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rooftop solar and real estate

Page history last edited by Andrew Alder 3 years, 3 months ago

Probably an unpopular essay

 

I love solar power and hope to install PV myself in the fullness of time.

 

But there has been a fascinating conversation at 

 

https://www.quora.com/How-much-of-a-factor-are-installed-solar-panels-in-a-home-buying-decision-and-how-important-do-you-think-this-will-be-in-the-future

 

and as you need a Quora account to even read it there, some of the highlights here.

 

My answer is, it's generally a negative in Australia at present.

 

My reasons? There are three possibilities:

  • The buyer wants solar, and would prefer to have it already installed.
  • The buyer wants solar, but would prefer to install it themselves.
  • The buyer doesn't want solar.

 

In the first case it's obviously a selling point.

 

In the other two, it's a negative. And those two categories are both likely to grow as more and more people discover that solar has its drawbacks.

 

The drawbacks?

  • Roof maintenance is made more difficult and expensive.
  • Building improvements are made more difficult and expensive.
  • Some installations have been shoddy, and it's very hard to tell these from the others.
  • Solar panels are getting better and better. That means, old ones don't work as well as new ones.
  • Many installations are under finance and/or grid connection contracts.

 

Yes, there's more to this than you might think!

 

Real estate agents generally make a point of saying in their advertising that a property has solar power. And why not?

  • The potential buyer will find out anyway. Those that don't want it are a waste of the agent's time.
  • The seller expects it to be mentioned. They want it to be seen as a big plus, vindicating their decision to install it.
  • It is in the interests of both agent and seller for the potential buyer to see it as a plus. So implying this is a good thing. As I said, they'll find out that it's there anyway. No point  trying to hide it!

 

If you are prepared to write off your investment in solar as a selling point, then it may be one.

 

But if you are hoping to recover your investment in an increased sale price, forget it. Talk to a real estate agent before doing it if that is your expectation. Preferably, talk to several. And bear in mind, they want your business. They will tend to say what you want to hear.

 

So also have a look at what is on the market. Compare the prices with and without solar, and the cost that the installation represents. Isn't that basic homework? Ask the agents, how has the solar system affected the asking price?

 

I predict that you will get a rather rude shock. Better now than later.

 

 

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