There’s a lot of debate about whether or not installing solar panels increases home value. Some people say that they do, and some people say that they don’t. So, what’s the truth? The answer might surprise you! In this blog post, we will explore how installing solar panels in your home can increase the value of your property.
Some Statistics on Solar Panels and Your Home
In general, installing solar panels will increase the value of your home. According to a study by the National Renewable Energy Laboratory, homes with photovoltaic (PV) systems sell for an average of 4.1% more than comparable homes without PV systems.
Not only does this mean that you’ll recoup the cost of your investment when you sell your home, but it also means that you’ll have equity in your home from day one. And as utility costs continue to rise, the value of your solar-powered home is only going to go up.
It’s also worth noting that solar panels can make your home more attractive to buyers. Studies have shown that 70% of buyers would pay more for a home with solar panels, even if they didn’t plan on using them. And since most people are interested in saving money and being eco-friendly, it’s not surprising that solar panels are becoming increasingly popular among buyers.
Solar Panels and Home Value: The Basics
To understand how solar panels can impact home value, it’s important to understand a few things about how home value is determined. Generally speaking, home value is based on three things: location, square footage, and amenities.
Location
Location is probably the most important factor in determining home value. A house in a desirable neighborhood will almost always be worth more than a house in a less desirable neighborhood, all else being equal. Solar panels can’t do anything to change a house’s location, so they’ll only have a limited impact on home value if the location is the only thing that matters.
Square Footage
Square footage is the second most important factor in determining home value. Again, all else being equal, a bigger house will be worth more than a smaller house. However, solar panels take up some space on the roof (usually about 10-20 percent), so they will actually decrease the amount of usable square footage on a property. Therefore, if square footage is the only thing that matters, solar panels could actually decrease home value.
Amenities
Amenities are anything that make a property more valuable or desirable beyond its location and square footage. These could be things like a swimming pool, stainless steel appliances, or—you guessed it—solar panels. So if amenities are what matter most when determining home value, then solar panels will definitely help increase home value.
Other Factors That Can Impact Home Value
It’s also important to keep in mind that there are other factors beyond location, square footage, and amenities that can impact home value. For example, if there’s currently a glut of houses on the market but not enough buyers to snap them all up, then prices will likely go down—solar panels or not. Similarly, if there’s an economic downturn or housing crisis (like we saw in 2008), that could also lead to decreases in home values regardless of whether a property has solar panels or not.
There are a few reasons why solar panels tend to increase home values. First of all, they can save homeowners money on their energy bills. That’s because solar panels allow homeowners to generate their own electricity, which can offset the cost of electricity from the utility company.
Solar panels can also qualify homeowners for state and federal tax credits. For example, in California, homeowners who install solar panels may be eligible for a property tax exemption of up to 100% of the added value that the solar panel system adds to their home. Oregon solar costs are slightly offset depending on where you live as each county offers different potential credit if you go solar.
Finally, potential homebuyers may be willing to pay more for a home with solar panels because they know that they’ll be saving money on their energy bills in the long run. Solar panel systems usually have a payback period of 3 to 8 years, so potential homebuyers will likely factor that into their decision when considering whether or not to buy your home.
Conclusion
If you’re thinking about installing solar panels, there’s good news—solar panels do tend to increase home values. That’s because they can save homeowners money on their energy bills and qualify them for state and federal tax credits. Plus, potential homebuyers are often willing to pay more for a home with solar panels because they know they’ll be saving money on energy costs in the long run. So if you’re looking for a way to improve your home’s value, installing solar panels is certainly worth considering.