The McDonald Insider Intelligence Letter
Insights, Intelligence, and Strategies for Houston Homes, Communities, and Real Estate Decisions.
Before You Buy Solar Panels...
Ask This Question First.
A client called me about a year after I helped him and his wife purchase their new home.
He told me a coworker had recently installed solar panels and couldn't stop talking about how great they were. There were tax incentives, the monthly payment seemed reasonable, and on the surface it sounded like an easy decision.
Then he asked me a simple question.
"Shawn, what do you think about solar panels?"
My answer surprised him.
I told him I wasn't against solar panels.
I just wasn't convinced they were the right solution for his house.
His home had several characteristics that immediately caught my attention.
The front of the house faced south, which meant the best location for solar panels would also be the most visible from the street. The property was surrounded by tall pine trees that created shade throughout the day, and anyone who has lived around pine trees knows they also produce tremendous amounts of pollen, dust, and debris.
Those conditions don't necessarily prevent solar panels from working.
But they do change the economics.
That's when I realized something.
Most conversations about solar begin with the wrong question.
The first question many homeowners hear is:
"How much is your electric bill?"
I think the better question is:
Why is your electric bill so high?
Those are two completely different conversations.
One sells a product.
The other diagnoses a problem.
Over the years I've only had one client who was genuinely thrilled with his decision to install solar panels.
Ironically, it wasn't because of the panels.
It was because of the house.
After rebuilding his home following a fire, he installed spray-foam insulation throughout the walls and attic, paid close attention to construction details, had an ideal southern rear roof exposure with very little shade, and he paid cash for the solar system.
The result was impressive.
During lower-usage months he generated credits with the electric company that helped offset higher summer bills.
Everything worked together.
The house was already extremely efficient.
The solar system simply became the final optimization.
I've also represented homeowners with large, older homes and electric bills exceeding $400 per month who added solar panels expecting dramatic savings.
Instead, they were disappointed.
The panels produced electricity.
The house continued wasting it.
That's the difference.
The Intelligence
One of the biggest misconceptions about solar is believing it creates efficiency.
It doesn't.
Solar panels generate electricity.
Your house determines how much electricity it needs.
If a home has poor insulation, air leaks, aging HVAC equipment, excessive shade, or other inefficiencies, installing solar may simply generate electricity for a home that still consumes too much of it.
That's why two homeowners can install similar systems and have completely different experiences.
The Lesson
I believe homeowners should evaluate energy improvements in the right order.
Before investing in electricity generation, first ask whether the home itself is operating efficiently.
Could additional insulation help?
Are there air leaks that should be sealed?
Is the HVAC system operating efficiently?
Would reducing energy demand accomplish much of the same goal?
Only after understanding those answers should you determine whether solar panels are the next logical step.
Solar can be an excellent solution for the right house, installed the right way, under the right circumstances, for the right homeowner.
It can also be an expensive disappointment when applied to the wrong situation.
The difference isn't the product.
The difference is whether the product is solving the right problem.
What This Means For You
Products solve problems.
But first you have to make sure you've identified the right problem.
If you're considering solar, don't start by asking how much electricity you can generate.
Start by asking why your home needs that much electricity in the first place.
Making that distinction could save you thousands of dollars—and help you make a much better decision.
Reader Question of the Week
Do Solar Panels Increase The Value Of A Home?
A homeowner recently asked me:
"If I install solar panels today, will I get that money back when I sell my home?"
The honest answer is:
It depends.
Many homeowners assume solar panels automatically increase resale value by the amount they invested.
Real estate rarely works that way.
A buyer isn't purchasing a brand-new solar system.
They're purchasing the remaining useful life of that system.
Its value depends on many factors, including the age of the equipment, whether it's owned or leased, roof orientation, remaining warranties, the quality of the installation, utility policies, financing, and whether the system actually benefits that particular home.
The Intelligence
A good investment and a good resale investment are not always the same thing.
Those are two different questions.
The Lesson
Before making any major home improvement, ask two questions:
"Will this improve my ownership experience?"
"Will future buyers value it the same way I do?"
Sometimes the answers are identical.
Sometimes they are very different.
What This Means For You
The goal isn't to chase every improvement.
The goal is to invest in improvements that make sense for your home, your finances, your plans, and your timeline.
That's why every major decision deserves careful evaluation before the work begins.
The goal isn't simply to buy a product.
The goal is to make a good decision.
Intelligence Brief
New Homes Are Becoming More Energy Efficient
One of the biggest trends in residential construction isn't something most buyers notice during a showing.
It's what's inside the walls.
Builders continue improving insulation, air sealing, HVAC efficiency, windows, and construction techniques to meet increasingly demanding energy standards.
Efficiency begins before electricity is generated.
A well-built, energy-efficient home often requires less energy every day, regardless of where that energy comes from.
The Intelligence
Reducing energy demand is often the first step toward reducing utility costs.
Every kilowatt-hour your home never needs is one you don't have to purchase—or generate.
The Lesson
Before investing in new technology, make sure the home itself is performing as efficiently as possible.
What This Means For You
If you're comparing homes, don't just ask about the electric bill.
Ask why it's lower or higher than other homes you have considered.
The answer may tell you more about the quality of the home than the utility statement ever could.
Question of the Week
If someone offered to improve just one part of your home tomorrow, which would you choose?
Lower electric bills?
More comfort?
Lower maintenance?
Higher resale value?
Hit reply and tell me why.
Facing a real estate decision?
Hit reply and tell me what's going on.
If I can help, I will.
Until next time,
— Shawn McDonald
McDonald Insider Intelligence™
Broker, McDonald & Associates Realty, LLC