The installation of solar panels or solar batteries may increase the property’s value. This is known by many homeowners, buyers, and appraisers. One study found that solar panels can increase the home’s resale values by as much as $5,911, while another report estimated that it would increase the home’s value by 4.1%.
These figures are derived from where exactly? Consider a Zillow study that shows homes with solar panels tend to fetch 4.1% more than those without. This is an average. There are some locations that have a higher value-add (5.4% in New York City) and others that show a lower value add (2.7% in Riverside, California). A Lawrence Berkeley National Laboratory study shows that each kilowatt installed of solar power has a corresponding increase in resale values of $5911.
Factors That Influence The Value Of Solar Panels
These simple calculations will give you an idea of what your home could be worth, but there are many factors that can affect the value of solar energy. The most important are:
- Geographical location: Different communities have different electrical costs. Higher electrical costs will result in higher solar panel value. Geography can also influence how much sun you receive and the social benefits associated with solar power.
- Prices for local solar installations: Another factor that affects your location is the cost to install a new system. A home with an already installed system will be more attractive to buyers.
- System output As shown in the chart, a larger system that generates more energy will bring more value.
- System age You will need to account for depreciation if you have an older solar panel. Because older systems are more likely to need repairs or replacements, they won’t be worth as much when you sell your house.
- System replacement value The same as system age, the cost of replacing parts in your system can have an impact on the overall system’s value.
Are buyers looking for homes with solar panels?
When determining how much solar panels will increase your home’s value, another question you should ask is how attractive a solar system would be to potential buyers in your area. This will depend on where you live and how solar literacy is there. Simply put, buyers will not be as willing to spend on a solar system if it isn’t clear how solar panels work and what they can do to benefit.
Despite this, data shows that homeowners are generally open to energy-efficiency features. According to the Zillow Group Consumer Housing Trends Report, more than 80% say energy efficiency is a top priority.
The National Renewable Energy Laboratory has previously shown that homes with solar panels sell faster and for 17% less than those without. This information is old and may not be as current as it used to be. However, these data points are still promising.
This post was written by Daniel Massaad, owner and expert solar technician at Energy Solutions Direct! ESD Solar offers knowledgeable and efficient solar panel companies in Florida! Our licensed and certified contractors are masters of their craft; with years of experience servicing the great Tampa Bay area and beyond, the choice is simple. ESD excels at offering you the best in solar value! Check out: Florida Solar Panels Pricing and Incentives