Do Solar Panels Increase the Value of a Home?
May. 15, 2020
Installing solar panels in your home is a serious investment in reducing your energy use, costs, and carbon footprint, which is why so many homeowners want to go solar these days. In addition to all of these benefits, how much do solar panels add to the value of a house? Boston Solar is here to highlight what some researchers and real estate professionals say, so you can better plan for a future of using your own renewable energy in your home.
Real Estate and Solar: What Is Happening Now
According to research from Zillow, homes across America that included outright-purchased solar PV Systems (not solar leases) sold for an average of 4.1% higher than comparable homes that did not include solar. This pencils out to an average of $9,274 in home value increase with solar.
The Department of Energy did their own independent research on the topic, and found the homeowners were willing to pay up to $15,000 more for a home with solar — and there was evidence that these homes sold faster than homes without solar.
More locally, Northeast-based Redfin Realty is reporting that homes in the Northeast that include solar are showing staggeringly high increases, like in Worcester, where the median sale price for solar listings was $42,000 higher than the standard median sale price, and in Boston, where solar homes were averaging a median sale boost of $179,000.
What about how old your solar PV system is when selling your home? Research from Ohio State University, concludes that homeowners would see a decent return on investment whether owning their system for years before selling or selling after just a few years. In the first scenario of long-term ownership, homeowners would likely have a reduced premium but would have benefited from years of reduced or zero electricity bills. While the homeowners with short-term solar ownership would have a higher premium when looking to sell since the system would be relatively new.
So, while the exact increase in value that solar will bring to your home will still depend on local real estate market factors, the age of your system, and a homebuyer that values the benefits that a home with solar brings, we do know a few things:
Prospective homebuyers see the value in solar
Solar will add some resale value to your home
Solar will help your home sell faster
The Future of Green Homebuying
It is not just solar that is seeing increased premiums for sellers. According to recent studies by the Appraisal Institute, green and energy efficient home improvements like energy efficient appliances and extra insulation “have the potential to pay dividends to buyers and sellers.” One study showed a 2.19% increase in a sale price premium for green features while Pearl Certified homes could see a sale price premium of up to 5% higher.
Not only are homeowners and homebuyers seeing the value in a green, more efficient home, but local and state governments are also currently incentivizing the move toward renewable energy and energy efficiency while reducing the strain on their electrical infrastructure. With federal and state solar incentives and energy efficient rebates from the Mass Save program, investing in green home upgrades is more affordable and helps to reduce utility costs.
Why Invest in Solar Now?
Even if you don’t plan to sell your home in the near future, investing in solar now will pay off sooner than you might think. By utilizing solar incentives like the Federal Solar Tax Credit, Massachusetts income tax breaks for solar installation, payments from the SMART program that your solar panels can generate on a monthly basis, and the massive savings on your energy costs when combined with net metering, the benefits and payback period for installing solar panels has shrunk significantly in recent years.
Solar is an investment that provides benefits right from the get-go, while you live in your home, all the way up until you sell it.
A Massachusetts Based Solar Installer for Massachusetts Homes
Planning for a future of efficiency and energy savings should be trusted to the local professionals. As the number one Massachusetts based solar installer, Boston Solar knows what it takes to design and install a system of solar PV panels on your home that will provide lasting renewable energy, and give you the maximum increase in resale value when it comes time to put your home on the market. If you are curious about what installing solar panels would look like on your roof, on your taxes, and on your energy bills, get a free solar quote from Boston Solar today.
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Wondering if solar panels increase a home’s value in Massachusetts? Ask Boston Solar about your solar options today! Call 617-858-1645 or get in touch here.