Demand for homes with solar rising as statistics show solar panels increase home value
Homeowners are often looking for ways to add value to their home and to see their investment grow. Whether it is a kitchen remodel, changing out old appliances or adding a fresh coat of paint, upgrades usually pay off when it comes time to sell. What if we told you that solar panels could also add value to your home? Would you be more inclined to switch to solar? Statistics show that homes with solar are fetching a higher price tag than similar homes without. People are recognizing that solar panels increase home value and the demand for homes with solar is on the rise.
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Common Misconceptions About Solar Panels
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Before we get into the details, let’s address some common misconceptions about solar that you might encounter. The biggest misconceptions are that it’s expensive, unreliable and requires maintenance. Thanks to technological advancements and an increase in demand, solar is more affordable than ever. According to the Solar Energy Industries Association® (SEIA), the price to install solar has dropped over 70% since 2010.
National residential electricity rates, on the other hand, have gone up by 15% in the last decade. These prices will continue to rise as fossil fuels become scarcer and utility grids continue to age.
Benefits that explain why solar panels increase home value
National residential electricity rates, on the other hand, have gone up by 15% in the last decade. These prices will continue to rise as fossil fuels become scarcer and utility grids continue to age. This increase in legacy electricity is likely a primary driver behind why solar panels increase home value.
As for reliability, solar has shown to be more reliable than fossil fuels. The recent fires in California and extreme storms in Texas exposed the shortfalls of an outdated grid system. Solar and solar storage allows for more energy independence and can protect you from rolling blackouts or other disruptions to the grid.
Solar systems require very little maintenance. Panels are designed to be self-cleaning with rain, which limits the need for regular manual cleaning. During dryer months or an extended period without rain, you may need to hose down your panels or in some cases hire a professional to do a deeper clean.
Solar panels are incredibly durable and can withstand the most extreme weather conditions. Solaria’s PowerXT® solar panels are made with the highest quality materials and set industry standards for reliability and durability. With our industry leading 25-year warranty, you know your investment is safe.
Home Values with Solar Panels
According to a 2019 study by Zillow, solar raises a home’s value by an average of 4.1% across the country. This number varies from place to place, with some metro areas like New York and San Francisco seeing a gain of 5.4% and 4.4%, respectively. In the state of New Jersey, homes with solar are going for a whopping 9.9% more than similar homes without!
As the number of homes with solar in the US continues to grow, the real estate industry will likely come up with a more universal standard for valuing homes with solar.
Another study conducted by the Lawrence Berkeley National Laboratory, a research lab affiliated with the Department of Energy, showed that home buyers are willing to pay an average of $4 per watt of solar installed. So, for a home with a standard 6-kilowatt solar system, the system can add $24,000 to your home’s resale value. As the number of homes with solar in the US continues to grow, the real estate industry will likely come up with a more universal standard for valuing homes with solar.
Homeowner thinking about installing solar?
If you are a homeowner thinking about installing solar or a homebuyer wondering if solar panels increase home value, it is important to talk with your local solar installer and real estate agent. They will be able to provide you with the most current information about solar and home values in your region. To get a better idea of how much a solar system will cost you, check out our blog, How Much Do Solar Panel Cost? And for the most up-to-date list of federal and state solar incentives, check out the Database of State Incentives for Renewables & Efficiency (DSIRE).