There are many reasons to consider making the switch to solar power. For one thing, traditional grid-based power isn’t doing our planet any favors. In most parts of the United States, coal and other fossil fuels are still the most-common sources of electricity generation, creating substantial negative effects for the environment and human-health. And, considering that the average cost of electricity is on the rise, with an expected increase of 1.3% between 2021 and 2022, free power straight from the sun is certainly an enticing prospect. And then there are the federal solar tax credits to consider.
But what about the value that solar energy can bring to your property?
Do Solar Panels Increase Home Value?
In a word: yes. Solar panels and the advantages they represent can provide a significant boost to property value. In fact, according to research by Zillow, in 2019 homes with solar-energy systems sold for 4.1% more on average than similar homes without access to solar power (amounting to an additional $10,000 in terms of median-valued homes).
And it’s not difficult to see why; prospective home buyers are just as likely to be interested in the environmental and cost-savings advantages of solar energy as any homeowner. Installing a solar-power system in a home shows buyers that they’ll enjoy a faster return on their home investment, while also creating a smaller, more-manageable carbon footprint.
What Factors Affect How Much Solar Increases Value?
Do solar panels increase the value of your home? In most circumstances they do. Substantially. Of course, adding a few solar cells isn’t some magic bullet to instantly boost equity; there are a number of factors that play a role in determining just how much value solar power can bring to your property. These include the following:
The price of electricity is on the rise throughout the country, but that doesn’t mean that every state is seeing the same increase. In states where electricity is not climbing as significantly, the demand for home solar panel systems may be slightly less. At the same time, government-offered incentives for switching to solar power may vary based on location.
Reliability of local grid
In areas where the local energy grid may be outdated or otherwise incapable of handling mounting demand, solar-enhanced homes take on increased value. Battery-backed solar systems offer stability and reliability during power outages, so that homeowners can continue to enjoy free-flowing electricity even when the grid goes offline.
Size of home
Typically, larger homes go for more on the market, and a larger solar-enhanced home is naturally likely to see a similarly proportionate increase in value. That said, larger homes also have increased energy demand, possibly outpacing the capacity of a standard solar PV system. As such, in some cases a larger home may not see as much of an equity boost from solar.
Age of solar panels
Solar power is a growing technology, with newer designs allowing for increased efficiency. This is great news for homeowners who are interested in installing a new system, but it can also mean that older systems may be less effective, and offer a less-significant increase in property value. Additionally, newer panels usually need less maintenance, and will have more time left on their warranty than older systems.
How much energy it saves
In the end, it usually comes down to this: How much energy is the home drawing from the power grid? The more that the new solar panel system can demonstrate a noticeable reduction in metered energy use, then the greater value it brings to the property.
Do Solar Panel Homes Sell Faster?
Although there are many factors in determining how quickly a home sells, when buyers are actively looking for homes with solar, it’s safe to say that they are more eager to commit when they find them.
How much more eager? Again, this can be difficult to quantify, but it’s generally accepted throughout real estate that solar homes sell ~20% faster than non-solar properties. In other words, if you don’t want your property to languish
on the market, then installing solar panels can help ensure a faster turnaround.
Do Bigger Installations Further Increase Home Value?
It may seem counterintuitive, but studies show that larger solar installations don’t necessarily offer a proportionate increase in equity. This is good news for home sellers; it means that as long as the solar-power system is sufficient to meet the energy needs of the home, it will provide enough of an increase in property value to offset the cost of installation. Gigantic, over-the-top solar arrays aren’t necessary.
How to Get Started with Solar
8MSolar, the highest-rated solar panel installer in Wake Forest, North Carolina is eager to work with you. Our dedicated experts will guide you through the entire process and help you discover the best payment options and panel configuration, so that you can sit back and enjoy the ideal solar solution. 8MSolar installation professionals will also handle all interconnection agreements, permits, inspections, installation, and even work with your HOA to ensure that everything is up to standards.
A smaller carbon footprint, easy access to inexpensive power, and increased property value — there are a lot of reasons to make the switch to solar power. 8MSolar offers easy-to-maintain solar-energy panels backed by a 25-year, 92% guaranteed-output warranty, so you (or those who buy your property) can enjoy maximum solar-energy performance for years to come.
Interested in getting started? Contact us today for a free virtual consultation.