Does a Photovoltaic installation affect the value of my house?
The process of selling one’s home can be physically and emotionally tiring, primarily if one seeks an inexperienced real estate or sets unrealistic expectations. Thus, the first step of selling one’s home is to perform a ‘gut-check,’ then comes finding a top-notch real estate agent. Setting up the right sale-expectations, estimating the home’s sale value, and marketing to potential home buyers are the best practices that lead to a profitable sale. Also, there are broad chances of selling a house (Up to) 20% faster if the house has a photovoltaic (PV) installation that includes rooftop solar having solar panels, solar inverters and solar battery system as well.
Increasing energy costs, rising global warming, and constant wildfires are the primary reasons for a shooting demand for ‘green homes.’ California, with enough solar capacity to power over 6.3 million homes, has been at the pinnacle of solar installations. The state is a leader in real estate profits that come with solar installations.
How much value does PV installation add to a property?
Selling into the sun, a report by the U.S. Department of Energy’s Lawrence Berkley National Laboratory (LBNL) suggests that the premiums on PV homes are $1.10/W larger in California than other states. Homes with PV systems sell for about $15,000 higher than those without solar installations.
Homeowners can get a premium of $4,020- $5,911 for each 1kW solar installation, as the home value increases by 3-4%. The report also states that a PV system also adds value to the non-California homes.
A study conducted by Zillow, a real estate information company, tells that a solar installation can add up to 4.1% to the value of a property. The study also makes it clear that solar installations do not cause a decrease in the property value in the metropolitan areas.
The factors that affect the value of a property with solar installation
Region of the Country
The premiums that home sellers get from PV installations may differ from one state to another. Results of a study show that New Jersey, Pennsylvania, and North Carolina offer the highest solar premiums. Nevertheless, Colorado, Massachusetts, New Mexico, New York, and Oregon also include in the list of states that provide premiums on the sale of properties with solar installations.
Nevertheless, Colorado, Massachusetts, New Jersey, New Mexico, New York, and Oregon also include in the list of states that offer premiums on the sale of properties with solar installations.
Solar Installation Prices
Different states offer various incentives, tax credits, and tariffs for PV installations. The overall price of installing a solar system can differ depending on the state. For instance, a homeowner from California can access around 217 solar policies and incentives. Meanwhile, there are around 58 solar policies and incentives for PV installers in New Jersey.
Local Utility Cost
Utility cost is a crucial factor that buyers will consider while looking for a home. Many home buyers will gravitate towards a house that does not depend on the utility grid. A home PV system that generates enough energy to meet the daily energy needs is far more beneficial than paying hefty utility bills.
Age of Solar System
The premiums on a property may differ with a difference in the age of the PV system. A home with a new PV system will scoop in more significant premiums in comparison with one that has a worn-out system. NLBNL’s report, Appraising into the sun, states that:
on average, PV systems (less than 12 years old) garnered premiums in each of the six states (California, Oregon, Florida, Maryland, North Carolina, and Pennsylvania.) with an average of $3.78/W.
Over the years, the size of average American homes has grown, and so has the energy consumption. Significant dependency on fossil fuels and for the generation of electricity is not the best for the environment, as it leaves a carbon footprint. Mindful buyers choose homes with PV installations as it helps cut down their fossil fuel consumption.
Frequency of power outages
New York, Michigan, and Texas are among the states with frequent power outages. Having a home solar system in a location that faces power outages is a dual-benefit for the homeowner. As long as the owner lives in the home, the PV system will serve as a backup during power-cuts. Once the owner decides to sell the house, the PV system streamlines the marketing and ensures a profitable deal.
Total Energy provided by a PV system
It is not necessary to install an extensive PV system to get higher premiums on a property. Having a solar system that meets the daily energy needs of the new homeowner is enough to increase the value of a property.
Will you choose solar?
A general understanding of solar energy and its benefits drives buyers towards homes with PV installations. Installing a PV system today will reap fruitful results in the years to come, as it will lower your household’s dependency on the utility grid.It is a fair chance that you may feel like selling the existing home and moving into a new house in the future. Know that the possibility of a successful home-selling experience expands with a PV installation. Since it is the second quarter of 2020, homeowners still have a chance to access 26% tax credit on a new solar installation.