Solar power adds value to a home or buildings, as buyers now look for long-term solutions on energy savings. Over the past decade, solar panels have simultaneously become more affordable and advanced. For real estate professionals, the number one reason why solar keeps getting more popular each year is that it can help cut costs for buildings of any size.
Once you decide on installing solar panels on your roof, make sure you choose a reputable contractor that is certified by the North American Board of Certified Energy Practitioners (NABCEP). If you aren’t ready to make a purchase of solar equipment you can still consider leasing options. Avoid working with inexperienced handymen who undercut the market, since improper installation can nullify a warranty and drive up maintenance costs.
Making Tenants Happy
One of the key ways that solar helps a real estate investment is that it creates happy tenants who enjoy living in a place that supports sustainability and innovation. Solar energy gives tenants the feeling of social responsibility by reducing greenhouse gas emissions and waste. The fact that solar panels cut energy costs after a certain number of years raises the value of a home. Furthermore, solar panels bring satisfaction to tenants who promote sustainable solutions in their neighborhoods.
Counting Future Savings
Prices for solar energy are expected to drop by 60 percent in the next few decades. Energy experts say that solar energy will be cheaper than coal and natural gas across the United States by 2040.
Americans save about $120,000 per year on energy costs thanks to the growing move toward solar energy. Consumers who are granted a Solar Investment Tax Credit get an additional 30 percent back in savings. On top of that, new homeowners save $80 per month on energy bills by using solar.
Solar Mandates for New Homes
In 2020, California will become the first state in the United States to mandate solar installations on all new homes and buildings. On one hand, this new plan could prove to be costly to homeowners. On the other hand, it could pave the way for a national solar trend. The California Energy Commission (CEC) says the mandate will increase the cost of a new home by as much as $10,000. It will also raise the average monthly mortgage payment by $40.
In real estate, the way to stay ahead is to keep up with trends and movements as they arise. If you’re a real estate professional and you haven’t been paying attention to the push for solar power, you may be missing out on valuable savings. Though becoming sustainable may cost more upfront, the long-term savings truly speak for themselves.