California will be the first state in the U.S. to require solar panels on all new homes starting 2020, but the legislation\u2019s passage did not end the debate over a key question: Does the cost of installing solar pay off for homeowners?<\/p>\n\n\n\n

Some developers are not even waiting for 2020 and are\u00a0pressing ahead with solar-powered homes\u00a0for what they say is the best reason: it is simply what best serves the homebuyer market matching energy demands to efficiency and cost. The state estimates the new solar power rule will help homeowners save about $19,000 in a 30-year period. Others say the\u00a0mandate will push up housing costs\u00a0too much for many homebuyers.<\/p>\n\n\n\n

There\u2019s another way to look at the question: Does adding solar power increase a home\u2019s value at time of sale? According to real estate information company\u00a0Zillow, in some states the answer already is yes. Zillow\u2019s research indicates that in the same way homeowners are willing to pay thousands of dollars for renovations like a new kitchen or finished basement, they need to evaluate the return on investment from investing in solar energy.<\/p>\n\n\n\n

Installing solar panels in a home not only helps to reduce current monthly utility bills; it can potentially increase the home\u2019s value by up to 4.1% more than comparable homes with no solar panels, according to\u00a0recent solar research done by Zillow\u00a0\u2014 or an additional $9,274 for the median-valued home in the U.S.<\/p>\n\n\n\n

Green houses<\/h2>\n\n\n\n

Recent natural disasters like the\u00a0California wildfires,\u00a0heat waves\u00a0throughout Europe and\u00a0extreme melt events\u00a0have inspired many to seek more eco-friendly lives, including home buyers.<\/p>\n\n\n\n

\u201cThere is increased demand for green living. More than 80% of buyers now say energy-efficient features are important in selecting their home,\u201d said Sarah Mikhitarian, Zillow senior economist.\u201cWe are increasingly finding that these attributes are important to prospective homebuyers. This is part of the reason that there is a premium associated with it. The other piece is that there is true value provided by solar panels \u2014 namely, future energy savings.\u201d<\/p>\n\n\n\n

The energy savings depends in part on how a specific home consumes energy. For example, a home that features heated floors might see a greater premium from the addition of solar (though this was not a correlation Zillow specifically researched).<\/p>\n\n\n\n

\u201cFor homeowners who know they consume a lot of power, those future savings are worth spending a bit more money up front,\u201d Mikhitarian said.<\/p>\n\n\n\n

To identify the solar premium in each state, Zillow compared the sale prices of homes with and without solar-energy systems listed for sale and sold within the research period \u2014 March 2018 and February 2019.The company examined all transactions that occurred and identified which homes featured solar panels in their listing descriptions, controlling for observable attributes including size, age, location, and market value at the time it was listed for-sale. Zillow also controlled for local market dynamics and the time of the year that the home sold.

In New Jersey, homes with solar panels can sell for 9.9% more than homes without solar-energy systems. That is a profit of $32,281 for the median-valued home in that state.<\/p>\n\n\n\n

Here\u2019s the top 10 states with the highest solar premiums, according to Zillow\u2019s findings:<\/p>\n\n\n\n

1. New Jersey: 9.9% or $32,281 for the median-valued home.<\/li>
2. Pennsylvania: 4.9% or $8,589 for the median-valued home.<\/li>
3. North Carolina: 4.8% or $8,996 for the median-valued home.<\/li>
4. Louisiana: 4.9% or $7,037 for the median-valued home.<\/li>
5. Washington: 4.1% or $15,916 for the median-valued home.<\/li>
6. Florida: 4% $9,454 for the median-valued home.<\/li>
7. Hawaii: 4% or $24,526 for the median-valued home.<\/li>
8. Maryland: 3.8% or $10,976 for the median-valued home.<\/li>
9. New York: 3.6% or $10,981 for the median-valued home.<\/li>
10. South Carolina: 3.5% or $5,866 for the median-valued home.<\/li><\/ol>\n\n\n\n

    However, solar premiums can vary within state lines.<\/p>\n\n\n\n

    While the solar premium for the state of Florida is 4%, it increases to 4.6% in Orlando, Florida.<\/p>\n\n\n\n

    In New York City the solar premium is 1.8% more than it is statewide, which translates to $23,989 more in value for the typical home in New York.<\/p>\n\n\n\n

    And in California there are major fluctuations within metro areas: while the solar premium statewide is 3%, in San Francisco, it increases to 4.4%, in Los Angeles to 3.6% , but in Riverside, the solar premium declines to 2.7%.<\/p>\n\n\n\n

    Other states like Utah, did not have enough homes with solar-energy systems installed to identify the solar premium.<\/p>\n\n\n\n

    <\/figure>\n\n\n\n

    \u201cThere\u2019s been a widening of reasons why people are going solar,\u201d said Evelyn Huang, chief customer experience officer at\u00a0Sunrun, the biggest solar installation company in the U.S. \u2014 it competes directly with\u00a0Tesla, which acquired its main competitor SolarCity. \u201cOne of the reasons is savings, I think that\u2019s the obvious one. The second one is control,\u201d Huang said, referring to monthly expenses.<\/p>\n\n\n\n

    \u201cOur utility companies are needing more and more money to maintain, and they pass on that cost to the homeowner. But that is pretty unpredictable for a homeowner. You just don\u2019t know how much your prices are going to increase,\u201d Huang said. \u201cI think that is another reason why customers are considering solar. They want to know how much they are going to pay every month. If you\u2019re on a fixed income, you need a budget. You need to know what to expect.\u201d<\/p>\n\n\n\n

    Homeowners who made the solar switch<\/h2>\n\n\n\n

    Lisa and Jerry Chretien, a couple from Cape May County, New Jersey, decided to lease solar rooftop panels from Sunrun a year ago. High utility bills and the desire to live cleaner and greener lives inspired them to make the decision. Since going solar in June 2018, the Chretien\u2019s electric bills have decreased, especially in the summertime.<\/p>\n\n\n\n

    \u201cAs soon as we would open the pool and turn on the air conditioners in May \u2026 our electric bills would run close to $800, sometimes more,\u201d said Lisa Chretien. \u201cSaving money, especially with kids in college, has been a big help and a big saving. And there are a lot of incentives, tax wise you get a break. It has just been a plus all the way around.\u201d<\/p>\n\n\n\n

    For Kerrie Lane, owner and operator of a cleaning service and resident of South Jersey, the experience was similar. After moving into her new home, she received her first electric bill: a staggering $1,100. Kerrie knew she needed to do something to make her electric bills affordable.<\/p>\n\n\n\n

    \u201cI\u2019m 60 years old, so I\u2019m getting up there. I do a physical job for a living but I can\u2019t do it forever. … So having my bills being manageable was very important to me,\u201d Lane said. \u201cMy first electric bill in this house was $1,100. I knew I needed to correct this situation and make it manageable and Sunrun gave me the consistency that I was looking for. \u201d<\/p>\n\n\n\n

    A Sunrun spokesman said that assuming annual utility rate increases \u2014the current national average utility rate increase per year is around 3%\u2014 solar customers see an average utility bill savings of anywhere from 10% to 40%. Solar contracts include a fixed price of energy per kilowatt\/hour that is typically lower than utility rates in most regions across the U.S.<\/p>\n\n\n\n

    The Sunrun spokesman noted that customers still must pay basic utility infrastructure charges separate from the power generation cost, for wire maintenance, for example, and may also still use some power generation from the utility\u2019s sources, depending on the size of their home and level of energy use, as well as the season. Seasonality is an issue for utilities too. In the summer, for example, prices tend to be higher to meet the demand, according to the\u00a0U.S. Energy Information Administration.<\/p>\n\n\n\n

    Depending on their deal with Sunrun \u2014 which offers service plans, loans, prepayments and cash purchases \u2014 customers may also pay monthly charges to the company. Sunrun says that more than 85% of customers do not buy the system outright but pre-pay a set amount and then make monthly service plan payments.<\/p>\n\n\n\n

    From: https:\/\/www.cnbc.com\/2019\/10\/05\/solar-power-can-boost-a-homes-value-in-these-10-states-the-most.html<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"

    California will be the first state in the U.S. to require solar panels on all new homes starting 2020, but the legislation\u2019s passage did not end the debate over a key question: Does the cost of installing solar pay off for homeowners? Some developers are not even waiting for 2020 and are\u00a0pressing ahead with solar-powered…
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