Do Solar Panels add Value to the Home?
You might wonder; do solar panels add value to the home, before you install a residential solar system? The answer is yes! We'll be discussing how solar panels can increase your home's value, how it affects property taxes, and whether solar energy systems are being sought after by buyers. This information will help you make an informed decision on whether solar panels are worth the investment. For a detailed explanation of how solar panels impact home value, please read the following. You can also hire a professional solar expert to start designing your system sooner.
How much do solar panels increase home value?
Installing solar panels or solar batteries can improve a property's value, according to many homeowners, buyers, and appraisers. One study found that solar panels can increase a home’s resale values by as much as $5,911 per kilowatt of installed solar panels. Another study estimated that the increase in value could be 4.1%.
Consider a Zillow study that shows homes with solar panels sell for 4.1% more than those without. This is an average. Some areas have a higher value is added (5.4% in New York City), while others show lower (2.7% in Riverside, California).
A Lawrence Berkeley National Laboratory study shows that each kilowatt installed of solar power has a significant increase in its resale price of $5,911.
Meet the Demand
CNBC reports that 80 percent of home buyers search for solar panels or other energy efficiency upgrades as they look at houses. These improvements not only place a greater emphasis on green living but also address two of the most important financial priorities for homebuyers:
- It is important to save money on your energy bills
- Energy costs must be managed and controlled
New home buyers tend to be both financially conscious and caring about the environment. Solar panels offer energy savings and the ability to set their own prices for power. Even those who are not environmentally concerned will be drawn to them.
The market will determine the exact value solar panels can add to your home's selling price. The solar home value of a city can vary, and some areas may have higher solar home values than the average state.
Time and money savings
Another reason to invest before you put your house on the market is that houses with solar panels are more likely to sell than houses without. Research from NREL shows that solar-powered homes sell 20 percent more quickly than similar houses that are dependent upon the grid.
Your home will be less active on the market for a shorter time, which means you can save on storage costs, transportation costs, as well as the cost of two mortgages. It also lowers the chances that your house will go on the market or be sold at a lower price.
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