The Impact of Solar Panels on Home Resale Value
With the cost of energy rising and the cost of solar panels dropping significantly, the idea of becoming energy independent and reducing their carbon footprint is something that many homeowners have a desire to achieve.
Home resale value
While going solar is now more attainable than ever before, many homeowners are asking does installing solar panels increase the value of my home? According to the 2015 Selling into the Sun survey by the Berkeley Laboratory and U.S. Department of Energy suggests that they do.
The survey involved seven appraisers comparing 2012 resale transactions of more than 200 home sales in California, Florida, Maryland, North Carolina, Oregon and Pennsylvania. It was concluded that solar panels consistently added an average $3.75 per watt net value to home sales when compared to those without solar.
In other words, a 5Kw photovoltaic (PV) system added about $18,750, on average, to the resale value of the home. A home with solar panels may also spend less time on the market when its time to sell. This is a net positive impact after taking into account the installation cost and energy income generated using solar energy.
Energy cost savings
In addition to an increase in resale value, homeowners will also benefit from reduced energy costs. Considering the average home consumes an average of 10,000 KwH of electricity annually at an average cost of $0.1322/KwH, based on the June 2017 average residential electric rate data from the U.S. Energy Information Administration, homeowners can save up to $1,322 per year or $26,440 over a 20-year period just on electricity costs. It’s like putting money in the bank and the average 2.2 percent rise in energy costs each year is like getting compounded interest over the life a PV system.
Also, homes with energy efficient features are appealing to home buyers. More than one-third of home buyers surveyed by the National Associational of Realtors® in the 2015 Home Buyer and Seller Generational Trends Report indicated that a home’s heating and cooling costs were most important to them.
Carbon footprint reduction
Since its initial installation more than forty years ago, solar energy has had a positive impact on the environment. Solar PV panels produce zero emissions and the reduced reliance of fuel powered energy plants has eliminated over 37 million metric tons of carbon emissions from the atmosphere equivalent to the planting of nearly one billion trees, according to the Solar Energy Industries Association (SEIA).
Solar energy credit
Federal tax credits make an investment in solar even more attractive. But homeowners need to act quickly to get the maximum credit before it expires in 2021. The Consolidated Appropriations Act of 2015 allows taxpayers to claim 30% of the cost of qualified solar PV technologies as a tax credit for systems installed on or before 12/31/2019. The Residential Renewable Energy Tax Credit reduces in each subsequent year with a maximum 22% credit for systems installed in 2021.
Ready to go solar? Contact us to schedule a free home estimate today!