Impact of Solar Energy On New & Used Homes
As Americans are making environmental efforts, alternative forms of renewable energy are becoming more popular. We see this every day with the rise of electric cars on the road. For homeowners looking to reduce their carbon footprint, solar energy provides many benefits. The right solar panel system can fulfill the electricity needs of an entire household while creating around 80% fewer carbon emissions than fossil fuels.
Installing solar panels does much more than reduce energy bills. Unlike fossil fuels, solar energy is a renewable source which require very little maintenance and have no moving parts. Homeowners only need to clean the panels a couple of times each year and replace the inverter every 5-10 years.
Solar energy may soon replace traditional energy systems in several applications. Scientists continue to improve solar power technology to meet the needs of consumers and businesses. It’s expected that solar panels will be even more efficient in the future.
California Solar Mandate
The California Solar Mandate, which went into effect on January 1, 2020, requires new construction multi-family and single-family homes up to three-stories high to have a solar photovalic (PV) system as an electricity source. In order to comply with the mandate, the solar panel system must be large enough to meet the estimated annual electricity needs of the building.
While most homeowners understand the benefits of installing solar panels, there are a few things to consider before making this purchase. When homeowners purchase solar panels with anything other the cash, the manufacturer can place a Lien or Uniform Commercial Code filing on the property. Designed to create monthly payments, these liens may make it difficult to refinance or sell the property. Fortunately, many solar panel companies will uninstall the system prior to sale. Another factor is the monthly interest cost for leasing the system verses owning the system, which homeowners should consider. That’s why in many cases homeowners will use an equity line or cash reserves to outright buy the system.
Solar Panel Installation – New Home vs. Used Home
When it comes to solar panel installation, the age of the roof makes a big difference. Roofs generally last between 20 and 30 years. Solar systems last at least 25-30 years. Used homes with older roofs may require analysis by a structural engineer. This isn’t a problem when installing solar panels on a newer home.
While new homes will now require solar, buying a used home with solar panels provides benefits as well. Purchasing a used home with a fully owned system provides the greatest benefits. Because the prior owner purchased the solar panels up front, the homeowner avoids problems caused by an existing lease or finance contracts.
Strategic Sales and Marketing offers a variety of real estate sales and marketing services. Our team has years of experience working with the real estate industry and understands the steps required to identify and connect with potential buyers.