Harness The Power Of The Sun And Put Some Green Back Into Your Wallet

Jenell Fontes

Taking advantage of the power of the sun can reduce your monthly electric bills, increase the value of your home, and make a difference in our ecological footprint.  Due to advances in solar technology and mass production of solar panels solar it is now less expensive and cumbersome to add to any home or business.  

So what do you need to know when calculating if going solar is the right decision for you and your home?  It is important to calculate your yearly savings, the cost to lease or purchase the panels and the overall value and curb appeal of your home. Once you have asked the right questions and have the data, you may find that going green is a solid financial and social decision. "There is no doubt that solar adds greatly to the value of a home, as well to the quality of life for those who live there," said Renova Solar CEO/President Vincent Battaglia. "They not only enjoy the considerable savings on their utility bill each month, they also have the satisfaction from using a clean, renewable form of energy generation."

CALCULATE THE SAVINGS

To help calculate the cost of solar for your home relative to the monthly savings on your electric bill and the ultimate payoff check out this website and use their calculating tools. This will help you to weigh the initial costs and maintenance costs against yearly savings and home valuation. This will also help you to decide if the investment in solar is worth the payoff or if a lease of equipment is a more viable option. This spreadsheet program was developed by Sandia National labs and Energy Sense finances and is an invaluable tool. It’s designed to be used by a wide variety of real estate professionals such as realtors, appraisers, assessors, insurance claims adjusters, and mortgage underwriters. An income capitalization approach is utilized to value the cost of solar, considering operation and maintenance costs during the warranty, and the actual savings to the consumer.

Check with your city, state and county and local power companies for any incentives or financing programs. The real discount is the 30% federal tax credit that expires at the end of 2016.  It’s a credit against Federal Tax Liability so whether a person has the tax appetite or not is a major factor in whether it’s better to buy or lease.   

“Currently the world of lease and finance options is expanding, “ says David Herrlinger from Hot Purple Energy. “It’s clear solar still saves you money even with an interest component, so the options will continue to grow.”  There is even a CV wide Property Assesses Clean Energy loan program to fund home and business energy improvements, including solar, where the money is loaned to the property not the owner, and is paid as a part of the property tax bill.

PURCHASE OR LEASE

Solar energy offers a clean, reliable, low cost way to generate electricity. The only real decision is whether to purchase, and in essence become your own power plant, or have a company install solar panels on your roof and retain ownership, while you make a fixed payment each month that will be lower than what you were paying for electricity. The second option requires no money out-of-pocket as installation is free, while purchasing will generate substantially more savings over the lifetime of the system.  

SOLAR AND YOUR HOME VALUE

Some appraisers are still learning how to value solar, but a common formula is 20x the annual savings. Their results are as clear as the sun on a cloudless day. LBNL’s report estimated that each 1-kilowatt (kW) increase in rooftop solar system size adds $5,911 to a home’s resale value. “Our analysis offers clear support that a premium exists in the marketplace, thus PV systems have value and their contribution to home values must be assessed,” states the report.

Read more from the report here.

USE A TRUSTED SOLAR COMPANY

Choosing a solar company to work with is a very important decision and there are some key questions to make sure that the company you choose will do a quality job. First, check their qualifications, license and client references. You can check with the California State License Board, The Desert Contractors Association as well as the North American Board of Certified Energy Practitioners (NABCEP) that certifies solar installers. As with any home improvement, only work with licensed, bonded and insured contractors. 

It’s important to receive multiple bids and to check references and track record. Local established contractors are your best bet as they have relevant references as well as equipment that is tailored to our extreme heat. Take your time in choosing as proper and careful installation is very important as cutting into the roof of your home can have major consequences if not handled properly.    It would be a shame to see all of your savings go down the drain from a leaky roof after the first rainstorm, although reputable solar installers will utilize techniques like double flashing as needed and bring in reputable roofing companies who will offer their own warranty for their work on your roof.

IN CONCLUSION

Solar Energy has proven itself to be reliable and less expensive than grid energy.  But there is not a one size fit all approach to sizing a solar system or determining if it’s better to buy or lease. In the end, producing your own power is a great way to save money and add value to your home. Using the best equipment backed by the best manufacturer is a good way to assure this asset produces the desired energy for decades to come.  All solar panels and solar leases are not created equal. 

SunPower is a U.S. manufacturer, for example, whose solar panels deliver 44% more power than conventional panels of the same size. That means fewer panels on your roof, a more attractive array, and room to expand in the future if you get an electric car! Even if you have run the numbers in the past, pricing on equipment and installation has dropped dramatically, while electric rates continue to rise. Let solar put the power of the sun to work for you to put some “green” back into your pocket.

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