Key takeaways:
Homes with solar sell for a premium compared to homes without solar
Solar energy systems increase the value of homes
Installing a solar energy system increases the value of your home by 3-4%
Homes with solar panel systems sell faster compared to homes without solar
Solar and residential batteries have great Return On Investment with home value increase is factored in
The reduction in carbon offset makes homes with solar more appealing than homes without solar energy systems
Do solar panels increase the home value?
When looking into solar, most homeowners are focused on the economic impact that solar provides. Switching from paying for expensive utility electricity to producing solar power can save a homeowner tens of thousands of dollars.
There are many benefits of a solar-power home that go beyond just the savings on a homeowner's utility bill. Installing solar panels at a home has been proven to increase the value of that home by at least the solar panel system's cost. When you are ready to sell your home, having a solar energy system will also help the home sell significantly faster than a home without solar panels.
Most people who are looking at investments are focused on the return on investment. People in the Financial Independence Retire Early (FIRE) community are a great example of this. What is so impressive about the investment aspect of solar and home solar batteries is the fact that solar has the compounding effective of helping homeowners reduce their electricity bill, protect themselves against electricity rate increases, and helping a home sell for above asking.
How do solar panels increase home values?
When two homes in the same neighborhood or area are listed for sale, every feature and detail of each house will be compared to see what property is more valuable. If one of the houses has a solar panel system and the other does not, the house with the PV system has a definitive financial advantage over the other.
While the home without the solar system will still have a utility bill that will likely increase every year as the utility raises prices, the house with a solar panel system has replaced the electric bill with low cost and sustainable electricity.
Why do home sellers benefit from selling a home with solar panels?
According to a study done by the U.S. Department of Energy's Lawrence Berkeley National Laboratory (Berkeley Lab), solar energy systems increase a home's resale value by around $4,666 per 1kW of solar installed.
In California, we see that the average solar system is around 6.5 kW (this number varies from home to home). If a home has a 6.5 kW system based on the research completed, the sale value of the house could increase over $27,000 because of having solar!
With other solar incentives currently in place and monthly savings on a home's electric bill, a homeowner will not only recover the initial cost of installing the solar system but also will receive a premium that will further improve the value of the solar investment.
Why do homebuyers benefit from buying a home with solar panels?
The home seller is not the only one who benefits significantly from a home's solar energy system. For homebuyers, the ability to purchase a home with no electricity bill can equal savings of tens of thousands of dollars over the 25+ year life of a solar energy system.
Homebuyers can see electrical savings on day one and not worry about putting a down payment on a solar system. The removal of the time and effort that comes from shopping for solar is an additional benefit that is impossible to put a value on for many people!
If you are interested in learning more about how solar can increase your home's value, schedule a free consultation with Alchemy Solar today.