1 min read
Solar Technology Increases Home Values
When purchasing a new solar installation most consumers look at the payoff of the system. The payoff refers to the amount of time it takes to recoup the money put out for a new solar installation through energy savings. Another critical element of the solar payoff equation that is often overlooked is how that solar technology increases home value when the home is sold.
According to the U.S. Department of Housing Development, the Department of Energy and the Appraisal Institute, adding solar electric power adds substantially to a homes value. The payoff figure quoted by each is an average of $20 for every $1 reduction annually in utility bills, which is usually higher than the cost of the solar installation. Other studies have come to similar conclusions. The National Bureau of Economic Research (NBER) recently found that homes with photovoltaic solar panels increased home value an average of between 3 and 4 percent.
The results of other research were backed up by a U.S. Department of Energy’s (DOE) Berkeley National Lab study in 2011. The study concluded that the average sales price premiums of a home with solar PV system to be comparable with the average investment that homeowners have made to install PV systems. They will release a more extensive study of the effect of solar power on home values in 2014.
Additionally, having a solar system helps speed up the sale of a home. The National Renewable Energy Laboratory (NREL) found that homes with solar sold 20% faster than homes without solar.
Having solar makes sense on many levels. Cost is usually a primary consideration. Taking the resale value into account, the payout of a new solar PV system often works out to better than a 2 to 1 payoff to investment ratio. And whenever the home is put up for sale, it is more likely to sell faster. In Florida, where the sun is plentiful, solar technology increases home value and is a great investment!
Interested to learn how solar can work for you? Contact us. 