Increase Your Home Value

Increase your home value by going solar with Sunfuse Solar.

There are various ways to improve your home’s worth. For example, you can spend money on improvements like elaborating landscaping, swimming pools, plumbing, roofing, etc.

However, the hidden maintenance and upkeep costs associated with these improvements reduce the potential return on them.

One of the viable ways to increase the value of a home is to install solar panels on the property.

Going solar may have a high initial cost, but it has several attendant advantages. Not only do solar panels enable you to lower your carbon footprint, they also help save money on energy costs over time. Solar panels also increase a home’s value and make it more desirable to potential buyers.

How Do Solar Panels Increase Your Home’s Value?

Solar panel installation increases both the current and resale value of your home. To ascertain the extent in which the installation of solar panels affects home buyers, the Lawrence Berkeley National Laboratory (Berkeley Lab) of the U.S. Department of Energy carried out a research on solar homes. The research showed that:

Home Solar System Size

4 kW 6 kW 8 kW 10 kW

Amount Solar Panels Increase Home Value*

$23,644 $35,466 $47,288 $59,110

This means that for every kilowatt of solar power installed in a home, there is a corresponding increase of approximately $5911 in the current and resale value. Also, it was found that buyers were willing to pay $15,000 more for solar-paneled homes than for equivalent properties without them.

Home buyers across the nation are willing to pay an average of 4.1% more for a house with solar panels. Buyers typically pay approximately $4 per watt of installed solar capacity. So, for a typical 6-kilowatt solar PV system, solar can add $24,000 to your home’s resale value.

Furthermore, according to the National Renewable Energy Laboratory (NREL), for every dollar saved on energy costs, solar boosts a home’s value by $20. This indicates a 20:1 return on investment. So, a solar energy system that saves a homeowner $400 annually can add a value of $8,000 to the property.

These greater savings translate into more earnings when you sell your home. You can raise the price for your home because of this added value.

Saving Time and Money

The less time your home spends on the market, the more money you can save on storage and transportation expenses. Also, if it takes longer period to sell off your home, it is possible you are forced to eventually accept a lesser pay than the home’s worth.

However, homes with solar panels typically sell faster than homes without them. According to NREL research, homes with solar panels sell 20 percent more quickly than comparable homes that rely on the grid.

Also, in Texas, installation of solar panels positively impacts a home’s Energy Performance Certificate (EPC) rating. Homes with high EPC rating has an increased value and sells faster. So, installing solar is an effective strategy to sell your house quickly at a competitive price.

Tapping Local Trends

Given how fiercely competitive the housing market is, it is advisable to stand out with energy-efficient modifications

Some Front Range buyers won’t consider buying a house that doesn’t have solar panels. According to CNBC, while looking for homes, 80% of buyers consider solar panels and other energy efficiency improvements. Also, in Texas, solar homes sell 20% faster than properties without solar panels.

As a result, setting up a solar energy system helps in maintaining your competitive edge as a home seller.

Note that:

•For solar installation to increase your home value, you need to own the solar panels, and not lease them. This is because owned panels are always included in the appraised value of the property, while leased panels are not. Buyers are enthusiastic about solar, but they don’t want to be locked into the previous homeowner’s contract.

• The age of a solar system also determines the extent of its contributory value to a home. An outdated, worn-out solar system would add little value to your home, while a new solar system would add more value.

• Also, solar systems with batteries increase the value of a home more than solar systems with no batteries.

Conclusion

In addition to its multiple advantages (such as long-term energy savings, tax credits and incentives, net metering programs, etc), solar panel system also increases the value of a home.

Therefore, upgrading your solar panel system is beneficial, whether your goal is to increase the value of your home for yourself or for potential buyers.