Does Going Solar Increase My Property Value?

Does Going Solar Increase My Property Value?

Disclosure: As an Amazon Associate I earn from qualifying purchases. This page may contain affiliate links, which means I may receive a commission if you click a link and purchase something that I have recommended. There is no additional cost to you whatsoever.

Solar vitality accounted for 43% of latest electricity-generating capability final 12 months within the United States, according to the Solar Energy Industries Association (SEIA). As increasingly more householders set up photo voltaic panels on their roofs, they weigh the pros and cons. Whereas electrical energy financial savings are comparatively easy to calculate, among the different advantages are considerably extra complicated.

One vital consideration is how photo voltaic panels will impression the property worth. Gaining some understanding of the advantages of a photo voltaic vitality system on a house’s resale worth could make going photo voltaic extra interesting.

How a lot can photo voltaic enhance a house’s resale worth?

Multiple research have tried to reply this query. The easy reply is roughly 4% of the promoting worth. Unfortunately, among the research are a bit outdated now, however they present that putting in photo voltaic panels does enhance the resale worth.

A 2019 Zillow study discovered that homes with photo voltaic panels offered for a 4.1% premium than comparable houses with out them. The enhance equals an extra $9,274 for the median-priced home. However, the value premium did appear to fluctuate by location.

In Riverside, California, photo voltaic houses offered for a mere 2.7% premium versus a 5.4% premium in New York City. The worth premium for photo voltaic houses in San Francisco, California and Orlando, Florida had been almost similar, at 4.4% and 4.6%.

Why do houses with photo voltaic techniques promote for extra?

Houses with photo voltaic PV installations are cheaper to personal as a result of the utility payments are considerably much less. This is very true when householders can reap the benefits of net metering by means of their electrical energy firm. In many instances, they are going to pay solely the supply price on their month-to-month electrical energy invoice and don’t have any cost for consuming energy. This occurs when the photo voltaic vitality system produces as a lot electrical energy all year long that the house consumes. Thus, the home is taken into account “web zero.”

Solar batteries

Utility outages have develop into extra frequent in some areas attributable to pure disasters. The Texas power crisis of 2021 left a number of million households and companies with out electrical energy, generally for days. Concern for wildfires has triggered utility shutoffs to assist forestall blazes. Solar vitality techniques with batteries additionally make a house extra resilient throughout grid outages. In some conditions, vitality storage capabilities can forestall property harm, comparable to frozen pipes, spoiled meals, or basement flooding. During blackouts, photo voltaic batteries will help energy a heating system, sump pump, or fridge. People with residence places of work may additionally be capable of work regardless of the facility outage, thus being extra productive. Also, photo voltaic techniques with battery backup supply peace of thoughts throughout pure disasters as a result of the house is extra resilient. Although photo voltaic techniques with batteries have many advantages, including batteries does add significantly to the overall photo voltaic system price.

Energy-efficient houses

Similarly, a number of studies show that energy-efficient houses additionally promote for greater than much less environment friendly dwellings. The working bills for environment friendly houses are much less, thus they’re cheaper to personal. Additionally, some residence buyers discover energy-saving houses extra enticing as a result of they’re greener and devour fewer fossil fuels.

Also, many Americans are more and more concerned about climate change and their reliance on fossil fuels. Solar vitality is more and more common as a result of it helps householders cut back their dependence on fossil fuels and be extra vitality unbiased. This additionally helps entice extra homebuyers.

Looking down at solar array on house roof
Image by Vivint Solar on Unsplash

How can I worth my photo voltaic system?

Increasingly, householders and realtors have been pondering the right way to worth a photo voltaic system when promoting a property. Thus, the SEIA created a guide on valuing residential solar systems. They current three completely different strategies.

  • The earnings strategy entails calculating the worth based mostly on the estimated earnings the system will generate for the brand new homeowners all through the remaining lifespan of the gear.
  • The price strategy estimates the worth based mostly on the price of reproducing the identical photo voltaic system presently put in, but it surely doesn’t take into account gear depreciation.
  • The comparable gross sales strategy technique examines comparable properties with and with out photo voltaic vitality techniques (equally to the Zillow research). This requires discovering at the very least two pairs of houses, each with and with out photo voltaic.

How do I put together to promote a photo voltaic residence?

It is essential to ensure your photo voltaic system is in good working order. If you might have solar monitoring, evaluation the information to ensure the photo voltaic system is performing nicely. Having the bill in your photo voltaic system out there helps appraisers, realtors, and potential patrons perceive the worth of the set up. If the photo voltaic system continues to be below warranty, have this data out there as nicely. Most photo voltaic panel producers supply an influence efficiency guarantee for at the very least 20 years. Likewise, having electrical energy payments readily available helps reveal the monetary financial savings of proudly owning a photo voltaic vitality system.

Feature picture by Vivint Solar on Unsplash