Are you concerned about what installing a solar panel system could do to the value of your property? California is a leader in solar energy generation. The state converts sunshine into electricity utilizing nearly 36 megawatts of installed solar photovoltaic (PV) capacity. That's enough to power 9.1 million homes! But, how do all of these solar panels impact property values?
The answer is encouraging. According to Zillow, the most-visited real estate website in the United States, adding solar panels to a house saves money, reduces the impact on the environment, and raises the property's market value. Homes with solar energy systems sell for an average of 4.1 percent more than comparable homes without solar power.
A study in the Appraisal Journal reveals a $20 increase in a home's value for every $1 cut in annual utility bills. As a result, a solar energy system that saves you $400 a year would increase the value of your home by $8,000. And, as utility prices rise, the amount that solar households save also rises. A year from now, your solar panel system could save you $500, increasing the value of your home by an additional $2,000 for a total of $10,000 in added value.
With that in mind, if you were considering purchasing one of two identical houses on the same street, which one would you choose? There is only one difference between the two: solar panels. For every year you live in the solar-powered home, you'll save the previously mentioned $400 (more considering the likelihood of future utility rate hikes). Which house would you want?
Of course, to ensure you get those benefits, working with a reputable solar installer who will set you up to generate energy at peak efficiency is essential.
Homebuyers Value the Additional Benefits of Solar Energy
When looking for a house, many people think about their future monthly electric bills. As a result, they are increasingly willing to pay more for a solar-ready home when evaluating the long-term financial value.
In the housing market, installing solar panels is viewed as an upgrade, just like updating a home's kitchen. Homebuyers across the country are willing to pay a premium for a solar home's economic and environmental benefits, and they move quickly to lock in the benefits of a solar home.
To make your home's value stand out, be sure to maintain good records. Prospective buyers are primarily concerned with two things: proof that the solar panel system was installed correctly and evidence that the solar panels lowered the house's electric bills.
Is solar worth the investment?
As a means to add value to a house, solar is a smart and efficient investment. Look at it from the homebuyer's perspective—If you were house hunting, wouldn't you prefer a more energy-efficient property that would save you money over time?
Installing a solar panel system is an excellent way to up the value of your home quickly. Not only will you lower your bills while you're living in your home, but you will also earn a greater return on your investment when you sell your home. Solar panels can help you save money by reducing your monthly utility bills, protecting you against future utility rate hikes, and increasing the value of your home. In addition to that, you can also reduce your upfront investment by taking advantage of tax credits and other financial incentives. {update link to website version}
When it comes time to sell your house, work with a realtor who understands the value solar panels add to a home, and make sure to provide documentation about the installation and the amount of money you saved on utilities. The wisdom of going solar will be reflected in the asking price and the speed at which your home sells.
Solar power is as dependable as the rising sun. See why over three million U.S. households have added value to their homes with solar panel systems—get connected with one of our solar energy experts today to get a free quote.
