Do Solar Panels Improve Your Home’s Value?
It’s natural that a lot of questions will come up when you’re considering installing solar panels. Finding a solar contractor is important, and they can help you answer the question about where to install your solar panels or solar hot water heater. Others, like the long-term financial benefits of installing solar panels are asked quite often as well.
“How much money will I save on my electricity bill?” is a very common question among prospective solar users. What are the pros and cons of using solar energy to power your home, is another. But perhaps one of the questions asked by homeowners the most often is, do solar panels improve your home’s value? The short answer: yes, they do! The long answer is still yes, but requires a little more explanation. Below are some questions to ask yourself to find out how much value solar panels will add to your home—and the value of your home in the future.
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Will You Own Your Solar Panels?
Choosing to own the solar panels you install on your home, versus leasing them, is the best option to increasing the value of your home. Sure, the upfront cost of installing solar panels can be overwhelming and somewhat off-putting. However, remember that you can take advantage of federal and local rebates in your area, which will help ease the initial cost over time.
When you own the solar panels, their value is added to your home during the price assessment and will most likely increase the selling price of your home. If you’re leasing the solar panels, they will still add value to the new homeowner, however it will not be included in the selling price of your home. If you do opt to lease the solar panels and decide to sell your home, you could show any potential buyers the amount of money saved by using solar, and possibly negotiate to add the leased solar panels to the cost of your home.
Do You Live in an Active Solar Market?
An active solar market is an area of the country that receives ample sunlight and is home to residents already utilizing solar power in their homes. The most active solar markets are: California, Arizona, North Carolina, New Jersey, Nevada, Massachusetts, New York, Hawaii, Colorado, Texas. Homeowners in those areas that choose to install solar panels are more likely to sell their homes for a higher price, than homeowners without solar panels.
If you don’t live in one of the most active solar markets, don’t worry. With solar technology improving daily, more and more homes all over the country are having solar panels installed. There are solar panels that operate fairly efficiently during cloudy weather and still lower your energy bill. For this reason, solar panels are attractive home additions to potential buyers all over the country.
Are Solar Panels Worth The Investment?
Look at the cost of your energy consumption—your energy bill. Did it make you sweat a little? Installing solar panels is a great long-term option for lowering your energy bill and reducing the strain on your city’s electric grid—preventing rolling blackouts during heavy energy-usage seasons.
Purchasing solar panels for your home is definitely an investment, as stated above. An investment that will pay you back over time—and will save you money in the long run. Much like buying a home is an investment, so is buying solar panels—and it’s an investment that adds value to your home, your initial investment.
Will the Number of Solar Panels Installed Reflect the Size of the Home?
The number and quality of solar panels on the property should be proportional to the size of your home in order for them to improve your home’s value. For example, a 4,000 square foot home should have more solar panels than a 1,000 square foot home. This is because it takes more electricity to power 4,000 square feet than it does 1,000 square feet. Moreover, generally larger homes have higher values when re-selling. Adding solar panels will simply maximize your home’s value, whatever its size. Find out what size you need by using our solar calculator, ModSun.
If you’re thinking about purchasing a home with solar panels already installed, good for you. You’ll be buying a house that will already be working for you by lowering your energy costs the minute you walk into your new home. If the home you are interested in doesn’t have solar panels, it might be worth looking into what the capacity is for installing them in the future.