Do Solar Panels Increase Home Value?
There are many benefits to solar panel installation, including reduced energy bills and cleaner air. There is also a positive correlation between solar panel installation and home value. Determining how much value your solar panels will bring to your home is established by looking at several different factors. Read on to learn what those are!
By the Numbers
Several studies indicate that homes with solar panel systems are sold at higher prices than homes without solar systems in the same area. In fact, home values are shown to increase approximately 4.1 percent when solar panels are added.
The National Renewable Energy Laboratory referred to a study in the Appraisal Journal, that indicated that home value increases $20 for every $1 reduction in annual utility bills. So, a solar energy system that is recouping $400 per year would add an approximate value of $8,000 to your home. Another study known as Berkeley Study states that a solar panel adds $15000+ to the average home value.
Where You Live
Solar panels add differing value approximations to your house depending on where you live and the amount of sunshine you get each year. Some reports cite that you can expect a home value increase of approximately $20/square foot in sunny states such as Arizona and New Mexico and $9/square foot in less-popular solar markets. This makes solar power well worth it. Not only do homeowners save money on electricity bills long-term with solar panel installation, but their homes will be worth more too.
The Cost of Electricity Where You Live
There are many factors that impact the cost of electricity where you live. The cost of electricity in your area hinges on the cost to build, finance, manage and operate power plants and the electric grid near you. It is also based on local fuel costs and pricing regulations. High energy costs make homes with solar installations more appealing to homebuyers.
Your Installation and Warranty
A bigger system doesn’t necessarily mean a bigger return on your investment. A solar installation that adequately meets your energy needs will help you to recoup the price of your installation. Furthermore, the type of warranty you purchase can also be a contributing factor to your home value. The better the warranty the more value you offer a future homebuyer.
Your Solar Panel Product
Not all solar panels are the same. There are off-grid systems, grid-connected systems, solar system options, and solar panel options. Each product has its own pros and cons and energy efficiency ratings.
The two most common solar panels on the market today are monocrystalline and polycrystalline. While both products perform about the same, polycrystalline panels are most commonly used today. Silicon panels are termed the most efficient panel on the market with 18-22 percent efficiency. Panels with higher efficiency ratings generate more electricity and boost home values more than their counterparts.
Be An Advocate for your System
Real estate agents are becoming increasingly knowledgeable on how to market and price homes with solar installed, but sometimes may need guidance. Better Tomorrow Solar has solar industry-specific tools that can help your agent value your home based on the specific energy your system produces, especially if comps are not readily available. Many buyers are eager to purchase homes that will have lower electricity bills on day 1 of move-in. Please reach out if we can assist your agent in home valuation.
Regardless of your reasons for going solar, solar panels increase home value and solar panel installation is a great investment. It will save you money on electricity bills as well as increase the resale value of your home. So, what are you waiting for? Contact Better Tomorrow Solar today to get your free quote and to have any of your questions answered!