How will Solar affect the property value?
A lot of individuals who are looking into going solar wonder how their investment will affect the property value of the house or space where they plan on installing the panels. The good news is that adding a solar panel system will increase the value of your home no matter what!
An in-depth study was done by the Lawrence Berkeley National Laboratory (LBNL) which was held to determine how much a solar energy system adds to a home’s value across 18 different states.
The actual amount that it increases depends on a few factors but the general rule is that every single dollar you save in reducing your energy bill leads to 20 dollars added to your home value. This adds up pretty fast and you can see your property value rise immediately. The other factors that affect the property value increase are the location of your home, the size of the installation and your original value of the home.
Unfortunately, solar panels are more effective in some parts of the country versus others. As a result, there are more and less developed solar markets depending on the city. If the home or space that you are adding panel system to is located in an area with higher developed markets there will be much more of an increase in the property value (I’m looking at you California). In a higher demand market, a 3 to 5 kilowatt system can add an average of 18 to 30 thousand dollars to the property value!
Next, the amount of panels you add is important. The more panels you install on your home the greater amount of energy you will produce, and thus the more you can save. Having more panels will increase the property value of your home as the size increases.
Lastly, the larger a house is it will receive a higher boost to property value. Though, because larger spaces have a larger property value before solar, the installation of the panel system leads to a solar representing a smaller percentage of the solar value. You can also read a more in-depth article by Aurora Solar.
The sunshine and temperate weather in California make it one of the best locations to power your home through solar. The savings of going solar is enough to make going solar worthwhile but when paired with the sheer value of the property increase it’s a no-brainer.
