How Will Solar Impact my Property Value

A solar energy system is a modern, forward-thinking addition to a house. While many homeowners are interested in powering their homes with solar electricity, fewer are prepared to do the administration and research to make it happen. A pre-installed solar system is a huge bonus that promises reduced power bills for these buyers and the sense that their new home is future-proofed.

If you’re thinking about ways to add value to your home, consider this: solar panels can add as much value—if not more—to your home as a brand-new kitchen does.

There are two kinds of value that a solar system can add to your home: investment value and consumption value.

Investment Value

Investment value is the actual monetary value it adds, increasing the sale price of your home. Studies have shown that for each 1kW of solar installed, your home’s value could increase up to $6000.

Solar panels can add up to 3-4% to the value of your home. For example, if your property is worth $300,000, that means an increase of anywhere between $9,000 to $12,000. On top of the extra monetary value that comes with solar panels, homes with solar panels also tend to sell faster than those without.

Consumption Value

Consumption value refers to the environmental benefits of having an environmentally friendly energy source.

The value a solar panel system can add to your home depends on several factors. These include:

1. Location of your home – Installations in more active solar markets can get you a higher investment return than in a less developed market.

2. Size of the installation – Your property value increase is directly related to the number and quality of solar panels you have installed. The more you have, and the better quality they are, the more your home’s value will increase.

3. Value of your home – Larger, more expensive homes equal a greater property value boost when installing solar panel systems.

Also, some experts have estimated that home value increases by around $20 for every $1 reduction in your utility bills. In other words, if your solar energy system saves you as little as $400 per year in electricity, you could add a whopping $8,000 value to your home! 

When it comes down to Solar Panels, beauty is in the eye of the beholder. For some, solar panels may appear awkward, odd, or unappealing additions to a residential property. As a result, there are concerns that solar panels will devalue one’s property. On the contrary to this belief, solar installations are rather enticing because of the many perks they bring, particularly savings on energy bills. Moreover, with new solar innovations such as integrated Solar Panels and Solar Roof Tiles, going solar has never looked better.

Thus, in terms of property value, solar panels can certainly add value to your home and can make your property more attractive to buyers.

Ultimately, solar panels are a long-term investment that residents must be prepared for. Whether you’re eco-conscious, looking to save money or a mixture of the two, the upfront costs to install solar energy into your home can be daunting. However, the immediate rewards that can be reaped are very much worthwhile.

Solar panels are a great decision for many homeowners. They increase the value of a home and provide clean, renewable, and affordable energy. If you’re considering installing solar panels on your property, now is the time to do it. The cost of installation has come down in recent years, and more incentives are becoming available all the time.

Thanks for reading!

Brian McKay

President, Aztek Solar

aka - The Solar Guy