Do Solar Panels Increase Home Value? The energy savings through the use of solar panels can act better source for an increase in the value of your house. According to National Renewable Energy Laboratory, this confirms that solar will increase home value by about $20 because this will save every dollar on energy. This means that there is a return ratio of 20 to 1 after investment in solar panels in homes. So, you can see that this investment is a total case of saving and bigger profit.
Do solar panels increase home value?
Yes, solar panel installation can increase home market value due to factors that can influence your effects on your property tax and final listing price. Many ways will increase savings with solar tax incentives and credits. The solar panel can increase the home value up to 4 % higher than without solar panels. So, you can get the approximately added value of $9,200 which is a good amount. Another reason for the increased home value is that this house will become an attractive house for buyers.
Factors Influence the property value of a solar home
Installation of solar panels will not always cause a higher value of a home. For or after the installation many factors will affect the value of a house. These external factors include local electricity rates, location, and the condition or efficiency of the solar panel system. So, now here I will discuss these variables that can decrease or increase your property value.
Geographic Location of home
Usually, pre-installed solar panel house value depends on the home’s geographic location. Because every state has defined and different laws, methods and support for solar installation. These things will help to support making a solar investment that also becomes profitable for a homeowner.
Following the Solar Energy Industries Association`s name list of some popular states, you can see top solar markets. These top solar markets are based on that state’s solar energy capacity. However, these states are California, Texas, Florida, North, Carolina, Arizona, Nevada, Georgia, New Jersey, Virginia, and Massachusetts. Among all these countries you will see a difference in benefits to homeowners.
The difference in Electricity Rates
The difference in electricity rates is another factor in increasing the value of homes due to solar panels. Because these solar panels can provide the benefit that you can reduce dependence on utility companies, people will install these solar panels to power their homes with less money and later on, this will cause an increase in the value of homes.
These electricity rates also vary with countries and states. Due to these differences in rates, many countries are saving money by using solar panel installation at once.
Condition of the Solar System
The condition is also one factor that will affect the value of a home. Because this thing can increase sales if the age of the solar system is less. This means that solar system is newly installed or installed before few times. As solar systems last for 25 to 35 years or their optimal age of 40 years. But if your solar panels are not too old, they will enhance a home’s value. This solar panel also consider in good condition if it’s all parts are working well and there is no need for any replacement.
Ownership of Solar Panel
The legal ownership of the solar panel system can also affect the sale and value of a home. If a solar panel of this owner is a perfect one for that home and this is leased free, low cost, and less billing solar panel then this is a straightforward point for increasing the value of a home. Because the lease-based solar panel system is known as a complicated system that`s why most buyers run away from this method.
Local solar installation prices
The price of solar installation is another geographic factor that will affect the value of the home. This is a reason that most people want to buy a house in which already solar panel system is installed.
- System output
If your solar panel system is providing more output then a larger portion will be energy added to the sale or value of a house.
Reasons to get benefits to selling home with solar panels
You can observe many reasons that will become a cause to get benefits by selling homes with solar panels. These reasons are given below that will help to take a better decision.
Fulfilling all Demands of buyers
Most buyers are budget-conscious about the green environment. Because they want to save money on energy and control and manage energy costs. Demands will vary with cities, solar panel systems and geographical locations.
According to a CNBC report, this is come to see that 80 per cent of buyers search for a house that is already upgradable with solar panels and other energy-efficiency sources. Most of the buyers also do greater emphasis on green living places.
Saving Money and Time
For investment, another reason to buy pre-installed solar panels house is that they want to save money and time to install new ones. According to NREL research, this was observed that people show more interest in pre-installed solar panel houses. The major reason is that this house can sell 20 % faster than those houses that have no solar panels. A house like this is an ideal option for a buyer because they can save money that they will further spend on transportation costs and mortgages at the same time.
Contribution or efficiency level of Solar Panels
A solar panel system can retain any specific contribution to energy consumption. If the contribution of solar panels is still high then it will value more as compared to less efficiency value. These given options can increase the value of a house as well as the higher efficiency level of solar panel systems. These options are
- Methods for heating and cooling in a home.
- LED lighting efficiency enhancement when solar panels will catch the rays to light the home.
- Certified appliances that are energy star due to powering from renewable solar.
Tips to Increase Your Home Value with Solar Panels
1. You should install less costly but more efficient solar panels for house electricity power.
2. Make sure that when you are selling your house the solar panels should work at their best level.
3. Keep replacing all poor working tools of the solar panel so, this will last for long period.
4. Never buy a solar panels system on lease method because this method will cost more than a normal one. This method is unsuccessful due to its complicated option for paying money.
5. You can utilize the services of REenergizeCO which is an approved Xcel Energy contractor. They are passionate to help homeowners for reducing their environmental impact, save money on energy, and take control of their power usage.
This company already completed the target of hundreds of solar installations in a different areas. These areas include Denver, the Front Range, and Fort Collins. They will also help to maximize the value of energy-efficient by upgrading solar panels in your home.
According to this contractor, the process starts with a comprehensive audit of home energy in multiple countries. So, if you are belonging to that country then their team will perform specialized tests to determine of lose energy. After that, they will provide individualized recommended options to improve efficiency.
Home solar system size and increase in home value
With the help of an older study from Lawrence Berkeley National Laboratory, this is easy to find the level of an increase in resale value. The standard value is approximately $5,911 per kilowatt of solar power. Let’s check it out with the help of the table which is given below:
|Home Solar System Size in kW
|Average Solar Panels Increase Home Value in Dollar
How much value does solar add to your home?
Multiple observations show that solar installations can increase the resale value of any home up to $6,000 per kilowatt or by about 4.1% of the value of the home. However, this will vary due to one geographic location to other. This is also true that most buyers are looking for a home that has already installed solar panels. Because it will also reduce their electricity billing.
Do you save money with solar panels?
Yes, you can save money with solar panels because it will significantly reduce monthly electricity billing. The investment in solar panels will also make an addition to property value.
What is the cheapest way to buy solar panels for your home?
The cheapest way to buy solar panels is that you should purchase the right option of durable and efficient solar panels. Initially, it may look large sum of money but after a few years of installation, you will feel that was the best option. Because after installation it causes a reduction in billing. Always make sure that never buy these solar panels on loan and lease because it would increase the cost.
For long-term energy savings solar panels are the best option with benefits tax credits and incentives. In addition to property value and net metering programs. Because this is a great investment for homeowners that will provide all benefits with an upgrade value of the home.
The upgrade of solar panels is also worth it because it will give you more value for money according to state and local policies, location, and system health. So, after all, the above discussion, I have concluded that this is a great option to install solar panels in-house. There are many companies are available in the market which manufacture the best solar companies. These companies are offering cheap as well as expensive options for solar panels.