Thursday, September 22, 2022

Do Solar Panels Add Value To Your Home In Florida

The Question Of Warranty

Do SOLAR PANELS add VALUE to your Home?

Many buyers will also want to know about the warranty on the solar package, especially if theyre not incredibly thrilled to be stuck with solar in the first place. Zaragoza mentions that you should always ask your solar provider what will happen to your warranty if you decide to sell the home. Knowing that you can transfer the warranty to new owners offers them a big peace of mind, and if this isnt possible, then this might be a reason to reconsider the purchase or lease agreement.

Saving Time And Money

Another reason to invest in solar before you put it on the market: Houses with solar panels tend to sell faster than those without solar panels. Research by NREL has found that homes with solar panels sell 20 percent faster than equivalent houses that are dependent on the grid.

The less time your home is on the market, the more money you can save on storage, transportation costs, and having to pay two mortgages at the same time. You also reduce the likelihood that you will have to delist your house or settle for below the asking price.

Florida Solar Power: Adding Value To Residential Property

From the real estate perspective, we know of multiple aspects that increase the market value of your house. For example, people invest in landscaping or add a pool to the property to enhance its market value. But, how do solar-powered green and sustainable homes attract real estate value?

  • While other improvements around the house are optional, power, whether renewable or non-renewable, is a necessity.
  • With solar power, one can ensure reduced energy bills, which make a property more appealing in the eyes of the prospective buyer.
  • Amenities like solar power-backed hot water systems make a house more efficient.
  • Finally, and most importantly, with people becoming more aware of the environmental issues, the inclination toward renewable energy has notably increased. Moral of the story homeowners want to live in energy-efficient green homes.

Hence, given a choice between houses running on the non-renewable source of electricity and ones on solar power in Florida, the public opinion is steadily shifting to the latter.

Also Check: How Much Do Solar Panels Cost In Alaska

Calculating A Ballpark Range For Home Value Increase

Assume our calculator above estimates a 6kW solar panel system would be best for your energy bills of $120 a month.

  • You could quickly estimate a $30,000 home value increase from the Lawrence Berkeley Labs formula .
  • From the Appraisal Journal article citation, $120 of monthly utility bill savings is $1,440 annually. Multiply that by 20 and you get an expected market value increase of $28,800.
  • Finally, using Zillow and the National Bureau of Economic Research study, consider you have a Zestimate of $550,000 for your property. A 4% increase in home value would be $22,000.

In this way, your ballpark estimate for a 6kW would be anywhere from a $22,000 to $30,000 increase in home value.

Faq: Cost Of Solar Panels In Florida

Do Solar Panels Increase Home Value?

Are solar panels in Florida worth it?

It’s generally worth it to install solar panels in Florida. A 5-kW solar energy system has an average cost of $9,361 in Florida, and it can generate over $25,000 in savings during the 25-year warranty period of most solar panels. In other words, you get around $2.50 to $3 in savings for every dollar spent on upfront installation costs.

How much do solar panels cost for a 2,000-square-foot house?

This depends on your electricity bills, and you can check your annual consumption to get a better idea of the solar capacity you need. With Florida’s sunshine, you can expect to generate over 1,600 kWh for every kilowatt of installed capacity .

For example, if your home consumes 12,800 kWh per year, your solar panel system must have around 8 kW of capacity. In Florida, a solar system of this size costs around $14,978 after the 26% federal tax credit.

Does Florida have a solar tax credit?

Solar panels are exempt from sales and property taxes in Florida. This means you save 6% upfront on your purchase, and the increase in home value that results from solar panels is not taxable. Some municipalities in Florida have their own rebates and incentives as well.

Are solar panels free in Florida?

Also Check: Do Solar Panels Keep House Cooler

Reap The Tax Benefits

Over the years the federal government and Florida have been giving tax incentives for people to move to solar. You can add a solar panel system to your home, raising its value exponentially, without worries of raising your property taxes thanks to the Solar System Property Tax Exemption. And dont worry about sales tax increasing the price of your new solar system because the States Home Solar Sales Tax Exemption takes care of that. Trust us when we say that youll be saving big with this one.

Searching For Energy Efficient Orlando Homes

Searching for energy-efficient homes on the resale market is not so easy. Our MLS offers a lot of categories for adding energy-efficient fields and certification. These fields can be confusing and not well known so they usually are not completed to the extent they could be. So filtering down on specific energy-efficient features needs improvement.

The easiest way to identify communities with energy efficiency is to consider new construction. Many builders offer certifications such as HERS or Energy Star rating. So you know the home is already built with efficiency in mind. Regardless of the certifications, the building code requires them to be more energy-efficient anyway.

Some common energy-efficient items seen in new construction homes:

  • R38 Roof Insulation, Radiant Barrier Roof, or Spray Foam in Roof
  • Hybrid or Tankless Water Heater
  • Low flow toilets and plumbing fixtures
  • Energy Star Appliances
  • Low VOC paint and products
  • Optional Solar Roof Panels and Spray foam in concrete walls

Buyers Broker of Florida can help you find an energy-efficient homes. Contact Us at 407-539-1053

Recommended Reading: How Much Commission Does A Solar Salesman Make

Homeowners Who Made The Solar Switch

Lisa and Jerry Chretien, a couple from Cape May County, New Jersey, decided to lease solar rooftop panels from Sunrun a year ago. High utility bills and the desire to live cleaner and greener lives inspired them to make the decision. Since going solar in June 2018, the Chretien’s electric bills have decreased, especially in the summertime.

“As soon as we would open the pool and turn on the air conditioners in May our electric bills would run close to $800, sometimes more,” said Lisa Chretien. “Saving money, especially with kids in college, has been a big help and a big saving. And there are a lot of incentives, tax wise you get a break. It has just been a plus all the way around.”

For Kerrie Lane, owner and operator of a cleaning service and resident of South Jersey, the experience was similar. After moving into her new home, she received her first electric bill: a staggering $1,100. Kerrie knew she needed to do something to make her electric bills affordable.

“I’m 60 years old, so I’m getting up there. I do a physical job for a living but I can’t do it forever. … So having my bills being manageable was very important to me,” Lane said. “My first electric bill in this house was $1,100. I knew I needed to correct this situation and make it manageable and Sunrun gave me the consistency that I was looking for. “

Best Direction To Face Your Solar Panels In Florida

Do Solar Panels Add Value To Your Home?

Orientation is an important factor when choosing where to place solar panels.

If youre unsure which way your roof should face, then we have some tips for you! The best orientation in the Northern hemisphere would be pointing South.

This will maximize sunlight and most importantly heating efficiency during those cold months of winter.

However, if this isnt possible because your roof doesnt slope down towards that direction or has other obstacles blocking it from being turned to point southward dont worry.

Installers are used to working with various orientations and finding ways around such issues, by separating solar panel arrays, for example even if they point in slightly different directions.

Solar panels are often pointed in a specific direction to maximize the suns rays, but there is more than one way of doing this.

For example, if really necessary they can even point East or West!

Solar panels should not be facing North because they will get no direct sunlight for the entire day.

When thinking of solar power, its helpful to understand the different types of sunshine. Direct sunshine is the best source of energy to generate electricity.

Diffuse sunlight can also be harnessed and all types may used with mirrors to increase power.

It doesnt matter too much which direction your panels face as long as you have both direct and diffuse sunlight for most of the day.

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Ten States Where Solar Panels Increase Home Value The Most

That said, you might be surprised to find out how significantly this increased value can vary from state to state. Therefore, we should possibly rephrase the question to, how much do solar panels increase home value in your state? To answer this query, we took a deep dive into the findings of Zillows study, and we discovered the ten states where solar panels increase home value the most.

There are five states where solar panels add more than 4% to the resale value of a home:

  • New Jersey
  • New York
  • South Carolina

Its also interesting to take a look at how the relationship between solar panels and home value varies between different metropolitan areas. Zillow examined home values in several metros and found that three of them stand head and shoulders above the rest:

  • In New York City, solar panels increase home value by 5.4%.
  • In Orlando, Florida homeowners earn a 4.6% boost in home value with a solar energy system.
  • In San Francisco, homeowners can expect a 4.4% increase if they have solar panels.

Meanwhile, the Lawrence Berkeley National Laboratory frames the question of do solar panels add value to your home a bit differently, but with similar findings. The Berkeley Lab states that solar panels boost home values by about $5,000 per kilowatt of power available from the homes solar system. This means that once you subtract the upfront installation costs, a 10-kW system would add around $32,500 to your homes overall resale value.

Studies Linking Solar Panels To Home Value Increases

The Appraisal Journal cited researchers Ruth Johnson and David Kaserman who report, Home value increases of about $20 for every dollar saved on annual energy costs.

So, in the case of the $200 monthly savings example above, you could expect the value of that solar home to be worth $48,000more than it was previously .

For a second example,a study by the Lawrence Berkeley National Laboratory yields a formula of a $5,000 resale value increase for every kilowatt of solar installed. To get that same $48,000 home value increase from the Appraisers Journal with this calculation, youd need a 9.6kW system .

With average installation costs around $3,500 per kW upfront, you could have this size system installed for $33,600. That difference in value gained relative to your investment potentially nets you an arbitrage opportunity of $1,500 per kW of installed solar.

That doesnt even include the federal investment tax credit, which allows you to recover 26% of the cost of your home solar installation. Additionally, in some states, your property value increase is even exempt from additional property taxes.

If youre looking to sell your home faster and at a premium, it might be worth having solar installed first! You can expect a quick return on investment for this type of clean energy home improvement.

While that estimate is simple, theres a lot of unaccounted for variables. For example, it doesnt take into account the size of the solar energy system.

Recommended Reading: How To Make A Solar Powered House

What Are The Different Solar Panel System Options

If you are planning to install solar panel systems in your house, you have two options.

One option would be to connect your system to a local utility grid. Here, youll be able to sell the excess energy your panels are generating.

Alternatively, you can choose to install an off-grid system. This option stands alone, and a series of batteries accompanies the system. Theres also a backup generator that will store power for your home in overcast weather or at nighttime.

How Much Can Solar Save You

Do Solar Panels Add Value to Your Home?

Raze Solar is passionate about helping homeowners save money on energy, take control of their power usage, and reduce their environmental impact. We can also help you maximize the value of energy-efficient upgrades to your home!

The process begins with a comprehensive solar energy audit. Our team will analyze your homes energy usage, your roofs condition, and more. With this information, you will know how much you will have to spend and how much you can save when adding solar panels to your home. Click below to schedule your free solar energy audit today!

Read Also: How To Start A Solar Farm In Florida

A Lawrence Berkeley National Laboratory Analysis Found That Home Price Premiums For Solar Power Are Based On The Energy Production System Not A Homes Base Price System Age Was Also A Consideration

In 2015, Lawrence Berkey National Laboratory analyzed 43 pairs of homes sold in 6 states: California, Florida, Maryland, North Carolina, Oregon, and Pennsylvania. Each pair of homes was carefully matched so that they were highly comparable. The sole significant difference was that one home had a solar power system, and the other did not.

They found that the median average sale price increase for homes with a solar power system was 2.91%. California homes in the San Diego metro area they analyzed were selling for just a hair more on average2.92%.

But the study noted some very important considerations that home sellers and buyers need to keep in mind. For one, the typical age of solar power systems can vary by reason. The homes in California had solar power systems as old as 11 years in service, with an average age of 4 years. Meanwhile, none of the systems they looked at in Florida were older than 4 years, while those in Pennsylvania were all less than 2 ½ years old. In some respects, solar panels are a depreciating asset, much like a car or a computer. They have a finite lifespan, and their . A homeowner with a 15-year-old system shouldnt expect the same price bump that a home with a 3-year-old system would get.

Instead, Lawrence Berkeley stated:

Price per watt is the appropriate metric for valuing systems, not the premium as a percentage of the home sale price, which is an inconsistent metric that varies widely by the size of PV systems and the price range of homes.

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.

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Adding Solar Can Increase Your Home Value

Did you know that installing a home solar system is an economic decision that can potentially improve your familys financial position?

Home solar not only can reduce or eliminate your electric bill, adding a photovoltaic solar system to a house is almost always a good real estate investment and may contribute to increasing home values by 3 to 4 percent. The combined benefit of higher resale value and lifetime energy savings makes solar a compelling financial investment.

One study by Lawrence Berkeley National Laboratory, which analyzed the sale of nearly 4,000 homes with solar in eight states, determined that some buyers, particularly those in California, are willing to pay a premium of $12,000-$15,000 for a home with an average-sized, resident-owned solar array.1 That illustrates how important it is for buyers and sellers to familiarize themselves with how solar affects property values.

In states with a booming solar industry, such as California, which has a more mature solar real estate market, local real estate agents, lenders, and appraisers are more likely to understand the value of solar, and there are plenty of comparable home sales that can guide accurate pricing decisions.

Other regions are still learning the benefits of solar. Renee Baker, a real estate agent in Las Cruces, New Mexico, said that about six years ago, many real estate professionals in the area did not understand how solar adds to the value of a house.

Discover Whether Solar Panels Will Increase The Value Of Your House

Do Solar Panels Increase the Value of my House?
  • Columbia University Graduate School of Journalism
  • University of California, Santa Cruz
  • Western New Mexico University

Within the past decade, more and more prospective buyers are willing to pay a premium for homes with photovoltaic panels. The energy cost savings associated with solar, as well as the growing interest in environmental sustainability, are among the reasons why.

But the size of that premiumand potential energy savings generated by a home solar systemvaries considerably by location. To understand how solar panels increase home value, there are several factors that must be considered.

Read Also: What Is The Best Solar System

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