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All Forum Posts by: Steve K.

Steve K. has started 29 posts and replied 2764 times.

Post: California to make "Solar "mandatory for new Homes!!!!!!

Steve K.#2 Real Estate Success Stories ContributorPosted
  • Realtor
  • Boulder, CO
  • Posts 2,867
  • Votes 5,113
Originally posted by @David K.:

Government is too entrenched in California business. 

What if Joe home buyer does not want a solar panel - due to the extra maintainance costs or for other reasons?

I purchased high effeciency gas units only to find they are FAR more expensive to maintain than regular ones.  I paid MORE for the high efficiency ones than regular gas units which were not that much less efficient. 

Let the market decide - it never works well when government gets into business. 

I agree government should get out of the energy business but we might differ on which forms of energy they should stop supporting first. I'd like to see the subsidies for coal, nuclear, and gas go away first. Solar and wind are the two forms of energy that have potential to exist without government subsidies.  

Post: California to make "Solar "mandatory for new Homes!!!!!!

Steve K.#2 Real Estate Success Stories ContributorPosted
  • Realtor
  • Boulder, CO
  • Posts 2,867
  • Votes 5,113
Originally posted by @Seth Borman:

 Seth good point about remodels, I had forgotten about that thanks for bringing that back to my attention. I definitely see your point. Any addition over 500ft2 in my area triggers the dreaded "site plan review" process aka a ton more hoops to jump through. I want to add a bedroom on my primary and the list of things they want me to do would add about $10k to the project (and I already have solar, now they want me to add sprinklers but I have vaulted ceilings so that's not practical, they don't care) so I feel your pain on regulations in general.

Of course it causes a knee jerk reaction whenever home prices are increased in a region that has a major housing crisis but I think the thought process being applied here is more long term (and I frame it this way because as I have said I have mixed feelings about the mandate, so I can only present what I think the policy makers intentions are). The way proponents of the mandate frame it is as it relates to home pricing is that initial costs will increase but total cost of home ownership actually decreases due to reduced monthly operating expenses. So it's basically forcing people to become investors in a power plant on their roof as opposed to being locked into buying electricity from the utility with no return on their end, ever. Homes with solar save their occupants money whereas homes without solar keep a debt to the utility on the books each month indefinitely. Reduced operating expenses also theoretically reduces the rate of mortgage default and makes home ownership MORE affordable in the grand scheme because the electric bill is eliminated, which in CA as you know can be a significant monthly expense. At least that's what I assume the policy makers would say based on what I've read. I'm still learning about how this experiment is expected to work.

Let's face it, a large part of homelessness is due to people making poor personal decisions (in addition to a very long list of other factors beyond people's control of course to be fair, but still, many homeless people made bad life decisions). A solar mandate forces people to save money and removes the option for them to divert money they should use for their bills to buy luxury items. Many of us have tenants with a fancy flat screen TV and a blinged-out BMW who are behind several months on their electric bills. They wouldn't be behind on their bills if they didn't have those bills, because the electricity they use was provided by the solar panels on the roof. That's the idea anyway, and it wasn't my idea but I'm trying to present what I believe is the intention behind the mandate, take it or leave it.

I think this mandate is looked at as a drastic measure even among the most ardent supporters of solar such as yours truly. Perhaps drastic measures are needed as we enter the new energy economy. It's not going to be easy to adjust as we move forward, big changes are coming to the way we produce and consume energy.  I plan to profit from the changes, crucify me for it if you like.  

@Brian Ploszay

@Rhonda Wilson

@Karen Margrave

@Andrew Smith

@Jay Hinrichs

Post: California to make "Solar "mandatory for new Homes!!!!!!

Steve K.#2 Real Estate Success Stories ContributorPosted
  • Realtor
  • Boulder, CO
  • Posts 2,867
  • Votes 5,113
Originally posted by @Adam Blachnio:
Originally posted by @Steve K.:
Originally posted by @Adam Blachnio:

so the panels and batteries as a whole should have some kind of government incentive in tax deduction or similar ✔️

 There has been a 30% tax credit on solar equipment since 2005. Batteries are no longer used 99% of the time. 

So how the exces of energy can be stored for more house-demand-time?

 Net metering: meter reverses during the day when surplus energy is being produced, credits those kilowatt hours to the account for later use when sun isn't shining. 

Post: California to make "Solar "mandatory for new Homes!!!!!!

Steve K.#2 Real Estate Success Stories ContributorPosted
  • Realtor
  • Boulder, CO
  • Posts 2,867
  • Votes 5,113
Originally posted by @Adam Blachnio:

so the panels and batteries as a whole should have some kind of government incentive in tax deduction or similar ✔️

 There has been a 30% tax credit on solar equipment since 2005. Batteries are no longer used 99% of the time. 

Post: California to make "Solar "mandatory for new Homes!!!!!!

Steve K.#2 Real Estate Success Stories ContributorPosted
  • Realtor
  • Boulder, CO
  • Posts 2,867
  • Votes 5,113
Originally posted by @Andrew Smith:
Originally posted by @Steve K.:

Care to clarify, you’re not a fan of SunPower? They’re pricey but sweet, some people just gotta have the top of the line gear and don’t mind paying for it. I’ve got Silfabs on my roof, North American made baby!

 Plenty are North American made baby! My favourite for bang-for-the-buck are Hanwa, but also really like LG and Panasonic. No doubt Sunpower are a quality panel. Their problem is that all their eggs are in that basket and are much more sensitive to conditions in solar. That led to them hitting financial trouble and are now owned, ironically, by French oil company Total.

Hanwa, LG, Panasonic are all huge conglomerates. If LG have issues in one area it does not threaten the company as a whole to anything like the same degree as Sunpower.

The American made thing is interesting. Most people consider BMW/Honda/Toyota to be non-American companies yet they employ many thousands of Americans and contribute to the US economy more than say Ford assembling South of the Border. Which is really American made. Hanwa have set up to produce 1.6 GW of panels annually in Georgia!!

I don't like the price of Sunpower either but definitely recognize they're a great panel.

I’m enjoying my Silfabs, paid off in less than a year (tagged 21 onto an order for 8 MW so less than wholesale pricing on the mods, spliced together some remnant racking, installed them with some solar bros on a Saturday and had our master wire them up for me to return a favor so total out of pocket was under $4k before ITC for a 6kW system). My last house had Evergreen panels: truly American owned/ American made. Loved that string ribbon technology, super tight power tolerance for the time and zero waste manufacturing the cells. I guess that was 70’s technology essentially, only 12% efficient but the fuel source was free so efficiency didn’t bother me one bit. It’s funny when folks get hung up on efficiancy withe something that doesn’t require fuel. My truck is only 20% efficient and I have to keep putting gas in it! But I still drive it. Simpler times back then, when American made meant 100% American and Fords weren’t made in Mexico. 

Post: California to make "Solar "mandatory for new Homes!!!!!!

Steve K.#2 Real Estate Success Stories ContributorPosted
  • Realtor
  • Boulder, CO
  • Posts 2,867
  • Votes 5,113

Care to clarify, you’re not a fan of SunPower? They’re pricey but sweet, some people just gotta have the top of the line gear and don’t mind paying for it. I’ve got Silfabs on my roof, North American made baby!

Post: California to make "Solar "mandatory for new Homes!!!!!!

Steve K.#2 Real Estate Success Stories ContributorPosted
  • Realtor
  • Boulder, CO
  • Posts 2,867
  • Votes 5,113
Originally posted by @Karen Margrave:

It's insane! CA already has the highest homeless populationin the nation.  Part of the reason is the out of control environmental regulations that drive the cost of every material you buy for building a home or apartment up. We have winter and summer grades of fuel. We have forests burning due to poor land managment caused by regulations that stop clearing out brush and thinning trees. Permits and fees for building are constantly being increased. Now they're allowing PG&E to pass on the costs of lawsuits to customers rather than shareholders. Now drinking water is going to be taxed. So please, someone tell me how it makes any sense in one of the most expensive states in the nation for housing to add more costs. Batteries for solar are not large enough to make sense. Many of the homeowners that had homes burn in the fires didn't have enough insurance to rebuild, let alone add on an addition $20,000 or more to the costs. The utility companies won't buy excess if you can produce it. So how can anyone think it's a good idea?  

The utility does buy the excess

Very few systems use batteries anymore (net metering is used instead)

Average system cost is under $10k, or $40/month if rolled in with the mortgage, while energy savings are $80/mo. avg.= $40/mo. avg. net benefit 

CA Building Industry Association supported the mandate

The mandate will effect about 88,000 new homes annually, or less than 1% of the total housing stock, so will have minimal effect on the housing crisis. 

Solar adds initial expense but reduces operating costs, forcing people to become investors and save money instead of wasting it each month paying an electric bill unnecessarily

Post: Real Estate Agents - Previewing Properties - What's the Point?

Steve K.#2 Real Estate Success Stories ContributorPosted
  • Realtor
  • Boulder, CO
  • Posts 2,867
  • Votes 5,113

I'm taking my 168 hours of classes to get my license right now and I just sat through an hour presentation online (required) listening to this exact strategy. I was instructed to try to preview and if the FSBO declines, just swing by the house once a week unannounced and drop off printed infographics such as "How to stage your property", "The benefits of a home warranty", and "What to look for in a real estate agent" in order to build the relationship over time until the FSBO begs me to list the property for them. I probably won't be trying any of that, but I can confirm it's the way it's currently being taught. The teacher explained that the best way for new agents to get listings was from FSBO's or expireds. Guess that's why so many new agents wash out.

Good luck selling your property! Can I preview it? (Just kidding lol)

Post: California to make "Solar "mandatory for new Homes!!!!!!

Steve K.#2 Real Estate Success Stories ContributorPosted
  • Realtor
  • Boulder, CO
  • Posts 2,867
  • Votes 5,113
Originally posted by @Curtis Mears:

@Steve K.

if they make economic sense, why don't people install without the mandate? I know people who installed only because government paid a large portion of the bill. If not, they would not be feasiblefor them. also, now that they are mandated. the price will increase. kind of how when buying crayons for school kids, the smaller mandated packs are more expensive than the larger packs. it is inevitable.

Curtis,  People do install solar without the mandate. Solar has a wide adoption across the US, and doubling every few years. 19% of California's electricity came from solar in 2018, and there are about 1 Million residential rooftop solar installations there. Utility scale solar provides enough electricity for an additional 9M homes. So I'd say people are installing them without the mandate. The CA Building Industry Association (CBIA) even supported the mandate because according to them, builders are putting solar on almost every new home in CA anyway. 

So the question becomes, "If it's already so popular, why need a mandate?" and now that's a good question. I can't speak for the policy makers, but it's related to California's goal of being carbon free by 2045. I didn't follow the whole process as the mandate became law over the last 10 years, so I can't explain to you exactly how it came about, but I'm sure it was a shining example of government working in it's most wise and efficient form to refine the law into a perfect piece of legislation (sarcasm). As pro-solar as I am I also see how the "optics" of this aren't great. But I'm not against the mandate per-se as it will boost the industry I work in even further, and I believe it benefits everyone by pushing us to adopt more cost effective (long term) sources of energy. 

The "large portion from the government" that you mentioned is the 30% federal tax credit. It's true solar wouldn't be where it is today without this tax credit (so thank you G.W. Bush who signed it onto law in 2005, and thank you current president for extending it through 2024). However, solar isn't alone as a subsidized energy source. Every single form of energy receives direct and indirect support from the government. Many trillions go to nuclear, coal, gas, hydro, and R&D for technologies we haven't yet heard of. Without government subsidies for energy our economy would literally collapse overnight. 

As of now wind and solar are the only forms of energy we know of that have the potential to be cost effective without government support. In 2020 the solar tax credit begins going away, dropping a few percentage points each year and phasing out entirely by 2024. By then we won't need it, as we expect solar to have completely undercut legacy fuels in price. Contrary to your esteemed crayon theory, solar panel prices have not gone up, but down 75% since 2009. The mandate (although minor in the grand scheme of things because it only applies to 80,000 homes a year or far less than 1% of CA housing stock) will contribute to pushing prices down further (efficiencies of scale, competition, mass production). 

On one level energy is extremely complicated, but on the most basic level it comes down to fossil fuels being a finite resource that becomes more rare and more expensive to extract over time, while sunshine and wind are free and abundant. Brace yourself for a lot more solar and wind coming soon to a place near you, as most all new energy capacity in the near future will be from renewables. 

This Forbes article explains how quickly renewables are taking over:

https://www.forbes.com/sites/dominicdudley/2018/01...

Post: California to make "Solar "mandatory for new Homes!!!!!!

Steve K.#2 Real Estate Success Stories ContributorPosted
  • Realtor
  • Boulder, CO
  • Posts 2,867
  • Votes 5,113
Originally posted by @Anthony Hunter:

Northern California here. Had solar installed last month, enough to conservatively offset 126% of estimated usage. After a 30% tax credit and financing (3.99%) we were able to get a 25 year Sunpower 7.1kw system installed with a monthly payment less than our average electric bill($196 pmt vs $197 non-solar)

With NEM we'll be able to bank the surplus and use it throughout the year, which will especially be important for the higher rate during time of use (TOU) of 3-8 pm that PG&E charges. Summer months will offset winter months, assuming it's during the same 3-8 window. Since it's a yearly true up bill it'll all be reconciled and balanced out every January in our case. Having your utility company act as your battery for surplus is huge. And speaking of the company, PG&E will undoubtedly continue 5%+ YoY rate increases, which will be protected by a system producing over 100% of usage.

Our breakeven point is almost exactly 6 years, after which the system will generate for another 18 years under the 25 year comprehensive warranty.

Technically the system will cash flow from day one, all with no money down. I had to run the numbers several times to believe it myself, because just a few years ago it was a very different story.

So yeah, not a big deal that by 2020 it'll be required, at least for California which is perhaps the best state for residential solar.

 Not bad numbers especially since you bought the Rolls Royce of solar panels, going with SunPower. Simply the best in my opinion wise choice.