Adding solar panels to a home helps save money on your energy bill or electricity bill and has the potential to increase the overall home value compared to homes without solar.
Fifty years ago, solar panels were extremely expensive and were mainly used to power multi-million dollar space probes. Over time, solar panels became cheaper, and people are now more conscious about coal and other fossil fuels making renewable solar energy a more attractive option.
A typical solar panel “combines dozens of solar cells in an electrical circuit to produce a usable voltage that can provide power right away or be stored in batteries for later use.” Some can even feed power directly into an electricity grid.
How Does Solar Increase a Home’s Value?
There are many factors that go into how cost-effective a new solar installation will be. Geographical location, whether or not you have a southern-facing roof, electricity costs in your area, etc. Installing solar panels will certainly increase your home’s value, but will it be cost effective?
The first thing to consider is your current electricity usage. You can find this information out from your energy provider. Knowing what your peak electricity usage is will give you a starting point for how many solar panels you will need to install.
How Much Does Solar Add to a Home’s Value?
According to Zillow, homes with solar energy systems sell for 4.1 percent more on average than comparable homes without solar power. Translation – and an additional $9,274 for a median-valued home.
The value of solar panels did vary by location. Homeowners who gain the most value from solar power installation include those in New York (5.4 percent), San Francisco (4.4 percent), and Orlando (4.6 percent). Even though the return on investment was different depending on the market, overall no metropolitan area saw home values drop due to solar panels.
A big reason homes with solar energy systems sell for more is because they provide substantial future energy costs. If a homeowner knows they consume a lot of power, future savings are worth spending more money upfront. Personal preference is also another crucial factor that plays a role with 80 percent of home buyers saying energy-efficient features are important.
Americans are investing in solar power. In 2018, enough systems were installed to power 12.3 million homes.
When considering solar panels consider the following factors:
- How much does energy cost where you live?
- Does the state offer home solar panel financial incentives?
- Is your roof optimal for solar panels?
And of course, check for local regulations regarding solar panels.