Does Solar Add to Home Value,

Does Solar Add to Home Value

Does Solar Add to Home Value? Yes, without question solar adds value to a home in 2020 and beyond. It’s free electricity for the buyer without the grief of the purchasing and installation process. Unlike a pool or any other home improvements, home solar puts money in your pocket every month that goes by. Not having a power bill is the same thing as putting money in your pocket compared to a home without solar.

At this point in 2020, it would be a challenge to lose money going solar. When selling a home the only downside is if a buyer doesn’t like the appearance of it. You can’t please every potential buyer regardless if it’s solar or a swimming pool or the kitchen.

Aside from a few people not liking the appearance, everything else is positive about home solar. The equipment in today’s market is excellent and the competition is driving the cost down. Home solar is profitable in 2020 and beyond because it pays for itself by eliminating or dramatically reducing a power bill.

The principle behind going solar is exactly the same as why you buy a home versus renting. One is gone money and the other is an investment sure to pay you back.  So does solar add to home value, yes when you buy right because free electricity has a factual value.

Buy Solar Wisely and It will Increase The Value of Your Home

No different than when you buy a home what dictates your return on investment with solar is what you paid for it. You never know what the market for selling something is until you sell it but you sure can protect your investment by buying wisely.

Just because you may qualify for a tax credit and you’re using the power bill money to pay for it doesn’t warrant buying solar recklessly. It’s a huge upfront investment so the prices solar companies charge are all over the board.

Beware of several factors, a long term loan kills the ROI and comes with expensive closing costs that many solar companies cover-up. When they qualify you they run a hard credit check and several of these checks in a short period can ding your credit score for a while.

Is the tax credit included in your deal to pay the finance company when you receive it? Not everybody qualifies for the tax credit and some only qualify for a partial tax credit. It’s always recommended to leave the tax credit out of the deal. It’s very important to consult with your tax preparer as to whether you qualify for it and for what amount.

As far as when you buy a solar system it’s probably best to treat the tax credit like it’s nobody else’s business or concern. It’s best to keep it between you and your tax preparer because you have time to deal with it during the next tax season. Want to learn more about the tax credit see: Federal Solar Tax Credit 2020: Step By Step Guide.

Clean Energy Is Attractive

Society in general is more environmentally conscience than ever before. The environment is important and most homeowners would welcome the opportunity to make a contribution for cleaner air without any lifestyle changes. Does solar add to home value, yes and it doesn’t require any lifestyle changes. In the end going solar puts more money in the homeowners pocket than the alternative, paying the power company every month. How could that not be attractive to home-buyers?

Buy Solar for Cash and Save Big!

Buying solar is nothing like buying a car? You might not know that when you go to buy a car for cash it does not motivate the dealership to give you a better price. On the contrary, the dealership makes money off of financing and other add-on products such as warranties and gap insurance.

A cash buyer isn’t going to offer an additional opportunity to the dealership to upsell. More often than not cash buyers do not have a trade-in so the dealership sees that as a lost opportunity as well. The last point here is when somebody finances a car the dealership is still getting the full amount in cash at closing from the bank.

It’s the complete opposite with home solar, you will get a considerably lower price for cash. As you will see in the two charts below. One chart demonstrates how much overhead is involved in one solar deal. The other chart demonstrates the potential savings!

I understand that not everybody can pay cash, but you sure can go get the money a different way. $2500 in closing points for a solar loan at 5% over twenty years is nut! I am certain any homeowner that has the credit for a low interest twenty year loan can get their own financing and pay it off in bigger monthly payments in 5 years. 

With your own financing you can buy your system for cash from the owner of the solar company and you save that owner all that overhead that would have been passed on to you. The basic advice here is 20 year financing kills your opportunity for a huge profit from going solar. Does Solar Add to Home Value, if you buy right it’s a tremendous value.

Solar Does More Than Add Value To a Home - It's Also a Great Investment

What To Be Aware of? The following chart gives you a breakdown of what you can expect from a solar company’s overhead costs that the buyer ultimately pays for.

A Typical Solar Companies’ Cost Breakdown

Add-Ons To Every Solar Proposal Cost of Add-Ons
The Cost of Salesperson $3000
Sales Manager $1500
Proposal Builders and Permitting Department $1000
Overhead: Rent, Auto Insurance, Vehicles, and Utilities $1000
Cost of Leads and Marketing $1000
Points for Low Interest 20 Year Loan Terms (Frequently Hidden Cost) $2500
Solar Panels, Inverter, Installation $15,000
Solar Company Profit $5000
Total $30,000
Federal ITC Is 26% Off The Above Cost for Qualified Buyers
(Many Solar Companies Use Tax Credit as a down-payment 12 to 15 months after the deal is closed)

The reason why solar companies are structured this way is that the solar company doesn’t pay those additional costs, the buyer does.The solar company doesn’t lay out any of the costs until the finance company funds their account.

A Better Way To Go Solar

Your Solar Advocate” Consulting Firm is a better way to go solar. Having an advocate to walk you through every step of going solar can save you money!

Whether you choose to hire an advocate or not we want to inform you of what to look out for before you go solar. We are not selling home solar in any form or fashion but we are solar advocates. U.S. Solar Report promotes home solar and we don’t care how you do it, but we just want it for the environment! We want to help any homeowner to go solar and make money from it and having inside information helps to save homeowners money!

“Your Solar Advocate” Helps To Eliminate Some of The Costs of Home Solar

Add-Ons To Every Solar Proposal Cost of Add-Ons
The Cost of Salesperson $3000
Sales Manager $1500
Proposal Builders and Permitting Department $1000
Overhead: Rent, Auto Insurance, Vehicles, and Utilities $1000
Cost of Leads and Marketing $1000
Points for Low Interest 20 Year Loan Terms (Frequently Hidden Cost) $2500
Solar Panels, Inverter, Installation $15,000
Solar Company Profit $5000
Total Including Your Solar Advocate Fee $16,200
Federal ITC Is 26% Off The Above Cost for Qualified Buyers

Get a Free Cost Estimate From "Your Solar Advocate" Consulting Firm