As a homeowner, you may have a list that’s a mile long of improvements that you’d like to make to your home. If your electric bill is high or if you just want to do something positive for the environment you have most likely considered adding solar panels to that list.
There are many benefits to using solar energy and it’s a great feeling to produce your own power and not have to rely on the grid. Like any home improvement project, it’s important to research and see if going solar will make sense for you.
So let’s get to the point, do solar panels increase the value of your property?
Potential buyers, savvy homeowners and appraisers all know that solar panels and battery storage can increase your home’s value on the real estate market. A solar home’s selling price is typically 3.74% higher or more than comparable properties without solar.
The Office of Energy Efficiency and Renewable Energy says that a solar energy system will likely increase the value of your home. They also mentioned that buyers across the country have been willing to pay a premium for a home with an average-sized solar array. Due to every home being different, the specific numbers can vary depending on your energy consumption.
Buyers Appreciate Renewable Energy’s Added Value
When purchasing a home, buyers will also consider monthly electric bills. Therefore, when assessing the long-term financial value and environmental benefits, they will be open to the premium of a solar-ready home. Just like renovating a kitchen, installing solar panels is viewed as an upgrade by The National Renewable Energy Laboratory.
With lower monthly energy bills and federal tax incentives for new installations, homeowners can realistically anticipate not only recovering their initial investment but also gaining a return on their investment. By choosing to go solar, you can expect to add a sizable percentage to your property value. It is a smart sustainable energy solution and is encouraging more Americans to go solar daily.
With a residential solar system installed, the buyer could potentially receive a 200% return on the sale price premium. It would be difficult to find another investment matching these financial benefits:
Monthly/annual financial gains throughout lifetime of solar energy system
Reduced carbon footprint
Higher resale value of home
Factors Influencing Solar’s Added Value
The value added to a home from going solar is made up by many factors and can vary based on the following:
Local price of electricity
Environmentally conscious community
Frequency of power outages
The age of the solar system
The amount of energy that is generated
Solar installation prices
Federal Tax Incentives
Local understanding of solar technology and benefits
Incentives to go solar for homeowners/sellers
Along with increased property values, homeowners are realizing many financial benefits by going solar
No longer solely relying on grid electricity
There are also many advantages in the real estate market for the seller such as:
Higher asking price
Potential buyers see the value in solar panels.
Homes with solar panels often sell faster than those without
100% return on solar investment upon home sale
Going Solar Adds Property Value
Whether you’re looking to upgrade your home for a future sale or making it your forever home, installing a solar system will significantly increase the value to your property. Home seller incentives for going solar are parlayed into homebuyer incentives because a property’s market value may increase as electricity prices rise. The value increase makes the payback period less of a concern and you can recoup your investments down the road and come out ahead.
So why not take advantage of going solar and making the sun work for you? Not only will adding a solar system and back up battery/generator to your home increase the property value but it will also allow you to control your energy consumption and protect you from power outages; all while helping the environment.
Don’t wait to go solar, click here to view your solar savings and set up a consultation with TriSMART today and get connected with one of our solar experts.