Do Solar Panels Increase Property Value?
Quick answer? Yes, installing solar panels would boost the market value of your house by at least the expense of the system. You won’t just realize a rise in the value of your home, a solar energy system can help sell your house 20% quicker compared to homes with no solar panels.
Solar panel owners are experiencing a rise in their property values more than comparative houses within their neighborhood. The primary reason for this rise in market value is that homes having solar panels provide a definite financial advantage to potential owners.
Potential customers should try to buy homes having an installed solar energy system due to:
- The ability to switch your utility bill with a less expensive and cleaner choice
- The decrease in the carbon footprint
Factors Which Affect How Much Solar Panels Boost Property Value
So, do solar power panels add more value to your house? This will depend on a number of factors like:
- The city or state you’re in
- The price of electricity on your area
- The dimensions of the installation as well as your house
- The age, type, and warranty of the solar panels
- The amount of energy the system could save
LOCATION
The location of a house is a key factor which decides how much value would be raised when adding solar panels. For instance, installations in active solar markets such as California and New Jersey usually generate better returns compared to similar installations in less developed markets due to the fact that purchasers, real estate agents, appraisers, and lenders are usually more knowledgeable about the advantages of solar at the beginning of the process.
THE SIZE OF THE INSTALLATION
How many solar panels your roof could cater to instantly relates to the property value boost post-installation. Property value increase is proportional to the quality and number of the solar panels installed. The generation capacity of the solar panels must be proportional to the size of your home. So how do solar panels have an effect on property values? The Berkeley Lab study estimates you could expect the resale worth of your home to raise by around $5,911 for every 1 kilowatt (kW) of solar installed.
AVERAGE ENERGY USAGE AND SAVINGS
Among the simplest ways to estimate home value increase according to energy consumption would be to run your own cost advantage analysis. The value of the system may also vary depending on the price of electricity where you reside. A good option to begin is by checking out your energy bill and determining the price of the system size you’d require depending on the kilowatt-hours utilized. The typical system installation is around $3-4 per watt. Around Texas, a 300 watt panel can generate around 9 kilowatt-hours every day. Upon having your day-to-day or monthly consumption, you calculate the number of panels you’d require to completely power your house. After that you can compare it into the regular resale value in your place.
QUALITY OF SOLAR PANEL
The panels themselves are one other factor with regards to determining value. Technology, life expectancy, as well as warranty for several producers of solar panels, inverters, racking, as well as other accessories can vary greatly. It’s vital that you spend some time and perform your research with regards to selecting the best solar technology products to take advantage of your long-term investment.
Why is Solar Energy Very Valuable?
In comparison to other major home improvements and ways of sustainable living, installing solar panels is really a relatively simple one-time venture which has small effect on your living area. The majority of the effort and time from you is performing the research to get the right company and getting the paperwork via the appropriate channels. Then, the installation must just take around a few days and you’ll generally be set up with a warranty for the following twenty five years. The 2015 survey revealed 61% of respondents agreed upon that solar electrical or water heating systems were appealing in a house they’d want to consider buying.
Read More →