Thread by @EfficiencyLast

RESIDENTIAL SOLAR HAS VERY LITTLE RESALE VALUE.

And it makes economic sense. There is no market mechanism to value the counterfactual.

We talk to people who WISH this were not true, but wishes don't change facts.

Marketplaces find confidence in mathematics and comparables.

eBay is a simple example. If you ever want a starting point in determining value, check sold items.

In residential real estate a common comparable is cost per square foot.

I now know a number of people who have had solar, sold their houses, and received no premium for their solar systems.

Basically, they paid for solar systems that the next owners got for free.

Here's the most recent conversation I had with homeowner GARY who finally sold his house this fall after trying in vain to recapture some of the value he created...

On Tue, Aug 6, 2019, 7:15 PM Ted wrote:

Hi Gary, did the book help?

Are you selling your house?

Did you get Solar??

Does that help generate interest, cause confusion, or a little of both?

On Tue, Aug 6, 2019, 7:29 PM Gary wrote:

Yes the book was very helpful. I sealed the attic and installed the radiant barrier. I got the house within a degree by adding reflective curtains on the west windows. We also determined the intakes were connected to the soffits using an

IR camera.  Had to pull up carpet and saw through the floor to fix it. One intake didn't work at all. Friggin builders. 

We got solar and air source heat pumps and water heaters. The whole thing ends up costing $23 a month RGE hookup. I tried to get the local media interested

but no one cares.

Yes we're selling and moving to Utah. Our daughter lives there with our grandkids.

The HVAC, solar and energy upgrades mean nothing to home buyers. All people are interested in is kitchens and bathrooms and staging.

Thanks for all your counsel and friendship over the years.

So, this guy turned his house from basket case to tight, comfortable, AND NET ZERO, spent NEARLY A YEAR trying to get a premium, then sold it for exactly what his propane burning neighbors have been getting for their homes.

Here is the last bit:

On Sat, Oct 5, 2019 at 5:55 PM Ted wrote:

Hi Gary, who did you use to install your solar?

Were you happy with them?

How about your heat pump and water heater?

Thanks!

Date: Sat, Oct 5, 2019 Gary wrote:

Qwik Solar, very happy

Bosch air source heat pump, its awesome

Mitsubishi hyper heat mini split in the addition, awesome 

The water heater is a State heat pump I got it from VP supply. Again awesome I got a 66 gallon unit.

The solar provides enough energy for the heat a/c electric and water for the year. It’s a truly carbon neutral house.

My electric bill is $22 a month for the hookup. 

Thanks for all your help and inspiration over the years to make this a reality. 

Tomorrow I am moving to Salt Lake City. I will build another house in the mountains with the same technology.

On Tue, Aug 6, 2019 at 7:49 PM Ted wrote:

CONGRATS! That's awesome!

Yeah, HP not valued because the counterfactual can't be seen.

Try our calculator, if your bills are only $22 it'll show present value of monthly Delta to average. Leave report on kitchen table for showings.

energysmartohio.com/all-electric/e…

Conclusion: Until Zillow and Utility Companies make this data readily available, value will remain opaque.

We need a way for markets to recognize and free the present value of these counterfactuals.

Right now it is held prisoner behind locked doors.

Addendum:

https://twitter.com/EfficiencyLast/status/1207468459761840128?s=19