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SOLAR - How REALTORS and
Investors Use it to Their Advantage
L
®
ately, I am sure you have heard the word
solar mentioned often. With the rising
costs of electricity (raised at least once per
year), it isn't a surprise that more and more
interests in the solar industry are trending on Twitter
and Google search feeds. This past summer homeowners with non-solar homes reported their outrage
and concern due to their electricity bills pouring into
the $200-$600 range. And it's only going up.
— this was the most common surveyed response for home buyers in
2014. And it's true. If a homebuyer
does not buy a home with solar on
it, the odds of them getting it installed after the fact, are especially
high in inland areas and areas
where there are larger cooling and
heating consumptions.
Energy efficient and alternative energy homes are
now being manufactured by developers looking to
get ahead of the curve on the ever-booming industry. "Why buy the house that doesn't have solar on
it when I can buy one that comes with it, installed
and ready to use when I move into my new home?"
When presented with the option of solar or no solar
This essentially presents a great
opportunity for REALTORS® and
investors. Investors are quickly realizing the capital gain from their
solar investments. With a very
small percentage of homes (under 5% nationwide) having solar,
there are still
government
incentives in place to incentivize
property owners to help alleviate
the dependency on fossil fuel by
incorporating renewable energy.
By Dave Franecki
These incentives are offered on
the state and federal level, with
many states maxed out already on
the state rebates. This has helped
to increase solar installations by
40% in the last couple years and
with the 30% federal credit dissolving in 2016, it's no wonder
there is a sense of urgency.
Investors have multiple options:
1. Buy and Hold #1: Buy the property, purchase (not lease) their solar system for the home.
Collect 30% federal credit and move in and enjoy
the benefits of their solar system saving them
money right away.
2. Buy and Hold #2: Buy the property, purchase (not lease) their solar system for the home.
Collect 30% federal credit and rent out the property. They are the ut ility provider now, essentially, and can charge their tenant the amount they
choose, for the use of the electricity or raise the
asking price for the rent to include electricity.
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