How Does Solar Impact Home Value?
Research shows that homes with solar sell for more. That is, your home with solar has a higher value than a similar home without solar. They also indicate that homes with solar sell faster than those without.
A 2019 study conducted by Zillow, an online real estate and rental marketplace, compared homes with and without solar-energy systems that were listed for sale and sold between March 1, 2018 and February 28, 2019. Zillow’s study proved that solar increases home value nationwide by an average of 4.1 percent. Granted, owning vs. leasing solar matters, for owning a system outright adds value to homes, while leasing does not.
According to U.S. Department of Energy’s Lawrence Berkley Laboratory (2015), solar adds more than a $4/watt premium to the purchase price of a home in CA. That means, for an average system size of 5.5 kilowatts, add over $22,000 to the value of your home. It’s important to note, too, that solar is exempt from property tax in CA. Another study by the Berkley Lab found that the sales price of the average home increased $17,000 with solar panels.
Similarly, publications from the National Renewable Energy Laboratory on solar market research and analysis discuss how, across several housing developments, “solar homes appreciated 20% more, and sold 17% faster than the non-solar homes” (Clean Technica).
With the help of an educated realtor it seems apparent through these studies that solar is a safe and lucrative investment for your home or commercial building. The appraised value ultimately comes down to whether an appraiser can utilize values of comparable homes with solar in your area.
Take a moment to also read an example locally (article link) where Sharon Sausedo, of Sausedo Realty, bought a property in Penn Valley that needed extensive work and upgrades before selling. She repaired and remodeled the house, and then put it on the market in late 2018. Sharon stated that the appraiser indicated that the property would likely not have come in at the offer price without solar.
When all is said and done, solar pays for itself and then some when you sell your property. With incentives, appreciation, and fast return on investment, solar is an increasingly better deal. The fact of the matter is solar increases the value of your property.
Sounds like a win-win to us!
P.S. – Our customers can sleep soundly knowing that we have the best warranties in our industry, guaranteeing the value that solar adds to your property.
Sustainable Energy Group is so confident our solar installations will stand the test of time that we offer a 25-year installation warranty on the workmanship of our installations as well extended warranties for parts and equipment.