Are you thinking about renovating your home to increase its value? Forget about redoing your kitchen. Get more bang for your buck by installing solar panels. Even if you’re not planning to sell your home in the near future, going solar is an investment pays off from Day 1.
So how much more can your house fetch on the market if it has solar panels? Unfortunately the answer is, “It depends.” On average, buyers are willing to pay a $15,000 premium for a home that has a solar panel system. Your home may also sell up to 20% faster than homes without a solar system. Some of the factors that affect how much value solar panels will bring to your home are:
Do you live in a state where home energy systems are commonplace? States with strong government incentives for solar or have high electricity costs place the highest value for solar energy systems. Homes in California, for example, increase their property values by 3 or 4% by installing solar because the solar energy market is well developed.
The size of your solar system is directly proportional to the amount of added value it provides. A study by the Lawrence Berkeley National Laboratory claims that for every kilowatt in a solar rooftop system’s size, it increases your home’s value by $5,911! National Renewable Energy Laboratory also performed a study, finding that for every $1 you save on energy costs, it increases your home’s value by $20.
Larger homes often have larger solar panel systems and therefore have a higher nominal increase in value. Homeowners may be discouraged when they find that the percentage of increased home value is lower, but this is simply because their homes start off with a higher property value.
Buying vs Leasing
You may be thinking, “Okay, installing solar panels on my home will increase its value, but how do I know if I should buy or lease?” If you plan on leaving your home within 20 years, we recommend that you buy solar panels. One of the biggest selling points of a lease is that you’re not responsible for any maintenance. Surprisingly, solar panels have almost zero maintenance. If you plan on selling your home within the next few years, trying to get a buyer to bite on a solar lease can be a challenge. Even though you are leaving your home, the solar lease stays. Think of it as: buyers think that a home which owns its solar panels is an asset, but a home with leased solar panels is a liability.
Are you considering going solar? Let Energy Monster give you a hand. We’ll explain the rebates and credits available to you so you can get the most value for your money. Get your free quote today!