The popularity of home solar panels is on the rise, and homeowners are consistently making the switch to solar across the country. When choosing solar energy, many people often wonder whether solar panels increase home value, and if they do, by how much.
Let’s explore the impact of solar panels on property values, the factors that influence this value, and the benefits of having solar panels on a home.
How Much Do Solar Panels Increase a Home’s Value?
The value solar panels add to a home will vary based on several aspects, including the size of the home solar system and the local real estate market. However, solar panels can increase a home’s value by an average of 3% – 4%. For example, if a home is valued at $450,000, the value could increase by $13,500 to $18,000 with the addition of solar panels.
How Do Solar Panels Increase Home Value?
Solar panels can help increase home values in various ways. First, since solar panels can help reduce energy costs, they are an attractive feature for prospective buyers thanks to the long-term financial benefits of lower utility bills. Secondly, solar energy is still a relatively new technology that not everyone has adopted yet. Thus, solar panels are a distinguishing feature that helps homes stand out from others on the market that don’t have solar.
Finally, a growing number of people are looking for ways to be more sustainable and environmentally friendly, so they may be willing to pay more for a home already set up to be better for the environment.
Factors That Impact the Added Value of Solar Homes
While solar panels generally increase a home’s value, several key factors influence how much solar increases home values. Homeowners should consider all of these factors to better understand the potential impact of a solar installation on their property value.
Local Electricity Rates
The cost of electricity varies from location to location and can be significantly higher in areas with large populations. With high and often varying electricity rates, solar panels become more valuable for their locked-in rates and ability to lower utility costs and reduce a home’s reliance on the electrical grid.
Additionally, some local utilities offer net metering programs, which help influence local electricity rates. These programs allow homeowners who have installed solar to send excess solar electricity back to the grid in exchange for credits toward their electric bill.
While solar panels increase home value wherever installed, they tend to add more value in places with ample sunlight and a strong solar infrastructure. Additionally, areas that offer generous solar incentives and strong net metering policies can also be attractive to prospective buyers and help increase the value of a home.
When a home solar system generates more electricity than the homeowners can use, that excess energy flows back to the electrical grid and isn’t beneficial to the homeowner any longer unless there’s a net metering program involved. However, when the solar panels are installed with a solar battery, the extra generated energy is stored in the battery. It can then be used at night when solar panels aren’t producing energy, at times of high electricity prices, or during grid power outages.
A solar panel system paired with a solar battery can enhance the value of a home because the house will always have accessible power, and prospective buyers can have peace of mind that their potential home won’t ever lose electricity.
Condition of Home Energy System
A well-maintained home solar system can add more value to a home than an outdated or poorly functioning system. Solar panels require very little maintenance so as long as the homeowner stays on top of scheduling maintenance appointments as needed, the system will remain in good condition whenever they decide to sell.
Owned vs. Leased Panels
When people consider installing solar panels, they can usually choose to buy them outright or lease them from a solar leasing company. Homes with bought panels typically add more value to a home since the homeowner is not liable for monthly payments like with leased panels. Additionally, having leased solar panels reduces the overall financial benefits of solar panels in homes since payments offset the cost savings of lower utility bills.
Current Solar Market
As solar energy continues to rise in popularity, states are offering incentives, rebates, and tax credits that benefit homeowners who install solar panels. As the solar market thrives, homeowners with solar panels will likely see an increase in their home values.
Do Solar Homes Sell Faster?
In addition to solar panels increasing home value, homes with solar often sell faster than those without. According to a National Renewable Energy Laboratory study, solar homes sell 20% quicker and spend less time on the market than nearby comparable properties.
So, is it harder to sell a house with solar panels? No, it’s not. Solar homes are more attractive to prospective buyers thanks to reduced energy costs, environmental sustainability, and the potential for long-term energy savings. This makes these properties more in demand as buyers seek these homes.
What Are the Benefits of Solar Panels on Homes?
While solar panels increase home values and lead to faster selling times, there are several other benefits to having a solar home.
Solar energy is a clean and renewable resource that does not produce greenhouse gas emissions or air pollution. Installing solar panels on homes helps reduce a homeowner’s carbon footprint and contributes to a more sustainable and greener future.
Since solar panels allow homeowners to generate their own home energy, it reduces their reliance on polluting and more expensive energy sources, and gives them more independence and control over how they power their homes. When paired with a battery as part of an Energy Storage System, this home energy independence also gives homeowners a sense of security and peace of mind that they can keep the lights on and appliances running during a power outage or grid disruption.
Government Incentives and Tax Credits
There are many local, state, and federal rebates, incentives, and tax credits available for those who switch to solar energy for their home. One of the most popular is the Federal Solar Tax Credit, which allows homeowners to claim 30% of the solar installation cost on their taxes for the year the panels are installed.
Charging for Electric Vehicles
Electric vehicles (EVs) are becoming more popular in the automotive industry, and some states are already enacting laws about only registering EVs by a specific date. If homeowners want to charge their electric vehicles at home, a home solar system acts as an ideal solution. Solar panels can charge EVs and power houses simultaneously if the system is large enough to accommodate both.
How Will Solar Attract Eco-Conscious Buyers?
Homes with solar panels are attractive to all prospective buyers, but they strongly appeal to eco-conscious buyers who prioritize sustainable living and take their environmental responsibility seriously. Here are a few ways home solar systems attract individuals who care about the environment.
Eco-conscious individuals have a strong passion and drive for protecting the planet. They are deeply committed to minimizing their environmental impact and reducing their carbon footprint and always looking for ways to do more for our earth. By purchasing a home with solar panels, they lead by example and have found an opportunity to live a more sustainable lifestyle.
Renewable Energy Advocacy
Environmental advocates are always championing clean, renewable energy and actively support the various ways it can be adopted. Eco-conscious buyers are interested in purchasing homes with solar panels because they understand the importance of solar panel benefits, contributing to the growth of renewable energy, and leading by example to inspire others to follow suit.
Owning a solar-powered home represents a commitment to sustainable homeownership. Eco-conscious buyers demonstrate their dedication to making environmentally responsible choices, and they actively contribute to a greener future by purchasing homes with existing solar panels. Solar-powered homes are also attractive to environmentally friendly buyers because they allow them to actively shape a cleaner and more sustainable world for future generations.
Solar panels can increase home values while providing numerous benefits to homeowners. For further questions regarding home solar systems, reach out to the team at Qcells today. We are happy to answer any questions, address concerns, and provide additional insight into our top-performing solar and storage solutions.