Tag: "solar property value"

02/24/15

  10:43:00 am, by Laurel Hamilton   , 488 words  
Categories: Energy Efficiency, Residential Solar

Energy-Efficient Homes are Hot!

Run on Sun PV installationLast I checked, people keep having babies, so the demand for homes is not going to slow down any time soon. But the fact is, times are changing. What was valuable in your home when you bought it may not be as important to prospective buyers today.

The challenges of climate change are becoming more widely accepted—a New York Times poll found that 83% of Americans now believe global warming will be a serious problem in the future. Thankfully, gains in residential energy-efficiency improvements offset  more than 70% of the growth in both the number of homes and increasing footprint sizes, according to the US Energy Information Administration (EIA). However, these gains in recent decades will need to significantly improve to make any kind of difference in terms of climate change.

But there is hope! The trend toward more efficient homes in the housing market is already getting attention. After surveying both home builders and home buyers, the National Association of Home Builders (NAHB) reported that Millenials want energy-efficient appliances and features as well as smaller homes. Smart technology such as programmable thermostats will also become the norm. Respondents said they were willing to pay 2-3% more for better energy-efficiency if they could see a return through lower electric bills. Respondents also said they’d be happy to sacrifice extra finished space for a more affordable first home.

If you are a home owner you should be tapping into the energy-efficiency trend to not only lower your utility expenses but improve the marketability and value of your home. If you follow our blog you may have seen our recent post discussing new evidence supporting the idea that solar increases property values. While installing a solar system is the granddaddy of all home energy-efficiency projects, we at Run on Sun always encourage clients to address low hanging fruit first, and make sure your energy usage is as low as possible. This will lower the size of the solar system you need to offset your usage, and thus, the overall cost of your solar investment.

Way too much of the energy we consume is wasted through poor insulation, leaky ducts, or inefficient household appliances. Fixing these problems can cut energy costs up to 25% for the typical home. One option is to ask a professional energy auditor to find exactly where your energy is going (we have some folks we can recommend). However, many energy saving tips are intuitive…installing double pane windows, better insulation, CFL or LED light bulbs, and ENERGY STAR appliances are all ones you’ve likely heard before. Others may be lesser known such as using power strips to avoid vamping power. And if you have a pool, upgrading that antiquated pool pump could save you a lot!

Once your home is up to snuff, going solar is a great investment to make your home even more desirable in the current housing market. Call Run on Sun today for a free site assessment!

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01/29/15

  05:36:00 am, by Laurel Hamilton   , 406 words  
Categories: All About Solar Power, Solar Economics, Residential Solar

Its Official...Solar Boosts Home-Owners' Property Values!

Selling into the SunMany solar stakeholders have always assumed rooftop solar systems add to the resale value of a property. Homeowners and residential solar companies frequently use this benefit as one of the many reasons to invest in solar even though until recently there had been little statistical evidence to support the assumption.

So we were thrilled to read the new study, “Selling into the Sun: Price Premium Analysis of a Multi-State Dataset of Solar Homes,” which finally quantifies the resale value of residential photovoltaic  (PV) solar systems. The study was a collaborative effort including esteemed scientists from the U.S. Department of Energy’s Lawrence Berkeley Lab, Adomatis Appraisal Services, Real Property Analytics/Texas A&M University, University of California at San Diego, San Diego State University, and Sandia National Laboratories.

The team analyzed some 22,000 home sales, of which nearly 4,000 had PV rooftop solar systems (more than double the number in previous studies), in eight states over a 12-year span including the housing market boom, bust, and recovery. This is by far the largest and broadest dataset ever analyzed on the subject.

Results prove that homebuyers are consistently willing to pay more for homes with host-owned solar systems — averaging about $4 per watt of PV installed — across various states, housing and PV markets, and home types. This amounts to a premium of about $15,000 for a typical rooftop system. Other important conclusions the team discovered are as follows:

  • PV premiums had little variability between new and existing homes.
  • The dollar per watt premium decreases incrementally as system sizes increase - with the best value at 4 kilowatts (average household PV size) or less.
  • As systems age, the PV premium depreciates sharply from $6/watt for systems less than two years old to $3/watt after about eight years.
  • PV premiums correlate to the net cost of the solar system — which take into account rebates and incentives — and appear to be independent of the PV system gross cost estimates.

As residential solar systems become more and more common, it is important to be able to value them accurately. The evidence of the added investment value shown from this study is a critical step for the growth of residential solar. And PV premiums are obviously a benefit homeowners should consider when doing their cost-benefit analysis of going solar.

Please note that this study only focused on host-owned solar, not those with leased systems. It would be interesting to see a future study including this growing portion of the PV market.

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Jim Jenal is the Founder & CEO of Run on Sun, Pasadena's premier installer and integrator of top-of-the-line solar power installations.
Run on Sun also offers solar consulting services, working with consumers, utilities, and municipalities to help them make solar power affordable and reliable.

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