Now that oil prices are lower than most consumers ever dreamed possible and the hangover from the Great Recession has subsided talk of solar energy has dimmed.
But Kyle Frazier, director of sales for Austin-based Freedom Solar Power, said the company has been growing dramatically by touting the return on investment for homeowners and real estate investors. With an aggressive marketing platform centered on real estate benefits, Freedom Solar has posted impressive returns — about 514 percent growth from 2012 when revenue hit $1.4 million to last year when it reached $8.6 million. The company expects revenue of $19.6 million this year at its four Texas offices.
Freedom Solar has been leveraging its reputation for handling large commercial installations such as Whole Foods Market, The Thinkery children’s museum, a Lack’s Furniture distribution center and the new Hanover South Lamar luxury apartments into gaining the confidence of homeowners.
It probably didn’t hurt that Freedom Solar recently installed the solar energy system at the new Austin Board of Realtors headquarters in Northwest Austin.
“I think there has definitely been a mild spillover effect on Realtors,” Frazier said. “More importantly, though, has been our effort to visit real estate brokerages and educate them on solar. Since we formalized this partnership with ABOR, we’ve been visiting real estate offices during their weekly sales meetings to educate and inform them on the benefits of solar.”
Both residential and commercial owners are facing a deadline of sorts to fully capitalize on the Solar Investment Tax Credit, which is set to drop from 30 percent to 10 percent Dec. 31, 2016.
For homeowners the math is particularly favorable. Thirty percent of the cost of a solar system can be deducted from a household’s tax liability. To make the incentive even more appealing Freedom Solar is providing zero-interest loans for 12 months.
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The benefit for homeowners has been long-term savings on energy costs, which can vary wildly. In one residential proposal, Freedom Solar estimates the lifetime energy savings on a house at nearly $50,000 on an initial investment of $15,654.
The actual equity added to a home is a little bit more difficult to determine, though Frazier is convinced that homebuyers will pay more for a solar system. He also notes that the return on investment is greater than an individual can gain through a mutual fund or certificate of deposit. The computation may be even more compelling for companies that own their own real estate and commercial investors, though it is more complicated. Not only are there energy savings and built-in equity, but the benefits of depreciation also are significant.
Then there is the retention factor.
Frazier said some of Austin’s largest employers view solar energy as an appealing factor for retention of both employees and customers.
“The younger and more educated workforce really cares about how their employers steward the environment,” Frazier said.
For other companies, he said, it’s about achieving a high sustainability benchmark that is a marquee for their brand as well as attaining customer loyalty.
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