According to the experts at Vivint Solar, installing a solar panel system on your home provides eco-friendly electricity generation while reducing energy costs. But solar panels also deliver a third compelling benefit – increased property value. Multiple studies confirm homes with solar power systems appraise and sell for more compared to similar non-solar homes. Adding an environmentally responsible feature that also lowers utility bills means homeowners can recoup a portion of their solar panel investment when selling.
Documented Value Increase
Research consistently shows home buyers will pay extra for properties equipped with solar panels. Quantifying the exact value increase percentage depends on many factors. But a recent study pegged the average appraisal bump at roughly 3 percent. With the median price for an installed 5 kilowatt solar array around $15,000, a 3 percent increase on a $300,000 home sale translates to a $9,000 higher selling price. Other studies estimate the premium value effect to be even greater in certain markets. Savvy homeowners take this added property value into account when calculating their return on investment from solar installations.
Appeal to Home Buyers
Surveys show most prospective home buyers think favorably about properties advertised with solar power systems. Solar panels signify leading-edge technology, energy cost savings, and an environmentally responsible seller. Solar aligns with increasing consumer sentiment favoring sustainability.
Lower Operating Costs
Home buyers purchasing a solar residence enjoy lower monthly costs than conventional homes. Solar panels reduce or eliminate monthly electricity bills. The new owners continue benefitting from free energy production just as you did. Lower bills free up home buyer budgets while making mortgage payments more affordable. Even if buyers finance the solar panels, their total monthly housing costs are typically lower thanks to reduced utility bills. This advantage drives buyers’ willingness to pay more for solar homes.
Added Home Features
Beyond lower operating costs, buyers are also getting added features that increase enjoyment and long-term value. Solar energy provides a degree of energy independence and insulation from grid outages. Battery storage options allow solar energy use even at night. Smart technology enables monitoring energy production and consumption remotely. Solar power boosts sustainability and smart functionality. Added curb appeal from visible eco-friendly technology also plays a role. The total package holds appeal far surpassing the sum of its parts.
When traditional energy costs are high or rising, prospective buyers view solar power as protection against future volatility and inflation. Locking in lower electric costs reduces financial uncertainty. Dependable returns from utilities savings provide peace of mind to risk-averse home shoppers. Unlike buying when market prices peak, investing in future energy savings via solar panels is financially prudent.
In most cases, solar incentives like federal tax credits transfer to the new owner when a solar residence sells. This ensures the buyer enjoys the same tax savings and quick payback period you did. Preserved incentives mean the value to buyers remains higher. Had solar incentives not conveyed, the property value boost would be diminished. But with incentives intact, new owners are eager to take over the same savings you previously claimed.
Along with slashing utility bills and making an eco-friendly impact, adding a solar system improves your financial outlook when selling your home. The value solar panels contribute to appraisals and offers helps offset the original purchase and installation costs. Given solar power’s many benefits, the investment in these eco-friendly home upgrades pays dividends far into the future. If you have been on the fence about installing solar panels, this value enhancement impact may help tip the scales in favor of going solar.