Available Statewide

Phoenix      623.806.8806                                Prescott  928.458.7227

Scottsdale  480.347.0790                                Tucson    520.445.8001

Phoenix Energy Products™ • ROC# 256695  ROC# 274637

20819 N. 25th Pl., Suite B-107 • Phoenix, AZ 85050

Copyright ©1978-2013 Phoenix Energy Products LLC DBA PEP Solar, all rights reserved

Installing Solar Since 1981 In Arizona

Privacy Policy & Terms Of Use

FOLLOW US                     Bookmark

Unleash Your Power-Ready Set Go Solar!™

Flash Menu

Solar Works As An Investment Saving You Money For Other Things

A solar power system is without a doubt the best, most cost-effective way most homeowners and businesses can contribute to a healthier, more sustainable environment. It is also a proven way to save on energy costs if you are currently paying more than $125 per month to the utility company. But did you know that many different studies, conducted by the real estate, home improvement industries, Berkeley University, and The Appraisal Institute of America, have proven that solar installations give you a better return on your investment than any other home improvement? It's true (call us and we will send you the article).

As we know, real estate markets differ from location to location. Overall, local markets determine the resale value of homes, but some improvements to your house increase its value in any market. It is important to know up front that you need to do some homework if you want to see your home improvement investments result in an increased sale price for your property. Most important, you should consider the different impacts of various home improvement investments.

Whether its Bath, Kitchens and beyond…don’t forget the Solar

Improvements to bathrooms, kitchens and other areas of the home, both inside and out, rarely result in lowering a home's or business’s continual operating cost. Investments in cosmetic improvements are only worth additional money to people who will value them. The proven, incontestable monthly savings inherent in a solar system will be important to any buyer interested in savings and real value.

Depending on your energy use, your solar system (when you own it) will pay for itself in 6-9 years, after which you will essentially be "making money" for the life of the system. A common 4kw home solar system for example shows that the installation performs as well as a 10% stock return, with a conservative assumption energy cost will increase 5% annually. The greater the increase in energy costs, the greater your ROI (Return On Investment) will be by locking in your electrical rates today.

9,000 Watt System Savings Example (Mage Solar 30 yr Power Guarantee)   .

Solar Has Value

Long-term studies published in the Appraisal Journal, in July 2011, indicate that home and business improvements that save money on annual electricity costs will increase the property's value by a 20-to-1 ratio. This value ratio will only grow with inflation. In other words, if you are saving $1,000 a year off your electricity bill by using solar power, the increase in your property value is a massive $20,000 (only when you own the equipment - leases are not included). Home buyers choosing between a home that generates free, self-supporting solar power and a typical home that generates thousands of dollars per year in electricity bills will usually make the rational decision, all other things being the same or equal.

In Arizona, increases in assessed property value attributable to solar power systems are fully exempted from property taxes until 2040. When you factor in the incentives and run the figures over the life-span of the solar installation (with the Mage Solar 30 year power guarantee), solar power begins to enter the "wow you can't lose" category. On the other hand, the aforementioned cosmetic upgrades to bathrooms and kitchens and even outdoor landscaping do add to your property's assessed, taxable value, making it less likely that you will recoup these costs when you sell.

It is important that you and your agent communicate these real, tangible savings to all potential buyers. Many people will not even consider energy costs when shopping for a home. Some will simply assume that all houses of similar size and location have similar utility costs. Having your solar installation power the house will be a stand-alone value point to many buyers that will put you ahead of the game and your competition.

Bottom Line - Solar Is Actually An Excellent Investment!

The long-term "Appraisal Journal" studies clearly show that homeowners can profit by making wise investments in energy-efficient technologies, regardless of how long they end up staying in their houses. As soon as the decrease in monthly energy costs exceeds the amount of after-tax mortgage interest financing the solar installation, then there is positive cash flow. This will last as long as homeowners live in the home and business rent out space, and when they decide to sell they will recoup their entire investment.  That's the beauty of owning your own solar system.

Is Solar A Good Investment?

Did you know:

The average person drives 12,000 miles a year with an approximate rating of 20 MPG. This “average car” will use 600 gallons of fuel a year.

An electric car, with solar on your roof, can save you an additional $1800 a year (if prices remained $3 a gallon).