Why Real Estate Companies are Buying Solar for the Properties they Sell
By: Eric Huesca, SEO Content Writer
June 2, 2023
In recent years, a growing trend has emerged within the real estate industry: companies are increasingly investing in solar energy systems for the properties they sell. This shift isn’t simply an environmental gesture; it’s a strategic business decision that offers significant benefits for both the real estate companies and their clients. This article will delve into why real estate companies are making this transition, examining the benefits, the cost savings, and the potential increase in property value brought about by investing in solar.
Happy family holding paper model of house with solar panels.
The Growing Importance of Solar Energy
Before diving into the reasons for this trend, it’s crucial to understand the importance of solar energy in our modern world. Solar power is a renewable and clean source of energy that relies on the sun, an abundant and consistent energy source. With the growing concern over climate change and the depletion of non-renewable resources, solar power has emerged as a key player in the move towards sustainable living and green technology.
Why Real Estate Companies Are Investing in Solar Energy
Several compelling reasons explain why real estate companies are increasingly purchasing solar for the properties they sell.
Increased Property Value
One of the key reasons is that solar panels can significantly increase property value. Multiple studies have found that homes equipped with solar energy systems sell for a premium compared to similar homes without solar. The U.S. Department of Energy, for instance, reported that home buyers were willing to pay more for homes with solar installations, equating to about $15,000 for a typical solar array.
Demand from Home Buyers
There’s growing demand from home buyers for properties with solar energy systems. As people become more environmentally conscious and seek ways to lower their energy bills, solar-equipped homes are becoming increasingly attractive. A 2019 survey by the National Association of Realtors found that 70% of home buyers listed energy efficiency as a key factor in their decision-making process.
Lower Energy Costs
Solar energy can significantly reduce electricity costs. For real estate companies that own and operate rental properties, this translates into lower operating costs, potentially increasing profitability. Even for properties meant for sale, a solar energy system can be an attractive selling point as it promises potential buyers lower energy costs in the future.
Regulatory Benefits and Incentives
Numerous state and federal incentives encourage the adoption of solar energy. These incentives can significantly reduce the cost of installing a solar system, making it a financially sound investment for real estate companies. In some areas, local regulations and building codes are increasingly requiring or incentivizing renewable energy installations on new constructions, making solar a practical choice.
The Long-Term Benefits of Solar Energy for Real Estate Companies
Investing in solar energy can offer long-term benefits for real estate companies. It’s a strategy that aligns with broader market trends and consumer preferences, making it a smart business decision.
Sustainability and Corporate Social Responsibility
Investing in solar energy can offer long-term benefits for real estate companies. It’s a strategy that aligns with broader market trends and consumer preferences, making it a smart business decision.
Future-Proofing Investments
As society moves towards greener energy sources and away from fossil fuels, properties with solar energy systems are better positioned for the future. They are likely to remain appealing to buyers and maintain their value over time.
Potential for Ongoing Revenue
For real estate companies that retain ownership of the solar system, there’s potential for ongoing revenue. Excess power generated by the system can often be sold back to the grid, providing a steady income stream.
Conclusion
The trend of real estate companies investing in solar for the properties they sell reflects the growing importance of solar energy in our society. Not only does solar offer significant environmental benefits, but it also presents a valuable financial investment for real estate companies. It can increase property values, lower energy costs, and align with consumer preferences and regulatory incentives. As the world moves towards a more sustainable future, solar energy will undoubtedly become an increasingly integral part of the real estate landscape.
By investing in solar, real estate companies can future-proof their properties, ensuring they remain attractive and valuable in an evolving market. With the added potential for ongoing revenue from solar power generation, this investment can offer a significant return over the long term.
More than ever, homeowners are recognizing the value of energy efficiency and sustainability, making solar-equipped homes a sought-after commodity. As this demand grows, real estate companies that have already begun to incorporate solar energy into their properties are well-positioned to meet this market need.
Beyond financial incentives, investing in solar power also contributes to corporate social responsibility efforts. Companies that make a conscious effort to reduce their environmental impact are likely to attract customers who value sustainability, potentially enhancing their reputation and customer base.
In conclusion, the increasing adoption of solar power in the real estate sector is driven by a combination of financial, environmental, and market factors. As the benefits of solar power continue to be recognized, this trend is likely to continue, with more and more real estate companies investing in solar energy for the properties they sell. By doing so, these companies are not only making a smart business decision but also contributing to a greener, more sustainable future.
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Solgen Power is a solar energy contractor that sells and installs solar for homeowners. Solgen Power has been recognized by INC. 5000 as one of the fastest growing companies in the nation. Solgen Power has grown nationwide and continues to provide excellent customer service to homeowners.
