- Solar panels, in addition to decreasing your electricity bill, can also increase the value of your house.
- Estimates amount to as much as $20,000 property premium increase when you install solar panels for your home.
- There are factors involved which can make the price higher or lower.
- People also prefer houses with solar panels installed and usually have no problem with aesthetics or price premium.
Solar power has always been touted as the driving force for the future of mankind. A lot of experts regard solar as a key factor in facing the future of our society. That is because one of the biggest problems of modern society right now is energy. Gasoline, electricity, fire, diesel, oil, these are the components necessary for civilizations.
As such, without these resources, civilization as we know it, would probably collapse. Could you imagine spending more than a day in a house without electricity? Or even a week? Households will be in chaos and businesses would not function at all. Hence, solving the energy problem is crucial and solar power can provide tons of electricity for thousands of generations to come.
Of course, the best thing about solar power is that its benefits are not just for society and the environment as a whole. Each individual human being or family unit can also reap the rewards from the sun. It is a given fact that solar power can reduce your electric bills, leading to a lot of savings, that is just one benefit.
The other individual benefit of solar power is that is can actually increase the value of your house. By purchasing solar panels for the house you own, you are boosting your property’s value by a lot more than what you paid for the solar panel system.
The sun shines brighter on houses with solar panels…
It is worth noting that only one type of solar panel right now can and will increase the value of your house, and this is the Photovoltaic (PV) solar panel. There are many other types of solar panels, some experimental and others for mainstream use, but the most popular and most cost-effective at the moment is the PV panel.
As for why you might not have heard of this benefit for solar panels before, well, the property value increase for solar panels has only recently been researched. Nevertheless, the results were fruitful and ample enough to convince people to purchase solar panels.
Additionally, houses with solar panels have also been a favorite among real-estate agencies since apparently, these houses get sold a lot more often compared to those without solar panels. This was according to the study conducted by Lawrence Berkeley National Laboratory (LBNL).
As much as 22,000 home sales were analyzed between eight states. 4000 of these homes had solar panels installed on them, they were sold a lot more successfully and easily compared to those without.
How much does your house gain?
Indeed, solar panels make home sales a lot easier since people are more inclined to commit to cleaner and greener energy. Then there is also the fact that having your own source of electricity is a reliable peace-of-mind which gives you a clear safety net compared to households without solar panels.
So how much exactly does one gain if they purchase solar panels for their houses? A study called Selling Into the Sun: Price Premium Analysis of a Multi-state Dataset Of Solar Homes, did note that on average, each watt of a solar panel installation can add $4 to the home’s value in California and an average of $3 per watt elsewhere.
When multiplied with the usual number of wattage needed for residential solar panel setups, the actual increase for your property value can reach as high as $20,000 in California and $15,000 outside California. That certainly increases the premium for your home, and considering that most solar panel systems usually cost $12,000 to $18,000, that property increase is quite a bargain.
The same can also be said for business establishments which have employed solar panels for their day-to-day operations. One important thing to note is that there are factors which could affect the price increase for your property when you add solar panels to it, these factors are:
The actual property value of your home
- Where your house is located
- The price of your solar panel system
- Laws and mandates in your state, especially regarding property sale
- The real-estate agency you employ or transact with
- Age of the solar system
- The size of the solar panel system, and
- The brand or manufacturer of the solar panels
Still, examination of sales of homes with solar systems in six states from 2010 to 2014 found that properties with PV systems sold at a premium in all of the markets. Back then, solar panels were not as popular or as in-demand as right now, so things have certainly improved.
You also will have no problem selling the house
Of course, this is assuming that you plan to sell your house, but since that can be an easy task when done in the U.S., it is certainly a good advantage to have. Furthermore, studies have also concluded that houses with solar panels in them actually sell faster than those without.
A study conducted by the National Renewable Energy Laboratory (NREL) has concluded that houses with installed PV solar panels sell 20 percent faster on average across several subdivisions built by various California contractors. Then, there is also the fact that people are more likely to choose houses with solar panels already built into them.
A surprising fact is that people do not consider the aesthetics of solar panels as detrimental to the house as a whole. So it really does not matter if solar panels ruin the outside appearance of the house, people will still prefer homes with solar panels compared to those without. This goes the same for the resale of the house too.
Of course, one must also consider the factors involved, but the general consensus is that solar panels are overall, good and appealing upgrades for your home. Some states clearly recognize this as well, especially in California. The Golden State has actually mandated that all new and future home constructions are to include solar panels. While that increases the price of the house, the studies above have proven that people in the market for homes regard solar panels as worthy investments.
Factors expanded
As stated above, there are several factors which could affect how much the property increase to your house will be if you purchase a solar panel system for it. However, one factor is perhaps more crucial to than the rest when it comes to the resale of your house, and that is the age of the solar panel system.
It is a known fact that solar panels usually have a lifespan of 20 to 25 years, while not many homes have probably used solar panels that long, don’t expect an already used solar panel system to add the same house premium as that of newer and unused panels on newly built houses. After all, people still want everything to be brand new, most of the time.
As such, you may want to take note of the depreciation of aging solar systems as these can decrease the house premium. Then, there is also the fact that solar panels are an ever-evolving technology and have made leaps and strides in progress every year, hence, newer solar panel technologies will probably be present soon.
You might want to consider the technological pace factor since newer solar panels will always make the older ones nearly obsolete. Right now though, PV solar panels are still the best and they will probably be for a few more years or a decade at most. So if you do want to capitalize on the property premium increase brought by solar panel installations, then now is the perfect time before something new comes along and people start preferring that one over PV.
Ecosolar USA can provide you options
All this information about property value increase and solar panel premiums can get rather hectic and may put pressure on your decision making, especially since solar panels are quite a big investment. You do not need to worry, however, since SunPower by Ecosolar USA can help you with any confusion or query about such matters.
As master dealers for SunPower, we offer only the best solar panels and can assure you that taking advantage of the solar panel premium on property is a pleasant experience. We also believe that people should be informed as much as possible on all the details of investing in solar panels, and property value increase is just one of them.
So whenever you have questions or have made a decision regarding solar panels and need assistance, we are always here to help, feel free to contact us or visit the rest of the website for other information regarding solar power and solar panels.