Solar power is renewable, sustainable, and bountiful in Florida. If you are planning a real estate project in Florida, it might be important to consider including solar systems in the homes. In the US, there are millions of homes using solar power in one way or another. The benefits of using solar power, especially in a region such as Florida are numerous. Here is a list of some of them:
Increase the Value of the Home
Various studies have found that solar power helps to boost the value of homes by an average of 10%. Not only do they increase the value of a home but they also make it easier to sell a home. A major reason why buyers seem to prefer homes with solar systems is that such systems eventually pay for themselves.
Solar systems pay for themselves by reducing or eliminating the power bill. Over the lifetime of a solar system, a homeowner can reasonably expect the system to pay itself back up to three times the initial cost. Some homeowners might feel that they will not live in a home long enough to see its pay for itself.
However, that argument is unimportant because a home’s value will rise once you install a solar system. As a result, the home will sell for much more and it will sell faster. It ensures that any initial cost invested in the system can be recovered upon the sale of the property.
The Home Value Increase is Not Taxed
In Florida, there are tax incentives meant to drive up the uptake of solar power. One of the incentives is the property tax exemption. The exemption ensures that once a solar system is installed in the home, the benefit of the system will not be included in the valuation for purposes of taxation.
The exemption means that you will get more for the sale of the home without having to pay more taxes. In Florida, the exemption is 100% for all residential solar systems. Depending on your locality, the municipal authorities might also offer you further tax exemptions.
Picking the Right Financing Option to receive all the Benefits
In Florida, you can opt to own the solar system or lease it. However, leasing a solar system comes with some downsides. For instance, a leased system is not considered as property since ownership is by a third party. As a result, lenders such as banks, and the FHA will not include a leased system is the property assessment. Besides that, the lease payments are added to the debt-to-income ratio.
Additionally, the lessor solar company has to provide proof of insurance to cover any damage to the mortgaged property. Depending on the specific location, a leased solar system sometimes leads to higher property taxes. In general, a leased solar system leads to more paperwork and additional costs compared to a solar system that is owned by the property owner.
It is good for the Environment
Global warming is an issue that affects everyone, no matter where you live. By using solar power, you are helping to reduce your carbon footprint on the earth. While a single person might not seem to make a difference, millions of people using solar power do have a major impact on greenhouse gas emissions.
Using solar power is good for the environment and good for your property. There is no reason why you should not use solar power, especially since there is no downside.
Eric Maina / July 2019
Content Writer / Allstar Solar Partners