Tesla’s solar roof has green-living aficionados buzzing. Elon Musk announced on May 10 that their innovative and beautiful solar roof panels were ready for consumer purchase. The new tiles fit seamlessly with today’s residential architecture, making them an attractive alternative to bulky solar panels, and have options for different finishes as well as the portion of roof to be made up of solar tiles. But if you’re hoping that this hot tech will give your real estate investments a boost in value, proceed with caution. SetSchedule CEO and real estate investor Roy Dekel says that since solar technology generally takes a long time to pay off, the benefit to those seeking to turn a quick profit is limited. Flippers Beware: Skip This Upgrade At $21.85 per square foot compared to $1-$5 per square foot for asphalt shingles, the solar roof is a pricey investment, same as all home solar technology. Energy conservationists are quick to point out that much of that initial cost will be recouped in the form of lower energy bills, but that isn’t true for an investor who doesn’t plan to live in the residence. The best you could hope for is to bump up the asking price of your home and use the lowered or nonexistent energy costs as a selling point, but to do so is risky. While it’s true that some home buyers are looking for properties that have been upgraded with environmentally-friendly or sustainable improvements, the solar roof is new enough that it may be difficult to convince a buyer that it’s worth the higher up-front price tag. And if attempting to do so delays the sale of a home you were hoping to “flip” quickly, then you’re losing money for each extra day the property sits on the market. Outside of a few very select high-end communities in California, where living “green” is a lifestyle, there isn’t enough of a market for homes outfitted with a solar roof to make the investment worthwhile. Ultimately, it’s unlikely that an investor hoping to “flip” a home quickly would be able to make a profit off of the addition of a solar roof. Nice to Have For Residents, But Not a Good Investment The one place where the solar roof could pay off is for homeowners who also treat their residence as an investment. If you’re looking to buy a property and upgrade it over time, while living there, then you will personally enjoy the benefits of not having a power bill to pay every month, which could offset the cost to upgrade your roof. However, there’s still risk involved: If the technology becomes more mainstream and less expensive, as solar technology has been, then a solar roof may not be as much of a selling point in twenty years. Another concern is what kind of maintenance the roof would require. Because the solar roof hasn’t been on the market yet, there’s a lot still to discover about what sort of maintenance it will require. Since solar roofs are a relatively new invention, there’s little information available about how long they will last and what sort of damage they will sustain due to hail, debris, or other wear and tear. Tesla hopes to offset the maintenance concerns by offering a lifetime warranty, but that doesn’t take into consideration the potential hassle to have tiles repaired or replaced. Homeowner’s insurance offers some protection if a storm results in damage to your new roof, but the cost of the solar tiles would require most homeowners to bump up their coverage limits considerably – another out-of-pocket expense that serves to diminish the return of your solar roof. Additionally, adding such an expensive upgrade to your property has the potential to drive up your property taxes as well. Not a big deal for flippers who will unload the property quickly, but a detriment for homeowners who are playing the long game when it comes to their investment. Other Ways to Go Green Regardless of the potential pitfalls of this particular invention, green energy technology is a trend that is only gaining momentum. However, as we’ve seen with other types of sustainable developments, it takes awhile before the price begins to fall. Tesla has overcome one obstacle – the unappealing aesthetics of much energy-efficient design – but it remains to be seen whether solar roof tiles will become more affordable in the future. In the meantime, there are plenty of other options to make a home – be it your primary residence or an investment property – more energy efficient and appealing to those seeking a more green lifestyle. Perhaps the biggest improvement for lower power bills is to replace or upgrade the insulation of a home. A good roof – solar or no – will help regulate the temperature of your property and use less energy. Similarly, an upgraded AC unit will work more efficiently, contributing to lower energy bills. A property with a swimming pool – common in California – needs an efficient and properly sized pump to keep from wasting energy, as well. Install a timer for additional energy savings. Even a simple swap to energy-efficient appliances like clothes dryers can make a big difference – appliances account for roughly 15 percent of a home’s energy consumption. The new solar roof offered by Tesla could be a game-changer when it comes to green technology, but successful investors must always be considering the ROI of any investment they make. For now, better to watch the game from the sidelines. Contributed by Caitlin Coakley Beckner SetSchedule has changed the way real estate marketing is viewed, by changing the way REALTORS® access clients and listing appointments. SetSchedule is a “first of its’ kind” exclusive membership based model that provides verified appointments, marketing tools, and elite invite-only networking events for its members. By blending new technologies, and thought processes with proven success methods SetSchedule had incurred record producing results unseen in the industry. Learn more at setschedule.com. To learn more about Roy Dekel’s and SetSchedule’s foundation work www.roydekel.org
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