NOT put a lien on the property, which most do not any more.  Thanks for your input and can't wait to see what you all think!

Sincerely, 

Kyle Schroeder

[Dan H.]

Quote from @Kyle Schroeder:

Good Afternoon Everyone!

I was wondering what your guys' thoughts are about solar.  The industry is exploding here in Southern California! In your area, do you think that having solar increases, decreases, or doesn't play any part in property value?  This is under the assumption that the solar company DOES NOT put a lien on the property, which most do not any more.  Thanks for your input and can't wait to see what you all think!

Sincerely, 

Kyle Schroeder

 My belief is there s some variation between markets but the solar adds less that a dollar add for each dollar spent on the system but does add value.  

This implies there is no way I add solar to a flip unless there is no utility provided power.  However, if you plan on living there 5 years between the savings and the added value, it likely makes sense to add solar.

For rentals unfortunately I would not add solar (I dislike that this is the case).  Tenants undervalue the aloe of utilities and you typically cannot receive a rent that fully compensated for the cost of the solar.  In addition solar requires maintenance.  Panels need to be cleaned.   Parts can die (I have had 2 investors die).  

good luck