Study: Rooftop Solar Improves Home Resale Values

by Silvio Marcacci.

Rooftop solar can add curb appeal and resale value to homes.
Rooftop solar can add curb appeal and resale value to homes and when connected to the grid, is then termed ‘Distributed Energy’ or simply, ‘Distributed solar’ which adds electrical generation capacity to the grid and stabilizes local grid systems. Rooftop solar PV installers image via Shutterstock.

Installing rooftop solar panels boosts a home’s resiliency and green credentials while cutting utility bills, but does it also increase a home’s resale value?

The answer according to Exploring California PV Home Premiums, a new Lawrence Berkeley National Laboratory (LBNL) study, is a resounding yes – at least in California.

Data analyzed from 2000-2009 highlights a clear trend of solar homes selling for a higher premium than non-solar homes statewide, meaning going green also creates economic opportunity and empowers homeowners to make some greenbacks.

Rooftop Solar Values Undefined And Underestimated

Fast on the heels of America’s record-setting third quarter for new residential solar installations, the LBNL study fills a major gap in adequately valuing home solar systems.

While several previous studies (including a 2011 LBNL report) recognized solar homes command higher prices, many appraisers assign no additional value to a solar PV system. And, those who do assign value have little data in terms of comparable home sales to determine the exact value to assign to the home. Considering sales of green goods have outpaced the overall economy and clean energy investments have been shown to significantly boost commercial building values, it’s a timely quandary.

LNBL decided to solve this problem by examining sales data for 1,894 solar homes and 70,425 comparable non-solar homes sold across California between 2000-2009. Analysts took three factors into consideration: regression analysis of actual sale prices over time, sensitivities of estimated solar premiums to the system age and size, and comparison of actual solar premiums paid compared to predictions made through estimated system cost and income.

$5,900 Resale Value Increase Per Installed Kilowatt

Their results are as clear as the sun on a cloudless day. LBNL’s report estimated that each 1-kilowatt (kW) increase in rooftop solar system size adds $5,911 to a home’s resale value. “Our analysis offers clear support that a premium exists in the marketplace, thus PV systems have value and their contribution to home values must be assessed,” states the report.

California solar home resale premiums
California solar home resale premiums chart via Lawrence Berkeley National Laboratory.

However, consumer misperceptions about a rooftop solar array’s age diminishing its output and value often hang over solar homes. The report found that for each year of a system’s age, solar premiums decline 9% – falling much faster than either system income (which decreases .5% annually), system cost (which increases 5% annually), or system output (which decreases around 1% annually).

This means consumers look at solar panels the same way they do most consumer electronics – as the item gets older, it gets less desirable, even if it work just as well as a newer model. Interestingly, the LBNL findings track with data from PV Value, a spreadsheet tool developed by Sandia National Laboratories to determine the value of solar PV systems through system income.

What About Other States Or Third-Party Systems?

The LBNL report is great news for homeowners in California, but it’s not surprising considering the state is the epicenter of the US clean tech market while leading America in distributed solar generation. What about the rest of the country, or the growing number of homes that install solar through leasing programs or third-party companies?

Not to worry – the report’s authors plan to cover those questions starting with the next edition of their research. Subsequent studies will examine solar home premiums from markets beyond California, the change in premium through the housing market crash and recovery, sale price differences between customer-owned and third-party owned solar arrays, and the impact system age and retail electricity rates have on solar home premiums.

Add it all up, and America’s sizzling solar industry could get even hotter as homeowners look past environmental benefits to see the pure investment opportunities rooftop PV systems generate.

This article, Study Shows Rooftop Solar Adds Thousands To Home Resale Values, is syndicated from Clean Technica and is posted here with permission.

The Solar Leasing Explosion In California [Chart]

by Zachary Shahan.

California solar leasing
New California Solar Leasing Contracts vs. New California Solar Panel Purchases. Credit: Climate Policy Initiative

Originally published on Cost of Solar.

The solar leasing trend has certainly taken off. Over 75% of new solar homeowners in California are now leasing solar. This finding comes from a Climate Policy Initiative report on California solar policy and consumerism that includes a comparison of California solar leasing and California solar purchases.

The report comes to a number of interesting findings, but the finding on the shift from solar ownership to solar leasing is probably the most interesting. In 2007, only 10% of California homeowners were going solar through a solar panel leasing arrangement. The shift to over 75% solar leasing in 2012 is clearly significant.

As I just noted the other day, there are some huge reasons why California solar leasing (and solar leasing in other states where it’s available) has taken off — primarily, people love $0 down payments and financial savings from Day 1.

People are going solar for financial reasons more than anything else. Many people could probably save much more money down the road by purchasing solar panels (or, at least, their families could… if they don’t outlive the long lifespan of increasingly efficient solar panels). But waiting several years to get money back on an investment is not the route many people want to take. Who knows what will happen tomorrow?

Also, it’s worth noting that solar leasing companies don’t give you a bad deal. Solar leasing companies can actually take advantage of some federal solar panel incentives that normal homeowners can’t take advantage of. From Day 1, or very close to Day 1, solar leasing customers should benefit from savings on their electricity bills that outweigh their monthly solar leasing payments. The leasing companies also take care of maintenance, doing the paperwork to collect on your solar tax credits and rebates, and other such issues.

So, at the very least, solar leasing companies are giving us a much better deal than utility companies offer. What is there to complain about?

California Solar Leasing Booming Due to Solar Incentive Changes

The solar market is anything but stagnant. Due to solar energy’s many advantages (and lack of significant disadvantages), the market is growing fast, but the avenues along which it grows vary a lot from place to place… largely based on policies in those places.

California’s strong solar power growth has actually taken place “in the face of declining financial incentives for solar installations at the state level through the California Solar Initiative,” as the Climate Policy Initiative (CPI) notes. The California Solar Initiative (CSI) did a tremendous job stimulating solar power growth while solar panels cost a lot. However, a rapid drop in solar panel costs combined with remaining federal solar incentives has made solar even more competitive today without support from CSI than it was a few years ago with such support. And California solar leasing options have made the attractiveness of going solar without CSI support even more attractive for many people… well, over 75% of solar customers, according to the CPI study.

In actuality, right now might be one of the best times in the coming decade or so to go solar in California. Federal solar incentives are currently scheduled to expire in 2016. Solar panel prices recently fell through the floor due to economies of scale in manufacturing, oversupply of solar panels due to extreme ramp-up of solar panel production in China and other countries, and the cut-throat competitiveness that resulted. After the dramatic drop in solar panel prices mentioned above, supply has started to better match demand and prices have started to rise a little in 2013. Solar panel prices could fall again and go a little below where they were at the beginning of 2013, or they could rise a bit more — the future is uncertain. With costs near a record low, incentives still available, and solar leasing companies offering amazing 20-year leasing contracts, now is an excellent time to look into going solar.

But, as noted above, policies influence how people go solar, and how it would be best for you to go solar. Solar leasing is only legal in about a dozen states. And various states and municipalities have other solar policies that make other ways of going solar more attractive. For example, some states have “Community Solar Garden” legislation that makes community purchasing of solar power possible. Some municipalities have “PACE” legislation that allows you to go solar using a loan that you pay back through higher property tax payments. The practical result is very similar to that of solar leasing — you enjoy monthly electricity bill savings that outweigh your property tax increase, and you get to skip the high initial price of purchasing a solar panel system.

The solar leasing trend is certainly a hot one, as you can see from the California solar leasing and solar ownership study referenced above. However, there’s a lot of variation in solar policies across the US, and the best solar option for your neighbor may not even be the best solar option for you. The only thing that is more or less constant is that going solar is a smart financial decision for people all across the country, saving each of them tens of thousands of dollars. You can find out the best solar option for yourself by completing our very short form. We can help you to find what solar incentives and policies exist in your area, and we can help you examine the advantages of solar leasing versus solar panel ownership. Don’t delay and lose out on the tremendous solar options available today!

Join the US solar power rooftop revolution!

California solar leasing savings
California Solar Leasing Savings

This article, Solar Leasing Explosion In California (Chart), is syndicated from Clean Technica and is posted here with permission.

About the Author

Zachary ShahanZachary Shahan is the director of CleanTechnica, the most popular cleantech-focused website in the world, and Planetsave, a world-leading green and science news site. He has been covering green news of various sorts since 2008, and he has been especially focused on solar energy, electric vehicles, and wind energy for the past four years or so. Aside from his work on CleanTechnica and Planetsave, he’s the Network Manager for their parent organization – Important Media – and he’s the Owner/Founder of Solar Love, EV Obsession, and Bikocity. To connect with Zach on some of your favorite social networks, go to ZacharyShahan.com and click on the relevant buttons.

California’s Top Solar Cities are Median-Income Cities

Originally published on Cost of Solar by Zachary Shahan

Sunible, a company started by solar market data resource PV Solar Report, has a report on which California cities are installing the most solar power.

Completely in line with the what I wrote yesterday when discussing California solar leasing, and the day before when discussing the $34,260 or so in savings that an average California solar homeowner can enjoy (over 20 years), the report found that it’s not just the rich who are going solar anymore. Many households with average incomes are also now going solar, especially through solar leasing.

California's top solar cities are inland, and with median income.
California’s top solar cities are inland, and with median income.

The cost of solar is so much lower than it was even 2 or 3 years ago that many people have realized it’s not great for their pocketbook if they switch to solar power. $0 down or close to $0 solar leases also don’t hurt.

Many of the leading Solar Cities in California are median-income communities like Fresno, Clovis, El Cajon, and Chico,” Rosana Francescato of Sunible writes.

According to the most recent census data, Fresno’s median annual income was just over $41,000. Yet Fresno is near the top of the Solar Cities list, at #3 in installs for Q1 2013.

Given that about 75% of new California solar homeowners choose solar leasing over ownership, it’s also not surprising that the top solar cities in California are also places where solar leasing has seen the strongest growth.

In the cities with the most solar growth since 2008, TPO solar has increased substantially — an average of more than 104% from Q1 2012 to Q1 2013.

In that period, the city of Chico experienced a 153% increase in TPO solar installations.

Before rolling out the Top 25 California Solar Cities list, check out the following infographic, which Sunrun put together to display the rapid growth of solar in inland cities with median incomes… despite decreasing government incentives for solar.

It’s pretty clear — if you live in California and you own your roof, going solar is a no brainer (unless you’re insane… or have some unique issues with your roof that make going solar impractical).

Join the solar rooftop revolution! Just do it!

Now that we’ve done our best to get you to do the obvious, here’s the Top 25 California Solar Cities list for Q1 2013:

  1. San Diego
  2. Bakersfield
  3. Fresno
  4. Los Angeles
  5. San Jose
  6. Murrieta
  7. Clovis
  8. Corona
  9. Escondido
  10. Temecula
  11. Palm Springs
  12. El Cajon
  13. Santa Clarita
  14. Apple Valley
  15. Chico
  16. Palmdale
  17. Rancho Mirage
  18. Northridge
  19. Palm Desert
  20. Visalia
  21. Ramona
  22. Pleasanton
  23. Lancaster
  24. Riverside
  25. Rancho Cucamonga

This article, Top California Solar Cities Are Median-Income Cities, is syndicated from Clean Technica and is posted here with permission.

About the Author

Zachary ShahanZachary Shahan is the director of CleanTechnica, the most popular cleantech-focused website in the world, and Planetsave, a world-leading green and science news site. He has been covering green news of various sorts since 2008, and he has been especially focused on solar energy, electric vehicles, and wind energy for the past four years or so. Aside from his work on CleanTechnica and Planetsave, he’s the Network Manager for their parent organization – Important Media – and he’s the Owner/Founder of Solar Love, EV Obsession, and Bikocity. To connect with Zach on some of your favorite social networks, go to ZacharyShahan.com and click on the relevant buttons.

$600 Yearly Savings For Middle-Class Families Who Lease Solar Panels (Average)

by Zachary Shahan

Photo Credit: 401(K) 2013 / Foter / CC BY-SA
Photo Credit: 401(K) 2013 / Foter / CC BY-SA

Originally published on Cost of Solar.

In states where it’s available, solar leasing is extremely popular. Approximately 75% or so of homeowners who go solar in these states decide to go solar through a solar leasing/PPA option. The big stat of the day today is that middle-class families who go solar in this way are projected to save about $600 a year off their electricity costs. That comes to about $12,000 to $15,000 over the course of their 20- to 25-year solar lease or PPA. That’s of course practically the same as making an extra $12,000 to $15,000, but without having to pay taxes on the money.

A lot of people contend that solar leasing rather than simply buying a solar power system is a rip off, since you’re theoretically giving away some of your profits from going solar to the solar leasing company. However, there is a reason or two that such a huge percentage of people go solar through a solar leasing service when given the option.

The biggest one is probably the simple fact that a lot of people don’t like paying for things up front. The average person would rather pay more in the long run, sometimes a lot more, if they can take their time making the payment.

Another thing to keep in mind is that solar leasing companies are often able to take advantage of solar energy tax incentives that the common person can’t take advantage of. This includes the 30% federal tax credit as well as Modified Accelerated Cost Recovery System (MACRS) and sometimes state tax credits. With those bigger government incentives, these companies can cut into their own potential profits a bit to make sure consumers get a great deal, perhaps even better than they’d get by buying their own solar power systems. (But, as always, I recommend checking out all your options and running the numbers.)

Other smaller but still notable benefits include the performance guarantees, monitoring, and maintenance that is generally covered by solar leasing/PPA companies. The peace of mind that comes with not having to worry about any of that is quite valuable to a lot of people.

For those three reasons, the majority of people who go solar and have an option to go with a solar leasing service do so that way. Look into whether or not that’s an option for you!

Repost.Us - Republish This Article

This article, $600 Yearly Savings For Middle-Class Families Who Lease Solar Panels (Average), is syndicated from Clean Technica and is posted here with permission.

About the Author

Zachary Shahan is the director of CleanTechnica, the most popular cleantech-focused website in the world, and Planetsave, a world-leading green and science news site. He has been covering green news of various sorts since 2008, and he has been especially focused on solar energy, electric vehicles, and wind energy for the past four years or so. Aside from his work on CleanTechnica and Planetsave, he’s the Network Manager for their parent organization – Important Media – and he’s the Owner/Founder of Solar Love, EV Obsession, and Bikocity. To connect with Zach on some of your favorite social networks, go to ZacharyShahan.com and click on the relevant buttons.