Archive for the ‘Solar Panel’ Category
Home solar power system increases home resale value
One question often asked by homeowners considering purchasing a solar system is whether home solar power will add value to the home and increase home resale value. Studies have shown that home owners can expect to recover about 75% of their investments with kitchen remodeling, 85% with window replacements and 89% with bathroom upgrades*.
With residential solar power system installations, the increase in appraisal value for a home is about twenty (20) times the annual reduction in operating costs**. That is to say, if a solar power system can lower energy cost by $1,000 per year, the home is worth about $20,000 more in increased appraisable value. The rational is that the $1,000 that is not spent on electricity, is available to be spent on a larger mortgage payment at no net change in the cost of living.
Home solar power installation and home appraisal*
Examples of home appraisal values in California as shown in the above table demonstrate that home solar power not only can contribute to energy savings, lower energy cost, be friendly to the environment, but can also increase home resale value.
* http://learn.1bog.org/files/2009/03/black_home_value.pdf
**Nevin, Rick et al, More Evidence of Rational Market Values for Home Energy Efficiency, The Appraisal Journal, The Appraisal Institute, http://www.natresnet.org/herseems/appraisal.htm, October 1999
Federal Tax Credit for Solar Power
Electricity in the U.S. comes mostly from non-renewable sources, coal (48.5%), natural gas (21.3%), nuclear (19.6%) and Petroleum (1.1%). Renewables only make up approximately 9%. Of that 6% is hydroelectric. Solar, wind and other renewables make up only about 3% of our electric supply. To help the country transition to a less fossil fuel dependent economy, and to encourage home owners to improve fuel efficiency in their homes and to purchase renewable power-generating systems, the federal government is providing tax credit to a variety of energy saving home improvements.
The Federal Tax Credits for Energy Efficiency Act of 2009 provides a home energy efficiency improvement tax credit of 30% up to $1500 for improvements placed into service starting Jan 1, 2009 through Dec 31, 2010. For photovoltaic solar systems, the tax credit is a straight 30% of the cost. The cost of solar systems have come down substantially over the past couple of years, and with this government tax credit of up to 30% of the installation and equipment cost, solar systems have never been a more affordable investment .
Supplementing Grid Power with a Solar Kit
People often operate under the assumption that solar power is only worth capturing for those who live in the desert, where sunlight is abundant year round. This is a common misconception as most places in the United States get plenty of sunlight – certainly enough to justify the use of a solar power system. Even if the home is primarily dependent on a typical power grid, there’s no need to cut ties completely.
Solar power kits can actually be used in tandem with regular power supplies from local utility companies. Grid-tied residential solar kits allow the user to harness energy from the sun and convert it into viable AC power. Then, if the home requires more power to function normally, the extra power is drawn from the grid. Homeowners can use a net meter to keep track of how much electricity is being used and fed back to the grid.