Investing in solar panels is a good decision for many people and the planet. Solar energy systems allow property owners to turn to solar power to heat their homes, which means not having to worry about relying on utility companies and paying an electric bill. Solar installations are valuable – and they are costly, too. The question is, though, do these panels increase home value?
At SmartSolar, we want to help you determine if a solar energy system is the right decision based on your goals and the energy costs it could save you. Contact us now to learn more about installing solar panels on your home.
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The Bottom Line:
- Could Solar Panels Increase Home Value? Solar energy can increase home value because using renewable energy reduces energy costs, and you can also sell excess energy produced by your solar panels to utility companies, among other things.
- How to Determine the Value of Solar Systems for Your Needs: Utilizing the federal solar tax credit, buying a quality system, and taking a look at comparable homes, are ways to keep solar costs down and see significant energy savings.
Could Solar Panels Increase Home Value?
There are many reasons to invest in installing solar panels for your home.
- They will reduce energy costs because you can harness the sun’s energy instead of paying for it through the utility company. Solar savings can be exceptional.
- You can also avoid being without power when there are power outages in your area. Your power will continue to work thanks to solar batteries. That’s good for those who do not want to rely on utility companies.
- Excess energy produced by your solar panels could be sold to the utility company – a process called net metering. That could mean you are eliminating electricity bill costs and getting paid for the solar energy you do not use and send back.
- It’s good for the planet. A solar-powered home relies on the sun through the use of solar equipment. This means you are using renewable energy, not fossil fuels, to create a carbon footprint and greenhouse gas emissions.
When you consider all of these benefits, the solar savings, the good that you are doing to the planet for your solar investment, and your ability to eliminate your electricity bill, the investment in solar panels is great for you. But what about potential home buyers?
Solar panels can add value to your home
As Energy.gov notes, solar panel systems can last for decades and require very little maintenance. For potential buyers, there are some great reasons to buy a home with a solar panel system. That is, having solar panels will not encourage people not to buy your house. In fact, most people will find this to be an added benefit to the property value compared to other homes.
It may also add value to your home. A survey that was conducted by the US Department of Energy’s Lawrence Berkeley National Laboratory found that solar panels can add value to a home, with people in six states showing they would pay $15,000 or more to buy a home that had solar panels on it compared to purchasing a home without solar panels.
Homes with solar panels could be an excellent way to boost your home’s resale property value. The amount you will get back for solar panels may be less than you put into them. Though some areas may differ, most often, you should invest in solar panels for your own power needs. Don’t add solar panels just before renovating the home to list it on the market. The cost savings come from saving you money on energy costs, but a decade down the road, your system could add value to your home if you decide to sell it.
How to Determine the Value of Solar Systems for Your Needs
Investing in residential solar panels can be an excellent thing, and there are a few ways to keep costs down and see significant energy savings.
Get the tax credit
A federal solar tax credit may help you reduce solar panel installation costs. To incentivize solar installation, congress passed the federal solar tax credit, mandating that solar systems installed in 2020 and 2021 were eligible for a 26% tax credit. In August 2022, Congress passed an extension, raising it to 30% for the installation between 2022-2032. Solar panel installation can be more affordable using this and other solar incentives.
Buy a quality system
Solar panel installation of a high-quality product makes your initial investment worthwhile. It also helps to ensure the product will do well for you for years to come. That is going to help home buyers in realizing the value of the system on their home. For example, if you have solar panels installed, and the system is a high-quality one with an extended warranty still in place, that is going to help prospective buyers to see your home value as higher than a home that has an older model or less efficient solar panels on the house. Quality matters.
Take a look at comparable homes
A home solar system is a significant investment. To find out what it can do for you, speak to local real estate agents about what they see within your local market. What are comparable homes to yours with solar energy systems installed selling for? Are there many people making solar investments in your area? Also, consider whether excess electricity is produced and sold back to the utility company, as that could also help increase the home’s market value.
Let Our Team Help You With the Process
Solar panels can be a very positive investment, and installation by our solar installers team at SmartSolar can be easier than you realize. Contact us to learn more about energy savings and the benefits of going solar.
Meet the author:
Joey Cheek spent 10 years on the US National Speedskating Team where he competed in two Olympic Games, winning gold, silver, and bronze medals. He attended Princeton before diving into the startup and tech world. In 2011 he launched a livestreaming platform for sports before leading a team of engineers building next-gen news and content apps for Fortune 100 companies. He is the CEO and co-founder of SmartSolar.org, whose mission is to move the earth to cheap, abundant, carbon-free energy.
