The installation of solar panels is growing in popularity among homeowners who want to reduce their carbon footprint and save on energy bills. Beyond the environmental and financial benefits, many potential homeowners ask: does solar increase home value? The short answer is yes! Let’s explore how solar panels can become a valuable asset to your property.
How Do Solar Panels Increase Your Home’s Value?
Adding solar panels to your home is a wise long-term investment that can lower electricity costs and promote sustainability. As a result, your property becomes more attractive to cost conscious buyers while also increasing your home’s overall value. Additionally, government incentives and tax credits for solar panel installations can help offset the initial expenses, making it a more appealing financial choice.
What is the Increase in Property Value from Installing Solar Panels?
Homeowners nationwide are discovering that solar panel installations can significantly boost property value. A notable study by the U.S. Department of Energy’s Lawrence Berkeley National Lab provides compelling evidence that solar energy systems enhance the market worth of homes. According to their findings, each solar power watt can add $3.50 to $4.00 to a property’s value. For example, a home with a 7,000-watt solar system could see its property value increase by as much as $28,000. As solar technology continues to advance, it has made solar panels more efficient and aesthetically pleasing, boosting their appeal and contributing to higher resale values. According to a study conducted by Zillow, solar energy systems were found to add 4.1% to the sale price of homes in the United States compared to similar homes without solar power. This translates to an increase of $9,274 for homeowners with medium-value properties. Energy-efficient homes often sell faster than those without, as buyers are increasingly eco-conscious and prefer energy-saving features. Data from Rocket Homes reveals that homes with solar systems spend 13.3% less time on the market than those without. This data highlights not only the environmental advantages of solar energy but also the considerable economic returns for homeowners, making solar installation a profitable investment.
Factors Influencing the Added Value of Homes with Solar Panels:
Several factors can contribute to an increase in your home’s value, including the location, age, and efficiency of the solar panel system. This is particularly important for properties in areas with high electricity prices or abundant sunlight. The age and condition of the solar panels also play a significant role; newer panels with upgraded technology and warranties are more attractive to buyers than older, less efficient ones. Additionally, the size and efficiency of the solar panel system can impact property value—larger, more efficient systems that generate more electricity provide greater savings and appeal more to potential buyers.
Boosting Value Without Increasing Property Taxes:
In many states, how the installation of solar panels increases a home’s value is not allowed to be reflected in your property taxes. This means homeowners can benefit financially from the enhanced resale value of their home without seeing a corresponding rise in their property tax bill. How the laws excluding solar panel’s impact home value (and hence property taxes) varies by state. For example, Massachusetts, Rhode Island, and Maine offer substantial benefits by exempting the added value of solar panels from impacting property taxes for 20 years. In New Hampshire, the exemptions are decided by each town. As of April 2020, 135 out of 221 towns have exempted solar from property tax valuations. And in any event, homeowners should always check their own local regulations to understand the specific tax rules in their area.
Conclusion:
Overall, installing solar panels can significantly increase your home’s value. Beyond their environmental benefits, solar panels are a great investment that enhances your home’s appeal to buyers. This often results in a higher sales price due to the sustainable economic benefits, cost savings, and contribution to sustainability. While these energy sources benefit the planet, they also provide substantial advantages for homeowners. Let us help you make a positive impact on both your energy bills and your home’s value. Contact us today to learn more about how we can assist you in this rewarding investment.