Do you know how solar panel installation affects the value of your home? If not, you might want to keep reading!
Many homeowners — even those not currently looking to sell their property — are looking to photovoltaic energy systems as a way to increase both the value and the salability of their homes.
Compelling evidence shows that this may indeed be a very wise decision. Adding a photovoltaic system makes a home more marketable, a good idea regardless of when you plan to sell. And, in most U.S. markets, it also means a big bump in your potential selling price.
Research Says Buyers Pay More for Solar-Powered Homes
The Lawrence Berkeley National Laboratory recently completed a study, in conjunction with the U.S. Department of Energy, to determine how adding a solar panel array affects a home’s selling price.
According to this research, buyers were willing to pay an additional $15,000, on average, for homes with photovoltaic systems than they would for similar homes without PV power.
The Federal National Mortgage Association, or Fannie Mae, recently released a set of guidelines that helps advise appraisers evaluating homes with solar systems. The guidelines state that appraisers must consider a home’s photovoltaic system when determining market value.
This certainly seems obvious, but without this directive, many homes were not being adequately valued.
Solar Homes Sell Faster
Adding a PV solar system to your home will not only help increase its value, but it also may help it sell faster.
According to the Department of Energy Efficiency and Renewable Energy, a division of the U.S. Department of Energy, homes that have photovoltaic systems may sell up to twice as quickly as homes without systems.
Thanks to this influential statistic, more builders are opting to install solar systems as a standard in new home developments. Likewise, homeowners are jumping on the solar bandwagon as well.
Factors that Affect Home Values
While the research is promising, other factors may affect how beneficial a solar panel installation will be in terms of your home’s marketability.
The first factor to consider is your home’s location. Solar energy will be a bigger draw for buyers in active solar markets (the sun-rich Intermountain West, for example) than for those in less-developed markets.
Your home’s existing value also matters to some degree. Overall, larger homes tend to realize a larger increase in property value.
Bigger Is Better
The size of your photovoltaic system also may influence the selling price of your home.
Buyers are often willing to pay more for houses that have larger solar arrays, as the systems will be able to provide a greater percentage of the home’s electricity. Quality is important, too, and some buyers may view older systems as they would older technology — still functional, but less desirable.
In our service area, which includes Utah, Nevada, Wyoming, Colorado and Idaho, today’s solar technology does make a difference to home buyers. This makes alternative energy a win-win for our customers.
Not only will you drastically cut utility costs (not to mention reduce your dependence on the utility company!), you are also very likely to recapture a significant percentage of your solar investment when you sell your home.
Contact Intermountain Wind & Solar today, to learn more about the ways that solar panel installation can benefit you.