FOLKER KORTE racked up $21,000 worth of energy-saving upgrades to his single-story, three-bedroom home in San Pedro last year but only spent $9,000.
Plus, he didn't have to fork over the full amount for the several rooftop solar panels and then wait for a rebate. Korte paid for his portion, and his contractor obtained the balance from the Los Angeles Department of Water and Power through its Solar Incentive Program.
For The Record
Los Angeles Times Sunday August 06, 2006 Home Edition Real Estate Part K Page 16 Features Desk 0 inches; 26 words Type of Material: Correction
Solar energy: In a July 30 article, a member of the American Solar Energy Society board was identified as Alan Black. His name is Andy Black.
For The Record
Los Angeles Times Sunday August 06, 2006 Home Edition Main News Part A Page 2 National Desk 0 inches; 28 words Type of Material: Correction
Solar energy: A Real Estate section article on July 30 identified a member of the American Solar Energy Society board as Alan Black. His name is Andy Black.
That's only the beginning. Korte was also eligible for up to $2,000 in federal tax credits. His electricity bill has dropped from a monthly average of $90 to $30. And, as the price of oil soars, the solar panels increase the appeal and value of his home.
The costs of eco-renovations such as solar energy systems, insulation and energy-efficient appliances are more than offset by the resulting increase in market value to the home, experts and studies say. Some realty agents even use energy-saving attributes in their marketing pitches, listing a home's solar distinction alongside the swimming pool and spa.
For every $1 saved in annual utility costs, analysts have suggested that a $20 increase in home value results. Following this formula, Korte's utility bill savings of $60 a month or $720 a year would result in an increase in the value of his home by more than $14,000. Not bad for a $9,000 out-of-pocket expense.
A consumer survey conducted in May by Sharp Electronics Corp. found that 64% of the 1,004 polled said they'd be willing to pay more for a home with a solar-power system.
Alan Black, a solar financial analyst in San Jose and a member of the board of the American Solar Energy Society, says homeowners often find that the savings on the electric bill offset the loan payments sometimes necessary to finance a home improvement like solar, which can cost $16,000 to $20,000, or more, before rebates.
In years past, some homeowners have steered clear of energy-saving improvements because they didn't intend to stay in the home long enough to recoup the investment through utility-bill savings. However, that mind-set may change if a slowing housing market and rising oil prices reveal that homes with energy-saving features sell faster and at higher prices.
Much the same way that greater numbers of drivers have begun to seek fuel-saving hybrid vehicles, real estate agents say they are seeing more buyers concerned with energy efficiency.
