Thread: Solar energy panels
View Single Post
Kontis
Status: Offline
Thanks: 0
Thanked 0 Times in 0 Posts
Status: (13) Pontiac
Joined: Sep 2007
Posts: 26
Expertise:
Locale:
Reply With Quote
 
 
Default Re: Solar energy panels
Old Jul 25th, 2008, 10:04 AM   #12 (permalink)

Quote:
Originally Posted by 8 SNAKE View Post
What's your take on it?

I've spent some time researching solar panels and I don't see that they make much economic sense...yet. Most of the information that I've looked at has been for SFH, which would seem to be a better application for solar than multi-family (in my opinion). Most modern apartment buildings are individually metered, so the tenants pay their utilities. I don't know why I'd want to absorb the cost of putting solar panels on top of my apartment building when I wouldn't likely see any rewards.

I live in the Midwest, so "green" living and solar power aren't quite as in vogue as they are on the coasts. Around here, I just can't see people paying much of a premium to live in a "green" apartment complex, which would be the only possible return that I could see for the investment in solar.

I also think that solar technology will improve quite a bit now that it's gaining a bit of traction. I'd be afraid of putting up solar panels that would quickly become obsolete as new developments come to market. I could be off base with this fear, but it is certainly one that I have in my own mind.

I'd love to hear some other opinions...
I believe that it might come in useful if you get grants from the city & tax breaks. Coming from NYC there is so much competition among investors, that these reduced monthly energy costs could be an incentive for your prospective tenants.. Or if you are a developer who is doing a loft conversion who plans on selling them it might be an added bonus for the owners to have cheaper energy bills. If you are going to manage the property yourself; you can work the costs into the maintenance. My concerns are, are the tax breaks/grants charming enough to take this risk in dishing out hundreds of thousands to have people save $xxxx/month and will the panels last long enough to pay themselves off and let you reap a profit. I do not know what the savings look like and only have an idea that it can cost up to $500k+ for an apartment building.