Do Solar Panels Increase Home Value? The short answer is yes, installing solar panels can increase the value of a home by as much as 4.1% over comparable homes that do not have solar panels. (Source: CNBC).
The topic of real estate market conversations revolving around property values has increased more than ever.
A statistically significant increase in home values was foreseen in 2020 despite the pandemic. However, the fast rising home values in some areas of the country is staggering.
It is inevitable that the market will eventually correct itself, therefore choosing the proper home projects will become increasingly important. In order to get a good return on investment for your home, you need to be sure that the improvements increase the value of the property.
Installing solar panels, updating your kitchen, or adding an outdoor patio are some of the ways to enhance your property. We stated that a solar panel system can increase your home value but there are several factors to consider. Read on to find out more.
Factors that affect property value
As a result of the basic principle of supply and demand in the market, property values have surpassed expectations over the past year. As more and more people realized that they could live and work anywhere, they became more and more drawn to the suburbs.
It is believed that most sellers chose not to sell in the face of the pandemic and chose to wait it out. In addition to the very low interest rates, you also have people who want to buy, and a very small inventory available for them to purchase.
A lot of local factors also play a part in determining the value of a home. For example, a new school that is currently being built will be a good attraction for young families. When that happens, the value of housing increases.
Property values in your neighborhood can fall if you have an old rundown home next door.
It is also important to take into account the market demand when it comes to property values. Buyers are looking for certain amenities when shopping for a house, such as a fireplace or a kitchen with an open concept layout. You can get more for your home if these items are in your home.
How much do solar panels cost to install?
After federal tax incentives, the average cost of installing solar panels in the United States is about $12,000. Smaller systems can be installed for around $5,000 and more complex Tier 1 systems can cost $40,000 or more. (Source: Consumer Affairs)
A project that involves installation involves additional costs beyond the cost of the panels. Actually, the panels only make up about 25% of the total installation costs. In addition to labor costs and operating expenses, additional equipment, such as inverters and control circuitry, also contributes to the price.
A solar energy company installs solar panels, maintains the panels and provides warranties with the work. Although not free, these additional services are often worthwhile. Prices for solar panel installation can also be affected by other factors.
Since there is a large upfront cost, many homeowners choose to finance the cost. Many companies that provide installation services can help you to arrange financing for the project.
How many solar panels are required?
To achieve full energy independence, most homes require 25 to 35 panels.
For example, one solar panel produces roughly one kilowatt-hour (kWh) per day, so if you consume 30 kWh per day, you will require 30 solar panels to produce all of your energy. It increases your energy costs if you have to heat a pool or run your air conditioning for most of the year.
How much do solar panels add to the value of a house?
In order to calculate the solar panel ROI, you must understand what goes into property values. It has been determined that solar panels increase the value of a home by 4.1% according to a Zillow study.
Solar panels have a high return on investment for two main reasons. People are becoming more aware of the fact that home energy costs are skyrocketing and they have a tendency to take actions to lower them. In this regard, solar panels are being seen as a way to offset those costs for the time being and in the future as well.
Another reason is that solar panels have attracted a high level of interest among the general public. This means homebuyers can benefit from solar energy without undertaking an installation project themselves.
You can expect your property value to increase after installing a solar panel system, but is this a guarantee? As to whether your home will receive any benefit from solar panels, it depends on whether you decide to lease them or purchase them outright.
A non-transferable lease may prevent you from selling your house. It is possible that a home buyer will be reluctant to assume the lease if it is transferable.
Having a good solar installer that gives you ownership of the panels instead of having to lease them is the most important thing you should do.
How does owning a house with solar panels compare to buying one without?
Although many home buyers may fret that their new homes will be costlier because of the addition of a solar panel system, the good news is that their presence will definitely be more beneficial than negative. In most cases, solar panels are seen as an excellent return on investment, and since their upfront costs are normally much higher, having them already in place may not require any further investment beyond simply raising the asking price.
It has been reported that investing in solar power is one of the best things anyone can do to help the environment. There are many benefits of solar panels in terms of reducing your electric bills and fostering energy independence, although they are not so practical if you are planning on moving anytime soon. Be sure that all panels at your new house are in good, working order by inspecting and/or servicing them before you move in. Just like any other component of your home, solar systems should be inspected carefully.
You should also make sure no trees are blocking the sun from reaching the panels. The maintenance history of your array should also be gathered. Additionally, do not forget to check into the possibility that a solar installation may have resulted in an increase in property taxes. It is likely your tax bill will be higher after a solar installation. Even so, you can rest assured that you are doing something to help the environment.
Do Solar Panels Increase Home Value?
The installation of solar panels is a great way to lower the energy costs in your house as well as adding value to it at the same time.
Could solar panels add value to your home? If you live in an area with high energy demand and own the solar panels upon installation, they can definitely add value to your home.
Installing solar panels can be an excellent investment.