Go solar increase home value at resale
Go solar increase home value and your profits when you sell your home is the conclusion of an extensive study published in 2015. A multi-institutional research team of scientists led by the U.S. Department of Energy’s Lawrence Berkeley Laboratory found that home buyers will consistently pay more for homes with solar photovoltaic (PV) energy systems —averaging about $4 per watt of PV installed—across various states and types of homes. This translates to an increased resale value of about $24,000 for a home with a typical PV system.
The researchers worked with a variety of organizations and appraisers to analyze the sale of almost 22,000 homes, almost 4,000 of which contained a PV system, across eight states over 15 years (1999 to 2013). Based on this extensive research – the largest study to date – it is clear that a key benefit of “going solar” is the increase in the value of your home when it is time to sell.
Go solar increase home value and appeal
The Lab’s 2015 Selling Into the Sun report analyzed the sales of these solar-equipped homes when compared to similar homes that sold without solar systems in place. The key finding:go solar increase home value. On average, home buyers were “consistently willing to pay PV home premiums” of approximately $4 per watt of installed solar capacity. In real numbers, this means that a standard 6-kilowatt solar PV system could add $24,000 to the resale value of a home. Download the report, “Selling into the Sun: Price Premium Analysis of a Multi-State Dataset of PV Homes”, as well as a fact sheets, and a summary here in order to learn more about the study’s design and findings.
Clearly, installing solar panels on your home can increase its value, but only if you own the system. If you install a solar panel system in your home through a lease or PPA arrangement, you don’t realize the resale benefits because you are essentially “renting” your system from its third-party owner. In a typical solar power purchase agreement (PPA), a developer has had a solar system designed, permitted, financed and installed on a customer’s property at little to no cost to the owner. Since the owner doesn’t really own the system, it cannot be included in assessments of your home’s value.
But for property owners who work with a company like Venture Home Solar to install their own solar PV systems, this is great news. Property owners not only recoup the initial cost of their systems when they sell, but they also receive an increase in profit on their original investment.
The Berkeley Lab research was supported by funding from the U.S. Department of Energy SunShot Initiative. The SunShot Initiative is a collaborative national effort that aggressively drives innovation to make solar energy fully cost-competitive with traditional energy sources before the end of the decade. Through SunShot, DOE supports efforts by private companies, universities, and national laboratories to drive down the cost of solar electricity and expand solar adoption. And, there are additional research studies published on the Berkeley Lab’s website that will prove helpful to homeowners seeking to learn more about solar energy and its benefits.
And, remember, in addition, installing solar panels not only helps you fetch a higher asking price, but it can also help your home sell 20% faster as properties without solar installations. For homeowners who want to reduce wait times, this can be a great advantage, especially if you live where the home market is sluggish.
Go solar increase home value by maximizing your investment
Exactly how much your solar installation will add to the resale value of your home depends on a number of factors, including:
- The location of your home. Installations in active solar markets like New York typically yield higher returns than comparable installations in less developed markets.
- The size of your installation. Property value increases are directly proportional to the number (and quality) of solar PV panels installed.
- The value of your home. Larger houses usually receive higher boosts in overall property value, but this increase often represents a smaller percentage of the total home value.
So what kind and size of PV installation should you install on your home? Venture Home Solar is a local company ready to help you explore your solar options to increase your home’s resale value – not to mention the many other benefits of “going solar.” Based in Brooklyn, we only serve NYC and the surrounding areas. We’re the experts right here at home who get the job done – on time and on budget.
If you are looking to go solar with your home, learn more by contacting one of our solar experts at Venture Home Solar. We can provide you with our experienced analysis of what you need as a home owner to “go solar.” Call us today at 800-203-4158 and let’s get started!