Do Solar Panels Increase Home Value?
The American home the bedrock of our economy. It is where the majority of Americans invest their money and growth their worth. It is a simple formula of buy with a dream in mind and make it a reality. The more money and effort you put into your home, the more you enjoy it now and the more it will be worth later. While simple improvements like a fresh coat of paint or new cabinets are time tested ways to increase value, solar panels have remained a bit of a mystery. Which begs the question “Do Solar Panels Increase Home Value?” In short, yes, and here’s why.
Efficiency Is Another Word For Money (or) Like Any Other Home Improvement
It transfers the same benefits you see from installing a system in the first place. There is less variable expenses to run the household than there would be without solar panels. Thanks to this investment the next homeowners are not left with the burden of installing the system or paying for the electricity. Because of this lower ownership cost there is less risk from a lender perspective which means lower rates for your would be homebuyer.
What Is That In Dollars? (or) Dollars and Cents (or) How Much?
The exact dollar amount of the increase depends on the size of the system and how much power the solar panels generate. Using the current data the average rate would be around $4 a watt, based on an average system size of 3.6 kilowatts that would put the value near $15,000. Since the cost of an entire system can run around $4 a watt in competitive markets you can recoup your investment right away. This is without factoring in the rebates and tax breaks that can reach as high as 35-40% of the total cost anyway. Do keep in mind these scenarios are only available when you have ownership of the system. Any system leases or power purchase agreements would not be subject to the resale value of the home. Leases need to be transferred over to the new homeowner as well as the PPA.