24 Mar Do Solar Panels Increase My Home’s Resale Value?
According to predictions by Wood Mackenzie, there will be 3 million solar energy systems in the U.S. by 2022. As solar PV installations become more widespread throughout Maine, more homes with solar panels will enter the real estate market. Increasingly, it will be important to know how to value solar energy upgrades.
Many prospective Sundog Solar customers want to understand the financial aspects of their solar panel systems. Sundog Solar proposals have information on utility bill savings for systems in Central Maine Power and Versant Power territories. Future power bill savings are relatively easy to estimate, but exactly how a solar energy installation impacts a home value is a bit more complicated and nuanced.
How much does a solar system boost my property value?
There many studies that state that solar-powered houses sell for more than comparable homes without solar. Adding solar panels to your roof is a home improvement that boosts the home’s resale value. Although the exact findings of solar resale studies vary, many conclude that going solar will significantly increase your property value.
A 2019 Zillow study compared comparable homes that sold in 2018 with and without solar systems. The study estimates that the median-priced home with a solar system was $9,274 more, which is good news for solar homeowners. It found that solar homeowners received 4.1% more than comparable properties without solar. Therefore, a $200,000 home would sell for $8,200 more.
A 2015 study by the Lawrence Berkeley National Laboratory took the size of the solar system into account. It states that solar homes sell for about $4 per watt more than their non-solar counterparts. Therefore, a house with a 3.6-kilowatt solar panel system would sell for an estimated $15,000 premium. This Berkeley Lab study, however, is getting a bit outdated. Since it was written, solar energy system costs have dropped. Therefore, the Zillow study could be more applicable in the current housing market.
Why do solar homes sell for more money?
Solar homes are cheaper to operate than non-solar homes. Installing a solar system will significantly reduce your Central Maine Power or Versant Power bills. Many Sundog Solar customers save more than $1,500 on their electricity bills annually!
In Maine, solar system owners can take advantage of net energy metering or net energy billing. Central Maine Power or Versant Power customers receive solar credits on their bills for surplus power they feed to the grid. Unless the solar system has battery storage, when the solar energy system generates more power than the home is consuming, the excess goes to the power grid. When the house needs more electricity than the solar panels are producing, the household pulls power from the grid and uses up the solar credits. Many Sundog Solar customers have power bills below $14 a month!
Another reason solar homes are popular is the growing concern about the environment and the consumption of fossil fuels. Solar homes are especially appealing to households that wish to reduce their carbon footprint.
Solar systems with battery backup are especially appealing because these homes are more resilient during grid outages. Sometimes, having electricity during an outage can prevent pipes from freezing or basements from flooding. For people that work from home, solar batteries can prevent a productivity loss from power outages. Also, solar systems with batteries provide peace of mind during outages and allow our customers to enjoy the comforts of home.
What should I do when preparing to sell my solar home?
If your solar panel system needs any repairs, we recommend completing these before listing the home for sale. If a home shopper notices issues with the system, it could make the house less appealing.
Providing information on the solar system to the realtor or appraiser could be helpful. The Sundog Solar proposal also has information about the solar system price and warranty. Sundog Solar provides a 5-year warranty with our solar energy installations and the solar panels and inverters have longer warranties. In fact, solar systems with Tesla solar panels have a 25-year warranty! If your system is still under warranty, make this information available. Also, the solar monitoring system and to a lesser extent, the utility bills, demonstrate how much power the solar panels are producing.
If you have any questions regarding selling or buying a home with a solar energy system, contact Sundog Solar. We’re happy to help!
Image credit: www.houseandhammer.com (upper image), Dan Moyle (lower image)