Whether you have yet to install solar panels or already have them on your property, you may be wondering whether a solar power system is a worthwhile investment. We already know solar panels can greatly reduce or even eliminate your monthly electricity bill, but do solar panels increase home value? Here’s what you should know.
Does Home Value Increase with Solar Panels?
To get right to the point, most experts say solar panels do increase property value. Buyers are willing to pay more for homes with solar arrays. A study conducted by Lawrence Berkeley National Laboratory agrees, revealing that energy-efficient homes sold faster and for more money than those that were not.
But why do solar panels increase home value?
Simply put, the majority of people consider solar panels to be an upgrade. In fact, over 80 percent of homebuyers specifically search for solar panels and other kinds of energy-efficient upgrades when house hunting. Given the amount of money homeowners can save with solar, these statistics aren’t surprising.
Why Do People Want to Buy Homes with Solar?
Given that solar panels do increase home value, you may be curious as to why solar systems are enticing to homebuyers.
For the most part, buyers are looking for potential savings on their utility bills. Indeed, many homebuyers listed energy efficiency as a highly desirable home characteristic. If a homeowner expects to consume a lot of power, spending more money upfront in exchange for future long-term savings makes sense.
In addition, heightened environmental awareness has many people looking for ways to decrease their carbon footprint. Installing solar panels does just that.
With the public generally maintaining a positive view of solar energy, it’s not surprising that this has also become a key selling point. Furthermore, having a solar energy system can give you a competitive edge in the real estate market.
How Much Do Solar Panels Increase Home Value?
Based on a Zillow Group report, solar-equipped homes sell for 4.1 percent more than those without solar power. However, it’s vital to note that this is an average. Geographic location can still impact how much value solar panels add.
Do You Really Save Money with Solar Panels?
For some, the issue is not whether solar panels increase home value but whether the installation process and associated costs are worthwhile.
Purchasing a solar energy system does come with significant upfront fees. However, keep in mind that the potential energy savings, federal tax credit, and return on investment far outweigh the installation costs. Your system would pay for itself in a few years.
Is It Harder to Sell a House with Solar Panels?
While you already know the opposite is true, there are still some factors that could undercut the value solar panels add.
For one, buyers prefer solar panels that are owned and not leased. They don’t wish to lock themselves into the previous owner’s contract.
Another factor to consider is the listing agent who will be in charge of the transaction. Real estate professionals and appraisers should be able to accurately evaluate the worth of solar-powered properties. Additionally, your agent or realtor must have experience efficiently marketing solar-equipped properties.
Despite these potential pitfalls, you’re still likely to boost your home value by having a solar energy system and working with the right professionals.
Increase Your Property Value and Save Money by Going Solar
For more insight into how solar panels increase home value and other solar-related questions, check out the rest of our site, or contact us today for more information.