Does Solar Increase Your Home's Value?
How Much Does Solar Increase Your Property’s Value?
Installing panels can boost your home’s property value. The National Renewable Energy Laboratory offers a useful guide when determining how much your property’s value will go up. According to its research, each additional $1 in energy bill savings (from your solar installation) adds $20 to your home’s total value.
This rule of thumb varies depending on a number of factors:
The exact numbers vary from property to property and installation to installation, but recent research shows an average increase in resale value being $5,911 for each 1 kilowatt (kW) of solar installed. In a state like California, for example, a small 3.1-kilowatt (kW) system can add an average of $18,324 to the value of a medium-sized home.
The property value advantages of solar energy only increase as you scale up. Installing 5kW of solar panels adds an average of $29,555 to the retail value of a medium-sized home.
It’s important to note that these statistics only apply to today’s housing prices and utility rates. As electricity prices go up (as they most certainly will), the advantages of solar energy rise proportionally as well.
In addition, installing solar panels not only helps you fetch a higher asking price, but it can also help your home sell 20% faster as properties without solar installations. For homeowners who want to reduce exposure, paperwork, and wait times, this can be a huge advantage – especially in today’s sluggish housing market.
Putting it All Together
Installing solar panels is an amazing investment. Not only will you enjoy lower electricity bills over the 25 – 30 years of the system’s lifetime, but as utility rates increase, your rates remain the same. Even if you never sell your home, the installation will pay for itself many times over.
Selling your home will fetch a higher premium, which again, more than covers the upfront cost of installing solar panels.
In other words, with the right sized installation, solar energy is an investment that could yield a 200% plus return – which far exceeds most investments. And unlike most investments on the market, you actually begin enjoying those returns on day one.
To learn more about your solar options or to speak with certified installers in your area, request a free, no-obligation solar estimate today.