Do Solar Panels Increase Home Value? Yes! Zillow found that homes with solar energy systems saw a 4.1% higher sales value. The U.S. Department of Energy’s Lawrence Berkeley Laboratory found homes with PV systems saw a $15,000 higher value in their sales. The value of solar has never been higher nor provided greater returns.
How Much Does Solar Panels System Increase Home Value?
We mentioned the numbers, but why? Solar’s value continues to grow, especially in California. For decades, the arguments have come back to energy independence, faster payback, and residual income. Home value with solar panels continues to grow, and homes with solar panel systems are 4.1% higher in sales value. For example, a home worth $250,000 would add an additional $10,000 to your selling price. However, sellers have been able to add up to $18,000 to the same type of home. Thus, solar panels increase home value and benefit you and your long-term investment.
California Home Solar Buyers Enjoy:
Saving money with no energy bills or rate fluctuations
Having dependable energy backup during any power outages
Residual income that has little or no time and work involved
Who doesn’t love those things? That’s why the value of solar is increasing, not to mention:
Technology is improving; solar prices dropped 80% in the last ten years. That makes solar investments approximately $2.50 to $3.38 per watt now.
Incentives and financing offer at least a 30% tax credit rebate and $0 upfront cost.
Grid-tied connection for continuous energy to match any demand.
You can’t go wrong with a solar investment. Solar panels will help you generate the electricity you need for your home and save you money with long-term financial benefits. Read more: Net Zero & The Importance of Solar Panel System Size SCE Customers Already Seeing Utility Rate Increases In 2023 Solar Investment Tax Credit (ITC) - What You Need to Know
Before You Consider to Go Solar
Full disclosure, there are two important qualifications you need to be aware of with this built-in value boost solar systems give your home.
First, you must own your system, with no leasing or solar PPA.
We don’t mean you have completed the payback period. We mean you are not in a solar PPA or leasing agreement.
These two solar buying options are challenges when you are trying to sell your home. Although you may get into a solar system cheaper with solar PPA and leases:
Trap you into long-term contracts where you still pay for your energy.
Have rate escalations based on the solar company’s determination.
All tax or rebate incentives go to the solar company and not you.
Second, diminishing returns and longer sell times.
On average, solar-equipped homes have seen up to eight days extra on the market than nonsolar-equipped homes.
That’s not that big of a deal with the extra money you will get, but it is something to remember if you have a quick sale.
Diminishing returns come with your system’s size and age. Newer systems fetch higher home values, which makes sense. You may not be able to ask for the same value as a comp home due to your system’s age. Larger-sized solar panel systems have faster paybacks and greater returns and may get you higher prices. Still, the more powerful PV systems may not increase proportionally to the installation cost you paid. That wasn’t bad or scary. You can avoid both by owning your system and getting the right professionals to size it. The bottom line is the increasing value of solar transfers to your home’s value. Whether you plan to sell your home or not, the added value a solar investment brings is just one of the many reasons to get a solar system installed today.
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