Solar panels offer many benefits to homeowners, such as reducing energy bills, lowering carbon footprints, and earning tax credits. However, one lesser-known benefit is the increase in home value. Properties with rooftop solar installations have been shown to sell for 4.1% more than comparable residences without solar panels, translating to roughly $9,300 for a median-valued home. Additionally, homes with solar panels are 24.7% more likely to sell for more than their asking price, making solar a significant selling point for prospective buyers.
The increase in home value due to solar panels depends on various factors such as location, electricity costs, and the type of system installed. Homebuyers are particularly interested in systems that can cover all or most of the home’s energy needs, resulting in significant savings over the system’s lifespan. In states with higher electricity bills, such as California, solar panels are highly valued by buyers, and many states offer credits and tax exemptions for solar systems, further enhancing the financial benefits for homeowners.
The impact of solar panels on home value varies by market, with some states experiencing higher premiums for homes with solar installations. For example, in New York, homes with solar panels saw a 5.4% increase in closing prices compared to the national average of 4.1%. Specific metro areas like Los Angeles, San Diego, and New York City have also seen increased demand for solar panels. However, changes in state regulations can affect the value of solar installations, as seen in California’s shift to a net-billing program, which may reduce the financial incentives for homeowners.
Despite policy changes and state-specific factors, having a well-maintained rooftop solar system is unlikely to lower a property’s value. In fact, buyers may pay more for homes with roofs suitable for future solar installations. However, changes like those in California, which reduce incentives for solar energy, can impact the value of solar installations. Therefore, having a home battery backup system along with solar panels may become increasingly important to maximize the value of a property.
Overall, solar panels can be a significant investment for homeowners looking to increase their property value, save on energy bills, and reduce their environmental impact. Despite regional variations and policy considerations, solar installations can provide long-term financial benefits for homeowners and make their homes more attractive to potential buyers. As electricity prices continue to rise and the demand for renewable energy grows, solar panels are expected to remain a valuable asset for homeowners seeking to enhance the value of their properties.
