Solar Panels and Sales Prices

Asking "What can I do to increase the sales value of my home?", may seem like an odd question in this real estate market, where many owners are facing negative equity.

However, with the increased push for Alternative Energy, and the incredible tax breaks and incentives offered to defray the initial costs, Solar Panels and Solar Energy for Residential homes has become an interesting prospect to many home owners.

The question then becomes: Are they worth it?

That is a very difficult question with many variables, and the answer comes down to a resounding "maybe".

For some people, with lower energy needs, and who plan on occupying their home for a long period of time, 10-15 years, then, Yes, they may be.

For people with higher energy needs, and no plans to stay in their home for the long term, a smarter choice would be to use their money for upgrades that would improve the energy efficiency of their home. These would include additional insulation, a new, more efficient HVAC system, and new water heaters.

In the Phoenix market, the average 5,000 watt solar panel system, which would power a normal home, costs roughly $35,000. With the tax breaks and incentives, the out of pocket cost to the consumer is usually about $13,500.

*Assuming* the average household has a monthly electric bill of $100, it's going to take a little over 11 years to hit the break even point on that expense.

11 years is a long time. But, there is the possiblity that you could sell any excess power back to the electric co, which would help offset the cost. And there's also the possiblity that energy prices will increase, which would also cause the system to pay for itself more quickly.

In the minus column, though, is the cost of the system's maintanence. And that varies depending on the system you have installed, and who sells it to you.

The other popular option is to lease the system. This carries some risks that I'm not comfortable with.

First of all, the leases are long term, 20 years in most cases. What happens in the meantime?

Who's responsible for maintanence?

What if the system is damaged in a storm? Who's insurance would cover it? Would you even be able to get it covered by your home-owner's policy? Who pays if the system has to be moved to do roof repairs?

What happens at the end of the lease? If you sell your home, is the lease transferrable to the new owners? Do you own it at the end of the lease, or will they remove it?

As tempting as Solar Energy is, especially here in Phoenix, there needs to be some serious consideration that goes into your decision whether or not to invest in a residential system.

There's a good article available at the Wall Street Journal, with some more good info


http://http//online.wsj.com/article/SB10001424052748704407804575425512927624110.html?mod=WSJ_RealEstate_LeftTopNews


If you have any questions about other things that may increase, or decrease, the value of your home, or how to best stage it, feel free to give me a call!

Erin Goldbach
Designated Broker
Vanguard Platinum Realty
602 524 0186