Do solar panels increase home value? This is a question that many homeowners ask themselves. The answer, thankfully, is yes! Studies have shown that the installation of solar panels will increase your home value and make it more attractive to buyers when you decide to sell. Not only do they produce clean, renewable energy while reducing the cost of electricity bills, but they also make your house more attractive to potential buyers. There are also other benefits to installing solar power in your home. In this blog post, we will discuss how do solar panels affect the price of your house and why they are such an excellent investment for any homeowner.
Solar Panels Increase Home Value
In recent years, homeowners have been flocking to solar panels at a rapid pace. The reason is simple: it’s affordable, renewable, and helps cut down on the cost of electricity. In fact, installing solar panels can increase your home value. But by how much? Let’s break it down.
Factors that Affect Home Value Add
There are many factors that play into exactly how much value will be added to your home with a solar panel installation. These include:
- Location of your home or business
- Regional electricity prices
- Cost of solar installation
- Replacement cost of system
- Occurrence of power outages
- Date purchased
- Energy generation amount
- Solar panel efficiency
- State and local incentives
- Solar panel ownership or leasing
- Electricity bill savings
It is safe to say that solar panels will increase the value of your home but how much it will increase varies.
When considering a solar panel installation, it is important to do your research and look at the factors that we mentioned. These will help you determine how much value adding a solar panel will do for you.
How much does solar increase home value?
It is difficult to come up with a concrete answer to the question. However, several studies have been done across the US that can give us a ballpark estimate of what to expect.
A study by Lawrence Berkeley National Laboratory found that installing solar panels increased average home prices $15,000-$20,000. Though an upfront investment, it’s worth considering as an investment over time. Who knows how much our world will change in 10 years from now! But for now, there’s no better time to install solar panels.
Calculating Solar Powered Home Value
Researchers estimate that home value increases of about $20 for every dollar saved on annual energy costs.
In order to quickly calculate how much more your home could be worth with solar panels, you can multiply yearly energy bill savings by 20-25 year lifetime of solar panels. the average American family of four has a monthly energy bill of $120. That means there is a potential amount of savings of $1440 per year. Times that by the 20-25 year lifetime of solar panels and you are looking at an estimated home value increase of $28,800. That is not including other benefits and tax incentive programs. This is a pretty attractive offer.
For example, if the average energy bill for your home is $170 then you could estimate a home value increase of $.
Do homes with solar sell faster?
Solar powered houses typically stay on the market for a different length of time than houses that still use traditional power. Solar panels can help your home sell faster.
A solar energy installation will help sell your home 20% faster than residences without solar panels. Why?
Everyone and their mom would love to stop paying such high electricity bills. Any property listed for sale is required to list the Energy Performance Certificate (EPC). People are starting to care more and more about a home’s EPC score because energy prices are rising and there is no telling when they will stop.
With a solar panel installation, you will receive a better EPC score. Therefore, your property will become more attractive to buyers. Not only that, the added incentive is that they will immediately get the benefits of living with solar without having to go through the hassle of installing them.
