You’re considering installing solar panels to cut energy costs. But maybe you’re wondering how they’ll impact the value of your home. Will you see a significant increase, or will the change be minimal?
In short, you can expect your home’s value to go up, but the amount of the increase will depend on several factors that’ll be discussed in this guide. You’ll also learn more about other ways to increase the value of your home if you’re planning to sell soon.
Submit an online application form to inquire about Angel Oak Mortgage Solutions financing options.
Buy a home or refinance your existing mortgage with Zero Mortgage.
Older homeowners can get peace of mind and added financial security with a reverse mortgage from AAG.
How Solar Panels Increase Home Value
According to Zillow, the average impact on the sales price of a home with solar panels installed is around 4.1 percent. This equates to approximately $6,000 per kilowatt of solar panels installed.
Factors That Determine the Value Added by Solar Panels on Homes
The value homeowners receive from installing solar panels is based on several factors.
Location
Where is your home located? Some areas receive more sunlight than others, which leads to higher energy costs. In turn, homes with solar panels are generally more valuable in these areas since they can help curb costs.
Local Installation Price
How much does it cost to have solar panels installed? How long will it take to recoup your investment (in terms of cost savings)? Depending on the response to the latter, it could be more sensible for a buyer to purchase a home with panels already installed to avoid incurring the costs on their own.
System Output
The larger the size of the solar power system, the more significant the solar energy output. Furthermore, larger systems tend to increase home value the most.
Age of Your Solar Power System
How old is your solar power system? If it’s been some time since it was installed, your home value may not increase very much. However, there’s also the risk of the system breaking down and needing repairs once you sell the home, so the borrower may be unwilling to pay a premium for your home despite the solar panels being installed.
Replacement Value
If you have an older power system, there’s also a chance the parts are obsolete. Consequently, the buyer may need to replace it soon, so it likely won’t add much value to your home.
Submit an online application form to inquire about Angel Oak Mortgage Solutions financing options.
Buy a home or refinance your existing mortgage with Zero Mortgage.
Older homeowners can get peace of mind and added financial security with a reverse mortgage from AAG.
Why Are Solar Power Systems in Homes in Demand?
Homes with solar panels installed are in high demand, and for valid reasons.
Reduce/Eliminate Electricity Bills
For starters, many home buyers are looking for ways to curb household expenses. Reducing energy costs is one way to cut back; solar panels can help pull this off.
Contributory Value
Solar panels also improve the effectiveness of other energy upgrades you make in the home, like purchasing ENERGY STAR-certified appliances and using LED lighting. These upgrades could pay off big if you decide to sell the home soon.
Rebates and Tax Incentives
Energy-efficient improvements to your home, like solar panel installations, could get you a break from the IRS. Furthermore, your property taxes won’t be drastically impacted (if any) in most states if your property value goes up due to having solar panels installed.
Trying to Increase Home Value to Sell?
Solar panels could boost the resale value of your home. Still, installing them comes at a cost that could take some time to recoup. In turn, exploring other ways to sell your home could be more sensible while saving more time and money.
