DO SOLAR PANELS INCREASE HOME VALUE?
Solar power is one of the most popular sources of energy and has numerous benefits, including a positive return on investment. But when it comes to how much solar panels increase home value, there’s no easy answer.
Nevertheless, several studies prove that homes fitted with solar panel systems are valued and sold at higher prices than similar homes without solar in the same area. On average, the value of a home increases 3 to 4% with the addition of solar panels. A 2019 Zillow study found a 4.1% markup for homes with solar.
FACTORS THAT INFLUENCE HOW MUCH SOLAR PANELS INCREASE
Your state and city
The cost of electricity in your area
The size of the installation and your home
The type, age, and warranty of your solar panels
How much energy the system can save
The location of a home plays an important role in determining how much solar panels will increase its value.
For example, installations in active solar markets such as California and New Jersey typically yield higher returns than comparable installations in less developed markets. This is because buyers, realtors, appraisers, and lenders are more familiar with the benefits of solar at the outset of the process.
SIZE OF THE INSTALLATION
The number of solar panels your roof can accommodate positively correlates with your home’s post-installation property value. The production capacity of your solar panels needs to be proportional to the size of your house.
AVERAGE ENERGY USAGE AND SAVINGS
One of the easiest ways to calculate home value increase based on energy consumption is to run your own cost/benefit analysis. Your system’s value will also differ based on your area’s electricity costs.
The best place to start is to look at your energy bill. Figure out the cost of your needed system size based on the kilowatt-hours used. The average system installation is about three to four dollars per watt.
QUALITY OF SOLAR PANELS
The panels themselves are another factor that affect your home’s resale value. Manufacturers of solar panels, inverters, racking, and other equipment offer varying technology features, lifespans, and warranties.
Solar should be a differentiated feature of the home and not just a blip in the home’s description. The monitoring software should be displayed to prospective buyers and the benefits conveyed to prospective homeowners
WHY IS SOLAR ENERGY SO VALUABLE?
A 2015 survey showed that 61% of respondents agreed that solar electrical or water heating systems were desirable in a home they’d consider purchasing.
Additionally, installing solar panels is a relatively easy one-time project. It has little impact on your living space compared to other major sustainable living home improvements. Most of your effort is doing the research to find the right company and getting paperwork through for installation and warranty purposes.