If you have been considering installing solar panels in your home, you would be delighted to know that by installing solar panels, you are effectively boosting the value of your home by thousands. Research and data from real estate marketplaces, the National Renewable Energy Laboratory (NREL), and other studies all support the finding. Read on to find out more about how solar panels can boost your home’s value as well as other factors that affect the valuation of solar homes.
Benefits of Solar Homes
To understand why solar homes are valued higher, you first have to understand the benefits that come with living in a solar home. One of the biggest reasons why people want to adopt solar power is for environmentally friendly reasons. After all, solar power does not use fossil fuels like coal and natural gas and does not emit any greenhouse gases. As such, using solar power is a great way of reducing carbon footprint and being friendly to mother nature.
Apart from environmentally-friendly reasons, there is another big factor that attracts even people that have little to no disregard for the environment, and that is the reduction in bills paid. By using solar energy, you avoid the price spikes of volatile electricity markets. In addition, the costs of solar power have been steadily declining over the years, making solar power extremely effective.
How Do Solar Panels Increase Your Home Value?
According to research conducted by NREL, every dollar that is saved through solar energy increases the value of a home by about $20, giving you a 20 to 1 return on investment. In addition, NREL also found that homes with solar panels on average sell about 20% faster as compared to homes without. Less time on the market translates to saving any mortgage costs that you have on the house.
In other news, information from Zillow, an American real estate marketplace, revealed that homes with solar panels installed on average sell approximately 4$ higher than those without. This information is supported by the huge demand for solar homes. After all, CNBC reported that approximately 80% of property buyers look for energy-efficient upgrades such as solar panels when looking for homes.
In comparison, a study done by the Lawrence Berkeley National Laboratory concluded with a simple formula that says for every kilowatt (kW) of solar installed, resale value increases by $5000. This finding is particularly interesting, given that the average cost of installing one kW of solar is only $3500.
If you have been wanting to install or want to find out more information about installing solar panels, then we highly recommend that you check out the Solar Energy Solutions of America (SES). Here at SES, we are committed to delivering only long-lasting quality solar solutions that last decades to homeowners. Get a free quote from us today!