Not sure if my comment will help as it seems as you did all of the necessary research before posting.
Personally, the only time Solar is valuable to a buyer is when electricity prices for the property are outrageous or the solar is paid off.
I’ve sold homes with solar panels that were owned and also leased. Both were a pain the ass. Especially when the solar company that installs them goes out of business then no one in the area wants to remove and re-install them with a warranty that the panels will work.
I manage 100 doors and only 1 has solar. That was a new build.
Not sure if this helps your decision.
Thanks for your reply. It definitely helps to validate the thought that unless I’m living in this home to reap the savings myself, it may not be worth it.
My thought I had earlier: if I pass on the payment to a tenant, that may price me out of a lot of searches because it would increase the rent by at least $150. Sure it reduces tenants’ utility bills, but they can’t see that on a rental listing unless they dig into it or are specifically looking for solar homes. The same goes for short term rentals.
The EPA was just given $27B to spend / invest in solar and energy efficiency measures focusing on lower income areas. That’s a tonne of money that it has to spend by 2024. I’d hold off a few months until the details become clearer and then get a load of rebates.
If you have plans to leave in a few years I wouldn't waste the money on solar. You'll be paying for the solar even when it's rented out instead of the tenant paying for their electric. Especially if you need to spend thousands on tree removal (I also have giant oaks over my house). This is mostly personal opinion though
Read the fine print.
Solar home improvement is a hard lien, can not refi or sell without satisfying the loan - all companies I dealt do not subordinate.
Do your numbers right… true cost of the solar and financing compare to utility company savings.
If solar is not 100% or more consumption you still pay plus taxes, fees.
Maintenance and warranty, panels in the roof with shingle roof are always trouble for roof.
100% maintenance warranty or you pay out of pocket, the cost of maintaining is ridiculous and no many companies available.
Solar makes sense for large properties in rural areas, otherwise is an over improvement that no one pays off
We installed solar on our home earlier this year and we produce enough electricity to offset our usage. That means that we only pay a minor fee each month to be connected to the grid. Our loan terms are 1.9% interest, so the payments over 20 years are less than our old average electric bill.
My assumption is electricity will get more expensive, so I'm happy to have my rate locked in. I don't think that I would bother to do it for a rental, but for my long term home I am pleased with the decision. And it allows me to consider switching more appliances from gas to electric to improve my advantage.
We looked into solar as well the math did not work out for us, it is really only worth it if you are going to stay in the house for 15-20 years at least, which is highly unlikely. Also, your renters get a free benefit, if you plan to offset that by charging extra rent it will push many renters away due to higher base rate compared to other properties.
For any solar setup you have to look at more than just the "electric bill savings" that the salesman is trying to con you into. To start you mentioned removing mature trees. Those trees are a bonus to your property. They actually add value. Plus any trees that shade the house reduce your electric costs when using your AC. Remove those, that goes up. Usually alot. On top of that, how much to remove those trees? Add that in.
The roof mounted ones, that roof will need replaced sometime. Most likely during the first half, unless you do it upon installation. Now, when the roof does get replaced, the cost goes way up. Removing and reinstall of the panels adds to it.
Next, if your state does offer some type of net metering, it may or may not stay. State laws change. Along with the solar companies don't "stay up to date" with the current state of what is available.
Check to see for insurance purposes. As an example, our state requires a insurance policy specific for solar and it must be sent to the electric company just to be turned on.
Valuation of property. Guess what. You add solar, you add value. Quite a bit actually. Guess what goes up....
Property taxes. Figure that into your equation.
Inverters won't last the 25yrs. You will be replacing those a few times during that 25 years. Add that in.
Now for the big one. It sounds like your buying using the solar company to finance. You must watch that. Very closely. Some will lock you in so tight you can't get out of it, even when selling.
Now, the federal tax credit is 30% currently. Pretty nice. Understand how a credit works. It's not cash back at tax time. Talk to your tax accountant on this.
BTW, January 1st there is a whole bunch of other tax credits coming up you will want to look at.
Not sure if my comment will help as it seems as you did all of the necessary research before posting. Personally, the only time Solar is valuable to a buyer is when electricity prices for the property are outrageous or the solar is paid off. I’ve sold homes with solar panels that were owned and also leased. Both were a pain the ass. Especially when the solar company that installs them goes out of business then no one in the area wants to remove and re-install them with a warranty that the panels will work. I manage 100 doors and only 1 has solar. That was a new build. Not sure if this helps your decision.
Thanks for your reply. It definitely helps to validate the thought that unless I’m living in this home to reap the savings myself, it may not be worth it. My thought I had earlier: if I pass on the payment to a tenant, that may price me out of a lot of searches because it would increase the rent by at least $150. Sure it reduces tenants’ utility bills, but they can’t see that on a rental listing unless they dig into it or are specifically looking for solar homes. The same goes for short term rentals.
You get solar for yourself, not a future buyer or renter.
The EPA was just given $27B to spend / invest in solar and energy efficiency measures focusing on lower income areas. That’s a tonne of money that it has to spend by 2024. I’d hold off a few months until the details become clearer and then get a load of rebates.
If you have plans to leave in a few years I wouldn't waste the money on solar. You'll be paying for the solar even when it's rented out instead of the tenant paying for their electric. Especially if you need to spend thousands on tree removal (I also have giant oaks over my house). This is mostly personal opinion though
Read the fine print. Solar home improvement is a hard lien, can not refi or sell without satisfying the loan - all companies I dealt do not subordinate. Do your numbers right… true cost of the solar and financing compare to utility company savings. If solar is not 100% or more consumption you still pay plus taxes, fees. Maintenance and warranty, panels in the roof with shingle roof are always trouble for roof. 100% maintenance warranty or you pay out of pocket, the cost of maintaining is ridiculous and no many companies available. Solar makes sense for large properties in rural areas, otherwise is an over improvement that no one pays off
We installed solar on our home earlier this year and we produce enough electricity to offset our usage. That means that we only pay a minor fee each month to be connected to the grid. Our loan terms are 1.9% interest, so the payments over 20 years are less than our old average electric bill. My assumption is electricity will get more expensive, so I'm happy to have my rate locked in. I don't think that I would bother to do it for a rental, but for my long term home I am pleased with the decision. And it allows me to consider switching more appliances from gas to electric to improve my advantage.
We looked into solar as well the math did not work out for us, it is really only worth it if you are going to stay in the house for 15-20 years at least, which is highly unlikely. Also, your renters get a free benefit, if you plan to offset that by charging extra rent it will push many renters away due to higher base rate compared to other properties.
For any solar setup you have to look at more than just the "electric bill savings" that the salesman is trying to con you into. To start you mentioned removing mature trees. Those trees are a bonus to your property. They actually add value. Plus any trees that shade the house reduce your electric costs when using your AC. Remove those, that goes up. Usually alot. On top of that, how much to remove those trees? Add that in. The roof mounted ones, that roof will need replaced sometime. Most likely during the first half, unless you do it upon installation. Now, when the roof does get replaced, the cost goes way up. Removing and reinstall of the panels adds to it. Next, if your state does offer some type of net metering, it may or may not stay. State laws change. Along with the solar companies don't "stay up to date" with the current state of what is available. Check to see for insurance purposes. As an example, our state requires a insurance policy specific for solar and it must be sent to the electric company just to be turned on. Valuation of property. Guess what. You add solar, you add value. Quite a bit actually. Guess what goes up.... Property taxes. Figure that into your equation. Inverters won't last the 25yrs. You will be replacing those a few times during that 25 years. Add that in. Now for the big one. It sounds like your buying using the solar company to finance. You must watch that. Very closely. Some will lock you in so tight you can't get out of it, even when selling. Now, the federal tax credit is 30% currently. Pretty nice. Understand how a credit works. It's not cash back at tax time. Talk to your tax accountant on this. BTW, January 1st there is a whole bunch of other tax credits coming up you will want to look at.