With the decreasing cost of solar and vast improvements in quality and feasibility for homeowners, solar energy is growing rapidly. While solar panels save you money on your energy bills while cutting down on pollution, do solar panels make your home more valuable?
Let’s take a look at studies from across the country to see how solar panels affect home prices, and whether solar is the right investment for you.
Solar panels increase home property values
Not only do solar panels save you money on your energy bills, but once it comes time to sell your home those same panels can increase your property value.
According to the U.S. Department of Energy’s Lawrence Berkeley Laboratory, a 15-year study in eight states found that “home buyers consistently have been willing to pay more for homes with host-owned solar photovoltaic energy systems.”
The study goes on to state that this averages about $4 per watt of PV solar installed (which equals $4,000 per kilowatt). This is about $15,000 for a typical solar system.
The study was conducted from 1999 to 2013, with 22,000 home sales analyzed in eight states.
Zillow also found in 2019 that homes with solar panels sold for 4.1% more on average than homes without solar power. For a $300,000 home, that would be an additional $12,300 in value on average.
This is in addition to the draw that many will experience when looking at a house that has solar panels already installed. Solar panels create energy savings by reducing or eliminating power bills, which is a perk many home buyers will see the benefit of.
According to a Zillow Group Consumer Housing Trends report, more than 80% of home buyers say energy-efficient features are important.
The value of solar panels fluctuates by area and need. For example, if you live in an area with frequent power outages and storms, or very high energy rates, solar panels might be seen as a more compelling feature for home buyers.
Demand for solar in states like Utah is also at an all-time high due to our solar potential. Home buyers will be very interested in purchasing a home with panels already installed because they’ll save on installation costs.
Still on the fence about purchasing solar panels? There are many benefits to installing solar panels for your home.
Benefits of installing solar panels
In addition to the increased property value, solar panels can provide many benefits to you and the world.
This includes the environmental benefits, such as a reduction in our reliance on fossil fuels that pollute the planet, and monetary benefits such as reducing or eliminating your power bill. Solar panels also increase your independence from the power grid, enabling you to avoid price hikes and severe power outages.
To learn more about the benefits of solar panels in Utah, be sure to read our article on the topic.
If you are looking to switch to solar, there’s no better time than right now. Federal and state tax credits may be available to you, but these credits won’t last forever. The federal Investment Tax Credit expires in 2022. Meanwhile, the state is phasing out the Utah Renewable Energy Systems Tax Credit by 2024.
Take advantage of these credits today. ES Solar is Utah’s leading solar provider and installer. Our certified contractors are readily available to eliminate your energy bill and increase your home’s value.
Contact us today at 801-614-0606 to get a free quote and home evaluation. Save with solar power today, help our environment tomorrow!