A recent study showed that the installation of solar panels and batteries could increase a property’s market value by up to $5,911 for each kilowatt of solar power installed. Another study shows that this renewable energy source adds a 4.1% boost in home value.
According to Zillow’s research, the average home with a solar power system sells for 4.1% more than homes without a solar system. This statistic varies by location, and one study from Lawrence Berkeley National Laboratory found the increase in value can be 5,911 dollars per kilowatt of installed solar energy capacity depending on where you’re located (New York City is an exception).
Factors That Influence the Value-Add of Solar Panels
Geographic Location
Various different communities experience different electrical costs from your solar panels, and geography can influence the amount of sun exposure you get as well as social benefits.
Local Solar Installation Prices
A factor If parts of the system were difficult to replace, this would reduce their value, and it may not be worth adding them into your initial cost. What you may not be considering is the cost of getting a new system in your area. If you would save money by purchasing a home with an already installed system, then this will make your house more valuable than other similar homes without systems.
System Age
If you have an old solar system, it can potentially cause problems when trying to sell your home. Buyers will likely need repairs or replacements sooner than a newer system, and this adds additional costs that the buyer may not be willing to invest in without proper compensation for their loss.
System Replacement Value
The overall value of your system is affected by how expensive or difficult parts are to replace. Along the same lines as system age, it’s important when considering buying a whole new setup versus just replacing certain components that could be easily swapped out with older models.
FAQ’s
Do solar panels affect the resale value of your home?
Solar panels help reduce monthly utility bills in a home and increase the value of that home by up to 4.1% more than other homes without solar panels — an additional $9,274 for the median-valued U.S. house on Zillow’s research statistics from 2016 and 2017 data analysis.
Do solar panels improve home value?
Solar panels increase the value of homes, especially when there are more installed on a roof. The public is in favor of this method because it provides renewable energy to power their home and increases its resale value by up to $29,000 for 5kW installations.
How much does solar add value to your home?
Solar panel installations have a large effect on home resale values. According to recent studies, installing 5 kilowatts of solar panels can add an average of $20,100 in value to the market price of U.S homes!
Do solar panels ruin your roof?
Solar panels could potentially damage a roof if they are installed without care. The bolts and nails typically used to install the solar panel may puncture through your roof, leading to leaks later on down the road.
