In a sluggish real estate market teetering on the edge of the potential for a double dip recession many people are seeking ways with which to add value to homes and to date nothing does the job quite as well as renewable energy systems. In fact, homes that already have these energy efficiency or renewable energy systems installed on them have seen far greater interest from potential home buyers which in some instances were not even listed to begin with. This is not solely based on any one type of renewable energy system but has been witnessed on various systems from PV solar and wind turbines to solar thermal systems. Regardless of a homes amenities energy efficient electrical systems are an absolute must have to the distinguishing buyer.
Let’s keep in mind that much of the information regarding both of these topics have literally been inundating the information super highway and web savvy home buyers have been paying very close attention. Much of their decision making is based purely on common sense values in that why would you purchase home “A” that has all the most common amenities when home “B” can generate either its own electricity or heat or both? Considering that these home upgrades come at a significant cost to the seller, you still must keep in mind how the buyer views them and when averaged out across the number of years these systems are warrantied the numbers are very surprising and quite acceptable. The current events that are also very popular in our present time which also come with a very high sense of emotion tied to them for most also play into a buyers decision making processes e.g. The Gulf Oil Disaster and our need to make energy changes a reality.
The average homeowner who does purchase PV solar systems will buy a system of 4kw which costs approximately $10,000 per kilowatt installed and will generate an average of 14.52 kWh per day. The cost of this particular system comes to $40,000 but once you factor in State and Federal grants, rebates or other incentives the total cost comes in at around $18,000. This same system carries a manufacturers warranty of between 25 – 30 years so assuming a 25 year life, this system averages out to $60 per month over its lifetime making it extremely affordable. Solar thermal systems which will heat the air or water offer even better monthly costs with much shorter periods of payback but regardless which of these systems have been installed they both offer incredible cost savings to the potential home buyer.
Incredibly, these home values in the eye of the buyer are greatly increased making them irresistible as was demonstrated by Amy Levin, a realtor who completed a gut renovation of a home in Washington, DC. She had an appraisal done which came in at 10% higher than comparable homes in the area and interested buyers made offers that exceeded her green investment costs, even though the house wasn’t listed. People wanted to rent her house, even though she built it for her own residence. Based on this, realtor’s and hard money rehab lenders can now get on the clean energy band wagon with a renewed sense of greatly improving not only their sales but also helping to get our economy moving and helping to create hundreds of thousands of clean energy jobs nationwide!