According to the US Department of Energy, homeowners who elect to install solar panels reap financial benefits from their environmentally sound decision. Other benefits can include increased property values and greater desirability from potential buyers.
Lawrence Berkley National Laboratory, a preeminent US government scientific institution, also conducted a study about the financial value solar panels can bring to residential properties. Their 2013 study found that potential buyers would consider paying $15,000 more for a home with a photovoltaic array than one without.
Nine years later, a CNBC report found that in some states the bonus value from a solar panel could exceed $30,000. For example, a homeowner in New Jersey with a PV system could ask for an additional $32,281 from prospective buyers.
Homes with solar panels
Home buyers have many incentives to purchase homes with solar panels, including:
- Environmental concerns. Numerous buyers have environmental inclinations and would prefer to generate solar power on their own property rather than rely on a fossil fuel grid.
- Desire to save money. By generating power on-site, home buyers can avoid paying high energy costs to the local power or utility company.
- Self-sufficiency in energy production. When paired with solar battery storage, power outages cannot affect homeowners with solar panels installed on their property. This peace of mind can give home buyers an incentive to purchase a home with PV panels over one without. However, not all solar panels have battery storage.
All these factors contribute to the resale value of a home with PV panels, and a good residential real estate agent can help tell a great story about how solar panels fit into the bigger picture of the transaction.
Homes with PV Installations
According to the Berkley Lab study, the following factors contribute to the boosted resale value of homes with solar panel installations:
- Size of the system. Systems that can produce proper power for the home in question will receive a boost in overall value-add to the property in question.
- Available incentives. If any state or federal incentives apply, these will often factor into the final price paid for the property.
- Retail electricity rates. In areas where retail electricity rates have grown in recent years, solar photovoltaic panels accrue additional value thanks to their cost savings.
- Replacement cost. This cost pertains to replacing a solar panel array at the end of its life, netted against any available incentives. This cost also factors into the net present value of the system.
- Present value of energy savings. The present value of future energy savings involves a financial calculation that discounts energy savings from the present to the end of the life of the system.
- With the right mix of system output and high retail electricity rates, homeowners looking to sell their PV-enabled properties can enjoy outsized financial benefits.
Solar Panel Installation
However, one factor that can affect the resale value of homes with solar panels installed revolves around poor installation.
Failing to properly integrate each component with the design of the home and layout of the property can reduce the total potential value boost from the panels themselves. For those investing in high-end home renovations, it’s especially important that solar systems enhance, not detract from the overall aesthetic and functionality.
An experienced solar installation expert can ensure that the system blends seamlessly with all the distinct elements of the property, including the structure itself and landscaping.
