Part of being a savvy homeowner is taking home improvements into consideration, especially those with the power to increase your home value. One approach quickly gaining traction is to install residential solar panels. Although the upfront costs can be hefty, the benefits of these innovative sources of alternative energy typically go beyond what you might imagine. Below is a brief look into the ways solar panels can add to your home’s value as well as a few other factors that make them a sound investment.
Ways Solar Panels Can Increase Home Value
Much like a new roof or a kitchen upgrade, the installation of solar panels has been shown to increase property value. How so? It’s all directly tied to the potential long-term savings on the home’s electrical bill. According to the National Renewable Energy Laboratory, home value increases due to solar panels can translate to $20 for every $1 reduction in yearly utility bills. Essentially, this means that when a homeowner is able to save $500 a year from the energy produced by the solar energy system, it could add a value of $10,000.
These energy savings can then be passed on to new owners and equate to bigger profits for you when it’s time to sell. In fact, the largest study of solar homes to date determined a majority of buyers were willing to pay more for a home with solar panels than a comparable home without them. How much more? The study from the U.S. Department of Energy’s Lawrence Berkeley National Laboratory reported an average of $15,000 more.
Government agencies aren’t the only ones taking note of the uptick in prices. The online real estate marketplace company Zillow reports that homes with solar panels sell for around 4% higher on average. What’s more, these homes not only sell for more, but the demand for them is also at a high. A senior economist from Zillow reported to CNBC that 80% of buyers hunting for houses on the site look for solar panels and other energy efficiency upgrades. Plus, trends show they sell faster than houses lacking such features.
What has elevated this demand? While the allure definitely involves a desire for “green living,” solar panels also draw in those looking for greater control on energy costs to boost savings. Of course, while demand is growing across the country, sale price and the exact value that solar panels can add to a home depend on the local market. However, the fact remains that wherever you live, installing a solar energy system provides a competitive edge when selling.
On top of these selling factors, there are many other reasons why solar panels are a good option. There is, naturally, the environmental impact, since a household’s carbon footprint can be reduced through the use of solar power. When combined with other home efficiency upgrades, this reduction in carbon can be magnified, along with the potential monthly savings for the homeowner. Such upgrades might include LED lighting throughout the house and ENERGY STAR-certified appliances in the kitchen and laundry room. Lastly, government-run tax incentives are available to help subsidize the installation and work to recoup the costs in less time than you might expect.
Making The Sound Investment of Solar Energy Yourself
Although installation may seem costly at first, homeowners across the country have quickly realized the benefits of this investment. From the lower monthly electricity bills and tax incentives for new installation to the substantial return on investment during the selling process, the rewards of this smart, sustainable energy solution go beyond expectation.
It’s not every day you find a home improvement project that boasts so many financial paybacks. Now, you too can benefit with help from the right solar panel suppliers. Use the power of the sun to your advantage and boost your home’s value today!