Does Solar Increase the Value of Your Home?
Many solar customers are interested in making the switch based on two key selling points:
1. Environmental Awareness: utilizing renewable energy
2. Value: Saving money on their energy bill and potential for a higher ROI (return on investment) when selling their home.
While the immediate value proposition helps to save you few bucks a month on the energy bill, homeowners know that a solar array can increase the value of a home – now and in the future, if they want to sell. Through multiple studies between 2010 and 2018, home values with solar arrays are estimated to show a $15,000-$20,000 increase in value. MLS (The multiple listing system) is now allowing new home postings to include information on applicable PV systems installed to factor into the value of the home during an appraisal.
Homes are also likely to sell faster is a solar system was already installed and factored into the price of a home. Buyers were more likely to choose a house with a solar array install over other comp-homes in the area without solar. Some other interesting findings include: the aesthetics of a PV solar array were not identified as an obstacle to purchasing and the resale value was not damaged by the presence of a solar system.
If you do make the investment to add solar to your home, it’s money in the bank. With the cost of a typical system, you will more than likely make back most (or ALL) of your investment when you sell your home.
Location Can Dictate Value/Cost:
The California market differs from the NY solar market, and energy pricing all over the US can change drastically from state to state so always keep this in mind. Higher energy costs can mean higher home value for homes with solar during the appraisal process. When appraisers consider the role of a PV system in the calculation of a home’s value, electricity produced by the system can be considered income. This does not affect all solar customer, in fact the number of people that turn these earnings into something taxable is a very limited group. Be sure to track the energy you are selling back to the grid to save yourself the stress of an unexpected letter from tax collectors!
Beyond the need for more data on how third-party owned PV systems affect home resale value, these types of systems present their own unique complexities in the home sale, such as the need to transfer a PPA or lease to the buyer.
Size, Scale and Age of your System:
One factor found to affect resale value was PV system size. A property’s selling price was very dependent on the size of solar system, but the value also corresponded to the capacity of the system or how much energy it generates. Older systems can generate much less power while taking up the same footprint as a more efficient newer system.
Have you thought about powering your home with solar?
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