By Catherine Hope-Cunningham, Member, Columbus REALTORS® Sustainability Committee
People are drawn to renewable energy for one of three reasons:
Fiscal solvency, Ecological/moral considerations, or Independence from utility companies.
Often, it is a combination of the above, but the most frequent reason that people contact me for solar is that they would like to save money. If you have an interest in solar energy and fiscal solvency is your motivation, you should be aware of the timeline for getting a federal tax credit, which may be shorter than you think.
Currently, the federal tax credit for solar is 26 percent through Dec. 31, 2020. In 2021, it drops to 22 percent, and in 2022 it will be zero for residential and 10 percent for commercial. Generally speaking, installations take four to eight weeks from signature to connection due to pulling permits, delivery of supplies, and other factors outside of the vendor’s control. That said, if you would like to take advantage of the federal tax credit, I highly recommend exploring your options soon, and being in contract with a vendor by mid-October.
If that timeline is not realistic for your household, you can still take advantage of the 22 percent federal tax credit next year. But, if you are serious about considering solar, I strongly advise installing in 2020 or 2021 for maximum fiscal benefit.
The fiscal advantages of renewable energy are no longer a secret. This is why you see corporations both large and small installing solar panels in their parking lots and on buildings. Recent local examples include Chase Bank and the Columbus Zoo. Commercial clients who are protective of their bottom line may wish to have a REALTOR® knowledgeable about renewable energy as they search for the right brick-and-mortar for their company.
Similarly, residential consumers are seeking out energy-efficient homes with greater frequency. The most recent NAR sustainability report points out that 59 percent of consumers are very or somewhat interested in green features, and 69 percent of agents and brokers said that energy efficiency in promotion of listings was very or somewhat valuable. Consumers do find value in green features and that translates to more value for agents.
To leverage the market trends, REALTORS® should educate themselves on the value, feasibility, and marketability of renewable energy. Columbus REALTORS® recognizes the market trend toward green features and is offering a virtual two-hour CE course on Solar & Energy Efficiency for Residential & Commercial Buildings on Tuesday, Sept. 22, 2020 at 10a.
Attendees will be able assess the feasibility of solar on any building or site, provide information on energy efficiency programs for both residential and commercial clients, and communicate why energy efficiency matters to money-conscious clients. Register online at ColumbusRealtors.com.
For more information about solar energy trends in real estate, visit sunnysideofcbus.com/blog.
