Solar panels will most definitely increase the value of your home .. Installing a solar system at your residence makes your home more sellable, easier to mortgage, and increases your property value far beyond the upfront capital cost of your solar investment!
Let me begin by pointing out that the relentless escalation of electricity costs continue to rapidly transform the housing market worldwide.
Lenders now regularly factor historical property electricity usage into their calculations when computing debt service ratios and lending thresholds for prospective homebuyers.
The housing market requires an antidote which inoculates both homebuyers and homesellers from the barriers associated with yearly electricity rate hikes…….
Enter solar energy… Yeeaaaaaaa!
Solar (Energy) Net Zero home
Solar net-ze•ro is defined as a home which produces at least as much energy on site from a solar installation as it consumes on an annual basis.
A solar net-zero home requires no energy costs. Home owners use their paycheque and their after tax dollars instead to build home equity rather than throwing the money away on monthly electricity costs! And this is how solar panels increase value… At Unconquered Sun, we call this owning your power..
The cost of electricity affects everyone. When the price goes up, most people are left with no option but to simply complain about it. This is no longer the case once you install solar panels on your roof! Your solar net metering agreement with your local utility co. will guarantee that you always paid the current consumer rate for your solar generated electricity. So, as the years go and electricity rates increase, the value of the solar power you export also increases and so does the value of your cost avoidance! (i.e. not having electrical costs associated with your property)
This is the difference between renting your power forever till you die, or owning your own solar electric generator!
For more information on how solar panels increase home value while eliminating your electrical costs – and how the process works see The Ultimate Solar Guide considering solar panels for your home edition.
Major financial benefits of owning or purchasing a solar net zero home
- Increased resale value of home
- Electrical costs reduced or eliminated from home forever
- Home is insulated from future electricity price hikes
- Mortgagee enjoys a continuous increasing return on investment year after year, open ended.
- System mitigates “after-tax dollars” homeowners electrical bills are paid with.
- Home qualifies owner for ‘Clean Energy Production Credits’.
- Electricity exported to the grid from a solar system on a home is nontaxable.
For the reasons listed above Solar has become mainstream within the lexicon of home improvements. In fact solar is now cited regularly in most studies as one of the top home improvements used to increase the property value of your home.
Just how much will solar panels increase my property value?
In a study which analyzed the sale of 22,000 homes, the Lawrence Berkeley lab found homebuyers are consistently willing to pay more for homes with solar PV systems incorporated into their design.. The study took place over a 5 yr period throughout eight American states with 4000 of the 22,000 homes for sale having solar systems incorporated into their build. This is has been the most comprehensive study to date. Lawrence Berkeley found that the average premium that homebuyers were willing to pay was approx $20,000 more per house with solar. The premium varied greater or less depending on the size of the solar installation. The study also noted that there was only a very small and statistically insignificant difference between the price that buyers were willing to pay for newly built homes with solar panels, and older homes retrofitted with solar panels.
Further research indicates the average increase in resale value of a home with solar panels continues to escalate dramatically as more and more people begin to understand the value that a solar panel system adds to a home. Some North American studies (eg. cleantechnica.com) indicate the equation can be as high as $5,911 for each 1 kilowatt (kW) of solar installed. In sunny California for example, a small 3.1-kilowatt (kW) system is adding an average of $18,324 to the value of a medium-sized home. And these property value advantages of a solar installation only increase as the size of the installation scales up. For instance, in California, Installing a mere 5kW of solar panels adds an average of $29,555 to the retail value of a medium-sized home!
The National Renewable Energy Laboratory offers a useful guide/ rule of thumb to determine how much you can expect the value of your home to increase with a solar installation on your property. According to their research, each additional $1 in energy bill savings (from your solar installation) adds $20 to your home’s total value (or list price).
Realtors on top of it!
This eye opening data has launched a fleet of Realtors and real estate appraisers who have educated themselves. These realtors know why solar panels increase the value of your home, and how to factor the value of a solar system into your property’s overall worth. Realtors, and homebuyers alike are now making intelligent distinctions between the value of a solar-powered home versus the value of a traditional utility powered home.
At the same time, these savvy homebuyers are seeking out energy-efficient homes and properties that incorporate solar because they know that that these properties come with lower electricity bills than homes without solar panels.
How can I increase my home’s list price with solar, what is the breakdown?
Of course, as Canadians we are conservative by nature. In this context, see below a great comprehensive breakdown and financial Canadian comparison of a solar powered home vs a traditional utility powered home. This breakdown sheds some light on why purchasing a house with solar is so attractive to potential home buyers.
It’s important to note that these statistics only apply to today’s housing prices and utility rates. As electricity prices increase (and they most certainly will), the advantages of solar energy will increase proportionally as well.
In addition, installing solar panels not only helps you fetch a higher asking price, but it can also help your home sell 20% faster than a property without a solar installation. For homeowners who want to reduce exposure, paperwork, and wait times, this can be a huge advantage – especially in a sluggish housing market.
Some additional benefits of installing a solar panel system @ your home
Aside from the obvious financial benefits, there are many other ways that solar panels can increase value at your home or property;
Solar panels shade and protect your roof;
Solar panels are always installed on the faces of your roof most vulnerable to UV degradation. Installing solar panels on a shingle roof will protect the underlying shingles from sun damage and watercourse, extending their lifespan indefinitely. Solar panels also shade your roof, cooling your home in the summer months, saving you even more consumption from AC!
Solar panels contribute exponential environmental benefits;
As you may already be aware not one single electron produced by solar panels is either carbon emitting or radioactive. Also a 10 kW solar panel installation is roughly equivalent in terms of carbon mitigation/ sequestration to planting 11, 000 trees! And how many of us have the time to plant 11,000 trees??
Summing it all up
Installing solar panels on your home is one of the safest and most intelligent investments you can make.
You, and whomever may purchase your house in the future will enjoy electricity bill savings over a lifetime from your solar PV system. As utility rates increase, those electricity bill savings grow increasingly large with time. Even if you never sell your home, your installation fully pays for itself many times over.
If you do decide to sell, you will command a higher premium, which again, more than covers the upfront cost of the solar installation.
In other words – with the right company and the right-sized solar installation at your home, solar panels will increase value while paying a you a healthy 200%+ return – far in excess of any other financial vehicle you can imagine. And unlike most investments you don’t have to wait for a term or period of time to expire to cash in, you actually begin enjoying the financial returns from solar on day one!
Check out quick vid below;
Interested in a solar installation for your home?
**Reminder to self** Insert a shameless plug for the company here! Sorry if this next part sounds a little promotional but it is accurate.. At Unconquered Sun Solar Technologies Inc. our qualified team of professionals are standing by to advise you with a FREE no obligation solar analysis design and quote for your home or business. A USST professional will recommend a solar panel system which is tailored to your home or business, advise you on the size, any costs, required documentation and approvals.
Also I believe the quality of design, system components and installation here at Unconquered Sun to be absolutely beyond compare. And our 1.9% financing available to all USST clientele is without parallel in the solar industry!
So, If you are ready to Go Solar, then let’s get started!
- Request a FREE solar analysis, design and quote
- Pre approve yourself for USST’s exclusive No Money Down, 1.9% un secured financing option!
Well, this concludes the Will installing solar panels increase the value of my home? edition of the Ultimate Solar Guide from Unconquered Sun!
Hopefully this article will serve as a valuable reference on your solar journey. I truly hope you have found the content helpful. Please feel free to respond with any comments or suggestions you may have!
More to come!!