Do solar panels increase home value? The answer is yes. But by how much depends on the decisions on the types of solar panels you get.
There is a growing uptick in solar panel installations across the country. According to the Solar Energy Industries Association, 4.7 million solar systems were operating as of 2023.
More people are choosing to switch to solar panels as they realize solar’s immense financial and environmental benefits.
Keep reading to understand more about what solar panels can do for your home’s value, including:
- The connection between solar panels and home value
- Factors that impact the value increase
- Cost vs. long-term value
- Selling a home with solar panels
- The long-term value of solar panels for homeowners
Understanding the true financial benefits of solar panels can help you determine whether this is an investment you should pursue.
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The Connection Between Solar Panels and Home Value
It’s clear that solar panels can increase the perceived value of your home to potential buyers. Energy-efficient homes are becoming more desirable to buyers due to reduced utility costs.
So, how much do solar panels increase home value? A 2019 study from Zillow found that, on average, homes across the nation that had solar panels sold for 4.1% higher than comparable homes without solar. Of course, this is just an average. The exact increase in home value can depend on many factors, such as the local market, energy savings, and more.
An additional benefit to homeowners is that homes with solar panels sell faster than those without by 20%.
Factors That Impact the Value Increase
There are many factors that can impact how much (or little) solar panels increase the value of your home. The factors that matter are:
- Geographic location. Solar panels are the best investment in predominantly sunny areas, such as Arizona, California, and Texas.
- The size and efficiency of the solar system. Solar panels come in many sizes. The larger and more efficient your solar system is, the more appealing it may be to buyers because it has the greatest impact on energy bills.
- Local energy costs. An area with relatively low energy costs may not be as eager about solar panels.
Cost vs. Long-Term Value
Homeowners need to weigh initial installation costs against potential increases in home value and ongoing energy savings. Here are some key facts to know in the cost vs value for solar panels debate:
- There are federal and, in some areas, state tax incentives and rebates that can significantly reduce the initial investment of your solar panels and installation.
- On average, it takes homeowners 10 years to see a complete return on their investment.
- Depending on where you live, you could save hundreds in utility costs annually.
- As mentioned above, your home can sell for more (and faster) with solar panels.
Selling a Home With Solar Panels
Selling a home equipped with solar panels can appeal to prospective homebuyers and make your home stand out from other listings on the market.
Solar panels can be installed as an owned or leased system. Generally speaking, owned systems are more appealing to buyers because they know they get to keep the solar panels versus just taking over a lease.
In some cases, buyers might have concerns about solar panels, such as cleaning, maintenance, and repair costs. As a seller, you can address these concerns by providing a history of bills you’ve had to date and proper documentation for the system.
The Long-Term Value of Solar Panels for Homeowners
Overall, solar panels can increase home value. However, various factors influence just how much the value is, such as the local market, the size and efficiency of your system, and local energy rates. It’s also important to consider the initial investment versus the overall financial benefits your system will give you (including property value increase, decreased energy bills, and tax rebates).
Consider researching local market trends and consulting with real estate professionals before deciding on solar panels.
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If you’re interested in getting solar electric panels, Celestial Solar can help. We’re the sole factory-authorized distributor in Southern California, Arizona, Nevada, and Florida for the ISwim, Solaria, and Q-cells solar panels. Celestial Solar has provided customers with the best quality products and services since 2001.
