If you’re considering installing a solar panel system at your home, you probably already know that solar energy can reduce your utility costs and benefit the environment. One question that most homeowners have, though, is whether or not solar panels will increase their home value. It’s an important question, because even though the price of solar power is dropping, it’s still a big investment. The answer is not simple, but varies depending on your situation.
One major factor is whether you own your solar system or lease it. A solar panel system can reduce a home’s electricity bills as well as its carbon footprint. It’s low maintenance, needing only occasional cleaning, so buying a house that already has solar in place is appealing to many potential home buyers. If the system is leased, however, it may be seen as a drawback if buyers aren’t interested in entering into a third-party agreement. Then too, a loan used to purchase a solar system could involve a lien on the house, which could be off-putting to potential buyers. If you’re planning to sell, it’s best to own your solar panels outright.
The type of system you install matters, too. Solar panels can be installed in two different ways. They can either be connected to the utility grid, or they can be installed as part of a solar power system, along with backup batteries and a generator. When solar energy systems are connected to the grid, they power the house with renewable energy when the sun is shining, feeding excess energy back into the grid. When there’s no sunshine, electricity from the grid supplies the house with energy, so there’s no need for batteries or backup generators. Grid-connected systems can also utilize net metering, in which the homeowner receives bill credits for energy produced by solar panels. This can drastically reduce or even eliminate energy bills. In some cases, there’s even an annual payout for unused energy.
The value that solar power adds varies by location. Incentives vary widely from place to place, and while some areas pay homeowners for generating renewable energy, others don’t offer net metering at all. Additionally, because utility costs are different in different areas, solar may or may not provide substantial relief from high energy costs. The amount of sunlight your area receives is an important factor too, because if a solar energy system doesn’t generate much power, it’s not going to significantly increase the home’s value.
Does solar power make sense for your home? Obviously, for all of the reasons stated above, geographic location makes a big difference in terms of the value of solar for a property. Think about how much sunlight your home gets over the course of the year, along with how much you’re spending on utility bills, and look into financial incentives available in your area. Whether or not a solar energy system is going to add value for you while you’re living in the house matters just as much as whether it will improve your resale value when you move.
While all of these factors come into play in determining whether solar power adds value to a home, the overall answer is yes. According to the Office of Energy Efficiency and Renewable Energy, a solar energy system is likely to increase a home’s value by about $15,000 for an average sized system. If you’re looking for a solar energy installer with a stellar reputation and quick turnaround, contact Sunlogix Energy. A leading full-service solar solution at the forefront of creating a sustainable planet, powered by the sun, we’ve been voted the Best Solar Company in the Desert by the Coachella community 2 years running. We offer commercial and residential solar, always striving to provide full customer satisfaction by offering premium products and professional solar installation at an exceptional value. Focused on using renewable energy to create a cleaner earth, we customize solar solutions for our clients, as well as educating them on the long-term and immediate benefits provided by solar power. Call 888-844-3808 for more information or visit our website to request a free estimate today!