With a growing number of homeowners deciding to install solar panels in their homes in order to save money while also doing their part to help the environment, you might be interested in knowing whether or not installing solar panels will increase the value of your property. Unfortunately, this is not a clear yes or no question, as there are many factors that go into determining whether or not solar panels add value to a home.
Benefits of Solar
Solar panels offer many benefits to homeowners. First, they can product an amazing amount of electricity. The amount of electricity produced, however, is dependent upon factors such as the number of panels within the system as well as the amount of sunlight that is available. A typical solar panel can produce enough electricity to provide at least of a home’s energy needs. The angle of your roof, the weather in your area and the orientation of the sun can all impact the amount of energy that is produced.
Since solar panels can create so much energy for your home, they can also help you save on your overall energy costs. With your solar panel system providing half of your home’s energy needs, you can cut your energy bill in half. Over time, the cost of installing the solar system will pay for itself. Eventually, you may eliminate your energy costs altogether.
Factors Affecting the Impact on Home Value
While solar panels can help reduce a home’s energy cost, it is still not a given that installing a solar system will increase the value of your home. Some factors that will determine whether or not solar panels increase your home’s value include:
- Are the solar panels leased or owned?
- Where do you live?
- What type of home do you own?
- What was the starting value of your home?
- How much energy does the solar system help you save?
Generally speaking, homes that are already more highly-priced will tend to see the highest increase in value from the installation of solar panels. Similarly, a solar panel system that is bought rather than leased will be of greater value to potential buyers. While leasing the solar panel system allows you to defer the cost as you pay it over time, a buyer may not be interested in continuing to pay off the lease if the system is not paid off before you put it on the market. With the cost of solar panel systems typically ranging between $15,000 to $20,000, this is an added cost that some buyers may be unwilling to absorb.
Where you live will also have an impact on how much value solar panels can potentially add to your home. In eco-friendly Portland, Oregon, for example, buyers are more likely to be willing to pay more for a home with solar panels than in a community where the environment is not as great of a concern. Boston does not fall on either extreme of the continuum, which means solar panels may add some value to the home, but may not add enough value to be worth installing for solely that purpose.