Aside from the obvious fact that solar panels reduce electricity bills, the question of whether they increase a property’s value is often asked. If you want the short answer, here it is: yes. If you want to delve more into the topic, keep reading this article!
According to a research by Zillow:
- Homes with solar-energy system sold for 4.1% more on average than comparable homes without solar power
- Homes with solar energy in San Francisco can fetch a premium of around 4%
- More than 80% of homebuyers say that energy efficient features of a home are important
Similarly, a research by Lawrence Berkeley National Laboratory shows that homes with solar panels sell faster than homes without. The main reason for this is that homeowners (especially the ones who know they consume a lot of power) know that it is worth spending a bit more money up front if it means saving substantially on future utility bills. Since the price of electricity keeps on increasing every year, it is expected that more people will understand how valuable having solar in their homes. The Department of Energy also emphasizes how solar panels are viewed upgrades, like a renovated kitchen or a finished basement.
Moreover, the recent wildfires and heatwave in California haveinspired many homebuyers to opt for an eco-friendly house. The blackouts have showed people how fragile power from the grid could be. In 2019, PG&E shut off power for more than 700,000 customers leaving people in the dark for two, three, four, sometimes five days without power.
Finally, it is important to keep in mind that California has already mandated that all new homes starting 2020 requires solar panels. The state estimates that this law will help homeowners save about $19,000 in a 30-year period. This law alone already signals the potential for increase in value of solar-powered houses in the state in the upcoming years. In fact, solar appraisers have added the cost of the solar system into the home value within the last few years.
To assess the value of solar homes, homebuyers often look for two things:
- documentation that the installation was done properly
- proof that the system is saving money on electric bills
- the warranty of the system
These are the reasons why it is important to go with a reputable solar dealer who can help you with these processes and most importantly, make you understand the basics of how your system works and how to read your bills.