Solar power is one the most widely used sources of energy. It has many benefits including a positive return on investment. There is no simple answer to the question of how solar panels can increase your home’s value.
Because there are two ways to evaluate the value of solar panels, this is partly because First, banks determine the value of a solar-generating asset. The second is how solar-generating assets are valued by consumers and home buyers. It’s worth whatever price someone else will pay.
However, numerous studies have shown that homes with solar panels are more valuable and sell at higher prices than comparable homes without solar. The addition of solar panels can increase the home’s value by 3 to 4%. A 2019 Zillow Study revealed a 4.1% markup to support solar homes.
Continue reading to find out about the factors that impact the resale value of homes with solar power.
Factors That Impact How Solar Panels Increases House Value
Do solar panels add value? It all depends on many factors such as:
- Your city and state
- Find out the cost of electricity in your region
- The installation’s size and the dimensions of your home
- Your solar panels’ type, age, and warranty
- How much energy can the system save
It is important to consider the location of your home when deciding how many solar panels you will need to increase their value.
Installations in Florida and Texas, for example, typically return higher returns than similar installations in less developed areas. This is because the benefits that solar offers buyers, realtors, and appraisers are better understood by lenders, bankers, and other financial professionals at the beginning of the process.
Size Of The Installation
Your home’s value after installation is completed will be positively affected by the number of solar panels that your roof can hold. Your house’s size should be proportional to your solar panel production capacity.
How do solar panels impact property values? According to a Berkeley Lab study, the value of your home will rise by about $5911 per kilowatt of solar.
Average Energy Usage & Saving
It is possible to do your own cost/benefit analysis to determine how much your home’s value will increase based on energy consumption. The electricity costs in your area will affect the value of your system.
Solar is treated as an income-producing rental asset. The asset’s value increases as rents rise or in this instance, energy prices rise.
Your energy bill is a good place to start. Based on how many kilowatts you use, calculate the cost of the system size that you need. An average system installation costs 3 to 4 dollars per watt.
Once you know how much energy you use each day, you can calculate the number of panels needed to power your entire home. After you’ve calculated your panel estimate, it is time to compare it with the average resale price in your area. The savings should not be transferred as an annuity, similar to a rental property with real value.
Quality Of Solar Panels
Another factor that can affect the resale value of your home is its solar panels. Manufacturers of solar panels and inverters offer different technology features, lifetimes, as well as warranties.
The solar system should be an integral part of the home, not just a feature. Prospective buyers should see the monitoring software and be informed about its benefits.
Do your research to find the best solar technology products for your long-term investment.
Why Is Solar Energy So Valuable?
A survey in 2015 found that 61% of homeowners would consider buying solar electric or water heating systems.
Solar is becoming more popular and realtors will need to know how to position it as the selling point. It may be the only thing that sells your house in a buyer’s market.
Also, installing Solar Panels is an easy project. This project has a minimal impact on your living area compared to other sustainable home improvement projects. It takes a lot of effort to research the company and get the paperwork in order for installation and warranty purposes.
Helps Preserve Our Environment
Renewable energy is a way to save the environment and reduce your carbon footprint. The sun’s power to generate electricity helps reduce the use of harmful fossil fuels. Fossil fuels are a source of greenhouse gases that can negatively impact the quality of local air.
This post was written by Daniel Massaad, owner and expert solar technician at Energy Solutions Direct! ESD is one of the premier Tampa solar companies! Our licensed and certified contractors are masters of their craft; with years of experience servicing the great Tampa Bay area and beyond, the choice is simple. ESD excels at offering you the best in solar value!