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. “
Real Estate And Solar: What Is Happening Now
According to research from Zillow, homes across America that included outright-purchased solar PV Systems sold for an average of 4.1% higher than comparable homes that did not include solar. This pencils out to an average of $9,274 in home value increase with solar.
The Department of Energy did their own independent research on the topic, and found the homeowners were willing to pay up to $15,000 more for a home with solar and there was evidence that these homes sold faster than homes without solar.
More locally, Northeast-based Redfin Realty is reporting that homes in the Northeast that include solar are showing staggeringly high increases, like in Worcester, where the median sale price for solar listings was $42,000 higher than the standard median sale price, and in Boston, where solar homes were averaging a median sale boost of $179,000.
What about how old your solar PV system is when selling your home? Research from Ohio State University, concludes that homeowners would see a decent return on investment whether owning their system for years before selling or selling after just a few years. In the first scenario of long-term ownership, homeowners would likely have a reduced premium but would have benefited from years of reduced or zero electricity bills. While the homeowners with short-term solar ownership would have a higher premium when looking to sell since the system would be relatively new.
Prospective homebuyers see the value in solar
But What About The Upfront Cost
Although the price of solar panels has fallen dramatically in recent years, they still have an upfront cost that might feel like a barrier for some homeowners.
If youre not sure whether or not you can afford a solar system, here are a few things to keep in mind. Firstly, the Australian federal government and most state governments offer rebates and incentives to help offset the cost of purchasing. These range from subsidies to interest-free loans. You can also receive a feed-in-tariff to help with ongoing costs while you still reside in your home.
Also, to make the purchase and installation affordable for those without sufficient capital, many solar installers offer interest-free loans or buy now, pay later plans. These plans give you the ability to get solar straight away and pay it off in small, monthly instalments.
Solar truly is accessible for most Australians. If you want to know how much solar panels cost in your local area and access the best deal, you can use Energy Mattersquick solar quote tool to receive three obligation-free quotes from trusted local installers.
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Are Buyers Looking For Homes With Solar Panels
Another question to consider when figuring how much solar panels would increase your home value is just how enticing a solar system is to buyers in your community. This is something that will vary by geography, and specifically by local solar literacy.
Simply put, buyers wont be as willing to invest in a solar system if they dont really understand how solar panels work or how they can benefit from them. With that said, theres some data that shows homeowners to be pretty open to energy efficiency features, for the most part.
For example, more than 80% of homebuyers say that energy efficiency is a priority, according to the Zillow Group Consumer Housing Trends Report. Some earlier data from the National Renewable Energy Laboratory shows that homes with solar panels sell 20% faster and for 17% more than those without.
If you want to know for sure how solar panels will affect your home value, you can click below to connect with an EcoWatch-vetted installer and get a free estimate.
|Tax exemption of $50,000 or 70% of total property value||South Dakota|
|No exemption||Alabama, Arkansas, Delaware, Georgia, Idaho, Kentucky, Maine, Mississippi, Nevada, Oklahoma, Pennsylvania, South Carolina, Utah, Washington, West Virginia, Wyoming|
*Accurate as of date of publication.
The Effect Of Expiring Solar Rebates On Your Home Value
The most significant solar incentive for home owners – the federal tax rebate – is set to expire after 2022. Other state and local rebates in your area may expire in the coming years as well. While this probably will the unfortunate effect of reducing the amount of residential solar that gets installed, it could have a positive impact on the value of your home.
If you purchase a home solar system in 2019, you will get a 30% federal tax rebate. But in 2023, the rebate will be gone, unless Congress renews it. That means in just 4 years, it may cost a person up to 30% more to buy a home solar system. This makes your solar system suddenly worth that much more to future prospective home buyers, because they wonât have access to the tax rebate that you were able to access in 2019.
Of course, we should expect the cost of solar to continue to go drop, although its probably unlikely for it to drop by as much as 30% in 4 years, meaning that if you think you may sell your house in a few years, your solar home should carry a significant price premium relative to what you paid for it.
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Find The Solar Panels You Need
Installing solar panels can have many benefits for your household. In nearly every case, installing solar panels can increase your houses value. The only question is, how much will it add?
The best way to find this answer is to find the best solar panels for your home! Talk to a solar panel installer to discover what value this can add to your house.
We hope you enjoyed this article! If so, check out our other content today. Our website offers several articles relating to home improvement.
Solar Benefits For Home Sellers
If you own a home and are consider purchasing a solar panel system, here are just some of the benefits when it comes time to selling your home.
Homes with Solar Panels Sell for a Premium
According to the Office of Energy Efficiency and Renewable Energy, studies have shown that solar panels are considered an upgrade to your home. Just like upgrades to your kitchen or bathroom, buyers are willing to pay premium prices for homes with upgrades.
In fact, sellers even earn more money if their property has solar. In 2015, the Department of Energy and Berkeley Laboratory discovered that homes with solar panels bid at a higher asking price than houses on the same market without. Researchers found that sellers earned about $4/watt, which comes out to be around $15,000 for residential, depending on your home and solar system. On average, solar panels add about $20 of value to your home for every $1 you save on your electric bill. If solar panels save a household $600 a year in utility bills, that means your homes value might increase by $12,000.
In another study conducted by the NREL, they found that solar properties earned about 17% more at closing, in addition to selling 20% faster.
Homes with Solar Panels Sell Faster
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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.
You can sell your home with ease through Offerpad through its Express or FLEX option. With Offerpad Express, youll receive a cash offer in just 24 hours and sell your home without listing it or scheduling showings with complete strangers. Plus, you can pick a closing day that works for your busy schedule and take advantage of the extended-stay feature and free local move.
If the offer doesnt quite work for you, theres also the option to test the market with Offerpad FLEX. Youll have access to free services, like deep cleaning, landscape cleanup and pool maintenance, to help your home stand out to prospective buyers. Plus, you can advance the funds needed to make much-needed home improvements that will boost your property value, like new appliances, upgraded countertops, flooring, painting or new fixtures. Even better, youll have up to 60 days to accept the initial cash offer.
A Massachusetts Based Solar Installer For Massachusetts Homes
Planning for a future of efficiency and energy savings should be trusted to the local professionals. As the number one Massachusetts based solar installer, Boston Solar knows what it takes to design and install a system of solar PV panels on your home that will provide lasting renewable energy, and give you the maximum increase in resale value when it comes time to put your home on the market. If you are curious about what installing solar panels would look like on your roof, on your taxes, and on your energy bills, get a free solar quote from Boston Solar today.
We are committed to maintaining safe and sanitary practices amidst the precautions surrounding COVID-19. You can get more info about how we are staying safe while staying open, here.
Wondering if solar panels increase a homes value in Massachusetts? Ask Boston Solar about your solar options today! Call 617-858-1645 or get in touch here.
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Does Solar Increase Home Value The Updated Data
Despite a flourishing market, selling solar isnt always easy. Prospective solar customers have concerns about everything from ROI and how to finance their system, to how it will affect the aesthetics of their house. And theyll likely want to know what having a PV system will do to the value of their home now and in the future if they want to sell.
The more specific you and your sales team can be about the benefits of installing solar, the better. And research continues to produce compelling data about how solar can increase the value of a home. This information can go a long way towards helping a prospect feel confident about making the leap.
In this blog, well look at some facts about how solar affects home value and the studies behind them that will help you close those tough clients.
Why Do Home Values Increase With Solar
You can benefit from utility bill savings over the 25 to 30-year lifespan of your PV system. This can be well over $100 in monthly savings with an average-sized system. If you sell your house, you can pass those savings on to the new owner. Even if you never sell your home, your installation fully pays for itself many times over as utility rates go up.
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Can I Make Money With Solar Panels
Estate agents’ feedback suggests that installing solar panels will not increase the value of your home when you come to sell it.
The professional estate agents body is NAEA Propertymark – its chief executive, Mark Hayward, explained that solar panels are unlikely to feature in the valuation models of estate agents or mortgage providers: ‘They’re on very few people’s shopping lists at the moment.
‘People don’t buy features, they buy benefits. So you need to articulate it in terms of savings.’
But Mr Hayward added that the age of the solar panels, whether they’re owned by another company, and their effect on the appearance of the property could all have an impact. He advises getting a surveyor to check solar panels if you’re buying a property with them installed.
Panel and installation costs have dropped over the past few years, making it more likely that homeowners can use their savings to finance them. 86% of Which? members who own solar panels financed them from their savings.
But the Feed-in Tariff government subsidy , which pays you for generating electricity, has also been cut – by 65% compared with rates before 2016. If you install solar PV now, it will take 21 years to pay back the cost . You could expect to make a profit of around £650 over 25 years.That’s based on the current rates of 4.07p/kWh for electricity generated and 5.03p/kWh for electricity exported.
Cost Of The Solar System
Though prices may be dropping, the cost of your solar system will vary depending on the type of system you choose, the size of your system, and your location. Some states have rebates and incentives that reduce the overall cost of solar electricity systems.
In general, the National Renewable Energy Laboratory says a 2-kilowatt system, which should offset the electricity use of an average-sized home, will cost about $8 to $10 per square foot before state and federal rebates and incentives.
Solar panels dont require much maintenance, aside from an occasional cleaning. The price of cleaning should run between $150 and $330, and cleaning should be done on an as-needed basis.
Providing regular cleaning and maintenance to your solar panels may be required if you lease your panels or to keep your warranty current. Read the fine print in your agreement, so youll know if cleaning and maintenance is required .
The EPA offers tax credits to homeowners who install solar energy systems. Until the end of 2019, that tax credit was 30% of the total cost of your solar system. Beginning in 2020, however, the percentage begins to step down. By the end of 2021, the credit disappears completely.
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.
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Do Solar Panels Affect Property Values Differently From State To State
As noted elsewhere, the value of a home varies depending on the location or region in which the home is. A sunny state will have a drastically different value than a low-light city home with solar panels.
As to actual figures, California has had more studies done than others, so having a legitimate breakdown by state is a bit challenging. However, you can easily assume that areas with more sunshine hours will have a higher resale value with solar panels on the home.
Apart from this aspect, there are three other major factors that determine how much solar panels affect property values in different states.
Pros And Cons Of Selling A Home With Solar Panels
|They increase your homes value by 4.1%, on average|
|Easier to sell a home with ready-made energy savings of up to £390 per year|
|Save 1.6 tonnes of CO2 per year 74% of adults are concerned about climate change|
|Popularity makes convincing easier there are a million UK solar homes now|
|62% of people want solar panels|
|Solar is the most popular energy source|
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Add Value To Your Home With Solar Panels
Do solar panels really increase home value? Yes! Its time to put the sun to use on your home. Solar panel installation is a sound investment when youre upgrading your home. Whether you want to take advantage of the benefits of producing clean energy while you live in your home or want to add a sizable value once its on the real estate market, solar is the way to go.
How Much Do Solar Panels Increase Home Value
Many homeowners, buyers, and appraisers know that the installation of solar panels and solar batteries can increase a propertys market value. In fact, one study confirmed that solar installations increase a homes resale value by up to $5,911 for each kilowatt of solar panels installed, and another estimated an increase of 4.1% of the homes value.
Where do these figures come from, exactly? To begin with, consider a Zillow study, which notes that homes with solar installations tend to sell for about 4.1% more than homes without. Of course, this is an average. Some locations show a higher value add , and some show lower .
An older study from Lawrence Berkeley National Laboratory reveals an increase in resale value of approximately $5,911 for each kilowatt of solar power thats installed. So, how much do solar panels increase home value? Lets take a look at some averages:
|Home Solar System Size|
*Figures based on study by Lawrence Berkeley National Laboratory.
Its worth noting that these amounts are roughly in line with the total cost of a solar panel system, which may be just the incentive you need to finally take the plunge into solar power.
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