What Kind of ROI Can Your Customers Expect to See for Solar Improvements?

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April 14, 2015 | By RGR Marketing Blog

Going Green Can Put More Green In Your Clients’ Pockets

There’s no doubt about it: more people than ever are interested in going solar. The past few years have been record-breakers for solar technology, with new solar installations multiplying exponentially.

That being said, solar still has a long way to go before it overtakes traditional energy sources as a mainstay in American homes. People are resistant to change, but that’s not the only thing stopping the average consumer from going solar.

Stubborn misconceptions are the main factors standing between solar and widespread adoption. Of these misconceptions, cost is perhaps the biggest.

You see, many of your potential clients are still under the impression that installing solar panels is a costly investment best left to hard-core environmentalists.

As a solar installer, you know that nothing could be further from the truth. In the long run, solar energy is a very wise investment whose dividends include substantial cost savings and a better future.

So how much money can your clients expect to save when they make the switch to solar? What’s the true ROI for going solar?

Higher Property Values With Solar

Your prospects may be surprised to learn that investing in a solar array actually increases their property values. The actual equity gains vary from property to property, but the general consensus is that each dollar saved in energy costs adds $20 to a home’s total value.

Another way of expressing the equation is that each kW of solar installed adds $5,911 to a home’s resale value. So, if your clients invest in a 5 kW system, they can expect to add nearly $30k in equity, just like that.

Not only that, but in the more progressive states like California and Massachusetts, that gain in property value is often exempt from property tax assessments, so your clients may be able to increase the value of their homes without paying an extra cent in property taxes.

Real Energy Savings From Going Solar

Energy costs are increasing, and that’s a trend that’s showing no signs of abatement. By investing in solar energy, you clients can “lock in” lower electricity rates for the life of their solar systems. The result is substantial long-term savings that start the day a solar system is installed.

Even if your clients opt to lease solar panels, they’ll still be able to take advantage of sizable monthly savings, as their lease costs and reduced electric bills are likely to be much more affordable than their previous monthly energy costs.

For clients who purchase solar arrays, the potential for savings is even greater. The average payback period for a photovoltaic system is approximately 9 years, with some U.S. states boasting break-even points as early as 7 years.

Once the payback point has been reached, the additional savings are 100% profit. Solar systems are typically warrantied for 25 years, but many last as long as 40 years. Even if electricity bills were to maintain their current monthly average of $107, which they won’t, consumers whose solar power systems took 9 years to pay off could very well save in excess of $40,000 in lifetime electricity costs.

Is Solar a Better Bet Than the Stock Market?

Between 1987 and 2005, the Dow Jones Total Stock Market Index shows average annual returns of around 7.55%. Yes, there have always been standout stocks that have made millions for their early investors, but by and large, that’s a pretty minimal average return rate. According to current figures, going solar beats these rates in 16 states, and comes quite close in many more. Plus, it has the added advantage of ensuring a better future, a claim that few stock market investments can match.

As a competitive solar power installer, it's a smart play to know the answers to questions like this -- after all, your prospects could be on the fence, and having the right information when they need it could mean the difference between closing a deal, and making no deal at all. When you're ready to purchase solar leads, get in touch with RGR Marketing: we have the highest quality solar leads anywhere.

[Photo Via: Sunsource Solar Brokers]

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