Are you thinking of going solar, but you want to know if it will affect your home’s value? Are you thinking of buying a home with solar panels or selling your home which has solar already installed?
In this article, we’ll try to help you better understand solar’s effect on housing values, no matter which of the above categories you fall into.
Do Solar Panels Increase Home Value?
So, do solar panels increase home value?
The answer is a bit more complicated than a simple yes or no.
Yes, solar panels can increase your home’s value, but they don’t always increase it. Some of these factors are in your control while others are not. The most important thing to remember is that you need to own your solar panels. If you do not own your solar panels, it is unlikely that they will add any value to your home.
Solar panels that were purchased outright are usually counted as an addition to the home by home appraisers. The same will apply if you purchased the solar energy system with a loan that has since been paid in full. If you are still making payments on a solar loan, ownership and added home value will depend on the contract of the loan. If you do not own the panels outright, they’re not yet permanently part of the home.
To learn more about how system ownership affects real estate transactions, check out our article “Buying and Selling Homes With Solar Panels.” This article will give you a good look into how your solar panel system should factor into the home buying or selling equation. Whether you’re making payments on a loan or you signed up for a Power Purchase agreement, this article will help you figure out what you should do when transferring ownership of solar panels.
Other Factors That Can Affect Solar Panel Home Values
Although panel ownership is the most important variable determining whether or not your solar energy system will increase your home’s value, it’s not the only one. Here are a couple of other factors worth considering.
Solar panel technology is changing at a rapid rate. Solar panels from 10 years ago are not like the solar panels of today. If you own a newer solar energy system, your home will likely appraise for more than it would with an older system. Additionally, as a solar energy system ages, it slowly becomes less efficient. This means potential buyers might benefit less from the system as it possibly produces less electricity.
You might think that the bigger the solar energy system the more value it would add to your home. That’s true to some extent, but not nearly as much as you would think. Studies show that people who value solar energy systems value them regardless of their size. They mostly appreciate the fact that their next home goes the extra mile to go green. As solar energy systems grow in size, the value of your house will probably increase as well. But only incrementally.
It should come as no surprise that different parts of the country share different values. This holds true for solar energy as well. For some people, green solar energy is viewed more favorably than it is by others. The location of your home and the shared values of your neighbors might influence how much potential buyers will care that you have solar installed.
Other Benefits To Solar
An increase in your home’s value isn’t the only benefit you’ll get out of your solar energy system.
Installing solar panels could help you save money on your electric bill by paying less for power than you might have to your utility company. Our solar representatives will help custom design an ideal solar energy system for your house. This will help you maximize your monthly savings on your electric bill and your independence from your local utility company.
Second, there are green benefits you can enjoy as well thanks to your solar energy system. People love knowing that they’re part of a growing movement for more sustainable living. If you get a new solar energy system installed to your rooftop, you can enjoy the fact that you’re doing your part to keep our air clean, our water unpolluted, and out earth cool. The more people that join in and push the solar energy movement forward the more we all get to enjoy its compounding benefits.
No Matter What Your Reason is For Going Solar, You’ll Get Value From It
We know you’ll get a lot of value out of your panels no matter what your ownership status is. That’s true whether you own your solar energy system outright or you’re making payments through a loan or lease.
If you’ve been thinking of updating your home by going solar, you should contact a Vivint Solar representative. Our reps will help you analyze all of the different variables which could affect your future solar energy system’s effectiveness. They’ll give you a better idea of how you would benefit from it.
Let Vivint Solar help you go solar today!