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Solar Panels and Your Home
Many people are currently asking, “Do Solar Panels Increase Home Value?” Installing solar panels and battery storage in your home can increase its value in the real estate market. Explore the facts and options, including cost, available financing, and tax credits. The addition of solar panels and battery storage to your home can optimize the value you receive when you sell it.
There is a good rule for calculating your home value increase when installing solar panels on your roof. For every $1 of savings generated, you can expect to add up to $20 to your home’s market value when you decide to sell. For example, if you save $400 on your electricity bills, you could be adding up to $8,000 of value to your home!
Installing a solar panel system at your home benefits your wallet and the environment. That’s why many states offer tax incentives to those who purchase solar. But the financial benefits go beyond the cost of clicking a “buy now” button on our website. The return on investment for solar power includes selling excess power back to the grid, which will benefit you as a property owner in two ways: You’ll be paid for that clean energy, and you also save more fuel by not having to come out of pocket for utility costs. Green homeowners are often rewarded with higher real estate values thanks to the added curb appeal of solar power at an affordable price.
Installing solar panels in your home can be a significant investment, as it will help save on energy costs by generating electricity and reducing your carbon footprint. Solar energy is free, but the systems themselves cost money to install so they can be an expensive option. Meanwhile, federal and state tax credits have made them more affordable. Raising your property value is another incentive to go solar since studies show an average increase in resale value between $4,020 and $5,911 for each 1 kilowatt of solar panels installed. So with a more minor 3.1 Kw system, you may add up to $18,324 in value to your home.
Help the World with Clean Energy
Installing solar panels is one of the fastest and easiest ways to reduce your environmental impact immediately. In addition to providing zero-emissions electricity to your home, the price of an average rooftop installation and battery pack is generally recouped in the home’s sale price. Plus, households purchasing solar are rewarded with lower energy bills and healthy tax incentives that can cover the system’s costs multiple times over the life of its warranty. At Glyde Solar, we believe that a solar panel purchase is not just an investment in clean energy but also a bet on your home’s future value. Solar panels are becoming as common and affordable as remodeling your kitchen. According to the National Renewable Energy Laboratory, homebuyers across the country are willing to pay a premium for a solar home’s economic and environmental benefits.
Power your Home and Wallet
Solar power is at a turning point in the United States, and now, more than ever before, significant savings on electricity costs are possible. Thanks to lower prices for solar panels and solar systems generally, a host of new initiatives, and federal and state incentives, homeowners can anticipate recovering their initial investment and gaining a handsome return on their investment.
A homeowner can expect to save some money on their electric bill after installing a solar energy system. Still, the value added to a home from solar panels is more than the dollar amounts saved in electricity costs. Homeowners who install solar panels on their homes experience an increase in their home’s value when they sell it. We examine several factors that determine the value-added from the systems and discuss the ongoing savings created from operating these systems. Those factors are as follows:
- Region of the country
- Local price of electricity
- Solar installation prices
- System replacement value
- Environmentally conscious community
- Frequency of power outages
- Age of solar system
- Amount of energy generation
- State incentives
- Local understanding of solar technology and benefits
While energy costs and the energy industry have seen significant shifts over the past decade, home solar panel installation and homebuyer incentives have remained solid in their financial impact. As energy prices continue to rise, we will likely see an increase in incentives for installing solar panels. The current new solar panels offer a return of up to 200% on the sale price value premium.
Reselling a Solar Ready Home
Home solar energy is yours to control while adding property value. Research shows, however, that the wattage generated by a solar installation does not raise the value of a home in a 1 to 1 fashion. So, installing a massive solar array on your rooftop won’t necessarily equal a the same increase in resale value. California property appraiser Willie Wong tells The San Francisco Chronicle that “Homebuyers want to buy energy savings, comfort and functionality – not energy generation equipment.” For this reason, it is critical to choose a solar installation that has been sized correctly. With rebates and other financial incentives available in many markets today, it’s possible for consumers to recoup the costs of installation over time through regular electricity bill savings.
Current studies show that installing a solar panel system on your home not only does it increase the value of your home but also helps your home sell 20% faster when the time comes. More and more buyers are looking for homes ready for solar or already have solar panels installed.
A residential solar system is an investment, and property owners should know how the value of a home with a solar energy system compares to similar homes without solar. Recent trends in sales of existing solar homes show that home buyers value the convenience of not paying for electricity from the utility company. Homeowners should also be aware of the depreciation of their solar panels and how they will affect the value added to their homes.
The Appeal of Solar is Just Beginning
We are witnessing a solar revolution, with market growth and public policy in over 30 states supporting and installing solar. A thorough examination of state solar policies, net energy metering, property tax laws and other federal incentives in all 50 states, Puerto Rico and the District of Columbia. Through that, we’ve discovered the seven best states for Solar Panels.
- New Jersey
- New Mexico
- New York
If you’d like to know more about solar incentives available in your area, check out our state incentive pages!
Installing residential solar panels is a sound investment. Whether upgrading your home for a future sale or making it your forever home, your property value will significantly increase. This added value makes payback periods less of a concern. In addition to the increased property value, you’ll save money and reduce carbon emissions. An investment in solar will help you save money on utility costs and add to your bottom line.