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Solar Powered Homes - ROI and Resale Value

Anyone have some feedback on the real ROI for a home with Solar Panels, and the selling points for this type of home to a potential buyer. I have a listing that is coming up that has solar panels, with battery system installed. I have not had a straight answer from appraisers or other associates in the biz, as to the value of this system. I believe it is apx 3 to 4 yrs old. The seller is not able to re-sell back to a grid, as they are not in an area to connect to power. Thus the solar system.

Posted by Karl Kruger on 04/07/2007 02:52 PM

Comments (3)

3 Comments on Solar Powered Homes - ROI and Resale Value

APR

2007

I'd say the value would be directly proportional to the number of sunny days in the area!

I don't have specific ROI numbers, but here's my solar experiences with buyers.

There are a good number of homes with at least partial solar power over here in Tucson, and a couple out in the sticks that are only solar. If it were me, I'd call out a company that installs that sort of system to get their opinion. A buyer is going to want to know that it works and works efficiently, that they can power the house and lights through the night if needed after a week of clouds, and still be able to run their appliances and computers and whatnot. Basically, if someone buys that house that has been living off regular power, they need to know if their lifestyle will have to be altered, if the power will run out before the day is done. Especially if it is in a remote area.

Around here, solar is touted as environmentally friendly, and a solar system company is another good resource for that. Buyers seem to like the eco-friendly angle, until they get out to the house and see huge ugly panels in the yard. Attractive, non-intrusive solar panels and power though... could be sweet! Powered by nature, I can see the flyers already!

Kelley, Thank you for your insight. This is not a common feature for homes in this area, but it is farily rural so I would have expected otherwise. I have yet to contact solar companies, only because I would assume that their opinions would be slightly steering in one direction. But, I will give a couple a try. I may even go back to the installer of the system at this house to get their opinion. I think the usual drawback to a solar system, as far as resale value, might be skued because of other factors....the house that runs on solar only, probably also has to rely on well and septic. Some of these features are not attactive to the city folks moving to the country.

On a sidenote, made a huge profit on three solar power company stocks I invested in 6 months ago. I do believe there are a lot more of these installs coming our way in the near future. Demand for the materials necessary to mfg these panels is tough, but soon there is sopposed to be new materials/technology available that will improve cost and availability.

I also heard recently that there are entire subdivisions that are being required to have solar panels installed, as a prerequisite to the builder/developer....in San Jose area.

Yup: well, septic, and don't forget refilling the propane tank! It's a whole lifestyle to sell: rural, independent, self-reliant, etcetera. It could be an artist retreat, free from corporate culture. Start your own alpaca farm, or something. But I digress.

If you know the original system installer, I'd probably ask the Seller to call them out, ask for a system check-up, to get an opinion of the system. They usually have sales brochures and other data at the sales location for the systems as well, which is nice to have around to answer potential buyer questions.

Good luck!

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