How Solar Energy Can Boost Property Value
The energy that solar panels provide is abundant, sustainable, and clean, which is why their popularity in residential areas has only grown since being introduced to the market. While it is true that installation is still a substantial investment, ongoing advances in technology mean that the panels currently on the market have never been as inexpensive, efficient, or easily accessible as they are today. Still, this investment leads many homeowners to ask whether solar is really worth the cost.
The Impact of Solar on Your Home’s Sale Price
Though of course there are numerous environmental benefits to installing solar in your home, as well as more immediate financial benefits in the form of reduced or eliminated energy costs, you can also see a significant return when it comes time to sell your property. In 2019, real estate website Zillow conducted a study that concluded that homes with owned solar could expect a sale price that is around 4% greater than comparable properties without. While this may sound negligible, remember the kind of costs we’re dealing with – 4% of $300,000, the median price for homes in Fresno, is $12,000.
However, there are numerous external factors that can impact how much return a homeowner sees:
- Panel quality makes a big difference, for obvious reasons. The more efficient and long-lasting your panels are, the more buyers will be willing to pay for the convenience.
- Average energy consumption is another important indicator. While different families will have different needs, energy generated by the solar panels instead of the utility company is value added directly to the property.
- System size is dictated by roof size, and the more panels it can accommodate, the more energy it can produce. Berkeley Lab completed a study that suggested a possible return of just under $6,000 for each kilowatt of energy the solar panels generate.
- Location can have an impact on these benefits as well. If your home is in an area where solar is well-known and sought-after, the return will be higher than if you were located somewhere without a thriving market for solar.
Where There Is Energy, There Is Value
As much as our world continues to evolve, it is unlikely that we will evolve past our need for reliable energy anytime soon. Solar panels provide incredible amounts of value to property owners and would-be buyers alike. Even better, the state of California includes an incentive in its property tax rules which allows homeowners to add solar panels, and enjoy the value they add, without seeing an increase in their property taxes due to the new construction. This is currently good through the end of 2024, after receiving an extension when it was supposed to expire in 2016.
To find out more, we invite you to call us at (800) 985-8103 today!