Solar Power Increases your Real Estate Value
Solar panels save you money on electricity costs in the long run. But does a photovoltaic (PV) system increase the value of your home today? Should you install one even if you might sell your home in the future?
Multiple studies show that solar systems boost the value of both old and new homes. Unlike a kitchen remodel, which may or may not entice buyers, investing in solar will pay off whether you stay in your house or not. With Hawaii’s electric rates consistently being the highest in the nation, home buyers are attracted to green homes that will save them money.
A 2011 study by the Lawrence Berkeley National Laboratory compared the selling prices of 72,000 homes sold in California between 2000 and 2009 to determine whether photovoltaic (PV) panels had any effect.
The results found that homes with solar systems sold for $17,000 more than a comparable house without solar. According to the study, homeowners recover their initial investment of installing solar panels upon sale of the property since the average premium added to the property value is comparable to the average investment cost of purchasing and installing the PV system.
- On average, a solar system increased a home’s resale value by about $5.50 per watt. This premium was slightly higher than the average solar system installation cost, which was $5 per watt after state and federal incentives.
- On existing homes, solar panels increased resale value by up to $6.40 per watt.
- On new homes with pre-installed solar, sale price increased by $2.30 to $2.60 per watt.
The selling price of homes increased by $20.73 for every $1 saved in annual utility bills. As electricity costs and subsequent energy savings grow, the value of a residential solar system will also appreciate over time.
Solar Helps Homes Sell Faster
The U.S. Department of Energy’s Office of Energy Efficiency & Renewable Energy states that a solar home will sell twice as quickly as a home without solar panels, even in a depressed market.
- Lennar Homes compared the sales of homes in similar communities in Rocklin, California in 2007. Homes with solar power installed sold an average of 4.6 homes per month, while homes without solar power sold an average of 1.9 homes over the same period.
- Another report by Clarum Homes shows that all 257 solar homes in one of their developments sold 2 years faster than planned for up to $100,000 more than the listed price.
The Bottom Line
As a solar customer in Hawaii, you have access to the sun, financing options, and tax incentives that cover 65% of system costs. Making your home more energy-efficient by adding a residential solar system is a proven investment that will significantly reduce your energy costs. If, for any reason, you decide to sell your home, the solar system will attract more buyers and you’ll recoup your solar investment from the sale price.
To learn more about installing solar in your home, visit Haleakala Solar, a Hawaii solar company with over 35 years of experience.