4 Benefits of Solar in Real Estate
The use of renewable sources of energy has been on the rise, not just in Kenya, but globally. Solar energy has been one of the most utilized energy sources for both industrial and residential real estate. Here is why you should consider investing in solar energy in your property
- It’s cost effective
Solar energy offers real estate property owners and managers an exceptional opportunity to boost cash flow by reducing utility expenditures, increasing rent, and increasing common area maintenance payments.
The precise amount of saving on utility expenditure is dependent upon
- Electricity consumption
- Solar energy system size
- Whether you purchase or lease your system
- Direct hours of daily sunlight
- Size and angle of roof
- Local electricity rates.
The solar energy generated will power commonplace household items such as lights, elevators, and water pumps, to name a few
- Increased home value
Many homeowners, buyers, and appraisers know that the installation of solar panels and solar batteries can increase a property’s market value. In fact, one study estimated that solar installations increase a home’s resale value by up to 4.1%.
The precise market resale value of your property may be affected by factors such as:
- Geographic location: Different communities experience different electrical costs (and higher electrical costs result in greater value from your solar panels). Additionally, geography can influence the amount of sun exposure you get, as well as the social benefits of installing solar power.
- Local solar installation prices: Another geographic factor is the cost of getting a new system in your area. If a buyer would save money by purchasing a home with a system already installed, it will make your home that much more valuable.
- System output: A larger system with more energy generation will provide more added value.
- System age: If you have an older solar system, you’ll need to account for depreciation. Older systems won’t add that much value to your home when you sell, because there’s a higher chance the buyer will need to do repairs or replace parts sooner.
- System replacement value: Along the same lines as system age, how expensive or difficult parts of your system would be to replace affects the added value of the system overall.
- It works everywhere
As indicated in the image above, most of Kenya’s photovoltaic output is above 1,534 kWh per year. To put things into perspective, the usage per capita is about 143 kWh. So, whether in Nakuru, Malindi, Nairobi or Kisumu, the energy potential of solar output is tremendous so why not take advantage of this free source of energy.
- Impacts the environment positively
Each kilowatt-hour (kWh) of solar that is generated will substantially reduce greenhouse gas emissions like CO2, as well as other dangerous pollutants such as Sulphur oxides, nitrogen oxides and particulate matter. Solar also reduces water consumption and withdrawal.
Additionally, because buyers are more eager to support social and environmental issues, pre-installed rooftop solar panels could be a wonderful way to attract customers. Developers can take advantage of the opportunity to install rooftop solar panels in often frequented areas.
To learn more about the advantages of solar in real estate, get in touch with us today.