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!
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.
If your reasoning is purely financial- Washington DC would be the only place where the return on investment may cause you to consider panels.
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.
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.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.