Many people look at the energy systems of a home before buying, and with the adoption of efficient and clean energy in many countries, solar power can be a crucial add-on. Depending on your solar system size, installation can be quite expensive, so having the cost of residential solar installation reflected in the home’s value makes the proposition a lot more attractive, and the more efficient and environmentally-friendly power system can make a home stand out among the competition in the market.
Solar Panels and Value
Based on real estate websites, homes with solar panels can sell for 4% more than homes without solar. However, this is dependent on location. Home values in New York have been increasing by 5.4% while those in Riverside, California increase by 2.7%. A study by the Lawrence Berkeley National Laboratory shows home values increase by $5,911 for every kilowatt of power generated by their solar panels. Most of the figures show the benefits of solar installation of home values to be positive.
Taxes
Typically, as the value of the home goes up, so do the property taxes on it, which can make people more reserved on the idea of investing in solar panels. However, local, state, and federal governments are making attempts to encourage the use of solar power with tax incentives that provide a financial cushion for home and business owners. This makes solar a great investment decision, since you can get the upside of higher property values without the tax burden that comes with it.
How is Solar Enticing to Buyers?
Homeowners need to consider the attitudes that the buyers in their community have towards solar. In addition, solar literacy is dependent on location; communities closer to urban centers are more inclined to have homes with solar power or encourage solar power adoption. According to real estate websites, 80% of recent homeowners say that energy efficiency is a priority when it comes to buying a home. In addition, data from the National Renewables Energy Laboratory shows homes with solar sell 20% faster and for 17% more than those that do not.
Factors Influencing Value Added by Solar
While simple math can provide a rough estimate of your value increase, various factors can also influence how much value is added to your home when you adopt solar power:
- Location: Not all places have similar electrical costs; as such, the value of solar panels will be greater if your area has higher electricity costs
- Output: A system that has a lower power output will add less value than a system that would provide more power to the building
- Age of the system: It is also important to take note of the value lost by depreciation. As the system ages, the value it adds to your home also reduces.
For many Americans, their home is their greatest asset, as well as the biggest investment they’ll make. As such, making additional investments to improve your home’s value are good financial decisions. With the help of West Coast Solar, Inc, you can improve the value of your house in San Jose, Brentwood, and Sacramento by having solar panels installed! Contact us today to get started with your solar installation!