Solar Panels and Your Home's Resale Value
Selling your home doesn’t mean you’re done profiting from your solar panels.
If you’re looking to reduce your monthly utility bills, solar panels for your home are a great investment. But the financial incentives don’t stop there. Adding a solar panel array to your rooftop is a great way to increase your home’s resale value. According to the National Renewable Energy Laboratory, homes with solar panels sell 20 percent faster and for 17 percent more.
Why would a solar panel array be appealing to homebuyers? Buying a home with solar panels translates into lower electricity costs. Solar panels will increase a home’s attractiveness on the market, just like a house that is in a great school district or that has lower property taxes. The U.S. Department of Energy’s Lawrence Berkeley National Laboratory found that the sales of the average home increased $17,000 with solar panels.
Financial incentives come in addition to the environmental incentives that come from adding solar panels to your home. Learn more about these incentives here.
Return on Your Solar Panel Investment
The average cost for a 6 kW solar array is about $16,800, but may cost as low as $10,600 in some states. Even if the array you purchase for your home is on the higher end of the price spectrum, homeowners can get most -- or all -- of their money back when they sell their home.
None of that even factors in the month-to-month savings you’ll get on your electric. A study by the National Bureau of Economic Research found that in California, PV systems added a $20,194 premium to the sales price of homes. Though solar can be expensive to install, the return on investment is approximately 97 percent.
Monthly savings with solar panels vary based on where you live and what your usage habits look like. Check out Google’s Project Sunroof to get an estimate of how much you could save on your home’s monthly utility bills.
More Research on Solar Panel Resale Value
Like all things associated with energy, how much your home’s resale value increases with solar panels will vary by location. Regardless of where you are, however, solar panels are a great way to add to your property value.
- As of 2009, the $2,000 cap on the Federal Solar Tax Credit is lifted, meaning you will get 30% of the total systems costs back (equipment and installation).
- A study from the National Bureau of Economic Research found that solar panels increased home value at 3-4% and that “similar to other home investments such as a new kitchen, solar installation bundles both investment value and consumption value.”
In addition to the environmental incentives, solar panel arrays for homeowners offer exceptional financial incentives as well.Learn about our solar panel financing options