Do Solar Panels Increase Home Value?

There are several questions that often come up when clients are considering installing solar panels on their homes. One of the most common: Do solar panels increase home value?

At Intermountain Wind & Solar, we offer a comprehensive range of solar panel installation and other solar power services to clients around Salt Lake City, Utah and Boise, Idaho, including both commercial and residential solar solutions. We're here to tell you that yes, solar panels are often known for increasing home value - sometimes in major ways, too. Here are some of the ways this can happen, plus which additional factors tend to play into precisely how much value your solar panels add to your property.

Ways Solar Panels Increase Home Value

There are several specific ways that solar panels can directly or indirectly boost your property value:

• Reduced energy costs: The main reason many people opt to install solar panels is that they save significant amounts of money on energy costs. In some cases, these savings can even cover the entire cost of a home's solar panel installation over time, freeing you from energy bills entirely. This typically translates into increased property value and appeal for potential buyers.
• Increased resale value: Solar panels are considered an attractive feature for many home buyers. As such, homes with solar panels tend to sell faster and at a higher price compared to similar non-solar homes. This can be especially beneficial in competitive real estate markets where having solar panels can give your home an edge over others.
• Tax incentives: Depending on your location, you may be eligible for tax credits or rebates for installing solar panels on your home. This can further add to the financial benefits of having solar panels and make your property more appealing to potential buyers.
• Environmental impact: More and more people are becoming environmentally conscious, and having solar panels on your home is seen as a positive step towards sustainability. This can make your property more attractive to eco-conscious buyers and potentially increase its value.

Factors That Affect How Much Value Solar Panels Add to Your Home

While solar panels can undoubtedly increase home value, the exact amount they add can vary depending on several factors, including:

• Location: The amount of sunlight your area receives and any local incentives or regulations for solar energy can affect the value added by solar panels. Panels that are installed in areas with high electricity rates or strong solar policies tend to add more value.
• Size and quality of the system: The size and efficiency of your solar panel system can play a role in determining its impact on your home's value. Larger, higher-quality systems are generally more attractive to buyers compared to smaller or less efficient ones.
• Age of the panels: As with any technology, solar panels can become outdated over time. If your panels are older and less efficient compared to newer models, they may not add as much value to your home.
• Aesthetics: The appearance of solar panels can also affect their perceived value. Homeowners who opt for sleeker, more aesthetically pleasing panel designs may see a greater increase in property value compared to those with less attractive panels.
• Local electricity rates: The cost of electricity in your area can also impact how much value solar panels add to your home. Higher electricity rates mean more potential savings and, therefore, a higher increase in property value.
• Incentives: As we noted earlier, tax incentives or rebates can further increase the value of solar panels for homeowners. These incentives vary widely by location and can greatly influence the return on investment for installing solar panels.

Solar Panels and Property Tax

Another important consideration for homeowners considering installing solar panels is the potential impact on property taxes. While solar panels can increase the value of your home, they may also lead to an increase in your property taxes.

However, many states offer exemptions or credits to offset this additional cost, making solar panels even more financially beneficial for homeowners. In fact, 36 states currently have such laws.

Battery Considerations

Yet another key aspect that can affect the value added by solar panels is whether or not your system includes a battery storage option. Batteries allow homeowners to store excess energy generated by their solar panels, providing backup power during outages and allowing them to further reduce their reliance on the grid.

This added convenience and energy independence can make homes with batteries even more attractive to buyers and potentially increase their value significantly. However, the cost of installing a battery system should also be taken into account when considering the overall financial impact of solar panels on property value.

Solar panels can indeed increase home value in several ways, including reduced energy costs, increased resale value, and environmental benefits. The exact amount they add to your property's value may vary depending on factors such as location, system size and efficiency, aesthetics, and local electricity rates. Additionally, considering the potential impact on property taxes and the added value of a battery storage system can help homeowners make informed decisions about installing solar panels on their homes.

At Intermountain Wind & Solar, we understand the importance of maximizing the benefits of solar energy for homeowners. Contact us to learn more about how our high-quality solar panel systems can increase your home's value and help you achieve energy independence, whether you're in SLC, Utah or Boise, Idaho (or nearby areas).