Making the decision to buy solar panels is a big one. The right system could help reduce your energy bills and better the environment. Yet, many people wonder what may happen when they go to sell their homes later. Do solar panels increase home value? That’s a big question and one that really depends on multiple factors.
How Much Do Solar Panels Increase Home Value?
Installing the best solar panels for home use on your property could increase the value of your home by a significant amount. Many property owners will see a boost in home value should they go to sell their home in the years after installing it. The amount of increased value depends on multiple things.
Studies have shown that people will pay more for a home that has solar panels and a solar power system than one that does not. The amount depends on many factors. Generally, homes with solar installations sell for about 4.1% more (according to Zillow) than those without. Solar panels on homes are a valuable investment, and many people want to benefit from them but do not want to put out the initial dollar investment into them. Buying a home with solar already installed, though, is financially savvy.
What Factors Influence the Property Value of a Solar Home?
The key to remember is that every home is different. How much value do solar panels add to your home? That depends on multiple factors. Things like how much you are currently paying for electricity, location, and the overall age of the system could play a role in what the system is worth to the next person buying your home. Here are some of the most common things to focus on to better understand the impact solar panels have on your home.
Location
Solar panels are more valuable in some areas than others. For example, communities where there is a significantly higher amount of solar energy through direct sunlight typically get the best bang for their investment. In these areas, homes can generate more or all of the energy they need from solar, reducing costs otherwise. Also, some markets simply are more demanding of eco-friendly alternatives to solar power.
According to the Solar Energy Industries Association, there are 10 states that have the biggest benefit from solar, and in these areas, home values are likely to be more impacted when solar panels are on the home.
- California
- Texas
- Florida
- North Carolina
- Arizona
- Nevada
- Georgia
- New Jersey
- Massachusetts
- Virginia
That doesn’t mean if you live in another state that solar will not be a viable and beneficial option. It very much could be. How much value do solar panels add to your home, then? You’ll need to learn a bit more about the local real estate market and the number of property owners with solar panel systems who recently sold.
Electricity Rates
Electricity costs in your area factor into the value of a solar panel. The more expensive it is to use electricity in an area, the more valuable solar panel systems are. The key benefit of solar panels is that they eliminate or reduce your reliance on solar panels.
Solar panels can be used to store power in a battery system. That means when the sun goes down, your battery can continue to power your home. That makes them less dependent on electricity, reducing your need to pull from the grid.
If you live in an area where the cost of electricity is high, this is going to be a desirable feature for potential home buyers. That includes areas like California, Colorado, and Florida. Take some time to compare your electricity costs to those in another state. You’ll see just how much of an impact this could make on your purchase.
Age of the Solar System
Today’s solar systems are designed to last. Some are able to last 20 to 25 years, but others are up to 40 years. During the early years, the system was newer, and that means it has more life left in it than an older system. For those who are considering the purchase of a home, a system that was installed less than 5 or 10 years ago is great because it means it has most of its life to go. A system that’s over 25 years old may no longer have the same boost to a home’s value.
Solar Panel Ownership
A key factor to keep in mind when considering solar panels on homes is who owns them. If you purchased the solar panels yourself and own them outright, that is going to improve your home’s sale value. If, on the other hand, you have a leased solar panel system, that could negatively impact the value of the home. Though you can transfer these to a new buyer, it is less of a benefit to the new property owners.
How Do Solar Panels Affect Property Taxes?
Something also important to consider is the value of solar panels on property tax. If you have a solar panel system installed on your home, it could improve the value of your home. That could increase taxes, right? Some states have new laws in place that do not allow for that. To find out what the case is in your situation, contact your local taxing authority to find out.
Are Buyers Looking for Homes with Solar Panels?
This really depends on your area. Many people are interested in solar panels, and some may not be willing to buy a home unless there are panels on it. Yet, most people do not buy solely because the home has a system in place. It’s a nice added feature in some areas.
Are You Ready to Learn About Solar Panels for Your Home?
The best solar panels for home use can be well worth your investment. Take a few minutes now to find out how easy it can be to install them. Ask us about the cost of installing solar panels. When you contact us, we’ll be happy to set up a consultation for you.
