Do Solar Panels Increase Your Property Value?
Sure, the surge of solar panel popularity has seen this sustainable source of energy become one of the most popular additions to many homes across the nation. But, with what can sometimes be a large investment right out of the gate if you are purchasing your solar panel system outright, the question needs to be asked: Do solar panels increase property value?
Those looking to install solar panel systems, or already have panels installed on their homes, are in luck. There have been several studies done on the subject, and they have all found that homes fitted with solar power panel systems have a trend of selling for a higher price than comparable homes within the same area. The average value added seen through these studies shows about a 5% increase of value added by solar panels. The numbers from a 2019 study showed that homes with an average price value of $200,000 were seeing solar panel systems increase their value by about $6,000-$10,000!
There are, however, some other factors that can go into how much of an increase in value solar panels can give your home.
Home Value Factors For Solar Panels
There are a few different factors that go into how much a solar panel power system can enhance the value of your home. These include things as basic as which state and city you live in to specifics about the solar panel system itself.
Where you are located plays a large role in how much value is added to your home. One reason for this is the solar market. Homes in places with vibrant and active markets like New Jersey and California can expect to see more value added than homes in places where the solar panel market is less developed.
How many solar panels your roof is able to accommodate can play a large role in the value a solar system will add to your home. The larger the solar panels on your home are, the more power they will be able to produce, and the amount of power produced is key for added value. A study done by a Berkeley lab came to the estimation that when it comes to solar panel systems, larger, high-quality panels can add a value of about $5,911 for each kilowatt.
While the amount of panels you have impacts value, the quality of the panel you have matters as well. In order to get the most out of your investment when it comes to solar panels, it is important to make sure you invest in quality panels and solar technology.
The Details: Average Energy Use, Savings
You can do a simple cost-benefit analysis of your home’s value with a solar panel system by looking at your energy bill. Because electricity has a different cost in different areas, the value of your home can fluctuate depending on where you are.
Before you invest in a solar panel system, you can figure out what kind you will need to make a sizable increase of value to your home. To do this, look at how many kilowatts your home is using an hour, then you can better estimate what kind of, and how many panels you will need to offset this energy use. Typically, solar panels cost roughly $5 per watt, with a 300 watt panel producing around 9 kilowatts per hour.
Contact us today with any questions regarding solar panels and property value!