When a couple in Golden, Colorado bought their house from Lennar Corporation, their purchase included a solar panel installation on their rooftop that will give them 20 years’ worth of electricity powered by renewable energy. The number of companies that are making it cheaper for homeowners to have access to solar energy is increasing.
Home builders have thrown their hats into the ring and are offering solar panel installation during construction of the houses instead of afterward. Some builders also offer a solar system lease option for those on tight budgets. However, because of the increase in sales for solar panel installation, solar panels have also become cheaper.
Solar panel installation increase predicted with Lennar Co.
According to solar power advocates who have applauded these developments, participating builders will eventually help in increasing usage of solar energy while reducing, if not totally eliminating, the steep cost of solar equipment upfront. Solar Energy Industries Association’s CEO Rhone Resch has said that retrofits have been the largest portion of solar powered-homes at this point.
The situation, Resch said, could change as more solar users become interested in using solar energy. Lennar is the second biggest home builder in the U.S. today and the homes the company has constructed in California, Nevada, and Colorado all have built-in solar panels. Lennar plans to implement this kind of construction in more states which already have renewable energy programs.
The widespread standardization of residential solar across the U.S
Simply put, solar power is not an option when one buys a house constructed by Lennar Ventures, but a standard feature, according to company president David Kaiserman. Lennar leaves the decision to the buyer to purchase or lease their solar system. The former will allow customers to generate their own household electricity while the latter is available from Lennar’s subsidiary.
Although the subsidiary retains ownership of the system and sells power to the customer, Lennar promises leasing is still 20% cheaper than the price offered by local utilities. A homeowner, however, will still have to enter into a contract with the main power company to provide electricity to the household during the times when a solar power installation less effective (usually on cloudy days and at night).
Lennar Ventures benefiting morally and financially with solar endeavour
Lennar collects various state and federal government rebates for installations of solar power systems like the 30¢ tax credit for every federal subsidy of $1 spent on the solar system. California provides rebates to cover solar panel installation costs. Colorado pays subsidies to generators of solar power based on the additional power they produce and send to the national grid.
The downside is that a mortgage on a house with a built-in solar power system may be tricky to obtain, since a bank can choose not to value the system at its full cost when appraising the mortgage. The advantage of leasing the system, on the other hand, will enable a buyer to avoid not only the cost but the hassle of buying one.
Deciding whether to lease or own your solar panel installation
Leasing also has a downside to it, however, with the customer paying more over a longer period of time because of a locked-in contract that may take years to expire. If the homeowner sells the house with the leased solar power system prior to the contract’s expiration, the new homeowner will assume the balance of the lease.
Lennar’s offers an agreement of power purchase instead of a lease, because unlike other companies that lease the solar power installation itself, the company only charges its customers for the power used, not for using the system. Meritage Homes Corporation and KB Home either sell the whole system or let a provider do the solar panel installation and handle the system’s operations.
Lennar Venture are doing their part in creating a sustainable and eco-friendly alternative for new homeowners that will ultimately help them save on energy costs in future.
