Revenue from Solar? RECs income in Maryland?

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Revenue from Solar? RECs income in Maryland?

Ryan VanPatten
Investor · Herndon, VA · Member since 2013 · 56 posts · 7 votes

Hi,

I wanted to see if anyone has placed solar pv on rental properties?

If so, what was your motivation? Do you advertise this feature and/or is it a large driving factor to attain particular tenants? How much do you make from selling RECs?

Also when selling, does solar add a premium?

Thanks for any feedback or stories!

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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
10y

Solar typically lowers the value of the property in the DC area. More so with leased panels verse owned ones. Less so when they are on the back of the house as opposed to the front of the house. Less so in DC proper, more so in the suburbs.

Energy costs in this regional are pretty moderate, so for most people the aesthetics of a house are more important than the small energy savings.

On a typical median priced home in Montgomery or Fairfax County you would see about a $20k drop in value by adding panels.

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    10y

    Solar typically lowers the value of the property in the DC area. More so with leased panels verse owned ones. Less so when they are on the back of the house as opposed to the front of the house. Less so in DC proper, more so in the suburbs.

    Energy costs in this regional are pretty moderate, so for most people the aesthetics of a house are more important than the small energy savings.

    On a typical median priced home in Montgomery or Fairfax County you would see about a $20k drop in value by adding panels.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    1Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    10y
    If your reasoning is purely financial- Washington DC would be the only place where the return on investment may cause you to consider panels.
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  • Account Closed
    Washington, DC · Member since 2012 · 57 posts · 34 votes
    9y

    SRECs are very valuable in DC. In Virginia they are basically worthless. Thank your politicians. You can get around $520 per megawatt right now in DC and I think about $4 per megawatt in VA (I think this was the last quote I heard). But there are other things to consider like @Russell Brazil says. And like he says, solar panels are very ugly which can decrease the value of a house. I have a property in DC where the roof is essentially flat and you could never see solar panels on the roof. That property has an increased property value from the panels because the house aesthetics are not affected at all and the savings and income generated add value. So, like everything in real estate, there is no set rule and you just need to analyze your particular property and the different variables to determine if it makes sense for you. 

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  • Ryan VanPatten
    OP
    Investor · Herndon, VA · Member since 2013 · 56 posts · 7 votes
    9y

    Thanks for all the feedback.  I figured there wouldn't be much in terms of cashflow or direct profit from solar on rental units, but I wanted to ask the community.

    It's interesting to hear that home values decrease so much with solar.  I hope this mindset changes sooner than later.

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