Solar energy today is one of the fastest growing untapped opportunities for the real estate industry. Now more than ever there’s demand for renewable energy sources across different sectors…
and real estate is no exception. From residential to commercial, solar energy is one of the best ways to reduce utility costs, save on maintenance, and increase return on investment. There are also huge opportunities on the horizon for solar marketing to help fill that growing demand.
Advantages of Switching to Solar
Between 2017 and 2018 alone the cost of solar panel installation declined by 11% according to a study from UC Berkeley. Overall, since 2001 the cost of solar panel installation has gone down 10%. Further, Bloomberg New Energy Finance estimates that solar prices will decrease by 60% over the next two decades. By 2040, solar will be less expensive than both coal and natural gas. Currently, for commercial real estate buildings, energy costs consume 19% of total expenditures. Installing solar panels can drastically reduce that number by reducing total energy costs. According to a 2018 report from Solar Energy Industries Association, switching to solar can reduce the energy expenses of a commercial building by 20-40%. Additionally, EnergySage, estimates businesses that utilize solar energy can see their energy expenses go down by as much as 80% in some instances.
Today, Solar Investment Tax Credits are available for businesses that install solar panels. These tax credits will allow businesses to deduct 30% of the cost of installation. This creates yet another huge incentive for commercial buildings to begin investing in solar as studies show, properties that have solar, are able to raise revenues.
Even for residential real estate, that same Berkeley study shows that installing solar panels on your home increases home value by 3.74%. The study also concludes that buyers are willing to pay more for a home with solar capabilities to the tune of $15k on average for a standard 3.6kw system.
Marketing Opportunities for Solar
Commercial buildings today offer a huge potential for energy as some of the most potent platforms available. As just one example, researchers from UC-Davis report that a Texas aerospace company 770,000 square feet of rooftop space, with solar panels, can generate enough energy to power 5,200 homes for a year. The energy generated from that one project would also offset over 47,000 metric tons of C02 and free up 388 acres of land.
With demand steadily increasing for alternative energy sources, solar opens up a world of possibilities not just for real estate, but for marketing as well. As it stands, public perception concerning alternative energy is not quite at the same comprehension level as the scientific community’s consensus on solar. To surmount any public fears or misconceptions about solar, and to create a strong and vibrant market for it, marketing will be crucial. Companies looking to market solar will have a windfall of opportunities in selling solar to the public. Increasing public literacy about energy and the environment is a huge priority not just for businesses and local governments but the international community as a whole. Marketing companies looking to expand into other territories should look heavily at getting involved in solar marketing.
In the coming years, solar energy will be a big presence in the real estate market. Solar is a great investment for both commercial and residential real estate. The prices for installation are only going down and are already providing huge returns on investment. As Daniel Neiditch, president of River 2 River Realty in New York put it, “In an industry where being environmentally conscious is becoming more important and being money conscious has always been crucial, solar power is the easiest way to generate clean energy and excitement at the same time.”
Companies looking to expand solar energy throughout the country will have no shortage of potential. One such company that is currently working to do just that is Solar Fuse. With over 25 years of experience, Solar Fuse is tapping into the solar market and helping to lead the way in creating an economy driven by solar. Acting as a ‘solar broker’ for their clients, Solar Fuse works closely to obtain the best possible deal for those looking to make the switch to solar. With some of the best rates in the industry, state of the art equipment used by experienced professionals, and 3 different purchasing methods, Solar Fuse makes it easy to transition to solar power.