What Are Rooftop Solar Panels
Rooftop solar panels convert energy from the sun into electricity, so you are effectively able to generate your own power. They work best when facing north, and during the times of the year when the sun shines brightest. While this does mean they donât work at night – so youâll need to revert to using ordinary electricity – they will work wonderfully for you during the summer months, when youâve got the air-conditioner and all the fans going during the hottest part of the day, therefore saving you loads off your electricity bill.
Once installed, rooftop solar panels require little maintenance. They have no moving parts and, if correctly installed, are typically quite reliable. Depending on the quality of the system and on the installation itself, you can expect your solar rooftop panels to last for between 20 to 30 years.
Aesthetics And Property Value
When it comes down to Solar Panels, beauty is in the eye of the beholder. For some, solar panels may come across as awkward, odd or unappealing additions to a residential property. As a result, there are concerns that solar panels will devalue ones property. On the contrary to this belief, solar installations are rather enticing because of the many perks they bring, particularly savings on energy bills. Whats more, with new solar innovation such as integrated Solar Panels and Solar Roof Tiles, going solar has never looked better.
Faq: Do Solar Panels Increase Home Value
Do solar panels hurt the resale value of your home?
Generally speaking, the opposite is true installing a home solar array actually increases the resale value of a home, particularly if you have a high-efficiency system that helps lower monthly energy bills.
Solar literacy in your local community is an important factor here, but for most homeowners, the answer to this question will be a resounding no. 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 value-add than smaller systems. However, in many cases, it’s not the number of panels that matters so much as the power output. A smaller system, assembled with the most efficient solar panels can be just as impactful as a larger, lower-efficiency system.
The aesthetics of the system may also be a factor, with many buyers actually preferring smaller, less conspicuous systems.
How much value does solar add to the home?
A few studies have shown that solar installations increase a home’s resale value by up to $6,000 for each kilowatt of solar panels installed, or by about 4.1% of the home’s value. However, this can vary quite a bit from one geographic location to the next, even for comparable homes with similar solar panel systems.
Do you really save money with solar panels?
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Do Solar Panels Ever Lower Property Values
Theres very little chance that solar panels will lower the value of your home, but even if solar systems add value to your home, this value can be undercut by a number of different factors. According to EERE, one of the reasons that solar-equipped homes tend to sell for so much more is that solar panels are considered upgrades to ones home. And just like a pool or finished basement, the inclusion of solar panels represents a significant investment on the part of the homeowner.
If those panels are leased by the solar company or third party, the seller might have to purchase or return the equipment. If they purchase the equipment, it could put a lien on the house, which would not improve the price point at all. Local electricity rates and solar electricity prices could also affect the overall value that solar panels add to a home, as can the relative understanding of those looking to purchase the home.
If home buyers dont understand the benefits of solar energy, they might see the panels as just another piece of furniture theyre going to have to replace or get rid of. According to Homelight, not every person sees solar as valuable, some see it as a hassle, and they dont want the added responsibility of worrying about solar panels. Thus, the added value incurred by solar panels can only really be determined on a case-by-case basis.
Do Solar Panels Increase Property Value Heres The Whole Truth
Kim Dinan is a writer, journalist and author. She’s the outdoor news editor at Blue Ridge Outdoors and writes regularly for her local paper in Asheville, NC, covering everything from the necessity of home inspections to trends in the local economy. Kim is also the author of “The Yellow Envelope,” a memoir about the time she sold her house and traveled around the globe.
At HomeLight, our vision is a world where every real estate transaction is simple, certain, and satisfying. Therefore, we promote strict editorial integrity in each of our posts.
As a homeowner, youve probably got a list a mile long of improvements you want to make to your house. If your electric bill is high or if you just want to do something positive for the environment you may have considered adding solar panels to that list.
There are lots of benefits to solar energy, and its a nice thought to produce your own power without relying on the grid. Like any home improvement project, though, its important to think long-term before making a large financial investment in your home.
So, lets cut to the chase. Do solar panels increase your property value?
The Office of Energy Efficiency and Renewable Energy says that a solar energy system will likely increase your homes value, and that buyers across the country have been willing to pay a premium of approximately $15,000 for a home with an average-sized solar array.
Lets dive a little deeper into solar panel options, to see where that value may lie.
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Homes With Solar Panels Sell For 41% More
Not only can adding solar panels to a home save energy costs and help the environment, it also can potentially increase a homes value. During the past year, homes with solar-energy systems sold for 4.1% more on average than comparable homes without solar power. For the median-valued home, that translates to an additional $9,274.
The sale premium varies substantially by market. In Riverside, Calif., for example, homes with solar-energy systems sold for 2.7% more than comparable homes without solar powera markup of $9,926 for the median-valued home in the metro. In the greater New York City metro, solar-powered homes have a premium that is double that of Riverside. At 5.4%, thats an extra $23,989 in value for the typical home in New York.
In three other coastal metro areasLos Angeles, San Francisco and Orlando, Fla.homes with solar power can fetch a premium of around 4%.
One reason houses with solar-energy systems sell for more than those without them is because they can provide substantial future energy cost savings. For homeowners who know they consume a lot of power, these future savings are worth spending a bit more money up front. It is also possible that homes with solar-energy systems are more likely to have other features that are hard to measure yet valuable, like heated floors, which could contribute to the premium associated with solar power.
Do Solar Panels Add Value To Your Home An Experts Advice
If you are after a more sustainable lifestyle that could save you money after the initial investment, installing solar panels in your home is a good place to start.
Eco-conscious homeowners keen to go green are likely to consider solar panels to add value to their homes. Some experts say this asset is not yet having an immediate effect on resale value but it will certainly appeal to buyers who want to live off the grid. There is also the potential to save on electricity costs or, at the very least, become less reliant on Eskom for heating. The amount you save on electricity will depend on the size of your solar panels as well as your electricity and heat usage.
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Why Is Solar Energy So Valuable
A 2015 survey showed that 61% of respondents agreed that solar electrical or water heating systems were desirable in a home theyd consider purchasing.
As solar gains popularity, so will realtors who understand how to position solar as the one feature that sells the home. In a buyers market, it may be the one thing that sells your home over the one up the street.
Additionally, installing solar panels is a relatively easy one-time project. It has little impact on your living space compared to other major sustainable living home improvements. Most of your effort is doing the research to find the right company and getting paperwork through for installation and warranty purposes.
Learn How Solar Panels Can Increase Your Home Value
REenergizeCO is passionate about helping homeowners save money on energy, take control of their power usage, and reduce their environmental impact. We have completed hundreds of solar installations in Denver, Fort Collins, and throughout the Front Range, and we can also help you maximize the value of energy-efficient upgrades to your home.
The process begins with a comprehensive home energy audit. Our team will perform specialized tests to determine where you lose energy and make individualized recommendations for installing solar and other options for improving efficiency.
REenergizeCO is recognized as an approved solar contractor by Xcel Energy and multiple county and municipal utilities. We respect your home, and our team can help you make smart energy improvements whether you intend to sell the house or live in it for years or decades to come.
Contact a solar team member at REenergizeCO today for more information on solar panel installation for your home. You can also reach us by phone in Denver at or in Fort Collins at .
We are here to answer any questions homeowners may have about home insulation, energy audits, and solar power.
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What Affects The Value Of Your House
House prices are area-specific so you should focus on prices in your neighbourhood, rather than national averages. Use our interactive map to find out about property prices in your area.
Beyond location, your propertys age, size, number of bedrooms, structural integrity, wear and tear and room layout will all affect its price. As will whether it has a garden, parking space, garage, and any extra features, such as a shed converted into an office.
Talk to local estate agents for the inside track on all the factors to consider.
How Much Can You Save
The cost of solar energy systems vary, and the money you can save by installing a solar electricity system varies, as well, because the savings youll accrue depends on your local electricity rates.
For example, in San Diego, California, where local rates run about $0.12 per kilowatt-hour, the average solar electricity system will save a homeowner about $500 per year. In Seattle, Washington, however, where rates run at $0.06 per kilowatt-hour, the average annual utility savings is less than $150 per year.
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A Win For Landlords And A Win For Renters
Renters have also indicated that they are willing to pay more for rentals with solar installed little surprise when you consider the direct savings on their energy bills. Therefore, landlords looking to increase the value of their investment property can benefit greatly from installing solar panels. Not only can they charge more in rent, but the appeal of solar for renters means your property is more likely to be rented out all the time. All landlords will recognise the value in that.
Some states currently offer rebates specifically for landlords. For example, Victorias Solar for Rentals program offers eligible rental providers a rebate of up to $1,400 for the installation of solar panels on their property. Eligible landlords can also apply for an interest-free loan of up to $1,400 to further reduce the upfront cost of the solar panel system.
What To Look For When Financing Solar Panels
When deciding how to finance solar panels, you may be nudged toward one type of lender or another. Do not rush into a solar loan. If you decide to move forward with the purchase, let your salesperson know that you plan to rate shop first. A difference of as little as 1% in interest can save you thousands over the life of your solar loan.
Here’s what to look for when you’re financing solar:
- A low interest rate. The less you pay for the loan, the faster solar panels pay for themselves through energy savings.
- Attractive repayment terms. Like Goldilocks, you’re looking for “just right” when it comes to personal loan repayment terms. If the repayment term is too short, your monthly payments may be too high. If the term is too long, you will end up paying more in interest than you need to. You want to find the shortest loan term you can comfortably afford to pay.
- Perks. The best solar power financing perks include a discounted interest rate for autopay, easy online access to your loan information, and unemployment protection.
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Even If You Dont Sell Now Youll Still Reap The Benefits
Regardless of whether or not you decide to sell your home, installing solar panels will still provide fantastic benefits. In a few short years, you will recoup the upfront costs by saving on your energy bills. So, not only will the resale value of your home be increased, there will be the benefit of future savings if you dont sell straight away.
Is Solar Panel Financing Right For Me
Once you’ve signed on the dotted line for solar power financing, you can take advantage of a federal tax credit. Depending on where you live, you may also be eligible for state and local tax incentives.
The federal solar tax credit, sometimes referred to as the investment tax credit , allows you to deduct 26% of the cost of your solar energy system from your federal taxes. This incentive will step down to 22% in 2021 and expire for all residential installations in 2022. But, if you install a $12,000 system this year, your federal tax credit will be $3,120 .
Financing a purchase is a big decision. To work out whether a solar loan is the right decision, take a close look at your monthly budget and the amount you will save against the total costs. Put pencil to paper and figure the real cost of the loan, factoring in the tax credits and lower utility costs.
There aren’t many home improvement projects out there that help protect the environment through clean energy, reduce dependence on fossil fuels, lower the cost of living in your home, and immediately raise the value of your property. Solar power financing is definitely worth considering.
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Get Started With Solar Alliance Today
If youre looking to save on your energy expenses and increase your home equity, were ready to design, build and install the perfect solar panel system for your property. At Solar Alliance, we provide accessible, affordable renewable energy solutions to residential, commercial and industrial property owners in Tennessee and Kentucky.
You can rely on our engineers and installation specialists expertise to provide the highest-quality solar panels that will help you enjoy utility savings and reduce your energy footprint for years to come.
Contact us today to take control of your energy bills with a clean and effective solar panel installation!
Do Solar Panels Add Value To Your Home The Verdict
There are both pros and cons of having solar panels when it comes to the potential impact on the value of your property. This makes it hard to definitively answer the question do solar panels add value to your home?.
If you have a relatively new system, with several years lifespan left on the panels, and you have full ownership of both the panels and the Feed in Tariff, then the panels shouldnt decrease the value of your home. This is because the negatives will be balanced out by the positives.
Whether they add much value is debatable. A lot will depend on the area you are in, as to how desirable renewable energy in the home is. If most of your neighbours have solar panels, a keeping up with the Joneses effect may come in and mean that solar panels are a must-have for any new owners.
Therefore, if you are still deciding whether to add solar panels to your home, our advice would be to do it, but only if you plan on living there for the next 10-15 years. In this time, your savings will probably outweigh your costs. Plus, solar panels are becoming more and more common, and so in 10-15 years time, their effect on property prices may have changed.
If you were thinking of installing solar panels purely to increase the value of your property, think again. Its highly unlikely that youll recover the costs of installation, simply from an increase in the value of your home.
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How Much Are Solar Panels
A solar panel array for a typical family of three in the UK costs between £4,000-£6,000.
This is a large investment, but it enables you to save up to £390 per year on energy bills, all while doing your part to help the climate.
And when you consider house prices, the cost of solar panels pales in comparison.
As of January 2020, the average house price in the UK is £231,185, according to the Land Registry.
So on average, youll be paying a measly 2.1% of your homes value to get solar panels an excellent investment that will quickly produce returns.
