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Hello All,
I'm just curious. Will getting solar add any value, marketing and/or rental value to your SFH rental? Is it worth doing?
I can see it may add some marketing value but that's it. Curious if other have done this if they have a SFH rental.
If you ask a solar salesperson, they'll tell you it adds all kinds of value, but I've never heard of anyone getting any value out at the sale of the home. In my market, it makes them harder to sell, at best. If your tenants pay utilities, I'm not sure why you'd take on that debt.
I don't sell solar unit's, I sell Real Estate. And what I have seen and experienced, 1st and 2nd hand, is when solar is PROPERLY utilized as a feature, it's lends a ROI of about 150% on just the unit pricing/value increase, which is saying 0 calculus of impact on utility offset's.
No, it's not a Blue-Collar real estate thing, it's for the property types that garner and most likely have a buyer/tenant with a Tesla.
And all this about liens and so on, I have no idea what all that is about. Adding solar to a $800k+ home is cheap, dirt cheap in the big picture of things. Yes, on a $200k property I bet the cost to add solar is a big price tag in comparison to property price, but why on earth would you put it on that property?
Again, as I have said previously, it's about amenity and property MATCH.
If you think nobody value's a solar system, that it's a waste of $, that's just a statement of what income/wealth class your working in, that's the raw truth of it. There is a market for it, just like there is a market for luxury rentals, you may not be familiar with it but it exists.
I won't argue, you make some good points. I doubt it has to do with the "class" of property, I work in a market that has the cheapest electricity in the country, so that likely has a direct effect on the resale value of those systems.
My experience with it, it seems to have all but nothing to do with electric bill off-set, seriously. Seems to be more a status thing. The only utilitarian place I experience any caring is connecting with EV charger, people love that, buyers and tenants. And again, I think it's more status symbol or some form of ego-stoke, everyone I've asked on #'s of savings etc., not a 1 has any idea, but they have all kinds of answers about how it looks, how cool, modern etc. it all is.
Are you suggesting to your clients to install an EV charger but no solar? Doesn’t that defeat the point of getting an electric vehicle if you’re charging it from your coal and/or gas powered house?
I’m not in your market, but I’d be happy to chat sometime and share with you my experience with solar and how it indeed can add value. I’ve been around the industry since a child and also spent 5 years in mortgages, so my question is often.. you’re telling your clients to OWN their home vs renting. Why not OWN your power and protect your clients against rising utility rates? As the demand for electricity continues to rise, so will utility rates…
Also, does every client want a pool? No. Similarly does everyone want solar? No. But it DOES save you money compared to the utility in the 3 states I operate in and it DOES indeed add value. Im happy to show you some data to change your mind :)
No, I was inferring, and now out-right stating and I DO state/do, the very opposite of URGE when/if doing solar or have solar, one really should have an EV charger also.
Solar without EV charger is like a burger without the bacon.
And as I said, in my experience it's the concept of solar that people are all about, and in my opinion the status/ego of it, not the actual metrics of the numbers because everyone and I do mean LITERALLY every one of these consumers I have asked, not a 1 could tell me what those #'s were, not-a-1. But, they all said it was saving em a "bunch of $", lol. Not sure how they know that if have 0-clue of the #'s.
But hey, like I said, I don't care about any of that. I care on what tenant/buyer it get's me and the ROI for the amenity, time to list saved, competitive advantage, my care is in the monetization side of things and NOT in schlepping solar to people.
If it were an alligator pit the market were happy to pay similar ROI on I'd be doing alligator pit's.
Sorry I think I misread your message.. I thought I was the lone soldier on here defending solar haha. I would be happy to chat sometime and show you some numbers how it does truly make sense, at least in my market, to go solar. You can get instant monthly savings using a PPA or long term savings by paying cash/loan.
The payback/ROI is about 7-10 years in Maryland and about 3-5 in DC with all the incentives. Once you pay it off, you're locked in for free energy for the remainder of the solar panels useful life. Our panels are warrantied and guaranteed to last at least 25 (altho they're actually designed and engineered to last about 40).
Battery technology (i.e. the SunPower SunVault or Tesla Powerwall) is where the bigger 'cost' is comparatively. Solar is where you get all the return on your investment. Batteries on the other hand are indeed still a luxury to have backup solar power during a blackout, which frankly doesn't happen often in my area. However, for states with bigger electric grid issues, I would definitely be considering a battery at some point if you want to have your own energy security/independence.
Maybe you should share with everyone what $ your making selling these systems, and your sales volume. If they don't get it then, they never will. Because you and I know your making crazy $-BANK-$ and that's not possible unless consumer wanted it, in mass, right.
I think it's just many are in asset-class / tenant-class who has no financial capacity in what still is categorized a "luxury" item. Before that term rub's you wrong, it's categorized in that manner just like a pool or hot-tub because it's a non-necessary item in most cases, as most properties are grid connected.
BUT.... just wait until the U.S. has there 1st year of load-shedding, that whole categorization will change in a flash. In South Africa, everyone who can get solar is getting or has solar, because there is load-shedding.
And yes, the U.S. WILL with 100% certainty have load-shedding unless the gov. takes rapid action. It's simple math, ALL electric producers in U.S. are SCREAMING that it's now verging on emergency status that they be allowed to construct MANY more production plant's. IMMEDIATLY. And for those not in the know, on average just the permitting process for such takes on average 7years. A new production plant can easily take 20yrs from date of decision and funding to coming online. And in U.S. we have coal plant's set to shut-down in coming years because of inability to replace wearing out major components because there no longer permitted. So removing power plant's via standing regulations.
I give it 1-2 more hot summers at this pace before load-shedding starts coming into the mix of things.
Any who don't believe me, do your research, look up the white papers by xcel energy. They've been sounding the alarm for years warning of what's coming.
I make less money than most realtors do on their sales commissions that’s for sure, and I’m regularly saving customers $10,000-100,000 over 25-40 years. As you said yourself.. price is what you pay, value is what you get. Plus, I feel great selling something that also has the added benefit of helping the environment.
for $200k owner occupied homes, I might recommend a PPA - $0 down, simply lowering their utility rate compared to the local electric company, saving them money month 1 without ever having to take out a loan.
And yes exactly as we keep putting strain on the grid the more reason to own your power supply. Thanks for your input here I appreciate your perspective in the luxury market as we do have a lot of luxury clientele who buy our panels for the long term value and tax credits (perhaps some also do it for the status symbol and/or to charge their EV)
