You might pause to consider if solar panels boost a home’s value before adding one. As it turns out, the response is an unequivocal yes. We’ll discuss how much solar panels can raise the value of your home, how that additional worth affects property taxes, and whether or not purchasers are actually shopping for properties with solar energy systems in this post.
The addition of solar panels and solar batteries can boost a property’s market value, as many homeowners, prospective buyers, and assessors are aware. According to one study, solar installations boost a home’s resale value by up to $5,911 for every kilowatt of solar panels installed. A different study predicted a rise of 4.1 percent of the home’s worth.
Where exactly are these numbers sourced from? Take a look at a Zillow study first, which shows that solar-equipped homes often sell for 4.1 percent more than those without. This is an average, of course. Some places display a higher value add (5.4 percent for New York City), while others display a lower value add (2.7 percent for Riverside, California).
According to older research from the Lawrence Berkeley National Laboratory, installing solar energy increases a home’s resale value by about $5,911 per kilowatt. So how much do solar panels raise the value of a home? Let’s examine a few averages:
|Home Solar System Size||Amount Solar Panels Increase Home Value|
It’s important to note that these costs are comparable to the entire price of a solar panel system, which can be the push you need to switch to solar energy.
Factors That Affect Solar Panels’ Value Add
While you may get a general idea from these straightforward calculations, there are a lot of variables that affect the added value of solar panels. The most notable examples include
Geographical location: The cost of electricity varies in various communities (and higher electrical costs result in greater value from your solar panels). Furthermore, geography might affect the social advantages of installing solar electricity as well as how much sun exposure you receive.
Costs for nearby solar installations: Costs associated with installing a new system in your location are another geographic concern. Your home will be worth more if a buyer would save money by buying a house with a system already installed.
System result: A larger system with more energy generation will offer more additional value, as the figure above illustrates.
Age of the solar system: You must take depreciation into account if your solar system is older. When you sell your home, older systems won’t add much value because there’s a greater likelihood that the buyer will need to make repairs or replace parts sooner.
System replacement value: Much like system age, the cost or difficulty of replacing individual components of your system has an impact on the system’s overall added value.
Are solar-panel homes in demand among buyers?
How appealing a solar system is to potential purchasers in your neighborhood is a further factor to take into account when estimating the amount solar panels might raise the value of your home. Geographical differences, and more specifically local solar literacy, will affect this.
Simply put, if customers don’t fully comprehend how solar panels operate or how they may benefit from them, they won’t be as likely to invest in a solar system. Having said that, some evidence indicates that, for the most part, homeowners are rather receptive to energy efficiency features.
According to the Zillow Group Consumer Housing Trends Report, for instance, more than 80% of purchasers rank energy efficiency as a top priority. Homes with solar panels sell 20 percent more quickly and for 17 percent more money than those without, according to earlier statistics from the National Renewable Energy Laboratory.
Admittedly, this data is around 15 years old; the supply and demand for homes with solar panels have both increased, but these data points should be encouraging nonetheless.
You can connect with an installer who has been screened by EcoWatch and receive a free estimate by clicking the link below if you want to know for sure how solar panels will impact your home’s value.
If you are interested in more articles like this, here’s one about what are the examples of renewable energy.