Did you know that solar panels raise the property value by a whopping $14,329 on average? According to the Lawrence Berkeley National Laboratory, homes that are equipped with solar power systems sell for 3.74% more than their non-solar counterparts.
It has been a well-known fact that investment in solar energy pays for itself through a significant reduction in electricity bills. In fact, solar homeowners usually see a return of at least 2x their initial investment throughout the life of the solar energy system.
However, these numbers clearly assume that you stay in the same house for the entire warranty duration – which rarely happens. One of the biggest factors on why many people don’t invest in solar is because they fear that they might not live in the same property long enough to reap the benefits of low energy bills.
Research Report Supports Solar
If you are a homeowner, the latest report from the Lawrence Berkeley National Laboratory should be good news for you. It shows that installing a grid-tied solar energy system in your house not only drives up its value but also motivates real estate agents to market a listing.
Even if you don’t live in your solar home long enough to enjoy the reduced energy expenses, the attractive price tag that home buyers are willing to pay to buy your home will be more than enough to cover your investment.
Solar-Powered Properties Sell for More than Non-Solar Ones
The study assessed the sale price of 22,822 houses in 6 states to discover the impact of solar energy systems on the resale value of properties. It also compared the sale price of 18,871 Non-PV homes to 3,951 PV homes (i.e., solar-installed homes).
They found that solar panels increase the home value by $14,329, or in other words, 3.74% more than the non-solar homes on average.
As the average solar energy system costs between $10k and $18k in materials, you can realistically expect to recover that cost when you decide to sell your house. Not to mention the huge savings from lower energy bills as well as tax benefits, which basically pay for the system at least 2 times over the warranty period.
As if that wasn’t enough of a benefit, some states in the US don’t include PV systems in your home value while computing property taxes.
For example, adding a $10,000 kitchen could increase your property taxes but installing a $10,000 PV system might be tax-exempt. This, of course, isn’t the applicable in the entire US just yet; you should check out your local tax regulations to know more.
It’s safe to say that solar seems like a sound investment from every perspective. If the homeowners live in their solar-powered homes for the entire duration of the warranty, they can reasonably expect a grid-tie system to pay for itself two-three times, at least, in energy savings and tax exemptions.
If homeowners choose to move before the end of the warranty period, they still win, thanks to the raised property value. The solar power system adds to the sale price of their home to a considerable extent. The premium paid by the willing home buyers is usually at least enough to pay for the cost of your installation.