Solar Can Increase The Value of Your Home
A solar array not only powers your home with clean energy and reduces your energy bill but it can also increase the value of your home. A study done by the Lawrence Berkley National Laboratory, analyzed the sale of 4,000 homes in a number of states with photovoltaic solar systems. On average, they found that these homes sold for $12,000 – $15,000 more than those without a solar array.
Therefore, solar not only lessens or eliminates your energy bill but it adds value to your home. Solar power saves you money on a monthly basis and brings about a bigger return if you decide to sell your home as well. This study can also help put you at ease if you aren’t sure if you are going to be in your home for the life of your solar system. If you decide to move and your solar system isn’t paid off yet, the increase in your property value when selling will cover any remaining balance you have on the system. To read the entire study you can check it out here.
When you are buying a home with a solar array there are a few things that you do want to consider and be prepared for. As a seller you want to have documentation from your installer that the installation was done properly, this is information that any reputable solar installer will provide. You also want to have proof that it is saving you money on your energy bills. That is easy enough to show by providing your energy bills before and after you went solar. As a buyer you want to make sure that you have these documents. You can also call the solar installer to have any questions you have about the system answered.
As a homeowner, when you decide to sell your home and have a solar array, make sure that when your home is assessed that the value of the solar system is added into it. On average, the system can increase the value of your property by 3-4%. Another thing you want to keep in mind is to work with a real estate agency that understands the value of a solar system. This will help to keep you all on the same page regarding the value of your home.
According to the SEIA, there are 3 different ways to value your solar system with your home. They are the Income Approach, Cost Approach, and Comparable Sales Approach. The SEIA recommends using the Income Approach method when valuing your home with your solar system. This method values your system based on the projected income it will generate over the life of the solar system. Using this method to value a system, “most closely aligns the value with the homeowner’s perspective (both seller and buyers),” based on SEIA findings.