There are a lot of good reasons to invest in solar panels. And as it turns out, an increase in property value is one of them.
Here’s what to know about solar panels and property value, plus a few factors that play into how much of a value boost you might get from your solar investment.
Pros and cons of going solar
A solar panel system isn’t cheap, but it does offer returns in more ways than one. When considering whether or not you should transition over to solar energy, consider these pros and cons and make sure to do research based on your unique location and climate to see if it would be a good fit.
- Significant cuts to your energy bills
- Reduction in carbon footprint and emissions
- Protection against rising costs in electricity
- Potentially pricey installation costs
- Not right for every location or roof type
If you’re interested in solar panels but aren’t sure whether your location or roof are ideal for them, bring out an installer for a consultation. You can also check your property’s Sun Number Score for a quick estimate of your home’s solar suitability.
Solar panels and property value
Can solar panels increase your property value? The data points to yes.
According to the U.S. Office of Energy Efficiency & Renewable Energy, a home with an average-sized solar array is worth about $15,000
more to buyers than a home without.
Other studies have shown similar evidence of a solar system’s ability to boost your property value. This includes a Zillow study
that found homes with solar panels sell for 4.1% more on average and a study from the Lawrence Berkeley National Laboratory
that found a resale increase of $5,911 per kilowatt of solar power.
In addition, many states offer tax credits and rebates to homeowners in order to help offset the price of solar installation. This can greatly reduce your initial investment and lead to an even larger return when you go to sell later on.
Getting the most out of your solar investment
There are no hard and fast numbers on the value return you’ll get from transitioning to solar energy. Instead, there are a variety of factors that can lead to a larger (or smaller) return, all of which you’ll want to keep in mind as you run the numbers and decide if it’s worth it.
- Where you live – As mentioned, your location will have a big impact on your solar potential. It will also impact how much buyers value a solar addition, with some areas seeing higher-than-average resale values thanks to solar energy and some seeing lower-than-average.
- The size of your system – Larger solar systems create more energy and are more valuable as a result.
- Installation prices – The average cost of solar installation in your area is a notable cost factor when determining your potential return. It also plays into resale, since some buyers may decide that it’s worth more to them to purchase a home that’s already set up for solar than to pay for installation themselves on a home that’s not.
You have a lot to gain from going solar. If it’s in your budget, consider making the transition and enjoying both big energy benefits and a big increase in your property value.
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