There are many benefits to installing solar panels. One of these is an increase in your home’s value. A solar energy system is attractive for potential buyers and many will pay more for a home that is equipped with one. In general, solar panels increase home value, although the amount depends on a variety of factors. Below are the reasons why do solar panels increase home value.
Why Do Homebuyers Pay More for Solar Panels?
Solar panels are an attractive feature for homebuyers because they save the occupant of the home money on their electricity bills. There aren’t many home improvements that save money over time, but solar panels present one of these rare opportunities. The return on investment is excellent, both in terms of home value and monthly savings.
Homebuyers are often eager to buy a home with a system installed because it means they can start taking advantage of the savings right away. According to Zillow, 80% of buyers consider energy-efficient features (such as solar power) when purchasing a home.
Another reason potential homebuyers are interested in homes with solar panel systems is that they are better for the environment. Modern consumers care about the planet and solar energy is a way to go green with minimal effort.
How Much Do Solar Panels Increase Home Value?
The increase in home value from solar panel installation varies depending on energy costs, system quality, system age, and a variety of other facts. However, various research has collected data that give a general idea of the range.
Data from Zillow shows that the average increase in value from solar panels is 4.1%. For a median-value home, this translates to an extra $9,274. The economic research team for Zillow collected this data for homes listed from March 1, 2018 to February 28, 2019. The researchers controlled for other observable attributes, such as the square footage, location, age of home, and the number of bedrooms/bathrooms.
Another study from the US Department of Energy’s Lawrence Berkeley National Laboratory (Berkeley Lab) found that buyers were willing to pay a premium of up to $15,000 for a home with 3.6 kilowatts. This equates to about $4 per watt of solar power. This study was conducted in 2013.
What About Property Taxes?
In most cases, an increase in the value of your home would also mean an increase in your property taxes. However, Arizona has a property tax exemption for solar panel systems. This means that you won’t have to pay more in taxes due to an increase in home value from solar installation.
Make the Switch to Solar
With so many benefits, there’s no reason to wait any longer to install solar panels for your home. Our clients have been able to save 33% or more on their energy bills with our systems and we can typically complete installation within a month.