The presence of several advantages with a long-term perspective is the main reason why the demand for solar systems is constantly increasing. Indicators are growing at a rapid pace, which ensures a significant increase in total capacity. According to SEIA data, enough systems have already been installed in the country to supply electricity to about 22 million buildings.
In the future, these indicators will be higher, because more and more people see the real benefits of installations and turn to representatives of solar companies for advice. Importantly, the structures not only provide significant financial savings on bills but also affect the value of the property. We offer to find out if solar increases home value and how it changes.
Do Solar Panels Increase Home Value?
After deciding to sell the house, each owner faces an important task related to determining the approximate price. They are interested in how much solar increases home value. It can be influenced by many different factors. It could be the location and infrastructure in that area. After all, it depends on the travel time to the desired places, the availability of shops and other important facilities, as well as the proximity of places for entertainment.
In addition, the condition of the building and its size can affect the value of the real estate. These indicators directly affect the comfort of living. In recent decades, another important criterion has been added to this list - the presence of solar systems. If the property is equipped with these structures, its value automatically increases.
This situation is because buyers receive several significant advantages of a financial and environmental nature. In addition, new owners can count on providing stable electricity even in the case of failures or emergencies in the general power grid.
Thanks to solar panels, home value increases also because there is a possibility of avoiding growth in electricity costs in the future. In conditions of high demand and gradual depletion of traditional sources, utility providers are constantly changing tariffs in an upward direction. This contributes to the potential increase in costs in the following years. Solar home technologies are a great solution to bypass these risks. After all, they use an inexhaustible source, which is also free.
What Price Increases Can Owners of Solar Systems Expect?
Saving significant amounts of money on energy bills is a crucial financial benefit that must be considered when selling a home with solar systems. However, not all owners know how much real estate value should increase. One of the main factors to consider in this case is the long-term perspective.
This means that the new owner receives not a one-time financial benefit, but sustainable savings throughout the entire period of operation of the solar systems. Solar companies indicate that this period is at least 20-25 years. For this period, most of them provide a guarantee, which is also a bonus for the buyer.
Many experts agree that the value increases by an average of $20 for every dollar saved on bills. For example, the value of a property can increase by $8,000 if solar systems save about $400 in one year.
Modern buyers are ready for such increases because most of them support the trend of greenhouses and sustainable ecological development. The amounts of such increases are different in various US states. For example, residents of New York are ready to buy houses with solar panels, the cost of which is 5.4% more expensive. In general, Americans are positive about price increases of 15,000 dollars on average.
What Factors Can Affect the Added Value of a Property With Solar Systems?
Average indicators of an increase in the price of buildings can vary depending on several factors. Let's consider the main ones.
Condition and Age of Solar Panels
It is quite logical that the price of real estate will increase to the maximum value if the solar systems are in excellent condition. These are completely new designs or those that have been operated for only 1-2 years. In the case of outdated solar systems that have been in operation for at least 10-15 years, the added value will be much lower.
In any case, the condition and performance indicators are important. That is why, before selling, it is worth inspecting the structures and, if necessary, carrying out updates or maintenance. In addition, you can check performance indicators by running diagnostics. The results will also be a strong proof of excellent work and an answer to the question: "Do solar panels add V?".
Another important criterion is the availability of the necessary documentation. A complete package, which includes instructions, specifications, guarantees, and other papers, creates more trust and contributes to increasing the added value. This is not surprising, because the buyer receives detailed information about the systems, their warranty coverage, the supplier, and possible interventions in the functioning of the system.
Type of Solar Systems Ownership
Modern solar companies offer several options for using solar energy. This may not necessarily be the full ownership that is acquired after purchasing the structures for equity. You can also get the benefits of using solar energy by renting installations or purchasing solar electricity.
If the owner of the house has purchased the structures and has full ownership, then the added value can increase to a maximum value. This is due to the simple transfer of the real estate together with the solar panels to the possession of the buyer. In the case of renting installations and purchasing solar electricity, the situation is different. The first option involves keeping ownership of the panels directly with the solar company.
In this case, the buyer may have several ways of obtaining installations together with real estate. He can pay off the balance of the previous owner's lease, and start opening his contract. This can be a large initial investment for the buyer, so the added value of the home is reduced.
In addition, the potential owner can assume all obligations for the remaining lease and continue to pay the installments. However, in this case, companies want to make sure that the new owner will be able to fulfill the financial obligations under the contract. This takes a certain amount of time, which can delay the process of purchasing a home.
Features of the Local Solar Market
The added value of a property with solar panels also depends on state policies. In some of them, local authorities offer financial incentives and various benefits in the case of the installation of structures. However, there are states where solar energy is given much less attention. If the property is located in this area, the added value will be low.
In solar-friendly states, the opposite is true. The market value of a house with solar panels will be quite high. Arizona, California, New York, Texas, Nevada, Florida, and Virginia currently have such conditions.
Solar systems are a cost-effective solution that provides not only environmental advantages but also significant financial benefits. In particular, the presence of structures contributes to a significant increase in the value of real estate at the time of sale. On average, owners can expect a price increase of about 4-5%, which is equivalent to 15-20 thousand dollars.
However, these indicators may vary. The added value of a property with solar panels depends on the location of the home, the age and condition of the structures, the solar policy in a particular state, and the type of ownership of the solar systems.