Solar panels are a great investment for commercial real estate. There are numerous advantages to purchasing solar panels. One of them, it turns out, is an increase in property value and they also help the environment.
A study by the University of Colorado Boulder showed that commercial properties located in Colorado with solar panels had their property values increased by an average of $5 per watt installed.
Ecological disaster is one of the top three potential threats for humankind according to the World Economic Forum. If a major ecological disaster were to happen, it would lead to a lack of food and water which could lead to numerous deaths. Solar panels are an environmentally friendly option that can provide electricity without releasing greenhouse gasses into the atmosphere. Many companies have installed solar panels to lower their costs and at the same time increase the value of their properties.
The Advantages and Disadvantages of going Solar
A solar panel system isn’t cheap, but it pays off in a variety of ways. Consider these benefits and drawbacks when deciding whether or not to switch to solar energy, and do your study depending on your specific region and environment to determine if it’s a suitable fit.
PROS: Solar panels reduce your energy expenditures dramatically, lower your carbon footprint and emissions, and protect you from escalating electricity rates.
According to the United States, A property with an average-sized solar array is worth nearly $15,000 more to purchasers, according to the Office of Energy Efficiency and Renewable Energy.
Other studies have found similar evidence that a solar system can increase the value of your home. A Zillow survey indicated that homes with solar panels sold for 4.1 percent more on average, and a Lawrence Berkeley National Laboratory study found a $5,911 resale increase per kilowatt of solar electricity.
Furthermore, several jurisdictions provide homes with tax credits and rebates to help cover the cost of solar installation. This can significantly lower your initial investment and result in a higher return when you sell later.
Transitioning to solar energy has no hard and fast numbers.
There are a lot of factors that can contribute to a higher (or lower) return, all of which you should consider as you crunch the statistics and decide whether it’s worthwhile.
Your location will have a significant impact on your solar potential. It will also influence how much a solar addition is valued by buyers, with some places experiencing higher-than-average resale values as a result of solar energy and others seeing lower-than-average.
Larger solar systems generate more energy and are therefore more valued.
When calculating your potential return, consider the average cost of solar installation in your area. It also affects resale value, as some purchasers may determine that purchasing a property that is already set up for solar is more valuable than paying for installation on a home that isn’t.
Cons: Solar power is a renewable energy source and is considered to be the most sustainable form of electricity. However, it does have some disadvantages that need to be taken into account before making a decision.
Solar panels are inefficient compared to other sources of electricity such as coal or natural gas. They are also costly and take a long time to pay off. Furthermore, the sun does not always shine, which can result in energy shortages during off-peak hours. Solar panels vary in price based on the region where they are installed, making it impossible to compare them to other forms of energy.
Going solar has a lot of benefits for you. Consider making the switch if it’s within your budget and reaping both significant energy savings and a significant rise in home value.
For best advice, consider seeking help from a local expert to determine whether going solar is beneficial for your property.
CYNTHIA DAUGHTREY, ESQ.
Westward Advisors – Commercial Team Lead