There are several major areas of value that solar panels and their related systems bring to property owners, from replacement of reliance on the traditional power grid to major energy savings. In addition, did you know that installing solar panels will often have a fantastic impact on your overall property value?
At Intermountain Wind & Solar, we're proud to offer a huge range of both residential and commercial solar power services, helping many clients add major value to their properties while also receiving several other benefits. What are some of the specific ways that adding solar panels to a home will help increase its value, often by far more than the amount you paid for the system? Here's a primer on several ways this happens.
It's a simple reality in today's modern day and age: A huge percentage of homebuyers are looking for features that signal strong energy efficiency, and solar panels are a powerful way to show off your home's environmental friendliness. Homes with solar panels may be in a particularly great position when it comes to making a sale, as the growing number of eco-friendly homebuyers means even non-environmentalists feel comfortable knowing they're bringing a house that knows how to look after itself into their lives.
And in addition to sustainability themes that many buyers care about, they're also interested in energy efficiency because it saves them money and helps them manage their household budgeting. That's another reason why adding solar panels can add major value to your home: If you've already invested in them, you're out of the house and able to sell it with a lower electric bill and a great return on investment. The ability to guarantee both of these things will make many buyers willing to pay more for your home.
More and more parts of the country have begun to embrace solar power as a primary or supplemental source of energy, and this is reflected in the real estate market. Homes with solar panels installed are considered more valuable in these areas, as buyers know they'll have a lower cost of living and reliance on the traditional grid.
In fact, there are even certain specific neighborhoods, homeowners' associations or other property-related entities that have incentives in place to reward residents for having solar panels installed. These can range from waived or discounted HOA fees to priority placement on the list for when it comes time to sell.
Another benefit of solar panels that impacts property value is their innate durability. Solar panels have a lifespan of 25-40 years, meaning they'll be providing your home with environmental benefits and value appreciation for decades to come. Compare that to other home features like carpeting, paint or appliances, which may only last 10 years or so before needing replacement or renovation.
When it comes time to sell your home, buyers will be happy to know that they're not inheriting any major liabilities in terms of replacements that need to be made in the near future. In fact, solar panels can actually increase the value of your home even after you've moved out, as their long lifespan means they can continue to provide savings and environmental benefits to a new owner.
In today's ultra-competitive property market, many homes and other property types sell fast -- and a quick sale is often a goal if you've decided to list your property on the market. And simply put, several areas of research have shown that properties with solar panels already installed sell faster than those without.
One study by the National Renewable Energy Laboratory found that homes with solar panels installed were on the market for an average of two days less than those without, and that they fetched a premium of almost $5,000 more. And in some cases, this is due to solar panels' ability to save buyers money on their energy bills, meaning they're able to put more of their money into other expenditures and still come out ahead.
Many owners buy investment property for the income that it brings them – and solar panels can be an excellent way to enhance this return on investment. Not only do they keep operating costs lower, but they often increase the value of the property as well.
This is especially true in areas that are seeing a growth in solar installations and eco-friendly living. In these regions, a home with solar panels can be expected to sell for significantly more than one without – sometimes as much as 30%.
Moving specifically to the realm of residential property values, all such sales in this area will involve an appraisal, or an estimate of a home's worth. In recent years, many appraisers have begun to factor in the value of solar panels when they arrive at their final appraisal amounts – and this can be either a good thing or a bad thing, depending on how much money you stand to save by having them installed.
Appraisers are typically concerned about three things when it comes to solar panels: the initial installation cost, the savings on monthly energy bills and how long the panels are expected to last. If all three of these factors are positive, then the appraiser is likely to raise the value of your home accordingly.
Overall, there are many reasons why installing solar panels can positively impact the value of your home or other property. To learn more about this or find out about any of our solar panel installation services, speak to the team at Intermountain Wind & Solar today.
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