Is Solar a Good Investment?

With energy costs on the rise and a host of government incentives in place, it’s increasingly difficult to make the case that installing a photovoltaic solar electricity system won’t pay for itself. With warranties of 25 years and abundant proof that earlier-generation systems are still cranking out the kilowatts long after that many years, not to mention net-metering laws in place that require the local utility to purchase the excess power they generate, it’s pretty hard to make the case that solar isn’t a sound investment.

So what’s been holding back universal adoption of the technology? Surprisingly, says Brendan Neagle of Borrego Solar, it’s the unsettled habits of the Bay Area homeowner. “The main reason everybody’s not doing it,” he says, “is that most people aren’t going to stay in their homes for more than six or seven years, and the really low users sometimes do have to look out 20 years to see the payback. So people just say, ‘I’m not going to be in the home that long.’

“The value a solar energy system adds to the home is hard to quantify,” he adds. “We don’t have that many people who have bought a solar system and sold the home yet, so we don’t have good figures.”

Meanwhile, though, more and more evidence suggests that homebuyers are increasingly energy-conscious. Developers such as Lennar, Centex and Grupe Homes have been incorporating green features, including solar energy panels, into their upscale developments. In addition, some real estate agents now focus on serving clients concerned with minimizing their impact on the environment and steer them to homes that offer renewable energy systems.

The fact that state law specifically exempts the added value of solar energy systems from property tax assessment suggests that the value is substantial. According to the Appraisal Institute, energy saving measures such as solar can add $20 of home value for every $1 of yearly energy cost savings. And, according to a survey by the environmental group Environment California, 84% of homeowners said yes to the question “If you were to sell your home, do you think the solar PV system would be a selling feature?”

One caveat: a poorly installed system can be a disincentive to prospective buyers. Issues can range from substandard performance to sheer ugliness — both of which can be avoided by working with a knowledgeable pro, who can not only help you determine and meet your energy needs, but select the right products to blend with your home’s color and style. To find the expert with a track record of great installations on homes like yours, contact us.

Posted on July 3rd in Going Solar by Dean.

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One Response to “Is Solar a Good Investment?”

  1. geof fbaker Says:

    Some very intresting ideas and comments. I came across this page whilst looking for cheaper energy prices http://cheaperenergy.wordpress.com My bills haven risen by 35% this year and am now facing yet another increase by these greedy energy companies. (Thankfully I only rent so don’t have to worry about a mortgage as well.) Has anyone tried this green and cheap renewable energy? If so, be intrested to know how it worked for you.

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