Owning a home is an exciting time in your life, but also comes with added responsibilities and expenses. If you’re looking to lower your electric bill – or to simply help protect the environment – you may want to consider solar panels and be asking yourself if solar panels increase the selling value.
Adding panels to your home may come with significant upfront costs, but there are plenty of benefits that make solar panels worth it. In addition to reducing greenhouse gas emissions and saving on energy costs, solar panels can raise the selling value of your home and make your home more attractive to future buyers.
What are the Benefits of Solar Panels?
More than 50 percent of real estate professionals say their house-hunting clients are interested in sustainability, according to the National Association of Realtors (NAR) 2022 REALTORS and Sustainability Report. Solar panels are a great resource when it comes to offsetting energy costs, reducing your home’s environmental impact, and contributing to energy independence.
Not only do solar panels benefit the environment, but a homeowner’s wallet as well. Annual energy bills can be costly. Installing panels can help reduce or eliminate these costs as soon as they’re installed. The Solar Investment Tax Credit (ITC) is a federal tax credit for solar panels placed on residential and commercial properties, offering individuals a 30 percent tax credit for solar systems on residential property that can be applied to a homeowner’s income taxes.
When it comes to listing your home, this can be a great selling point for buyers.
How Much Will Solar Panels Increase the Value of Your Home?
Just like a renovated kitchen or basement, solar panels are viewed as an upgrade, ultimately increasing the value of your home.
A study by Lawrence Berkeley National Laboratory showed on average solar increased the value of a home by around $15,000, or by 4.1% across the US.
For example, a home valued at $500,000 could increase its value by $20,500. Installing solar panels gets costly, so make sure you research the cost of solar panels in Seattle to insure you’ll benefit from this investment.
If buyers don’t understand how solar panels work or how they can benefit from them, they may be less willing to invest in a system. However, it seems that homeowners are pretty open to the idea of energy-efficient features.
According to CNBC, 80 percent of buyers prioritize energy-efficient features when house hunting.
What Do Buyers Look for in Solar Panel Homes?
When purchasing a home, buyers take into account monthly electric bills. When they’re assessing the long-term financial value of the home, people are increasingly open to the perks of a solar home. As a homeowner, it’s important to understand what a potential buyer may want in a home and what repairs should be made.
Questions buyers typically ask include:
Who Owns The Solar Panels? Around 25 percent of homes have third-party-owned panels, meaning the homeowner pays a company to use them. Homebuyers should understand if the seller outright owns the panels, or if the buyer is responsible for taking over the lease
Is the Roof in Good Condition? Just like with any home you purchase, you want to know the condition of the roof. If the roof is in poor condition with panels, the panels have to be removed before the roof can be repaired, then reinstalled
Who Installed the Panels? It’s important to know if a licensed professional installed the panels. If the panels were self-installed, they may not qualify for warranty protection
With benefits such as:
Saving on energy bills
Protecting the environment
Homeowners can expect solar panels to increase the selling value of their homes. Whether you’re looking to increase the value of your home for yourself or for buyers, a panel system upgrade could help you out. Be sure to do your research to make sure you understand the pros and cons of panel installation.