To Go Solar or Not To Go Solar? Three Factors to Consider When Greening Your Home

In celebration of the recent Earth Day, we decided to take a look at solar power for the home.  At one time, the idea of adding solar panels to a house was something only “other people” did. In other words, green people. Green people who had money to burn. High initial costs and unsightly designs were enough to turn people away. Not even the promise of greatly reduced electric bills could sway the unswayable. But yesterday’s novelty is becoming a norm. Solar panels can be found from coast to coast in America—and throughout the world for that matter. Growth in 2012 in the U.S. solar market measured a 76 percent increase from 2011, according to the U.S. Solar Market Insight report from the Solar Energy Industries Association.

Is 2013 your year to go solar? Here are three recent developments to consider before making a decision:

1. Why Buy When You Can Rent 

A 27 percent decrease in installation prices in 2012 undoubtedly pushed growth along. Also a factor: the exploding popularity of third-party-owned solar.

Also known as leased PV systems, third-party-owned solar “delivered more than $938 million to the California economy in 2012,” according to the PV Solar Report. “The single-year record means that California third-party-owned solar generated about the same amount in 12 months as in the previous five years combined. The third-party total represents 74 percent of the state’s 2012 home solar market.”

With third-party-owned solar, a provider installs and maintains the system and the homeowner essentially pays rent on it every month. Monthly payments are reduced (though not by as much as they would be with a system that is owned outright). But, there is no huge upfront equipment cost. That could mean a savings of $20,000-30,000 for a typical size home, depending on the system.

2. Owning Still Has a Pay Off

The knock on solar has often been that it is too costly to install and takes too long to recoup the initial investment. For many homeowners, that is true. For others, the break-even point is a secondary concern. (Read one family’s story of how they took the solar plunge and what they learned in the first year here. Their home is expected to pay for the PV system they installed in 7.3 years.

The break-even equation takes into account such factors as typical energy usage, climate, size of home, size of system, and available tax credits and incentives—and can vary greatly. Visit the California Energy Commission’s Solar Advantage Value Estimator to calculate costs of your system.

3. To Panel or Not to Panel

If you’re a fan of modern architecture, the flat roofs that were once a practical necessity for solar panels were a bonus. Today, with the right orientation (south-facing is best), homes can be designed in nearly every style and still accommodate solar panels.

But the future in PV systems for homes may not be solar panels at all.  One trend is in building-integrated photovoltaics (BIPV) , which incorporate solar properties right into the building materials for a home, turning a typical roof, skylight, or home façade into a source for solar power.  The advantage for homeowners is a more streamlined look, but also the potential for reduced construction costs if BIPVs are used to replace typical building materials.

Have you been thinking about taking the leap to solar? Take a look at some of these amazing homes you might never expect to be powered by solar.

You would never know this San Francisco beauty has a solar electric system, judging by its historic and formal Beaux Arts architecture by architect G. Applegarth.



34 Presidio Ter
San Francisco, CA 94118
$8,980,000

Wim Wenders & award winning architects Touraine-Richmond subtly integrated a solar power system and automated solar shades to help keep this gated, one-of-a-kind architectural space in the Hollywood Hills efficient.

6365 Ivarene Ave
Los Angeles, CA 90068
$3,495,000

Do not hesitate to contact me at (415) 832-9151 for any real estate purpose you may have.

Janice Lee
415-832-9151
International President's Elite
Top Producer, Realtor
Investment Specialist
janiceflee@gmail.com
www.JaniceLeeHomes.com
DRE #01720205