Do Houses with Solar Sell for More?

When homeowners invest in a residential solar system the main thing on their mind is saving rising electricity costs and adopting an eco-friendlier source of energy. As a result, whenever such homeowners calculate their ROI of going solar, they fail to consider a very crucial factor, the impact of solar panels on their home’s resale value. 

Yes, you guessed it right! Solar panels can increase your home’s value in the real estate market. Specific numbers vary between each installation and property. Yet recent studies show an average increase in resale value between $4K and $5K for each 1 kilowatt of solar panels installed.

Buyers consider monthly electric bills when purchasing a home. So, when assessing the long-term financial value, they are increasingly open to the premium of a solar-ready home.

Installing solar panels is viewed as an upgrade, just like a renovated kitchen, and homebuyers across the country are willing to pay a premium for the economic and environmental benefits of a solar home.

With lower monthly electricity bills and tax incentives for new installations, homeowners can realistically anticipate not only recovering their initial investment but also gaining a handsome return on their investment. If you purchase a solar energy system, you can expect to add a sizable percentage to your property value. It’s the smart, sustainable energy solution and is encouraging more Canadians to go solar every day.

The impact a residential solar system can have on the resale value of your home depend on an array of factors such as:

● Solar installation prices

● System replacement value

● Environmentally conscious community

● Frequency of power outages

● Age of solar system

● Amount of energy generation

Furthermore, today’s rapid expansion of solar across the country is increasing appraiser and homebuyer understanding of the reliable, long-term benefits of solar power. Hence, solar energy installation will also help sell your home faster than residences without solar panels. 

There is a small caveat that home sellers and buyers need to be wary of. Many homeowners lease solar panels from companies, meaning at the time of a home sale the seller needs to buy out the lease or the seller needs to find a buyer who is willing to take over that lease. Solar leasing companies do provide services for transferring the lease. If the previous owner was entitled to state or federal tax credits related to the solar project, that financial incentive would not transfer to the new owner.

Investment tax credits offered by the government to invest in renewable energy projects including solar are scheduled to be phased out for residential homeowners, but the lobbying fight over this tax credit — currently as high as 30% — is ongoing. If phased out, it would take away one incentive for a homebuyer to purchase a solar system, though costs are coming down at the same time. Bill Gates recently remarked that solar and wind no longer need the support that other sources of renewable energy do, and government incentives should be phased out, and he added that solar and wind companies should now be large enough to drive down costs through economies of scale.

To sum it up, homes with solar panels not only sell for more, but they are also sold faster as well. The premium buyers are willing to pay for solar-powered homes is hinged on a couple of factors as discussed. While some of the benefits, like tax credits, will be phased out eventually as solar technology becomes more commercialized, the remaining incentives are long-term and permanent! 

Aztek Solar is here to help. Schedule a free consultation with the Aztek Solar Team today.

Thanks for Reading!

Brian McKay
(aka The Solar Guy)