With the average home resell profit of $121,000 in 2023, it is no wonder that property is considered a major asset. That is why your goal as a homeowner should always be to increase the price of your house. Fortunately, solar panels add value to your home by making it more appealing and functional with self-produced energy.
Learn about how solar power affects your home’s price and what factors to consider when evaluating your ROI.
How Does Solar Power Increase Home Value?
Not everything you do to your home can make it attractive to the real estate market. For instance, not everyone wants a garage turned into a guest room.
The best way to know if your home improvement project will pay off is to know what buyers are looking for.
Energy-Efficiency
We are in the age of energy. So, when a house is listed with features that can save energy, it automatically becomes more appealing. In fact, a Zillow study from 2022 found that homes sell faster and for more money with energy-efficient features.
Solar panels increase home value even more than other technologies because they don’t just save energy—they create it.
Functionality
What is more functional than consistent energy? With panels and battery storage options, you can power your entire home and even have extra to sell back to the grid or charge your electric vehicle with solar.
Producing, storing, and selling your own energy gives you the freedom to function without reliance on the grid. This means that you will have power during a blackout and won’t have to succumb to rising electricity prices.
Convenience
Solar panels are low maintenance and don’t require the next homeowner to be tech-savvy. Plus, if you go with a solar installer that offers a warranty, then it will carry over for the next family who moves in, which is another added benefit that can increase your home’s value.
Convenience also lies in the way your energy is controlled. Energy can easily be dispersed throughout the home, adjusted, and even expanded to accommodate the next homeowner.
Factors That Affect Solar Appeal
The appeal of solar panels on your home may depend on a few factors. This can also affect how much more your house sells for and if it gets offers faster.
Location and Climate
Where you live will play a role in how desirable your solar panels are and how much value they add to your home.
For example, if you live in an area with more sunny days, then your solar panels will generate more energy. This makes them more of an asset to someone looking for a home.
In addition, if you are the only house with solar panels in your neighborhood, then it will be considered unique and therefore sell for more money.
Solar Unit Size, Condition, and Ownership
Larger systems that produce more energy can add more value to a home. Additionally, well-maintained and newer systems with modern technology are more attractive to buyers.
Buyers also consider whether the solar system is owned outright or leased. Homes with owned solar panel systems typically see a greater increase in value than those with leased systems, as buyers may be wary of taking over lease agreements and might not fully benefit from the financial benefits and solar incentives of the panels.
Home Size and Energy Requirements
A house that uses a significant amount of energy due to its size might be more attractive because it can lower the cost of living.
Someone who might not consider a home of your size may think twice when they find out that the energy to charge it is essentially free.
Market Fluctuations and Solar Incentives
Of course, the price of a house with solar is always dependent upon the real estate market. If the buyers’ market is low then there is a drop in the value of homes. Also, the financial status of the economy can make buyers more frugal with their money.
When local, state, and government solar incentives are available, renewable energy becomes more popular. Incentives coincide with whether solar panels increase home values because they affect the overall upfront costs and ROI of the solar panels.
Ensuring Solar Panels Add Value to Your Home
The best way to make sure solar panels add value to your home is to get them installed properly.
Having the perfect number of panels installed at the correct orientation will enhance their appeal. A well-maintained unit will also keep your panels like new until you plan to sell your home.
Luckily, by getting your panels installed by Rising Sun Solar Solutions, you are guaranteed efficiency and longevity.
Start elevating your home and make it more profitable by contacting us today for a free solar panel installation estimate.
