Solar is appearing on more and more rooftops in Illinois. This boom in renewable energy production is likely to accelerate as more homeowners learn about the economic benefits of Solar. Incentives like a Federal Income Tax Credit (FITC) of 26% and Solar Renewable Energy Certificates (SREC) can offset more than 50% of the cost of the system. That system will generate more dollars in clean, renewable energy during its life than the actual cost of the system!
So, how does adding solar photovoltaic (PV) to your home impact its value? If you own the system, this answer is a definite yes. If you lease the system, this answer is a bit more complex.
Owned systems add value is a very measurable way. Simply, the system that you own will generate power, that is worth money, for the life of the system. This adds concrete value to your home, and the website PVvalue.com can put a price tag on your system that you can show to buyers, realtors, and appraisers to demonstrate the value that the installation adds to your home.
If you lease your solar PV, you are likely participating in a solar power purchase agreement. These agreements are great for people who don't have or don't want to spend the money associated with the cost of installing solar PV. The solar services provider uses a site on your home to place panels and reaps the rewards of the tax incentives, future renewable energy certificates, and receives revenue from the sale of the power generated by the panels on your home to the ComEd. In exchange, the solar services provider provides the homeowner with power at a discounted rate compared to the utility, and this rate is typically fixed or predictable in the future as energy cost rise.
Unfortunately, solar power purchase agreements pose some challenges upon the sale of your home. First, the contract is between you, the current homeowner, and the solar services provider. In order to transfer this contract to your homebuyer, you will have to either buyout the system from the provider ($$$$) or convince your homebuyer to assume the lease and hope they meet the credit standards of the solar leasing company. Before you market and sell a home with a power purchase agreement, you should contact your solar services provider to determine what their process is for transfer and how much the system will cost to purchase. Sound complicated? Don't worry, I'm here for you.
In Illinois, purchasing your PV system up front and reaping the rewards of the FITC and SRECS is always the most economically beneficial model for the homeowner. It also makes selling simpler when compared to selling with a power purchase agreement.
If you're interest in buying or selling a home with solar in Chicagoland, I am the industry expert to trust. I have sold dozens of home with solar and sustainable features. Please contact me for a FREE MARKET ANALYSIS of your home or with questions as to how solar can positively affect your properties marketability and value.
