How Does Solar Impact my Property Value?
Will adding solar to your property save you money monthly, and will it increase the resale value of your house? It’s important to dig into the details about how much you might expect to see as added property value for using solar panels.
There are so many benefits of solar power at home.
The most important one is your commitment to have a sustainable house, knowing that reducing your carbon footstep is important for you and for future generations. Next, most of us are probably excited about reducing your electricity bill by a few hundred dollars every year (or eliminating it entirely), especially since the cost of electricity is on the rise almost everywhere in the country. In addition to these savings, many states offer solar credits that will help you cover the installation cost of solar panels; other companies offer financing or leasing of their products to help you through the process.
Some experts affirm that installing solar panels would make your house more desirable to potential buyers, ensuring that when you decide to sell, your house would sell faster than others without solar power. Cost of Solar explains, “each additional $1 in energy bill savings (from your solar installation) adds $20 to your home’s total value.” Homeowners can get more detailed explanation of how much your property’s value will go up using this guide from the National Renewable Energy Laboratory.
But of course, getting the most value out of your panels requires that you choose good quality products and good contractors when you are ready to install your panels. The investment you will make in solar energy is considerable so it deserves to be installed by professional. It’s also important to review the warranties of your systems and make sure the installation is aligned with warranty.
Another important factor is if you finance your solar panel installation, this might scare away future buyers. Before you commit to any long-term leasing contract, make sure the lease is transferrable and the system has a solid warranty.
But if you can purchase your system outright, you’re looking at a pretty good value increase for your home. EnergySage calculates that a 5 kilowatt (kW) solar system (the national average) will offer 5,000 watts of power – each watt of solar adds about $4 to a home’s value in California and about $3 elsewhere. Thus, a home with solar should sell for about ($4 x 5,000W =) $20,000 more in CA or still ($3 x 5,000W =) $15,000 more outside of CA.