Does Solar Increase your Home Value?

The benefits of solar are numerous. Installing solar results in your home using less energy from the utility because you are replacing that energy with solar produced on your rooftop. This saves money on your energy bill and protects our environment by reducing the home’s carbon footprint. All this good stuff has led many Seattle area home owners to invest in solar. But, what many people have not yet caught on to is that solar panels also increase the resale value of your home.

A recent report from Zillow shows that homes with solar panels are increasing home values on average of 4.1% across the country.

A multi-institutional study led by the Department of Energy’s Lawrence-Livermore Labs, in partnership with Sandia Laboratories, universities, and appraisers found that,

“Home buyers consistently are willing to pay more for homes with host-owned solar photovoltaic (PV) energy systems—averaging about $4 per watt of PV installed—across various states, housing and PV markets, and home types.”

This equates to a premium of about $15,000 for a typical PV system.

 

 Installing solar panels on your home can increase its value, but only if you own the system. If you install a solar panel system through a lease, you are essentially “renting” it from the third-party owner. Since you don’t own the system, it cannot be included in assessments of your home’s value.

Who is Buying?

In a 2017 study, Deloitte found that consumers are showing more and more interest in solar power. Millennials, in particular, are driving this trend. The study shows that almost two-thirds (64%) told said they are either “extremely” or “very” interested in installing solar panels – a 611% increase over last year. More than half of them are “extremely” or “very” interested in participating in a community solar installation. Despite both overt and covert hostility to renewable energy at the federal level, the study found 37% of consumers say “increasing the use of solar power” is their No. 1 priority in term of energy generation. The report also reveals that almost 60% of consumers said they would switch electricity providers if they could gain access to renewable-energy sources.

 

In Conclusion:

The data is in and it clearly shows that solar panels add value. The key is communication. It’s important when buying or selling a home with solar panels to work with agents and appraisers who can interpret and articulate the added value. Make sure that you select an agent who understands and can speak solar, so that they can translate the numerous benefits into tangible benefits.

This blog was originally written for Sun Path Electric.