California’s push toward solar solutions has made understanding solar a necessity for realtors. We understand that navigating the solar industry can seem pretty overwhelming, so we’re here to help. We are a proud member of PCAR, and we’re here to empower real estate professionals with the knowledge and confidence needed to answer all of your clients’ solar-related questions.
Benefits of Solar for Realtors and Homebuyers
As a realtor, you know that financial considerations often top the list of priorities for homebuyers. Solar-equipped properties have become increasingly attractive for a multitude of reasons.
Homes with solar systems offer compelling financial benefits. Studies have shown that these properties can sell for a premium, with estimates ranging from an additional $15,000 in value to 4.1% more on average. Solar energy translates into significant energy cost savings, providing homeowners with an eco-friendly way to reduce utility bills.
Increased Property Value
Solar installations offer immediate financial savings and enhance a property’s long-term value. For every $1 reduction in annual utility bills due to solar, a home’s value can increase by approximately $20.
Beyond financial gains, solar energy contributes to environmental sustainability. It is vital in reducing greenhouse gas emissions, mitigating climate change, and improving air quality. Solar-powered homes align with the growing trend of eco-conscious living, attracting buyers looking for sustainable properties.
The Solar Investment Tax Credit (ITC) offers further financial incentives. This federal tax credit, currently at 30% of the solar installation cost, directly reduces tax liability, resulting in substantial savings. Although the credit will gradually phase out, homeowners who act before December 31, 2032, will save thousands.
California’s grid is unstable and has been for a long time. With the increase in electric vehicles and remote work, there is a higher demand for electricity, which underlines the continued need for solar solutions. California utility companies must pay customers back for the power they produce. Customers are reimbursed through a process called net metering.
NEM 3.0 is the latest iteration of California’s net metering policy. The biggest difference between the new NEM 3.0 and its 2.0 predecessor is the way that customers are reimbursed for the power they produce. Customers no longer receive credits equal to what they pay for electricity. Instead, they are paid based on the utility’s cost to obtain that energy elsewhere, and billing is adjusted according to electricity usage patterns.
Most important to note NEM 2.0 offers a 20-year policy duration and stays with the house. So if a person purchases a home that had solar before April 2023 they’ll enjoy up to 20 years of NEM 2.0 rates.
While these changes might raise questions about the value of solar, we specialize in helping customers save thousands under NEM 3.0.
Understanding the transferability of solar system warranties is crucial when dealing with homes equipped with solar installations. Most solar warranties can be transferred to new owners, but it’s essential to contact the solar company about the intention to sell the home and sign the warranty contract to transfer the ownership.
If you or your clients have more questions about warranties, please contact us. We’re here to provide guidance and ensure that the warranty transfer process proceeds smoothly, offering peace of mind to both buyers and sellers.
Title 24: The California Solar Mandate
Title 24, also known as the California Solar Mandate, is a crucial policy driving the adoption of solar energy. It requires installing solar systems in new residential constructions, upgrades to existing homes, and ADUs. While it applies to most residential projects, exceptions exist for properties with small roofs, heavy shading, or access to community solar systems.
Partner with DC Solar Electric
You play a pivotal role in guiding clients through the nuances of buying or selling solar-powered homes, and we’re here to help. We’ll equip you with the knowledge needed to help your clients make informed decisions about solar energy.
We’re here to support you with:
– Reviewing Solar Contracts for Buyers
– Comparing Costs vs. Utility Rates
– Analyzing Savings vs. Utility Expenses
– Assessing Solar System Value
– Evaluating Existing Solar System Warranties