You Can Increase Your Home’s Value with Owned Solar Panels

Join the rooftop solar revolution!

Make an investment in your home and a clean renewable energy future for your children by installing rooftop solar panels, now.

If you are a homeowner, there is no better time to join the rooftop solar revolution and begin generating your own power. Besides helping to build the country’s clean renewable energy infrastructure, you will be increasing your home’s value.

Below are five reasons to consider joining the ranks of homeowners who have purchased a rooftop solar power system.

Home Sales Price Premium for Owned Solar Panels

Owned solar power systems can increase the value of your home and give you an edge over non-solar home sellers in your area.

Home rooftop solar panels are a relatively new home selling feature that will likely gain in importance as electricity prices continue rising and people become more concerned about getting their power from clean renewable sources. Fortunately, the real estate industry is embracing rooftop solar, incorporating it as part of the selling and buying process.

A November 2015 Lawrence Berkeley National Laboratory study shows that energy efficiency-minded homebuyers are willing to pay a premium for homes that have owned solar power systems, even up to the cost of the system (less any rebates and tax incentives).1

The California Regional Multiple Listing Service, the largest in the country, added power production fields in January 2017 so now realtors can enter solar power system information for their listings in a standardized format.2, 3 Other multiple listing services will likely follow California’s example.

Now visualize yourself as a home seller who had the foresight to purchase and install solar panels on your rooftop.

First of all, a rooftop solar power system is a long-term investment that you benefit from as long as you own your home. For warranty purposes, the lifespan of most rooftop solar equipment is considered to be 20-30 years; however, at that point, although solar panels may be less efficient they do not stop working.

Second, depending on how soon you put your house on the market after purchasing your system, it may have already paid for itself.

Lastly, savvy potential homebuyers will realize the benefit of buying a home that already has an operational rooftop solar power system and they may be willing to pay you a premium for the ability to generate free electricity from the day they move in, especially in a sunny and hot climate. If you replaced an aging roof before installing solar panels, even better.

Federal Renewable Energy Tax Incentive

Homeowners considering purchasing solar panels rejoice. The legalese buried on page 2,005 of the Consolidated Appropriations Act of 2016 4 can save you a pile of money via a 30% tax credit for your rooftop solar purchase.

Here is the gist of the tax credit. When Congress passed the far-reaching Energy Policy Act of 2005, it included a tax credit provision to encourage both business and residential renewable energy projects. Originally, the tax credit was set to expire at the end of 2007, but Congress has approved a series of extensions that pushed the end date back to December 31, 2021.

Here are some of the specifics related to the solar tax credit from the DSIRE (Database of State Incentives for Renewable Energy) website.

  • 30% for systems placed in service by 12/31/2019.
  • 26% for systems placed in service after 12/31/2019 and before 01/01/2021.
  • 22% for systems placed in service after 12/31/2020 and before 01/01/2022.
  • There is no maximum credit for systems placed in service after 2008.
  • Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2021.
  • The home served by the system does not have to be the taxpayer’s principal residence.

For example, if you purchase, install, and begin operating a solar power system costing $15,000 by December 31, 2019, you will be eligible for a 30% tax credit of $4,500. Depending on your tax situation, you could end up with a refund equal to part or all or your tax credit.

Rising Utility Electricity Rates

Have your electric rates ever actually gone down? I suppose it is possible, but it seems unlikely.

U.S. Residential Electricity Average Price Per Kilowatt-Hour - EIA June 2017

The U.S. Energy Information Administration seems to think that residential electricity prices will continue to rise. Data on their website shows that the average cost for a kilowatt-hour (kWh) of residential electricity increased by 53% from 8.0 cents to 12.22 cents between January 2003 and January 2017, and the agency is forecasting a kWh will reach 13.48 cents in 2018.5

Electric prices vary hugely by state and utility provider so your rates may be lower or higher than the U.S. average. For instance, where I live on the Central California Coast, we passed the 13.48 cents mark in 2006 and have now reached 23.0 cents in 2017.6

To put things in perspective, the California Public Utilities Commission reports that from 2012 to 2016 average electricity rates increased at an annual average of approximately 3.4%, which is well above the average inflation rate of 1.3% over the same time period.7

Low Solar Panel Prices

Through technological advances and competition, solar panel prices have come down over 50% since 2009.8 In fact, there is a global oversupply problem now, which is keeping prices low.

Support Your Local Economy

A 2017 U.S. Energy and Employment Report shows that 374,000 Americans are working full or part time in the solar industry, a workforce increase of 25% in 2016. American veterans hold 9% of the 260,077 full-time solar jobs.9

Many of the jobs in the solar industry are performed by women and men working for solar installation companies in your community. They might even be your neighbors. Solar companies employ people working in the field delivering and installing solar panels as well as people in sales, marketing, system design, project management, accounting, customer service, and leadership positions.

Homeowners We Have a Choice

Either we can stand on the sidelines watching as fossil fuel extraction and pollution-belching power plants destroy more land and contaminate more neighborhoods or we can do something about it by generating our own clean renewable energy and sharing it with the interconnected electric grids in our communities.

Group of Kids Playing at a Park

There is no better time than right now to go solar! Purchasing solar panels for your home is a sound financial investment and even more importantly, it pushes the ball forward in creating a clean renewable future for all our children.

We joined the rooftop solar revolution in 2013 and you can, too.

For homeowners interested in the pros and cons of leasing solar panels versus buying them, there are some articles in the resources section below.

If you have a rooftop solar success story you would like to share with other readers, please use the comment section below.

Featured Image at Top: Rooftop Solar Panels on the Home of the Unlikely Environmentalist – Danny from A.M. Sun Solar Finishing the Installation

Related Posts

References

  1. Appraising Into The Sun: Six-State Solar Home Paired-Sale Analysis, by Sandra Adomatis and Ben Hoen, Lawrence Berkeley National Laboratory, 11/12/15
  2. EERE Success Story—Real Estate Professionals Embrace Solar Power, U.S. Department of Energy Office of Energy Efficiency & Renewable Energy, 06/09/17
  3. Matrix Updates January 31, 2017, California Regional Multiple Listing Service
  4. Consolidated Appropriations Act of 2016, United States Congress, 12/14/15
  5. Short-Term Energy Outlook, U.S. Energy Information Administration, 06/06/17
  6. PG&E Residential Rates Effective March 1, 2017
  7. California Electric and Gas Utility Cost Report, California Public Utilities Commission, April 2017
  8. NREL Report Shows U.S. Solar Photovoltaic Costs Continuing to Fall in 2016, National Renewable Energy Laboratory, 09/28/16
  9. U.S. Energy and Employment Report and the Annual Energy Outlook 2017 with projections to 2050, U.S. Department of Energy, January 2017

Resources

Earth Day 2017 – Mr. President, Go Green

Veteran Co-Owned Solar Company Based in San Diego, CA - Photo Semper Solaris
Veteran Co-Owned Solar Company Based in San Diego, CA – Photo Semper Solaris

For Earth Day this year, coming up on April 22, 2017, write a letter to President Trump letting him know a concern of yours, environmental or otherwise.

Prior to the first Earth Day in 1970, smog was so thick in some cities you could not see across the street, water pollution was so bad that rivers caught on fire, and pesticides were poisoning not only pests but people and wildlife, too. Richard Nixon was the President of the United States.

On April 22, 1970, millions of Americans took to the streets demanding that the Federal Government take action to protect the environment and public health. The modern environmental movement gained traction and people from all walks of life supported environmental legislation. During the 1970’s, the Environmental Protection Agency was founded and Congress passed important environmental laws including the Clean Air Act, the Safe Drinking Water Act, and the Endangered Species Act.

Since 1970, Earth Day as spread around the world encouraging people everywhere to take action to protect Mother Earth, the place we all call home.

A few years ago, I began a tradition of writing to the President of the United States for Earth Day (I write on other days, too). This year, I wrote the letter below to President Trump about renewable energy.

April 17, 2017

President Donald Trump
The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500

Re: National Security and Renewable Energy

Dear President Trump,

While reading your 2018 budget proposal America First: A Budget Blueprint to Make America Great Again, a sentence in your message to Congress on page 7 resonated with me.

“A budget that puts America first must make the safety of our people its number one priority—because without safety, there can be no prosperity.”

Safety from terrorist attacks is just one way to help Americans feel safe. We also need clean air to breathe, safe water drink, healthy food to eat, a roof over our heads, and a habitable planet to live on.

As an American citizen, I respectfully urge you to support ramping up renewable energy to promote safety and prosperity for all Americans.

The Pentagon has stated that climate change is a major threat to national security and the DOD has embraced renewable energy to improve systems efficiency, troop safety, and mission effectiveness.

Expanding renewable energy to power American homes, businesses and transportation would enhance our national security and provide jobs. The U.S. Energy and Employment Report and the Annual Energy Outlook 2017 with projections to 2050 provide compelling information about how renewable energy and energy efficiency is already contributing to your make America great again strategy.

Solar – 374,000 Americans are working full or part time in the solar industry, a workforce increase of 25% in 2016. American veterans hold 9% of the 260,077 full-time solar jobs.

Wind – 102,000 Americans are working in the wind industry, a workforce increase of 32% in 2016.

Energy Efficiency – 2.2 million Americans are working on energy efficient products and services related to the EPA’s ENERGY STAR program (which you propose eliminating). Of those jobs, 290,000 are manufacturing jobs.

Mr. President, you have considerable business experience and acumen, which is why many Americans voted for you, so I urge you to put that knowledge to work in supporting renewable energy.

My spouse and I are trying to do our part. When we installed solar panels on our roof, we specifically chose a manufacturer producing panels in the U.S. and paid 9% extra to support American workers.

Let us work together to keep Earth habitable for our children, grandchildren, and generations to come.

Sincerely,

Linda Poppenheimer

The Unlikely Environmentalist at greengroundswell.com

For Earth Day 2017, please write a letter to President Trump and join millions of Americans and me for the March for Science on April 22. If you can’t make it on the 22nd, then consider participating in the People’s Climate Movement March on April 29.

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Resources