Many solar panel home buyers wonder if solar panels make their home more valuable. The answer is a resounding YES! In fact, solar panels have been shown to increase home values by as much as $25,000! So what do solar panels do for your property value? Keep reading on to find out the top three reasons why solar panels improve home values and to learn how you can use them to your advantage when buying or selling a house.
Solar panels are green and energy efficient
In the early onset of solar panel systems, solar installations were expensive and cost-prohibitive to many homeowners. To add to this issue, solar panels produced small amounts of power. Early solar panel systems would often have to be larger than available roof space in order for a system to 100% cover your energy use. Although the initial investment is still significant today, solar power has become much more affordable in recent years, thanks to technological advancements like solar cell efficiency (the cells convert sunlight into electricity at a rate that is higher than most other solar energy technologies).
In some cases, people are more willing or able to pay for energy efficiency. A recent study by the American Council for an Energy Efficient Economy (ACEEE) reported that potential home buyers were more likely to choose a home on a real estate website when it included a higher energy efficiency score in the listing.
Solar Energy is a Great Investment
Solar power is a great investment for homeowners looking to save money on their utility bills, but it is important that you take location into account when deciding whether or not this type of system will work well. For example, in 2018 there were significant differences between homes with solar energy systems installed which could range anywhere from 2-4%. However, these prices also varied depending upon where one lives.
The cost to install solar panels is decreasing and the payback period will vary depending on how much power you need. For example, 6kW systems can be installed for around $10626 after tax credits, while 12kW ones require an investment of around $21,000 with an average seven-year return interval, though this may change based upon your specific needs. The savings from not paying electricity bills could range anywhere from $600-2k!
Solar Panels Increase Home Value By Reducing Energy Costs
Solar panels generate a lot of electricity. A solar panel system generates around 40,000 kWh per year (enough to power the average U.S home) and 25 years’ worth of solar power can be installed on your roof in just one day! That means solar systems are consistently providing clean energy for the rest of your home’s life, which is great for the environment and can also help you save money on your electric bill.
Solar Panels Increase Home Market Value
A recent study by Lawrence Berkeley National Renewable Energy Laboratory found that energy-efficient upgrades like adding solar panels add an average of $15,000 to a home’s resale value! In some states like California and New York, solar panels can add as much as $25,000 to the value of a home.
This is why solar panel installation is one of the most profitable investments you can make in your home. Considering solar power makes solar panel systems around 40% more efficient than they would be without solar panels, it can really pay off! The biggest factor affecting solar panel home value is solar energy system cost. The average solar system costs $15,000 today and will pay for itself in under ten years thanks to the savings on your power bill. It’s a great investment!
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Energy Efficient Homes Sell More Quickly
The resale value of your home could increase by as much as 20% if you have solar panels installed. This is because compared to other homes that do not use renewable energy sources, such as oil or gas-fired heating systems for example (which can be cheaper), houses equipped with photovoltaic cells sell faster and fetch higher prices in most cases!
Installing Solar Panels Generate Substantial Energy Savings
Solar panels are gaining in popularity due to their ability to cut down on monthly electric bills and can be installed on roofs of homes without any sign of the panels to ensure the style of the house is not compromised. Solar panels are typically made of silicon, so they are typically light in weight and can be maneuvered on roofs.
The panels are also typically made of tempered glass, so they are durable and in most cases have a 30+ year life span. According to Silfab’s 30-year performance warranty, the panels will operate at 97.5% of their initial power rating after year 1. Every year after that, the panel will not degrade more than 0.5% per year. By the end of year 30, the panels will have a performance guarantee at 82.6% of their original rated capacityA third reason to consider solar panels when building your home is the great investment they are when it comes to the resale value.
If you’re thinking of going solar, be sure to ask your solar installer about the value a solar system adds to your home. You may be surprised at just how much a solar panel installation can improve the value of your property!