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Solar, home value / ROI?

Discussion in 'Tesla Energy' started by LakeForestM3, Jan 4, 2020.

  1. LakeForestM3

    LakeForestM3 Member

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    Hi everyone,

    I'm considering installing a solar system. I love the idea of true energy Independence and super low carbon footprint. My question to those of you who have done it is:

    Did you find that the value of your home appreciated equally, or more, than the money you spent purchasing the solar system?
     
  2. Merrill

    Merrill Active Member

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    Honestly I did not do it for any of that, not have to pay Pacific Graft and Extortion more money was my main concern. Also using the sun to get some of my electricity was another factor.
     
  3. nwdiver

    nwdiver Well-Known Member

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    PV Value
     
  4. LakeForestM3

    LakeForestM3 Member

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    Not sure I understand what this tool tells me..... I'm trying to understand what, if any, appreciation my home might experience if I was to install solar. I *think* the tool you mention shows me how much money I can "make" by making my own power?
     
  5. nwdiver

    nwdiver Well-Known Member

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    That's how the API determines appraised value. Actual market value will vary by location but if your system will produce $10k worth of electricity over 12 years it's at least worth $10k.
     
  6. mswlogo

    mswlogo Well-Known Member

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    It’s a little tricky to measure that but this site says it adds on average 4% to the value of your home.

    Here's How Much Adding Solar Panels Will Boost Your Home's Value

    4% of my home value would not cover what I paid. Maybe 3/4 of it.

    But for my installation the ROI of breaking even is about 6.5 years. It’s quicker with incentives. After 6.5 years I’ll actually make a small profit for 3.5 years more.

    So if I sold my home after 10 years I would pocket the profit plus 4%. If I sold it the day after installation I would have lost 25% of the cost to install.

    Generally, forget resale value other than it will add value. As long as you don’t see moving sooner than say 3-4 years, just do it. You’ll love it. Check for local incentives. Get several prices, they vary a lot. Read the fine print on warranties.

    You also could factor in if I invested that much money even conservatively, I’d be better off investing it. But it sure feels good going green. And you have factor in the value for the common good. Similar to buying a Tesla is not the most practical way to save money but it sure feels good not spewing out fumes and using Solar to power it (which isn’t free).

    Rule of thumb is Solar cost approx $0.08 / kWh. If you amortize it. Compare that to your cost of electricity. Which will influence the added value to your home. It doesn’t pay in some locations. It does for me in MA because electricity cost $0.26 / kWh.
     
  7. Akikiki

    Akikiki A'-Lo-HA ! y'all

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    Utility bills where I live range from $200-$500+ a month. My required monthly grid maintenance fee is $ 25/$300 a year. I just refreshed my system before the best tax credits expired. My break even point date is about 6 years from now. I produce about 50% more than I use. Anyone buying my home will be grandfathered into my Net Metering Agreement. Virtually no electric bill for as long as they own the house. How much more will that make my home worth to someone buying it than my neighbors that have no PV?
     
    • Like x 1
  8. jjrandorin

    jjrandorin Moderator, Model 3, Tesla Energy Forums

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    No website is going to give you this answer nearly as accurately as using the "old school" method.

    Old school method = talking to a human being, in this case, a real estate agent who works your neighborhood (lake forest, CA). That will be the single best way to find out if solar will increase your house value, and if so, how much.

    Contact a local real estate agent for Lake forest, or, do searches on a real estate search engine like redfin for homes with solar and without in your neighborhood. Things like this change from zip code to zip code, depending on how desirable offsetting electricity is, how hot it is where you are, type of neighborhood, how large the system is in offsetting usage of the home, etc.
     
    • Like x 1
  9. LakeForestM3

    LakeForestM3 Member

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    Thanks everyone.

    Another question: Who uses their solar system to charge their Tesla's?

    After I got my Tesla, my daily use (on high mileage days) sits at about 53 kwh and that's on a cool SoCal winter day. If I was to try and size a system to be able to handle a "worst case" / highest usage scenario, I think it would look like this:

    Highest use day in 2019 was during August when I ran the air a lot. That day, I used 29.95 kwh.
    The net additional consumption during winter, after I got my Tesla, is 50 kwh. This, however, was not a completely drained car battery so I suppose I could assume something more like 75 kwh since that's the car's battery capacity?

    So, absolute worst case is 75 + 30 kwh = 105 kwh/day.

    I am skeptical about whether I can find a solar system which could produce this much power power per day, and still fit on my roof.

    The research continues.....
     
  10. jjrandorin

    jjrandorin Moderator, Model 3, Tesla Energy Forums

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    You will be limited in size by your roofline, and by a 12 month average of what you have used before. If you just got the tesla, you will have to show them the new usage and it will be used to estimate size. Utility interconnect agreements normally dont want you to generate more than you use in a calendar year, and you dont have a year with the tesla.

    You use the solar to offset some, or all of your energy usage, including your car. Some people can offset their entire car charging, some can only offset part of it, depends on many things. In most cases, offsetting even part of it is worth it.
     
    • Like x 1
  11. charlesj

    charlesj Member

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    As indicated perhaps, it depends on what a buyer is willing to pay? Buyer may not have an electric car to charge. If the system covers 110 of annual usage without car charging, then for that buyer it would be like he dumped x$ up front and getting the price of electric usage free indefinitely.

    I am starting year 9 in a few month, break even point. Then, money in bank.
     
  12. Lloyd

    Lloyd Well-Known Member

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    I recently sold my home. I believe I got my asking price partially due to the solar installed. EV enthusiasts with two Tesla's bought the house with all of the charging infrastructure included.
     
  13. Akikiki

    Akikiki A'-Lo-HA ! y'all

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