For most people, owning a home is the biggest investment they will make. And with the right home improvements, you can add value to your home as an asset. But not many home improvements will start paying you back from day 1. Not like going solar, which can both boost your property values and deliver monthly savings by lowering your monthly energy costs.
Installing a PV solar system is an attractive selling point for many buyers these days looking for homes with more sustainable options. Having rooftop solar already up and running, with proof of monthly energy savings, and as a backup to have power when the grid fails can definitely set your home apart from the rest.
So just how much can solar increase the value of your home?
Your home’s property value and selling price could see as much as a $15,000 boost according to The Office of Energy Efficiency and Renewable Energy. That means your solar energy system can pay you back while it increases the value of your overall property.
According to studies cited in the National Renewable Energy Laboratory, home values went up $20 for every dollar it reduced annual electric utility bills. For the typical customer saving $400 a year with solar, that adds up to an increase in property value of $8,000.
Not all buyers are looking for a solar powered home, but there is an increasing trend towards solar as energy costs continue to rise and weather patterns become more intense. The threat of outages from a failing electric grid can be mitigated with solar energy and solar battery storage while saving you money.
Not all solar energy systems deliver value for homeowners
Before you start your journey to go solar, know that this property value increase will only really apply to those who own their solar energy systems. If you lease any part of your system, the value isn’t quite there to justify a big price jump. And make sure your real estate agent understands the full benefits of the system you’ve installed. If your solar energy system has major solar battery storage included for more backup, that can provide additional value.
With a leased solar energy system, a third party owns the equipment while the homeowner benefits from the clean solar energy generated at a lower cost than traditional energy. This can be a good system for the homeowner in the immediate sense but is not likely to translate into home values since the next owner would have to take on those costs, too. Homes with leased solar systems can also push buyers away who see the arrangement as complicated or uncertain.
Is going solar right for your home?
There are a lot of reasons to go solar, including financial and environmental benefits. It stands to reason that selling a house with a fully paid for, active and working solar energy system can be a big value to homebuyers. If you’re looking to sell or looking to improve your home in a meaningful way, you can’t go wrong with solar.