Lately, more and more homeowners are choosing to go solar to conserve energy and cut down on electricity costs. But what if they’d like to move out of their old home and sell it off? Does getting solar panels have any effect on the property’s value? Will it make sense to get solar, knowing you won’t be living in the same place for long?
Shifting to solar power comes with plenty of advantages —lower utility expenses, eco-friendly energy, backup energy for blackouts, grid independence, and also increased property prices. That’s right, depending on certain conditions, solar panels can increase the value of a property. In fact, studies show that houses with solar installed are more likely to sell for around 4.1% higher prices.
Here’s everything you should know about solar and how it impacts home resale value.
How Does Solar Increase Property Value?
With all the convenience that comes with solar, it can be considered a semi-permanent upgrade to any home. People can save up on money and energy, not having to worry about high electricity bills. In places like Maryland, where the utility rates are steadily rising, green energy like solar is all the more impactful. Residents who have solar installed have to depend less on the main energy grid to sustain themselves. With a battery unit, one can even save up on excess solar energy to power the whole house during blackouts.
However, solar panel installation can be rather expensive. Many homeowners avoid getting solar due to its high upfront costs. Thankfully, with local and federal tax incentives, the cost of installation can be significantly reduced. In solar-friendly states, homeowners can enjoy affordable solar while earning tax credits for sharing spare energy. Naturally, most people would prefer homes that come with solar panels already installed.
Factors That Influence Home Resale Value with Solar
We mentioned before that there are some conditions that decide how much effect solar can have on property prices. Let’s take a look at the major factors responsible for the resale valuation of homes with solar:
1. The Location of The Property
One of the most important factors that determines home resale value is property location. Some areas receive better sunlight than others and are more favorable for setting up solar. Properties that face the direction with the highest sunlight exposure are generally valued more.
2. Type of Solar Installation
Leased solar often cannot be included in the price when selling homes. Only permanent solar fixtures or portable solar panels bought by the property seller are considered. Large-scale solar installations cost more, and therefore, greatly increase the overall price of the property during resale. Houses with rooftop or backyard solar are valued more than those with temporary, removable solar panels. Complex setups with solar-battery units, inverters and other such equipment add to the resale value as well.
3. Age and Warranty of Solar Panels
The age and warranty period of solar panels are undeniably the biggest factors that help raise resale value. If the solar panels are already a few years old and nearing the end of their warranty, the property value is less. Likewise, if the solar panels are newly mounted with a long warranty period, the property value rises. But be it old or new, with solar installed, your home’s resale value will still be higher than without it.
Raising Your Property Value with Solar
Choosing solar benefits homeowners in the long-term, saving money, conserving energy, and even fetching a higher price when selling out property. The impact of solar panels on home resale value can be far greater than what most people realize. This gives all the more reason to get solar for your home. Though it’s important to note that most solar setups may take around 4-12 years to pay for themselves. So if you’re planning to sell your property, it’s recommended that you do it after waiting a few years.
Looking to get solar? With Solar Brokers USA, avail quick, easy, and affordable solar panel installation for your home and enjoy solar energy without any worries.