Thinking of getting leased solar? May want to read this article

Potential customers often ask what will happen when they try to sell their homes. The salespeople I spoke with said they allayed such concerns by saying solar adds value by lowering carrying costs. Jurich said the same thing during our interview. For TPO systems, however, there’s no data or reputable study to back that up. The Lawrence Berkeley National Laboratory, a publicly funded research organization in California, has found that an owned system is an asset. TPO systems weren’t shown to provide any net gain—they’re neither assets nor liabilities. (Although, tell that to Jug’s trust.)

Two days after walking through Jug’s ham shack, we made an offer. A week later, just before we entered escrow, we learned the solar array hadn’t belonged to Jug. It was, in the language of the industry, a third-party-owner, or TPO, system, belonging to Sunrun Inc., the largest provider of residential solar in the U.S. I started looking into the TPO model. It’s used less often than it once was, but it’s been important in making residential solar, once out of reach for most people, much more widespread. The reason is simple: Homeowners usually pay nothing upfront. A company like Sunrun puts solar panels on your roof, connects them to your home, and claims a tax benefit for owning the system. Going forward, you pay Sunrun to provide the bulk of your electricity needs instead of your utility.

I’d soon learn that the system was tied to the title of the house. It appeared that if we bought Jug’s place, we’d have to assume his lease arrangement with Sunrun. I wasn’t sure how I felt about this as a buyer, but it definitely piqued my curiosity as a journalist. I set out to examine the value proposition carefully.

read full article at: https://www.bloomberg.com/graphics/2019-sunrun-solar-panels/

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Solar tax credit falls after 2019

By 2022, the residential tax credit is scheduled to be eliminated altogether

Used as an incentive by the U.S. government to build out solar across the country, the ITC since 2006 has allowed commercial and residential customers to deduct 30 percent of the cost of installing a solar energy system from their federal taxes. Since a rooftop system can frequently cost $20,000, a 30 percent credit can amount to $6,000 in tax savings.

But 2019 is the final year the ITC remains at 30 percent. Starting in 2020, the tax credit steps down to 26 percent and in 2021 it drops to 22 percent. And in 2022, it is scheduled to go away completely for residential customers. For commercial solar installations, the ITC will drop to 10 percent in 2022, where it is scheduled to remain.

read more at: https://www.sandiegouniontribune.com/business/energy-green/story/2019-04-27/solars-30-tax-credit-for-installations-starts-to-fall-after-this-year

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San Diego Home Sales Down 8.6%

Median home prices are basically flat from last year, said CoreLogic. Sales remain low on a year-over-year basis in San Diego County and throughout California.

San Diego County’s home sales were down for the 11th month in a row in March, but home prices were still up slightly.

The median home price was $555,000 in March, said real estate tracker CoreLogic, a gain of 0.9 percent in a year. That’s down from a peak of $584,750 reached in August. In March, there were 3,224 home sales, down 8.6 percent from the same time a year ago.

Much of the slowdown has been attributed to rising mortgage rates, which started to move up in the latter part of 2018. Even with interest rates lowering substantially the first four months of 2019 though, buyers still face high prices in San Diego County, said Mark Goldman, an analyst with C2 Financial Corp.

“We still have affordability issues,” he said. “Wages aren’t going up, so that is going to stifle pricing.”

read more at: https://www.sandiegouniontribune.com/business/real-estate/story/2019-04-29/san-diego-home-sales-down-8-6

disclaimer: for information and entertainment purposes only