Bloomberg New Energy Finance predicts that 72 million homes out of 238 million households with access to electricity will use solar by 2023, according to the Builder. Green energy started as a trend and now it has slowly evolved into a must-have element in buildings, especially residential homes. Everyone wants to reduce their carbon footprint and the risk of a climate crisis that could jeopardize life on earth. And while there are different sources of renewable energy like wind, geothermal, hydrogen, and biomass, many people consider solar energy when building a greener home. 

 As demand for solar energy continues to increase, homebuilders will need to expand and develop to meet consumer needs. Ideally, property developers will have to streamline operations and enhance efficiency. Keep reading to learn factors increasing the prevalence of solar energy in residential properties. 

Availability Of Market Demand

Today’s tenants are conscious about their impact on the environment, meaning they are more than willing to invest extra dollars in homes with renewable energy. As a real estate developer, you can take advantage of this untapped market by developing solar energy infrastructure. 

Currently, the global building industry aims to make 60% of their projects sustainable and invest in renewable energy based on the Green Building Trends report. So, by integrating solar energy in residential homes, you’ll be on the forefront of fighting climate change. You’ll also be protecting your tenants from high energy costs. As a result, you’ll attract potential tenants and keep them in the long term.  

Financial Incentives

In addition to attracting tenants, investing in solar panels helps homebuilders enjoy numerous benefits. Typically, property developers who lease or sell solar equipment enjoy tax breaks and other economic benefits. This means homebuilders can boost their profits by leasing solar panels to property owners. 

Homebuilders enjoy incentives, such as solar energy credits, cash rebates, tax exemptions, and federal investment tax credits. All these tax benefits help property owners increase their bottom line. For example, the federal investment tax credits allow property developers to reduce the amount of taxes they owe. According to EcoWatch, homebuilders can claim solar tax incentives as part of their annual federal tax returns. To claim this tax benefit, property owners should have solar panels bought between 2006 and 2021 and installed in their investment property. 

Lower Production Cost And Home Appreciation Value

Other reasons solar energy is becoming more prevalent in residential properties include lower production costs and increased home value. Note that the initial cost of solar systems and installations can be high depending on the size of your panel and location. The good news is, maintaining solar equipment is cheap. 

After purchasing the system and installing it, you’ll spend little to no costs to repair and maintain your solar equipment, resulting in low production costs for about 15 to 25 years. Besides low maintenance costs, solar systems increase property value. Since tenants and prospective homebuyers want energy-efficient homes, you can rent or sell your properties at a higher price than other property developers. 

Solar energy has become prevalent in homes because of several factors. Many property developers choose to install solar systems in their investment property to enjoy tax breaks, like federal investment tax incentives and cash rebates. Other factors boosting the prevalence of solar energy in homes include high consumer demand, low production costs, and increased property value.