For years, we’ve been talking about how much solar panels increase the value of your home. We use a simple calculation to determine the increase in value: We add the energy savings you’ll see per year for 20 years. Well, it looks like we’re not just blowing solar smoke; study after study after study comparing sales of solar and non-solar houses show clearly that homes—even near-identical homes in the same community—sell for more with solar. But we know you don’t want to read a 200-page PDF to find out, so we’ve collected some of the most important information below.
In California, way back in the medieval times of 2001, the National Renewable Energy Laboratory began looking at what they called “high-performance” or “zero energy” homes, and compared them to similar homes without solar installed. The researchers followed the life of the homes for 5 years, from building to resale, and what they found is great news for anyone who wants to go solar: people who owned homes with solar panels were happier living in them, and they experienced the promised energy savings. Better yet, when the owners of solar homes sold them, they made 14% more money, in this case, that’s over $43,500 more.
But wait, I can almost hear all you smart people saying “that was before the housing bubble burst! Those numbers can’t be right anymore!” Well, I’m here to tell you that they’re nearly as good today. Researchers responsible for the most recent study out of California concluded that “each 1-kW increase in size equates to a $5,911 higher Premium,” meaning that homes with a 5-kW installation (the size on which we always base our estimates) sell for a price almost $30,000 higher than a similar home without solar.
And that value is shown to remain even years into the solar panels’ usable life span. A Colorado study from 2013 that compared numerous sales of solar and non-solar homes from around the state showed price premiums of between $1,100 and $3,920 per kW for systems that were between 3 and 5 years old. We’re still talking between $6,000 and $20,000 more for solar homes, even in snowy Colorado.
The bottom line with home value increase is that, should you decide to sell, you can be sure to recoup your investment in solar, even if your system hasn’t paid for itself yet. Just another way that solar is a safe bet. And the best solar states recognize that value and provide property tax exemptions for the added value as an incentive to homeowners who install panels.
With all this good news, why not get a free quote from one of our trusted partner installers in your area?
EDIT: As redditor champyonfiyah points out…
from the linked through study (pdf link)…
From the summary, page 293.
Of the 30 case studies:
- None of the homes were sold for less because they had a PV system.
- Twenty‐one homes sold for higher because they had a PV system.
Of the properties where PV contributed positively to their value:
- The LOW value indication per kW ranged (excluding the one $300 per kW indicator as it had extenuating circumstances) from $1,450 to $2,570.
- The HIGH value indication per KW ranged (again, excluding the $300 per kW indicator) from $1,620 to $2,570.
- Thus, the LOW and HIGH value indications are in the same general value range.
With regard to the marketability of the properties with PV systems:
- Four had longer marketing times because they had PV systems.
- Twenty four properties had much lower marketing times as compared to the average days-on-market for their area