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Reason to Go Solar #2:
Increase the value of your home
Market research indicates that homes with solar panels sell at higher prices than other homes in the same area. Studies in residential areas established in the solar market in California have shown that a home’s value can increase by four percent or more simply by having solar panels installed. The Lawrence Berkley National Laboratory, a renowned research institution with ties to the Department of Energy, continues to research the relationship between solar panels and the value of homes as the adoption of solar grows across the United States.
Lawrence Berkley’s 2015 Selling Into the Sun report analyzed how solar-equipped homes were selling in eight different states over a stretch of 11 years. The goal of the study was to determine exactly how much value solar panels add to a seller’s closing price. The study discovered that, on average, homeowners are, “consistently willing to pay PV home premiums” of approximately $4 per watt of installed solar capacity. It’s important to note that this study only analyzed homes in which solar panel systems were owned, not leased. The study concludes that a standard 6-kilowatt solar panel system adds up to $24,000 to a home’s closing price.
There is also a correlation between areas with high electricity prices and homes equipped with solar panel’s resale value. It’s a win-win situation for homeowners in these high-priced areas. Not only are they able to drastically cut their energy bill and ultimately pay off their initial investment, but their home’s value increases at a higher rate than low-cost areas.
The real estate industry is keen on the relationship between property value and solar panels and is working to create more complex models that predict the impact that solar has on a particular market. The market research that is currently available demonstrates this trend clearly and is only expected to increase.
- Lawrence Berkeley National Laboratory: Selling into the sun: Price premium analysis of a multi-state dataset of solar homes
- New York Times: Appraising solar energy's value: Solar panels and home values
- CNET.com: ECON 101: Solar panels increase home values
- Zillow Research: Homes with solar panels sell for 4.1% more