A look at recent studies detailing how solar increases property values and sales prices
You already know the main benefits of solar, like that it’s good for the planet and can save you money in the long run, but did you know that solar can also increase the property value of your home?
Of course, each solar installation is different and can affect the property value differently, but multiple studies showed that homes with solar are valued and sold at prices above similar homes in the area. These studies show that solar can increase the property value by an average of 3-4%.
The most recent study, Selling into the Sun, was conducted by Lawrence Berkeley National Laboratory. The research analyzed the sales of about 23,000 solar-homes in eight different states over the course of 11 years. The main goal of the study was to determine how much solar-installations add to a home’s sale price. The study found that on average, “homebuyers are consistently willing to pay PV home premiums” of about $4 per watt. For a standard 6-KW PV solar system, that means an extra $24,000 is added to the home’s resale value.
A 2019 study, conducted by Zillow, calculated the solar premium by comparing homes with and without solar-energy systems that were listed for sale and sold from March 1, 2018 to February 28, 2019. The study found similar results, stating that solar-powered homes sold for an average of 4.1% more than comparable homes without solar. This study focused on California, Florida, and New York.
One reason that houses with solar installations can sell for more money than those without solar, is because they’ll provide substantial energy cost savings in the future. For many homeowners, especially those who consume a lot of power, these future savings are worth spending more money up front. It’s also possible that homes with solar-energy systems are more likely to have other features that make it more valuable, such as LED-lighting or powerwalls for electric vehicle charging.
Whether you’re a new homebuyer in the market for energy efficient savings, or a long-time homeowner wanting to upgrade your current property, solar systems offer an abundance of benefits, from saving your wallet to saving the planet. And now, adding more value to your property.
Contact Cedar Creek Energy today to learn more about how you could benefit from your own solar system and increase your property value.