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Do Homes With Solar Panels Sell Faster and for More Money?
The average cost of a residential solar system is around $15,000-$25,000 before tax incentives.
At such a steep price tag, many people wonder what the appeal is of solar energy.
Though the upfront cost is high, homes with solar panels sell faster and for more money. That means once the solar system is set up, you can expect the benefits to compound over time.
Continue reading to learn how homes with solar panels resell.
Homes With Solar Panels Are More Expensive
On average, homes with solar panels increase home value at a ratio of 20 to 1. That means for every dollar you put into solar, you can expect a $20 increase in home value.
That is because the cost of solar energy is high, but they reduce the cost of energy for the next homeowner. Because the next homeowner does not need to add solar panels, they pay for the benefits through a higher home value.
Many people will increase home value with solar panels for this reason.
Another recent study found that homes with solar panels sell for an average of 4.1% more.
This is average across many locations. One thing to consider is solar energy is worth more in certain locations than it is in others.
San Francisco, CA boasts the highest average price increase in that study. San Francisco homes increase by an average of $42,000. For areas with more sunshine, home prices will likely increase more than average.
Energy costs in your area are an additional factor to consider. Areas with low energy costs will not see as high of a price increase as areas with high energy costs.
If energy costs a lot in your city and you get a lot of sunshine each year, solar panels will be most effective. That means a higher home valuation.
Homes With Solar Panels Sell Faster
Though the resell value is higher, do homes with solar panels sell faster? Research shows they sell a lot faster.
On average, homes with solar panels sell 20% faster than homes without. This is because modern homes with solar panels save money.
Solar panels also allow homeowners to profit from selling their excess energy back to the grid, reducing energy costs further. The longer you have solar panels, the more cost-effective they are.
There are also many tax incentives for owning solar panels.
Homebuyers know this, and solar panels are desirable because of it. Instead of installing the solar panels themselves, their house already comes equipped with panels.
Because so few homes have solar panels, these homes sell fast and at a premium.
The best solar company in your area can help explain how solar can save you money.
Make the Switch to Solar Today
As you can see, homes with solar panels have a high return on investment for many homeowners. For the environmentally conscious, solar panels can also do a lot more than save you money.
If you want to sell your home faster for more money, consider switching to solar energy.
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Kenneth is a proud native of sydney, born and raised there. However, he pursued his education abroad and studied in Australia. Kenneth has worked as a journalist for almost a decade, making valuable contributions to prominent publications such as Yahoo News and The Verge. Currently, he serves as a journalist for The Hear Up, where he focuses on covering climate and science news. You can reach Kenneth at [email protected].
