Are you concerned about whether the installation of solar panels will have a positive value on your home?
Solar panels can add value to your property. You don’t have to overthink it, especially if you go solar in Orange County. We will discuss the ins and out of home value increases due to adding solar panels. Many people looking to buy or rent property opt for homes with installed solar panels.
So, how much will your home value increase in 10 years? Installation of solar panels has grown in the last five years in popularity and it has been attributed to protecting the environment and saving on electric bills.
Different regions have different property rates, hence the question; Is there a guaranteed rate of home value? Remember that self-installing solar panels is not advisable, especially if you are going to be doing a roof installation.
- How Much Do Solar Panels Increase Home Value?
- How do Solar Panels add Home Value?
- Are Home Buyers Looking for Homes with solar panels?
- Advantages and Disadvantages of Buying a Home with Solar Panels
- Property Taxes
- Are Solar Panels Worth it for Residential Homes?
- FAQs on Home Value Addition by Solar Panels
Before installing a residential solar system, you may stop to wonder: Do solar panels increase home value? The answer is a resounding yes.
Here, we’ll go over how many solar panels can increase the value of your home, as well as how that increased value affects property taxes and whether buyers are looking for homes with solar systems.
With this knowledge, you can make an informed decision about whether solar panels add value to your house.
How Much Do Solar Panels Increase Home Value?
Many homeowners, buyers, and appraisers know that installing a residential solar system can increase a property’s market value and give it a guaranteed rate of home value.
You need to understand that solar ROI is huge and worth it. So when you think of installing your solar panels, make sure that you find a professional solar company for solar quality installation services to ensure that it is done correctly and will generate the most value.
In addition, a study confirmed that solar installations could increase a home’s resale value by 4.1% of the home’s value.
Where do these figures come from, exactly? To begin with, consider that homes with solar installations tend to sell for about 4.1% more than homes without. A research study from Lawrence Berkeley National Laboratory reveals an increase in the resale value of approximately $5,911 for each kilowatt of solar power installed.
So, how much do solar panels increase home value? Let us go through a chart that outlines the average figures that increase the home value:
|Home Solar System Size||Average Amount Solar Panels|
Increase Home Value*
*Figures based on a study by Lawrence Berkeley National Laboratory.
Note that these amounts are roughly in line with the total cost of a solar panel system, which may just be the incentive you need to take the plunge into solar power finally. The solar ROI is worth every penny that you invest.
So, what is it that contributes to the home value addition when you invest in the solar system?
How Do Solar Panels Add Home Value?
Installing your solar panels is the best financial decision you will ever make. Not only will you save on energy consumption, but you also can earn more money with the extra energy sent to the grid. It’s impressive that your utility company can pay you for extra energy transmitted to the grid.
Further, you can apply some energy-saving tips such as switching off the lights that are not in use; it will help you in getting a further reduction in your electric bills. Finally, several factors influence the value-add of solar panels. Some of the most common include:
Note that different regions in the U.S.A have diverse electric costs. Therefore, depending on where you live and the cost of electricity, you can rate the value that a solar panel brings to your home.
In addition, geography can influence the amount of sun exposure you get and the social benefits of installing solar power. For example, Orange County in California has many people investing in solar annually because of the amount of premium sun the area receives.
Going solar in California is perfect due to the sunny climate all around the year. The available government incentives and tax credits are also a worthy reason to go solar. Due to this, many organizations offer grants for installing solar panels. The goal is to protect the environment by ensuring that every home is well secured with solar panels.
It makes it valuable for residents to invest in solar energy. In addition, the incentives that come with it are an excellent motivator for homeowners to invest in solar.
Local Solar Installation Prices
Another geographic factor is the cost of getting a new system in your region. Let us be real here, do not settle for mediocre installation services! You will need to find high-quality solar installation providers who know their job.
That said, note that the cost of installing solar panels is not cheap if you hire a company that knows how to do the job well. That all adds up to the home value that solar panels add.
Buyers find it affordable to buy homes with already installed solar panels. It saves them the hustle of engaging installation companies and supervision and making common solar shopping mistakes while shopping for solar.
It is essential to know that a more extensive system with more energy generation will provide more added value. The more the solar panels, the more the kilowatts and thus more energy produced.
If your system is highly efficient on residential energy needs, it adds more value to your home.
If you have an older solar system, you’ll need to account for depreciation. Older systems won’t add that much value to your home when you sell it, as there’s a higher chance the buyer will need to do repairs or replace parts sooner rather than later.
That also sums up with the old roof. Again, do not install solar panels on an old roof because you will not be increasing the home value. But, you may ask, how much does a new roof increase home value?
Note that quality roofing is a sound support system for solar installation.
System Replacement Value
Along the same lines as system age, how expensive or challenging it is to find replacement parts of your system affects its added value overall.
Remember that solar panel maintenance is an essential aspect of the investment. Sometimes you will need to replace some parts. How available are they in the market?
This will determine whether it is worth it to have solar panels. You need to invest in a solar system that guarantees you a quick replacement when needed. Also, self-installing solar panels is not advisable as you may tamper with the quality.
Are Home Buyers Looking for Homes with Solar Panels?
When figuring how much solar panels would increase your home value, it’s prudent to think just how enticing a solar system is to buyers in your community. Of course, it will vary by geography and, precisely, by local knowledge on solar.
Simply put, buyers won’t be as willing to invest in a solar system if they don’t understand how solar panels work or how they can benefit from them. For instance, the residents of California know the importance of buying homes with already installed solar panels.
There has been education on the importance of installing solar panels. Therefore, everyone is inclined to invest in the system. In addition, there are grants for installing solar.
That said, some data shows homeowners to be pretty open to energy efficiency features, for the most part. Solar panels save you on electric bills, protect the environment, earn you money, and most importantly, if you decide to sell your home, it will be more valuable.
Some earlier data from the National Renewable Energy Laboratory shows that homes with solar panels sell 20% faster and 17% more than those without.
Advantages and Disadvantages of Buying a Home with Solar Panels
The good news for home buyers is that even if solar panels raise the price of your new home, their presence is more positive than negative. It is because solar panels are generally considered a good return on investment.
Since their upfront costs are usually much higher, having them already in place is not likely to incur any further investment above a raised asking price.
Investing in solar energy is one of the best things you can do for the planet. They reduce electric bills and foster energy independence. You’ll also want to inspect and service the panels before you move in to ensure that they are in good working condition.
When your property values go up, that usually means that your property taxes increase as well.
The good news is that many states like California offer exemptions and tax credits, meaning that when you install a solar system, your property taxes do not go up, even if your property value rises.
Are Solar Panels Worth It for Residential Homes?
As you weigh the advantages of solar, it makes sense to consider the overall impact on your property value. You’ll also want to take into account factors including:
Your Utility Bills Each Month
If you live in an area with high average electricity rates, you’ll get a better return on your solar energy investment. Remember to apply energy-saving tips to save more energy.
The Amount of Sunlight Your Home Gets Throughout the Year
Some homes are better positioned for solar panel installation than others. If your home is situated at an optimal angle for harnessing the sun’s energy, it makes more sense to go solar.
Financial Incentives Available to You
All American homeowners are eligible for the federal solar tax credit. Still, many states and municipalities have added rebates, low-interest loans, and other financial incentives for their residents as well. So make sure that you save and gain.
As we finalize, we’d love to take you through some of the Frequently Asked Questions on solar panels increasing home value.
FAQs on Home Value Addition by Solar Panels
Do solar panels hinder the resale value of your home?
No. Installing a home solar system increases the resale value, particularly if you have a high-efficiency system that helps lower monthly energy bills.
Multiple studies have shown that buyers are looking for more energy-efficient homes to reduce their carbon footprints and help save on electricity bills.
Do Bigger Solar Installations Present a Better Value-add than Smaller Systems?
Bigger solar installations may present a better-added value than smaller systems. However, it’s not the number of panels that matters so much as the power output in many cases. The solar panel needs to present the required efficiency in the home.
What Value Does Solar Add to the Home?
A few studies have shown that solar installations increase a home’s resale value by about 4.1% of the home’s value. However, this can vary quite a bit from one geographic location to another.
Am I Able to Save Money with Solar Panels?
While the initial investment may be steep, solar panels can help to reduce or even eliminate your monthly electric bills. These ongoing energy savings are an excellent addition to property values.
You Have All the Reasons for How Solar Energy Increases Your Home Value. Now, All You Need To Do is to Go Solar!
Do solar panels increase home value? We believe you now have an extensive answer. Investing in solar panels gives you a guaranteed rate of return at home value.
Therefore, it is a worthy cause if you think of installing your solar panels. The solar ROI that you get is worth every penny.
Note that solar panels add value to your house. All you need is a high-quality installation company to work on your solar installation. They will also assess the roofing and the environment to ensure maximum efficiency from your system.
If you are interested, contact Enlightened Solar for all your installation needs. You will also get good advice depending on your home energy needs.
At Enlightened Solar, we know the need to have an efficient solar panel for your home. We shall also advise you on the solar tax credits and rebates you can apply; let’s make your work easy.
Contact us today for any queries and also get a quote!