How does solar affect resale value?

heynow999
heynow999 Solar Expert Posts: 80 ✭✭✭✭
in General Solar Power Topics #1
I am finished installing my 16 Evergreen panels on the back of my house. It is a 2.5 kw system. It will be grid-tie, I still have to have the final hook-up done.

Because we have a generous by-back program from the local utility, the 2.5 kw should cover my electricity costs. This has got me thinking about how much, if any, has this increased the value of my house?

I am wondering what people think a solar system will add to the price of a house? Would it increase in value the whole cost of the system? %50?

Basically, I will have a house that has no electricity bill. Thats gotta be worth something?

Any real world experiance with this?

Thanks

Peter
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Comments

  • mike95490
    mike95490 Solar Expert Posts: 9,583 ✭✭✭✭✭
    #2
    Re: How does solar affect resale value?

    It should add about 80% of it's installed value to the house, if you can transfer the warrantys for the panels & inverters to the new owner.
    I was able to transfer my Xantrex GT3.8 warranty to the new owner. Of course, he's such a dolt, he removed the gas clothes dryer, and installed an electric one, "to use the free electricity". Rough up a simple spreadsheet with electric rates and consumption, and at 20 years, see where the value is.
    Powerfab top of pole PV mount | Listeroid 6/1 w/st5 gen head | XW6048 inverter/chgr | Iota 48V/15A charger | Morningstar 60A MPPT | 48V, 800A NiFe Battery (in series)| 15, Evergreen 205w "12V" PV array on pole | Midnight ePanel | Grundfos 10 SO5-9 with 3 wire Franklin Electric motor (1/2hp 240V 1ph ) on a timer for 3 hr noontime run - Runs off PV ||
    || Midnight Classic 200 | 10, Evergreen 200w in a 160VOC array ||
    || VEC1093 12V Charger | Maha C401 aa/aaa Charger | SureSine | Sunsaver MPPT 15A

    solar: http://tinyurl.com/LMR-Solar
    gen: http://tinyurl.com/LMR-Lister ,

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  • niel
    niel Solar Expert Posts: 10,300 ✭✭✭✭
    #3
    Re: How does solar affect resale value?

    it may not just increase your resale value, but also your property taxes depending on where you are. this might replace your electric bill dollar for dollar if they really rack it to you.
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  • Solar Guppy
    Solar Guppy Solar Expert Posts: 1,989 ✭✭✭
    #4
    Re: How does solar affect resale value?

    Its also important for resale to have the signed of building permit and interconnection agreements available, otherwise it very likely the property could not be sold ( with a gorilla system )

    While I like your patio roof idea, there is no way that it would pass wind load codes around here and you may have NEC issues as any wiring that is accessible must be in conduit. Typically roof mount is OK for MC cables as one can't have easy access to under the panels. Is you system inspected by the local electrical inspector?

    Just some random thought or you system
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  • heynow999
    heynow999 Solar Expert Posts: 80 ✭✭✭✭
    #5
    Re: How does solar affect resale value?
    Solar Guppy wrote: »
    While I like your patio roof idea, there is no way that it would pass wind load codes around here and you may have NEC issues as any wiring that is accessible must be in conduit. Typically roof mount is OK for MC cables as one can't have easy access to under the panels. Is you system inspected by the local electrical inspector?

    Just some random thought or you system

    I had the electrician look at it and he said the same thing. We will either cover the section of the panels with something, maybe cloroplast, or use conduit. I would like to hear any ideas on how I could use conduit and make it look as neat as possible as it will be visible. Should I just run a conduit between the panels and put the wire in it? It might be difficult to connect the wires.

    Any ideas, pictures?

    Thanks
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  • Solar Guppy
    Solar Guppy Solar Expert Posts: 1,989 ✭✭✭
    #6
    Re: How does solar affect resale value?

    You should start with talking to the building department and getting a permit. THEY are the ones that will have to sign off on your system BEFORE you can run gridtie.

    I would expect they may want a PE sign-off on the structure supporting the panels and can answer the requirement of how the wire must be routed.

    Typically, the wiring end to end will have to be in emt as its accessible and I have a feeling your panels are MC cables which can be a real issue as don't have a Jbox to run the cable to

    In the end, you home-owner insurance can be at risk if you have no permit ( the insurance may not payout on claims based on the un-permitted system as a possible cause ) and as I posted earlier a sale can be held-up without proper permits.

    Using an electrician who is not current in solar-electric installations can be little better than no electrician at all. NEC 690 spells out all the rules and the one's I have talked to around my parts have no knowledge of the specifics of solar electric even though they we VERY good master electricians

    So step one is talk to your Building department, probably the head person that handle electrical permits.
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  • heynow999
    heynow999 Solar Expert Posts: 80 ✭✭✭✭
    #7
    Re: How does solar affect resale value?

    Our system is probably a bit different here in Ontario. I struggled with the question of whether to get a building permit. I reviewed the requirements for a building permit, and it is not really specific about whether I need one or not. I chose not to get one, but I made all the footings deep enough and took pictures. I could also argue that I was just replacing an existing structure, which I did.

    The electrical work is a different story. I know I need a permit for that, and I have applied for that. The electrical inspections are a separate organization not connected with the building permit organization (the local town). I have an electrical contractor who has done grid-tie connections before. I think what I should do is make sure everything is done right (electrically) and hope the inspector is ok with it. I would bet the inspector has seen very few solar systems, in fact they admit to that.

    We'll see what happens!
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  • n3qik
    n3qik Solar Expert Posts: 741 ✭✭
    #8
    Re: How does solar affect resale value?

    Look at a "U" shaped trough. This will hold the wire, look ok and be a barrier between the wire and human contact.
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  • Roderick
    Roderick Solar Expert Posts: 253 ✭✭
    #9
    Re: How does solar affect resale value?

    Back to the original question, I've heard the guideline of taking the value of electricity that the panels supply annually, and multiplying that by 20, to get the increase in the value of the house. So if the panels save $500 of electricty each year, the house is worth $10,000 more. The same rule can be applied to insulation or other utility-saving measures.

    I don't know what the housing market is like in your area, but here, it's volatile, so it would be hard to measure what effect the panels have on price.
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  • niel
    niel Solar Expert Posts: 10,300 ✭✭✭✭
    #10
    Re: How does solar affect resale value?

    roderick,
    that sounds like a dollar for dollar amount increase in the price of the home for what the pvs may supply over their lifetime of 25yrs as i'm including any possible output degradation and such that may occur. this almost makes the new home buyer to pay for the entire system and that's rediculous to me seeing as how they aren't new pvs either in most cases. if it were up to me i'd opt to say no to that home and buy a new solar pv system on a home that is much cheaper in the first place. old pvs just aren't worth what they were new.
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  • Roderick
    Roderick Solar Expert Posts: 253 ✭✭
    #11
    Re: How does solar affect resale value?
    niel wrote: »
    roderick,
    that sounds like a dollar for dollar amount increase in the price of the home for what the pvs may supply over their lifetime of 25yrs as i'm including any possible output degradation and such that may occur. this almost makes the new home buyer to pay for the entire system and that's rediculous to me seeing as how they aren't new pvs either in most cases. if it were up to me i'd opt to say no to that home and buy a new solar pv system on a home that is much cheaper in the first place. old pvs just aren't worth what they were new.

    I'm just the messenger; this was the statement that I recalled. I think it was from some assessor's guideline.

    Also, you're already a solar expert, and would be making a rational decision about cost/benefit. The price of a home is largely based on perception. My friend was trying to sell a house with ratty carpet, and offered a $5000 carpet allowance. You would think that people would prefer to choose a quality carpet of a color and style to their liking. No bites. He installed $2000 of brand-new, dirt cheap carpet, and the offers started coming in.
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  • niel
    niel Solar Expert Posts: 10,300 ✭✭✭✭
    #12
    Re: How does solar affect resale value?

    hah, go figure some people. sort of like raising the price in a store and calling it a sale and watch the idiots buy it.
    btw, i wasn't condemming the messenger, only addressing him with my opinion for what that's worth.:roll:
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  • solartek
    solartek Solar Expert Posts: 69 ✭✭✭✭
    #13
    Re: How does solar affect resale value?
    niel wrote: »
    roderick,
    that sounds like a dollar for dollar amount increase in the price of the home for what the pvs may supply over their lifetime of 25yrs as i'm including any possible output degradation and such that may occur. this almost makes the new home buyer to pay for the entire system and that's rediculous to me seeing as how they aren't new pvs either in most cases. if it were up to me i'd opt to say no to that home and buy a new solar pv system on a home that is much cheaper in the first place. old pvs just aren't worth what they were new.

    While the $20 increase in home value due to a $1 decrease in annual energy cost is the most often quoted number, the actual values are somewhere between $10 and $25 and depend, of course, on many different factors. Check out the following articles:

    www.ongrid.net/AppraisalJournalPVValue10.98.pdf
    www.ongrid.net/AppraisalJournalPVValue10.99.pdf

    The assumption is that solar electric systems are just another type of an energy efficient improvement.

    Scott.
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