As California take's away the Buy-Back from Solar Owners, Other States Bound to Follow Suit
It's been one of the best reasons to get solar, the Buy Back! In the very beginning is was 1 to 1, but now we're seeing California paying only .08 cents on the dollar. So why do Multifamily Owners needs to get up and take notice?
Firstly, many Multifamily owners are groups, companies, syndications, with investors and large bank loans. This weight literally prevents anyone from saying yes to making large investments that won't pay off for many years to come.
Secondly, if the current ownership is a 3, 5 or 7 year hold, there's a good change they're working in thin margin and trying to get maximum profit during this time for their investors and themselves as they probably doing a value add that in no way shape of form left any room for the costs off adding solar.
Should Multi-flippers (short term value add) consider adding the Capex needed to include solar in their investment and will the marketplace (both sellers and next in line buyers) recognize this as a literal profit center.
One of the main barriers to making the expenditure is the payback period.
To counter that problem companies like BPI install the solar and finance it. This leaves the question, now there's a growth on the property improvements, what are they called, what will future possible buyers and lenders, think about having this on the building, having the outside debt that runs with the property, etc.
Disadvantages of solar energy
Solar doesn't work for every roof type.
Solar isn't ideal if you're about to move.
Low electricity costs = low savings.
Upfront costs can be high.
Solar panels don't work at night.
Solar panels sometimes contain toxic metals.
Finding the right installer can be a challenging process.
Advantages of solar energy
Significantly reduces energy bills. ...
Cheap and easy to install (and getting cheaper all the time) ...
Low maintenance costs. ...
Reduce your impact on the environment. ...
Improves your energy security and independence. ...
It helps your green credentials and CSR. ...
They are silent and space-saving.
Lending issues are, in the past, a solar panel wasn't considered a permanent fixed piece to the property (personal items) but they are, which means they are owned by the first lien, however, they are leased or being financed by the solar company, like BPI.
Then, what about the condition of the panels and the roof, who determines these and what value do they add/subtract? The expected economic life of panels was 20 years, what happens when the end of life is reached?
So you can see there's many questions about adding this to you Multifamily, if you need to know more you can contact Claire Hobday at www.bpi-power.com Claire@bpi-power.com 707-294-8382 Tell her Kurt from MultifamilyRealEstate.com referred you for VIP treatment.
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