Is your Home Worth more with Solar? | PremierImprovementsOne.com
Updated: Dec 4, 2021
Everywhere you look, solar panels are becoming more common--on local businesses, schools, and even your neighbor's home. This is a clear sign that the solar revolution has taken root. The United States added 905 megawatts of solar energy in the first three months this year. This is an 11 percent increase over last year and enough to power almost 172,000 homes. You might still be pondering whether you should add a home solar system to your home. There is evidence to show that harnessing the sun's energy is not only beneficial for the environment, but also a great long-term investment in your home.
The Solar Home Premium
Zillow's research shows that solar panels can increase the value of your house, sometimes significantly. Zillow conducted a comparison study and found that homes equipped with solar energy systems sold at 4.1 percent higher prices than homes without them in 2019. The magic panels added $9,274 to the country's median home value of $226,300. Zillow analyzed all sales of homes over a year and determined which listings had solar. They also took into account the home's age, size, location, market value, and the time of year it sold.
As with most things in real-estate, the amount of solar energy you get will depend on where you live. Zillow discovered that New Jersey, Pennsylvania and North Carolina have the highest solar premiums. Solar-clad homes in New Jersey sell for 9.9 percent less than homes without solar, an average of $32,281. (See the top 10 states with highest solar premiums).
Zillow discovered that New Jersey, Pennsylvania and North Carolina have the highest solar premiums.
The most popular markets include New York City, Florida, where the solar premium is 5.4%; Orlando, Florida, where the premium is 4.5% statewide; and San Francisco, which has a 4.4 percent premium or an increase of $41,658 on the median home price of $955,000. Zillow points out that no U.S. metro area saw its home values fall due to solar panels, although some states (like Utah) didn't have sufficient data to cover the study.
Why is it that houses equipped with solar energy systems sell for more than those without?
Clean Energy is a tempting Proposition
The key reason why home values have risen is because more buyers recognize the many benefits of renewable energy, especially the energy cost savings. Installing solar can help you reduce your monthly electric bill, or even eliminate it altogether. Sunrun, one the largest U.S. residential-solar companies, claims that customers who lease solar panels can save anywhere from 10-40 percent on their utility bills. The fixed price of the solar contract is typically lower than utilities rates. Going solar provides more predictability in your bills and allows you to lock in your monthly rate. This protects you against any future price increases due to volatile energy markets.
The savings are even greater if you own the panels. According to studies, the average American solar buyer sees a return of investment of 20% or more. Most solar panels can also be paid for many times over their lifetime (often tens of decades). The upfront cost of panels is not as high if you are eligible for tax credits and rebates on solar panels. EnergySage estimates that the average home solar system will cost $18,300 without tax credits, and $12,810 with tax credits.
...most solar panels systems are able to pay for themselves many times over their (often long-term) life span.
Individual values are driving people to take the leap to solar power. They want to live a cleaner and more sustainable lifestyle in light of the climate crisis. A typical residential solar panel system can reduce carbon emissions by three to four tons per year, which is equivalent to planting more than 100 trees each year. Zillow's Sarah Mikhitarian said that more than 80 percent of potential buyers believe energy-efficient features are essential in choosing a home. These attributes are becoming increasingly important to potential homebuyers, according to Zillow.
Lease or Buy
The final decision on whether or not solar energy is worth it depends on many factors, including the shape and amount of solar radiation that your roof receives, as well as the cost of electricity in your region. Solar panels can be more cost-effective if homes are bigger or consume more energy. Google's Project Sunroof can help you estimate your potential solar savings based on factors such as roof shape, electricity rates and weather patterns.
You should also consider whether you plan to purchase the panels or lease them Often, there is no down payment. The best thing about solar leasing is that you don’t need to pay a lot upfront. Reports that more than 85 percent customers don't buy the system directly, but instead pre-pay a fixed amount and then pay monthly service plans. You have two options when you are ready to sell your home: either you can buy the lease outright or you can get help from a solar leasing company in finding a buyer for the lease.
An estimated 13.4 per cent of U.S. homes will have a residential-solar system by 2030. However, this number could rise and should be increased in the future. Solar is becoming mainstream and panels are an important part of assessing the value of your home. Consider adding a solar array to your home the next time that you are thinking about renovating your kitchen or finishing off your basement. This could be one of your best investments in your home.
At Premier Improvements, We can handle all of your needs from the Design, Permitting, Installation & Inspection of both Residential and Commercial properties. With Solar Tax Credits still available it's a perfect time to start moving forward to your financial freedom from the Utilities. Servicing All of the Connecticut and Massachusetts as well as Rhode Island we are always here to help you and answer any Questions you may have. Give us a Call @ (860)969-4006 or visit our website @ PremierImprovementsOne.com for additional info.