Do Solar Panels Increase Home Value?

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solar panels increase home value

There’s no doubt that renewable energy is good for our environment. Wind energy, solar energy, and even methane gas have helped transform the way we think of power.

Because renewable energy is good for our environment, it’s also good for the economy. Buildings that focus on using renewable energy sources are becoming more enticing for buyers.

Thus solar panels increase home value today more than ever. Keep reading to learn how solar panels for your home will increase your property value.

Solar Panels Increase Home Value

Basic residential solar systems and solar panel installation have proven to increase a home’s value just as much as a finished basement or renovated kitchen. The Office of Energy Efficiency and Renewable Energy reports that buyers are willing to pay up to $15,000 more for a home with a basic solar array.

Furthermore, the same organization has evidence that homes with solar panels sell faster than those without solar panels.

Leading real estate company, Zillow, recently published a study suggesting homes with solar sell for 4.1% than those without.

Solar Panel Options

Not all solar panels are the same. In the world of solar panels, two basic types exist silicon and thin-film.

Silicon panels are the most energy-efficient solar panel on the market, with a rating of 18 to 22 percent efficiency.

Thin-film panels are less costly to produce and also less efficient. These panels, often found as solar shingles or solar tiles, are just 11 to 13 percent efficient.

The efficiency of the panels determines how much electricity they can make.

Grid vs. Off-Grid Systems

Your connection to a grid also affects the value of your home. Solar panels help produce power. However, what happens on cloudy days?

If you have a grid-connected system, your excess electricity goes back into the grid. Also, on those cloudy days, you can draw power from the grid. You do not need expensive storage devices such as batteries.

If you opt for an off-grid system, you’re not connected to any power source other than your solar panels. An off-grid system makes sense if your home is off the beaten path and away from civilization.

While a stand-alone system does cost a bit of money, if you’re a ways away from the grid, then it makes financial sense. Running a power line to a home can cost you tens of thousands of dollars.

The off-grid system will cost you more initially because you’ll need a charge controller, safety equipment, meters, power-conditioning equipment, and batteries.

However, offering someone the chance to live off the grid also makes your home valuable.

Cost of Solar Panels

Three things determine the price of your solar system:

  1. What size of a system do you need?
  2. What type of system do you want?
  3. Where do you live?

This combination of answers will affect the cost of your system.

Best of all, solar panels are a low maintenance power option. You do need to have them cleaned periodically to make them efficient. Cleaning will cost you between $150 and $330.

Clean the panels as you see they need it.

Some warranties require you to maintain and clean the solar panels to stay current. So read the fine print and then plan on keeping your panels clean.

Tax Benefits

If you’ve installed a solar energy system, the Federal Government and some will offer tax credits.

In 2019, the highest a homeowner with a solar energy system could garner was 30 percent. The 2020 tax credit is 26% and it scales down to 22% for 2021.  Many states also offer tax incentives for going solar.

If you install your solar panels in time to receive the tax credit, you can choose to either deduct the tax credit directly from your tax payment if you owe federal taxes or deducted it from your taxable income when you file your taxes.

Cost Savings

You will ultimately save money with a solar energy system. However, the amount of money you save will vary. This cost-saving also will ultimately affect the value of your home.

So if you live in San Diego, local rates run around 12 cents a kilowatt-hour. In this environment, you will save hundreds of dollars a year.

Rates are less in Seattle. Thus the same system will save you significantly less in the Pacific Northwest versus Southern California.

Clearly, solar panels will save you money. But how much money can they earn you? What do they do exactly to your home’s value?

A recent report at the Appraisal institute reveals that home values did indeed go up with the installation of solar panels. Solar panels will both save money and add value to your car.

If you attempt to sell your home and do not see any bites, consider what a solar panel will do for your home. If you can find the right buyer, you will have an attractive selling point with your solar-powered system.

Search for Sunshine, Increase value

Ironically, solar panels increase home value.

If you’re looking at installing panels, put in the newest ones. The age of the panels seems to affect their marketability.

In short, people think that newer panels are more efficient. They garner more electricity and waste less.

Plus, solar panels increase your home’s value. Install the newest, most efficient panels so you can see your home value go up. You can also rest easy that you’re selling a quality product.

For all of the needs of your solar panels, contact us. We’d love to help you increase the value of your home and improve the quality of the environment around you.