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How do Solar Panels Affect your Home's Value?

By
Real Estate Agent with Remax First Realty II 0790808

You know that dependency on fossil fuels is a financial and environmental mistake. You want to save some a little money and help to save the environment at the same time. Solar panels is an easy way to do both of those things.

 

Cost: Solar panels cost, on average, $36,000 to install but Federal tax credits make the actual cost to homeowners closer to $21,000. The average homeowner will save about $200 per month or $2400 per year by switching to solar panels.

But how do solar panels affect the way buyers see your home? Is your home worth more or less after you install solar panels?

Comparative Pricing: Homes with solar panels are likely to be valued 3-4%  higher than similar homes in the same neighborhood without solar panels. For every $1 saved per year in energy costs, the value added is between $4 and $25, depending on local factors.

In a home that saves $200 per month because of solar panels, the home will be valued between $9,600 and $60,000 more than a similar home without solar panels. 

Another method of comparison is the estimate the each kilowatt of solar power installed results in a $5,911 increase in value. Homes typically have up to 5 kilowatts of solar power.

Time on Market: Homes with solar panels will sell faster than similar homes in the same neighborhood unless the solar panels reduce curb appeal. Buyers understand the appeal of saving money on their energy costs and are more likely to choose an energy efficient home over a more costly option.

Curb Appeal:

Buyers don't want to see solar panels. Solar panels on the front of the home may reduce curb appeal so much that the entire additional home value is completely offset. Homes with unsightly solar panels take longer to sell and may sell for less than similar homes in the same neighborhood.

 

Solar panels can be installed in a more aesthetically pleasing manner. Solar panels that follow the roof line and are continuous rather than isolated are more appealing to buyers. Homeowners who are installing solar panels can be involved in the planning phase to ensure that the design doesn't detract from the home's appeal.

 

So what's a homeowner to do?

When you're planning to convert to solar power, be sure to use a contractor that understands the importance of aesthetics to your home. Stay involved in the design process and you'll find yourself effortlessly adding thousands more to your home's value!

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~ Wayne & Jean 

Union County, NJ - a great place to live and work!

If you're looking to buy or sell a property in Union County, call us at 908-917-4189 or email TeamZuhl@gmail.com.

 

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All opinions, information and data provided is deemed reliable but is subject to errors and omissions. Not intended to solicit other Brokers' clients. We cooperate with them fully. 

John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Good Wednesday morning Wayne and Jean Marie Zuhl -

Thanks for sharing the information on solar panels.  They are a big deal in New Mexico as we have so many days of long and full sunshine.  

Jul 22, 2015 12:11 AM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Wayne and Jean Marie Zuhl. I recently posted a blog on this very topic and how solar can effect the mortgage process. We have had our challenges.

Jul 22, 2015 12:16 AM
Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

This is good info and excellent point about curb appeal. However, I have seen several other real estate agents and mortgage brokers saying that this can/does worsen the value and creates issues in mortgage process which can also lengthen time and/or disqualify some buyers.

I'm not sure what to think.  the more I think about this, I think they'll have a better idea on all of this around 5 yrs from now.  I would think those that are considering solar should be doing it if they plan to say in home 20 or more years and no worries about needing to refi (as that can also cause a problem).

Jul 22, 2015 12:57 AM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I recently had solar panels installed on my home and even though I don't own them, I still enjoy the great savings!

Jul 22, 2015 02:09 AM
Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

This is an intrigueing question.  I am not sure if they really increase values out here.  There are so many people who don't want solar, it can actually be a hinderence to a buyer selecting a home with solar.  I have been asked many times if a seller will recoup the cost of installation when they sell and I always tell them no.  Not yet.

Jul 22, 2015 02:55 AM
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

Larry has been thinking about getting solar panels for a while now. You're right about curb appeal though. We recently had a buyer that we showed her a house with them on the entire roof and she hated the look and moved on to the next one...

Jul 22, 2015 08:38 PM
Xander Neumann

I think that it should affect in a positive way, such as saying an example that the value of the house goes up more with things like solar panels, Solar generators or some inverter devices, in my case, it should affect in a positive way the increase in this type of housing.

Sep 17, 2021 01:07 AM
Wayne Zuhl

That could be, however for many homeowners, aesthetics play a huge role and many buyers don't like the look of a solar system.

Dec 30, 2021 11:44 AM