Do Solar Panels Increase Home Value? Whether you’re a long-time homeowner or a potential buyer, no doubt this question has crossed your mind. It also doesn’t hurt that persistent power outages in recent years have made solar the more attractive power option. Ask any appraiser or the pros at Sunpro Solar and the answer is the same: solar panels (and even battery storage) can boost your home value and knock your electricity bill down a peg or two. Let’s blast off and find out more about the boost solar panels give your home!
How Much Do Solar Panels Increase Home Value?
While specific numbers may differ (depending on installation and location), solar panels will definitely increase the value of your home. Studies show that homes with solar adaptations sell for more than 4.1% on average. In states, like California, that means sellers are walking away with almost an additional $10k on the resale ticket. A great thing to note is that even though solar panels do increase property value, many states have implemented exemptions that protect property taxes from increasing as well. Still on the fence about going solar? If you live in one of the sunniest cities in the U.S., you don’t want to be without solar panels when you put your home on the real estate market.
Plus Solar Panels, Plus Value, Plus Savings
Investing in a solar energy system is a big decision. So, it makes sense that there are even bigger benefits that come along with it. People are learning that solar is the way to go when they want to generate clean energy, but also want to lower their electricity bills, and protect themselves from rising energy costs. Folks are wondering, “Are solar panels worth it?” when they think about buying or selling a home. Every day, more and more people are realizing that it definitely is.
California is the first state to require a solar photovoltaic (PV) system on all newly constructed homes. Local legislators recognized the benefit of utilizing an abundant resource for electricity. Buyers everywhere are learning that the sun has a lot of love to give their homes. When considering the financial value of your home, making a long-term investment in solar has the ability to make your home premium for a hungry real estate market.
It All Adds Up: Going Solar Increases Home Value
It’s been determined that a solar energy system can add onto your property value. However, the question of how much added home value you can expect depends on a few factors. Ask yourself these questions about your property and the market you’re in:
- Which state does your home reside in?
- How much do your utility bills cost?
- What’s the going rate solar installation companies are offering?
- How much will it cost to replace your current system?
- Do you live in an environmentally conscious community?
- How often do power outages occur?
- How many solar panels do you think you’ll need?
- What solar incentives does your state offer?
How Much Solar Increases Home Value by State
While California has implemented some trailblazing statutes to increase the amount of residential solar installations in their state, there are some other heavy-hitting states taking the solar world by storm.
According to CNBC, here’s the top 10 states in the U.S. with the highest selling value for homes with solar panels installed:
- New Jersey: 9.9% or $32,281
- Pennsylvania: 4.9% or $8,589
- North Carolina: 4.8% or $8,996
- Louisiana: 4.9% or $7,037
- Washington: 4.1% or $15,916
- Florida: 4% $9,454
- Hawaii: 4% or $24,526
- Maryland: 3.8% or $10,976
- New York: 3.6% or $10,981
- South Carolina: 3.5% or $5,866
Many states across the U.S. have instituted major programs and incentives to foster the development of home solar installations and battery backup storage systems rapidly. Subsequently, this has increased property values.
Solar Benefits for Home Sellers
The U.S. Department of Energy and National Renewable Energy Laboratory (NREL) discovered that homes actually stay on the market for a shorter period of time when they have solar panels installed. Homeowners no longer had to play the waiting game to get their old family home sold and money in their pocket. The simple decision to make solar a priority made their home a cut above the rest.
In fact, sellers even earn more money if their property has solar. In 2015, the Department of Energy and Berkeley Laboratory discovered that homes with solar panels bid at a higher asking price than houses on the same market without. Researchers found that sellers earned about $4/watt, which comes out to be around $15,000 for residential, depending on your home and solar system.
In another study conducted by the NREL, they found that solar properties earned about 17% more at closing, in addition to selling 20% faster.
Solar Benefits for Home Buyers
Sellers aren’t the only ones that can take advantage of the savings that solar has to offer. Buyers also reap the major rewards for the decision to purchase a home with solar.
On average, solar panels add about $20 of value to your home for every $1 you save on your electric bill. If solar panels save a household $600 a year in utility bills, that means your home’s value might increase by $12,000. But you still might be wondering…
Do You Really Save Money with Solar Panels?
The truth is you can really save money with solar panels. When homeowners buy a residential solar system with a solar loan, they get to spread out the cost over time. Let’s explore some of the benefits that come with bringing the sun into your home.
Solar Rebates, Solar Incentives, and the Federal Solar Tax Credit
It’s a fact that potential homebuyers are willing to pay more for a system they’ll own versus a system that is leased.. Subsequently, there are many solar incentives that make going solar a financially sound decision. Additionally, households purchasing solar can experience lower utility bills and hefty tax incentives that in some cases will cover the costs associated with solar installation multiple times over the life of its warranty. Here are just a few benefits that add onto the price tag of solar:
- State rebates and local incentives— Solar popularity means local utility companies and legislators want to back your decision to go solar. Check out some of the programs that put money back into your pocket. (For instance, net metering is a partnership with your utility company that credits you for the excess energy your panels produce)
- Federal solar investment tax credit (ITC) — Get up to 26% back from the overall cost you spent on your solar system, battery and all.
- Sustainable (and often cheaper) energy to replace reliance on the grid — Relying on the grid is becoming more unstable. Add a solar panel battery to your system and get the blackout protection your family needs.
The bottom line: when you sell a home with solar, there are also tremendous advantages in the real estate market.
The Upgrade That Upgrades Your Budget
Solar panels are becoming a more modern way to upgrade your property. While a new bathroom renovation might be a stylistic choice, a solar panel installation is functional and appealing. Across the country, homebuyers are willing to pay for the economic and environmental benefits of solar panels on their new home. With a home solar system, the buyer could receive up to a 200% return on the sale price premium. Where else could you find another investment matching these financial benefits? Here are a few:
- 25-30 years of monthly and annual financial gains
- Vanishing carbon footprint
- Increase of resale value of home
Moreover, homes with solar tend to spend less time on the market.
It’s no wonder because homeowners can honestly expect a return on their initial investment in solar by tenfold. In fact, check out how much you can expect to save in your area by receiving a free quote from Sunpro Solar.Free Solar Quote
Sunpro Solar Adds Home Value with Solar Panels
Do solar panels increase home value? Yes! It’s time to put the sun on the market! Solar panel installation is a sound investment when you’re upgrading your home. Whether you want to take advantage of the benefits of producing clean energy while you live in your home or want to add a sizable value once it’s on the real estate market, solar is the way to go.
By purchasing a solar energy system, you can anticipate adding a huge percentage to your property value. Solar is the cost-efficient, sustainable energy solution and it’s the reason more Americans choose to go solar every day.
Contact the pros at Sunpro Solar to find out more about the benefits of solar today!