Redoing a roof - any thoughts on installing solar and/or EV charging?

Question

Post-Milton needing to replace single family home roof on our investment property. In the process, considering installing solar panels. My monthly electric is currently $130-$200. And we’re curious about also potentially installing an EV charger as part of this for an extra perk for guests/tenants.
Any thoughts, experience, suggestions on this?

Adam Bartomeo · Answer

You won't be able to get the solar credit if it is not your primary residence. The payback period is around 30 years, but the solar panels life is about 20 yrs. It is difficult to recapture the electrical savings from the tenants. An EV charger is an inexpensive investment but out of the 300 properties that we manage only 4 have EV's. I am not sure how many renters in your area have an EV.

Russell Holmes · Answer

I agree with other responses here, and to piggyback on them it seems everyone plans to 'own forever' when they sign a 30 year lease or finance term, and then things change (job, relationship, life events, etc) and folks try to sell the property with 25-28 years left.

Banks do not look at power bills when determining DTI, but they will look at a solar loan/lease. You could have a $500/mo power bill and it will not be included in debt to income ratios, but a $300 solar payment will be considered for DTI. Many buyers look at houses at the very top of their budget, and therefore the solar lease can blow their approval even if they would have gladly assumed the terms into their name.

Additionally, paid off solar can really only add value to a house in markets where it is the norm to have paid-off solar AND houses that sell for more because of it. Appraisers are not going to add value for something that is financed or leased, and if you're the only house in the radius of comps with paid off solar they won't have any comparisons to derive value from it.

In the end it is really only advisable to pursue if you're going to own the home forever....while it is nearly impossible to determine if you'll own forever or not regardless of present circumstances.

Alec Boe · Answer

I would typically advise against solar. From the homes we manage here in Central Florida any benefit of your utility bill is negated by the financing of the panels. You actually end up making the tenants utility bill go down while you pay what the difference is had there not been panels; to a bank. Not to mention, solar panels can also be a cause of roof leaks and require regular cleaning to maintain some level of efficiency which is not great to start with while also getting worse over time. In summary, I have only seen them be more trouble than they are worth currently. Here is a map showing the solar efficiency/capabilities you can expect across the US. Florida is just slightly above average.

Peter Mckernan · Answer

Not sure about Florida, but my experience with solar.. 5 years or more ago, buyers would take over leased panels and not have any issues with getting a solar lease from the owner prior to them. The reason I say this is to lead into the answer from your question.

There really is not a huge upside in getting solar unless you pay the solar off on the placement. The reason is that there is not a huge recoup on the backend from the sale, sometimes you have to pay it off to actually get your price. Also, solar companies typically continue to raise their fees in the contract each year it is owned. So year 1 you are paying 89.00 a month lets say, and by year 19 you are paying 350.00 a month as an example.

The cons eclipse the pros for now on the solar.

Karl Denton · Answer

Solar id be careful with, it can sometimes cause and create more issues then it solves. Id also never lease a system, id own. In regards to having a EV charger, Id seen a lot of people install the outdoor rated ones in their STR and it helps to draw the people that may be renting a EV during their trip.

Redoing a roof - any thoughts on installing solar and/or EV charging?

Redoing a roof - any thoughts on installing solar and/or EV charging?

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