Solar Homes and Increased Property Value
Ever wonder if your home’s value would increase if solar panels were installed to generate it’s electricity. According to real estate studies, t he answer is yes. Solar homes have increased value compared to non-solar homes. See the below information by the Department of Energy SunShot program:
“Buying a solar energy system will likely increase your home’s value. A recent study found that solar panels are viewed as upgrades, just like a renovated kitchen or a finished basement, and home buyers across the country have been willing to pay a premium of about $15,000 for a home with an average-sized solar array. Additionally, there is evidence homes with solar panels sell faster than those without. In 2008, California homes with energy efficient features and PV were found to sell faster than homes that consume more energy. Keep in mind, these studies focused on homeowner-owned solar arrays.
When it comes to third-party owned (TPO) systems, data shows that while they add some complexity to the real estate transaction, the overall impacts in terms of sales price, time on market, agreement transfers, and customer satisfaction are mostly neutral. In some cases, TPO systems can even add value.
The PV Value® tool is helpful for both home sellers and homebuyers. It calculates the energy production value for a PV system and is compliant with Uniform Standards of Progressional Appraisal Practice and has been endorsed by the Appraisal Institute for the income approach method. Make sure your appraiser uses this tool to get the most accurate estimate of your PV system’s value.”
In addition, check out this New York Times article that discusses the home value impact. Like the above, the valuation is only increased if the installed solar PV system is owned by the homeowner. Leases and Power Purchase Agreements (PPA’s) by companies like SolarCity and other third-party owned systems do not increase home values.
Contact kW Solar Solutions to find out if your home or business is a good site for a solar installation and start investing in your future and a cleaner environment now!